Materials Management - Step by Step Configuration

Material Management Step by Step Configuration
MATERIALS MANAGEMENT
CONFIGURATION DOCUMENT
This document will help fresh consultants and help them to realize the MM module
configuration steps and simplify it.
Table of Contents
General Setting...................................................................................................................... 6
Set Countries........................................................................................................................... 6
Currencies............................................................................................................................... 7
Units of Measurement.............................................................................................................8
Organisation Structure............................................................................................................. 9
Definition of MM Organizational Elements..............................................................................9
Plants...................................................................................................................................... 9
Purchasing Organisation.......................................................................................................12
Storage Locations.................................................................................................................. 13
Assigning Plants To Company Code.....................................................................................14
Assign Purchasing Organization To Company Code.............................................................15
Assign Purchasing Organization to Plant...............................................................................16
Assign Purchasing Organization to Reference Pur. Org........................................................16
Master Data.......................................................................................................................... 17
Material Master...................................................................................................................... 17
Make Global Setting.............................................................................................................. 17
Maintained Company Code For Material Management..........................................................17
Define Attributes of Material Types........................................................................................18
Assign Material Types to Special Created Transaction........................................................20
Number Ranges to Material Type..........................................................................................21
Define Material Groups.......................................................................................................... 23
Financial Accounting Global Setting.....................................................................................25

Define Tax Jurisdiction Code.................................................................................................25
Specify Structure for Tax Jurisdiction Code...........................................................................25
Vendor Master...................................................................................................................... 26
Define A/C Group.................................................................................................................. 26
Partner Determination........................................................................................................... 29
Define Partner Schema......................................................................................................... 30
Assign Partner Schemas to Account Groups.........................................................................31
Define Partner Schemas........................................................................................................32
Assign Partner Schemas to Document Types.......................................................................33
Define Purchasing Master....................................................................................................34
Define Terms of Payments....................................................................................................34
Check Inco Terms................................................................................................................. 36
Create Purchasing Groups....................................................................................................37
Batch Management.............................................................................................................. 39
Batch Number Assignment....................................................................................................41
Maintain Number Range for External Batch Number Assignment.........................................43
Material Management........................................................................................................... 44
Set Material Block for Goods Movements..............................................................................44
Setup Material Block for Invoice Verification..........................................................................45
Activate Consignment Price Via Info Records.......................................................................45
Purchasing........................................................................................................................... 46
Define Default Values for Buyer............................................................................................46
RFQ/Quotation..................................................................................................................... 49
Define Document Type.......................................................................................................... 50
Release Procedure............................................................................................................... 52
Edit Characteristic................................................................................................................. 52
Edit Classes.......................................................................................................................... 62
Define Release Procedure for RFQ.......................................................................................65
Purchase Requisition........................................................................................................... 79
Define Number Ranges......................................................................................................... 79
Link Purchase Requisition with Document Type....................................................................81
Define Screen Layout at Document Level.............................................................................86
Purchase Order.................................................................................................................... 88
Release Procedure for Purchase Order.................................................................................91
Setup Stock Transport Order................................................................................................92
Define Shipping Data for Plants.............................................................................................92
Assign Document Type, One Step Procedure, Under Delivery Tolerance.............................95

Contract................................................................................................................................ 98
Linkage Requisition Type to Contract....................................................................................99
Release Procedure for Contract..........................................................................................100
Scheduling Agreement.......................................................................................................101
Define Number Ranges.......................................................................................................101
Define Document Type........................................................................................................101
Linkage Requisition Type to Contract..................................................................................101
Condition............................................................................................................................ 103
Define Condition Type......................................................................................................... 103
Define Calculation Schema.................................................................................................109
Pricing Procedure for Stock Transfer Purchase Order.........................................................111
Pricing Procedure for Domestic Purchase Order.................................................................112
Pricing Procedure for Import Purchase Order......................................................................113
Pricing Procedure for Market Price......................................................................................114
Define Schema Group......................................................................................................... 115
Define Schema Determination.............................................................................................116
General Topic in Purchasing..............................................................................................119
Import Screens in Purchasing Document.............................................................................119
Define Default Values for Document Type...........................................................................120
Messages in Purchasing Document....................................................................................121
Assign Form and Output Program to Purchase Order.........................................................121
Define Message Types for Purchase Order.........................................................................122
Define Message Schema for Purchase Order.....................................................................123
Vendor Evaluation............................................................................................................... 126
External Services Management..........................................................................................140
Service Master..................................................................................................................... 140
Define Number Ranges.......................................................................................................142
Define Release Procedure for Service Entry Sheet.............................................................143
Inventory Management and Physical Inventory..................................................................148
Plant Parameters................................................................................................................. 149
Number Assignment............................................................................................................ 150
Goods Issue Document Type..............................................................................................152
Goods Receipt Document Type...........................................................................................153
Physical Inventory Document Type....................................................................................154
Physical Inventory Document Type.....................................................................................155
Goods Issue / Transfer Posting..........................................................................................156
Create Storage Location Automatically................................................................................157
Allow Negative Stocks......................................................................................................... 159

Goods Receipt.................................................................................................................... 160
Set Tolerance Limit.............................................................................................................. 161
Create Purchase Order Automatically.................................................................................163
Maintain Copy Rules for Reference Document....................................................................164
Set “Delivery Completed” Indicator......................................................................................164
For GR-Based IV, Reversal of GR Despite Invoice..............................................................165
Price Differences for Sub Contract at Goods Receipt..........................................................166
Automatic Movements........................................................................................................167
Generate Physical Inventory Documents for Goods Movements.........................................168
Reservation........................................................................................................................ 169
Define Default Value............................................................................................................ 169
Physical Inventory.............................................................................................................. 171
Default Values for Physical Inventory..................................................................................171
Allow Freezing of Book Inventory Balance in Storage Location...........................................173
Cycle Counting.................................................................................................................... 176
Movement Type.................................................................................................................. 178
Copy Change Movement Type............................................................................................178
Valuation and Account Assignment....................................................................................179
Define Price Control for Material Type.................................................................................180
Split Valuation.................................................................................................................... 181
Activate Split Valuation........................................................................................................181
Configure Split Valuation.....................................................................................................182
Global Type......................................................................................................................... 182
Global Category................................................................................................................... 183
Local Defination................................................................................................................... 184
Account Determination.......................................................................................................185
Define Valuation Control......................................................................................................186
Group Together Valuation Area...........................................................................................186
Define Valuation Class........................................................................................................ 188
Valuation Class.................................................................................................................... 189
Material Type Account Category Reference........................................................................190
Configure Automatic Posting...............................................................................................192
Logistics Invoice Verification..............................................................................................208
Incoming Invoice.................................................................................................................. 209
Maintain Number Assignments for Accounting Document...................................................209
Tax Treatment in Invoice Reduction....................................................................................209
Maintain Default Value for Tax Codes.................................................................................210
Configure How Exchange Rate Differences Are Treated.....................................................210

Configure How Unplanned Delivery Cost Are Posted..........................................................212
Configure Vendor Specific Tolerances................................................................................213
Activate Direct Posting to G/L Account & Material Accounts................................................215
Invoice Block....................................................................................................................... 215
Activate Item Amount Check...............................................................................................217
GENERAL SETTING
SET COUNTRIES
IMG Path: General Settings  Set Countries  Set Country-Specific Checks
Remove Postal Code Req. Entry, P.O. box Code Req. Entry Checking from Following
Countries
AE, AU, CA, CH, CN, DE, ES, FI, FR, GB, HK, IE, IT, JP, MY, NL, PH, RO, RU, SE, SG, US, ZA
CURRENCIES
IMG Path: General Settings  Currencies  Define Translation ratio for Currency
Translation
Remove "EURX" from field Alt Ref. Against ex rate = 'M' from = 'INR' to = 'EUR' if any
UNITS OF MEASUREMENT
IMG Path: General Settings  Check Units of Measurement
Following new Unit of Measurement are defined.
BAG Bag
SET Set
Truck
TRP Load
ST Items
ROL Roll
RM Ream
NO Nos
ORGANISATION STRUCTURE
DEFINITION OF MM ORGANIZATIONAL ELEMENTS
PLANTS
The plant is an operating area or branch within a company.
The plant is embedded in the organizational structure as follows:
 The plant is assigned to a single company code. A company code can have several
plants.
 Several storage locations in which material stocks are managed can belong to a
plant.
 A single business area is assigned to a plant and to a division.
 A plant can be assigned to several combinations of sales organization and

distribution channel.
 A plant can have several shipping points. A shipping point can be assigned to several
plants.
 A plant can be defined as a maintenance planning plant.
A plant has the following attributes:
 A plant has an address.
 A plant has a language.
 A plant belongs to a country.
 A plant has its own material master data. You can maintain data at plant level for the
following views on a material master record in particular: MRP, Purchasing, Storage,
Work scheduling, Production resources/tools, Forecasting, Quality management,
Sales, Costing.
The plant plays an important role in the following areas:
 material valuation
If the valuation level is the plant, the material stocks are valuated at plant level. If
the valuation level is the plant, you can define the material prices for each plant.
Each plant can have its own account determination.
 inventory management
The material stocks are managed within a plant.
 MRP
Material requirements are planned for each plant. Each plant has its own MRP data.
Analyses for materials planning can be made across plants.
 production
 costing
In costing, valuation prices are defined only within a plant.
IMG Path: Enterprise Structure  Definition  Logistics –General  Define, Copy,

and Delete Plants
PURCHASING ORGANISATION
IMG Path: Enterprise Structure  Definition  Materials Management  Maintain

Purchasing Organization
A Purchase Organisation is an organisational unit within logistics in SAP R/3, which

subdivides an enterprise to facilitate efficient and effective Purchasing. A Purchasing
Organisation procures materials and services, negotiates conditions of purchase with
vendors, and bears responsibility for such transactions.
STORAGE LOCATIONS
IMG Path: Enterprise Structure  Definition  Materials Management  Maintain

Storage Location
A storage location is the place where stock is physically kept within a plant.
ASSIGNING PLANTS TO COMPANY CODE
IMG Path: Enterprise Structure  Assignment  Logistics General  Assign Plants to

Company Code
ASSIGN PURCHASING ORGANIZATION TO COMPANY

CODE
IMG Path: Enterprise Structure 

Assignment  Materials
Management  Assign
Purchasing Organization to
Company Code
ASSIGN PURCHASING ORGANIZATION TO PLANT
IMG Path: Enterprise Structure  Assignment  Materials Management  Assign

Standard Purchasing Organization to Plants
ASSIGN PURCHASING ORGANIZATION TO

REFERENCE PUR. ORG
IMG Path: Enterprise Structure 

Assignment  Materials
Management  Assign
Purchasing Organization to
Reference Purchase
Organization
PUR.ORG. REF. PUR.ORG.

2000 1000
2100 1000
2200 1000
3000 1000
3100 1000
3200 1000
MASTER DATA
MATERIAL MASTER
Make Global Setting
IMG Path: Logistics - General 

Material Master  Basic
Settings  Make Global
Settings
Select Check Box Manufacturing Part No.
MAINTAINED COMPANY CODE FOR MATERIAL

MANAGEMENT

Settings  Maintain
Company Codes for
Materials Management
DEFINE ATTRIBUTES OF MATERIAL TYPES

Settings  Material Types
 Define Attributes of
Material Types
MTyp Material type description Type

ZFGS ABC-Finished products FERT
ZNVS ABC-Nonvaluated Stockable ROH
ZPCK ABC-Packing Material VERP
ZPRW ABC-Process Waste ROH
ZROH ABC-Raw Materials HALB
ZSCR ABC-Scrap ROH
ZSER ABC-Serviceable Items ROH
ZSFG ABC-Semi-Finished goods HALB
ZSPR ABC-Stores and Spares ROH
ASSIGN MATERIAL TYPES TO SPECIAL CREATED TRANSACTION
IMG Path: Logistics - General  Material Master  Basic Settings  Material Types 
Assign Material types to Special Created Transaction
GRP MATERIAL TYPE DESC.

B ZSFG ABC-Semi-Finished goods
F ZFGS ABC-Finished products
G LEIH Returnable packaging
H HAWA Trading goods
I HIBE Operating supplies
K KMAT Configurable materials
L LEER Empties
N NLAG Non-stock materials
P IBAU Maintenance assemblies
R ZROH ABC-Raw Materials
S DIEN Services
ABC-Nonvaluated
U ZNVS Stockable
V ZPCK ABC-Packing Material
W WETT Competitor products
NUMBER RANGES TO MATERIAL TYPE
IMG Path: Logistics - General  Material Master  Basic Settings  Material Types 
Define Number Ranges for Each Material Types
From number To number Number status Ext
Group: ABC-SEMI FINISHED GOODS

TYPE: ZSFG ABC-Semi-Finished goods
000000000000110000 000000000000119999 X
Group: ABC-STORES AND SPARES

ZPCK ABC-Packing Material
ZSPR ABC-Stores and Spares
000000001000000000 000000009999999999 X
Group: ABC-SCRAP
ZSCR ABC-Scrap
000000000100000000 000000000199999999 X
Group: ABC-PROCESS WASTE

ZPRW ABC-Process Waste
000000000000130000 000000000000139999 X
Group: ABC-NON VALUATED ITEMS

ZNVS ABC-Nonvaluated Stockable
000000000000900000 000000000000909999 X
Group: ABC-RAW MATERIAL

ZROH ABC-Raw Materials
000000000001000000 000000000001099999
Group: ABC-FINISHED GOODS

ZFGS ABC-Finished products
000000000000120000 000000000000129999 X
Group: ABC-SERVICABLE ITEMS

ZSER ABC-Serviceable Items
000000010000000000 000000019999999999 X
DEFINE MATERIAL GROUPS
IMG Path: Logistics - General  Material Master  Settings for Key Fields Define
Material Groups
MATL GROUP MATL GRP DESCRIPTION
100 Explosives
110 Drill Bits/Rods/Acc.
120 Grinding Media
130 Chemicals
140 Oil & Lubricants
150 Consumable Stores
160 Consumable Own Mfd
170 Packing Materials
180 Equip. Spares
190 Steel - Construction
200 Cement-Construction
210 Cement not for Const
220 Construction-Other
230 Coke
240 Electrical Goods
250 Miscellaneous
510 ORE - RM
511 CONCENTRATE-RM
550 WASTE-PW
801 ZINC - FG
802 LEAD - FG
803 SILVER - FG
804 CADMIUM - FG
805 COPPER CATHODE - FG
806 SULPURIC ACID - FG
FINANCIAL ACCOUNTING GLOBAL SETTING
DEFINE TAX JURISDICTION CODE
IMG Path: Financial Accounting  Financial Accounting Global Settings  Tax on Sales
/ Purchases  Basic Settings  Define Tax Jurisdictions
Delete all Entry with Tax Procedure “TAXINJ”
SPECIFY STRUCTURE FOR TAX JURISDICTION CODE
IMG Path: Financial Accounting  Financial Accounting Global Settings  Tax on Sales
/ Purchases  Basic Settings  Specify Structure for Tax Jurisdictions
Delete entry with procedure TAXINJ and TAXINN

VENDOR MASTER
DEFINE A/C GROUP
IMG Path: Financial Accounting  Accounts Receivable & Accounts Payable  Vendor
Accounts  Master Data  Preparations for Creating Vendor Master Data
 Define Account Groups with Screen Layout (Vendors)
Following New Account Groups are defined for ABC
GROUP NAME
ABC-Service Vendor
ZCON Contractor
ZE01 ABC-Employees
ZH01 ABC-Vendors ( Expenses)
ABC-Overseas Vendor
ZIMP (Supplier)
ABC-Domestic Vendor
ZIND (Supplier)
ZPLT ABC-Plants
ZTRP ABC-Transporters
CREATE NUMBER RANGE FOR VENDOR GROUP
Create Number Ranges for Vendor Group
NO FROM TO STATUS EXT.

