Business Blueprint - Material Management

SAP@RRAB
Business Blueprint - Material Management
Project ACC - SAP Project

Document ID ACC-BBP-MM-V1.2 20100116.doc
Author / Reviewer Version Date Distribution List

Rajkumar.A Version 1.0 24-Oct-21
Version History
Ver. Ver. Changed Change Description Filename
No. Date By
1.0 06/01/10 Initial Draft ACC-BBP-MM-V1.0
20100106.doc
1.1 12/01/10 Rajkumar. Changes in the following section ACC-BBP-MM-V1.1
A 4.2.1,4.2.10,5.2.1,5.2.13,6.2.1,6.7,6.13, 20100112.doc
7.2.1,7.2.8,7.13,8.2.1,8.2.10,8.13,9.2.1,
9.13,10.2.1,10.2.7,10.13,11.13,12.13,1
3.13
1.2 14/01/10 Rajkumar. Changes in the following section ACC-BBP-MM-V1.2
A 5.2.13,5.2.9,4.7.18,5.13,4.13,5.2.15.2,6 20100116.doc
.2.7,6.13,7.2.8,7.2.10,7.13,8.2.12,8.13,
9.2.6,10.2.7,10.2.9.2,10.13,11.13
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Created By: Rajkumar.A Created : 24-Oct-21 10/24/2021
Document : ACC-BBP-MM-V1.2 20100116 UPDATED :
Table of Contents
1 Introduction .................................................................................................................. 6
1.1 Abbreviations Used .................................................................................................. 7
2 Organization Structure ................................................................................................. 8
3 Master Data ................................................................................................................. 9
3.1 Material Master (MD-MM-01).................................................................................... 9
3.2 Vendor Master (MD- MM -02) ................................................................................. 12
3.3 Source List (MD- MM -03) ...................................................................................... 14
3.4 Purchase Info Record (MD- MM -04) ...................................................................... 15
3.5 Service Master (MD- MM -05) ................................................................................ 16
4 Project Procurement Material via Quotation (ID: MM-01) ........................................... 18
4.1 Project Procurement Material via Quotation: AS-IS ................................................ 18
4.2 Project Procurement Material via Quotation: TO-BE ............................................... 19
4.3 Risk and Assumptions ............................................................................................ 30
4.4 Changes to Existing Organization .......................................................................... 30
4.5 Input/Data required from other Functions (If any) ................................................... 30
4.6 Output from this function send to others (If any) ..................................................... 30
4.7 System Configuration Considerations..................................................................... 31
4.8 Reports Required from this Business Process ........................................................ 38
4.9 Forms/Documents Printed from this Business Process .......................................... 39
4.10 Interfaces Required for this Business Process .................................................... 39
4.11 Enhancement Required for this Business Process .............................................. 40
4.12 Data Conversion Consideration .......................................................................... 40
4.13 Authorization Specification .................................................................................. 40
4.14 Sign Off for this Business Process ...................................................................... 41
5 Project Procurement - Material via Contract (ID: MM-02) ........................................... 42
5.1 Project Procurement – Material via Contract: AS-IS ............................................... 42
5.2 Project Procurement – Material via Contract: TO-BE .............................................. 43
6 Project Procurement Consumables General – (ID: MM-03) ....................................... 58
6.1 Project Procurement – Consumables General: AS-IS............................................. 58
6.2 Project Procurement – Consumables General: TO-BE ........................................... 60
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7 Project Procurement Service via Quotation – (ID:MM-04) .......................................... 73
7.1 Project Procurement Service via Quotation: AS-IS ................................................. 73
7.2 Project Procurement Service via Quotation: TO-BE ............................................... 74
8 Project Procurement Service via Contract – (ID: MM-05) ........................................... 84
8.1 Project Procurement Service via Contract: AS-IS ................................................... 84
8.2 Project Procurement Service via Contract: TO-BE ................................................. 85
9 RFQ Process for Tendering Department – (ID: MM-06) ............................................. 96
9.1 RFQ Process for Tendering Department: AS-IS ..................................................... 96
9.2 RFQ Process for Tendering Department: TO-BE.................................................... 97
9.3 Risk and Assumptions .......................................................................................... 100
9.4 Changes to Existing Organization ........................................................................ 100
9.5 Input/Data required from other Functions (If any) ................................................. 101
9.6 Output from this function send to others (If any) ................................................... 101
9.7 System Configuration Considerations................................................................... 101
9.8 Reports Required from this Business Process ...................................................... 101
9.9 Forms/Documents Printed from this Business Process ........................................ 101
9.10 Interfaces Required for this Business Process .................................................. 101
9.11 Enhancement Required for this Business Process ............................................ 102
9.12 Data Conversion Consideration ........................................................................ 102
9.13 Authorization Specification ................................................................................ 102
9.14 Sign Off for this Business Process .................................................................... 103
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10 Asset Procurement – (ID: MM-07)............................................................................ 104

10.1 Asset Procurement: AS-IS ................................................................................ 104
10.2 Asset Procurement: TO-BE............................................................................... 105
10.3 Risk and Assumptions ...................................................................................... 113
10.4 Changes to Existing Organization ..................................................................... 113
10.5 Input/Data required from other Functions (If any) .............................................. 113
10.6 Output from this function send to others (If any)................................................ 114
10.7 System Configuration Considerations ............................................................... 114
10.8 Reports Required from this Business Process .................................................. 114
10.9 Forms/Documents Printed from this Business Process ..................................... 114
11 Material Transfer – (ID: MM-08) ............................................................................... 117
11.1 Material Transfer: AS-IS ................................................................................... 117
11.2 Material Transfer: TO-BE .................................................................................. 118
12 Goods Issue – (ID: MM-09) ...................................................................................... 123
12.1 Goods Issue: AS-IS .......................................................................................... 123
12.2 Goods Issue: TO-BE ......................................................................................... 124
13 Return Delivery – (ID: MM-10) ................................................................................. 128
13.1 Return Delivery: AS-IS ...................................................................................... 128
13.2 Return Delivery: TO-BE .................................................................................... 129
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14 Physical Inventory – (ID: MM-11) ............................................................................. 133
14.1 Physical Inventory: AS-IS.................................................................................. 133
14.2 Physical Inventory: TO-BE ................................................................................ 134
15 Training Strategy ..................................................................................................... 139
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1 Introduction
This Business Blue Print Document describes the following

➢ Enterprise Structure of Al-Arab Contracting Company LTD
➢ Master Data of Al-Arab Contracting Company LTD
➢ Business Process TO-BE as given by the ACC Key Users
➢ To-Be Process on SAP ERP 6.0 system suggested by ABA Consultants that was agreed
by ACC during workshops
➢ Function Deficits contains Gaps which are at different stages of exploration
➢ Changes to Existing Organization contains business process change
➢ Suggestions by ABA consultant wherever SAP ERP 6.0 features are found to be useful to
ACC business functionality
Processes defined in this document (MM-Business Blue Print) are the one to be implemented during
the next Phases of the project, and this remains the benchmarking & reference point for any further
actions in the remaining Project Phases. To-Be business process realization is dependent on the
following aspects
➢ As-Is Business Knowledge Transfer from ACC Project Team members in Workshop
➢ Business Requirements defined by the ACC Project Team members in Workshop
ACC accepts that the decision to accept the ‘To-Be’ Business Processes is completely its own and
not influenced by ABA.
Current Business Process:
Materials function spreads over number of departments currently existing in ACC. Material
Requirement Planning starts from operations department from project plan. For regular buying of
components either local or import, Purchase Department is performing Purchasing Functions of MM.
Project warehouse and Central warehouse department are involved in incoming and outgoing
material stores management. Finance Department is doing bill passing function of Invoice
Verification in MM. These departments are currently working on independent platforms and system.
Purchase and warehouse are currently performed using EPROO software, which is not linked with
Finance. Finance department is working on ALPHA software. There is no integration of information
between these departments.
Proposed Business Process:
Implementation of SAP ERP 6.0 will integrate these departments with common information and
same across all departments. Same master data such as Material and Vendor will be used across
all departments. Purchase department will be raising purchase order or long-term agreement on
vendors. Stores will receive the goods against these orders and agreement. Finance department will
do the bill passing against these goods receipts.
The Reports listed in this document are the one to be provided to ACC, which will be useful for
management and managerial decision-making.
This Business Blueprint document explains the scope of module along with existing and proposed
processes in Material Management. This document also gives the list of reports, layouts and gaps,
which needs to be developed additionally. Master data required for MM module is also explained in
this document along with migration strategy and template format in which data needs to be
collected. User roles are shown in this document. The complete requirement of ACC for has been
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mapped in the below listed Business Processes. Individual Business Processes have been
discussed in detail.
1. Project Procurement Material via Quotation

2. Project Procurement Material via Contract
3. Project Procurement Consumables General
4. Project Procurement Service via Quotation
5. Project Procurement Service via Contract
6. RFQ Process for Tendering Department
7. Asset Procurement
8. Material Transfer
9. Goods Issue
10. Return Delivery
11. Physical Inventory
1.1 Abbreviations Used
Abbreviation Description
ACC Al-Arab Contracting Company LTD
ABA Al Bilad Arabia
PR Purchase Requisition
PO Purchase Order
GR Goods Receipt
GI Goods Issue
IR Invoice Receipt
MD Material Document
AD Accounting Document
CM Commercial Manager
PM Procurement Manager
FM Finance Manager
GM General Manager
PID Physical Inventory Document
RFQ Request for Quotation
GRV Goods Receipt Voucher
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2 Organization Structure
Client
100
Purchase Groups
ACC-KSA Company
1100
1. 100 –
2. 101 –
ACC-KSA Corporate Purchase 3. 102 –
Organization 4. 103 –
1000 5. 104 –
6. 105 –
7. 106 –
8. 107 –
Plants
Central Region Northern Region Eastern Region Western Region Southern Region
1100 1101 1102 1103 1104
Storage Locations
Central N. Central E. Central W. Central S. Central

