PROJECT REPORT ON

AKASh KK

IAERNLSM204
PGDM IN LOGISTICS AND SUPPLY CHAIN
MANAGEMENT

1
 A PROJECT REPORT ON
“A STUDY OF ENTERPRISE RESOURCE PLANNING SOFTWARE,
THE SOFTWARE IS SAP SE. AND INCLUDING THE ENTERPRISE
STRUCTURE.”

THE REPORT SUBMITED FOR PARTIAL FULFILMENT OF THE

REQUIREMENT IN POST GRADUATION DIPLOMA IN LOGISTICS
AND SUPPLY CHAIN MANAGEMENT. AT IBIS ACADEMY
EDAPPALLY ERANAKULAM

2022-2023

SUBMITTED BY
AKASH KK
Reg No: IAERNLSM204

Under the supervision of

HONEY THRESIA
SAP faculty, IBIS ACADEMY

2
 Department of Logistics and Supply Chain Management
IBIS INSTITUTE OF EDUCATION LIST OF
CONTENTS

SL TITLE PAGE
NO NO

1 INTRODUCTION

2 ERP

3 SAP

4 HISTORY OF SAP

5 WHY SAP

6 ADVANTAGES

7 DISADVANTAGES

8 MRP CONCEPT

9 MRP II

10 SAP MODULE

11 SAP MM

ENTERPRICE STRUCTURE

1 CREATE COMPANY

2 CREATE COMPANY CODE

3 ASSIGN COMPANY TO COMPANY CODE

4 DEFINE BUSINESS AREA

5 DEFINE CHART OF ACCOUNT

6 ASSIGN COMPANY CODE TO CHART OF ACCOUNT

3
7 DEFINE ACCOUNTING GROUP

8 DEFINE RETAINED EARNINGS

9 DEFINE FISCAL YEAR VARIANT

10 ASSIGN COMPANY CODE TO FISCAL YEAR

VARIANT
11 DEFINE VARIANT FOR OPENING POSTING PERIOD

12 ASSIGN POSTING PERIOD VARIANT TO COMPANY

CODE
13 OPENING AND CLOSE POSTING PERIOD

14 DEFINE DOCUMENT TYPE

15 DEFINE FIELD STATUS PERIOD

16 ASSIGN FIELD STATUS VARIANT CODE TO

COMPANY CODE
17 DOCUMENT SPLITTING

18 ENTER GLOBAL PARAMETERS

19 TOLERANCE GROUP FOR GL ACCOUNT

20 TOLERANCE GROUP FOR USERS AND

EMPLOYEES
21 GL CREATION

22 CREATE PLANTS

23 CREATE STORAGE LOCATION

24 CREATE PURCHASING ORGANISATION

25 CREATE PURCHASE GROUP

26 ASSIGN PLANT TO COMPANY CODE

27 ASSIGN PURCHASE ORGANISATION TO

COMPANY CODE
28 ASSIGN PURCHASE ORGANISATION TO PLANT

SAP MM MASTER DATA

4
 29 CREATE MATERIAL TYPE

30 DEFINE NUMBER RANGE

31 MATERIAL MASTER CREATION

VENDOR CREATION
32 CREATE VENDOR ACCOUNT GROUP

33 DEFINE NUMBER RANGE FOR VENDOR ACCOUNT

GROUP
34 ASSIGN VENDOR ACCOUNT FROUP AND NUMBER
RANGE
35 CREATE VENDOR MASTER DATA

PROCUREMENT CYCLE
36 PURCHASE REQUISITION

37 MAINTAIN GL ACCOUNT FOR AUTOMATING

POSTING
38 SET ATOLERANCE LIMIT FOR PRICE VARIANT

39 SET NUMBER RANGE FOR MATERIAL GROUP AND

GOODS RECEIPT
40 ASSIGN NUMBER RANGE FOR GOODS RECEIPT
DOCUMENT
41 REQUEST FOR QUATATION

42 PURCHASE ORDER

43 GOODS RECEIPT

44 PURCHASE INVOICE

45 CONCLUSION

INTRODUCTION
In recent years there has been an increase in using Enterprise
Resource Planning (ERP) systems in large companies and government

5
corporations mainly in developed countries. While there is wide
adoption of ERP systems in western economies, developing countries
lag far behind. However, due to recent economic growth, developing
countries are increasingly becoming major target of ERP vendors.
There is an urgent need for understanding ERP implementation issues
in developing countries, as ERP systems are still in their early stages
in these countries. They face additional challenges related to
economic, cultural and basic infrastructure issues. This software also
proposes an IT strategy framework which can be used by
organisations planning to implement ERP to align their business and it
strategy.
To be considered an ERP system, a software package must provide
the function of at least two system. For example, a software package
that provides both payroll and accounting functions could technically
be considered an ERP software package.
Ideally, ERP delivers a single database that contains all data for the
software modules, which would include:

1. Manufacturing
Bills of materials, capacity, workflow management, quality
control, cost management, manufacturing process and
manufacturing flow.

2. Supply chain management

Order to cash, inventory, order entry, purchasing, supply chain
planning, inspection of goods, claim processing and commission
calculation.
3. Financials
General ledger, cash management, accounts payable, accounts
receivable and fixed assets.

4. Project management
Costing, billing, time and expense, performance units and
activity management.

5. Human resources
Training, time and attendance and benefits.
6
 6. Customer relationship management
Sales and marketing, commissions, service, customer contact
and call centre support.