Z1 1000000 1999999
Z2 5000000 5999999 0
Z3 9000000 9999999 0
Z4 P1000 P9999 0 X
Z5 20000 29999 0
Z6 8000001 8999999 0
Z7 10800001 10899999 0
ASSIGN NUMBER RANGE TO VENDOR ACCOUNT GROUP
Assign Number Ranges to Vendor Account Group
GROUP DESC. NO RANGE

ZCON ABC-Service Vendor Contractor Z3
ZE01 ABC-Employees Z1
ZH01 ABC-Vendors ( Expenses) Z5
ZIMP ABC-Overseas Vendor (Supplier) Z2
ZIND ABC-omestic Vendor (Supplier) Z1
ZPLT ABC- Plants Z4
ZTRP ABC-Transporters Z6
PARTNER DETERMINATION
IMG Path: Material Management  Purchasing  Partner Determination  Partner

Roles  Define Permissible Partner Role Per Account Groups
FUNCT NAME GROUP DESCRIPTION

AD Additionals ZCON ABC-Service Vendor Contractor
AZ A.payment recipient ZCON ABC-Service Vendor Contractor
OA Ordering address ZCON ABC-Service Vendor Contractor
VN Vendor 0001 ABC-Service Vendor Contractor
PI Invoicing Party ZCON ABC-Service Vendor Contractor
GS Goods supplier ZCON ABC-Service Vendor Contractor

DEFINE PARTNER SCHEMA

Settings in Vendor Master Record  Define Partner Schemas
ASSIGN PARTNER SCHEMAS TO ACCOUNT GROUPS

Settings in Vendor Master Record  Assign Partner Schemas to Account
Groups
GROUP NAME PS PORG PS VSR PS PLNT

ZCON ABC-Service Vendor Contractor L1 L2 L3
ZE01 ABC -Employees
ZH01 ABC Vendors ( Expenses)
ZIMP ABC -Overseas Vendor (Supplier) L1 L2 L3
ZIND ABC -Domestic Vendor (Supplier) L1 L2 L3
ZPLT ABC Plants
ZTRP ABC -Transporters L1 L2 L3
DEFINE PARTNER SCHEMAS

Settings in Purchasing Documents  Define Partner Schemas
ASSIGN PARTNER SCHEMAS TO DOCUMENT TYPES

Settings in Purchasing Documents  Assign Partner Schemas to Document
Types
DOC. CATEGORY TYPE DESCRIPTION PARPR DESCRIPTION

ABC -Bulk Sup-
Purchase order ZBUL Sch.Agr 0002 Standard PO
Purchase order ZIMP ABC -Import PO 0002 Standard PO
Purchase order ZIND ABC -Std Local PO 0002 Standard PO
Purchase order ZPET ABC -Petty Pur PO's 0002 Standard PO
ABC -Release PO
Purchase order ZRED Direc 0002 Standard PO
Purchase order ZREL ABC -Rel PO agst Conr 0002 Standard PO
Purchase order ZSBC ABC -Sub contract PO 0002 Standard PO
Purchase order ZSGM ABC -Group Spec-Mat 0002 Standard PO
Purchase order ZSGS ABC -Group Spec Serv 0002 Standard PO
Purchase order ZSRV ABC -Service PO 0002 Standard PO
DEFINE PURCHASING MASTER
DEFINE TERMS OF PAYMENTS
IMG Path: Material Management  Purchasing  Vendor Master  Define Terms of

Payment
PAYMEN
T
TERMS DESCRIPTION
Z000 Due within 30 Days
Z001 Within 7 days Due net
Payable in two instalments (0001 and
Z002 Z001)
Z004 Advance payment
Z005 90% within 30 days/bal in 90 days
CHECK INCO TERMS
IMG Path: Material Management  Purchasing  Vendor Master  Check Inco terms
Inco
T Description Cty
CFR Costs and freight X
CIF Costs, insurance & freight X
Carriage and insurance paid
CIP to X
CPT Carriage paid to X
DAF Delivered at frontier X
DDP Delivered Duty Paid X
DDU Delivered Duty Unpaid X
Delivered ex quay (duty
DEQ paid) X
DES Delivered ex ship X
ESM Ex-Smelter- HZL X
ESP Ex-Stock Point- ABC X
EXW Ex Works X
FAS Free Alongside Ship X
FCA Free Carrier X
FH Free house
FOB Free on board X
FOR Free on Road X
UN Not Free
CREATE PURCHASING GROUPS
IMG Path: Material Management  Purchasing  Create Purchasing Groups
PUR.GRP DESCRIPTION
A00 PURCHASE - RAM
A01 STORES - RAM
A10 MILL ELECTRI - RAM
A11 MILL INSTRU - RAM
A12 MILL MECHAN - RAM
A13 MILL ORE DRESS-RAM
A14 ENVIRONMENT - RAM
A20 MINING - RAM
A21 SURVEY - RAM
A22 VOCATI TRAIN - RAM
A23 MECH. - HVSC - RAM
A30 TECHNICAL SRV-RAM
A31 INFORMTECHNO - RAM
A32 INDUSTL ENGG - RAM
A40 CIVIL - RAM
A41 CENT WORKSHOP-RAM
A42 ELECTR GEN - RAM
A43 INSTRUME GEN - RAM
A44 DG SET - RAM
A45 LIGHT VEHICLE GARA
A50 PROCESS LAB - RAM
A51 KAYAR - RAM
A52 GEOLOGY - RAM
A60 PERS & ADMIN - RAM
A70 FINANCE - RAM

A80 MEDICAL SRV - RAM
C00 MATERIALS - CLZS
C10 MECH. PLAN - CLZS
C11 INST. PLAN - CLZS
C12 ELECT. PLAN - CLZS
C13 CIVIL - CLZS
C20 REFRACTORY - CLZS
C21 LAB - CLZS
C22 ISF - CLZS
C23 ZRP - CLZS
C24 LRP - CLZS
C25 CRP - CLZS
C26 SINTER - CLZS
C40 MEDICAL - CLZS
C50 ENVIRONMENT - CLZS
C51 TECH. SERV - CLZS
C60 P & A - CLZS
C70 ACCOUNTS - CLZS
C71 I.T. - CLZS
C80 SALES - CLZS
C81 I.E. - CLZS
STK Stk Pt Sales Off
BATCH MANAGEMENT
IMG Path: Logistic General  Batch Management  Specify Batch Level & Status
Management
Activated Batch management Unique at Material Level

BATCH NUMBER ASSIGNMENT
IMG Path: Logistic General  Batch Management  Batch Number Assignment 

Activate Internal Batch Number Assignment
SELECT CHECK BOX AGAINST ALL ABC PLANTS

SELECT AUTOMATIC BATCH NUMBER ACTIVE

MAINTAIN NUMBER RANGE FOR EXTERNAL BATCH NUMBER ASSIGNMENT
IMG Path: Logistic General  Batch Management  Batch Number Assignment 

Maintain Number Range for External Batch Number Assignment
Select Object: BATCH_CLT
Click on Number Ranges Button
Made no. Range 02 A ZZZZZZZZZZZ for external no. for batches

MATERIAL MANAGEMENT
SET MATERIAL BLOCK FOR GOODS MOVEMENTS
IMG Path: Material Management  General Setting for Material Management  Set
Material Block for Goods Movements
When material master data is read for the first time during a goods movement, this
indicator specifies that tables MARC (plant data) and MBEW (accounting data) are locked
exclusively until the goods movement has been fully posted.
Another user cannot maintain the material during this time. This ensures that the goods
movement is valuated correctly and that the stock quantities and values are updated
correctly. The disadvantage is the long period of time for which the lock is set (from the time
the material master data is first read when the goods movement is entered through to
completion of the update posting).
SETUP MATERIAL BLOCK FOR INVOICE VERIFICATION
IMG Path: Material Management  General Setting for Material Management 

Setup Material Block for Invoice Verification
ACTIVATE CONSIGNMENT PRICE VIA INFO RECORDS
IMG Path: Material Management  General Setting for Material Management 

Activate Consignment Price Via Info Records
PURCHASING
DEFINE DEFAULT VALUES FOR BUYER
IMG Path: Material Management  Purchasing  Define Default Values for Buyers
In this step, you can change the standard settings of certain fields and functions for each
user. You define individual default values and assign them to certain user master records.
You assign default values that you maintained in Customizing to a user by entering the key
of the default value in the user master record under the parameter ID "EVO".
Default value = 01 Default values for group 1
INDICATOR TAB
Select “A” : Update With or without Plant for Purchase Order & Quotation.
FAST PROCESSING TAB
Select: REFERENCE TO P.REQ

PRICE ADOPTION TAB
Select: NOT IF PRICE ENTERED MANUALLY

RFQ/QUOTATION
DEFINE NUMBER RANGES
IMG Path: Material Management  Purchasing  RFQ / Quotation  Define Number

Ranges
NO FROM TO STATUS EXT

210000000 219999999
R1 1 9 0
220000000 229999999
R2 1 9 0
230000000 239999999
R3 1 9 0
280000000 289999999
R4 1 9 0
290000000 299999999
R5 1 9
DEFINE DOCUMENT TYPE
IMG Path: Material Management  Purchasing  RFQ / Quotation  Define

Document Types
DOC ITEM NR.IN NR. EXT. UPDATE

TYPE DESCRIPTION INT. T.AS AS GRP FIELD SEL
ZBSR Bulk Supply Contract 10 R5 SAP ANA
ZGSR Group specific RFQ 10 R4 SAP ANA
ZIMP Import RFQ 10 R2 SAP ANA
ZLOC Local RFQ - NIT 10 R1 SAP ANA
ZLVR Letter Enquiry 10 R1 SAP ANA
ZRCR Rate Contract RFQ 10 R5 SAP ANA
ZSRV Service Contract RFQ 10 R3 SAP ANA
Remove Tik from T-D COND against all the Document Type for Activating Purchasing Pricing
Procedure to Quotation.
Select Required Purchase Requisition for each RFQ Document Type.

RELEASE PROCEDURE
EDIT CHARACTERISTIC
IMG Path: Material Management  Purchasing  RFQ / Quotation  Release

Procedure for RFQ  Edit Characteristic
In this step, you create characteristics for a release procedure for requests for quotations
(RFQs).
Classification characteristics are the criteria for a release Condition. If the criteria of a
release condition are satisfied, the associated release strategy is assigned to the purchasing
document (e.g. purchase order or RFQ).
In communication structure CEKKO you will find all the fields that can be used as
characteristics for a release condition (e.g. BSART for the order type and GNETW for the
total order value).
1. Create a characteristic for each field from communication structure CEKKO that is to be a
criterion for your release strategy. You have a free choice of names for the characteristic.
2. Enter the table name and the field name on the tab page Additional data (for example,
table CEKKO for field GNETW).
3.Check the data for the chosen field on the tab page Basic data.
If you want to enter several values or a value interval for a characteristic, set the multiple
values indicator in the area Value assignment.
Note
Value intervals can only be specified for numerical values (e.g. an interval of 10,000 to
15,000 for the value of the purchase order.
4. Check the texts for the field on the tab page Descriptions.
5. You can maintain default values for a characteristic on the tab page Values.
If you maintain values here, these values will be displayed as input help under Create
Procedure with Classification  Release Strategy  Classification. If you wish to use not
only the input help but also other values, you must select the Additional values indicator.
Note
You can also maintain ' ' as a default value. For example, for account assignment: ' ' for stock
material, 'k' for cost center, and 'a' for asset.
6. If you want to restrict the use of a characteristic to particular class types, specify the
relevant class types on the tab page Restrictions. For example, class type 032 for the release
strategy.
Following Characteristic Created as per HZL Requirement. Enter Required Data in Basic Data,
Additional Tab as per Requirement.
BASIC DATA
CHARACTERISTIC = Z_EKKO_POORG
DESCRIPTION = Purchasing Organization
STATUS = Released
VALUE ASSIGNMENT = Check Multiple Values
ADDITIONAL TAB
TABEL NAME = CEKKO

FIELD NAME = EKORG
BASIC DATA
CHARACTERISTIC = Z_EKKO_DOCCATEGORY
DESCRIPTION = Purchasing document category
STATUS = Released
VALUES TAB
A Request for quotation

B Purchase requisition
F Purchase order
I Info record
K Contract
L Scheduling agreement
Q Service entry sheet
W Source list
ADDITIONAL TAB
TABEL NAME = CEKKO
FIELD NAME = BSTYP
BASIC DATA
CHARACTERISTIC = Z_EKKO_DOCTYPE
DESCRIPTION = Order type (Purchasing)
STATUS = Released
ADDITIONAL TAB
TABEL NAME = CEKKO

FIELD NAME = BSART
BASIC DATA
CHARACTERISTIC = Z_EKKO_GNETW
DESCRIPTION = Total net order value
STATUS = Released
CHECK INTARVAL VALUE ALLOWED CHECK BOX
VALUES
0.00 - 50000.00 INR
> 50000.00 INR
ADDITIONAL TAB
TABEL NAME = CEKKO

FIELD NAME = GNETW
BASIC DATA
CHARACTERISTIC = Z_EKKO_CURR
DESCRIPTION = Currency Key
STATUS = Released
ADDITIONAL TAB
TABEL NAME = CEKKO
FIELD NAME = WAERS
EDIT CLASSES

Procedure for RFQ  Edit Classes
In this step, you create classes for a release procedure for requests for quotations (RFQs).
You use a class to group together characteristics that are to constitute a release condition
for a release strategy. In the step we assign this class to the release strategy.
ACTIVITIES
1. Create a class with the class type 032. You have a free choice of names for the new
class (e.g. REL_RFQ for the release of RFQs).
2. Assign a name for the new class on the tab page Basic data.
3. You can view an error message if different characteristics with identical values have
been assigned to a class. To be able to do so, select the Check with error message
indicator in the Same classification area.
4. If appropriate, select terms to be used as search criteria in searches for your class on
the Keywords tab page.
5. Assign your characteristics to the class via the tab page Characteristics.
CLASS = ZABC_REL
CLASS TYPE = 032
BASIC DATA
DESCRIPTION = ABC RELEASE PROCEDURE.

STATUS = RELEASED
SELECT DO NOT CHECK RADIO BUTTON IN SAME CLASSIFICATION

CHAR TAB
CHARACTERISTIC DESCRIPTION DATA
Z_EKKO_POORG Purchasing Organization CHAR 4 0
Z_EKKO_DOCCATEGORY Purchasing document category CHAR 1 0
Z_EKKO_DOCTYPE Order type (Purchasing) CHAR 4 0
Z_EKKO_GNETW Total net order value CURR 15 2 INR

Z_EKKO_CURR Currency Key CHAR 5 0
DEFINE RELEASE PROCEDURE FOR RFQ

Procedure for RFQ  Define Release Procedure for RFQ
In this step, you set up the release procedure for Purchasing Documents. (Note that in this
context "releasing" means "approving", or giving the "green light" to a document.)
Activities
Here you define the following:
Release group
Release codes
Release indicators
Release strategy
RELEASE GROUP
Here you create the Release Codes you need for your release strategy and assign the codes
to your release group. If a release code is to be used
REL.GRP REL OBJ. CLASS DESCRIPTION
R1 2 ZABC_REL PUR DOC REL. GROUP

RELEASE CODES
Here you create the release codes you need for your release strategy and assign the codes
to your release group.
GRP CODE WORKFLOW DESCRIPTION

R1 G1 INITIATOR
R1 G2 RECOMMENDER
R1 G3 APPROVER
R1 R1 PURCHASE ASSISTANTS
R1 R2 MANAGER/EXECUTIVES
R1 R3 UNIT MATERIAL HEAD
RELEASE INDICATOR
A release indicator shows the release status of an RFQ.
Via the following settings, you can define the release indicators you need for your release
procedure:
The Released indicator is used to specify whether messages (RFQ documents in output
format) may be transmitted for an RFQ with this indicator. The Changeability indicator
shows the effect of changes to the RFQ (a change to an RFQ may require a new release
strategy to be determined, for instance). By means of the Value change field, you can
specify that the release strategy is to be re-started if an RFQ is changed and the value of an
RFQ item thereby increases by a certain percentage (e.g. 10%). Set the Changeability
indicator to "4 - Changeable, new release in case of new strategy or value change" or "6 -
Changeable, new release in case of new strategy or value change/outputted" and enter a
percentage in the Value change field.
The following release indicators are necessary for every release procedure:
Release indicator for initial status. If the RFQ is subject to a release strategy, it must
normally be released before it can be transmitted to the vendor. Therefore, when an RFQ is
created, it is assigned a release indicator that blocks it from being outputted in message
form. The Released indicator must not be selected for this indicator. Release indicator for
released status
This indicator is assigned to the RFQ when it is released. The Released indicator must be
selected for this indicator.
REL.INDICATOR RELEASED CHANGABLE VALUE CHANGE % DESCRIPTION