Warehouse Warehouse Warehouse Warehouse Warehouse
CW01 NW10 EW20 WW30 SW40
Central Northern Eastern Western Southern

Projects projects Projects Projects Projects
CP01 NP10 EP20 WP30 SP40
Company Code
The smallest organizational unit for which a complete self-contained set of accounts can be drawn
up for purposes of external reporting. This involves recording all relevant transactions and
generating all supporting documents for financial statements such as balance sheets and profit and
loss statements
Plant
Plant is an organizational unit in Logistics that subdivides the enterprise from the viewpoint of
production, inventory management, material requirements planning and plant maintenance. The
plant produces materials or provides materials and/or services
Purchase Organisation
Purchasing Organization unit in Logistics subdivides an enterprise according to the requirements of
purchasing. A purchasing organization procures materials and services, negotiates conditions of
purchase with vendors, and bears responsibility for such transactions. Plant specific Purchase
Organisation is suitable for ACC requirement
Purchase Group
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The purchasing organization is further subdivided into purchasing groups (buyer groups), which are
responsible for day-to-day buying activities i.e. Buyers are the purchasers. A purchasing group can
also act for several purchasing organizations. At ACC, purchase group are classified based on the
departments.
Storage Location
An organizational unit allowing the differentiation of material in stocks within a plant. This is the
organizational unit at the inventory is managed on the quantity basis. The storage locations are
listed in the System Configuration Consideration section.
3 Master Data
3.1 Material Master (MD-MM-01)
3.1.1 Material Master: AS-IS

Extensive Business Blueprint workshops have been conducted to understand the business
requirements of ACC, but this has not been done to Map the same business practices/processes in
SAP application. As this implementation is not just aimed to bring in an ERP application In the
company but to as well to refine the current business practices by adopting Best Business Practices
suggested by SAP with its varied experience and proven track record.
Eventually we have not denied those business practices which are must required for the business
functioning but they cannot be mapped in SAP. In this case these requirements have been taken for
Customization/Development as a GAP.
In this context we have considered this section of AS-IS as not required and the succeeding sections
of this process will demonstrate the Best Practiced business processes.
3.1.2 Material Master: TO-BE

ACC shall maintain material master data in Standard SAP System. In SAP ERP 6.0 the material
master contains information on all the materials that a company procures or produces, stores, and
sells. It is the company's central source for retrieving material-specific data. This information is
stored in individual material master records.
The material master is used by all components in the SAP Logistics System. The integration of all
material data in a single database object eliminates redundant data storage.
In the SAP Logistics System, the data contained in the material master is required, for example, for
the following functions
➢ In Purchasing for ordering
➢ In Inventory Management for goods movement postings and physical inventory
➢ In Invoice Verification for posting invoices
➢ In Sales and Distribution for sales order processing
➢ In Production Planning and Control for material requirements planning, scheduling, and
work scheduling
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3.1.2.1 Material Type

Materials with the same basic attributes are grouped together and assigned to a material type.
This allows managing different materials in a uniform manner in accordance with company's
requirements. SAP Standard Material types can be used for all the materials. At ACC, the
following list of material types are used
S.NO Material Type Description

1 ROH Raw Material
2 NLAG Non-stock Material
3 ERSA Spare Parts
The material type also decides

➢ Whether the material number can be assigned internally or externally
➢ Which screens appear and in what sequence which departmental data you may enter
➢ What procurement type the material has, that is, whether it is manufactured in-house or
procured externally, or both (for Semi-finish)
Material master creation includes Material Basic data, Purchasing, MRP, Accounting Views,
information like description of the material, base unit of measure, order unit, valuation class, Price
control etc. are given while creating the material master.
Material coding for all material types will be provided as per ACC requirement.
3.1.2.2 Material Group

It is used to group together several materials or services with the same attributes, and to assign
them to a particular material group.
Material groups are maintained in order to meet the analysis & reporting requirements as well for
searching material master records.
Material will be grouped according to their characteristics maintained and 4 digit materials groups
are provided based on CSI code as per ACC requirement.
3.1.2.3 Shipping Instruction

Shipping and packaging instructions are set out in purchase orders issued to vendors. When the
relevant goods receipts are entered, the extent to which the vendor has complied with these
instructions can then be noted.
In PO it will be specified
➢ 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
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3.1.2.4 Purchasing Value Key

A key defining the valid reminder days and tolerance limits applicable to this material for the
purchasing department. The purchasing value key serves as a data entry aid.
In the material master record, store the PVK rules governing
➢ The issue of reminders and urging letters (expediters) with respect to nearly due and
overdue deliveries
➢ The admissibility of over- and under deliveries ("overages" and "underage")
➢ Order acknowledgment requirements for PO items
➢ Shipping/packaging instructions
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)
3.1.2.5 Unit of Measurement

Unit that enables you to determine the size of a quantity of material. The unit of measurement is
listed below with its description
Base unit of measure
It is used by the system in managing stocks and carrying out all computations, other departments
can use their own units of measure.
Alternative Unit of Measure
Unit of Issue
Unit of Measure in which a material is issued from the stores. It is the default unit in conjunction with
goods issues and physical Inventory activities.
Order Unit
Unit of Measure in which a material is ordered. It is the default unit in purchasing activities.
Sales Unit
Unit of measure in which a material is sold. It automatically appears as the default in a sales order
and it can be changed.
3.1.2.6 Material Classification

Classes allow to classifying materials with the same characteristics. A material can be assigned to
one or more classes. Classification data is valid for the whole company.
3.1.2.7 CSI Code

CSI codes are commonly used for division. Every division will have sub level groups. The materials
are classified under this group which will have unique CSI code. CSI codes are maintained in
material master EAN field which will be the search field for all related transaction.
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Master Data
Master Data Description T Code Description
ID Who/Role
MM01 Create
MD-MM-01 Material Master MM02 Change
MM03 Display
Upload Type App. Volume

Data ID Description of Data (Manual/ABAP)
(No. of Comments/Template
Records)
Entered by Key User.
Details have been
MD-MM-01 Material Master BDC 10,000
captured in Material
Master Template
3.2 Vendor Master (MD- MM -02)
3.2.1 Vendor Master: AS-IS

3.2.2 Vendor Master: TO-BE

Master records contain all data necessary for processing business transactions. This is known as
Vendor master data. Vendor Master Data shall be maintained at the following levels
➢ General data
➢ Company Code Data
➢ Purchase Organisation Data
General Data
The general data includes such information as the vendor's address and telephone number, the
language of communication with the vendor, email address, etc.
Company Code Data

Accounting information shall be maintained at company code level. This data includes, for
example, payment transaction data and the number of the relevant control account. Only one
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control account can be assigned to each vendor. And we can maintain vendor customer relation
and vendor bank details in vendor master.
Purchase Organisation Data

Purchasing data like contact persons, terms of delivery, order acknowledgement, Inco terms shall
be maintained at purchasing organization level.
Vendor Schema Group

The schema group mentioned in the vendor master is useful in determination of pricing
procedures.
Vendor Account Group

The account group is a classifying feature within vendor master records. The account group
determines
➢ The number interval for the account number of the vendor
➢ Whether the number is assigned by the user or by the system
➢ Which specifications are necessary and/or possible in the master record

Vendor account Group mentioned in the vendor master is useful to group the vendor. The following
account groups are listed below
1. Domestic Vendors
2. Import Vendors
3. Affiliates
4. Employee
Account Group Description Number Range From Number Ranges To

1.0001 Domestic Vendor 10000 19999
2.0002 Import Vendor 50000 59999
3.0003 Affiliates 70000 79999
4.0004 Employee 80000 89999
Terms of Payment
It is a key for defining payment terms composed of cash discount percentages and payment periods.
Details of Terms of payments provided by ACC. Terms of payment could be used on different
options available in the SAP standard system.
Master Data
ID Who/Role
XK01 Create
MD-MM-02 Vendor Master
XK02 Change
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Master Data
ID Who/Role
XK03 Display

Records)
Details have been
MD-MM-02 Vendor Master BDC 800
captured in Vendor
Master Data Template
3.3 Source List (MD- MM -03)
3.3.1 Source List: AS-IS

3.3.2 Source List: TO-BE

The source list shall be used to maintain the possible sources of supply of material for a given
period or to block a possible source of supply for a specific period or to completely block the
external procurement of a material. Source List shall be created automatically or manually.
➢ Automatic creation of a record in the source list for a particular material is done when a
purchasing info record is created
➢ Source list shall also be automatically created when an outline agreement is created
➢ Manual maintenance shall be done when a new source / new material is identified
Source list can be maintained at two different levels
1. Plant Level
2. Material Level
Master Data
ID Who/Role
ME01 Create
MD-MM-03 Source List ME02 Change
ME03 Display
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Records)
Manually created by Key
MD-MM-03 Source List Manual 10
User
3.4 Purchase Info Record (MD- MM -04)
3.4.1 Purchase Info Record: AS-IS