7. Data warehouse
Various self-service interfaces for customers, suppliers and
employees.

8. Access control
User privilege as per authority levels for process execution.

9. Customization
To meet the extension, addition and change in process flow

ERP – ENTERPRISE RESOURCE PLANNING

Definition of ERP
Enterprise resource planning (ERP) refers to a type of software that
organizations use to manage day-to-day business activities such as
accounting, procurement, project management, risk management, and
compliance, and supply chain operations. A complete ERP suite also
includes enterprise performance management, software that helps
plan, budget, predict, and report on an organizations financial results.
ERP systems tie together a multitude of business processes and enable
the flow of data between them. By collecting an organization’s shared
7
transactional data from multiple sources, ERP systems eliminate data
duplication and provide data integrity with a single source of truth.

What is an ERP
ERP systems are complete integrated platforms, either on-premises or
in the cloud, managing all aspects of a production-based or
distribution business. Moreover ERP systems support all aspects of
finance management, human resources, supply chain management and
manufacturing with your core accounting function.
ERP system will also provide transparency into your complete
business process by tracking all aspects of production, logistics and
financials.
These integrated systems act as a business’s central hub for end-to-
end workflow and data, allowing a variety of departments to access.

Business value of ERP

It’s impossible to ignore the impact of ERP in today’s business world.
As enterprise data and processes are corralled into ERP systems,
business can align separate departments and improve workflows,
resulting in significant bottom line savings.

 Improved business insight

 Lower operational cost

 Enhanced collaboration

 Improved efficiency

 Consistent infrastructure

8
  Higher user adoption rates

 Reduce Risk

SAP
 SAP stands for – System, Applications, and Products in
data processing.
 SAP is the fourth largest software company in the world.
 The SAP R/3 system is a business software package
designed to integrate all areas of a business. Using ABAP
platform it’s an advanced SAP business applications
programming language.
 It provides end-to-end solutions for financials,
manufacturing, logistics, distribution, etc.
 All business processes are executed in one SAP system
and sharing common information with everyone.
 SAP system consist of a number of fully integrated
modules, which covers virtually every aspect of business
management.

History of SAP
SAP founded in and around 1972 by five IBM engineers Hopp,
Wellenreuther, Hector, Tschira, and Plattner.
SAP SE is the largest multinational software company headquartered
in Walldorf, Germany. SAP development enterprise applications to
manage the connections with the consumers and also the operations in
business. The business operates through two sections: Technology,
software& services division, and also the SAP Business Network
section.

9
Why SAP
By centralising data management, SAP software provides multiple
business functions with a single view of truth. This helps companies
better manage complex business processes by giving employees of
different departments can easy access to real-time insights across the
enterprise.

Advantages of SAP
 Making work more efficiency.
 Increase productivity.
 Suitable for all business sizes.
 Shorter implementation time with fastest financial returns.
 Runs on many different platforms
 Accuracy

Disadvantages of SAP
 Expensive
 Very complex
 Risk of project
 Not very flexible

MATERIAL REQUIREMENT PLANNING (MRP)

What is M R P
Material requirement planning or MRP is a computer based inventory
management technique designed to improve productivity for
businesses. Companies use material requirements planning systems to

10
ensure that materials and components are available in the right
quantities and schedule their delivery time.
MRP is often considered to be a subset of inventory control it is an
effective tool for minimizing unnecessary inventory investment.
Material requirement planning is also useful in production scheduling
and purchasing of materials.

Functions of MRP
 Control of the inventory levels.
 Assignment of priorities for components, depending upon
Delivery dates
 Determination of capacity requirements at a detailed level

Process of MRP
The MRP process can be split into 4 basic steps,

1. Estimating demand and the materials required to meet it

2. Check demand against inventory & allocate resources
3. Production scheduling
4. Monitor the process

Advantages of MRP
 Assurance that materials and components will be available
When needed
 Minimized inventory levels and costs associated.
 Optimized inventory management.
 Reduced customer lead times.
 Increased manufacturing efficiency by using accurate
Production planning and scheduling
 Increased labour productivity.
 Ensure capacity utilization.
11
  Increased overall customer satisfaction.

Disadvantages of MRP
 MRP systems can often be difficult and expensive to
implement.
 Lack of flexibility.

MRP II – MANUFACTURING RESOURCE PLANNING

MRP II comprises a variety of processes each linked together business
planning, production planning, master production scheduling, material
requirement planning and the execution support systems for capacity
and material. The output from these systems is integrated with
financial reports such as the business plan purchase commitment
report shipping budget and inventory projections it enables
management to make an accurate visualization of the scheduling
inventory process and design engineering and to effectively utilize
cost control measures.

Benefits of MRP II
 MRP-II is an innovative and highly competitive tool that
has completely revolutionized the traditional stock control and
management method.
 Allowing any company to smartly manage its operating
expenses by reducing the money, time and human capital.
 We can say that MRP II act as a helpful tool for profit
optimization as it reduces unnecessary expenses.

12
  To prophesy how their overall strategy can affect the
overall profitability of the business.
 Any company can easily leverage to accomplish its core
functions, such as planning, effective decision making and
production.

SAP FUNCTIONAL MODULES

FICO - Finance & Control

PP – Production Planning

MM – Material Management

SD – Sales & Distribution

WM – Warehouse Management

QM – Quality Management

HR – Human Resources

CRM – Customer Relationship Management

SAP MM – MATERIAL MANAGEMENT

SAP MM is one of the important modules in SAP- ERP software. The
MM application module supports the procurement and inventory
functions occurring n day-to-day business operations. This MM

13
module contains many aspects such as purchasing, goods receiving,
material storage, consumption based- planning and inventory. SAP
MM is integrated with other SAP modules such as finances &
controlling, sales & distribution, quality management, plant
maintenance, production planning and warehouse management.