A 6 1 Not Release
R X 6 1 Release
RELEASE STRATEGY
With the release prerequisites, you specify the order in which the individual release points
(individuals or departments) represented by the release codes may release the document.
Example
The following table shows release prerequisites for a strategy with four release codes.
Code/Release prerequisite
01 02 03 04
01 - [] [] []
02 [x] - [] []
03 [x] [x] - []
04 [x] [x] [x] -
In this release strategy, the codes 01, 02, 03, and 04 must successively release the RFQ.
Read the table from left to right. For instance, the third line for release code 03: For code
03, release via code 01 and code 02 is a prerequisite. That is to say, the RFQ must be
released via codes 01 and 02 before it can be released via code 03.
Release statuses
Here you specify the status an RFQ has after certain release points have affected release.
Specify which release indicator/status an RFQ is to have after having been released via a
certain release code.
Classification
In classification, you maintain the values assigned to the characteristics. Via the
characteristics and their values, you specify the RFQs to which your release strategy is
assigned.
Maintain values (individual values or intervals) for your characteristics.
Example
Two characteristics and their values have been maintained in classification for release
strategy 'EA':
- Document type - 'NB - standard purchase order'
- Total value - above 10,000
All POs with the document type 'NB' and a total value in excess of $10 ,000 are thus subject
to a release procedure with the release strategy 'EA'.
Release simulation
The release simulation function enables you to check which status an RFQ will achieve with
your release strategy if release is effected by a certain release point.
Choose "Simulate release" and release the document with the desired release code by
double-clicking. The system shows you which status the RFQ now has as a result of this
release.
RELEASE STRATEGIES
RELEASE GROUP = R1 PUR DOC REL. GROUP

RELEASE STRATEGY = R1 SINGLE LEVEL REL STR
RELEASE CODE= R1 PURCHASE ASSISTANTS
CLASSIFICATION
Following Classification data provided.
CHARACTER DESCRIPTION VALUE

Purchasing Organization 1000
Purchasing document Request for

category quotation
Order type (Purchasing) ZBSR

Order type (Purchasing) ZGSR
Order type (Purchasing) ZIMP
Order type (Purchasing) ZLOC
Order type (Purchasing) ZLVR
Order type (Purchasing) ZRCR
Order type (Purchasing) ZSRV
Total net order value 0.00 - 50000.00 INR

Total net order value > 50000.00 INR
Currency Key EUR

Currency Key INR
Currency Key JPY
Currency Key SEK
Currency Key USD
Release Indicator assign in following way

2nd RELEASE STRATEGY

RELEASE STRATEGY = R2 TWO STEP REL PRO
R2 MANAGER/EXECUTIVES
Enter Following information in respective fields

RELEASE STATUS
CLASSIFICATION
Enter Following data in Classification Tab
CLASSIFICATION DESC. VALUE

Purchasing document
category Purchase order
3RD RELEASE STRATEGY
Order type (Purchasing) ZPET
Total net order value > 50000.00 INR RELEASE GROUP = R1
Currency Key INR PUR DOC REL. GROUP
RELEASE STRATEGY = R3 2 STEP < 50000
CLASSIFICATION DESC. VALUE


Purchasing document category Purchase order
Purchasing document category Contract
Purchasing document category Scheduling agreement
Order type (Purchasing) FO
Order type (Purchasing) LP
Order type (Purchasing) LPA
Order type (Purchasing) UB
Order type (Purchasing) ZBUL
Order type (Purchasing) ZCBS
Order type (Purchasing) ZCHO
Order type (Purchasing) ZCPL
Order type (Purchasing) ZCSR
Order type (Purchasing) ZIND
Order type (Purchasing) ZRED
Order type (Purchasing) ZREL
Order type (Purchasing) ZSBC
Currency Key EUR
Currency Key INR
Currency Key JPY
Currency Key SEK
Currency Key USD
4TH RELEASE STRATEGY

RELEASE STRATEGY = R4 3 STEP > 50000 CURC
R3 UNIT MATERIAL HEAD
RELEASE INDICATOR
CHARACTERSITC DESC VALUE


Purchasing document category Contract
Purchasing document category Scheduling agreement
Order type (Purchasing) FO
Order type (Purchasing) UB
Order type (Purchasing) ZBUL
Order type (Purchasing) ZRED
Order type (Purchasing) ZREL
Order type (Purchasing) ZSBC
Order type (Purchasing) ZSRV
Currency Key EUR
Currency Key INR
Currency Key JPY
Currency Key SEK
Currency Key USD
5TH RELEASE STRATEGY

RELEASE STRATEGY = R5 3 STEP GROUP SPEC
RELEASE CODE= G1 INITIATOR
G2 RECOMMENDER
G3 APPROVER
CHARACTERSITC DESC VALUE

Order type (Purchasing) ZSGM
Order type (Purchasing) ZSGS
Currency Key INR
PURCHASE REQUISITION
In this section, you make the system settings for purchase requisitions.
IMG Path: Material Management  Purchasing  Define Number Ranges
In this step, you maintain the number ranges for purchase requisitions.

10 1100000001 1199999999 0
11 1200000001 1299999999 0
12 1300000001 1399999999 0
13 1500000001 1599999999 0
14 1810000001 1819999999 0
15 1900000001 1999999999 0
16 1820000001 1829999999 0
IMG Path: Material Management  Purchasing  Define Document Types
The System manages Purchases Requisitions as documents. We can group requisitions into
any number of document types.
In this step, we can do the following:
Create new document types

Define the item interval
Define allowed follow-on document types
Assign document types to a Number Range Group
Define number range interval
Choose type of Number Assignment (Internal or External)
We maintain the associated Number Ranges in the step Define Number Ranges under
"Purchasing
ITEM NR.INT. NR. EXT. FIELD OVER DOC

DOC TYPE DESCRIPTION INT. AS AS SEL CONTROL REQ REL VARIANT TYP
FO Framework Order 10 01 2 FOF SRV
ZGSP ABC-Grp Spec. Mat PR 10 14 2 NBB
ZGSS ABC -Grp Spec.Sev. PR 10 16 2 NBB
ZIMP ABC -Import PR 10 11 2 NBB
ZIND ABC -Manual Req. 10 10 2 NBB
ZMRP ABC -MRP based PR 10 13 2 NBB
ZSBC ABC -Sub-Contract PR 10 12 2 NBB
ZSRV ABC -Service PR 10 12 2 NBB
ZSTO ABC -Stock Tr PR 10 15 2 NBB
Select the Required Document type & assign link document types to which selected
requisition used as a reference.
LINK PURCHASE REQUISITION WITH DOCUMENT TYPE
DocT ICa DocT ITEM NoA R/S

CATEGORY
ZGSP K ZIND K
ZGSP L ZIMP L
ZGSP L ZIND L
ZGSP S ZLVR
ZGSP S ZIND S
ZGSS D ZSRV D
ZGSS D ZSGS D
ZGSS D ZSRV D
ZIMP ZBSR
ZIMP ZIMP
ZIMP ZLOC
ZIMP ZRCR
DEFINE SCREEN LAYOUT AT DOCUMENT LEVEL
For all external Purchasing Documents and purchase requisitions, we can specify the input
attributes of fields by using field selection keys.
A field selection key determines whether a field is:

A mandatory-entry field (input required)
An optional-entry field (input possible)
A display field (field displayed only, input not possible)
Suppressed
Select ME51 & ME51N

Double click on Reference data, item & select REQUISITIONER mandatory
PURCHASE ORDER
In this step, you make the system settings for Purchase Orders.
In this step, you maintain the number ranges for Purchase Order
IMG Path: Material Management  Purchasing  Purchase Order  Define Number

Ranges

35 3500000001 3599999999 0
41 4100000001 4199999999 0
42 4200000001 4299999999 0
44 4400000001 4499999999 0
45 4500000001 4599999999 0
48 4800000001 4899999999 0
51 5100000001 5199999999 0
52 5200000001 5299999999 0
58 5800000001 5899999999 0
61 6100000001 6199999999 0
IMG Path: Material Management  Purchasing  Purchase Order  Define

Document Types
ITE NR NO FIELD DOC

DOC M NR.IN EX EXT.AL UPDAT SELEC CONTRO VARIAN VENDO TYP
TYPE DESCRIPTION INT. T AS T E E GRP T L T R E
ABC-Framework
FO Order 10 45 SAP FOF SRV
UB ABC-Stk transport 10 61 SAP UBF T
ZBUL ABC-Bulk Sup-Sch.Agr 10 35 SAP ZNBF
ZIMP ABC-Import PO 10 42 SAP ZNBF
ZIND ABC-Std Local PO 10 41 SAP ZNBF
ZPET ABC-Petty Pur PO's 10 45 SAP NBF
ZRED ABC-Release PO Direc 10 44 SAP ZNBF
ZREL ABC-Rel PO agst Conr 10 44 SAP ZNBF
ZSBC ABC-Sub contract PO 10 52 SAP ZNBF
ZSG
M ABC-Group Spec-Mat 10 48 SAP NBF
ZSGS ABC-Group Spec Serv 10 58 SAP NBF
ZSRV ABC-Service PO 10 51 SAP ZNBF
SET TOLERANCE LIMIT FOR

PRICE VARIANCE
IMG Path: Material Management  Purchasing  Purchase Order  Set Tolerance

Limit for Price Variance
When processing a purchase order, the system checks whether the effective price of a PO
item shows variances compared with the valuation price stored in the material master
record. In addition, it checks whether the specified cash discount value is admissible.
Variances are allowed within the framework of tolerance limits. If a variance exceeds a
tolerance limit, the system issues a warning or error message.
In the SAP System, the types of variance are represented by the tolerance keys. For each
tolerance key, we can define percentage and value-dependent upper and lower limits per
company code.
MAKE NEW ENTRY WITH COMPANY CODE = 1000 AND TOLERANCE KEY = PE
MAKE NEW ENTRY WITH COMPANY CODE = 1000 AND TOLERANCE KEY = SE
RELEASE PROCEDURE FOR PURCHASE ORDER
IMG Path: Material Management  Purchasing  Purchase Order  Release

Procedure for Purchase Order
DETAIL FOUND IN Material Management  Purchasing  RFQ / Quotation  Release

Procedure for RFQ  Define Release Procedure for RFQ chapter.
SETUP STOCK TRANSPORT ORDER
DEFINE SHIPPING DATA FOR PLANTS
IMG Path: Material Management  Purchasing  Purchase Order  Setup Stock

Transport Order  Define Shipping Data for Plants
In this step, we maintain the shipping data for plants for stock transfer processing. Here we
maintain the customer number of the receiving plant. This customer number is used in SD
shipping processing to identify the goods recipient (ship-to party)
We can also define the following for the supplying plant:
Sales organization
Distribution channel
Division
With this data, the system determines the shipping data for the material to be transferred
(e.g. the shipping point).
CustNoPln SOr DstC Div Languag

Plnt Name 1 t Name 1 g h . e
100 300
0 Head Office P1000 Udaipur Head Office 0 30 00 EN
200 Chanderia Lead & Zinc Chanderiya Lead and Zinc 300
0 Smelter P2000 Smelter 0 30 00 EN
210 300
0 Zinc Smelter Debari P2100 Debari Zinc Smelter 0 30 00 EN
220 300
0 Vizag Zinc Lead Smelter P2200 Vizag Zinc Lead Smelter 0 30 00 EN
300 300
0 Rampura Agucha Mines P3000 Rampura Agucha Mines 0 30 00 EN
310 300
0 Rajpura Dariba Mines. P3100 Rajpura Dariba Mines 0 30 00 EN
320 300
0 Zawar Mines. P3200 Zawar Mines 0 30 00 EN
410 300
0 Chandigarh Stock Point. P4100 Chandigarh Stock Point 0 30 00 EN
420 300
0 Hissar Stock Point P4200 Hissar Stock Point 0 30 00 EN
430 300
0 Faridabad Stock Point P4300 Faridabad Stock Point 0 30 00 EN
440 300
0 Sahibabad Stock Point P4400 Sahibabad Stock Point 0 30 00 EN
450 300
0 Jalandhar Stock Point P4500 Jalandhar Stock Point 0 30 00 EN
500 Marketing HO, Regional 300
0 Office P5000 Mumbai Marketing Head Office 0 30 00 EN
510 300
0 Kalamboli Stock Point P5100 Kalamboli Stock Point 0 30 00 EN
520 300
0 Nagpur Stock Point P5200 Nagpur Stock Point 0 30 00 EN
530 Kandla Port Stock Point / 300
0 Sale P5300 Kandla Port Stock Point 0 30 00 EN
600 300
0 Kolkata Stock Point P6000 Kolkata Stock Point 0 30 00 EN
610 300
0 Kolkata Stock Point P6100 Kolkata Stock Point 0 30 00 EN
620 300
0 Jamshedpur Stock Point P6200 Jamshedpur Stock Point 0 30 00 EN
710 300
0 Bangalore Stock Point P7100 Hyderabad Stock Point 0 30 00 EN
720 300
0 Hyderabad Stock Point P7200 Bangalore Stock Point 0 30 00 EN
730 300
0 Pondicherry Stock Point P7300 Pondicherry Stock Point 0 30 00 EN
740 Chennai Stock Point P7400 Chennai Stock Point 300 30 00 EN
0 0
Assign Delivery
Type and Checking Rules
IMG Path: Material Management  Purchasing  Purchase Order  Setup Stock

Transport Order  Assign Delivery Type and Checking Rules
In this step, we specify whether an SD delivery is to be created in the case of a PO with a

certain combination of supplying plant and document type. We can also specify which
delivery type is to be used.
The delivery type in Sales and Distribution (SD) determines how a delivery is handled. In the
SAP system, the delivery type 'NL' is used for stock transfers without a billing document.
Ship. Route
Cat Type SPlt DlvTy ChR sch. sch. Doc. type descr. Description Checking rule L1 L2 DTCon
ABC-Stk
F UB 2000 NL 1 transport Replenishment Dlv. Checking rule 01
ABC-Stk
ABC-Stk
ABC-Stk
ABC-Stk
ABC-Stk
ABC-Stk
ABC-Stk
ABC-Stk
ABC-Stk
ABC-Stk
ABC-Stk
ABC-Stk
ABC-Stk
ABC-Stk
ABC-Stk
ABC-Stk
ABC-Stk
ABC-Stk
ABC-Stk
ABC-Stk
ABC-Stk
ASSIGN DOCUMENT TYPE, ONE STEP PROCEDURE, UNDER DELIVERY TOLERANCE
In this step, we define which document type is to be used for a certain combination of
supplying plant and receiving plant. As the supplying and receiving plants belong to the
same company code, we choose the document type 'UB' or a comparable document type of
your own. A physical stock transfer is then carried out without a billing document.
Depending on the supplying and issuing plants, you can also specify whether or not the
stock transfer is to be executed according to the one-step procedure. With the one-step-
procedure, the goods receipt in the receiving plant is posted at the same time as the goods
issue in the issuing plant.
SPlt Plnt Cat Type One-step TST
2000 1000 F UB
2000 2000 F UB
2000 2100 F UB
2000 2200 F UB
2000 3000 F UB
2000 3100 F UB
2000 3200 F UB
2000 4100 F UB
2000 4200 F UB
2000 4300 F UB
2000 4400 F UB
2000 4500 F UB
2000 5000 F UB
2000 5100 F UB
2000 5200 F UB
2000 5300 F UB
2000 6000 F UB
2100 2000 F UB
2100 2100 F UB
2100 2200 F UB
2100 3000 F UB
2100 3100 F UB
2100 3200 F UB
2100 4100 F UB
2100 4200 F UB
2100 4300 F UB
2100 4400 F UB
2100 4500 F UB
2100 5000 F UB
2100 5100 F UB
2100 5200 F UB
2100 5300 F UB
2100 6000 F UB
2100 6100 F UB
2100 6200 F UB
2100 7100 F UB
2100 7200 F UB
2100 7300 F UB
Define the above Combination for All the Plants defined for HZL
CONTRACT
In this step, you maintain the number ranges for Contract
IMG Path: Material Management  Purchasing  Contract  Define Number Ranges

31 3100000001 3199999999 0
33 3300000001 3399999999 0
37 3700000001 3799999999 0
IMG Path: Material Management  Purchasing  Contract  Define Document