3.4.2 Purchase Info Record: TO-BE

Purchasing Info records shall store vendor and material details for various types of procurement like
Standard, Consignment, Pipeline and Sub-contracting.
Types of Info record used by ACC are listed below
Standard
Standard info record contains information for standard purchase orders. The info records can be
created for materials and services with and without master records.
These details shall be maintained for a Plant and Purchasing Organization. Details like Prices &
other conditions, under and over delivery tolerances, are stored in these records. The information in
the latest purchasing info record for a combination of vendor and material for that purchasing
organization and plant shall always be defaulted when creating a Purchase Order.
Purchasing info records shall be created manually or automatically. Manual Creation shall be done
when a purchasing info record doesn’t exist already for a vendor – material combination for a
purchasing organization and plant. Manual Update can be done when there are changes in the
values of the Purchasing Info Records.
Automatic updation/creation is also possible at the time of creation of Quotation, Purchase Order or
Contract for those records that already exist. Purchasing Info Records for multiple validity periods
can be maintained at the same time.
Purchase Info Record Number range
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Type Number Range

Purchase Info Record 1000000 – 2000000
Master Data
ID Who/Role
ME11 Create
MD-MM-04 Purchase Info Record ME12 Change
ME13 Display

Data ID Description of Data (No. of Comments/Template
(Manual/ABAP)
Records)
Manually created by Key
MD-MM-04 Purchase Info Record Manual
User
3.5 Service Master (MD- MM -05)
3.5.1 Service Master: AS-IS

3.5.2 Service Master: TO-BE

Service masters shall be maintained for various Services with Description, Category and Unit of
Measure using the ‘Master Data Maintenance’ in ‘External Services management’ of Materials
management Module.
Following critical information shall be maintained in the service master record:
Service Number, which gives a unique identification to the service. This shall be internally
generated by the system. Service category controls the number range.
Service Category, which describes whether a service is an internal service or a service to be
procured externally. In conjunction with the organizational (maintenance) status of the service
master, the maintenance views can be controlled i.e. whether a service master can have – a basic
data view, controlling view, sales & distribution view. Based on the type of service, the service
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category shall be maintained. It controls the number range whether the number range is internal or
external.
At ACC, Service Categories are classified in to three. The following are the list of Service Category
and the number ranges. Description which describes the service in brief
Service Category From Number Range TO Number range

Civil & Architect 1000000 1999999
Electro-Mechanical 2000000 2999999
Bill of Service External External
Master Data
ID Who/Role
Create
MD-MM-05 Service Master AC03 Change
Display

Data ID Description of Data (No. of Comments/Template
(Manual/ABAP)
Records)
Details have been
captured in MM Service
MD-MM-05 Service Master BDC 5000
Master Template.
Following GAP has been
listed for it with ID
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4 Project Procurement Material via Quotation (ID: MM-01)
4.1 Project Procurement Material via Quotation: AS-IS

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4.2 Project Procurement Material via Quotation: TO-BE
4.2.1 Business Process Flow Chart
MM-01 : Project Procurement – Material Via Quotation
MM-01-01 Not Approved
Purchase Requisition
Automatic
Processing MM-01-02
MM-01-00 Release- Civil& Architect /
Electro Mechanical
Material Submittal For Approval NO
Verify Material Submittal
YES
MM-01-03
MM-01-06 Request for Quotation
Quotation Received Maintain Quotation & YES Rejected

from Vendor Price Comparison MM-01-04
Release
Procurement Manager
Approved
MM-01-05
Print RFQ
MM-01-07
Purchase Order Processing Not Approved
For Approval MM-01-08

Release- NO
Procurement
Manager
YES
MM-01-09
NO
Release-
Commercial Manager
YES
MM-01-11 MM-01-10
NO
Print Purchase Order Release-
General Manager
MM-01-12
Update Shipment Control

File
MM-01-14 MM-01-13
Print GRN Goods Receipt Processing

(GRN)
MM-01-15
Invoice Processing
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4.2.2 Material Submittal

Material Submittal form is maintained by the procurement department to verify the materials which
has been approved by the client or consultant for a project. If the project is awarded the planning
department will prepare the list of materials that are going to be used in project, which contains the
following details of materials:
➢ Planned date
➢ Lead time
➢ Design drawing approval
➢ Material sample approval
➢ Approval exclusion
➢ Vendor
➢ Client code
This is the gap identified during the workshops but for being a mandatory business requirement it
shall be consider for development. The formats and functionalities will be captured in function
requirement specification (FRS) which will be duly approved by business users.
4.2.3 Purchase Requisition

A purchase requisition is a request or instruction to Purchasing to procure a certain quantity of a
material or a service so that it is available at a certain point in time.
Purchase requisition contains item category, account assignment category, material group,
quantity and delivery date of the material to be supplied or the service to be performed.
Purchase Requisitions are created under the following situations
➢ Purchase Requisitions shall be created automatically on MRP Run in Project System
➢ Purchase requisition shall be created manually by the requesting department
4.2.4 Purchase Requisition Document types

Purchase Requisition document types are classified as
➢ Project PR
➢ Asset PR
➢ General PR
➢ Tendering PR
Document types will have separate numbering series. Project PR document type will be used to
execute this business process. Refer system configuration consideration.
4.2.5 Purchase Requisition Approval

Release Strategy shall be incorporated for release of Purchase Requisition as per the requirements.
Purchase Requisition approval will be triggered based on the purchase group. The release is
applicable for auto generated or manual Purchase Requisitions.
The Purchase Requisition release level for Civil and Architecture Materials is listed below
Release code Description

CA Civil & Architecture
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The Purchase Requisition release level for Electro-Mechanical Materials is listed below

EM Electro Mechanical
General Purchase Requisition will be approved by the concern department manager.
4.2.6 Request for Quotation

A request for quotation (RFQ) is an invitation extended to a vendor by a purchasing organization to
submit a quotation (bid) for the supply of materials or performance of services.
An RFQ consists of the RFQ header and the items.
➢ RFQ header
Contains general information on the RFQ, such as the vendor’s address
➢ Items
Contain the total quantities and delivery dates for the materials or services specified in the RFQ.
This component is used to manage and compare requests for quotation (RFQs) issued to vendors
and the quotations submitted by latter in response to them. In collective number field project code or
particular activity element has to be maintained for future reference like compare quotation.
The RFQ release level are listed below

4.2.7 RFQ Document Types

RFQ document types are classified as
➢ Material RFQ
➢ Service RFQ
➢ Tendering RFQ
Document types will have separate numbering series. Material RFQ document type will be used to
4.2.8 Maintain Quotation

A quotation is an offer by a vendor to a purchasing organization regarding the supply of materials
or performance of services subject to specified conditions.
The RFQ and the quotation form is a single document. Prices and conditions quoted by vendors
are entered in the original RFQ. RFQ will issue to several vendors, the system will determine the
most favorable quotation submitted and automatically generate letters of rejection to the
unsuccessful bidders. The system stores the prices and terms of delivery from certain quotations in
an info record for future accessing.
A quotation is legally binding on the vendor for a certain period. The quotation is the vendor’s
response to a request for quotation issued by a purchasing organization.
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A quotation consists of items in which the total quantity and delivery date of an offered material or
service are specified. An item of a quotation may contain a delivery schedule made up of a number
of schedule lines in which the total quantity is broken down into smaller quantities to be delivered
on the specified dates over a certain period.
Compare the prices from all quotations received as a result of a competitive bidding process using
the price comparison list. The comparison list ranks the quotations by item from lowest to highest
price.
Prerequisites
Before generate the price comparison list, the following things need to be consider
Each quotation should have pricing data for the same item. Only then is the correct interpretation
of the mean and total values possible.
If quotations 1 and 2 have pricing data for item 1, but quotation 3 only has price information for
item 2, then the system does not have enough information to accurately compare the prices of all
three quotations.
If a quotation is submitted in a foreign currency, the price is automatically translated into the
currency of the company code, which is determined by purchasing organization.
Reference quotation
Compare the quotations within the list with a sample quotation. The system displays the
percentage deviation between each quotation in the list and the sample quotation.
Mean/minimum value quotation
The price comparison list can also display a "fictitious" quotation reflecting the average or minimum
value of all quotations. Select either the Mean or Minimum value quotation field to choose the type
of fictitious quotation.
Percentage basis
The price comparison list displays the percentage of each item in relation to the maximum,
minimum, or average price. To determine the display type, enter one of the following
➢ “+” Highest value for each item is the 100% value
➢ “-“ Lowest value for each item is the 100% value
➢ +"_" Mean value for each item is the 100% value
Price Comparison
Collective number field will be reference field, which will be used to list down the RFQ’s maintained
with same collective number in price comparison. Eventually price comparison can be done based
on the collective number. Select the appropriate field to specify which of the following should be
taken into account in determining the comparison price.
➢ Cash discount
➢ Delivery costs
➢ Effective price
4.2.9 Purchase Order