14
ENTERPRICE STRUCTURE

15
1. COMPANY CREATION
TRANSACTION CODE : OX15

→ NEW ENTRIES

DESCRIPTION
IN THIS STEP WE HAVE TO ADD THE DETAILS OF THE COMPANY LIKE
COMPANY , COMPANY NAME , CITY , COUNTRY , LANGUAGE KEY ,
CURRENCY.

16
DETAILS
COMPANY : AKASHK
COMPANY NAME : AKASH COMPANY LTD
CITY : KANNUR
COUNTRY : IN ( INDIA )
LANGUAGE KEY : EN ( ENGLISH )
CURRENCY : INR

→ SAVE

DESCRIPTION
IN THIS STEP CLICK THE CREATE BUTTON IN THE HIGHLIGHTED FIELD
TO CHANGE THESHORT DESCRIPTION.

17
DESCRIPTION
IN THIS STEP TYPE “ BASIC SETTINGS FOR GTR “ AS SHORT
DESCRIPTION

→ SAVE
→ CONTINUE

18
WE HAVE TO ADD “ /N “ BEFORE THE TRANSACTION CODE TO
GET A NEW WINDOW.

2. CREATE A COMPANY CODE

TRANSACTION CODE : OXO2

→ NEW ENTRY

DESCRIPTION
IN THIS STEP WE HAVE TO CREATE A COMPANY CODE AND THE
DETAILS LIKE COMPANY NAME , CITY , COUNTRY , CURRENCY ,
LANGUAGE

DETAILS
COMPANY CODE : ak2
COMPANY NAME : ak2 1st branch
CITY : Kannur

19
COUNTRY : IN
CURRENCY : INR
LANGUAGE : EN
→ SAVE

DESCRIPTION
IN THIS STEP ADD THE DETAILS LIKE TITLE ,NAME ,COUNTRY,
REGION.

DETAILS
TITLE : COMPANY
NAME : ak2 1st branch
20
COUNTRY : IN
REGION : 11 ( KERALA )

→ CONTINUE
→ SAVE
→ CONTINUE

3.ASSIGN COMPANY CODE TO COMPANY

TRANSACTION CODE : OX16

→ POSITION

21
→ ENTER YOUR COMPANY CODE
DESCRIPTION
IN THIS STEP WE HAVE TO ASSIGN BRANCH COMPANY TO
HEAD COMPANY.

ENTER THE COMPANY IN THE HIGHLIGHTED AREA : AKASHK

→ SAVE
→ CONTINUE
4. DEFINE BUSINESS AREA
TRANSACTION CODE : OX03

→ NEW ENTRIES

22
DESCRIPTIONIN THIS WINDOW ADD THE DETAILS LIKE
BUSINESS AREA AND DESCRIPTION IN THE HIGHLIGHTED
AREA.

DETAILS
BUSINESS AREA : KKN
DESCRIPTION : BUSINESS AREA IN KANNUR

→ SAVE
→ CONTINUE
5. DEFINE CHART OF ACCOUNTS
TRANSACTION CODE : OB13

→ NEW ENTRIES

23
DESCRIPTION
IN THIS ACCOUNT WE HAVE TO DEFINE CHART OF
ACCOUNTS.FOR THIS WE HAVE TO ENTER TH DETAILS LIKE
CHART OF ACCOUNT CODE, DESCRIPTION, MAINTAIN
LANGUAGE, LENGTH OF G/L ACCOUNT NYMBER

DETAILS
CHART OF ACCOUNTS : akax
DESCRIPTION : CHART OF ACCOUNTS ak2
MAINTAIN LANGUAGE : ENGLISH
LENGTH OF G/L : 3
→ SAVE
→ CONTINUE
24
6. ASSIGN COMPANY CODE TO CHART OF ACCOUNT
TRANSACTION CODE : OB62

→ POSITION

DESCRIPTION
INORDER TO ASSIGN COMPANY CODE . ENTER THE CHART
OF ACCOUNT IN THE HIGHLIGHTED AREA.

DETAILS
CHART OF ACCOUNTS : akax
→ SAVE
→ CONTINUE
25
7. DEFINE ACCOUNT GROUPS
TRANSACTION CODE : OBD4

→ NEW ENTRIES

DESCRIPTION
IN THIS STEP WE HAVE TO DEFINE ACCOUNT GROUPS.SO
ENTER SUCH DETAILS LIKE CHART OF ACCOUNT, ACCOUNT
GROUP , NAME , FROM ACCOUNT , TO ACCOUNT.

DETAILS
CHART OF ACCOUNTS : akax
ACCOUNT GROUP : LIA
NAME : LIABILITY

26
FROM ACCOUNT : 1
TO ACCOUNT : 50
CHART OF ACCOUNTS : akax
ACCOUNT GROUP : RWMT
NAME : RAW MATERIAL CONSUMPTION
FROM ACCOUNT : 51
TO ACCOUNT : 100

→ SAVE
→ CONTINUE

8. DEFINE RETAINED EARNINGS

TRANSACTION CODE : OB53

DESCRIPTION
IN THIS STEP WE HAVE TO ADD THE P&L STATEMENT
ACCOUNT TYPE AND ACCOUNT IN THE HIGHLIGHTED AREA.

27
28
DETAILS
P&L STATEMENT ACCOUNT TYPE : PL
ACCOUNT : 101

→ SAVE
→ CONTINUE

9. DEFINE FISCAL YEAR VARIANTS

TRANSACTION CODE : OB29
DESCRIPTION
SELECT ANY VARIANT FROM THE LIST. AND CHECK THE
PERIOD MUST BE IN BETWEEN APRIL AND MARCH,YEAR
DEPEND AND CALENDAR YEAR MUST NOT BE
SELECTED,NUMBER OF POSTING PERIOD MUST BE
12,NUMBER OF SPECIAL PERIOD MUST BE 4.