Types
DO ITE N DO
C M NR.I R NO UPDA FIELD C
TYP INT NT EX EXT.A TE SELE CONTR VARIA VEND TYP
E DESCRIPTION . AS T LE GRP CT OL NT OR E
Quantity
MK contract 10 31 SAP MKK
ZCH ABC-Rate
O Contract 10 31 SAP WKK
ZCP ABC-Plant Rate
L Con 10 37 SAP WKK
ZCS ABC-Service
R contract 10 33 SAP WKK
LINKAGE REQUISITION TYPE TO CONTRACT
DocT ICa DocT I NoA R/S Dialog
ZIMP MK X
ZIMP MK K X X X
ZIMP ZCHO X
ZIMP ZCHO K X X X
ZIMP ZCPL X
ZIMP ZCPL K X X X
ZIMP K MK K X X
ZIMP K ZCHO K X X
ZIMP K ZCPL K X X
ZIND MK X
ZIND MK K X X X
ZIND ZCHO X
ZIND ZCPL
ZIND K MK K X X
ZMRP MK X
ZMRP MK K X X X
ZMRP ZCHO X
ZMRP ZCHO K X X X
ZMRP ZCPL X
ZMRP ZCPL K X X X
ZMRP K MK K X X
ZMRP K ZCHO K X X
ZMRP K ZCPL K X X
ZSRV D ZCSR D X
RELEASE PROCEDURE FOR CONTRACT
IMG Path: Material Management  Purchasing  Contract  Release Procedure for

Contract
DETAIL FOUND IN Material Management  Purchasing  RFQ / Quotation  Release

Procedure for RFQ  Define Release Procedure for RFQ chapter.
SCHEDULING AGREEMENT
In this step, you maintain the number ranges for Scheduling Agreement
IMG Path: Material Management  Purchasing  Scheduling Agreement  Define

Number Ranges

35 3500000001 3599999999 0
IMG Path: Material Management  Purchasing  Scheduling Agreement  Define

Document Types
DO DO
C ITE NR FIELD T-D C
TYP M NR.IN EX UPDAT SELEC CONTRO SLLN CON RELEAS VARIAN VENDO TYP
E DESCRIPTION INT. T AS T E GRP T L T D E DOC T R E
AB-Agr (No Rel
LP Doc) 10 35 SAP LPL
LPA Sch Agr-Rel Doc 10 35 SAP LPL
Transp. sched.
LU agmt. 10 35 SAP LUL T
ZCB
S ABC-Bulk Supply 10 35 SAP LPL
LINKAGE REQUISITION TYPE TO CONTRACT
DocT ICa DocT I NoA R/S Dialog
ZIMP ZCBS X
ZIMP ZCBS K X X X
ZIMP K ZCBS U X X
ZIMP U ZCBS X
ZIND ZCBS X
ZIND ZCBS K X X X
ZIND K ZCBS U X X
ZIND U ZCBS X
ZMRP ZCBS X
ZMRP ZCBS K X X X
ZMRP K ZCBS K X X
ZMRP U ZCBS X
CONDITION
DEFINE CONDITION TYPE
IMG Path: Material Management  Purchasing  Condition  Define Price

Determination Process  Define Condition Type
The condition types are used to represent pricing elements such as prices, discounts,
surcharges, taxes, or delivery costs in the SAP System. These are stored in the system in
condition records.
In a price calculation schema (which may also be termed a "pricing procedure"), we collect
together all the condition types that are automatically to be taken into account by the SAP
System in the process of price determination with regard to a business transaction.
Note that we can only also enter manually the condition types that are contained in the
calculation schema.
We can alter the result of the price determination process in the purchasing document
manually. We can limit the change options for a condition type in this step.
If we define our own condition types, the key should begin with the letter Z, as SAP keeps
these name slots free in the standard system.
We should not change the condition types that are included in the standard SAP System
supplied.
Actions
1. Check the extent to which you can use the condition types those are included in the
standard SAP system supplied.
2. Create new access sequences by copying and changing similar existing ones.
In doing so, you must specify the following:
Enter an alphanumeric key (which can have a maximum of 4 characters) for the condition
type, together with a descriptive text.
Specify an access sequence for the condition types. (For header conditions, you need not
specify an access sequence.)
3. Maintain the detail screen for the condition type.
Following Condition types are defined as per ABC Requirement.
USEA Ap CalT ScBa CdC Ma Acc CC Hea Ite +/ Am Va Re De Cur Vend

GE p CTyp Name y s at n. r. l d m - t l l l C or
Surcharge % on
A M ZA00 Net A C A X X A X X
Surcharge % on
A M ZA01 Gross A C C A X X A X X
ZAC
A M V ACTUAL VALUE B D A X X
A M ZB00 Surcharge (Value) B C A X X A X X
Surcharge/
A M ZC00 Quantity C C A X A X X X
ZCA Clearing Agent
A M C Charg B B B C X A X X A X X X X 2
ZCD
A M S Special customs B B B C X A X X A X X X X 2
A M ZCFC C & F (Inland) B B B C X A X X A X X X X 2
A M ZCIF CIF Value B B B C A X X A X X X X 2
ZCU
A M D Customs Duty B B B C X A X X A X X X X 2
ZCV
A M D CVD B B B C X A X X A X X X 2
ZDE Demurrage
A M M Charges B B B C X A X X A X X X X 2
A M ZEXS Excise in PO- HZL B D D D X
ZFO
A M 1 Forwarding % A B B C A X X A X X X X 2
ZFO
A M 2 Forwarding Value B B B C A X X A X X X X 2
A M ZFPP Fright-Port to Port B B B C X A X X A X X X X 2

ZG0 Markup Deliv.
A M 1 Plant A C C A X X A X X
ZHA Handling Chrg-
A M L Inland B B B C X A X X A X X X X 2
ZHA Handling Chrg-
A M O OVR B B B C X A X X A X X X X 2
ZHC Handl Chrg Main
A M O Sup. B B B C A X X A X X X X
Frt-Works-Port
A M ZIFV (VAL) B B B C X A X X A X X X X 2
Inland Freight
A M ZINF (IMP) B B B C X A X X A X X X X 2
Insurance Charges
A M ZINP % A B B C X A X X A X X X X 2
A M ZINS Ins ChrgS-Inland B B B C X A X X A X X X X 2
Ins Chrgs Value-
A M ZISN Imp B B B C X A X X A X X X X 2
Inter. Transport
A M ZITC Chg B B B C X A X X A X X X X 2
A M ZLDC Loading Charges B B B C X A X X A X X X X 2
ZLN Landing Charges
A M C % A B B C X A X X A X X X X 2
ZLN
A M V Landing Chrg (Val) B B B C X A X X A X X X X 2
ZOA
A M 1 Customs % A B B X A X X X
ZOB
A M 1 Customs (Value) B B B X A X X X
ZOC
A M 1 Customs/Quantity C C B X A X X X X
ZOT
A M 1 Octroi % A B B C X A X X A X X X X 2
ZOT
A M 2 Octroi Value B B B C X A X X A X X X X 2
Packing &
A M ZPAF Forwarding B B B C A X X A X X X X 2
A M ZPC1 Packing Value B B B C A X X A X X X X 2
A M ZPC2 Packing % A B B C A X X A X X X X 2
Packing &
A M ZPFP Forward % A B B C A X X A X X X X 2
ZSA
A M D SAD B B B C X A X X A X X X X 2
DEFINE CALCULATION SCHEMA

Determination Process  Define Calculation Schema
In this step, you define the calculation schemas. In the MM area, a calculation schema - a
framework of steps used to calculate or determine something - is used among other things
to calculate costs, prices, period-end rebates, and taxes.
Note
In the calculation schema (pricing procedure), we specify which condition types are to be
taken into account in which sequence. In the price (or cost) determination process, the SAP
System automatically determines which calculation schema is valid for a business
transaction and takes into account, one after another, the condition types it contains.
The following calculation schemas are predefined in the standard system. You should not
change these schemas.
ZJRM00 ABC-IN: Purchasing

ZJIMP1ABC-IN: Import Purchasing
Control the price determination process in POs, quotations, and scheduling agreements.
Both calculation schemas require 2 condition types for the gross price: one for automatic
price determination (standard: PB00) and one for manual maintenance (standard: PBXX).
RM0001 and RM1001 Determine which condition types you can enter in purchasing
document headers with Time-Dependent Conditions (e.g. contracts).
RM0002, RM1002 determines which additional condition types you can enter in purchasing
document items with time-dependent conditions or in the Purchasing Info Record.
RMMP00 defines the condition type for determining the market price which can be entered
for each material.
ZRM200, ABC-Stock Transfer Document Controls the delivery cost determination process in
stock transport orders and stock transport scheduling agreements.
Enter a key (length max. six characters) for the schema you wish to create, and a descriptive
text.
For each schema, specify the condition types in the order of their usage, and maintain the
relevant data
PRICING PROCEDURE FOR STOCK TRANSFER PURCHASE ORDER
ZRM200 = ABC-Stock Transfer Document

PRICING PROCEDURE FOR DOMESTIC PURCHASE ORDER
ZJRM00 = ABC-IN: Purchasing

PRICING PROCEDURE FOR IMPORT PURCHASE ORDER
ZJIMP1 = ABC-IN: Import Purchasing

PRICING PROCEDURE FOR MARKET PRICE
RMMP00 = Market Price

DEFINE SCHEMA GROUP

Determination Process  Define Schema Group
In this step, you define schema groups.

These allow you to group together purchasing organizations that use the same calculation
schema.
You can also use them to group together vendors for whom the same calculation schema is
valid
Activities
In this step, you can:

Define schema groups for purchasing organizations and vendors
Assign schema groups to your purchasing organizations
Note:
You assign vendors to schema groups in the relevant vendor master records
Schema Groups: Vendor
SCHEMA GROUP DESCRIPTION

I1 Import Vendor Schema
L1 Local Vendor Schema
S1 Stock Transfer Vendor Schema
DEFINE SCHEMA DETERMINATION

Determination Process  Define Schema Determination
In this step, you assign purchasing transactions and processes to a calculation schema; that
is, you specify the cases in which a certain schema is used.
For Standard Purchase Orders

Depending on the schema group of the vendor and the purchasing organization
For Stock Transport Orders

Depending on the supplying plant, the document type and the schema group of the
purchasing organization)
For Market price Determination
Depending on the purchasing organization

That is, for each purchasing organization, a separate calculation schema can apply for the
determination of the market price
Determine Calculation Schema for Standard Purchase Orders
SCHEMA
SCHEMA GRP GROUP
PORG VENDOR PROCEDURE DESCRIPTION
RM0000 Purchasing Document (Big)
1 RM1000 Purchasing Document (Small)
I1 ZJIMP1 ABC-IN: Import Purchasing
L1 ZJRM00 ABC-IN: Purchasing
S1 ZRM200 ABC-Stock Transfer Document
1 RM1000 Purchasing Document (Small)
1 1 RM1000 Purchasing Document (Small)
2000 ZJRM00 ABC-IN: Purchasing
2000 I1 ZJIMP1 ABC-IN: Import Purchasing
2000 L1 ZJRM00 ABC-IN: Purchasing
Determine Schema for Stock Transport Orders
SCHEMA
GRP
PORG DOC.TYPE SUPPL PLANT PROCEDURE DESCRIPTION
LU ZRM200 ABC-Stock Transfer Document
UB ZRM200 ABC-Stock Transfer Document
Determine Calculation Schema for Determination of Market Price
PUR. MARKET PRICE SCHEMA

ORG DESCRIPTION SCHEMA DESCRIPTION
1000 Central Pur. Org RMMP00 Market Price
2000 Chanderiya Pur.Org. RMMP00 Market Price
2100 Debari Pur. Org. RMMP00 Market Price
2200 Vizag Pur. Org. RMMP00 Market Price
3000 Agucha Pur. Org. RMMP00 Market Price
3100 Dariba Pur. Org. RMMP00 Market Price
3200 Zawar Pur. Org. RMMP00 Market Price
9000 Stk Trn Pur.Org. RMMP00 Market Price
9100 FG Stk Trn Pur.Org. RMMP00 Market Price
9200 Sales Office Pur.Org RMMP00 Market Price
GENERAL TOPIC IN PURCHASING
IMPORT SCREENS IN PURCHASING DOCUMENT
IMG Path: Material Management  Purchasing  Foreign Trade / Customs  Control

Foreign Trade Data in MM & SD Documents
In this step, you set the system to propose import screens for the subsequent maintenance
of purchase orders and purchasing outline agreements.
Change Imp.Data Field to 2 i.e. Never Call up Import Data Screens

DEFINE DEFAULT VALUES FOR DOCUMENT TYPE
IMG Path: Material Management  Purchasing  Define Default Values for

Document Type
In this step, you can define the default values for the document type in certain transactions
If a purchase order is generated from a requisition, the document type is adopted from the
requisition.
T.CODE T.CODE DESCRIPTION DOC.TYPE DESCRIPTION

MB01 Post Goods Receipt for PO ZIND ABC-Std Local PO
ME21 Create Purchase Order ZIND ABC-Std Local PO
ME21N Create Purchase Order ZIND ABC-Std Local PO
ME25 Create PO with Source Determination ZIND ABC-Std Local PO
ME27 Create Stock Transport Order UB ABC-Stk transport
ME31 Create Outline Agreement
ME31K Create Contract
ME31L Create Scheduling Agreement ZCBS ABC-Bulk Supply
ME37 Create Transport Scheduling Agmt. LU Transp. sched. agmt.
ME41 Create Request For Quotation ZLOC ABC-Local RFQ - NIT
ME51 Create Purchase Requisition ZIND ABC-Manual Req.
ME51N Create Purchase Requisition ZIND ABC-Manual Req.
MESSAGES IN PURCHASING DOCUMENT
ASSIGN FORM AND OUTPUT PROGRAM TO PURCHASE ORDER
IMG Path: Material Management  Purchasing  Messages  Forms (Layout Sets)

for Messages  Assign Form & Output Program to Purchase Order
Assign Form “ZMEDRUCK” which is a changed of original form “MEDRUCK” to Form field of
Out put Type NEU. NEU message type is used for generating output of Domestic Purchase
Order. New Changed program of “ZSAPFM06P” which is copy of sap standard program
“SAPFM06P” is assigned to message type “NEU”
Same way New Message type “NEUI” is created for generating messages (printout) for
Import Purchase Order. New Developed Form “ZIMP_MEDRUCK” assigned to message type
“NEUI”. New program “ZIMP_SAPFM06P” is assigned to message type “NEUI”.
DEFINE MESSAGE TYPES FOR PURCHASE ORDER
IMG Path: Material Management  Purchasing  Messages  Output Control 

Message Type  Define Message Type for Purchase Order  Maintain
Message Types for PO
Make new Message Type “NEUI” Purchase order (IMP) by copying existing message type
“NEU”
DEFINE MESSAGE SCHEMA FOR PURCHASE ORDER
In this step, you define your message schema for the purchase order and assign it to the PO.
The allowed message types for each message application (new printout, expediter, etc.) are
stored in a message schema. This enables the system to suggest the relevant message
automatically in a PO.
You must first define the message types and then enter them in a message schema.
Note
Only one schema and one message type can be assigned to the PO.

Message Determination Schema  Define Message Schema for Purchase
Order  Maintain Message Determination Schema: Purchase Order
Copy “NEU” of Step 10 in step 50 for “NEUI” to print import purchase order.
DEFINE PARTNER ROLE FOR PURCHASE ORDER

Partner Role Per Message Type  Define Partner Role For Purchase Order
In this step, you define the partner roles for the message types.
Activities
Specify which partner roles are allowed for the relevant message type.
Copies all the entries with message type “NUE” to “NEUI” for Import Purchase Order
printout.
VENDOR EVALUATION
In this section, you make the settings for vendor evaluation that apply to all purchasing
organizations:
 Define weighting keys
 Define criteria
 Define scope of list
In the step Define Purchasing Organization Data for Vendor Evaluation, you define
individual values for each purchasing organization.
Prerequisites
Note that different vendors can be evaluated by several purchasing organizations. To ensure
the comparability of these evaluations, the system settings must not differ. For example,
you may not allow different scoring ranges.
DEFINE WEIGHTING KEYS
IMG Path: Material Management  Purchasing  Vendor Evaluation  Define

Weight Deys
In this step, you define the weighting keys for the main criteria of vendor evaluation.
Following Weighting Key Defined as per ABC requirment.
Weighting Key Description

H1 Equal weighting
H2 Unequal weighting
DEFINE CRITERIA

Criteria
In this step, you define the criteria by which the system computes scores for vendors and
specify whether the scores for the sub criteria are computed manually, semi-automatically,
or automatically.
Recommendation:
You can define up to 99 main criteria. Make sure you limit the main criteria to the most
important ones, so that lists do not become too crowded. We recommend a maximum of
eight main criteria.
Activities
1. Enter all further criteria you need and maintain a description/name (this appears
on screens and in dialog boxes) and a short text (appears as column heading in
ranking lists).
2. specify the sub criteria for each main criterion via Goto -> Sub criteria.
For each sub criterion, enter the scoring method. If you have created a user exit for
the sub criterion, enter it.
Note
For each purchasing organization you then specify whether the main and sub criteria can be
maintained manually. You also determine the weighting of the sub criteria.
Following evaluation criteria are defined as per HZL requirement.
EVALUATION
CRITERIA DESCRIPTION SHORT TEXT
51 ABC Price PRICE
52 ABC Quality QUALIT
53 ABC Delivery DELIV.
54 ABC Service SERV.
55 ABC Service
Following Sub Criteria are defined as per ABC Requirement.
EVALUATION CRITERIA = 51 ABC PRICE
SUB DESCRIPTION OF USER SCORING

CRITERIA CRITERIA EXIT METHODS SHORT TEXT
1 Price level 4 Automatic determination from purch. Statistics: price level
2 Price behavior 5 Automatic determ. From purch. Statistics: price behavior
EVALUATION CRITERIA = 52 ABC QUALITY

1 GR inspection 7 Automatic determination from quality statistics: GR inspect.
2 Rejection/complaint 8 Automatic determ. from quality stat.: quality notification
3 Audit 9 Automatic determ. from quality statistics: system audit
EVALUATION CRITERIA = 53 ABC DELIVERY

Automatic determination from on-time deliv. perf.
1 On-time delivery 3 statistics
Automatic determ. from shipping instructions
3 Shipping instructs. 6 statistics
EVALUATION CRITERIA = 54 ABC SERVICE

1 ABCs Opinion No automatic determination
DEFINE SCOPE OF LIST
IMG Path: Material Management  Purchasing  Vendor Evaluation  Define Scope

of List
In this step, you can define various types of list, each representing different main criteria or
the same main criteria in a different order.
Activities
1. Enter the scope-of-list parameters and their designations.