Purchase order will be created with reference to the finalized quotation. A purchase order is a
formal request or instruction from a purchasing organization to a vendor or a plant to supply or
provide a certain quantity of goods or services at or by a certain point in time.
A purchase order (PO) consists of a document header and a number of items.
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The information shown in the header relates to the entire PO. For example, the terms of payment
and the delivery terms are defined in the header.
A procurement type is defined for each of the document items. The following procurement types
exist
➢ Standard
➢ Subcontracting
➢ Stock transfer
➢ External service
Delivery of the total quantity of material (or performance of the total volume of services) specified in
a purchase order item can be spread over a certain period in a delivery schedule, consisting of
lines indicating the individual quantities with their corresponding planned delivery dates.
Conditions
Conditions can apply at various levels
➢ To the entire purchase order
➢ At item level, to the material to be supplied
This component enables to store pricing stipulations agreed with the vendor such as applicable
discounts or surcharges, or stipulations regarding the payment of freight costs in the system. It can
be enter in quotations, outline purchase agreements, and info records. The option of entering
general conditions is at vendor level, for example. The system then applies the conditions in
determining the price in purchase orders (POs). The further conditions are in the PO itself
Prices shall be of three types
➢ Gross Price which is exclusive of Discounts or surcharges
➢ Net Price inclusive of surcharges, discounts, taxes
➢ Effective Price which includes the Net Price but taking delivery costs, cash discount
and other incidental costs
Pricing conditions shall be maintained in the purchasing info records or in the header or item level as
applicable at the time of PO creation.
Freight
Freight is to be maintained as a condition type. The Planned Freight costs shall be booked in the
same Purchase Order for which the procurement is to be done. In cases where the material
carrying party is different from the one on whom the PO is raised the Freight Vendor shall also be
maintained in the same PO.
For uncertain freights, approximate/minimal freight shall be entered in the PO, for the internal
system purpose and final PO for vendor shall be sent without mentioning the freight. And when the
actual freight comes to be known, during invoice entry, the correct freight amount can be entered.
The freight invoice will be booked as soon as the material is received in the stores and the value will
be updated in the stocks.
Discount
The Discount condition records shall be maintained with conditions and values associated with
conditions. While processing a transaction, the system will search for valid record and as soon as it
finds the record matching the condition of sale it should return a discount value. Some of the
discounts can be maintained at the time of preparing the purchasing document.
Insurance
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The Insurance conditions records shall be maintained with conditions and values associated with
conditions. The calculation of Insurance value is based on the purchase order value plus freight
value of the goods.
Customs Duty
The Customs conditions records shall be maintained with conditions and values associated with
conditions. Scaling conditions shall be maintained for this condition on the purchasing documents.
Transportation
The Transportation conditions records shall be maintained with conditions and values associated
with conditions. The calculation of transportation value is based on the quantity which is
maintained in the purchase order.
Vendor Confirmations
Vendors can issue confirmations to the relevant purchasing organization indicating their
compliance or non-compliance with scheduled delivery dates.
PO History
The transactions following on from a purchase order are documented in the PO history on an item-
specific basis.
Partner Roles
Instead of the vendor as the order recipient, other business partners can appear in various partner
roles (e.g. goods supplier or invoicing party).
Plant
In the purchase order, each item is destined for a certain plant. Each plant belongs to a company
code, to which the vendor’s (creditor’s) invoice is directed.
Texts
Enter text in a purchase order directly or change texts that are suggested by the system. There are
two kinds of text
➢ Header text: applies to the entire document. Project Address has to be maintained in
Purchase Order header text in Delivery text value for printing purpose
➢ Item text: applies only to the relevant item
Define texts appearance and order on printouts in Customizing for Purchasing.
4.2.10 Purchase Order Document Types

Purchase Order document types are classified as
➢ Project PO
➢ Asset PO
➢ General PO
These Purchase Documents will have separate numbering series. Project PO document type will
be used to execute this business process.
Project PO will cover the domestic and international procurement need of civil and architecture
materials, electro mechanical materials and work orders are account assigned to a respective
project WBS element & G/L account.
Asset purchases, Asset master record will be created by the Finance department and it will be
released for Procurement activities. Based on the Asset master record, purchase department will
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release Purchase order. At the time of creating Asset Purchase Order the relevant cost centre will
be incorporated. Goods Receipt is not required for asset purchase, Invoice has been released
directly for asset purchase.
General purchases will cover the consumables materials that relates to a project specific or
general department.
At the time of Purchase Order creation, system will capture from various masters e.g. purchasing
info record, vendor master etc. This can be changed subsequently change history of Purchase
order is available at header as well as item level.
4.2.11 Purchase Order Approval

Release Strategy shall be incorporated for release of Purchase Order as per ACC requirement. The
release is applicable for manual and auto generated Purchase Order.
The Purchase Order release level for Civil and Architecture Materials is listed below
Release code Description Value

PM Procurement Manager Will be Fixed
CM Commercial Manager Will be Fixed
GM General Manager Will be Fixed
The Purchase Order release level for Electro Mechanical Materials is listed below

Electro-Mechanical
EM Will be Fixed
Manager
The Purchase Order release level for General Materials is listed below

EM Commercial Manager Will be Fixed
*Release level will be triggered based on the permitted value to release the purchase order
*For example if the permitted value limit is 1SAR – 10,000SAR for Procurement Manager, the
release will be done only by the Procurement Manager. Now if the value is more than 10,000 SAR
and less than 20,000 Sar, the release will be done by first the Procurement Manager and then the
Commercial Manager and if the value is more than 20,000 SAR, the release will be done by
Procurement Manager, Commercial manager & then General Manager.
4.2.12 Goods Receipt

The receipt of goods from an external vendor. A goods receipt leads to an increase in warehouse
stock. System distinguishes between the following types of goods receipts
➢ Goods receipts with reference to a reservation
➢ Goods receipts with reference to an order
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➢ Goods receipt with reference to purchase order

➢ Other goods receipts
The first type and second type of Goods receipt is not required for ACC. Goods receipt with
reference to purchase order shall cover Project PO, Asset PO, and General PO etc. At a time GR
can be made against only one purchase order.
Other goods receipts include initial entry of stock balances, external goods receipts without a
purchase order.
If a material is delivered for a purchase order, it is important for all of the departments involved that
the goods receipt entry in the system references this purchase order, for the following reason
➢ Goods receiving can check whether the delivery actually corresponds to the order
➢ The system can propose data from the purchase order during entry of the goods receipt (for
example, the material ordered, its quantity, and so on). This simplifies both data entry and
checking (over deliveries and under deliveries)
➢ At the time of Goods Receipt system will update the stock on Project
➢ The delivery is marked in the purchase order history. This allows the Purchasing
department to monitor the purchase order history and initiate reminder procedures in the
event of a late delivery
➢ The vendor invoice is checked against the ordered quantity and the delivered quantity
➢ The goods receipt is valuated on the basis of the purchase order price or the invoice price
4.2.13 Invoice Receipt

Logistics Invoice Verification checks incoming invoices for accuracy with regards to content, price,
and accounting. The main task of Logistics Invoice Verification is to complete the procedure of
materials procurement by posting the vendor invoice and to pass on information concerning the
invoice to Financial Accounting and subsequent applications. For each incoming invoice, Logistics
Invoice Verification creates an MM invoice document and an FI invoice document.
The invoice documents update data in
➢ Materials Management
➢ Financial Accounting
The Accounts department does invoice entry after the stores user makes relevant entries & verifies
conditions in the PO (e.g. Price, Freight and Payment terms). If the conditions in the PO are
satisfied then the Invoice forwarded to finance department.
The Invoice Verification involves the following processes
➢ Invoice
➢ Credit Memo
➢ Subsequent Debit
➢ Subsequent Credit
Invoice option is used when the payment is to be made to the vendor.
Credit memo is used for materials returned back to the vendor. During invoice verification the
system shall display the materials returned back to the vendor for which deductions will be made.
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Subsequent debit shall be used for transactions where the Original invoice has already been
cleared and a subsequent invoice has been raised by the vendor for materials already sent.
Example: Rate change with retrospective effect.
Subsequent Credit shall be used when any deduction is to be levied on the vendor.
There are 3 options that can be used for Invoice Verification.
➢ Goods / Service Item
➢ Delivery Costs
➢ Goods/Service Item + Delivery costs
Based on the Goods/Service and delivery vendors, the option shall be selected.
Vendor invoice shall be entered with reference to Purchase Order. More than one purchase order
can also be processed at one time for one vendor. If required the vendor can be changed from the
original vendor to whom the payment is to be done. If any Invoice verification has been done for any
GR for a PO, the quantity for this GR will not appear in the list. In case where the freight vendor is
different, only those entries related to the delivery costs will be chosen for the payments to this
vendor. It is also possible to raise credit memo against the goods returned to the vendor. In case of
Subsequent debit/credit to be made to the vendor account, (reasons can be change of rates for
previous supplies made, etc), the entries are made using the Invoice Verification. Adjustments to
other accounts like Insurance claims Account, etc. can be entered with invoice verification.
4.2.13.1 Subsequent Debit/Credit
➢ A subsequent debit/credit arises if a transaction has already been settled, and a further
invoice or credit memo is received afterwards
➢ A subsequent debit/credit changes the total invoice value of a purchase order item; the total
invoice quantity remains unchanged. Therefore, only a value-based update of the purchasing
transaction takes place. There is no quantity-based update
➢ An invoice is entered as a subsequent debit if a purchase order item has already been
invoiced and further costs are incurred. (Example: A vendor has inadvertently invoiced at too
low a price and then sends a second invoice for the difference.)
➢ Enter a credit memo as a subsequent credit if a purchase order item was invoiced at too high
a price and later a credit memo is received. (Example: A vendor has inadvertently invoiced at
too high a price and then sends a credit memo for the difference.)
➢ When a subsequent debit/credit is entered, the system suggests the entire invoiced quantity,
but no value. The maximum quantity that can be subsequently debited or credited is the
quantity that has already been invoiced. A subsequent debit/credit for a purchase order item
can be entered if an invoice has already been posted for that item
➢ A subsequent debit/credit cannot refer to a particular invoice
➢ When a subsequent debit/credit is posted, the system posts the invoice amount to the vendor
account
➢ If the quantity to be subsequently debited or credited has already been delivered, the system
makes the offsetting entry to the stock account or the price difference account, depending on
the type of price control used
➢ For purchase order items with account assignment, the system makes the offsetting entry to
the consumption account
➢ If the quantity for subsequent debit/credit has not yet been delivered, the posting is made to
the GR/IR clearing account. Later, when the goods receipt is posted - depending on the price
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control - the system posts the debit/credit to the stock account or the price difference
account, or for PO items with account assignment it posts to the consumption account
4.2.13.2 Delivery Cost-Planned / Unplanned