29
DESCRIPTION
IN THIS STEP WE HAVE TO CHANGE THE FISCAL YEAR
VARIANT

DETAILS
FISCAL YEAR VARIANT : ax

30
→ ENTER

→ COPY ALL
→ CONTINUE
→ SAVE

10. ASSIGN COMPANY CODE TO FISCAL YEAR

VARIANT
TRANSACTION CODE : OB37

→ POSITION

→ ENTER THE COMPANY CODE : ak2

DESCRIPTION

31
IN THIS STEP WE HAVE TO ENTER THE CODE FOR FISCAL
YEAR VARIANT .

DETAILS
FISCAL YEAR VARIANT : ax
→ SAVE
→ CONTINUE

11. DEFINE DOCUMENT TYPE

TRANSACTION CODE : OBA7

→ POSITION
ENTER DOCUMENT TYPE : SA ( G/L ACCOUNT TYPE )

32
→ DOUBLE CLICK ON SA

→ CLICK ON NUMBER RANGE INFORMATION

33
→ ENTER COMPANY CODE AND CLICK ON CHANGE
INTERVALS

→ CLICK ON INSERT INTERVALS

34
DESCRIPTION
IN THIS STEP WE HAVE TO ADD NO,YEAR ,FROM NUMBER
AND TO NUMBER.WE SHOULD DEFINE DOCUMENT TYPE
HERE BY CREATING A NEW NUMBER RANGE.
DETAILS
NO. : 01
YEAR : 2024
FROM NUMBER : 01
TO NUMBER : 1000

35
→ ENTER
→ SAVE

12. DOCUMENT SPLITTING

TRANSACTION CODE : SPRO

→ CLICK ON SAP REFERENCE IMG

36
→ EXPAND FINANCIAL ACCOUNTING NEW
→ EXPAND GENERAL ACCOUNTING NEW
→ EXPAND BUSINESS TRANSACTION
→ EXPAND DOCUMENT SPLITTING
→ ACTIVATE DOCUMENT SPILTTING

37
→ DOUBLE CLICK ON DEACTIVATION PER COMPANY CODE
→ POSITION
ENTER COMPANY CODE : ak2

38
→ MARK INACTIVE IN YOUR COMPANY CODE

→ SAVE
→ CONTINUE
13. DEFINE FIELD STATUS VARIENT.
TRANSACTION CODE : OBC4

→SELECT ANY VARIENT FROM THE LIST AND COPY AS

39
→ ENTER FIELD STATUS VARIANT AND FIELD STATUS NAME

FSTV : ak2
FIELD STATUS : FIELD STATUS FOR ak2

→ ENTER
→ COPY ALL

40
→ SELECT OUR FIELD STATUS VARIANT
→ DOUBLE CLICK ON FIELD STATUS GROUP

→ DOUBLE CLICK AND OPEN G001

41
→ DOUBLE CLICK ON GENERAL DATA

→ CHANGE TEXT TO REQUIRED ENTRY AND SUPPRESS ALL

→ GO BACK AND DOUBLE CLICK ON ADDITIONAL ACCOUNT
ASSIGNMENTS
→ CHANGE BUSINESS AREA TO REQUIRED ENTRY AND
SUPPRESS ALL

42
→ SAVE
DESCRIPTION
IN THIS STEP DOUBLE CLICK ON G001, CLICK ON GENERAL
DATA MARK THE TEXT FIELD AS REQUIRED AND SUPPRESS
THE REMAINING. GO BACK AND SELECT ADDITIONAL
ACCOUNT INFORMATION AND MARK THE BUSINESS AREA AS
REQUIRED AND SUPRESS THE REMAINING.AFTER SAVING GO
BACK TWO TIMES AND SELECT THE G004 AND SUPPRESS ALL
DATAS ON GENERAL DATA AND ADDITIONAL ACCOUNT
ASSIGNMENTS.
43
→ GO BACK TWO TIMES
→ DOUBLE CLICK ON G004

→ OPEN GENERAL DATA

→ SUPPRESS ALL DATAS

44
→ GO BACK
→ OPEN ADDITIONAL ACCOUNT ASSIGNMENT
→ SUPRESS ALL DATAS

45
→ SAVE

46
14. ASSIGN FIELD STATUS VARIENT TO COMPANY
CODE
TRANSACTION CODE : OBC5

→ POSITION
ENTER COMPANY CODE : ak2

DESCRIPTION
IN THIS STEP WE HAVE TO ADD THE FIELD STATUS VARIANT
IN THE HIGHLIGHTED AREA.
FIELD STATUS VARIANT : ak2

→ SAVE

47
15. DEFINE VARIANT FOR OPENING POSTING PERIOD
TRANSACTION CODE : OBBO

→ NEW ENTRIES

DESCRIPTION
IN THIS STEP ENTER THE VARIANT CODE AND NAME

DETAILS
VARIANT : ak2
NAME : VARIANT NAME FOR ak2

→ SAVE
→ CONTINUE

48
16. ASSIGN VARIENT TO COMPANY CODE
TRANSACTION CODE : OBBP

→ POSITION
ENTER COMPANY CODE
DESCRIPTION
IN THIS STEP WE HAVE TO ADD THE POSTING PERIOD
VARIENT CODE IN TO THE HIGHLIGHTED AREA.