2. For each parameter, choose Goto -> Ranking list content.
3. Define which main criteria are to be displayed and specify the order in which the
main criteria are to be shown.
4. Specify the line for the overall evaluation with the entry '_'.
MAIN CRITERIA DESCRIPTION SEQUENCE

Overall evaluation 1
51 ABC Price 2
52 ABC Quality 3
53 ABC Delivery 4
54 ABC Service 5
55 ABC Service 6
DEFINE PURCHASING ORGANISATION DATA FOR VENDOR EVALUATION

Purchasing Organisation Data for Vendor Evaluation
In this step, you define individual Vendor Evaluation System settings for each purchasing
organization
Maintain the following data:
In the process, please note that all parameters must be maintained in order for the system
to be able to compute scores.
Control parameters
On the detail screen for the purchasing organization, define:
 General parameters
o The best score that a vendor can achieve (applies to all subcriteria).
o The maximum number of days data may exist in the system and still be taken
into account in the vendor evaluation (applies to all subcriteria).
o The calendar used for the computation of on-time delivery performance and
adherence to the confirmation date.
o The form (layout set) used to generate the vendor evaluation sheet. If you
make no entry, the standard form MELDRUCK is used.
 Price level
o Indicator showing whether or not the vendor is the only source of a material.
 Complaints level
o Percentage that indicates the maximum percentage of the total volume of

business done with a certain vendor that the costs associated with
complaints regarding materials supplied (and/or rejection thereof) may
reach. If this percentage is exceeded, the vendor is awarded the lowest score.
 Quality audit
o Indicator showing whether the average score of all quality audits is to be

taken, or whether the result of the most recent audit is to be used in
computing scores.
 On-time delivery performance
o The delivery time variance that counts as 100%.
o The minimum delivery quantity.
o The indicator showing whether or not the minimum delivery percentage is

adopted from the material master record.
 Smoothing factors
The smoothing factors for:
o The delivery date variance and the quality and timeliness of an externally
performed service.
o The quantity variance.
o Compliance with shipping instructions.
Note
The parameters for the subcriterion "on-time delivery performance" are also applied to the
subcriterion "quantity reliability".
Evaluation criteria
Specify which main criteria apply to the purchasing organization and whether these may be
entered manually or changed after automatic determination. or each main criterion, define
the weighting of the subcriteria and specify whether they may be maintained manually.
Weighting
Define the composition of the weighting keys that are valid for this purchasing organization.
The weighting keys themselves are defined in the step Define Weighting Keys.
Points scores for automatic criteria
Here you define the scores for certain intervals of variances.
WEIGHTING KEY
POrg Wtg. key Cr Purch. org. descr. Short text Criterion Weightg.
2000 H1 51 Chennai Pur.Org. Equal weighting ABC Price 1

2000 H1 52 Chennai Pur.Org. Equal weighting ABC Quality 1
ABC
2000 H1 53 Chennai Pur.Org.. Equal weighting Delivery 1
2000 H1 54 Chennai Pur.Org. Equal weighting ABC Service 1
2000 H1 55 Chennai Pur.Org. Equal weighting ABC Service 1
Unequal
2000 H2 51 Chennai Pur.Org. weighting ABC Price 2
Unequal
2000 H2 52 Chennai Pur.Org. weighting ABC Quality 1
Unequal
2000 H2 53 Chennai Pur.Org. weighting ABCDelivery 2
Unequal
2000 H2 54 Chennai Pur.Org. weighting ABC Service 1
Unequal
2000 H2 55 Chennai Pur.Org. weighting ABC Service 1
POINTS SCORE FOR AUTOMATIC CRITERIA
SCORING
METHOD TEXT PERCENTAGE SCORE
2 Qty. reliability 100
2 Qty. reliability 2 95
2 Qty. reliability 99.9
2 Qty. reliability 1.0- 95
3 On-time del. 100
3 On-time del. 1 90
3 On-time del. 2 95
3 On-time del. 10 80
3 On-time del. 50 5
3 On-time del. 99.9 1
3 On-time del. 5.0- 95
3 On-time del. 10.0- 65
3 On-time del. 20.0- 75
3 On-time del. 30.0- 60
3 On-time del. 40.0- 40
3 On-time del. 50.0- 20
3 On-time del. 60.0- 5
3 On-time del. 99.9-
4 Price level 40
4 Price level 5 20
4 Price level 15 10
4 Price level 99.9 1
4 Price level 5.0- 50
5 Price behavior 40
5 Price behavior 5 20
5 Price behavior 10
5 Price behavior 5.0- 50
5 Price behavior 10.0- 100
B Adherence to confirmation date 2 90
B Adherence to confirmation date 2.0- 90
MAINTAIN DETAIL VALUES TO EACH PURCHASE ORGANISATION
Above all criteria & following Details are maintained for all purchasing Organisation as per
ABC requirement.
Be App Wt Da
st . Wt. g. te Mi
PO Purch. org. sco peri Sg./ QAu GR SF va Qty. Ship.i n. MinDel St.d.t.
rg descr. re od sole dit lots C r. var. nstr % QtyM var
10 Central Pur. 10
00 Org 0 180 X X 1 4 0.2 0.3 0.3 10 X 100
20 Chanderiya 10
00 Pur.Org. 0 180 X X 1 4 0.2 0.3 0.3 10 X 100
21 Debari Pur. 10
00 Org. 0 180 X X 1 4 0.2 0.3 0.3 10 X 100
22 Vizag Pur. 10 180 X X 1 4 0.2 0.3 0.3 10 X 100
00 Org. 0
30 Agucha Pur. 10
00 Org. 0 180 X X 1 4 0.2 0.3 0.3 10 X 100
31 Dariba Pur. 10
00 Org. 0 180 X X 1 4 0.2 0.3 0.3 10 X 100
32 Zawar Pur. 10
00 Org. 0 180 X X 1 4 0.2 0.3 0.3 10 X 100
EXTERNAL SERVICES MANAGEMENT
Following Setting are made to carry out procurement transactions involving external
services.
SERVICE MASTER
In this section, we make the system settings that are important for the service master
record.
DEFINE SERVICE CATEGORY
IMG Path: Material Management  External Service Management  Service Master

 Define Service Category
The service category is the most important criterion for structuring service master records.
It provides a default value for the valuation classes. Service master records can be assigned
to number ranges on the basis of the service category.
The service category has no control function in the running of the program.
Following Service Category are created as per ABC Requirement
SERVICE
CATEGORY ORG.SRVCAT ACC.REF. SERVICE CATEGORY REF.
SE01 AS03 6 Material Handling
SE02 AS03 6 Operation & Maintainance
SE03 AS03 6 Civil
SE04 AS03 6 Other Than Production
SE05 AS03 6 Miscellaneous
SE06 AS03 6 Colony work etc.
SERV AS03 6 Service: purchasing
IMG Path: Material Management  External Service Management  Service Master

 Define Number Ranges
Following Number Range is created for service master, which is, assign to service group ABC
– Service
Master
FROM TO STATUS EXT

1000000001 1999999999 0
DEFINE NUMBER RANGES FOR SERVICE ENTRY SHEET
IMG Path: Material Management  External Service Management  Number Ranges

 Define Number Ranges for Service Entry Sheet
In this step, you maintain the number ranges for service entry sheets.

01 1000000000 1999999999
DEFINE RELEASE PROCEDURE FOR SERVICE ENTRY SHEET

DEFINE CHARACTERISTIC
CHARACTERISTIC = RELEASE_SERVICE
IN ADDITIONAL TAB Enter following Detail.
Table Name : CESSR. Field Name : LWERT
DEFINE CLASS
CLASS NAME = RELEASE_SERVICE

CLASS TYPE = 032
Enter “RELEASE_SERVICE” Characteristic in Char. Tab. Of Class.
RELEASE GROUPS
IMG Path: Material Management  External Service Management  Define Release

Procedure for Service Entry Sheet  Release Groups
Enter Following Data in Define Release Groups option
REL.GRP REL.OBJECT CLASS DESCRIPTION

S1 3 RELEASE_SERVICE
RELEASE CODES

Procedure for Service Entry Sheet  Release Codes
Following Release Codes are created for service entry sheet release procedure.
GROUP CODE DESCRIPTION

S1 S1 INITIATOR
S1 S2 RECOMMENDER
S1 S3 APPROVER
RELEASE INDICATOR

Procedure for Service Entry Sheet  Release Indicator
Following Indicator created as “A” for Not Accepted & “B” as Accepted.
RELEASE STRATEGIES

Procedure for Service Entry Sheet  Release Strategies
Following Release Strategies Created as per ABC Requirement.
Release Group S1
Release Strategy S1 SERVICE REL. PROC.
Assign Release Code Created for Service Entry Sheet release procedure.
Enter Following Data in Classification Button.
Value of Service = 5000 INR.

INVENTORY MANAGEMENT AND PHYSICAL INVENTORY

PLANT PARAMETERS
IMG Path: Material Management  Inventory Management and Physical Inventory 

Plant Parameters
In this step, you make the general plant settings for Inventory Management.
Following Setting are made for all the ABC Plants.

NUMBER ASSIGNMENT
DEFINE NUMBER ASSIGNMENT FOR ACCOUNT DOCUMENTS

Number Assignment  Define Number Assignment for Accounting
Documents
In this step, you set the number ranges for the accounting documents which are created
when goods movements or inventory differences are posted.
 Accounting documents in inventory management
For accounting-relevant goods movements, the system creates two different

documents:
o Material Document
o Accounting Document
Both the material documents and the accounting documents have their own
document numbers. When inventory differences are posted, the system also creates
an accounting document for the physical inventory document. In this step, you only
maintain the number assignment for accounting documents.
 Document types
Accounting documents are split into document types to allow differentiated

document number assignment, which is the basis for distinguishing between the
various accounting operations. A number range is assigned to each document type.
In a company code, you have to define number intervals for each number range and
fiscal year.
In inventory management, the transaction determines which document type is used.
Activities
We have to add new document types to satisfy your requirements:

A. Define a new document type under Financial accounting document.
B. Types.
C. Assign a number range to the document type.
D. Under Financial accounting number ranges, define the year-related number intervals
for the given number range in your company code. If you do not want to use the
year-related number assignment method, enter 9999 in the Year field.
E. Under Allocate document type to transaction, assign the relevant document type to
the
F. Transaction codes of inventory management.
Document type PR (revaluation documents) is already assigned.

GOODS ISSUE DOCUMENT TYPE

Documents  Goods Issue Document Type
Following Goods Issue Document Types are assigned to Transaction Code
TCODE TRASCATION TEXT DOC.TYPE DESCRIPTION

MB05 Subseq. Adjust: Act. Ingredient Mat WE Goods receipt
MB11 Goods Movement WA Goods issue
MB1A Goods Withdrawal WA Goods issue
MB1B Transfer Posting WA Goods issue
MB26 Picking list WA Goods issue
MBSU Place in Stor.for Mat.Doc: Init.Scrn
MIGO_GI Goods Movement WA Goods issue
MIGO_T
R Transfer Posting WA Goods issue
GOODS RECEIPT DOCUMENT TYPE

Documents  Goods Receipt Document Type
Following Goods Receipt Document Types are assigned to Transaction Code

MB01 Post Goods Receipt for PO WE Goods receipt
MB04 Subsequ.Adj.of "Mat.Provided"Consmp. WE Goods receipt
MB0A Post Goods Receipt for PO WE Goods receipt
MB1C Other Goods Receipts WA Goods issue
MB31 Goods Receipt for Production Order WE Goods receipt
MBNL Subsequent Delivery f. Material Doc.
MBRL Return Delivery for Matl Document
MBSF Release Blocked Stock via Mat. Doc. WE Goods receipt
MBSL Copy Material Document
MBST Cancel Material Document
MIGO_G
O Goods Movement WE Goods receipt
MIGO_GR Goods Movement WE Goods receipt
MIGO_GS Subseq. Adjust. of Material Provided WE Goods receipt
PHYSICAL INVENTORY DOCUMENT TYPE

Documents  Physical Inventory Document Type
Following Physical Inventory Document Types are assigned to Transaction Code

MI07 Process List of Differences WI Inventory document
MI08 Create List of Differences with Doc. WI Inventory document
MI10 Create List of Differences w/o Doc. WI Inventory document
PHYSICAL INVENTORY DOCUMENT TYPE

Number Assignment  Define Number Assignment for Material and
Physical Documents
GOODS ISSUE / TRANSFER POSTING
In this section, we make the system settings for the following Goods Movements:
 Goods issues
 Transfer postings
 Other movements excluding goods receipts (for example, Inventory Difference

Postings)
CREATE STORAGE LOCATION AUTOMATICALLY

Goods Issue / Transfer Posting  Create Storage Location Automatically
In this step, you specify whether the automatic creation of storage location data is allowed
for goods issues and transfer postings. This is advisable if you work with negative stocks and
a material's first movement may be an outward movement.
Note that the reversal movement for a goods issue, for example, movement type 202 or
262, is not considered as an issue but as a receipt. If you only use the automatic creation of
storage location data for reversals of goods issues, you do not have to allow negative stocks.
You have to allow automatic creation per plant first of all. You then have to explicitly allow
the creation of storage location data for each movement type. The storage location data is
only created if the quantity is posted to 'standard' storage location stock. It is not created
for receipts into a special stock (for example, into sales order stock).
Activities
1. Enter for each plant whether the automatic creation of storage location data is
generally allowed.
2. Specify the movement types for which storage location data is created
automatically.
Remove Tik Against all the ABC Plant, as No automatic Storage Creation allowed in ABC as
per requirement
Plant Setting
Movement Type Settings

ALLOW NEGATIVE STOCKS

Goods Issue / Transfer Posting  Create Storage Location Automatically
In this step, you specify whether negative stocks are allowed for unrestricted-use stock in
the valuation area, in the plant, and in the storage location.
Negative stocks are necessary, for example, when goods issues are entered for
organizational reasons prior to the corresponding goods receipts and the material is already
physically located in the warehouse.
Once the goods receipts have been posted, the book inventory balance must again
correspond to the physical stock, that is, the book inventory balance may no longer be
negative.
Negative stocks are always a sign that physical movements must be be entered in the
system at a later stage.
ACTIVITIES
Remove Tik against all the ABC Plant & its respective storage location as No Negative
Stock Allowed in ABC, as per their requirement.
PLANT SETTING STORAGE LOCATION SETTING
GOODS RECEIPT
In this section, you complete the system settings for the following goods movements:
 goods receipt with reference to a purchase order or production order
 goods receipt without reference
 other receipts (initial entry of stock balances, stock transfer)

