CEL MM Config

Configuration Document
SAP Materials Management - Configuration Document
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Author Mr. Shikhar Singh
File Name Configuration Document of Material Management
Created 08.08.2019
Last Edited 08.08.2019
Number Of Pages 278
Configuration Client 100
Target Readership CEL Core Team, HOD
Sign
Version Revision Revision Author/ Sign-Off

Date Description Process Owner
V0 08.08.2019 Initial Version
This document has to read in conjunction with the KDS document
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INDEX
1 SAP NetWeaver......................................................................6
1.1 General Settings...........................................................................................................................6
1.1.1 Check Units of Measurement......................................................................................................6
1.1.2 Maintain Calendar........................................................................................................................7
2 Enterprise Structure..............................................................8
2.1.1 Logistics General..........................................................................................................................9
2.1.1.1 Define valuation level..............................................................................................................9
2.1.1.2 Define, copy, delete, check plant.......................................................................................10
2.1.2 Materials Management...............................................................................................................12
2.1.2.1 Maintain storage location......................................................................................................12
2.1.2.2 Maintain purchasing organization........................................................................................15
2.1.3 Logistics – General.....................................................................................................................16
2.1.3.1 Assign plant to company code..............................................................................................16
2.1.4 Materials Management...............................................................................................................17
2.1.4.1 Assign purchasing organization to company code.............................................................17
2.1.4.2 Assign purchasing organization to plant.............................................................................19
3 Logistics – General...............................................................20
3.1 Material Master...........................................................................................................................20
3.1.1 Configuring the Material Master..............................................................................................20
3.1.1.1 Maintain User Settings...........................................................................................................20
3.1.2 Field Selection............................................................................................................................22
3.1.2.1 Assign Fields to Field Selection Groups..............................................................................22
3.1.2.2 Maintain Field Selection for Data Screens.........................................................................23
3.1.2.3 Define Industry Sectors and Industry-Sector-Specific Field Selection..........................24
3.1.2.4 Define Plant-Specific Field Selection and Plant-Specific Screen Selection.................25
3.1.3 Basic Settings..............................................................................................................................27
3.1.3.1 Define Output Format of Material Numbers......................................................................27
3.1.3.2 Maintain Company Codes for Materials Management.......................................................29
3.1.3.3 Material Types.........................................................................................................................31
3.1.3.3.1 Define Attributes of Material Types..........................................................................31
3.1.3.3.2 Define Number Ranges for Each Material Type.......................................................37
3.1.3.4 Define Attributes of System Messages................................................................................42
3.1.4 Settings for Key Fields...............................................................................................................43
3.1.4.1 Messages Define Material Groups.........................................................................................43
3.1.4.2 Define Material Statuses........................................................................................................44
4 Materials Management..........................................................47
4.1 Purchasing...................................................................................................................................47
4.1.1 Environment Data.......................................................................................................................47
4.1.1.1 Define Attributes System Messages....................................................................................47
4.1.2 Material Master...........................................................................................................................48
4.1.2.1 Define Shipping Instructions.................................................................................................48
4.1.2.2 Define Purchasing Value Keys...............................................................................................49
4.1.2.3 Entry Aids for Items Without a Material Master................................................................51
4.1.3 Vendor Master.............................................................................................................................52
4.1.3.1 Define Terms of Payment......................................................................................................52
4.1.3.2 Check Incoterms.....................................................................................................................55
4.1.4 Create Purchasing Groups.........................................................................................................56
4.1.5 RFQ/Quotation............................................................................................................................57
4.1.5.1 Define Number Ranges...........................................................................................................57
4.1.5.2 Define Document Types.........................................................................................................59
4.1.5.3 Define Screen Layout at Document Level..........................................................................60
4.1.6 Purchase Requisition..................................................................................................................63
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4.1.6.3 Release Procedure..................................................................................................................67
4.1.6.3.1 Procedure with Classification.....................................................................................67
4.1.7 Purchase Order...........................................................................................................................82
4.1.7.3 Set Tolerance Limits for Price Variance.............................................................................85
4.1.7.4 Release Procedure for Purchase Orders.............................................................................88
4.1.7.6 Texts for Purchase Orders...................................................................................................108
4.1.7.6.1 Define Text Types for Header Texts........................................................................108
4.1.7.6.2 Define Copying Rules for Header Texts...................................................................110
4.1.8 Contract.....................................................................................................................................112
4.1.8.1 Define Number Ranges.........................................................................................................112
4.1.8.2 Define Document Types.......................................................................................................113
4.1.8.3 Define Screen Layout at Document Level........................................................................115
4.1.9 Account Assignment.................................................................................................................123
4.1.9.1 Maintain Account Assignment Categories.........................................................................123
4.1.9.2 Define Combination of Item Categories/Account Assignment Categories.................127
4.1.10 Define External Representation of Item Categories........................................................129
4.1.10.1 Define Texts for Purchase Order..............................................................................133
4.2 Conditions..................................................................................................................................135
4.2.1 Define condition types............................................................................................................135
4.2.2 Define pricing procedure........................................................................................................137
4.2.3 Define schema groups..............................................................................................................142
4.2.4 Define schema determination................................................................................................144
4.3 External Services Management..............................................................................................145
4.3.1 Service Master...........................................................................................................................145
4.3.1.1 Define Service Category......................................................................................................145
4.3.1.2 Define Number Ranges.........................................................................................................146
4.3.1.3 Field Display for Service Master.........................................................................................149
4.3.1.3.1 Define Field Selection for Service Master (Individual Maintenance).................149
4.3.2 Define Attributes of System Messages..................................................................................151
4.3.3 Define Screen Layout...............................................................................................................153
4.3.4 Source Determination and Default Values for Client.........................................................158
4.3.5 Formulas for Quantity Determination..................................................................................160
4.3.5.1 Define Formulas....................................................................................................................160
4.3.5.2 Specify Names of Formula Variables.................................................................................160
4.4 Inventory Management and Physical Inventory..................................................................161
4.4.1 Define Attributes of System Messages..................................................................................161
4.4.2 Number Assignment.................................................................................................................167
4.4.2.1 Define Number Assignment for Material and Phys. Inv. Docs.......................................167
4.4.3 Field Selection for Goods Movements Initial/Header Screens.........................................168
4.4.4 Settings for Enjoy Transactions.............................................................................................170
4.4.4.1 Settings for Goods Movements (MIGO)..............................................................................170
4.4.4.1.1 Field Selection for MIGO............................................................................................170
4.4.4.1.2 Field Selection per Mvt Type....................................................................................175
4.4.5 Goods Issue / Transfer Postings.............................................................................................193
4.4.5.1 Define Screen Layout...........................................................................................................193
4.4.5.2 Set Up Dynamic Availability Check....................................................................................203
4.4.6 Goods Receipt...........................................................................................................................215
4.4.6.1 Set Tolerance Limits............................................................................................................215
4.4.6.2 Define Screen Layout...........................................................................................................217
4.4.6.3 For GR-Based IV, Reversal of GR Despite Invoice...........................................................229
4.4.7 Reservation................................................................................................................................230
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4.4.7.1 Set Dynamic Availability Check..........................................................................................230

4.4.8 Movement Types.......................................................................................................................234
4.4.8.1 Record Reason for Goods Movements...............................................................................234
4.4.8.2 Copy, Change Movement Types.........................................................................................238
4.4.9 Reporting...................................................................................................................................249
4.4.9.1 Define Field Selection for Material Document List.........................................................249
4.4.10 Split Valuation.........................................................................................................................250
4.4.10.1 Activate Split Valuation.............................................................................................250
4.4.10.2 Configure Split Valuation...........................................................................................251
4.4.11 Account Determination.........................................................................................................262
4.4.11.1 Account Determination without Wizard..................................................................262
4.4.11.1.1 Define Valuation Control...........................................................................................262
4.4.11.1.2 Group Together Valuation Areas..............................................................................263
4.4.11.1.3 Define Valuation Classes............................................................................................266
4.4.11.1.4 Configure Automatic Postings...................................................................................276
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1 SAP NetWeaver
In this section, you define application-independent system settings. These settings
are a prerequisite for handling all business transactions.
1.1 General Settings
1.1.1 Check Units of Measurement
Use :
In applications you often have to make calculations with quantities and physical
units. Units of measurement are needed for their screen display and for internal
conversions (such as kilogram <-> gram, but also centimeter <-> inch). The
international system of units (SI) is used for this. In the standard delivery system,
units of measurement are defined according to the international system of units
(SI).
Procedure :
IMG Menu IMG  SAP NetWeaver  General Settings  Check Units of

Measurement
Transaction Code OMSC
On the initial screen of the maintenance transaction, call the function Unit of
measurements.
Choose appliccable dimension from dropdown
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Select applicable unit & double click on Unit BAG (already created.)
1.1.2 Maintain Calendar
Use :
The public holiday and factory calendar is a central module in the SAP System. It is
used in many areas (e.g. in Logistics and in Human Resources) in the standard
version. A factory calendar is allocated to your plant via another Customizing
function.
The calendar system consists of the following components:
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 Public holidays
Definitions for public holidays: Calculation rule for date, religious
denomination etc.
 Public holiday calendar

Any composition of public holiday rules.
 Factory calendar
Definition of workdays including special regulations, under the assignment
of a particular public holiday calendar.
Procedure :
IMG Menu IMG  SAP NetWeaver  General Settings  Maintain Calendar

Transaction Code OY05
Define a factory calendar including the relevant public holiday calendar:
1. Double-click the option of "Execute function", select the option Public holiday
calendar and choose the function Display.
2. In calendar maintenance, select the option "Factory calendar", and choose the
function Change.
3. Choose the function Insert and make the following entries:
o Factory calendar ID and a descriptive short text
o Period of validity (From year, To year)
o Public holiday calendar ID
o Start no. factory date

Number from which the factory date is incremented for each
workday.
If you do not make an entry, the default value is "0".
4. Decide which days of the week are meant to be workdays.