Freight charges can be planned in the purchase order. More often, they are not known in detail
when the purchase order is created and are entered only in Invoice Verification on the basis of the
invoice.
In the SAP system, delivery costs are divided into
➢ Planned delivery costs
➢ Unplanned delivery costs
Planned delivery costs are entered when the purchase order is created.
Unplanned delivery costs are not known at the time of the purchase order, and are first entered at
invoice receipt. Delivery costs can be settled together with goods items, or an invoice containing
only delivery costs can be entered.
Planned delivery costs are delivery costs that were agreed with the vendor, a freight forwarding
agent, or a customs authority before the purchase order was made, and that are therefore entered
when you enter the purchase order. It is entered item-by-item in the purchase order. They are
assigned accordingly at invoice receipt.
The advantage of planned delivery costs is that the delivery costs become a part of the valuation of
a material at goods receipt, or - for a purchase order with account assignment - are debited to the
account assignment object.
Planned delivery costs are not binding to one specific vendor. When planning the delivery costs in
the purchase order, enter a specific vendor for the delivery costs (such as a freight vendor or a
customs authority). In Invoice Verification, these delivery costs can also be posted to a different
invoicing party to different vendor on the Detail tab page.
Planned delivery costs can be divided into
➢ Freight costs
➢ Customs
Delivery costs can be invoiced in one of three ways
➢ Fixed amount, independent of scope of supply
➢ Quantity-dependent amount
➢ Percentage of value of goods to be delivered
For planned delivery costs, at goods receipt the system posts relevant provisions to a clearing
account. Depending on the origin type, specific clearing account can be customized. This clearing
account is balanced when the corresponding invoice is posted. If no price differences arise
between the planned delivery costs from the purchase order and the requested delivery costs in
the invoice, the material master record does not change at the time of invoice. If price differences
do arise, these are treated in the same way as price variances for ordered materials.
Unplanned delivery costs are delivery costs that were not agreed upon in the purchase order, and
that are first entered at invoice receipt. Enter the total amount of the unplanned delivery costs on
the Detail tab page in invoice.
System automatically posts the unplanned delivery costs to the individual items, or to a separate
G/L account based on the requirement.
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During automatic distribution to the invoice items, the amounts in the items are automatically
increased by the delivery costs part during the invoice post, and it is treated as price variances.
The system does not perform a price check after automatically distributing the delivery costs.
Unplanned delivery costs that were distributed to individual items are not listed separately in the
PO history. They are already a part of the calculated value.
If the unplanned delivery costs are posted to a separate G/L account, the unplanned delivery costs
are not debited to the stocks or the account assignment objects. The system does not show
unplanned delivery costs that are posted to a separate G/L account, in the PO history.
Invoice post contains only unplanned delivery costs with reference to a purchase order, if at least
one invoice has already been posted for the purchase order. Otherwise all the invoiced values
would be zero, and it would not be possible to distribute the delivery costs. The system apportions
unplanned delivery costs to the items in proportion to the total value invoiced so far and the values
in the current invoice. The system can also be able to distribute unplanned delivery costs manually
to individual invoice items, by changing the amounts of the invoice items.
In the case of unplanned delivery costs, the costs are not split up according to their origin. The way
in which the system posts unplanned delivery costs depends on the settings in Customizing. They
are either distributed automatically to the individual invoice items, or posted to a separate G/L
account. During automatic distribution, the unplanned delivery costs are posted according to the
price control.
For a material with moving average price, the system posts to the stock account as long as there is
a stock coverage.
Business
Business Process Step Input Dependency:
Process T Code Who/Role
Description Output :
Step ID
Project
MM-01-01 Auto generated PR ME53N
Manager
MM-01-02 Release PR ME54N Civil/Architect
Purchase
MM-01-03 Create RFQ ME41 With reference to PR
Officer
Procurement
MM-01-04 Release RFQ (PM) ME45
Manager
Procurement
MM-01-05 Print RFQ ME9A With reference to RFQ
Manager
Purchase
MM-01-06 Maintain Quotation ME47 With reference to RFQ
Officer
Procurement
MM-01-07 Compare Quotation ME49 With reference to RFQ
Manager
Purchase With reference to
MM-01-08 Purchase Order ME21N
Officer Quotation
Procurement
MM-01-09 Release PO Level-1 ME29N
Manager
Commercial
Manager or
MM-01-10 Release PO Level-2 ME29N Electro-
Mechanical
Manager
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Business
Business Process Step Input Dependency:
Step ID
General
Manager
Purchase
MM-01-12 Print PO ME9F With reference to PO
Officer
MM-01-13 Shipment Control File Z With reference to PO
Warehouse
MM-01-14 Goods Receipt MIGO With reference to PO
Manager
Warehouse
MM-01-15 Print GRN MB90 With reference to GRN
Manager
Procurement
MM-01-16 Invoice Receipt MIRO With reference to PO
Accountant
4.3 Risk and Assumptions

Discuss if any Risks and Assumptions are associated with the current process being suggested.
4.4 Changes to Existing Organization

➢ Integrate and Optimize Business Process
➢ Information Gathering and search for supplier who can satisfy the requirements
➢ When one or more suitable suppliers have been identified, Requests for Quotes (RFQ) may
be advertised, or direct contact may be made with the suppliers
➢ Negotiations are undertaken, and price, availability, and customization possibilities are
established. Delivery schedules are negotiated, and a contract to acquire the products or
services is completed
➢ Supplier preparation, shipment, delivery, and payment for the products or services are
completed, based on contract terms
➢ During this phase the company evaluates the performance of the products or services and
any accompanying service support, as they are consumed
➢ Shipment Control File made ease to the procurement division for their follow up
➢ Online approval function enables faster and paper less work
➢ Goods movement are highly controlled by the inventory management
➢ Tight integration with Finance module made ease for on time payments to the vendors
➢ Online stock status and storage location should be maintained as per ACC it leads to control
inventory
4.5 Input/Data required from other Functions (If any)

➢ PO will be done with reference to PR
➢ Goods Receipt will be done with reference to PO
➢ Shipment Control File will be done with reference to PO
➢ Invoice will be done with reference to PO
4.6 Output from this function send to others (If any)

After goods Receipt, the following actions will be triggered
➢ Material Document Inventory - Warehouse
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➢ Accounting Document – Finance (Integration with Finance Module)
4.7 System Configuration Considerations
4.7.1 Plant Code
Plant Code Description
1100 ACC Central Region
1101 ACC Northern Region
1102 ACC Eastern Region
1103 ACC Western Region
1104 ACC Southern Region
4.7.2 Purchase Organisation
Purchase Organization Code Description
1100 ACC Central Pur.Org
4.7.3 Purchase Group
Purchase Group Code Description
100 Civil and Architecture
101 Electro-Mechanical
102
4.7.4 Storage Locations
Storage Location Code Description
C000 Central Warehouse
C001 Central Region Project Warehouse
N100 Northern Warehouse
N101 Northern Region Project Warehouse
E200 Eastern Warehouse
E201 Eastern Region Project Warehouse

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Storage Location Code Description
W301 Western Warehouse
W302 Western Region Project Warehouse
S401 Southern Warehouse
S402 Southern Region Project Warehouse
4.7.5 Material Types
Material Type Description Number Ranges From Number Ranges TO
ROH Raw Material 100000 199999
NLAG Non Stock Material 300000 399999
ERSA Spare Parts 500000 599999
4.7.6 Material Group
Material Group Code Description
01000 General Requirement
02000 Site Work
03000 Concrete
04000 Masonry
05000 Metals
06000 Wood & Plastics
07000 Thermal & Moisture Protection
08000 Doors & Windows
09000 Finishes
10000 Specialties
11000 Equipments
12000 Furnishings
13000 Special Construction
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Material Group Code Description
14000 Conveying System
15000 Electrical Installation
16000 Mechanical Installation
17000 Office Supplies
18000 Lubricants & Fuels
19000 Safety Equipments
20000 Miscellaneous Consumables
21000 Vehicles
22000 Heavy Equipment
23000 Light Equipment
24000 Tools
25000 Asset
4.7.7 Document Type & Number Ranges (PR)
Document Type Description Number Range From Number Range To
NB Project PR 1000000 1999999
Z001 Asset PR 2000000 2999999
Z002 General PR 3000000 3999999
4.7.8 Document Type & Number Ranges (RFQ)
AB Material RFQ 4000000 4999999
SR Service RFQ 5000000 5999999
TR Tendering RFQ 6000000 6999999
4.7.9 Document Type & Number Ranges (PO)
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NB Project PR 1000000 1999999
Z001 Asset PR 2000000 2999999
Z002 General PR 3000000 3999999
4.7.10 Inco Terms
Inco Terms Code Description
CFR Costs and Freight
CIF Cost, Insurance & Freight
EXW Ex-Works
FCA Freight Free