DETAILS
POSTING PERIOD VARIENT CODE : ak2
→ SAVE→ CONTINUE

49
17. OPEN AND CLOSING POSTING PERIOD
TRANSACTION CODE : OB52

→ NEW ENTRIES

DESCRIPTION
IN THIS STEP WE HAVE TO ENTER THE DETAILS SUCH AS
VARIANT CODE , ACCOUNT TYPE,FROM PRIOD 1,YEAR,TO
PERIOD,YEAR,FROM PERIOD 2,YEAR,TO PERIOD AND YEAR.

DETAILS
VARIANT CODE : ak2
ACCOUNT TYPE : (+) VALID FOR ALL ACCOUNT TYPE
FROM PERIOD 1 :1
YEAR : 2023
TO PERIOD :12
50
YEAR : 2024
FROM PERIOD : 13
YEAR : 2024
TO PERIOD : 16
YEAR : 2024

→ SAVE
→ CONTINUE

18. ENTER GLOBAL PARAMETERS

TRANSACTION CODE : OBY6

→ POSITION
→ ENTER COMPANY CODE : GTR7
→ DOUBLE CLICK ON COMPANY CODE

51
→ MARK BUSINESS AREA FINANCIAL STATEMENT
→ MARK PROPOSE FISCAL YEAR
→ MARK DEFAULT VALUE DATE
→ SAVE

52
19. TOLERANCE GROUP FOR GL ACCOUNT
TRANSACTION CODE : OBA0

→ NEW ENTRIES

DESCRIPTION
IN THIS STEP WE HAVE TO ENTER THE COMPANY CODE AND
DESCRIPTION FOR TOLERANCE GROUP AS “TOLERANCE
GROUP FOR GTR7”

→ SAVE
20. TOLERANCE GROUP FOR USERS AND EMPLOYEES
TRANSACTION CODE : OBA4

53
→ NEW ENTRIES

DESCRIPTION
IN THIS STEP WE HAVE TO ENTER THE COMPANY CODE, AND
ADD THE UPPER LIMITS FOR POSTING PROCEDURES SUCH AS
AMOUNT PER DOCUMENT, AMOUNT PER OPEN ITEM
ACCOUNT ITEM,CASH DISCOUNT PER LINE ITEM.

DETAILS
COMPANY CODE : ak2
AMOUNT PER DOCUMENT : 999999999999
AMOUNT PER OPEN ITEM ACCOUNT ITEM : 9999999999
54
CASH DISCOUNT PER LINE ITEM : 20

→ SAVE
21. CREATE G/L ACCOUNT
TRANSACTION CODE : FS00

DESCRIPTION
IN THIS STEP CLICK ON CREATE AND ENTER THE G/L NUMBER
AND COMPANY CODE

DETAILS
G/L ACCOUNT NUMBER : 1
COMPANY CODE : ak2

55
→ CONTINUE
→ ENTER

DESCRIPTION
ENTER ACCOUNT GROUP ,SELECT BALANCE SHEET ACCOUNT
AND ENTER SHORT TEXT AND LONG TEXT.

DETAILS
ACCOUNT GROUP : LIABILITY
SHORT TEXT : SUNDRY CREDITORS
LONG TEXT : SUNDRY CREDITORS

56
DESCRIPTION
SELECT RECONSILATION ACCOUNT TYPE, SELECT LINE ITEM
DISPLAY, ENTER SORT KEY.
DETAILS
RECONSILATION ACCOUNT : VENDORS
SORT KEY : 001

57
DESCRIPTION
ENTER FIELD STATUS GROUP
DETAILS
FIELD STATUS GROUP : G067
→ SAVE

58
DESCRIPTION
CLICK ON CREATE, ENTER G/L ACCOUNT NUMBER AND
COMPANY CODE

DETAILS
G/L ACCOUNT NUMBER : 51
COMPANY CODE : ak2

59
DESCRIPTION
SELECT ACCOUNT GROUP, SELECT P&L ACCOUNT, ENTER
SHORT TEXT AND LONG TEXT.

DETAILS
ACCOUNT GROUP : RAW MATERIAL CONSUMPTION
SHORT TEXT : BSX INVENTORY
LONG TEXT : BSX INVENTORY POSTING ACCOUNT

60
DESCRIPTION
SELECT ONLY BALANCE IN LOCAL CURRNCY, SELECT LINE
ITEM DISPLAY AND ENTER SORT KEY.

DETAILS
SORT KEY : 001

61
DESCRIPTION
ENTER FIELD STATUS GROUP AND SELECT POST
AUTOMATICALLY ONLY.

DETAILS
FIELD STATUS GROUP : G004

→ SAVE

62
DESCRIPTION
CLICK ON CREATE, ENTER G/L ACCOUNT NUMBER AND
COMPANY CODE.

DETAILS
G/L ACCOUNT NUMBER : 52
COMPANY CODE : ak2

63
DESCRIPTION
SELECT ACCOUNT GROUP, SELECT P&L ACCOUNT AND ENTER
SHORT TEXT AND LONG TEXT.

DETAILS
ACCOUNT GROUP : RAW MATERIAL CONSUMPTION
SHORT TEXT : PRD COST PRICE DIFFERENCE
LONG TEXT : PRD CODT PRICE DIFFERENCE