5. Define special rules if necessary (e.g. plant holidays).
2 Enterprise Structure
In this section, you will learn how to portray the MM specific organizational
structure of your business in the R/3 System. This section is to help you to portray
your company structure, logistics organization units that are provided.
First analyze the structures and procedures in your company, and then match them
to the SAP structures. There are various organization elements defined as examples
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in the standard version. Normally these would not cover all your needs. Map your
elements as required with reference to these examples.
During the realization stage, work with the structures delivered by SAP. In order to
obtain a high degree of identification and acceptance from project members and
user departments from the start, you may have to change some of SAP's
terminology.
You should limit the number of persons authorized to maintain organization

elements. Define the authorization profiles accordingly. As soon as your
organization units are ready, access should be locked so that no other changes can
be made.
2.1.1 Logistics General
2.1.1.1 Define valuation level
Use :
You define the valuation level by specifying the level at which material stocks are
valuated. You can evaluate material stocks at the following levels:
 Plant level
 Company code level
The decision you make is valid for the whole client. You are recommended setting
material valuation at plant level. For CEL, valuation level is set at plant level.
Procedure :
IMG Menu Enterprise Structure  Definition  Logistics - General Define

valuation level
Transaction Code OX14
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2.1.1.2 Define, copy, delete, check plant
Use :
The plant is an operating area or branch or logistic unit within a company. The
plant is assigned to a single company code. A company code can have several
plants. A plant has the attributes like an address, a language and a country. Plant
plays an important role in the functions e.g. material valuation, MRP, production,
costing and plant maintenance etc.
Create your plants with the reference of plant 1001 which is provided by SAP. Each
plants operating under company code ( i.e.1000) is defined as plant. Plant codes
starting with 1001 belongs to company code 1000-CEL.
Procedure :
IMG Menu IMG  Enterprise structure  Definition  Logistic General

Define, copy, delete, check Plant
1. Choose activity – Define Plant

2. Click on the “New Entries’ to create new plants:
Field name Description User action and Note
values
Plant Plant Enter Plant Number
Number
Factory Factory Select Factory
Calendar Calendar calendar as IN.
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Field name Description User action and Note

values
Address
Title Title
Name Name Name of the plant
Search term 1/2 Short name
Address details Enter address
details
Country Country Select country
Region Region Select region / state
Communication Communicati Enter phone no, fax
details on details no, email details
3. Save your entries.
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4. Choose activity – Copy, delete, check plant

5. Go to ‘ Organization Object’ and click option of ‘Copy org. object’
6. Copy from Plant 0001 to newly defined first plant. For further new plants, copy
from existing plant to newly defined plant
Further when you create plant in company code 1000 copy from plant 1001.
You can copy from these reference plants & then all related configuration will
get copied to new plant
7. Save entries. All related tables get copied to newly created plant.
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2.1.2 Materials Management
2.1.2.1 Maintain storage location
Use :
A storage location is the place where stock is physically kept within a plant. There
may be one or more storage locations within a plant. Stocks are managed only on a
quantity basis and not on a value basis at storage location level. Physical
inventories are carried out at storage location level. Storage locations are always
created for a plant.
Procedure :
IMG Menu IMG  Enterprise structure  Definition  Materials management

maintain storage location
Make following entries:

Field Name Description User action and values Note
Plant Plant Select Plant for which storage location to be created
Save entries.
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To maintain storage location address click as below
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Click on “New entries”
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2.1.2.2 Maintain purchasing organization
Use :
From the Materials Management and Purchasing view, the purchasing organization
is responsible for all purchasing activities (including the processing of requests for
quotations and purchase orders, for example).
Corporate-group-wide purchasing:
A purchasing organization is responsible for the purchasing activities of different

company codes. In this case, you do not assign a company code to the purchasing
organization, but specify the company code concerned for each individual
purchasing transaction. You assign plants from different company codes to the
purchasing organization.
Company-specific purchasing:
A purchasing organization is responsible for the purchasing activities of just one

company code. In this case, you assign a company code to the purchasing
organization. The purchasing organization may procure only for this company code.
You assign only plants of the company code concerned to the purchasing
organization.
Plant-specific purchasing:
A purchasing organization is responsible for the purchasing activities of one plant.

In this case, you assign the plant and the company code of the plant to the
purchasing organization. The purchasing organization may procure for this plant
only.
Create new purchasing organization with reference to the purchasing organization

0001. For further new purchasing organization, copy from existing purchasing
organization to newly defined purchasing organization. Purchasing organization
codes starting with 1000 belongs to all the company codes of ATE.
Procedure :
IMG Menu IMG  Enterprise structure  Definition  Materials management

maintain purchasing organization
Make following new entries

Field name Description User action and values Note
Purchasing Purchasing Enter purchasing organization
organization organization code & description
Save entries.
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2.1.3 Logistics – General
2.1.3.1 Assign plant to company code
Use :
In this activity of assignment of plant to company code, you assign each plant to a
company code. A plant can only belong to one company code. Complete
functionality of the system can only be ensured if the plants assigned to a company
code are only those situated in the same country as the company code. It is
therefore recommended that you also create a company code for each country in
which a plant is situated.
Procedure :
IMG Menu IMG  Enterprise structure  Assignment  Logistic general  Assign

Plant to company code
Plant is assigned to company code.
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2.1.4 Materials Management
2.1.4.1 Assign purchasing organization to company code
Use :
You can assign a purchasing organization to one company code. This is company-
specific purchasing.You can assign a purchasing organization to no company code.
This purchasing organization can then procure for all plants assigned to it,
irrespective of the company code to which the plant belongs. Since each plant
must be assigned to a company code, the company code can be determined via the
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plant in each procurement transaction, even if the procuring purchasing

organization is not assigned to a company code. A purchasing organization must be
assigned to one or more plants. This is plant-specific purchasing.
Procedure :
IMG Menu IMG  Enterprise structure  Assignment  Materials Management 

Assign purchasing organization to company code
Make following entries

Purchasing Purchasing Select purchasing org &
organization organization company code for
Company code Company code assignment
Purchasing organization is assigned to company code
1000 – purchase orgnnisation is assigned to any company code as 1000.
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2.1.4.2 Assign purchasing organization to plant
Use :
One purchasing organization can procure for one plant. This is plant-specific
purchasing. One purchasing organization can procure for several plants. Several
purchasing organizations can procure for one plant.
Procedure :
IMG Menu IMG  Enterprise structure  Assignment  Materials Management 

Assign purchasing organization to Plant
Make following entries
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Purchasing Purchasing
organization organization Select purchasing org &
Plant for assignment
Plant Plant
Purchasing organization is assigned to plant
3 Logistics – General
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3.1 Material Master
3.1.1 Configuring the Material Master
3.1.1.1 Maintain User Settings
Use :
In this IMG activity, you can define the following defaults for each user:
 Industry sector: Here, you can define that a particular industry sector is
proposed whenever the user creates a material master record.
 Organizational levels: Here, you can define for a combination of user and
screen sequence the organizational levels that are proposed whenever the
user creates, changes, or displays a material master record, and the
organizational levels and profiles that are proposed whenever the user
creates a material master record.
 Views that are preselected in the Select View(s) dialog box: Here, you can
define for a combination of user and screen sequence that certain views
appear as preselected in the Select View(s) dialog box.
Procedure :
IMG Menu IMG  Logistics – General  Material Master  Configuring the

Material Master  Maintain User Settings
Transaction Code OMT3U
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3.1.2 Field Selection
3.1.2.1 Assign Fields to Field Selection Groups
Use :
To define whether a field is hidden or displayed, or whether an entry is mandatory

or optional in material master maintenance, you must assign the field to a field
selection group. You may assign a field to one field selection group only.
The values of the field selection groups have been pre-assigned as follows:
 001-110 Material master for industry
 111-120 Reserved for customers (except where the values are already in
use)
 121-150 Material master for industry
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 151-210 Material master for retail
 211-240 Reserved for customers
Procedure :
IMG Menu IMG  Logistics – General  Material Master  Field Selection 

Assign Fields to Field Selection Groups
Transaction Code OMSR
New fields can be added and assigned to required selection group by clicking on
the ‘New Entries’.
Example here considered is field reference ZRW2. For this field reference,
selection groups 2, 23, 31, 38, 48 and 92 are made mandatory. Below are the
screen shots which shows relevant fields assigned to above mentioned selection
groups.
3.1.2.2 Maintain Field Selection for Data Screens
Use :
Single field or a set of fields constitutes a selection group. Set of selection groups
constitutes a field reference. For a field reference, required selection group can be
made optional, mandatory, display or hidden. This status of selection group will be
applicable to all fields maintained for that particular selection group. Later this
field reference is attached to required plant if plant specific setting is required.
Procedure :
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Maintain Field Selection for Data Screens
Transaction Code OMS9
You can define or change the field references as required (except for field
references with the prefix SAP which must not be changed).
Creating a Field Reference
1. Choose New entries.

2. Specify a field reference beginning with Y or Z.
3. Select the field selection option for each field selection group as
required.
4. Save your data.
Changing the Field Selection Options for a Field Selection Group
1. Specify the field selection group.

2. Select the field selection option (hide, display, required entry, or
optional entry) for each field reference as required.
3. Save your data.
Changing a Field Reference
1. Double-click the relevant field reference.

2. Change the field selection option for each field selection group as
required.
3. Save your data.
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3.1.2.3 Define Industry Sectors and Industry-Sector-Specific Field

Selection
Use :
In this step, you check the industry sectors and, if necessary, create new ones. You
use the industry sector to determine which fields require an entry when
maintaining material master data and which fields do not (an entry being optional
in this case). The following industry sectors are defined as standard:
 1 for Retail
 A for Plant engin./construction
 C for the chemical industry
 M for mechanical engineering
 P for pharmaceuticals
Procedure :

Define Industry Sectors and Industry-Sector-Specific Field Selection
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3.1.2.4 Define Plant-Specific Field Selection and Plant-Specific Screen

Selection
Use :
In this step, you can define the input attributes of the fields in material master
records differently for each plant and restrict the maintenance statuses allowed
for each plant. As a standard setting, all plants are treated identically in the
standard SAP system. You do not need to make any entries for your plants if the
same screen selection is going to apply to all plants.
When configuring the maintenance status, make sure that only plant-specific views
can be hidden. Since the Basic Data view and Classification view are not plant-
specific, they should not be hidden.
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Procedure :

Define Plant-Specific Field Selection and Plant-Specific Screen
Selection
Transaction Code OMSA
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3.1.3 Basic Settings
3.1.3.1 Define Output Format of Material Numbers
Use :
In this IMG activity, you define the following:
 Input and output length of material numbers
A material number can have a maximum of 18 characters.

 Form in which material numbers are stored
 Output with or without leading zeros
You can make these definitions for each client.
Procedure :
IMG Menu IMG  Logistics – General  Material Master  Basic Settings  Define
Output Format of Material Numbers
Transaction Code OMSL
Define the length of your material numbers. Specify the form in which you wish to
store your material numbers. Specify whether your material numbers are to
contain leading zeros. If the Lexicographical indicator is set, the system ignores the
setting of the Leading zeros indicator.
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3.1.3.2 Maintain Company Codes for Materials Management
Use :
In this step, you maintain your company codes. There are two situations in which
you do this:
 When setting up company codes for materials management
 When changing the Allow back posting or Disallow back posting indicators
To create a material master record, the control record must exist for the company
code for which you want to create your master record.
To set up a company code, enter the current period here. Alternatively, you can do
this with the period closing program.
Procedure:
IMG Menu IMG  Logistics – General  Material Master  Basic Settings 

Maintain Company Codes for Materials Management
Transaction Code OMSY
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In this screen, select company code 1000- CEL ENGINEERING LTD, 2000- CEL INFRA
PROJECT LTD, Etc. and do the following entries, e.g. as below,
Field name Description R/ User action Note
O/C and values
Company code 1000 R
Company Name Chetak R
Enterprise
Year 2019 R Enter required fiscal
year
Period 6 R Enter required
period as per fiscal
year
Abp (Allow back O If ticked then
posting) material documents
can be posted in
previous period of
current fiscal year
Dbp (Allow back X If ticked then
posting) material documents
cannot be posted in
previous period of
current fiscal year
1. Save the settings by choosing Save Icon or choose control + S.
2. To maintain another company code repeat the following steps:
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3.1.3.3 Material Types
3.1.3.3.1 Define Attributes of Material Types
Use :
Whenever you create a material master record, you must assign it to a material
type. This requires you to first define the attributes of each material type. You do
this in this step.
In ATE, new material types have been created with reference to standard material
type ROH. All ATE specific material types start with Z. Material number range is
controlled at material type level.
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You can also maintain the price control for the material type, in customizing for
‘Valuation and Account Assignment’, in the activity ‘Define Price Control for
Material Types’.
For each material type, you can allow movements in quantity to be updated in all
valuation areas, in some valuation areas, or in none. Likewise, you can allow value
flows to be updated in all valuation areas, in some valuation areas, or in none.
Once you have maintained the material types, define the number ranges for each
material type.
Procedure:

Material Types  Define Attributes of Material Types
Select required reference material type and then click on the ‘copy as’ icon to
create new material type.
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Define different attributes for the new material type (example ZCVL):
 In the section of ‘User departments’, select default views which will appear
in MM01, MM02 & MM03 view selection.
 In the section of ‘Internal/External purchase order’, you can define whether
materials can be procured from external vendor or can be produced
internally i.e. production OR both.
 Maintain account category reference for the material type so that only
allowed valuation class will be used while creating material master.
 In the section of ‘Valuation’, default price control can be set i.e. V OR S OR
Blank. Also price control field can be made mandatory for required material
types.In the section of ‘Quantity/value updating’, for each material type,
you can allow movements in quantity to be updated in all valuation areas,
in some valuation areas, or in none. Likewise, you can allow value flows to
be updated in all valuation areas, in some valuation areas, or in none.
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Also to maintain quantity & value update for a particular material, select required
material type and double click on the ‘quantity/value updating’.
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Below are the material types created for CEL Mumbai.
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3.1.3.3.2 Define Number Ranges for Each Material Type
Use :
In this step, you define the type of number assignment and the number range
intervals for material master records. When creating a material master record, you
must assign it a unique number. There are two ways of doing this:
Internal number assignment: In this case, a number within the number range
interval allowed is assigned by the SAP system.
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External number assignment: Here, the user assigns a number within the number
range interval allowed. You can define the intervals for external number
assignment numerically and alphanumerically.
You define the number range intervals for so-called groups. You assign one or more
material types to each group.
 If you assign just one material type to a group, you can define both an
internal and an external number range interval for the material type.
 If you group together more than one material type, you can define an
internal and an external number range interval here too. This allows several
material types to have the same number range intervals
Procedure:

Material Types  Define Number Ranges for Each Material Type
Transaction Code MMNR
Click on ‘Groups’ (pencil icon).
Newly created material types will appear in the section of ‘Not assigned’
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Insert group as shown below,
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Double click on the required material type which is in the list of ‘Not assigned’.
Text color will change from black to blue.
Tick required group and then click on the option ‘Element/Group’.
In CEL for all material types, internal number range of 8 digits is assigned. Against
every combination of material type and material group, number range is
maintained as shown below.
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3.1.3.4 Define Attributes of System Messages
Use :
When processing material master records, the system issues a number of system
messages containing important user information. In this activity, you define how
the SAP system handles these messages. You have the following options:
 The message can be suppressed.
 The message can be displayed as a warning.
 The message can be displayed as an error message.
Procedure:
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IMG Menu IMG  Logistics – General  Material Master  Basic Settings  Define
Attributes of System Messages
Transaction Code OMT4
3.1.4 Settings for Key Fields
3.1.4.1 Messages Define Material Groups
Use :
In this step, you define material groups. With material groups you group materials
with the same attributes or purpose. You can use material groups to limit the scope
of analyses.
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Procedure:
IMG Menu IMG  Logistics – General  Material Master  Settings for Key Fields
 Define Material Groups
Transaction Code OMSF
Below are some of the examples of material groups created.
3.1.4.2 Define Material Statuses
Use :
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The material status determines how a material is handled in different applications

and in business operations (for example, purchasing, materials planning, usage in
bills of material, and so on).
For each material, you can set a material status in the corresponding material
master record. If a material has a material status, the system will issue either a
warning or an error message (depending on which status you have chosen) if the
material is used.
Procedure:
IMG Menu IMG  Logistics – General  Material Master  Settings for Key Fields
 Define Material Statuses
To create new status, click on ‘New Entries’ and give required status code &
description.
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To block material for purchasing, select option ‘Purchasing msg’ and set the
message. To block material for purchasing, select option ‘Inventory mgmt msg’ and
set the message. To block material for purchasing, select option ‘Purchasing msg’
and set the message. Likewise select required function available on the screen and
set the message.
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4 Materials Management
4.1 Purchasing
4.1.1 Environment Data
4.1.1.1 Define Attributes System Messages
Use :
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The In Purchasing, certain system messages containing important information for

users may be issued from time to time (for example, "Net price of purchase order is
higher than material price"). Users can act on the information thus provided.
In this step, you can specify whether the SAP System:
 Suppresses the relevant information
 Issues it as a warning message
 Issues it as an error message
In the case of an error message, processing cannot be continued until user input
has been corrected.
Procedure:
IMG Menu IMG  Materials Management  Purchasing  Environment Data 

Define Attributes of System Messages
Transaction Code OME0
4.1.2 Material Master
4.1.2.1 Define Shipping Instructions
Use :
You can set out certain shipping and packaging instructions in purchase orders
issued to your vendors. When the relevant goods receipts are entered, the extent
to which the vendor has complied with these instructions can then be noted.
In this step, you specify:
 Which packaging and shipping instructions apply to deliveries of ordered

goods
 Whether the instructions are to be included in the PO document printout
 Which criteria apply in assessing the degree of the vendor's compliance with
the instructions
Procedure:
IMG Menu IMG  Materials Management  Purchasing  Material Master 

Define Shipping Instructions
Transaction Code OMEK
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Click on the button “New Entries” to create new shipping instruction. Give code
and description and then save entries.
Select required shipping instruction and then double click on ‘Compliance with
shipping instructions’ so as to maintain score for compliance with the shipping
instruction.
4.1.2.2 Define Purchasing Value Keys
Use :
In the material master record, you can store rules governing:
 The issue of reminders and urging letters (expediters) with respect to nearly
due and overdue deliveries
 The tolerance limits of over- and under deliveries ("overages" and

"underages"). Tolerance limits comes into picture at the time of GR.
 Order acknowledgment requirements for PO items
 Shipping/packaging instructions
In this step, you stipulate these rules in the purchasing value key.
This data appears as default data in purchasing documents and is taken from the
material master record (unless a purchasing info record exists, in which case it is
taken from the latter source).
Procedure:
IMG Menu IMG  Materials Management  Purchasing  Material Master 

Define Purchasing Value Keys
Click on the button “New Entries” to create new Purchasing Value Keys. Give
required number to purchasing value key and specify below values,
Number of Days for First Reminder/Expediter: Number of days representing the

time interval at which reminders or urging letters/messages (may also be termed
"chasers", "hasteners" (UK) or "expediters" (USA)) are to be issued to the vendor. A
negative number of days mean that a reminder is to be issued to the vendor n days
prior to a certain date (for example, the delivery date or the deadline for
submission of quotations). A positive number of days means that a letter or
message urging delivery or submission of a quotation etc. is to be issued n days
after the due date.
Tolerance Limit: Percentage (based on the order quantity) up to which an under-

delivery or over-delivery of this item will be accepted.
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4.1.2.3 Entry Aids for Items Without a Material Master
Use :
In this step, you can assign a purchasing value key and a valuation class to a
material group. The assignment of a purchasing value key provides you with default
values for reminder levels & tolerance limits etc. in purchase order items without a
material master record and without an info record. Also it provides the assignment
of a valuation class to a material group which enables the system to determine
different accounts for the individual material groups. This assignment is required in
case of service purchase orders.
Procedure:
IMG Menu IMG  Materials Management  Purchasing  Material Master  Entry

Aids for Items Without a Material Master
Transaction Code OMQW
All material groups do appear by default in the list. Select your required valuation
class against every material group. That means for every material group only one
valuation class can be assigned.
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4.1.3 Vendor Master
4.1.3.1 Define Terms of Payment
Use :
In this step, you define the terms of payment. Specifically, you define ‘cash
discount percentages’ and ‘periods allowed for payment (discount-qualifying
periods)’. You enter this key in the vendor master record in order to specify terms
of payment for a vendor. You enter the terms of payment for Purchasing
(Purchasing view) and Accounting separately.
When a purchasing document is entered for a vendor, system automatically copies

the information on the payment period and total discount in the document. This
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information is used, to calculate the due date/baseline date of an invoice, or the

total discount allowed etc.
Use separate keys for identical terms of payment with debtors and creditors
respectively. If you use separate keys, changes in the terms of payment for debtors
(customers) in Sales and Distribution do not have any effect on the vendor
(creditor) master data in Purchasing.
Procedure:
IMG Menu IMG  Materials Management  Purchasing  Supplier Master 

Define Terms of Payment
Payment terms starting with 0 are SAP standard ones. Payment terms starting with
V are ATE specific. Create new payment terms with reference to SAP standard.
Below are the activities to create new one,
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Field Description/Activity
Payment Terms Code Enter a code for the payment term. This code will appear
in the drop-down list field for the defined payment terms.
Therefore, you should choose codes that allow you to
easily identify the respective payment term.
Due Date Based On Choose whether you want to base the installment due
date on one of the value dates of the invoice, such as:
· Posting Date.
· Document Date.
· Entry Date.
Sales text Description of the terms of payment
Account type Specify whether terms of payment corresponds to a

vendor or a customer or both
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Fixed day
Calendar day with which the system overwrites the day of
the baseline date for payment of the line item.
Additional Day
Number of months which the system adds to the calendar
month of the baseline date for payment.
Percentage Number of months which the system adds to the calendar
month of the baseline date for payment.
Days from Baseline Date Number of months which the system adds to the calendar
for Payment month of the baseline date for payment.
Explanation Detailed explanations of terms of payment
Save entries.
4.1.3.2 Check Incoterms
Use :
“Incoterms" are international rules for the interpretation of the most commonly
used terms of foreign trade. In particular, the Incoterms regulate the division of
costs, and the transfer of risks.
Procedure:
IMG Menu IMG  Materials Management  Purchasing  Vendor Master  Check

Incoterms
Transaction Code
If on the button “New Entry” is you wish to create any new INCO terms. Give the
code and required description. If location is mandatory for particular INCO term
then tick the check box of ‘Location mandatory’.
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4.1.4 Create Purchasing Groups
Use :
In this step, you can create purchasing groups. A purchasing group can be an
individual or a group of individuals which is responsible for the procurement of
materials or services. Purchasing group can be co-relating with buyer.
Procedure:
IMG Menu IMG  Materials Management  Purchasing  Create Purchasing

Groups
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Define your own purchase groups by clicking on ‘New Entries’. Give required 3 digit
code along with description and then save entries.
4.1.5 RFQ/Quotation
4.1.5.1 Define Number Ranges
Use :
In this step, you maintain the number ranges for the following purchasing
documents:
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 RFQ/quotation
 Purchase order
 Contract
 Scheduling agreement
One 2 character length code i.e. number rage number is defined against which
number range is maintained. Later on in the configuration step of document type,
this number is assigned to purchasing document types.
Procedure:
IMG Menu IMG  Materials Management  Purchasing  RFQ/Quotation  Define

Number Ranges
Transaction Code OMY6
Activities to maintain number range:

Click on the ‘Intervals’ with pencil icon. Click the button of ‘Insert Interval’.
Choose a number range and note its number.
Enter the number of the desired number range.
Below are the number ranges for RFQ/quotation,
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4.1.5.2 Define Document Types
Use :
The SAP System manages RFQs and quotations as documents. Different document
types can be configured in this step so as to have different number ranges and
different screen layout. Different documents type will help in extracting reports
and providing authorizations to users.
Procedure:

Document Types
Transaction Code OMEA
In this step, you need do follow below activities if wish to create new
RFQ/Quotation document type:
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 Create new document type with reference to SAP standard RFQ document
type AN. Mention description of the new document type.
 Define item interval which determines the size of the steps between the
default item numbers in any RFQ/Quotation.
 Assign document types to a number range group. Number that determines

how documents are to be numbered by the system. It indicates which
number range is relevant for a document type. When creating a document
with internal number assignment, the system assigns a number that lies
within the appropriate number range.
 Allowed item categories: Select required document type and double click on
the ‘Allowed item categories’ in the Dialog Structure window. Add item
category by clicking button of ‘New Entry’. Item categories maintained here
are only allowed while creating a document.
 Define admissible follow-on document types: Against a particular RFQ

document type, which PR document type are allowed is maintained here.
Select required document type and double click on the ‘Link purchase
requisition’ in the Dialog Structure window. Add required PR document type
by clicking button of ‘New Entry’.
 Field selection: Determines, for the relevant purchasing document type,

which attributes the fields of the purchasing document are to have.
Generally document type code and the field selection key is same.
 Save entries.
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4.1.5.3 Define Screen Layout at Document Level
Use :
For all external purchasing documents and purchase requisitions, you 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
Procedure:

Screen Layout at Document Level
List of all field selection keys maintained against a purchasing document type in
the configuration step ‘Define document type’ will appear by default here. Double
click on the required field selection key. Field selection groups e.g. Basic Data,
Item, Reference data, header, GR/IR Control etc will appear. Double click on the
every field selection group one by one. A list of fields pertaining to that field
selection group will be displayed. Against every field, make entry whether field is
Required OR Optional OR Display only.
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4.1.6 Purchase Requisition
Use :
In this step, you maintain the number ranges for the purchase requisitions. One 2
character length code i.e. number rage number is defined against which number
range is maintained. Later on in the configuration step of document type, this
number is assigned to purchasing document types.
Procedure:
IMG Menu IMG  Materials Management  Purchasing  Purchase Requisition

Define Number Ranges

Below are the number ranges for PR document types,
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Use :
The SAP System manages purchase requisitions as documents. Different document

types can be configured in this step so as to have different number ranges and
different screen layout. Different documents type will help in extracting reports,
defining release strategies and providing authorizations to users.
Procedure:
IMG Menu IMG  Materials Management  Purchasing  Purchase Requisition 

Define Document Types
Transaction Code OMEB
In this step, you need do follow below activities if wish to create new PR document
type:
 Create new document type with reference to SAP standard PR document

type NB. Mention description of the new document type.
default item numbers in any PR.

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 Define admissible follow-on document types: Against a particular PR

document type, which RFQ & PO document types are allowed is maintained
here. Select required document type and double click on the ‘Link purchase
requisition’ in the Dialog Structure window. Add required RFQ & PO
document type by clicking button of ‘New Entry’.

 Save entries.
Below are the document types created for CEL
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4.1.6.3 Release Procedure
4.1.6.3.1 Procedure with Classification
Activity: Edit Characteristics
Use :
In this step, you create characteristics for a release procedure with classification.
Classification characteristics constitute the criteria for a release condition. If the
criteria of a release condition are satisfied, the associated release strategy is
assigned to the purchase requisition.
In communication structure CEBAN, you will find all the fields that can be used as
characteristics for a release condition (e.g. WERKS for the Plant and GSWRT for the
value of the item). Check which fields you wish to use as characteristics for your
release strategy. To do so, choose Tools -> ABAP Workbench -> Development ->
Dictionary, enter CEBAN in the Database table field, and choose Display.
All purchasing document release strategies are configured under standard class
type 032.
For CEL, characteristics used for PR release strategy are as below,
Table Name CEBAN Field Name WERKS (Plant)
Table Name CEBAN Field Name GFWRT (Total Value)
Table Name CEBAN Field Name BSART (PR Type)
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Procedure:

Release Procedure Procedure with ClassificationEdit
Characteristics
Transaction Code CT04
Activities to be performed for creating characteristics:

 Create a characteristic for each field from communication structure CEBAN
that is to be a criterion for your release strategy. You have a free choice of
names for the characteristic.
 Specify the table name and the field name on the tab page Additional data
(e.g. table CEBAN for field GSWRT).
Do not select any of the indicators in the area Procedure for value
assignment on the tab page Additional data. Only if none of these indicators
is selected you can assign a value or value interval to the characteristic
when defining your release strategy. When you create a characteristic for a
currency-dependent field (e.g. GSWRT), a box appears in which you must
enter the currency for this value. The system then converts the currency of
the requisition into this currency.
 Check the data for the chosen field on the tab page Basic data.
If you wish to enter several values or value intervals for a characteristic,
select the multiple values indicator in the Value assignment area.
Value intervals can only be specified for numerical values, e.g. an interval
of Rs. 10,000 to Rs. 15,000 for the value of a requisition item.
 Check the texts for the field on the tab page Descriptions.
 You can maintain default values for a characteristic on the tab page Values.
If you maintain values here, they will be displayed as input help under
Create Procedure with Classification -> Release Strategy -> Classification. If
you want to use not only the values from the input help but also other
values, you must select the Additional values indicator.
You can also specify ' ' as a default value. For example, for account
assignment: ' ' for stock material, 'k' for cost center, and 'a' for asset.
 If you want to restrict the use of a characteristic to certain class types,
specify the relevant class types on the tab page Restrictions (e.g. class type
032 for the release strategy).
Activity: Edit Classes
Use :
In this step, you create classes for a release procedure with classification. In a
class, you group the characteristics that are to constitute a release condition for a
release strategy. In the step “Set up Procedure with Classification", you assign this
class to the release procedure. Classes are created under class type 032 which
standard one. For PR, class created is “PR_RELEASE”.
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Procedure:

Release Procedure Procedure with ClassificationEdit Classes
Transaction Code CL02
 Create a class of class type 032. You have a free choice of names for the
new class (e.g. PR_RELEASE for the release of purchase requisitions).
 Assign a description for the new class on the tab page Basic data.
 You can view an error message if different characteristics with identical
values have been assigned to a class. To do so, select the Check with error
message indicator in the area same classification.
 If appropriate, maintain search terms for your class on the tab page Key
words.
 Assign your characteristics to the class on the tab page Characteristics.
Activity: Set Up Procedure with Classification
Use :
In this step, you set up the release procedure with classification. You can also link
the release procedure to workflow. (Note that in this context "releasing" means
"approving” or giving the "green light" to a document).
Procedure:

Release Procedure Procedure with Classification Set Up Procedure
with Classification
Transaction Code SPRO
For classification below are the perquisites,
Release Groups: Create new release groups by clicking button of ‘New Entries’.
 Give code for release group along with description. Click the tick option of
OverReqRel which determines that PR will be released at header level. That
means all line items in PR will get released collectively and not individually.
Assign a class, thus defining release conditions for the release procedure.
You must assign the same class to all release groups with the same type of
release (item-wise or overall).
For CEL, below one PR release group are created.
R1
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Release codes: Create new release codes by clicking button of ‘New Entries’.
 Here you create the release codes that you need for your release strategy
and assign the codes to your release group. If a release code is to be used in
workflow, indicate this accordingly in the Workflow field by selecting 1.
Release indicator: Create new release indicator by clicking button of ‘New Entries’.
A release indicator shows the release status of a purchase requisition. Predefined

release indicators which you can use for your release strategy are available in the
standard system. If you need additional release indicators, you must maintain the
following:
 Release status: In the Details area, you specify the status a requisition with
this release indicator is to have. For example, in the standard system it is
possible to solicit quotations in respect of a requisition with release
indicator "1 - RFQ".
 Field selection key: Via the field selection key, you specify which fields in a
purchase requisition with this release indicator can be changed or must be
populated, for example.
 Changes after start of release process: With the Changeability indicator,
you specify the effects of changes to a requisition. For example, certain
changes may require a new release strategy to be determined for the
requisition. Via the Value change field, you can cause the release strategy
to be re-started if the value of a purchase requisition item is increased by
more than a certain percentage (e.g. 10%). To do so, set the Changeability
indicator to "4 - Changeable, new release in case of new strategy or value
change" and enter a percentage in the Value change field.
Release Strategies: Create new release strategies by clicking button of ‘New

Entries’.
Create a release strategy for your release group and assign your release codes
accordingly. Release strategy constitutes of 4 parameters as explained below,
1) Release prerequisites: 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 is as
below,
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] -
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In this release strategy, the codes 01, 02, 03, and 04 must successively
release the purchase requisition. 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 purchase requisition
must be released via codes 01 and 02 before it can be released via code 03.
2) Release statuses: Here you specify the status a requisition has after certain
release points have effected release. Specify which release indicator/status
a requisition is to have after having been released via a certain release
code.
3) Classification: In classification, you maintain the values assigned to the
characteristics. Via the characteristics and their values, you specify the
requisitions to which your release strategy is assigned. Maintain values
(individual values or intervals) for your characteristics.
4) Release simulation: The release simulation function enables you to check
which status a requisition will achieve with this 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 PR now has as a result of this release.
5) Workflow: You only have to perform this step if you wish to link this release
procedure to workflow. Assign a processor ID to the workflow-relevant
release codes. The processor (member of staff responsible for processing
the document) will then receive a work item when he or she is required to
effect release.
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Use :
the input attributes of fields by using field selection keys. A field selection key
determines whether a field is:
 Suppressed
Procedure:
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Define Screen Layout at Document Level
Transaction Code OMF2
Select required field selection and click on the details button. Below are the field
selections created for CEL – one for each PR type.
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4.1.7 Purchase Order
Use :
In this step, you maintain the number ranges for the purchase orders. One 2
character length code i.e. number rage number is defined against which number
range is maintained. Later on in the configuration step of document type, this
number is assigned to purchasing document types.
Procedure:
IMG Menu IMG  Materials Management  Purchasing  Purchase Order

Define Number Ranges

Below are the number ranges for PO document types,
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Use :
The SAP System manages purchase orders as documents. Different document types
can be configured in this step so as to have different number ranges and different
screen layout. Different documents type will help in extracting reports, defining
release strategies and providing authorizations to users.
Procedure:
IMG Menu IMG  Materials Management  Purchasing  Purchase order 

Define Document Types
Transaction Code OMEC
In this step, you need do follow below activities if wish to create new PO document
type:
 Create new document type with reference to SAP standard PO document

type NB. Mention description of the new document type.
default item numbers in any PO.

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 Define admissible follow-on document types: Against a particular PO

document type, which PR document types are allowed is maintained here.
Select required document type and double click on the ‘Link purchase
requisition’ in the Dialog Structure window. Add required PR document type
by clicking button of ‘New Entry’.