SET TOLERANCE LIMIT
In this step, you set the tolerance limits for goods receipts.
When processing a goods receipt, the system checks each item to determine whether the
goods receipt varies from the purchase order or the material master data. The different
types of variances are defined by tolerance keys. For each tolerance key, tolerance limits
can be set per company code.
The following variances are checked in Inventory Management:
 Variance in the purchase order price quantity
For this variance, two tolerance keys are provided:
o Tolerance key B1 (error message)
You use tolerance key B1 to define the maximum percentage variance. If the
variance is greater than the maximum variance, the system creates an error
message. The user cannot post the goods receipt.
o Tolerance key B2 (warning message)
Tolerance key B2 defines the percentage variance from which a warning

message is to be issued. It is possible to post the goods receipt.
 Variance for the moving average price of the material
You use tolerance key VP to define the percentage variance from which a warning
message is issued. This warning message indicates a price change.
Following Tolerance Keys are defined as per ABC Requirement
COMP.COD
E NAME TOL.KEY DESCRIPTION
1000 ABC Limited B1 Order price qty variance (GR)/E-
MSG
Order price qty variance (GR)/W-
1000 ABC Limited B2 MSG
1000 ABC Limited VP Moving average price variance

Goods Receipt  Create Storage Location Automatically
Detail found in Goods Issue / Transfer Posting Topic
Remove Tik against all the ABC Plants & movement Type as per ABC requirement.
CREATE PURCHASE ORDER AUTOMATICALLY

Goods Receipt  Create Purchase Order Automatically
In this step, you define for each movement type whether a purchase order is automatically
created when a goods receipt is posted. When it is, the user can enter a goods movement
without entering the purchase order number, using the Goods receipt for purchase order
function. The system valuates the goods receipt at the price defined in the purchasing info
record.
Requirements
In Customizing for organizational structure, the plant must be assigned a purchasing

organization in the step Standard purchasing organization - assign plant so that the system
can determine the purchasing info records.
Activities
Maintain the indicator for the required movement types. You can only use the movement
types that are used for entering goods receipts for purchase orders: Movement types 101
and 161). Movements to GR blocked stock are not possible using this function.
MAINTAIN COPY RULES FOR REFERENCE DOCUMENT

Goods Receipt  Maintain Copy Rules for Reference Document
In this step, you configure whether the items of the reference document are proposed as
selected on the item selection list when entering a document with reference, or not. The
user can delete the check marks manually on the item selection list if she/he does not want
to adopt some items.
Tik Check box against all the Transaction code
SET “DELIVERY COMPLETED” INDICATOR

Goods Receipt  Set “Delivery Completed” Indicator
In this step, you can define that the SAP System automatically suggests the delivery-
completed indicator for goods receipts if the delivered quantity lies within the under/over
delivery tolerance.
The "Delivery Completed" indicator has the following effects:
 The item is regarded as closed, even if the total quantity was not delivered.
 A further delivery is not expected, may, however, arrive.
 In the next goods receipt, the item appears on the selection list but has no selection
indicator.
 The item can be reorganized even if the total quantity has not been delivered.
Select Tik against all the plant as per ABC Requirement.

FOR GR-BASED IV, REVERSAL OF GR DESPITE INVOICE

Goods Receipt  For GR-Based IV, Reversal
In this step, you specify for each movement type whether, with GR-based invoice
verification, a reversal with reference to the purchase order or a return delivery can be
entered, even if the invoice relating to the goods receipt document has already been
posted. If reversals are not allowed, you must cancel the invoice before you enter the
reversal of the goods receipt or the return delivery. If reversals are allowed, you can post
the material document and enter cancel the invoice at a later time. If you do not wish to
cancel the invoice, you can enter the goods receipt with reference to the reversal document
or the return delivery, so that the reference to the invoice continues to exist.
Remove Tik against Reversal Movement Type as per ABC Requirement

PRICE DIFFERENCES FOR SUB CONTRACT AT GOODS RECEIPT

Goods Receipt  Price Differences for Sub Contract at Goods Receipt
In this step, you configure for each valuation area whether price differences are generated
for a subcontract order at the time of a goods receipt if the manufactured material is
managed at standard price and the standard price varies from the receipt value (externally
performed service + value of components + delivery costs).
Example
Finished product: 400 (value at standard price)
Subcontract order:
 Ext. service: 250
 Components: 100
Posting schema without price differences:
Stock account ZFGS : 400 +

Stock change : 400 -
GR/IR clearing acct : 250 -
External service acct : 250 +
Component Stock Account : 100 -
Consumption account : 100 +
Posting schema with price differences:
Stock account ZFGS : 400 +

Stock change : 350 -
Price difference : 50 -
GR/IR clearing acct : 250 -
External service acct : 250 +
Component stock account : 100 -
Consumption account : 100 +
Remove Tik Against All The Valuation Area as per ABC Requirement.
AUTOMATIC MOVEMENTS
In this section, you make the system settings for goods movements that are posted
automatically.
Examples:
 Goods issue for a delivery via Shipping
 Goods movements for repetitive manufacturing
 Inventory adjustment postings in Inventory Management
 Status changes of batches
Here, you can only set those movements, which cannot be entered manually in Inventory
Management.
Caution
Please note that the automatic movements are not divided into goods receipts and goods
issues/transfer postings. This means that not all valid settings are suitable for all movement
types.

Automatic Movement  Create Storage Location Automatically
Detail found in Goods Issue / Transfer Posting Topic
GENERATE PHYSICAL INVENTORY DOCUMENTS FOR GOODS MOVEMENTS

Automatic Movement  Generate Physical Inventory Documents For
Goods Movements
In this step, you define for each plant and movement type whether a physical inventory
document is created automatically when a goods movement is posted. In conjunction with
automatic movements, please also note that this indicator is not set for goods movements
which are created from within a physical inventory since, in this case, the physical inventory
document already exists. This applies to movement types 701 to 708.
Assign Transaction / Event Type Against Each plant.
TRAN/EVENT
PLANT TYPE
1000 WV
2000 WV
2100 WV
2200 WV
3000 WV
3100 WV
3200 WV
4100 WV
4200 WV
4300 WV
4400 WV
4500 WV
RESERVATION
DEFINE DEFAULT VALUE

Reservation  Define Default Value
In this step, you specify the default values for the following functions for each plant:
 Allow goods movements for reservations

 Delete reservations
 Create storage-location stock data automatically for reservations
 Allow movements for reservations
You can only post a goods movement with reference to a reservation if the Movement
allowed indicator is set in the reservation item. You set this indicator as described below:
o When Creating the Reservation

In so doing, goods movements involving this reservation are immediately

allowed. In this step, you can define whether the indicator is to appear as a
default value or not.
o When making a manual change to the reservation

o Through the reservations management program
In this step, you can define a limit specifying for how long movements are
allowed. The management program sets the Movement allowed indicator for
all reservation items whose requirements date lies within this limit.
 Delete reservations
The management program sets the deletion indicator for reservation items whose
requirements date is earlier than the number of days specified here.
 Create storage-location stock data automatically for reservations
When this indicator is set, the storage-location stock data is automatically created
when a reservation is posted. This applies both to planned outward movements and
planned receipts.
PHYSICAL INVENTORY
DEFAULT VALUES FOR PHYSICAL INVENTORY

Physical Inventory  Default Values for Physical Inventory
In this step, you specify the following default values for physical inventory for each plant:
Presetting for entering physical inventory documents
 The stock type (unrestricted-use, in quality inspection, blocked)

 The indicator for batch determination (in the foreground or in the background)
 the unit of entry (stock keeping unit or unit of issue)
These indicators are suggested as default values when you enter a physical inventory
document. But you can also change them there.
Presetting for entering physical inventory documents
 Reason for inventory difference

The default value you specify here is only displayed when you enter an inventory difference
without reference to the corresponding document. But you can also change the default
value here. Following Customization Setting Done for Default Values for Physical Inventory
Plnt Name 1 STy Stock type Ba.b. AUn Reason

1000 Head Office 1 Warehouse X X
Chanderia Lead & Zinc
2000 Smelter 1 Warehouse X X
2100 Zinc Smelter Debari 1 Warehouse X X
2200 Vizag Zinc Lead Smelter 1 Warehouse X X
3000 Rampura Agucha Mines 1 Warehouse X X
3100 Rajpura Dariba Mines. 1 Warehouse X X
3200 Zawar Mines. 1 Warehouse X X
4100 Chandigarh Stock Point. 1 Warehouse X X
4200 Hissar Stock Point 1 Warehouse X X
4300 Faridabad Stock Point 1 Warehouse X X
4400 Sahibabad Stock Point 1 Warehouse X X
4500 Jalandhar Stock Point 1 Warehouse X X
5000 Marketing HO, Regional Office 1 Warehouse X X
5100 Kalamboli Stock Point 1 Warehouse X X
5200 Nagpur Stock Point 1 Warehouse X X
5300 Kandla Port Stock Point / Sale 1 Warehouse X X
6000 Kolkata Stock Point 1 Warehouse X X
6100 Kolkata Stock Point 1 Warehouse X X
6200 Jamshedpur Stock Point 1 Warehouse X X
7100 Bangalore Stock Point 1 Warehouse X X
7200 Hyderabad Stock Point 1 Warehouse X X
7300 Pondicherry Stock Point 1 Warehouse X X
7400 Chennai Stock Point 1 Warehouse X X
ALLOW FREEZING OF BOOK INVENTORY BALANCE IN STORAGE LOCATION

Physical Inventory  Allow Freezing of Book Inventory Balance in Storage
Location
In this step, you determine whether the book inventory balances of items in a physical
inventory document, which have not yet been counted, can be frozen in the storage
location. The frozen inventory balance is recorded in the physical inventory document. It is
relevant to calculating inventory differences.
Example
You have physically counted all items in a physical inventory document, but have not yet
entered the count results in the system for all items. For one of these items, the book
inventory balance is 100 pieces. 90 pieces were counted, corresponding to a difference of 10
pieces. You freeze the book inventory balance of 100 pieces in the physical inventory
document. Before you enter the count, a goods receipt of 20 pieces is posted. The current
book inventory balance is now 120 pieces. For the physical inventory document, however,
the book inventory balance of 100 pieces continues to be relevant. If the inventory balance
had not been frozen, there would have been a difference of 30 pieces for the item.
Select The Plant & Tik all the Storage Location for Freezing Book Inventory balance in
storage Location
DEFINE TOLERANCES FOR PHYSICAL INVENTORY DIFFERENCES

Physical Inventory  Define Tolerance for Physical Inventory Differences
In this step, you create user groups and define value tolerances for these user groups for the
posting of inventory differences.
You can specify two tolerances:
 Maximum amount per physical inventory document

 Maximum amount per document item
If a document exceeds the document tolerance defined for the user group, the user is not
allowed to post any inventory differences for this document. If the total value of the
document lies below the document tolerance but some items exceed the maximum amount
per item, the user may not post the differences for these items. He or she can process the
other items.
Activities
 Under Physical inventory tolerance group, you define the individual user groups with
the corresponding value tolerances per company code and currency.
 Under User name, you assign the individual users to a group. If you want to assign an
inventory tolerance group to all existing users, you can enter * instead of having to
enter the users individually.
Physical Inventory Tolerance Group
Enter Following Physical tolerance group : 0001 & Company Code : 1000
USER NAME
Make entry with user name * & Tolerance Group 0001
CYCLE COUNTING

Physical Inventory  Cycle Counting
In this step, you complete the system settings for the physical inventory method of cycle
counting by defining the individual cycle counting indicators for the given plant. The cycle
counting indicators are used to group the materials together into individual categories.
Normally, the cycle counting indicators are assigned when an ABC analysis is run. However,
different indicators can be defined, if necessary.
Activities
1. Define the allowed cycle counting indicators in the plant.

2. Make the required settings for each indicator.
Remember that the total of the percentages must be 100 if you want to assign the
indicator to the individual materials as part of an ABC analysis.
No. of phys. inventories per fiscal year for cycle counting

Specifies how often during the fiscal year a physical inventory is to be carried out for a
material subject to cycle counting. The system uses this specification to convert the count
interval into workdays.
Physical inventory interval (in workdays) for cycle counting
Specifies after how many workdays following the last inventory count another physical
inventory has to be carried out for a given material. The count interval is determined
automatically on the basis of the number of physical inventories specified for the fiscal year
Float time (in workdays) for cycle counting
Indicates the number of workdays by which the planned count date may vary from the
current date.
Examples
For the plant, the float time is five days. A physical inventory has been planned for a
material belonging to category C for June, 1. On expiration of the float time (after June, 6),
the physical inventory has not yet been carried out. Irrespective of the category, the
material is parked for the next cycle counting run.
Percentage of performance measure for cycle counting ind.
Specifies the percentage allocation of the materials to the individual cycle counting
categories.
The percentage value is used for automatic assignment of the cycle counting indicator.
Following Parameter set against all the ABC Plant.
CC PHY NO. FLOT

PLANT IND PHY INV INTERVAL TIME PERCENTAGE
1000 C 3 82 20 14
1000 D 1 247 2
2000 A 12 21 5 56
2000 B 6 42 10 28
2000 C 3 84 20 14
2000 D 1 254 2
2100 A 12 21 5 56
2100 B 6 42 10 28
2100 C 3 84 20 14
2100 D 1 254 2
2200 A 12 21 5 56
2200 B 6 42 10 28
2200 C 3 84 20 14
2200 D 1 254 2
3000 A 12 21 5 56
3000 B 6 42 10 28
3000 C 3 84 20 14
3100 A 12 21 5 56
3100 B 6 42 10 28
3100 C 3 84 20 14
3100 D 1 254 2
3200 A 12 21 5 56
3200 B 6 42 10 28
3200 C 3 84 20 14
3200 D 1 254 2
MOVEMENT TYPE
COPY CHANGE MOVEMENT TYPE

Movement Type  Copy Change Movement Type
 Change the setting of existing movement types

 Define new movement types
When you enter a goods Movement, you must always enter the movement type. The
movement type has important control functions in Inventory Management. It is essential for
 Updating the quantity fields

 Updating the stock and consumption accounts
 Selection of the fields used for entering documents
 Printing goods receipt/issue slips
Movement types have an important control function. In particular, they play a major role in
updating the stock quantity and stock value in the material master record. Changing some of
the indicators (such as the quantity string or value string) is considered a modification.
Please note that update errors resulting from incorrect settings for a movement type are
modification-based errors and as such cannot be corrected by the SAP Hotline.
ACCOUN
T
MOVEMEN MODIFIR
T TYPE DESCRIPTION E
Rcpt w/o PO -
951 DEBARI GBB ZDE
952 RE rcpt - DEBARI GBB ZDE
953 Rcpt w/o PO - VIZAG GBB ZVZ
954 RE rcpt - VIZAG GBB ZVZ
Rcpt w/o PO -
955 ZAWAR GBB ZZA
956 RE rcpt - - ZAWAR GBB ZZA
957 Rcpt w/o PO - GBB ZDA
DARIBA
958 RE rcpt - DARIBA GBB ZDA
971 Goods Iss - DEBARI GBB YDE
RE-Goods Iss -
972 DEBAR GBB YDE
973 Goods Iss - - VIZAG GBB YVZ
974 RE-Goods Iss - VIZAG GBB YVZ
975 Goods Iss - ZAWAR GBB YZA
RE-Goods Iss -
976 ZAWAR GBB YZA
977 Goods Iss - DARIBA GBB YDA
RE-Goods Iss-
978 DARIBA GBB YDA
VALUATION AND ACCOUNT ASSIGNMENT
In this section, you make the system settings required for the following areas:
 Material Valuation
 Link between Materials Management and Financial Accounting
DEFINE PRICE CONTROL FOR MATERIAL TYPE
IMG Path: Material Management  Valuation and Account Assignment  Define

Price Control for Material Types
There are two types of price control:
 V moving average price/ periodic unit price

 S standard price
For each material, you must specify the price control in the material master record
according to which the material is to be valuated. You do so using the price control
indicator. Under the menu option "Price control", you can specify for each material type
that, when creating a material of this material type, a certain price control indicator is
proposed, stipulated
Following Price Control Set against HZL Material Types.
PRICE
PRICE CTRL
MATERIA CONTRO MANDA
L TYPE DESCRIPTION L T
ABC-Nonvaluated
ZNVS Stockable
ZPCK ABC-Packing Material V
ZPRW ABC-Process Waste
ZROH ABC-Raw Materials
ZSCR ABC-Scrap
ZSER ABC-Servicable Items
ZSFG ABC-Semi-Finished goods S
ZSPR ABC-Stores and Spares V
SPLIT VALUATION
Split valuation enables us to valuate sub stocks of a material in different ways (for example,
according to external procurement or in-house production or by batches or imported or
local ect).
ACTIVATE SPLIT VALUATION
IMG Path: Material Management  Valuation and Account Assignment  Split

Valuation  Activate Split Valuation
In this step, you configure whether split valuation is allowed at your company. If you
generally allow split valuation, this does not mean that you must valuate each material on
this basis. You decide whether to do so or not for a particular material when creating the
material master record.
A lot of effort is required to change this setting once it has been made.
Actions for changing split material valuation
To change split material valuation once it has been set, you must
1. First post out all stocks (for example, to a cost center or with movement type 562)
2. Then change the control parameters
3. If necessary, change the automatic account determination
4. Finally post the stocks back in again
CONFIGURE SPLIT VALUATION
IMG Path: Material Management  Valuation and Account Assignment  Split

Valuation  Configure Split Valuation
In split valuation, you can distinguish between partial stocks of a material according to
certain criteria and valuate them separately. The material stock is divided according to
valuation category and valuation type:
 The valuation category determines how the partial stocks are divided, that is,
according to which criteria.
 The valuation type describes the characteristics of the individual stocks.
With the function "Setting" you can determine:
 Which valuation categories exist in your company (global categories)

 Which valuation types exist in your company (global types)
 Which valuation types belong to which valuation category
 Which valuation categories exist in a valuation area (local categories)
GLOBAL TYPE
Following Global Types are created as per HZL Requirement.
IMPORTED 2 0 0001 Reference for raw materials

LOCAL 2 0 0001 Reference for raw materials
NEW 2 2 0001 Reference for raw materials
REFURB 2 2 0001 Reference for raw materials
DAMAGE 2 2 0001 Reference for raw materials
GLOBAL CATEGORY
Following Global Category used in ABC as per Requirement.