64
DESCRIPTION
SELECT ONLY BALANCE IN LOCAL CURRENCY, SELECT LINE
ITEM DISPLAY AND ENTER SORT KEY.

DETAILS
SORT KEY : 001

65
DESCRIPTION
ENTER FIELD STATUS GROUP AND SELECT POST
AUTOMATICALLY ONLY.

DETAILS
FILED STATUS GROUP : G004

→ SAVE

66
DESCRIPTION
CLICK ON CREATE AND ENTER G/L ACCOUNT NUMBER AND
COMPANY CODE.

DETAILS
G/L ACCOUNT NUMBER : 53
COMPANY CODE : ak2

67
DESCRIPTION
SELECT ACCOUNT GROUP, SELECT P&L STATEMENT
ACCOUNT AND ENTER SHORT AND LONG TEXT.

DETAILS
ACCOUNT GROUP : RAW MATERIAL CONSUMPTION
SHORT TEXT : WRX GR/IR CLEARING
LONG TEXT : WRX GR/IR CLEARING ACCOUNT

68
DESCRIPTION
SELECT ONLY BALANCE IN LOCAL CURRENCY, SELECT LINE
ITEM DISPLAY AND ENTER SORT KEY.

DETAILS
SORT KEY : 001

69
DESCRIPTION
ENTER FIELD STATUS GROUP AND SELECT POST
AUTOMATICALLY ONLY

DETAILS
FIELD STATUS GROUP : G004

→ SAVE
→ CONTINUE

70
22. CREATE PLANT
TRANSACTION CODE : OX10

→ NEW ENTRY

DESCRIPTION
ENTER PLANT AND NAME 1 IN THE HIGHLIGHTED AREA

DETAILS
PLANT : plk
NAME 1 : PLANt1

→ SAVE

71
DESCRIPTION
SELECT COUNTRY AND SELECT REGION
DETAILS
COUNTRY : IN (INDIA)
REGION : 11 ( KERALA )

→ CONTINUE
→ SAVE
23. CREATE STORAGE LOCATION
TRANSACTION CODE : OX09

→ ENTER PLANT CODE : plk

72
→ ENTER
→ NEW ENTRIES

DESCRIPTION
ENTER A NEW STORAGE AND DESCRIPTION
DETAILS
PLANT CODE : slk
DESCRIPTION : STORAGE LOCATION
→ SAVE
→ CONTINUE
24. CREATE PURCHASING ORGANISATION
TRANSACTION CODE : OX08

→ NEW ENTRY

73
DESCRIPTION
ENTER PURCHASE ORGANISATION AND DESCRIPTION

DETAILS
PURCHASE ORGANISATION : P07
DESCRIPTION : PURCHASE ORGANISATION

→ SAVE

25. CREATE PURCHASE GROUP

TRANSACTION CODE : OME4

74
→ NEW ENTRY

DESCRIPTION
ENTER PURCHASE GROUP CODE AND DESCRIPTION

DETAILS
PURCHASE GROUP CODE : PGR
DESCRIPTION : PURCHASE GROUP

→ SAVE

75
26. ASSIGN PLANT TO COMPANY CODE
TRANSACTION CODE : OX18

→ NEW ENTRIES

DESCRIPTION
ENTER PLANT CODE AND COMPANY CODE

DETAILS
COMPANY CODE : ak2
PLANT CODE : plk

→ SAVE

76
27. ASSIGN PURCHASE ORGANISATION TO COMPANY
CODE
TRANSACTION CODE : OX01

→ POSITION

→ ENTER COMPANY CODE : ak2

DESCRIPTION
ENTER COMPANY CODE IN THE HIGHLIGHTED AREA IN
ORDER TO ASSIGN PURCHASING ORGANISATION TO
COMPANY CODE.

→ SAVE
77
28. ASSIGN PURCHASE ORGANISATION TO PLANT
TRANSACTION CODE : OX17

→ NEW ENTRIES

DESCRIPTION
ENTER PURCHASE ORAGANISATION CODE AND PLANT CODE
DETAILS
PURCHASE ORG CODE : pok
PLANT CODE : PLk

78
→ SAVE

29. CREATE MATERIAL TYPE

TRANSACTION CODE : OMS2

→ POSITION

DESCRIPTION
ENTER MATERIAL TYPE
DETAILS
MATERIAL TYPE : ROH

79
→ SELECT THE ROW OF RAW MATERIAL AND DOUBLE CLICK
THE QUANTITY VALUE UPDATING.
→ POSITION

DESCRIPTION
ENTER THE VALUATION AREA AND MATERIAL TYPE

80
DETAILS
VALUATION AREA : pl7
MATERIAL TYPE : ROH

→ CONTINUE

→ TICK ON QUANTITY UPDATING AND VALUE UPDATING

→ SAVE
→ CONTINUE
→ GO BACK

81
→ POSITION

DESCRIPTION
ENTER MATERIAL TYPE
DETAIL
MATERIAL TYPE : FERT

82
→ SELECT THE ROW OF FINISHED PRODUCT AND DOUBLE
CLICK THE QUANTITY VALUE UPDATING.

→ TICK ON QUANTITY VALUE UPDATING AND VALUE

UPDATING

→ SAVE
30. DEFINE NUMBER RANGE
TRANSACTION CODE : MMNR

→ CLICK ON MAINTAIN GROUP

83
→ CLICK ON GROUP IN THE MAIN MENU BAR AND SELECT
INSERT

84
DESCRIPTION
ENTER THE DETAILS SUCH AS FROM NUMBER AND TO
NUMBER.
DETAILS
FROM NUMBER : 643000000000000095
TO NUMBER : 643000000000000110

→ ENETR
→ SELECT THE NUMBER RANGE FOR ak2

85
→ DOUBLE CLICK ON FERT FINISHED PRODUCT AND ROH
RAW MATERIALS

→ SAVE
→ CONTINUE
31. MATERIAL MASTER CREATION
TRANSACTION CODE : MM01

DESCRIPTION
HERE WE HAVE TO ENTER MATERIAL, INDUSTRY SECTOR AND
MATERIAL TYPE.