Delivery to Central
DTC
Warehouse
FOB Free on Board
4.7.11 Shipping Instructions
Shipping Instruction Code Description
CO Coil
UP Unpacked
NT Nylon Net
SM Sheet Metal
TO Todd
TR Tankers
BX Box Packing
4.7.12 Purchase value Keys
PVK Code Description
ACC ACC
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4.7.13 Payment Terms
Payment Terms Code Description
0001 NET 30 DAYS
0002 NET 45 DAYS
0003 NET 60 DAYS
0004 NET 75 DAYS
0005 NET 90 DAYS
0006 30 DAYS FROM B/L DATE
0014 % DOWN PAYMENT
0015 % UPON SHIPMENT
0016 % PRIOR TO SHIPMENT

UPON RECEIPT OF
0017
SHIPPING DOCUMENT
UPON ACCEPTANCE
0018
(60/90/120)
UPON COMPLETION OF I &
0019
C
0020 UPON COMPLETION
0021 UPON DELIVERY
0022 % NET 30 DAYS
0023 % NET 60 DAYS
4.7.14 Info Record Number Range
Number Range From Number Range To

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Number Range From Number Range To
1000000 2000000
4.7.15 Inventory Document Type & Number Ranges
Number Range Number Ranges

Inventory Document Type Description
From To
WA Goods Issue 4500000 4999999
WE Goods Receipt 5000000 5999999

Inventory
WI 4500000 4999999
Document
Goods
WL 4500000 4999999
Issue/delivery
Physical Inventory
IB 10000 19999
Document
Physical Inventory
ID Document Count 10000 19999
and Difference
Physical Inventory
IN 10000 19999
Recount Document
4.7.16 Conditions
Condition Type Description
ZINS Insurance
ZCUS Custom Duty
ZTRN Transportation Charges
4.7.16.1 Calculation Schema
Calculation Schema Description
ZACC Purchasing document
4.7.17 Release Strategy-PR

For Civil & Architecture material
Release Code Description
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For Electro-Mechanical material
EM Electro-Mechanical
*For General material respective department manager has to be approved.
4.7.17.1 Characteristics-PR
Char.Code Description
Plant Plant Description
Purchase Group Purchase Group
4.7.17.2 Class
Class Code Description
ACC_PR Class
4.7.18 Release Strategy-PO

For Civil & Architecture material & General
GM General Manager
For Electro-Mechanical material
EM Electro-Mechanical Manager
GM General Manager
4.7.18.1 Characteristics-PO
PO_Plant Plant Description
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Purchase Group Purchase Group
VAL_PO Value
4.7.18.2 Class
Class Code Description
ACC_PO Class
4.7.18.3 MRP Group
MRP Group Description
001 MRP Group
4.8 Reports Required from this Business Process

(Note: F-Form, R-Report, I-Interface, C-Conversion, E-Enhancement)
(Note: Serial Number shall continue for the complete Gaps of MM, irrespective of Business process or category-FRICE)
Report Format
Report Report (Attach Document:
Report ID T Code Excel, word, Image..) Gap Identified
Name Description
Purchase Purchase
REP-MM-
Document ME2M Document By SAP Standard
01
By Material Material
Purchase Purchase SAP Standard
REP-MM-
Document ME2L Document By
02
By Vendor Vendor
Quotation SAP Standard
REP-MM- Quotation By
By Material ME4C
03 Material Group
Group
REP-MM-
Document ME2J Document by
04
by Project Project
Purchase SAP Standard
REP-MM- Purchase
Document ME2K
05 Document General
General
Purchase
REP-MM- Document
ME2C Document by
06 by Material
Material Group
Group
Purchase
REP-MM- Document
ME2B Document by
07 by Tracking
Tracking Number
Number
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Report Format
Report Report (Attach Document:
Report ID T Code Excel, word, Image..) Gap Identified
Name Description
Down SAP Standard

REP-MM- Down Payment
Payment ME2DP
08 Monitoring
Monitoring
REP-MM-
Requisition ME5J Requisition by
09
by Project Project
REP-MM- Purchase
Requisition ME5K
10 Requisition General
General
REP-MM- RFQ by SAP Standard
ME4L RFQ by Vendor
11 Vendor
REP-MM- RFQ by SAP Standard
ME4M RFQ by Material
12 Material
RFQ by SAP Standard
REP-MM- RFQ by Collective
Collective ME4S
13 Number
Number
RFQ by SAP Standard
REP-MM- RFQ by Material
Material ME4C
14 Group
Group
Display List SAP Standard
REP-MM- Display List of
of Invoice MIR5
15 Invoice document
document
4.9 Forms/Documents Printed from this Business Process

Format
T (Attach Document:
Form ID FRM Name FRM Description Gap ID
Code Excel, word,
Image..)
FRM-MM-01 RFQ ME9A RFQ GAP-MM-01-F

Purchase ME9F
FRM-MM-02 Purchase Order GAP-MM-02-F
Order
Goods MB90
Goods Receipt
FRM-MM-03 Receipt GAP-MM-03-F
Voucher
Voucher
4.10 Interfaces Required for this Business Process

Format
T (Attach Document:
Interface ID INT Name INT Description Gap ID
Code Excel, word,
Image..)
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Format
T (Attach Document:
Code Excel, word,
Image..)
NA NA NA
4.11 Enhancement Required for this Business Process

Format
Enhancement T (Attach Document:
ENH Name ENH Description Gap ID
ID Code Excel, word,
Image..)
Shipment Z Shipment Control
ENH-MM-01 GAP-MM-04-E
Control File File
Material Z
ENH-MM-02 Material Submittal GAP-MM-05-E
Submittal
4.12 Data Conversion Consideration

(No. of Comments
Records)
Capture during Cutover
OD-MM-01 Purchase Order BDC 10000
planning
OD-MM-02 Initial Entry of Goods BDC 10000
planning
Though we have captured all the gaps in this BBP document that are identified for supporting the
business process during workshops and individual interaction sessions, the above listed
Gaps/development elements will be consolidated in the FRICE Inventory list separately. This shall
further be evaluated and analyzed by the Project Management to include or exclude from the
present Implementation Scope.
4.13 Authorization Specification

(Note: Mention that, Detail Roles and Authorizations will be available in Role Matrix)
Role ID Role Responsibility
ROL-MM-07 Procurement Engineer Material Submittal
ROL-MM-08 Civil & Architect Approve PR
ROL-MM-01 Purchase Officer Convert PR to RFQ
ROL-MM-02 Procurement Manager Approve RFQ
ROL-MM-01 Purchase Officer Print RFQ
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ROL-MM-01 Purchase Officer Convert RFQ to PO
ROL-MM-02 Procurement Manager Approve PO
ROL-MM-03 Commercial Manager Approve PO
ROL-MM-04 General Manager Approve PO
ROL-MM-01 Purchase Officer Print PO
ROL-MM-01 Purchase Officer Generate Purchasing Report

Create, Change Display GR against
ROL-MM-05 Warehouse Manager
PO
ROL-MM-05 Warehouse Manager Print Goods Receipt Voucher
Print/ Generate Warehouse Stock on
hand
ROL-MM-06 Accountant _ AP Create Shipment Control File
ROL-MM-06 Accountant _ AP Create Invoice
4.14 Sign Off for this Business Process
S.No Team Member Name Organization Role Signature
Consultant-
1 Rajkumar Asokan ABA
MM
2 Mr. Emad ACC IT SPM-MM
3 Mr. Saleh Sabri ACC BTL-MM
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5 Project Procurement - Material via Contract (ID: MM-02)
5.1 Project Procurement – Material via Contract: AS-IS

SAP application. As this implementation is not just aimed to bring in an ERP application in the
42
SAP@RRAB
5.2 Project Procurement – Material via Contract: TO-BE
MM-02 : Project Procurement – Material Via Contract
Automatic
Processing MM-02-02
Release- Civil& Architect /
MM-02-00 Electro Mechanical
For Approval (Verify Material Submittal) NO
Material Submittal
YES
MM-02-03

Release-
Procurement Manager
Approved
MM-02-05
MM-02-07 Print RFQ
Contract Processing
Not Approved
MM-02-12
Not Approved
For Approval Purchase Order Processing
MM-02-08
Release- NO
MM-02-13
Procurement
Release- NO
Manager
YES For Approval Procurement
Manager
MM-02-09
YES
NO
Release- MM-02-14
Commercial Manager NO
Release-
YES Commercial Manager
MM-02-10
YES
NO
Release- MM-02-15
General Manager NO
Release-
General Manager
MM-02-11
MM-02-16
NO
Print Contract Print Purchase Order
MM-02-19 MM-02-18 MM-02-17

Print GRN Goods Receipt Processing Update Shipment Control
(GRN) File
MM-02-20
Invoice Processing
43
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5.2.2 Material Submittal

Material Submittal form is maintained by the procurement department to verify the materials which
has been approved by the client or consultant for a project. If the project is awarded the planning
department will prepare the list of materials that are going to be used in project, which contains the
following details of materials:
➢ Planned date
➢ Lead time
➢ Design drawing approval
➢ Material sample approval
➢ Approval exclusion
➢ Vendor
➢ Client code
This is the gap identified during the workshops but for being a mandatory business requirement it
shall be consider for development. The formats and functionalities will be captured in function
requirement specification (FRS) which will be duly approved by business users.

➢ Purchase requisition shall be created manually by the requesting department.