H = Origin
S = NEW/REFURB/DAM
Click on Types -> Category Button & activate Required Valuation Type.
Select Item Category H & Click on Type ->Category Button, Select “IMPORTED” , “LOCAL”
Valuation type & click on ACTIVATE button.
LOCAL DEFINATION
Select the plant & click on CAT -> OU button & activate required item category.
Click on LOCAL TYPE Button.

ACCOUNT DETERMINATION
In this section, you make the configurations relevant to transactions in Inventory

Management (for example, goods movements ) and in Invoice Verification (for example,
invoice receipt for automatic postings to G/L accounts in Financial Accounting and Cost
Accounting).
You must make these configurations only in conjunction with your Financial Accounting
department.
DEFINE VALUATION CONTROL
IMG Path: Material Management  Valuation and Account Assignment  Account

Determination  Account Determination without wizard  Define Price
Control
For account determination, you can group together valuation areas by activating the
valuation grouping code. This makes the configuration of automatic postings much easier.
GROUP TOGETHER VALUATION AREA

Determination  Account Determination without wizard  Group
together Valuation Area
In this step, you assign valuation areas to a valuation grouping code. The valuation grouping
code makes it easier to set automatic account determination. Within the chart of accounts,
you assign the same valuation grouping code to the valuation areas you want to assign to
the same account. Valuation grouping codes either reflect a fine distinction within a chart of
accounts or they correspond to a chart of accounts.
Within a chart of accounts, you can use the valuation grouping code
 To define individual account determination for certain valuation areas (company

codes or plants)
 To define common account determination for several valuation areas (company
codes or plants)
Following Valuation Area are group together with val. group code 1000
VALUATION COMPANY CHART VAL.GROUP

AREA CODE NAME OF A/C CODE
1000 1000 ABC Limited 1000 1000
2000 1000 ABC Limited 1000 1000
2100 1000 ABC Limited 1000 1000
2200 1000 ABC Limited 1000 1000
3000 1000 ABC Limited 1000 1000
3100 1000 ABC Limited 1000 1000
3200 1000 ABC Limited 1000 1000
4100 1000 ABC Limited 1000 1000
4200 1000 ABC Limited 1000 1000
4300 1000 ABC Limited 1000 1000
4400 1000 ABC Limited 1000 1000
4500 1000 ABC Limited 1000 1000
5000 1000 ABC Limited 1000 1000
5100 1000 ABC Limited 1000 1000
5200 1000 ABC Limited 1000 1000
5300 1000 ABC Limited 1000 1000
6000 1000 ABC Limited 1000 1000
6100 1000 ABC Limited 1000 1000
6200 1000 ABC Limited 1000 1000
7100 1000 ABC Limited 1000 1000
7200 1000 ABC Limited 1000 1000
7300 1000 ABC Limited 1000 1000
7400 1000 ABC Limited 1000 1000
DEFINE VALUATION CLASS

Determination  Account Determination without wizard  Define
Valuation Class
In this step, you define which valuation classes are allowed for a material type. If a user
creates a material, he must enter the material's valuation class in the accounting data. The
System uses default settings to check whether the valuation class is allowed for the material
type.
The valuation class is a group of materials with the same account determination. If a
transaction is to be posted to different accounts depending on the valuation class, create an
account determination for each valuation class in the step Create automatic postings. The
valuation classes allowed depend on the material type. Several valuation classes are
generally allowed for one material type. A valuation class can also be allowed for several
material types. The link between the valuation classes and the material types is set up via
the account category reference. The account category reference is a combination of
valuation classes. Precisely one account category reference is assigned to a material type.
ACCOUNT CATEGORY REFERENCE

Following Account category created as per ABC requirement.
VALUATION CLASS
Following Valuation Classes are defined as per ABC Requirement.
VALAUTIO ACC.RE
N CLASS DESCRIPTION F DESCRIPTION
Raw Materials Reference for raw

3000 Indigenous 0001 materials
Reference for raw
3001 Raw Materials Imported 0001 materials
Reference for raw
3002 Raw materials (Ore) 0001 materials
Zinc Concentrates- Reference for raw
3003 Indigen 0001 materials
Lead Concentrates- Reference for raw
3004 Indigen 0001 materials
Reference for raw
3005 Raw Material Others 0001 materials
Zinc Concentrates- Reference for raw
3006 Importe 0001 materials
Lead Concentrates- Reference for raw
3007 Importe 0001 materials
3030 NOT TO BE USED 0002 Ref. for operating supplies
3031 NOT TO BE USED 0002 Ref. for operating supplies
Reference for raw

3040 Stores & Chem (Ind) 0001 materials
Reference for raw
3041 Stores & Chem (Imp) 0001 materials
Reference for raw
3042 STR-Coke Imported 0001 materials
Reference for raw
3043 STR-Coke Indigenous 0001 materials
Reference for raw
3044 NOT TO BE USED 0001 materials
Reference for raw
3045 STR-NOT TO BE USED 0001 materials
Reference for raw
3046 STR-Electrical Ind 0001 materials
Reference for raw
3047 STR-Mechanical Ind 0001 materials
Reference for raw
3048 STR-Civil Ind 0001 materials
Reference for raw
3049 STR-Instrument Ind 0001 materials
Reference for raw
3050 STR-Retractory Ind 0001 materials
Reference for raw
3051 STR-Electrical Imp 0001 materials
Reference for raw
3052 STR-Mechanical Imp 0001 materials
Reference for raw
3053 STR-Civil Imp 0001 materials
Reference for raw
3054 STR-Instrument Imp 0001 materials
Reference for raw
3055 STR-Retractory Imp 0001 materials
Reference for raw
3056 STR-Repair Others Ind 0001 materials
Reference for raw
3057 STR-Repair Others Imp 0001 materials
Reference for raw
3058 STR-Replacement Anode 0001 materials
STR-Replacement Reference for raw
3059 Cathode 0001 materials
Reference for raw
3060 STR-Petroleum Products 0001 materials
STR-Safety & Fire Reference for raw
3061 Fighting 0001 materials
Reference for raw
3062 STR-Social Welfare 0001 materials
Reference for raw

3063 STR-Consumable 0001 materials
Reference for trading
3100 NOT TO BE USED 0005 goods
3200 AMC-Services 0006 Reference for services
3201 External Labour Services 0006 Reference for services
3202 Other Services 0006 Reference for services
Ref. For onvaluated
3300 Nonvaluated material 0007 material
3400 Scrap Material 0010 Scrap
3500 Packing Material (Ind) 0004 Reference for packaging
3501 Packing Material (Imp) 0004 Reference for packaging
Reference for raw
7900 Semifinished ZINC 0001 materials
Reference for raw
7901 Semifinished LEAD 0001 materials
Reference for raw
7902 Semifinished SILVER 0001 materials
Reference for raw
7903 Semifinished CADMIUM 0001 materials
Reference for raw
7904 Semifinished COPPER 0001 materials
Reference for raw
7905 Semifinished OTHER 0001 materials
Reference for raw
7920 ZINC – Finished Goods 0001 materials
Reference for raw
7921 LEAD-Finished Goods 0001 materials
Reference for raw
7922 Tolling-Finished Goods 0001 materials
Reference for raw
7923 SULPHURIC ACID – FG 0001 materials
MATERIAL TYPE ACCOUNT CATEGORY REFERENCE
Following Account Category Reference assigned to ABC material type.
MAT.TYP ACC.RE
E DESCRIPTION F DESCRIPTION
ABC-Nonvaluated
ZFGS Stockable 0001 Reference for raw materials
ZNVS ABC-Packing Material 0007 Ref. For Nonvaluated
material
ZPCK ABC-Process Waste 0004 Reference for packaging
Ref. For Nonvaluated
ZPRW ABC-Raw Materials 0007 material
ZROH ABC-Scrap 0001 Reference for raw materials
ZSCR ABC-Serviceable Items 0010 Scrap
ZSER ABC-Semi-Finished goods 0003 Reference for spare parts
ZSFG ABC-Stores and Spares 0001 Reference for raw materials
ZSPR 0001 Reference for raw materials
CONFIGURE AUTOMATIC POSTING

Determination  Account Determination without wizard  Configure
Automatic Posting
In this step, you enter the system settings for Inventory Management and Invoice
Verification transactions for automatic postings to G/L accounts. Postings are made to G/L
accounts automatically in the case of Invoice Verification and Inventory Management
transactions relevant to Financial and Cost Accounting
TRANSACTION = AUM Expense/revenue from stock transfer
This transaction is used for transfer postings from one material to another if the complete
value of the issuing material cannot be posted to the value of the receiving material. This
applies both to materials with standard price control and to materials with moving average
price control. Price differences can arise for materials with moving average price if stock
levels are negative and the stock value becomes unrealistic as a result of the posting.
Transaction AUM can be used irrespective of whether the transfer posting involves a
transfer between plants. The expenditure/income is added to the receiving material.
Following G/L Accounts are Assign as per ABC Requirement.
DEBIT CREDIT
732150 732150
TRANSACTION = BSV Change in stock account
Changes in stocks are posted in Inventory Management at the time goods receipts are
recorded or subsequent adjustments made with regard to subcontract orders. If the account
assigned here is defined as a cost element, you must specify a preliminary account
assignment for the account in the table of automatic account assignment specification
(Customizing for Controlling) in order to be able to post goods receipts against subcontract
orders. In the standard system, cost center SC-1 is defined for this purpose.
VALUATION ACCOUNT
CLASS
3040 732150
3041 732150
3046 732150
3047 732150
3048 732150
3049 732150
3050 732150
7922 732150
TRANSACTION = BSX Inventory posting
This transaction is used for all postings to stock accounts. Such postings are effected, for
example:
In inventory management in the case of goods receipts to own stock and goods issues from
own stock
In invoice verification, if price differences occur in connection with incoming invoices for
materials valuated at moving average price and there is adequate stock coverage. In order
settlement, if the order is assigned to a material with moving average price and the actual
costs at the time of settlement vary from the actual costs at the time of goods receipt
Because this transaction is dependent on the valuation class, it is possible to manage
materials with different valuation classes in separate stock accounts.
Caution
Take care to ensure that:
A stock account is not used for any transaction other than BSX
Postings are not made to the account manually.
The account is not changed in the productive system before all stock has been booked out
of it
Otherwise differences would arise between the total stock value of the material master
records and the balance on the stock account.
VALUATION
CLASS ACCOUNT
3000 421100
3001 421200
3002 421110
3003 421100
3004 421100
3006 421200
3007 421200
3040 424100
3041 424200
3042 424200
3043 424100
3045 424100
3046 424100
3047 424100
3048 424100
3049 424100
3050 424100
3051 424200
3052 424200
3053 424200
3054 424200
3055 424200
3056 424100
3057 424200
3058 424100
3059 424100
3060 424100
3061 424100
3062 424100
3063 424100
3100 426600
3200 424100
3201 424100
3202 424100
3400 425100
3500 426100
3501 426200
7900 422600
7901 422600
7902 422600
7903 422600
7904 422600
7905 422600
7920 423100
7921 423100
7922 423200
7923 423100
TRANSACTION = DIF Materials Management Small Differences
This transaction is used in Invoice Verification if you define a tolerance for minor differences
and the balance of an invoice does not exceed the tolerance.
DEBIT CREDIT
839510 839510
TRANSACTION = FR1 Freight clearing
These transactions are used to post delivery costs (incidental procurement costs) in the case
of goods receipts against purchase orders and incoming invoices. Which transaction is used
for which delivery costs depend on the condition types defined in the purchase order. You
can also enter your own transactions for delivery costs in condition types.
DEBIT CREDIT
212710 212710
TRANSACTION = FR3 Customs clearing

DEBIT CREDIT
212720 212720
TRANSACTION = FR5 CVD
DEBIT CREDIT
212730 212730
TRANSACTION = FRL External activity
The transaction is used for goods and invoice receipts in connection with subcontract
orders.
VALUATION ACCOUNT
CLASS
3003 732150
3040 732150
3041 732150
3046 732150
3047 732150
3048 732150
3049 732150
3050 732150
7922 732150
TRANSACTION = FRN Incidental costs of external activities
This transaction is used for delivery costs (incidental costs of procurement) in connection
with subcontract orders.
VALUATIO
N CLASS ACCOUNT
3003 732150
3040 732150
3041 732150
3046 732150
3047 732150
3048 732150
3049 732150
3050 732150
7922 732150
TRANSACTION = GBB Offsetting entry for inventory posting
Offsetting entries for stock postings are used in Inventory Management. They are
dependent on the account grouping to which each movement type is assigned. The
following account groupings are defined in the standard system:
GBB – AUA For Order Settlement
GENERAL VALUATION
MODIFICATION CLASS ACCOUNT
AUA 3400 718250
AUA 7900 718350

AUA 7901 718370
AUA 7902 718350
AUA 7903 718350
AUA 7904 718350
AUA 7905 718350
AUA 7920 718100
AUA 7921 718110
AUA 7922 718120
AUA 7923 718100
GBB – AUF for goods receipts for orders (without account assignment) ,and for order
settlement if AUA is not maintained
GENERAL VALUATION
AUF 3000 718370
AUF 3002 718350
AUF 3003 718100
AUF 3004 718110
AUF 3047 718100
AUF 3400 718250
AUF 7900 718350
AUF 7901 718370
AUF 7902 718350
AUF 7903 718350
AUF 7904 718350
AUF 7905 718350
AUF 7920 718100
AUF 7921 718110
AUF 7922 718100
AUF 7923 718100
GBB – BSA For Initial Entry of Stock Balances
GENERAL VALUATION
BSA 3000 881100
BSA 3001 881100
BSA 3002 881100
BSA 3003 881100
BSA 3004 881100
BSA 3005 881100

BSA 3006 881100
BSA 3007 881100
BSA 3040 881100
BSA 3041 881100
BSA 3042 881100
BSA 3043 881100
BSA 3044 881100
BSA 3045 881100
BSA 3046 881100
BSA 3047 881100
BSA 3048 881100
BSA 3049 881100
BSA 3050 881100
BSA 3051 881100
BSA 3052 881100
BSA 3053 881100
BSA 3054 881100
BSA 3055 881100
BSA 3056 881100
BSA 3057 881100
BSA 3058 881100
BSA 3059 881100
BSA 3060 881100
BSA 3061 881100
BSA 3062 881100
BSA 3063 881100
BSA 3100 881100
BSA 3200 881100
BSA 3201 881100
BSA 3202 881100
BSA 3300 881100
BSA 3400 881100
BSA 3500 881100
BSA 3501 881100
BSA 7900 881100
BSA 7901 881100
BSA 7902 881100
BSA 7903 881100
BSA 7904 881100
BSA 7905 881100
BSA 7920 881100
BSA 7921 881100
BSA 7922 881100
BSA 7923 881100
GBB – INV For Expenditure / Income From Inventory Differences
GENERAL VALUATION
INV 3000 711100
INV 3001 711200
INV 3002 711100
INV 3003 711220
INV 3004 711240
INV 3005 711100
INV 3006 711230
INV 3007 711250
INV 3040 731100
INV 3041 731300
INV 3042 731210
INV 3043 731200
INV 3046 751400
INV 3047 751300
INV 3048 752100
INV 3049 751500
INV 3050 751600
INV 3051 751450
INV 3052 751350
INV 3053 752200
INV 3054 751550
INV 3055 751650
INV 3056 751900
INV 3057 751950
INV 3058 751700
INV 3059 751800
INV 3060 731250
INV 3061 815440
INV 3062 815320
INV 3063 781800
GBB – VAX for goods issues for sales orders without account assignment object (the
account is not a cost element)
GENERAL VALUATION ACCOUNT