86
DETAILS
MATERIAL : Spintubes
INDUSTRY SECTOR : MECHANICAL ENGINEERING
MATERIAL TYPE : RAW MATERIAL
→ ENTER
→ CONTINUE

87
DESCRIPTION
HERE WE HAVE TO ENTER PLANT AND STORAGE LOCATION
DETAILS
PLANT CODE : plk
STORAGE LOCATION : slk

88
DESCRIPTION
HERE WE HAVE TO ENTER THE MRP TYPE, MATERIAL, BASE
UNIT OF MEASURE AND PURCHASE GROUP.
DETAILS
MRP TYPE : ND ( NO PLANNING )
MATERIAL : Spintubes
BASE UNIT MEASURE : EA ( EACH )
PURCHASE GROUP : akp

89
DESCRIPTION
ENTER THE DETAILS LIKE GR PROCESSING TIME, PLANNED
DELIVERY TIME, SAFETY STOCK AND MINIMUM SAFETY
STOCK.
DETAILS
GR PROCESSING TIME : 3 DAYS
PLANNED DELIVERY TIME : 2 DAYS
SAFETY STOCK : 100

90
MINIMUM SAFETY STOCK : 50

→ ENTER

DESCRIPTION
ENTER VALUATION CLASS AND STANDARD PRICE.
DETAILS
VALUATION CLASS : 3000
STANDARD PRICE : 1000
→ SAVE

91
 VENDOR CREATION

32. CREATE VENDOR ACCOUNT GROUP

TRANSACTION CODE : OBD3

→ NEW ENTRY

DESCRIPTION
HERE WE HAVE TO ENTER THE DETAILS LIKE ACCOUNT
GROUP, NAME AND DOUBLE CLICK ON COMPANY CODE
DATA.
DETAILS
ACCOUNT GROUP : dux

92
NAME : DOMESTIC VENDOR ACCOUNT
GROUP ak2
→ DOUBLE CLICK ON ACCOUNT MANAGEMENT

→ IN THIS STEP TICK RECONCILIATION ACCOUNT AS

REQUIRED ENTRY AND SUPPRESS THE REST.

→ SAVE

93
33. DEFINE NUMBER RANGE FOR VENDOR ACCOUNT
GROUP
TRANSACTION CODE : XKN1

→ CLICK ON CHANGE INTERVALS

→ CLICK ON INSERT INTERVALS

94
→ IN THIS STEP WE HAVE TO ENTER THE FROM NUMBER
AND TO NUMBER.

→ ENTER
→ SAVE

34. ASSIGN VENDOR ACCOUNT AND NUMBER RANGE

TRANSACTION CODE : OBAS

→ POSITION
95
→ ENTER NUMBER RANGE “ ax ”

→ SAVE

35. CREATE VENDOR MASTER DATA

TRANSACTION CODE : XK01

96
DESCRIPTION
HERE WE HAVE TO ENTER THE COMPANY CODE,
PURCHASING ORGANISATIONS, ACCOUNT GROUP.
DETAILS
COMPANY CODE : ak2
PURCHASING ORGANISATION : akp
ACCOUNT GROUP : dux

→ ENTER

97
DESCRIPTION
HERE ENTER THE DETAILS LIKETITLE, NAME, COUNTRY,
REGION

DETAILS
TITLE : COMPANY
NAME : TVS motors
COUNTRY : IN ( INDIA )
REGION : 11 ( KERALA )

98
→ ENTER
→ ENTER
→ ENTER

→ SELECT THE RECONCILIATION ACCOUNT AS SUNDRY

CREDITORS

→ SAVE

PROCUREMENT CYCLE
., RETENTION OF RECQUIREMENT
., SOURCE DETERMINATION
., VENDOR SELECTION
., PURCHASE ORDER PROCESSING
., PURCHASE ORDER MAINTAINING
., GOODS RECEIPT
., INVOICE POSTING
., PAYMENT PROCESSING

36. PURCHASE REQUUSITION

TRANSACTION CODE : ME51N

99
DESCRIPTION
HERE WE HAVE TO ENTER THE DETAILS IN THE HIGHLIGHTED
AREA LIKE MATERIAL, SHORT TEXT, QUANTITY, UNIT,
DELIVERY DATE, PLANT, STORAGE LOCATION, PURCHASE
GROUP.
DETAILS
MATERIAL : Spintubes
QUANTITY : 100
UNIT : EA ( EACH )
DELIVERY DATE : 30.11.2023
PLANT CODE : plk
STORAGE LOCATION : slk
PURCHASE GROUP : akp

→ SAVE
→ WE WILL GET PURCHASE REQUISITION NUMBER

100
 ( 0010013483 )