 Save entries.
Below are the document types created for Chetak Enterprise.
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4.1.7.3 Set Tolerance Limits for Price Variance
Use:
In this step, you define the tolerance limits for price variances. 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
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System, the types of variance are represented by the tolerance keys. For each
tolerance key, you can define percentage and value-dependent upper and lower
limits per company code.
Procedure:
IMG Menu IMG  Materials Management  Purchasing Purchase Order Set

Tolerance Limits for Price Variance
Transaction Code OMEU
The standard SAP System supplied contains the following tolerance keys:
 PE Price variance, Purchasing
o Tolerance limit for system message no. 207. This message appears if
the specified effective price exceeds the predefined tolerances
when compared with the material price.
 SE Maximum cash discount deduction, Purchasing
o Tolerance limit for system message no. 231. This is a warning

message, which appears when the specified cash discount
percentage exceeds the predefined tolerances.
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4.1.7.4 Release Procedure for Purchase Orders
Activity: Edit Characteristics
Use :
In this step, you create characteristics for a release procedure with classification.
Classification characteristics constitute the criteria for a release condition. If the
criteria of a release condition are satisfied, the associated release strategy is
assigned to the purchase order.
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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 document type and
GNETW for the net value of the item). Check which fields you wish to use as
characteristics for your release strategy. To do so, choose Tools -> ABAP
Workbench -> Development -> Dictionary, enter CEKKO in the Database table field,
and choose Display.
All purchasing document release strategies are configured under standard class
type 032.
For CEL, characteristics used for PO release strategy are as below,
Table Name CEKKO Field Name GNETW (Net Price)
Table Name CEKKO Field Name BSART (Document type)
Table Name CEKKO Field Name EKGRP (Purchase group)
Table Name CEKKO Field Name EKORG (Purchase Org)
Table Name CEKKO Field Name WERKS (Plant)
Procedure:

Release Procedure for Purchase Orders Edit Characteristics
Transaction Code CT04

 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.
 Specify the table name and the field name on the tab page Additional data
(e.g. table CEKKO for field WERKS).
Do not select any of the indicators in the area Procedure for value
assignment on the tab page Additional data. Only if none of these indicators
is selected you can assign a value or value interval to the characteristic
when defining your release strategy. When you create a characteristic for a
currency-dependent field (e.g. GSWRT), a box appears in which you must
enter the currency for this value. The system then converts the currency of
the requisition into this currency.
 Check the data for the chosen field on the tab page Basic data.
If you wish to enter several values or value intervals for a characteristic,
select the multiple values indicator in the Value assignment area.
 Check the texts for the field on the tab page Descriptions.
 You can maintain default values for a characteristic on the tab page Values.
If you maintain values here, they will be displayed as input help under
Create Procedure with Classification -> Release Strategy -> Classification. If
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you want to use not only the values from the input help but also other
values, you must select the Additional values indicator.
You can also specify ' ' as a default value. For example, for account
assignment: ' ' for stock material, 'k' for cost center, and 'a' for asset.
 If you want to restrict the use of a characteristic to certain class types,
specify the relevant class types on the tab page Restrictions (e.g. class type
032 for the release strategy).
Activity: Edit Classes
Use :
In this step, you create classes for a release procedure with classification. In a
class, you group the characteristics that are to constitute a release condition for a
release strategy. In the step “Set up Procedure with Classification", you assign this
class to the release procedure. Classes are created under class type 032 which
standard one. For PO, class created is “PO_REL-PURCHASE ORDER RELEASE
STRATEGY”.
Procedure:

Release Procedure for Purchase Orders Edit Classes
Transaction Code CL02
 Create a class of class type 032. You have a free choice of names for the
new class
 Assign a description for the new class on the tab page Basic data.
 You can view an error message if different characteristics with identical
values have been assigned to a class. To do so, select the Check with error
message indicator in the area same classification.
 If appropriate, maintain search terms for your class on the tab page Key
words.
 Assign your characteristics to the class on the tab page Characteristics.
Activity: Define Release Procedure for Purchase Orders
Use :
In this step, you set up the release procedure with classification. You can also link
the release procedure to workflow. (Note that in this context "releasing" means
"approving” or giving the "green light" to a document).
Procedure:

Release Procedure for Purchase Orders  Define Release Procedure
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for Purchase Orders

For classification below are the perquisites,
Release Groups: Create new release groups by clicking button of ‘New Entries’.
 Give code for release group along with description and assign to release
class.
For, below two PO release groups are created.
R2 PO Release
Release codes: Create new release codes by clicking button of ‘New Entries’.
 Here you create the release codes that you need for your release strategy
and assign the codes to your release group. If a release code is to be used in
workflow, indicate this accordingly in the Workflow field by selecting 1.
Release indicator: Create new release indicator by clicking button of ‘New Entries’.
A release indicator shows the release status of a purchase order. Predefined

release indicators which you can use for your release strategy are available in the
standard system. If you need additional release indicators, you must maintain the
following:
 Release status: In the Details area, you specify the status a PO with this
release indicator is to have. Release indicators defined are as 1: Not
Approved, R: Approved and U: Under Approval.
 % value change: Specifies the percentage by which the value of the
requisition may be increased (as a result of a change to the requisition)
after the release procedure has begun.
Release Strategies: Create new release strategies by clicking button of ‘New

Entries’.
Create a release strategy for your release group and assign your release codes
accordingly. Release strategy constitutes of 4 parameters as explained below,
1) Release prerequisites: 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 is as
below,
The following table shows release prerequisites for a strategy with four
release codes:
Code/Release prerequisite
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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 purchase requisition. 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 purchase requisition
must be released via codes 01 and 02 before it can be released via code 03.
2) Release statuses: Here you specify the status a requisition has after certain
release points have effected release. Specify which release indicator/status
a requisition is to have after having been released via a certain release
code.
3) Classification: In classification, you maintain the values assigned to the
characteristics. Via the characteristics and their values, you specify the
requisitions to which your release strategy is assigned. Maintain values
(individual values or intervals) for your characteristics.
4) Release simulation: The release simulation function enables you to check
which status a requisition will achieve with this 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 PR now has as a result of this release.
5) Workflow: You only have to perform this step if you wish to link this release
procedure to workflow. Assign a processor ID to the workflow-relevant
release codes. The processor (member of staff responsible for processing
the document) will then receive a work item when he or she is required to
effect release.
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Use:
 Suppressed
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Procedure:
IMG Menu IMG  Materials Management  Purchasing  Purchase Order 

Define Screen Layout at Document Level
Select required field selection and click on the details button. Below are the field
selections created for CEL – one each for one PO type.
Screen of field selection key will open. Double click on every key and select the
required status for every field pertaining to that key.
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4.1.7.6 Texts for Purchase Orders
4.1.7.6.1 Define Text Types for Header Texts
Use:
In this section, you can check the available text types and if required create your
own text types.
Procedure:
IMG Menu IMG  Materials Management  Purchase Order Texts for Purchase
Orders Define Text Types for Header Texts
Click on the button ‘New Entry’ to create new purchase order text.
Below are standard Text names.
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At CEL, we renamed it as below
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4.1.7.6.2 Define Copying Rules for Header Texts
Use:
In this step, you define the copying rules for header texts in purchase orders. You
use copying rules to determine which texts can be adopted from other objects (for
example, RFQs) to the header text of the purchase order. You link text types in the
purchase order with text types in other objects. You can adopt header texts from
the following objects:
 RFQ / Quotation
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 Purchase order
 Contract
 Vendor master
Procedure:
IMG Menu IMG  Materials Management  Purchase Order Texts for Purchase
Orders Define Copying Rules for Header Texts
If you want to modify these links to fit your requirements, proceed as follows:
1. Select the text type required and choose text linkages.

2. Enter the source object required (for example, RFQ) and the source text
(for example, header text).
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4.1.8 Contract
Use :
In this step, you maintain the number ranges for the contracts. One 2 character
length code i.e. number rage number is defined against which number range is
maintained. Later on in the configuration step of document type, this number is
assigned to contract document type.
Procedure:
IMG Menu IMG  Materials Management  Purchasing Contract  Define

Number Ranges

Below are the number ranges for contract document types,
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Use :
The SAP System manages contracts as documents. Different document types can be
configured in this step so as to have different number ranges and different screen
layout. Different documents type will help in extracting reports, defining release
strategies and providing authorizations to users.
Procedure:
IMG Menu IMG  Materials Management  Purchasing  Contract Define

Document Types
Transaction Code OMEF
In this step, you need do follow below activities if wish to create new contract
document type:
 Create new document type with reference to SAP standard contract

document type MK or WK. MK is quantity contract and WK is value contact.
Mention description of the new document type.
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default item numbers in any contract.

 Define admissible follow-on document types: Against a particular contract

document type, which PR & OA document types are allowed is maintained
here. Select required document type and double click on the ‘Link purchase
requisition’ in the Dialog Structure window. Add required PR & OA
document type by clicking button of ‘New Entry’.
 Field selection: Determines, for the relevant contract type, which

attributes the fields of the contract are to have. Generally document type
code and the field selection key is same.
 Save entries.
Below document types for contract has been created for ATE.
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Use:
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 Suppressed
When the screen is assembled in the dialog transactions, for example, Change
Purchase Order, certain field selection keys are combined.
Procedure:
IMG Menu IMG  Materials Management  Purchasing Contract Define Screen

Layout at Document Level
Transaction Code OMFA
Select field selection and click on the details button.
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Screen of field selection key will open. Double click on every key and select the
required status for every field pertaining to that key.
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4.1.9 Account Assignment
4.1.9.1 Maintain Account Assignment Categories
Use:
In this step, you can change the attributes of the account assignment categories for
purchasing documents.
Procedure:
IMG Menu IMG  Materials Management  Purchasing Account Assignment

Maintain Account Assignment Categories
Select required SAP standard account assignment category and create new one by
clicking on copy button. Give required code and description.
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4.1.9.2 Define Combination of Item Categories/Account Assignment

Categories
Use:
In this step, you can specify the allowed combinations of item categories and
account assignment categories.
Procedure:
IMG Menu IMG  Materials Management  Purchasing Account

AssignmentDefine Combination of Item Categories/Account
Assignment Categories
Transaction Code OMG0
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If you have created new account categories, you maintain the combinations for the
item categories here by clicking on button ‘New entry’.
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4.1.10 Define External Representation of Item Categories
Use:
In this step, you define how the item categories are to be represented on the user
interface. Item categories govern how a material is procured. For example, the
item category "subcontracting" determines that components have to be provided to
the vendor from whom you order a certain product/assembly. Internally, item
categories are represented by a one-character field (e.g. '3' for subcontracting).
Various IDs are used for the representation on the user interface (e.g. 'L' for
subcontracting). These IDs are supplied in the standard system and can be changed
if necessary.
Procedure:
IMG Menu IMG  Materials Management  Purchasing Define External

Representation of Item Categories
Transaction Code OMH4
Select required SAP standard item category and create new one by clicking on copy
button. Give required code and description.
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4.1.10.1 Define Texts for Purchase Order
Use:
In this step, you define the texts for purchase order messages.
Procedure:
IMG Menu IMG  Materials Management  Purchasing Messages Texts for

Messages Define Texts for Purchase Order
If you wish to use your own texts when outputting a purchasing document, proceed
as follows:
1. In the step Adjust Form (Layout Set) for Purchasing Documents, check to see at
which points you can store your own texts in the standard form MEDRUCK.
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2. Create a new entry under the desired text type (e.g. texts for the document
item) and enter the following data:
o Print operation (e.g. new printout or printout of changes (change
notice))
o Purchasing document type and item category
o Text object, text ID and the text name
o Print sequence in which the text is to be outputted
3. Click the Edit Text button to enter the desired text using the SAP script editor.
Note: Assign unique names to your texts (e.g. names containing the key for
the purchasing organization).
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4.2 Conditions
4.2.1 Define condition types
Use:
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.
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You also have the option of entering conditions requiring subsequent (end-of-
period rebate) settlement. A separate topic "Subsequent Settlement" in the
Purchasing IMG covers this functionality.
For condition types for which you wish to maintain conditions with their own
validity period, you must specify an access sequence. In this way, you stipulate the
fields the SAP System is to check in its search for a valid condition record.
Example:
An access sequence has been assigned to condition type PB00 so that prices can be
maintained in purchasing info records and contracts.
No access sequence has been assigned to condition type RC00 because it does not
have a validity period of its own. In the standard system, it is always maintained
simultaneously with the price and is valid for the period of the price
Procedure -
IMG Menu IMG  Materials Management  Purchasing  Conditions  Define

Price Determination Process  Define Condition Types
Transaction Code M/06
Check the standard condition types & add conditin types based on our requirement.
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4.2.2 Define pricing procedure
Use:
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.
Procedure -