➢ Project PR
➢ Asset PR
➢ General PR
➢ Tendering PR
Document types will have separate numbering series. Project PR document type will be used to


44
SAP@RRAB


➢ RFQ header
➢ Items
particular activity element has to be maintained for future reference like compare quotation. The
RFQ release level are listed below

5.2.7 RFQ Document Type

➢ Material RFQ
➢ Service RFQ
➢ Tendering RFQ
Document types will have separate numbering series. Material RFQ document type will be used to

45
SAP@RRAB
price.
Prerequisites
three quotations.
Reference quotation
Percentage basis
Price Comparison
➢ Cash discount
➢ Delivery costs
➢ Effective price
5.2.9 Contract
The procurement of the agreed material is done by raising the PO as per contract terms and
conditions. A form of outline purchase agreement under which materials are procured on
predetermined dates within a certain time period for a certain Quantity or Value of contract
The contract release level for Civil and Architecture & General Materials are listed below
46
SAP@RRAB

GM General Manager
The contract release level for Electro-Mechanical Materials are listed below

EM Electro-Mechanical Manager
GM General Manager
5.2.10 Contract Document Type

Contract document types are classified as
➢ Quantity Contract
➢ Value Contract
Document types will have separate numbering series. Quantity or Value contract document type will
be used to execute this business process. Refer system configuration consideration.

exist
➢ Standard
➢ Subcontracting
➢ Stock transfer
Conditions
47
SAP@RRAB
Freight
Discount
Insurance
value of the goods.
Customs Duty
Transportation
PO History
specific basis.
Partner Roles
48
SAP@RRAB
Plant
Texts
two kinds of text

➢ Project PO
➢ Asset PO
➢ General PO
These Purchase Documents will have separate numbering series.
general department.

The Purchase Order release level for Civil and Architecture Materials are listed below

The Purchase Order release level for Electro Mechanical Materials are listed below
49
SAP@RRAB

EM Electro-Mechanical Manager Will be Fixed
The Purchase Order release level for General Materials are listed below

and less than 20,000 SAR, the release will be done by first the Procurement Manager and then the

➢ Goods receipts with reference to a reservation
➢ Goods receipts with reference to an order
The first type and second type of Goods receipt is not required for ACC. Goods receipt with
reference to purchase order shall cover Project PO, Asset PO, and General PO etc. At a time GR
can be made against only one purchase order.
purchase order.
➢ Goods receiving can check whether the delivery actually corresponds to the order
checking (over deliveries and under deliveries)
event of a late delivery
➢ The goods receipt is valuated on the basis of the purchase order price or the invoice price
50
SAP@RRAB

➢ Invoice
➢ Credit Memo
➢ Delivery Costs

invoice or credit memo is received afterwards.
51
SAP@RRAB
transaction takes place. There is no quantity-based update.
can be entered if an invoice has already been posted for that item.
➢ A subsequent debit/credit cannot refer to a particular invoice.
account.
the type of price control used.
the consumption account.
account, or for PO items with account assignment it posts to the consumption account.

invoice.
52
SAP@RRAB
➢ Freight costs
➢ Customs
price control.
a stock coverage.
Business
Business Process Step Input Dependency :
Step ID
53
SAP@RRAB
Business
Step ID
Project
MM-02-00 Material Submittal Z
Engineer
Project
Manager
Purchase
Officer
Procurement
Manager
MM-02-05 Print RFQ ME9A PM/EM With reference to RFQ
Purchase
Officer
MM-02-07 Compare Quotation ME49 PM With reference to RFQ
Purchase
MM-02-08 Contract ME31K With reference to RFQ
Officer
With reference to
MM-02-09 Release Contract Level-1 ME35K PM
Contract
With reference to
MM-02-10 Release Contract Level-1 ME35K CM
Contract
With reference to
MM-02-11 Release Contract Level-2 ME35K GM
Contract
MM-02-12 Print Contract ME9K
Officer Contract
Officer Contract
MM-02-14 Release PO Level-1 ME29N PM/EM
MM-02-15 Release PO Level-2 ME29N CM
MM-02-16 Release PO Level-3 ME29N GM

Purchase
Officer
MM-02-18 Shipment Control File Z With reference to PO
Warehouse
Manager
Warehouse
MM-02-20 Print GRN MB90 With reference to GRN
Manager
Procurement
Accountant

54
SAP@RRAB

inventory

➢ Shipment Control File will be done with reference to PO
➢ Invoice will be done with reference


Configuration Data captured in the Business Process MM-01 will also be applicable for this Business
Process.

Reports described in business process MM-01 will also be used for this business process MM-
02.The additional forms specific for this business process is listed in below table
Report Format
Report T Report (Attach Document:
Report ID Excel, word, Image..) Gap Identified
Name Code Description
REP-MM- Contract by
ME3L Contract by Vendor SAP Standard
16 Vendor
REP-MM- Contract by ME3M Contract by SAP Standard
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Report Format
17 Material Material
REP-MM- Contract SAP Standard

ME3K Contract General
18 General
REP-MM- Contract by SAP Standard
ME3J Contract by Project
19 Project
Contract by SAP Standard
REP-MM- Contract by
Material ME3C
20 Material Group
Group

Forms described in business process MM-01 will also be used for this business process MM-02.The
additional forms specific for this business process is listed in below table
Format
T (Attach Document:
Code Excel, word,
Image..)
FRM-MM-04 Contract ME9K Contract GAP-MM-06-F

Format
T (Attach Document:
Code Excel, word,
Image..)
NA

Enhancement described in business process MM-01 will also be used for this business process MM-
02.
Format
Image..)
NA
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SAP@RRAB
Data Conversion described in business process MM-01 will also be used for this business process
MM-02.The additional data conversion specific for this business process is listed in below table

(No. of Comments
Records)
OD-MM-03 Contract BDC 100
present Implementation Scope

ROL-MM-07 Procurement Engineer Material Submittal
ROL-MM-01 Purchase Officer Convert RFQ to PO
ROL-MM-02 PM/EM Approve PO
ROL-MM-01 Purchase Officer Create Contract
ROL-MM-02 Procurement Manager Approve Contract
ROL-MM-03 Commercial Manager Approve Contract
ROL-MM-04 General Manager Approve Contract
ROL-MM-01 Purchase Officer Print Contract

57
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PO
hand
ROL-MM-06 Accountant _ AP Create Shipment Control File
Consultant-
MM
6 Project Procurement Consumables General – (ID: MM-03)
6.1 Project Procurement – Consumables General: AS-IS

58
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59
SAP@RRAB
6.2 Project Procurement – Consumables General: TO-BE
MM-03 : Project Procurement – Consumables General
MM-03-01
Automatic or Purchase Requisition

Manual Processing Not Approved
For Approval
MM-03-02
Release- Civil& Architect / Electro

Mechanical
MM-03-03

Release- NO
Procurement
Manager
YES
MM-03-05
NO
Release-
Commercial Manager
YES
MM-03-07 MM-03-06
NO
General Manager
MM-03-09 MM-03-08

(GRN)
MM-03-10
Invoice Processing
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SAP@RRAB

Account Assignment category is mandatory for consumable materials in Purchase Requisition.
At ACC, all the consumable materials are non-stock material, whenever if the goods are received
the system will automatically book the charges in to the consumption account.

➢ Project PR
➢ Asset PR
➢ General PR
➢ Tendering PR
Document types will have separate numbering series. For executing this business process General
PR document type will be used. Refer system configuration consideration.




61
SAP@RRAB

exist
➢ Standard
➢ Subcontracting
➢ Stock transfer
Account Assignment category is mandatory for consumable materials in Purchase order.
the system will automatically book the charges in to the consumption account.
Conditions
Freight
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SAP@RRAB
Discount
Insurance
value of the goods.
Customs Duty
Transportation
PO History
specific basis.
Partner Roles
Plant
Texts
two kinds of text

➢ Project PO
➢ Asset PO
➢ General PO
63
SAP@RRAB
general department.



Electro-Mechanical
EM Will be Fixed
Manager

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SAP@RRAB
6.2.8 Goods Receipt

Goods receipt with reference to purchase order shall cover General PO. At a time GR can be made
against only one purchase order.
the system will automatically book the charges in to the consumption account. Stock will not get
updated in the system for consumable materials.
purchase order.
➢ Goods receiving can check whether the delivery actually corresponds to the order.
checking (over deliveries and under deliveries).
event of a late delivery.
➢ The vendor invoice is checked against the ordered quantity and the delivered quantity.
➢ The goods receipt is valuated on the basis of the purchase order price or the invoice price.

➢ Invoice
➢ Credit Memo
65
SAP@RRAB

➢ Delivery Costs
invoice or credit memo is received afterwards
transaction takes place. There is no quantity-based update
can be entered if an invoice has already been posted for that item
➢ A subsequent debit/credit cannot refer to a particular invoice
account
the type of price control used
the consumption account
66
SAP@RRAB
account, or for PO items with account assignment it posts to the consumption account

invoice.
➢ Freight costs
➢ Customs
67
SAP@RRAB
price control.
a stock coverage.
Business
Business Process Input Dependency :
Step Description Output :
Step ID
Purchase
MM-03-01 Create PR ME51N
Officer
Department
MM-03-02 Release PR ME54N
Manager
Purchase
MM-03-03 Create PO ME21N With reference to PR
Officer
MM-03-04 Release PO – Level 1 ME29N PM/EM
MM-03-05 Release PO – Level 2 ME29N CM
MM-03-06 Release PO – Level 3 ME29N GM

Purchase
Officer
Warehouse
Manager
Warehouse
MM-03-09 Print GRV MB90 Manager/Store- With reference to GRN
In Charge
Purchase
Accountant
68
SAP@RRAB


inventory

➢ Invoice will be done with reference


Process.