MODIFICATIO
N CLASS
VAX 3003 718450
VAX 7920 718450
VAX 7921 718450
VAX 7922 718460
VAX 7923 718450
VAY 3003 718450
VAY 7920 718450
VAY 7921 718450
GBB – VBO for consumption from stock of material provided to vendor)
GENERAL
MODIFICATIO VALUATION
N CLASS ACCOUNT
VBO 3003 732150
VBO 3040 732150
VBO 3041 732150
VBO 3046 732150
VBO 3047 732150
VBO 3048 732150
VBO 3049 732150
VBO 3050 732150
VBO 3200 732150
VBO 3201 732150
VBO 3202 732150
GBB – VBR for internal goods issues (for example, for cost center))
GENERAL VALUATION
VBR 3000 711100
VBR 3001 711200
VBR 3002 711100
VBR 3003 711220
VBR 3004 711240
VBR 3005 711100
VBR 3006 711230
VBR 3007 711250
VBR 3040 731100
VBR 3041 731300
VBR 3042 731210

VBR 3043 731200
VBR 3046 751400
VBR 3047 751300
VBR 3048 752100
VBR 3049 751500
VBR 3050 751600
VBR 3051 751450
VBR 3052 751350
VBR 3053 752200
VBR 3054 751550
VBR 3055 751650
VBR 3056 751900
VBR 3057 751950
VBR 3058 751700
VBR 3059 751800
VBR 3060 731250
VBR 3061 815440
VBR 3062 815320
VBR 3063 781800
VBR 3200 751200
VBR 3201 781100
VBR 3202 751100
VBR 3500 731100
VBR 3501 731300
VBR 7900 718510
VBR 7901 718530
VBR 7902 718550
VBR 7903 718520
VBR 7904 718540
VBR 7905 718560
VBR 7920 771100
VBR 7921 771300
VBR 7923 771200
GBB – VNG for scrapping/destruction
GENERAL VALUATION
VNG 3003 718250
VNG 3004 718250
VNG 3005 718250
VNG 3006 718250
VNG 3007 718250
VNG 3040 718250
VNG 3041 718250

VNG 3042 718250
VNG 3043 718250
VNG 7920 711300
Offsetting Entry for transaction between the plants, which are on SAP to the Plant, which
are Still on Legacy System.
Note : G/L Codes are Assign to all the Valuation Class
GBB – YDA Issue to DARIBA Plant.

GBB – YVZ Issue to VIZAG Plant.
GBB – YDE Issue to DEBARI Plant.
GBB – YZA Issue to ZAWAR Plant.
GENERAL
MODIFICATION ACCOUNT
YDA 131400
YDE 133100
YVZ 133200
YZA 131100
Offsetting Entry for transaction between the plants, which are on SAP to the Plant, which
are Still on Legacy System.
Note : G/L Codes are Assign to all the Valuation Class
GBB – ZDE Issue to DEBARI Plant.

GBB – ZVZ Issue to VIZAG Plant.
GBB – ZDE Issue to DARIBA Plant.
GBB – ZZA Issue to ZAWAR Plant.
GENERAL
MODIFICATION ACCOUNT
ZDA 131400
ZDE 133100
ZVZ 133200
ZZA 131100
TRANSACTION = KBS Account-assigned purchase order
You cannot assign this transaction/event key to an account. It means that the account
assignment is adopted from the purchase order and is used for the purpose of determining
the posting keys for the goods receipt.
TRANSACTION = KDM Materials management exchange rate difference
Exchange rate differences in the case of open items arise when an invoice relating to a
purchase order is posted with a different exchange rate to that of the goods receipt and the
material cannot be debited or credited due to standard price control or stock under
coverage/shortage
VALUATION
CLASS ACCOUNT
3006 715100
3007 715200
3041 735100
3042 735100
3051 735100
3052 735100
3053 735100
3054 735100
3055 735100
3057 735100
TRANSACTION = KDR MM exchange rate rounding differences

An exchange rate rounding difference can arise in the case of an invoice made out in a
foreign currency. If a difference arises when the posting lines are translated into local
currency (as a result of rounding), the system automatically generates a posting line for this
rounding difference.
DEBIT CREDIT
839510 839510
TRANSACTION = KON Consignment payables
Consignment liabilities arise in the case of withdrawals from consignment stock or from a
pipeline or when consignment stock is transferred to own stock. Depending on the settings
for the posting rules for the transaction/event key KON, it is possible to work with or
without account modification. If you work with account modification, the following
modifications are available in the standard system:
None for consignment liabilities
PIP for pipeline liabilities
GENERAL VALUATION
MODIFIER CLASS DEBIT CREDIT
7905 718560 718560
PIP 3000 711100 711100
TRANSACTION = PRD Cost (price) differences
Price differences arise for materials valuated at standard price in the case of all movements
and invoices with a value that differs from the standard price. Examples: goods receipts
against purchase orders (if the PO price differs from the standard priced), goods issues in
respect of which an external amount is entered, invoices (if the invoice price differs from the
PO price and the standard price).
Price differences can also arise in the case of materials with moving average price if there is
not enough stock to cover the invoiced quantity. In the case of goods movements in the
negative range, the moving average price is not changed. Instead, any price differences
arising are posted to a price difference account.
VALUATION
CLASS ACCOUNT
3000 711100
3001 711200
3002 719100
3003 711220
3004 711240
3006 711230
3007 711250
3040 731100
3041 731300
3042 731210
3043 731200
3046 751400
3047 751300
3048 752100
3049 751500
3050 751600
3051 751450
3052 751350
3053 752200
3054 751550
3055 751650
3056 751900
3057 751950
3058 751700
3059 751800
3060 731250
3061 815440
3062 815320
3063 781800
7900 719100
7901 719100
7902 719100
7904 719100
7905 719100
7920 719100
7921 719100
7923 719100
TRANSACTION = UMB Gain/loss from revaluation
This transaction/event key is used both in Inventory Management and in Invoice Verification
if the standard price of a material has been changed and a movement or an invoice is posted
to the previous period (at the previous price).
VALUATION
CLASS ACCOUNT
3000 711100
3001 711200
3002 711100
3003 711220
3004 711240
3006 711230
3007 711250
3040 731100
3041 731300
3042 731210
3043 731200
3046 751400
3047 751300
3048 752100
3049 751500
3050 751600
3051 751450
3052 751350
3053 752200
3054 751550
3055 751650
3056 751900
3057 751950
3058 751700
3059 751800
3060 731250
7900 711500
7901 711500
7902 711500
7904 711500
7905 711500
7920 711500
7921 711500
7923 711500
TRANSACTION = UPF Unplanned delivery costs
Unplanned delivery costs are delivery costs (incidental procurement costs) that were not
planned in a purchase order (e.g. freight, customs duty). In the SAP posting transaction in
Logistics Invoice Verification, instead of distributing these unplanned delivery costs among
all invoice items as hitherto, you have the option of posting them to a special account. A
separate tax code can be used for this account.
ACCOUNT
732100
TRANSACTION = WRX GR/IR clearing account
Postings to the GR/IR clearing account occur in the case of goods and invoice receipts
against purchase orders. You must set the Balances in local currency only indicator for the
GR/IR clearing account to enable the open items to be cleared.
DEBIT CREDIT
212700 212700
LOGISTICS INVOICE VERIFICATION
In the Logistics Invoice Verification, you make the system settings that are required for the
following areas:
 Processing invoice receipts
 Connection to Financial Accounting

INCOMING INVOICE
MAINTAIN NUMBER ASSIGNMENTS FOR ACCOUNTING DOCUMENT
IMG Path: Material Management  Logistic Invoice Verification  Incoming Invoice

 Number Assignment  Maintain Number Assignment for Accounting
Document
Select Transaction Code “MIRO” & Assigned Document Type “RE”
TAX TREATMENT IN INVOICE REDUCTION


 Tax Treatment in Invoice Reduction
Make Setting Against Company Code 1000 Tax Reduction in Complaint Document
MAINTAIN DEFAULT VALUE FOR TAX CODES

 Maintain Default Value for Tax Codes
In this step, you define for each company code which tax code(s) the SAP System suggests
when you enter incoming invoices.
 Domestic invoices
You can define tax codes for invoices that you receive from within your own country.
 Invoices with unplanned expenses
You can define tax codes for invoices with unplanned expenses. These are used if
you post to a separate account in Logistics Invoice Verification
Make Entry for Company Code 1000 ABC Limited
CONFIGURE HOW EXCHANGE RATE DIFFERENCES ARE TREATED


 Configure How Exchange Rate Differences are treated
In this activity, you set how exchange rate differences should be calculated for invoices in
foreign currencies.
 The exchange rate differences are calculated from the exchange rate at the time of
the goods receipt and the exchange rate at the time of the invoice receipt.
 The exchange rate differences are calculated from the exchange rate at the time of
the invoice receipt and the assumed exchange rate, which is valid for a specific
period of time, such as a year or a season.
 No exchange rate differences will be calculated. Instead, the differences from
exchange rate fluctuations will be considered price differences and posted to a price
difference account.
CONFIGURE HOW UNPLANNED DELIVERY COST ARE POSTED

 Configure How Exchange Rate Differences are treated
In this step, you specify how the system posts unplanned delivery costs in Logistics Invoice
Verification.
There are two options:
 Unplanned delivery costs are distributed among the individual items in proportion to
the item amounts invoiced so far and the item amounts in the current invoice.
o The amounts determined are added to the respective item amounts.

o The amounts determined are posted in a separate line for each item.
 Unplanned delivery costs are posted in a separate line. You must enter a specific tax
code for the posting. You can define a default value for this in Maintain Default
Values for Tax Codes.
Make Entry with Company Code “1000” & Keep Unplanned Del. Cost field blank i.e.
Distribute amongst invoice items
CONFIGURE VENDOR SPECIFIC TOLERANCES

 Configure Vendor Specific Tolerances
In this step, you define tolerance groups for each company code. You can assign these
tolerance groups to each vendor in the vendor master record. If the difference is within the
tolerance range, the system automatically generates a difference line on a neutral
income/expense account for small differences for invoices with debit/credit differences
when posting the invoice.
Make Following Entry
COMPANY TOLERANCE
CODE DESCRIPTION GROUP
1000 ABC Limited 0001
Double Click & Maintain the Detail as per ABC Requirement

.
ACTIVATE DIRECT POSTING TO G/L ACCOUNT & MATERIAL ACCOUNTS

 Activate Direct Posting to G/L Account & Material Accounts
In this step, you configure whether you can make postings to G/L accounts and material
accounts during invoice entry and document parking.
INVOICE BLOCK
In the "Invoice Block" unit, you can configure the settings for blocking invoices.
This includes the following functions:
 Determine Payment Block

 Set Tolerance Limits
 Item Amount Check
SET TOLERANCE LIMIT
IMG Path: Material Management  Logistic Invoice Verification  Invoice Block 

Set Tolerance Limit
When processing an invoice, the System checks each item for variances between the invoice
and the purchase order or goods receipt. The different types of variances are defined in
tolerance keys.
The system uses the following tolerance keys to check for variances:
COMPANY
CODE COMPANY NAME TOL.KEY DESCRIPTION
1000 ABC Limited AN Amount for item without order reference
1000 ABC Limited AP Amount for item with order reference
1000 ABC Limited BD Form small differences automatically
1000 ABC Limited BR Percentage OPUn variance (IR before GR)
1000 ABC Limited BW Percentage OPUn variance (GR before IR)
1000 ABC Limited DQ Exceed amount: quantity variance
1000 ABC Limited DW Quantity variance when GR qty = zero
1000 ABC Limited KW Var. from condition value
1000 ABC Limited PP Price variance
1000 ABC Limited PS Price variance: estimated price
1000 ABC Limited ST Date variance (value x days)
1000 ABC Limited VP Moving average price variance
ACTIVATE ITEM AMOUNT CHECK
IMG Path: Material Management  Logistic Invoice Verification  Invoice Block 

Item Amount Check  Activate Item Amount Check
In this step, you determine whether the system blocks invoice items when their value
exceeds a certain amount. You set the limit above which items are blocked as the "absolute
upper limit" for the following tolerance limits:
Do not Tik against ABC Company Code ‘1000’ .
Hope I have covered major area in MM configuration. Thanks for the continuous support
from everyone. I received huge support and appreciation from everyone with that
happiness and initiation I have covered important topics in Materials management and I
hope new consultants will get an idea on SAP MM.
For WM Configuration please use my link:-

http://gvshivakkumar.blogspot.com/
http://www.sapfunctional.com/WM/Configuration/Index.htm
http://www.sapfunctional.com/WM/WMQ1.htm
http://www.sapfunctional.com/MM/MMQ1.htm

Materials Management - Step by Step Configuration

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Materials Management - Step by Step Configuration

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Material Management Step by Step Configuration

Financial Accounting Global Setting.....................................................................................25

Assign Document Type, One Step Procedure, Under Delivery Tolerance.............................95

Allow Negative Stocks......................................................................................................... 159

Configure How Exchange Rate Differences Are Treated.....................................................210

IMG Path: General Settings  Set Countries  Set Country-Specific Checks

IMG Path: General Settings  Check Units of Measurement

Following new Unit of Measurement are defined.

DEFINITION OF MM ORGANIZATIONAL ELEMENTS

The plant is an operating area or branch within a company.

The plant is embedded in the organizational structure as follows:

 A single business area is assigned to a plant and to a division.

 A plant can be assigned to several combinations of sales organization and

 A plant can be defined as a maintenance planning plant.

A plant has the following attributes:

 A plant has an address.

 A plant has a language.

 A plant belongs to a country.

The plant plays an important role in the following areas:

The material stocks are managed within a plant.

In costing, valuation prices are defined only within a plant.

IMG Path: Enterprise Structure  Definition  Logistics –General  Define, Copy,

IMG Path: Enterprise Structure  Definition  Materials Management  Maintain

A Purchase Organisation is an organisational unit within logistics in SAP R/3, which

IMG Path: Enterprise Structure  Definition  Materials Management  Maintain

ASSIGNING PLANTS TO COMPANY CODE

IMG Path: Enterprise Structure  Assignment  Logistics General  Assign Plants to

ASSIGN PURCHASING ORGANIZATION TO COMPANY

IMG Path: Enterprise Structure 

ASSIGN PURCHASING ORGANIZATION TO PLANT

IMG Path: Enterprise Structure  Assignment  Materials Management  Assign

ASSIGN PURCHASING ORGANIZATION TO

IMG Path: Enterprise Structure 

PUR.ORG. REF. PUR.ORG.

Make Global Setting

IMG Path: Logistics - General 

Select Check Box Manufacturing Part No.

MAINTAINED COMPANY CODE FOR MATERIAL

IMG Path: Logistics - General 

DEFINE ATTRIBUTES OF MATERIAL TYPES

IMG Path: Logistics - General 

MTyp Material type description Type

ASSIGN MATERIAL TYPES TO SPECIAL CREATED TRANSACTION

GRP MATERIAL TYPE DESC.

NUMBER RANGES TO MATERIAL TYPE

From number To number Number status Ext

Group: ABC-SEMI FINISHED GOODS

Group: ABC-STORES AND SPARES

Group: ABC-PROCESS WASTE

Group: ABC-NON VALUATED ITEMS

Group: ABC-RAW MATERIAL

Group: ABC-FINISHED GOODS

Group: ABC-SERVICABLE ITEMS

DEFINE MATERIAL GROUPS

MATL GROUP MATL GRP DESCRIPTION

FINANCIAL ACCOUNTING GLOBAL SETTING

DEFINE TAX JURISDICTION CODE

Delete all Entry with Tax Procedure “TAXINJ”

SPECIFY STRUCTURE FOR TAX JURISDICTION CODE

Delete entry with procedure TAXINJ and TAXINN

DEFINE A/C GROUP

Following New Account Groups are defined for ABC

CREATE NUMBER RANGE FOR VENDOR GROUP