37. MAINTAIN G/L ACCOUNT FOR AUTOMATING

POSTING

TRANSACTION CODE : OBYC

→ DOUBLE CLICK ON INVENTORY POSTING OR BSX

101
→ TICK ON VALUATION CLASS
→ ENTER
→ SAVE
→ DOUBLE CLICK ONRAW MATERIALS

DESCRIPTION
102
ENTER VALUATION CLASS AND ACCOUNT
DETAILS
VALUATION CLASS : 3000
ACCOUNT : 51

→ SAVE
→ GO BACK

→ DOUBLE CLICK ON COST ( PRICE ) DIFFERENCE

103
→ TICK ON VALUATION CLASS

DESCRIPTION
ENTER VALUATION CLASS AND ACCOUNT

104
DETAILS
VALUATION CLASS : 3000
ACCOUNT : 52
→ SAVE
→ GO BACK

→ DOUBLE CLICK ON GR/IR CLEARING ACCOUNT OR WRX

105
→ TICK ON VALUATION CLASS
→ ENTER
→ SAVE

106
DESCRIPTION
ENTER VALUATION CLASS AND ACCOUNT
DETAILS
VALUATION CLASS : 3000
ACCOUNT : 53

→ SAVE

38. SET A TOLERANCE LIMIT FOR PRICE VARIANT

TRANSACTION CODE : SPRO

→ CLICK SAP REFERENCE IMG

107
→ EXPAND MATERIAL MANAGEMENT
→ EXPAND PURCHASING
→ EXPAND PURCHASE ORDER
→ EXECUTE SET TOLERANCE LIMIT FOR PRICE VARIANT
→ NEW ENTRY

108
DESCRIPTION
ENTER TOLERANCE KEY AND COMPANY CODE
DETAILS
TOLERANCE KEY : PE ( PRICE VARIANT PURCHASING )
COMPANY CODE : ak2

→ SAVE
→ CONTINUE
→ GO BACK
→ NEW ENTRY

109
DESCRIPTION
ENTER TOLERANCE KEY AND COMPANY CODE

DETAILS
TOLERANCE KEY : SE
COMPANY CODE : ak2

→ SAVE
→ CONTINUE

39. SET NUMBER RANGE FOR MATERIAL GROUP AND

GOODS RECEIPT
TRANSACTION CODE : OMBT
110
→ CLICK ON MAINTAIN GROUP

→ SELECT MATERIAL DOCUMENT FOR GOODS RTECEIPT

→ CLICK ON MAINTAIN
→ SAVE

40. ASSIGN NUMBER RANGE FOR GOODS RECEIPT

DOCUMENT
TRANSACTION CODE : OBA7

→ POSITION

111
→ DOUBLE CLICK ON GOODS RECEIPT

→ CLICK ON NUMBER RANGE INFORMATION

112
→ ENTER COMPANY CODE

→ CHANGE INTERVALS

→ INSERT INTERVALS
113
DESCRIPTION
ENTER THE DETAILS LIKE NO, YEAR, FROM NUMBER, TO
NUMBER
NO : 50
YEAR : 2023
FROM NUMBER : 1001
TO NUMBER : 2000

→ ENTER
→ SAVE
→ CONTINUE

41. REQUEST FOR QUATATION

TRANSACTION CODE : ME41

114
DESCRIPTION
HERE WE HAVE TO ENTER THE QUATATION DEADLINE,
PURCHASING GROUP, DELIVERY DATE, STORAGE LOCATION
DETAILS
QUATATION DEADLINE : 13.O7.2023
PURCHASE GROUP : Pok
DELIVERY DATE : 26.07.2023
STORAGE LOCATION : slk

→ CLICK ON REFERENCE PURCHASE REQUISITION

115
DESCRIPTION
ENTER PURCHASE REQUISITION AND PURCHASE GROUP
DETAILS
PURCHASE REQUISITION : 10013493
PURCHASE GROUP : akp
→ ENTER

116
→ ENTER CALL NUMBER 10013493
→ ENTER

→ SELECT PURCHASE REQUISITION ROW AND CLICK ADOPT

+ DETAILS
→ ENTER
→ CLICK ON F7 ON THE KEYBOARD

117
→ HERE WE HAVE TO ENTER THE VENDOR ADDRESS IN THE
HIGHLIGHTED AREA
VENDOR : 4049000041
→ ENTER
→ SAVE
→ RFQ CREATED UNDER THE NUMBER 6000000033

42. PURCHASE ORDER

TRANSACTION CODE : ME21N

118
→ SELECT SELECTION VARIANT AND CLICK REQUEST FOR
QUATATION
→ EXECUTE

→ DOUBLE CLICK THE RFQ NUMBER AND DRAG IT IN TO THE

CART

119
→ ENTER CURRENCY AND NET PRICE VALUE IN THE
HIGHLIGHTED AREA
→ CHECK
→ SAVE
→ HERE WE GET THE PURCHASE ORDER NUMBER
4500017129

43. GOODS RECEIPT

TRANSACTION CODE : MIGO

120
→ ENTER THE PURCHASE ORDER NUMBER IN THE
HIGHLIGHTED AREA

→ TICK ON ITEM OK
→ CHECK
→ SAVE

44. PURCHASE IVOICE

TRANSACTION CODE : MIRO

121
DETAILS
INVOICE DATE : 15.03.2023
POSTING DATE : 15.03.2023
AMOUNT : 10000
TAX AMOUNT : 1800
REFERENCE : 4500017130

122
TEXT : PURCHASE INVOICE

SELECT THE PURCHASE ORDER/SCHEDULING AGREEMENT

AND ENTER PURCHASE ORGANISATION CODE

→ SAVE

CONCLUSION
This presentation shows the working of ERP software and the
enterprise structure of the SAP SE software. SAP SE is an ERP
software that’s helps to the organizations improves their works and
developments. SAP is an integrated software which helps the
business sectors. Here a client contacts the sales team to check the
availability of the product. Then the sales team approaches the
inventory department to check the availability of the product. In the
case the product is out of stock, the sales team approaches the
production planning department to manufacture the products. In the
time the production department check with the inventory department
for availability of raw materials. Then if the raw material is not
available on the inventory the production department will buys the
raw material from the vendors. The work of the organization will be
like this. The organizations are use the integrated or centralized
systems software to reduce this time conceptions and its eliminates
the duplication, discontinuity, and redundancy in data.

123