Price Determination Process  Define Pricing Procedures
Transaction Code M/08
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Copy standard pricing procedure based on need & define new pricing procedures
with new name.
Created three pricing procedures to meet business requirement
ZRM000 - Domestic Pricing Procedure
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ZM2000 - STO Schema
ZRM001 - Import Pricing Procedure
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4.2.3 Define schema groups
Use:
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These allow you to group together purchasing organizations that use the same
calculation schema.
You can also use them to group together suppliers for whom the same calculation
schema is valid.
(Note: calculation schemas may also be referred to as "pricing procedures".)
Procedure:

Price Determination Process  Define Schema Groups
Transaction Code
Define schema group suppliers –
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Define schema group for purchase organizations
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Assign Schema Groups to Purchasing Organizations
4.2.4 Define schema determination
Use:
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

supplier 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.
Procedure:

Price Determination Process  Define Schema Determination
Transaction Code
Determine Calculation Schema for Standard Purchase Orders
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Determine Schema for Stock Transport Orders
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4.3 External Services Management
4.3.1 Service Master
4.3.1.1 Define Service Category
Use:
In this step, you define the 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.
Procedure:
IMG Menu IMG  Materials Management  External Services Management

Service Master Define Service Category
Transaction Code OMV1
With the reference of standard service category, following service categories have
been created for CEL. In this step you give code to service category along with
their description. Also account category reference is also attached service
categories.
Use:
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In this section, you maintain the number ranges for the service master record.
Procedure:

Service Master Define Number Ranges
Transaction Code ACNR
Maintain the number ranges for the service master record. Create the individual
groups with the number intervals. Assign the service categories to these groups.
Click on button ‘Groups’ with pencil icon.
All newly created service categories will appear under heading ‘Not assigned’.
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Go to ‘Group’ in menu bar and insert a new group.
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Give group name and assign available number range against it.
Double click on the required service category which is not assigned to nay group.
After double click it, text will turn into blue color. Then select newly created
group and click on the button ‘Element/Group’. With this newly created service
category and group will be assigned to each other. Save entries.
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4.3.1.3 Field Display for Service Master
4.3.1.3.1 Define Field Selection for Service Master (Individual

Maintenance)
Use:
In this step, you can set up the field selection for the maintenance of individual
service master records.
Procedure:

Service Master Field Display for Service MasterDefine Field
Selection for Service Master (Individual Maintenance)
Transaction Code OXA2
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4.3.2 Define Attributes of System Messages
Use:
In External Services Management, a number of system messages containing

important information for users may be issued. Users can process this information
further. In this step, you can define whether the SAP System:
 Suppresses this information
 Issues it in the form of a warning
 Issues it in the form of an error message
In the event of an error message, you can only continue your processing if
you correct your input.
Procedure:

Define Attributes of System Messages
Transaction Code OMYB
Process the list of messages by assigning each one to a message category.
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4.3.3 Define Screen Layout
Use:
In this section, you maintain the number ranges for the service master record.
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Procedure:

Define Screen Layout
Transaction Code ML90
Double click on ‘Purchase Requisition’. Screen of ‘customizing view for service:

field selection’ will open with list of ‘Field selection keys’. Double click on key one
by one and maintain the settings for fields.
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Likewise fields selection will be don’t for purchase order and service entry sheet.
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4.3.4 Source Determination and Default Values for Client
Use:
In this step, you make the settings for the client.
Procedure:

Source Determination and Default Valuesfor Client
Line No. Increment in Serv. Specifications: Here you enter the desired line number
increment for the set of service specifications. Incremental interval is maintained
at 10.
Unit of Measure at Item Level: Unit of measure of service at line item level is
maintained as AU.
Reduction of purchase requisition commitment value: If this option is ticked then

against a single service PR, multiple service PO can be created.
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4.3.5 Formulas for Quantity Determination
4.3.5.1 Define Formulas
Use:
In this step, you can define formulas by assigning a formula key, and defining the
actual calculation formula and the base unit of measure in which the result of the
calculation is to be outputted. If you wish, you can enter a longer text describing
the formulas in more detail.
Procedure:

Formulas for Quantity DeterminationDefine Formulas
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Click on button ‘New Entry’ to define formulas. Specify Formula number, Calc.
Formula, Base UoM and description and then save entry.
4.3.5.2 Specify Names of Formula Variables
Use:
In this step, you can enter descriptions and units of measure for the previously
defined formulas.
Procedure:

Formulas for Quantity Determination Specify Names of Formula
Variables
Click on button ‘New Entry’ to Specify Names of Formula Variables. Specify

Formula number, Variable, Base UoM and description and then save entry.
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AT CEL, we have not defined an variable formula
4.4 Inventory Management and Physical Inventory
4.4.1 Define Attributes of System Messages
Use:
In Inventory Management, the system issues messages in the course of transactions

to inform the user about certain system responses or data situations (for example,
a message indicating that the order item is flagged "delivery completed").
In this step, you can define for the type of system message for a version:
 warning message
 error message
 no message
Procedure:
IMG Menu IMG  Materials Management  Inventory Management and Physical

Inventory Define Attributes of System Messages
Transaction Code OMCQ
Select activity of ‘Settings for System Messages’. List of system messages will open.
Set category of message as E-Error, W-Warning or P-Dialog Box.
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4.4.2 Number Assignment
4.4.2.1 Define Number Assignment for Material and Phys. Inv. Docs
Use:
In this step, you maintain the number assignment for the following documents:
 material documents
 physical inventory documents
The number assignment for these documents is not to be confused with the number
assignment for accounting documents which you completed in the step Define
number assignment for accounting documents. The number assignment for
accounting documents depends on the document type which is allocated to the
transaction.
The number assignment for material documents and physical inventory documents
depends on the transaction/event type which is also allocated to each transaction
in Inventory Management. The transaction/event types are divided into groups of
number ranges. A number range interval has to be defined for each group.
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In the standard system, the transaction/event types and number range intervals
are preset for Inventory Management as follows:
 Physical inventory documents: Number range interval from 0100000000 to

0199999999
 Material documents for goods movements and inventory differences:
Number range interval from 4900000000 to 4999999999
 Material documents for goods receipts: Number range interval from
5000000000 to 5999999999
For performance reasons, 10 document numbers are buffered on the application

server. In this way, gaps in number assignment can occur.
Procedure:

Inventory Number AssignmentDefine Number Assignment for
Material and Phys. Inv. Docs
Transaction Code OMBT
Actions:
 Check whether you can use the predefined groups and number intervals.
 If you want to change any groups, proceed as follows:
a) Choose Group -> Maintain.

b) Select the transaction/event type that you want to re-allocate.
c) Place the cursor on the new group and choose Edit -> Assign
element group).
d) Save your settings.
 If you want to define new groups, proceed as follows:
a) Select Group -> Maintain.

b) Then select Group -> Insert.
c) Enter a text for the number range group.
d) Maintain the number interval for this number range group.
e) Allocate the transaction/event types to the number range groups
(see step 2).
 If you want to maintain new number range intervals for an existing group,
proceed as follows:
a) Choose Group -> Maintain.

b) Select a group and choose Interval -> Maintain.
c) Choose Edit -> Insert year.
d) Maintain the number interval for the new fiscal year.
If you do not want to use the year-related number assignment
method, enter 9999 in the field Year.
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4.4.3 Field Selection for Goods Movements Initial/Header Screens
Use:
In this step, you define the field selection for goods movements initial and header
screens. Note that the field selection for the item screens depends on the
movement type and is configured in separate steps (see Define screen layout).
Example
Using the general field selection, you can make the following settings:
 you can define the delivery note and, if required, bill of lading fields as
required fields if you work with evaluated receipt settlement (ERS)
 you can insert the goods receipt/issue slip field if you work with goods
receipt/issue slips (only in Italy)
 you can switch off the print indicators completely or just for certain
transactions if you do not print goods receipt/issue slips in Inventory
Management
Procedure:

Inventory Field Selection for Goods Movements Initial/Header
Screens
Transaction Code OMJN
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4.4.4 Settings for Enjoy Transactions
4.4.4.1 Settings for Goods Movements (MIGO)
4.4.4.1.1 Field Selection for MIGO
Use:
In this step, you maintain the settings for the field selection for MIGO.
Here you can, for example:
 Hide the header data completely or hide particular fields that you do not
require
 Hide pushbuttons that you do not require
 Define the Delivery note and Bill of lading fields as mandatory entries if you
use evaluated receipt settlement
 Show the GR/GI slip (GOHEAD-XABLN) field if you use GR/GI slip numbers
(only necessary in certain countries)
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 Show the Plant (GODYNPRO-PO_WERKS) field if you require the ordering-

plant name for purchase-order-related goods movements as a selection
criterion in addition to the purchase order number and item number
 Hide the print indicator if you do not want to print out GR/GI slips in
Inventory Management
Procedure:

Inventory Settings for Enjoy TransactionsSettings for Goods
Movements (MIGO) Field Selection for MIGO
Transaction Code OMJX
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4.4.4.1.2 Field Selection per Mvt Type
Use:
In this step, you maintain all the settings for field selection by movement type.
This step replaces the activity Define Screen Layout for the Enjoy transactions. The
settings from Define Screen Layout are adopted in these settings automatically so
that you do not need to maintain new entries here.
You can specify for each field whether it is an optional entry or a mandatory entry.
In the table, you see all fields that are visible. You can access the setting Field
Invisible by deleting the appropriate entry from the table.
There is no distinction between different special stock indicators in these entries.

Special stock fields are always suppressed automatically.
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Procedure:

Inventory Settings for Enjoy TransactionsSettings for Goods
Movements (MIGO)  Field Selection per Mvt Type
Click on button ‘New Entry’ if you wish to add new fields for required movement
types. You can set whether field is required or optional entry.
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4.4.5 Goods Issue / Transfer Postings
4.4.5.1 Define Screen Layout
Use:
In this step, you set the field selection for the movement types including goods
issues and transfer postings.
When creating a goods movement, the field selection determines which fields
 can be filled ( optional entry)
 must be filled (required entry)
 are suppressed fields
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In Inventory Management, the field selection depends on the movement type. The
field selection defined for a movement type is valid for entering goods movements
and reservations.
Procedure:

Inventory Goods Issue / Transfer Postings Define Screen Layout
Transaction Code OMBW
List of movement types related to goods issue and transfer posting will open.
Select required movement type and click on the details button.
List of sub-groups will open. Double click on the required group. All fields
pertaining to that group will open. Select status to every field either as Suppress,
Required entry or optional entry.
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4.4.5.2 Set Up Dynamic Availability Check
Use:
In this step, you configure the dynamic availability check. In Inventory

Management, two types of availability check are carried out.
 availability check during the entry of reservations
 availability check during the entry of goods movements
The system checks whether the material to be withdrawn is available and issues a
message, if necessary. The availability check is only carried out if:
 the material master record contains a checking group for the availability
check (MRP data)
 a checking rule is assigned to the transaction in Customizing
You can define
 for each movement type which type of message is issued (object Movement
type)
 which checking rules are supported (object Checking rule)
 per checking group and checking rule: which objects (documents, stocks,
material requirements) are included in the availability check (object Define
checking rule)
 per transaction of Inventory Management: which checking rule applies

(object Transaction codes)
Default Settings
 In the standard system, the message type A (warning in the case of non-
availability, otherwise no message) is set for all relevant movement types.
 For Inventory Management, the checking rule 03 is provided.
Procedure:

Inventory Goods Issue / Transfer Postings  Set Up Dynamic
Availability Check
Transaction Code OMCP
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Activities:
 Define the movement types for which an availability check is to be carried

out and which type of message is issued.
 Check the checking rule that you want to use in Inventory Management.
Define a new checking rule, if necessary, and define for each checking
group which objects are included in the availability check for this checking
rule.
 Check the availability checking rules for each transaction. Assign other
checking rules to the transactions, if necessary.
Screen of availability check: goods issue will open. Select object ‘Movement type’.
Set dynamic availability check for required movement type.
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Screen of availability check: goods issue will open. Select object ‘Checking Rule’.
Click on ‘New Entry’ to add new checking rule.
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Screen of availability check: goods issue will open. Select object ‘Define Checking
Rule’. Click on ‘New Entry’ to assign availability check to required checking
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Screen of availability check: goods issue will open. Select object ‘Transaction
code’. Assign checking rule to required transaction code.
4.4.6 Goods Receipt
4.4.6.1 Set Tolerance Limits
Use:
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
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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
(Explanation)
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
(Explanation)
You use tolerance key VP to define the percentage variance from which a
warning message is issued. This warning message indicates a price change.
Procedure:

Inventory Goods ReceiptSet Tolerance Limits
Transaction Code OMC0
In the standard system, the tolerance keys for goods receipts for purchase orders
are defined with the following tolerance limits in company code 0001. Same is
maintained for company code in CEL
 B1 ( order price quantity variance with error message): 50 %
 B2 (order price quantity variance with warning): 20 %
 VP (variance from moving average price)
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4.4.6.2 Define Screen Layout
Use:
In this step, you set the field selection for the movement types including goods
issues and transfer postings.
When creating a goods movement, the field selection determines which fields
 can be filled ( optional entry)
 must be filled (required entry)
 are suppressed fields
In Inventory Management, the field selection depends on the movement type. The
field selection defined for a movement type is valid for entering goods movements
and reservations.
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Procedure:

Inventory Goods Receipt Define Screen Layout
Transaction Code OMCJ
List of movement types related to goods receipts will open. Select required
movement type and click on the details button.
List of sub-groups will open. Double click on the required group. All fields
pertaining to that group will open. Select status to every field either as Suppress,
Required entry or optional entry.
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4.4.6.3 For GR-Based IV, Reversal of GR Despite Invoice
Use:
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.
Procedure:

Inventory Goods ReceiptFor GR-Based IV, Reversal of GR Despite
Invoice
Transaction Code OMBZ
Select the indicator for required movement type.
4.4.7 Reservation
4.4.7.1 Set Dynamic Availability Check
Use:
In this step, you configure the dynamic availability check. In Inventory

Management, two types of availability check are carried out.
 availability check during the entry of reservations
 availability check during the entry of goods movements
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The system checks whether the material to be withdrawn is available and issues a
message, if necessary. The availability check is only carried out if:
 the material master record contains a checking group for the availability
check (MRP data)
 a checking rule is assigned to the transaction in Customizing
You can define
 for each movement type which type of message is issued (object Movement
type)
 which checking rules are supported (object Checking rule)
 per checking group and checking rule: which objects (documents, stocks,
material requirements) are included in the availability check (object Define
checking rule)
 per transaction of Inventory Management: which checking rule applies

(object Transaction codes)
Default Settings
 In the standard system, the message type A (warning in the case of non-
availability, otherwise no message) is set for all relevant movement types.
 For Inventory Management, the checking rule 03 is provided.
Procedure:

Inventory Reservation  Set Dynamic Availability Check
Transaction Code OMB1
Activities:
 Define the movement types for which an availability check is to be carried

out and which type of message is issued.
 Check the checking rule that you want to use in Inventory Management.
Define a new checking rule, if necessary, and define for each checking
group which objects are included in the availability check for this checking
rule.
 Check the availability checking rules for each transaction. Assign other
checking rules to the transactions, if necessary.
Screen of availability check: goods issue will open. Select object ‘Movement type’.
Set dynamic availability check for required movement type.
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Screen of availability check: goods issue will open. Select object ‘Checking Rule’.
Click on ‘New Entry’ to add new checking rule.
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Screen of availability check: goods issue will open. Select object ‘Define Checking
Rule’. Click on ‘New Entry’ to add new checking rule.
Screen of availability check: goods issue will open. Select object ‘Transaction
code’. Assign checking rule to required transaction code.
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4.4.8 Movement Types
4.4.8.1 Record Reason for Goods Movements
Use:
In this step, you can carry out the following for each movement type:
 maintain the input status of the Reason field
 Store a key that gives a reason for the movement (for example, reason for
return delivery) and a corresponding text.
When you enter a goods movement, you can only enter reasons which have been
defined for the movement type here.
Procedure:

Inventory Movement TypesRecord Reason for Goods Movements
Transaction Code OMBS
Select object of ‘Control Reason’. For required movement type, select reason
either Field is suppressed OR Entry in this field is optional OR Entry in this field is
required.
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Select second object of ‘Reason for Movement’. Click on button ‘New Entry’ to
define reason for movement for required movement types.
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4.4.8.2 Copy, Change Movement Types
Use:
In this step, you can change the setting of existing movement types and 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
Procedure:
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Inventory Movement Types Copy, Change Movement Types

Transaction Code OMJJ
Activities:
Check whether you can use the preset movement types. If not, define new
movement types as follows:
1. Once you have carried out the activity, the system displays a dialog box for field
selection. In this, you can restrict the movement types you work with to various
fields. To copy a movement type, select the field Movement type and choose
Continue. The dialog box Define work area appears.
2. In the dialog box Define work area, enter the movement type you want to copy
in the From: field. In the To: field, enter the name of the new movement type you
want to create. To go to the overview of the selected movement types, choose
Continue.
3. Select the movement type you want to copy, and choose Edit -> Copy as.
Overwrite the selected movement type with the new movement type (beginning
with 9, X, Y, or Z) and copy all dependent entries.
The system copies all control indicators from the reference movement type to the
new movement type.
4. Check all views for the new movement type and, if necessary, change the
control indicators. Please note that some views have a detail screen.
5. Copy the reversal movement type and enter it in the view Reversal/follow-on
movement types.
6. Save your settings.
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Depending on requirement of good receipts & good issues movement type, select
corrosponding standard movement type and then click on copy button.
Give new code and description for the new movement type.
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Double click on the folders in the dialog structure one by one and do the Setting
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4.4.9 Reporting
4.4.9.1 Define Field Selection for Material Document List
Use:
In this step you can define the available fields as input parameters or output
parameters for MB51 (material document) report.
Procedure:

Inventory  Reporting  Define Field Selection for Material
Document List
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4.4.10 Split Valuation
4.4.10.1 Activate Split Valuation
Use :
In this step, you configure whether split valuation is allowed at your company. For
certain materials, it is necessary to valuate the various stocks in a particular
valuation area separately. Reasons for this include: Different origins of the
material i.e. domestic or import, different grades of quality for the material,
differentiation between in-house production and external procurement etc.
Procedure:
IMG Menu IMG  Materials Management  Valuation and Account Assignment

Split Valuation Activate Split Valuation
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Transaction Code OMW0
Tick the option of ‘Split material valuation active’ and save.
4.4.10.2 Configure Split Valuation
Use :
If a material is subjected to split valuation, the material is managed as several

partial stocks, each partial stock is valuated separately. Each transaction that is
relevant for valuation be it a goods receipt, goods issue, invoice receipt or physical
inventory, is carried out at the level of the partial stock. When you process one of
these transactions, you must always specify which partial stock is involved. This
means that only the partial stock in question is affected by a change in value, the
other partial stocks remain unaffected.
Alongside the partial stocks, the total stock is also updated. The calculation of the
value of the total stock results from the total of the stock values and stock
quantities of the partial stocks.
You define whether the material is subject to split valuation on the accounting
view of the material master record. There are two fields for this:
 The valuation category which specifies which criterion should be used as the
basis for differentiating between the various partial stocks.
 The valuation type specifies an individual characteristic of a partial stock.
Procedure:
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Split Valuation Configure Split Valuation
Transaction Code OMWC
Steps to configure split valuation are as below,
Valuation type: Click on the ‘Global types’. Screen of ‘Global valuation types’ will
open. Click on create button to define new valuation type. Maintain attributes for
newly defined valuation type. Attributes contain whether external purchase orders
and internal purchase orders (production order) are allowed for this valuation type.
Also assign account category reference.
Account category reference is group of valuation classes that the system uses to
check whether the valuation class you have entered is allowed when you maintain
accounting data in a material master record.
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Valuation category: Click on the ‘Global categories. Screen of ‘Global valuation

categories’ will open. Click on create button to define new valuation category.
Maintain attributes for newly defined valuation category.
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Select required calculation category and then click on ‘Types->Cat.’ so as to assign

valuation types to valuation categories.
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List of all valuation types along with their account category reference will open.
For the selected valuation category, put cursor on the required valuation type and
click on button ‘Activate’. While creating material master, for given category, only
active valuation type will be displayed.
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Click on the ‘Local definitions. Screen of ‘Local definitions: plant selection’ will
open with a list of all plants. Select your required plant and click on ‘Cats. -> OU.
This will give list of all valuation types along with their valuation categories. Here
you can activate and deactivate required active valuation types and categories.
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4.4.11 Account Determination
4.4.11.1 Account Determination without Wizard
Use :
If In this step, you can make the settings for automatic account determination in
Inventory Management and Invoice Verification.
Procedure:

Account Determination Account Determination Without Wizard
4.4.11.1.1 Define Valuation Control
Use :
If For account determination, you can group together valuation areas by activating
the valuation grouping code. This makes the configuration of automatic postings
much easier.
Procedure:

Account Determination Account Determination Without Wizard 
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Define Valuation Control

Transaction Code OMWM
4.4.11.1.2 Group Together Valuation Areas
Use :
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)
Example
 to define common account determination for several valuation areas

(company codes or plants)
Example
Procedure:

Group Together Valuation Areas
Transaction Code OMWD
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Define your own code for ‘Valuation grouping code’ and assign to required
valuation area (plant code).
For SEL Plants – 1000

For SIPL Plants – 2000
For MBCP plants – 3000
For SPVs - 4000
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4.4.11.1.3 Define Valuation Classes
Use :
In this step, you define which valuation classes are allowed for a material type.
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If a user creates a material, he must enter the material's valuation class in the
accounting data. The ERP system uses your 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.
Procedure:

Define Valuation Classes
Transaction Code OMSK
Out of three objects, select first object of ‘Account category reference’. Click on
the button of ‘New Entry’ to define new account category reference.
Defined account category reference as per material type
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Out of three objects, select second object of ‘valuation class’. Click on the button
of ‘New Entry’ to define new valuation class. Against every valuation class, assign
account category reference.
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Out of three objects, select third object of ‘Material type/Account category

reference’. List of material types will appear. Assign required account category
reference.
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4.4.11.1.4 Configure Automatic Postings
Use :
In this step, you enter the system settings for Inventory Management and Invoice
Verification transactions for automatic postings to G/L accounts. Under Further
information there is a list of transactions in Materials Management and their
definitions.
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Automatic account posting: Postings are made to G/L accounts automatically in the
case of Invoice Verification and Inventory Management transactions relevant to
Financial and Cost Accounting.
Example: Posting lines are created in the following accounts in the case of a goods
issue for a cost center:
 Stock account
 Consumption account
When entering the goods movement, the user does not have to enter a G/L
account, since the ERP system automatically finds the accounts to which postings
are to be made using the following data:
 Chart of accounts of the company code: If the user enters a company code
or a plant when entering a transaction, the ERP system determines the
chart of accounts which is valid for the company code. You must define the
automatic account determination individually for each chart of accounts.
 Valuation grouping code of the valuation area: If the automatic account

determination within a chart of accounts is to run differently for certain
company codes or plants (valuation areas), assign different valuation
grouping codes to these valuation areas. You must define the automatic
account determination individually for every valuation grouping code within
a chart of accounts. It applies to all valuation areas which are assigned to
this valuation grouping code. If the user enters a company code or a plant
when entering a transaction, the system determines the valuation area and
the valuation grouping code.
 Transaction/event key (internal processing key): Posting transactions are

predefined for those inventory management and invoice verification
transactions relevant to accounting. Posting records, which are generalized
in the value string, are assigned to each relevant movement type in
inventory management and each transaction in invoice verification. These
contain keys for the relevant posting transaction (for example, inventory
posting and consumption posting) instead of actual G/L account numbers.
You do not have to define these transaction keys, they are determined
automatically from the transaction (invoice verification) or the movement
type (inventory management). All you have to do is assign the relevant G/L
account to each posting transaction.
 Account grouping (only for offsetting entries, consignment liabilities, and
price differences): Since the posting transaction "Offsetting entry for
inventory posting" is used for different transactions (for example, goods
issue, scrapping, physical inventory), which are assigned to different
accounts (for example, consumption account, scrapping, expense/income
from inventory differences), it is necessary to divide the posting transaction
according to a further key: account grouping code. An account grouping is
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assigned to each movement type in inventory management which uses the

posting transaction "Offsetting entry for inventory posting".
Under the posting transaction "Offsetting entry for inventory posting", you
must assign G/L accounts for every account grouping, that is, assign G/L
accounts. If you wish to post price differences to different price difference
accounts in the case of goods receipts for purchase orders, goods receipts
for orders, or other movements, you can define different account grouping
codes for the transaction key. Using the account grouping, you can also
have different accounts for consignment liabilities and pipeline liabilities.
 Valuation class of material or (in case of split valuation) the valuation type:
The valuation class allows you to define automatic account determination

that is dependent on the material. for example: you post a goods receipt of
a raw material to a different stock account than if the goods receipt were
for trading goods, even though the user enters the same transaction for
both materials. You can achieve this by assigning different valuation classes
to the materials and by assigning different G/L accounts to the posting
transaction for every valuation class. If you do not want to differentiate
according to valuation classes you do not have to maintain a valuation class
for a transaction.
Procedure:

Configure Automatic Postings
Transaction Code OMWB
Activities:
1. Create account keys for each chart of accounts and each valuation grouping
code for the individual posting transactions. To do so, proceed as follows:
a) Call up the activity Configure Automatic Postings. The ERP system first checks
whether the valuation areas are correctly maintained. If, for example, a plant is
not assigned to a company code, a dialog box and an error message appear. From
this box, choose Continue (next entry) to continue the check. Choose Cancel to end
the check. The configuration menu Automatic postings appear.
b) Choose Goto -> Account assignment. A list of posting transactions in Materials
Management appears. Account determination indicator shows whether automatic
account determination is defined for a transaction.
c) Choose a posting transaction. A box appears for the first posting transaction.
Here you can enter a chart of accounts.
Rules for account number assignments
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With Goto -> Rules you can enter the factors on which the account
number assignments depend:
- debit/credit indicator
- general grouping (= account grouping)
- valuation grouping
- valuation class
o Posting keys for the posting lines
Normally you do not have to change the posting keys. If you wish to
use new posting keys, you have to define them in the Customizing
system of Financial Accounting.
o Account number assignments
You must assign G/L accounts for each transaction/event key

(except KBS). You can assign these accounts manually or copy them
from another chart of accounts via Edit -> Copy.
If you want to differentiate posting transactions (e.g. inventory
postings) according to valuation classes, you must make an account
assignment for each valuation class.
Using the posting transaction "Offsetting entry for inventory posting",
you have to make an account assignment for each account grouping
If the transaction PRD (price differences) is also dependent on the
account grouping, you must create three account assignments:
- an account assignment without account grouping
- an account assignment with account grouping PRF
- an account assignment with account grouping PRA
If the transaction KON (consignment and pipeline liabilities) is also
dependent on the account grouping, you must create two account
assignments:
- an account assignment without account grouping (consignment)
- an account assignment with account grouping (pipeline)
d) Save your settings.
2. Then check your settings with the simulation function. With the simulation
function, you can simulate the following:
o Inventory Management transactions
o Invoice Verification transactions
When you enter a material or valuation class, the ERP system determines the G/L
accounts which are assigned to the corresponding posting transactions. Depending
on the configuration, the SAP system checks whether the G/L account exists
In the simulation you can compare the field selection of the movement type with
that of the individual accounts and make any corrections.
If you want to print the simulation, choose Simulation -> Report.
To carry out the simulation, proceed as follows:
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a) Choose Settings to check the simulation defaults for

- the application area (Invoice Verification or Inventory Management)
- the input mode (material or valuation class)
- account assignment
Instructions
b) Choose Goto -> Simulation.

The screen for entering simulation data appears.
c) Depending on the valuation level, enter a plant or a company code on the

screen.
d) When you simulate Inventory Management transactions, goods movements are

simulated. The ERP system suggests the first movement type for simulation. If
several movements are possible with this movement type, you can select a line.
When you simulate Invoice Verification transactions, a list appears on the screen of
the possible transaction types. Select a line.
e) Then choose Goto -> Account assignments.

A list appears of the posting lines which can be created by the selected
transaction. For each posting line, the G/L account for the debit posting as well as
the G/L account for the credit posting are displayed.
f) From this screen, choose Goto -> Movement+ to get a list of the posting lines for
the next movement type or transaction type.
If you work with valuation classes, choose Goto -> Valuation class+ to receive the
simulation for the next valuation class. This function is not possible when
simulating with material numbers.
Choose Goto -> Check screen layout to compare the movement type with the G/L
accounts determined by the system and make any necessary corrections.
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Use / details of transaction/account key is as below
KEY Description Details

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
Expenditure/income control and to materials with moving average price control.
AUM from transfer posting Price differences can arise for materials with moving
(AUM) 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.
This transaction/event key is used both in Inventory
Revenue/expense from Management and in Invoice Verification if the standard
UMB revaluation (UMB) price of a material has been changed and a movement or
an invoice is posted to the previous period (at the previous
price).
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
BSV Change in stock (BSV)
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.
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
BSX Stock posting (BSX)
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.
Offsetting entry for
GBBZS1 receipts from NON SAP Offsetting entry for receipts from NON SAP project
project
GBBZS2 Offsetting entry for Offsetting entry for issue to NON SAP project
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issue to NON SAP

project
GBBBSA Initial Stock Uploading for initial entry of stock balances
Physical Verification diff
GBBINV
a/c for expenditure/income from inventory differences
For goods issues for sales orders with
COGS (Sales w/o acc
GBBVAY
assign)
account assignment object (account is a cost element)
for goods issues for sales orders without
COGS (Sales with acc
GBBVAX
assign) account assignment object (the account is not a cost
element)
Goods Issue to
GBBVBO for consumption from stock of material provided to vendor
Subcontractor
for internal goods issues (for example, for cost center, WBS,
GBBVBR Internal Goods Issue
Equip Order)
GBBVNG Scrap Inv. RM for scrapping/destruction
Offsetting entry for for sales order account assignment

GBBVKA sales order account
assignment (for example, for individual purchase order)
for goods receipts for orders (without account assignment)
GBBAUF Chng in inv. Procs order
and for order settlement if AUA is not maintained
Chng in inv. Ord
GBBAUA for order settlement
settlmnt
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 pricedardpreis), 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 Difference -
PRD Price differences can also arise in the case of materials with
material
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.
Depending on the settings for the posting rules for

transaction/event key PRD, it is possible to work with or
without account modification. If you use account
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modification, the following modifications are available in

the standard system:
None for goods and invoice receipts against purchase

orders
The transaction is used for goods and invoice receipts in

connection with subcontract orders.

FRL Sub Contrctr charge
purpose
Postings to the GR/IR clearing account occur in the case of
goods and invoice receipts against purchase orders. For
more on the GR/IR clearing account, refer to the SAP
Library (documentation MM Material Valuation).
WRX GR/IR Clearing Caution
You must set the Balances in local currency only indicator

for the GR/IR clearing account to enable the open items to
be cleared. For more on this topic, see the field
documentation
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 depends on the
FR1 Freight Clearing
condition types defined in the purchase order.
You can also enter your own transactions for delivery costs
in condition types
FR2 Freight Provision
in condition types
This transaction is used for delivery costs (incidental costs
External service of procurement) in connection with subcontract orders.
FRN
delivery cost
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purpose
FR3 Custom Clearing
in condition types
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

KON Consgnmnt Clearing
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
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
UPF unplanned delivery cost
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.
This transaction is used in Invoice Verification if you define
Mat. Small Diff. -
DIF a tolerance for minor differences and the balance of an
Invoice
invoice does not exceed the tolerance.
Purchase Freight These transactions are used only if Purchase Account
FRE
Account Management is active in the company code.
Exchange rate differences in the case of open items arise
when an invoice relating to a purchase order is posted with
KDM Mat. Exc. Rate diff. 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 undercoverage/shortage
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Configuration Document

SAP Materials Management - Configuration Document

Author Mr. Shikhar Singh

File Name Configuration Document of Material Management

Last Edited 08.08.2019

Number Of Pages 278

Configuration Client 100

Target Readership CEL Core Team, HOD

Version Revision Revision Author/ Sign-Off

This document has to read in conjunction with the KDS document

4.1.6.2 Define Document Types.........................................................................................................64

4.4.7.1 Set Dynamic Availability Check..........................................................................................230

1.1 General Settings

1.1.1 Check Units of Measurement

IMG Menu IMG  SAP NetWeaver  General Settings  Check Units of

Choose appliccable dimension from dropdown

1.1.2 Maintain Calendar

The calendar system consists of the following components:

 Public holiday calendar

IMG Menu IMG  SAP NetWeaver  General Settings  Maintain Calendar

Define a factory calendar including the relevant public holiday calendar:

o Period of validity (From year, To year)

o Public holiday calendar ID

o Start no. factory date

4. Decide which days of the week are meant to be workdays.

You should limit the number of persons authorized to maintain organization

2.1.1 Logistics General

2.1.1.1 Define valuation level

IMG Menu Enterprise Structure  Definition  Logistics - General Define

2.1.1.2 Define, copy, delete, check plant

IMG Menu IMG  Enterprise structure  Definition  Logistic General

1. Choose activity – Define Plant

Field name Description User action and Note

4. Choose activity – Copy, delete, check plant

2.1.2 Materials Management

2.1.2.1 Maintain storage location

IMG Menu IMG  Enterprise structure  Definition  Materials management

Make following entries:

To maintain storage location address click as below

Click on “New entries”

2.1.2.2 Maintain purchasing organization

A purchasing organization is responsible for the purchasing activities of different

A purchasing organization is responsible for the purchasing activities of just one

A purchasing organization is responsible for the purchasing activities of one plant.

Create new purchasing organization with reference to the purchasing organization

IMG Menu IMG  Enterprise structure  Definition  Materials management

Make following new entries

2.1.3 Logistics – General

2.1.3.1 Assign plant to company code

IMG Menu IMG  Enterprise structure  Assignment  Logistic general  Assign

Plant is assigned to company code.

2.1.4 Materials Management

2.1.4.1 Assign purchasing organization to company code

plant in each procurement transaction, even if the procuring purchasing

IMG Menu IMG  Enterprise structure  Assignment  Materials Management 

Make following entries

Purchasing organization is assigned to company code

1000 – purchase orgnnisation is assigned to any company code as 1000.

2.1.4.2 Assign purchasing organization to plant

IMG Menu IMG  Enterprise structure  Assignment  Materials Management 

Make following entries

Field name Description User action and values Note