Reports described in business process MM-01 will also be used for this business process MM-03.
Report Format
NA
69
SAP@RRAB

Forms described in business process MM-01 will also be used for this business process MM-03.
Format
T (Attach Document:
Code Excel, word,
Image..)
Purchase ME9F
FRM-MM-02 Purchase Order GAP-MM-02-F
Order
Goods MB90
Goods Receipt
FRM-MM-03 Receipt GAP-MM-03-F
Voucher
Voucher

Format
T (Attach Document:
Code Excel, word,
Image..)
NA

Format
Image..)
NA
MM-03.

Data ID Description of Data (No. of Comments
(Manual/ABAP)
Records)
OD-MM-01 Purchase Order BDC 10000
planning
OD-MM-02 Initial Entry of Goods BDC 10000
planning
70
SAP@RRAB

ROL-MM-01 Purchase Officer Create PR
ROL-MM-01 Purchase Officer Convert PR to PO
ROL-MM-02 PM/EM Approve PO

PO
hand
71
SAP@RRAB
Consultant-
MM
72
SAP@RRAB
7 Project Procurement Service via Quotation – (ID:MM-04)
7.1 Project Procurement Service via Quotation: AS-IS

73
SAP@RRAB
7.2 Project Procurement Service via Quotation: TO-BE
MM-04 : Project Procurement – Service Via Quotation
Automatic
Processing MM-04-02
Electro Mechanical
For Approval NO
YES
MM-04-03

Release-
Procurement Manager
Approved
MM-04-05
Print RFQ
MM-04-07
Service or Work Order

Processing Not Approved
For Approval
MM-04-08
NO
Releasel-
Procurement
Manager
YES
MM-04-09
NO
Release-
Commercial Manager
YES
MM-04-10
NO
Release-
General Manager
MM-04-12 MM-04-11
Service Entry Sheet Print Purchase Order
MM-04-13
Invoice Processing
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SAP@RRAB
7.2.2 Service Purchase Requisition

Purchase requisition must contain account assignment category value as Network - N and its
Activities, Item category value as “D”, material group, quantity and delivery date of the material to
be supplied.
➢ Purchase Requisitions shall be created automatically from Project System
➢ Purchase requisition shall be created manually by the requesting department
7.2.3 Service Purchase Requisition Approval




➢ RFQ header
➢ Items
Contain the total quantities and delivery dates for the materials or services specified in the RFQ

75
SAP@RRAB

➢ Material RFQ
➢ Service RFQ
➢ Tendering RFQ
Document types will have separate numbering series. Service RFQ document type will be used to

price.
Prerequisites
three quotations.
Reference quotation
Percentage basis
76
SAP@RRAB
Price Comparison
➢ Cash discount
➢ Delivery costs
➢ Effective price
7.2.7 Service Purchase Order

Service Purchase order will be created with reference to approved RFQ. A purchase order is a
The following procurement types exist for Service Purchase Order
Service performance of the total volume specified in a purchase order item can be spread over a
certain period in a delivery schedule, consisting of lines indicating the individual quantities with
their corresponding planned delivery dates.
Conditions
➢ At item level, to the material or service to be supplied
PO History
specific basis.
Plant
Texts
two kinds of text
77
SAP@RRAB

Service PO will cover the Service procurement need all kind of services that related to ACC. An
item of the procurement type "external service" contains a set of service specifications. The latter
can be hierarchically structured. The summary view of such a hierarchical structure is referred to
as an outline. The outline comprises a number of levels, each representing a level of the service
hierarchy. The order quantities are set out in service lines, representing individual jobs or activities.
Value limits are specified instead of service lines for services or work that initially cannot be
specified precisely.
If services covered by an already existing contract are released (ordered, or called off against the
contract), the PO item can contain a value limit relating to the contract in question. The service
activities are initialized by the operation department. Then the Purchase Order has been released
for that service. The service order contains the relevant Network/WBS and the related activities, it
includes gross price and quantity.
info record, vendor master etc. This can be changed subsequently. Change history of Purchase
7.2.8 Service Purchase Order Approval

The Purchase Order release level for Civil and Architecture services are listed below

The Purchase Order release level for Electro Mechanical services are listed below

Electro-Mechanical
EM Will be Fixed
Manager
The Purchase Order release level for General services are listed below

EM Commercial Manager Will be Fixed
78
SAP@RRAB
7.2.9 Service Entry Sheet

➢ Service entry sheets shall be created for the quantity of Service received
➢ Part service of the total quantity of service mentioned in the PO can be received
➢ Service entry sheet is created with reference to service order for % of service completed
➢ Service entry sheet is created for planned services in PO or unplanned services

Invoice verification shall be done for the invoice raised by the service vendor based on the service
entry sheet created.
and accounting. Invoice will created with reference to service entry sheet.
The main task of Logistics Invoice Verification is to complete the procedure of service procurement
by posting the vendor invoice and to pass on information concerning the invoice to Financial
Accounting and subsequent applications.
For each incoming invoice, Logistics Invoice Verification creates an MM invoice document and an
FI invoice document.
conditions in the PO (e.g. Price and Payment terms). If the conditions in the PO are satisfied then
the Invoice forwarded to finance department.
➢ Invoice
➢ Credit Memo
➢ Delivery Costs
Business
Step ID
Project
Manager
79
SAP@RRAB
Business
Step ID
Purchase
Officer
Procurement
Manager
Procurement
MM-04-05 Print RFQ ME9A With reference to RFQ
Manager
Purchase
Officer
Procurement
Manager
Officer Quotation
Commercial
Manager
General
Manager
Purchase
Officer
MM-04-13 Service Entry Sheet ML81N Site-In Charge With reference to PO
Procurement
MM-01-14 Invoice Receipt MIRO With reference to SES
Accountant


➢ External services are highly controlled by the External Service Management

80
SAP@RRAB
➢ Service entry sheet will be done with reference to PO

➢ Invoice will be done with reference to Service entry sheet

After service entry sheet, the following actions will be triggered
➢ Material Document Inventory – Project site

Process.

Reports described in business process MM-01 will also be used for this business process MM-
04.The additional forms specific for this business process is listed in below table
Report Format
Report (Attach Document:
Report ID Report Name T Code Excel, word, Gap Identified
Description Image..)
REP-MM- Reporting on Reporting on SAP Standard

MSRV6
23 Services Services
REP-MM- List of Service List of Service SAP Standard
ML84
24 Entry Sheet Entry Sheet
REP-MM- Planned/Actual Planned/Actual SAP Standard
ME2S
25 Comparison Comparison
REP-MM- List of SAP Standard
AC06 List of Services
26 Services
Purchase Order
REP-MM- Order based
MSRV3 based on activity
27 on activity
number
number

Format
T (Attach Document:
Code Excel, word,
Image..)
FRM-MM-05 Work Order ME9F Work Order GAP-MM-07-F

Service ME9A
FRM-MM-06 Service RFQ GAP-MM-08-F
RFQ
81
SAP@RRAB

Format
T (Attach Document:
Code Excel, word,
Image..)
NA

Format
Image..)
NA

MM-04

(Manual/ABAP)
Records)
OD-MM-04 Work Order BDC 10000

ROL-MM-01 Purchase Officer Convert RFQ/PR to PO
82
SAP@RRAB
ROL-MM-02 PM/EM Approve PO-Level 1
ROL-MM-03 Commercial Manager Approve PO- Level 2
ROL-MM-04 General Manager Approve PO- Level 3
ROL-MM-01 Purchase Officer Print Work Order

Create, Change Display SES against
ROL-MM-09 Site-In Charge
PO
ROL-MM-05 Warehouse Manager Create Invoice
Consultant-
MM
83
SAP@RRAB
8 Project Procurement Service via Contract – (ID: MM-05)
8.1 Project Procurement Service via Contract: AS-IS

84
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8.2 Project Procurement Service via Contract: TO-BE
MM-05 : Project Procurement – Service Via Contract
Automatic
Processing MM-05-02

For Approval Electro Mechanical NO
YES
MM-05-03

Release-
Procurement Manager
Approved
MM-05-05
MM-05-07 Print RFQ
Contract Processing
Not Approved
MM-05-12
Not Approved
For Approval
Service / Work Order
Processing
MM-05-08
Release- NO
MM-05-13
Procurement
Release- NO
Manager
YES For Approval Procurement
Manager
MM-05-09
YES
NO
Release- MM-05-14
Commercial Manager NO
Release-
YES Commercial Manager
MM-05-10
YES
NO
Release- MM-05-15
General Manager NO
Release-
General Manager
MM-05-11
MM-05-16
NO
Print Contract Print Purchase Order
MM-05-17
Service Entry Sheet
MM-05-18
Invoice Processing
85
SAP@RRAB

Purchase requisition must contain account assignment category value as Network - N and its
Activities, Item category value as “D”, material group, quantity and delivery date of the material to
be supplied.
➢ Purchase Requisitions shall be created automatically from Project System.
8.2.3 Service Purchase Requisition Approval

The Purchase Requisition release level for Civil and Architecture Services are listed below

The Purchase Requisition release level for Electro-Mechanical Services are listed below


➢ RFQ header
➢ Items
Contain the total quantities and delivery dates for the materials or services specified in the RFQ

86
SAP@RRAB

➢ Material RFQ
➢ Service RFQ
➢ Tendering RFQ
Document types will have separate numbering series. Service RFQ document type will be used to

price.
Prerequisites
three quotations.
Reference quotation
Percentage basis
87
SAP@RRAB
Price Comparison
➢ Cash discount
➢ Delivery costs
➢ Effective price
8.2.7 Contract
The procurement of the agreed service is done by raising the PO as per contract terms and
conditions. A form of outline purchase agreement under which services are procured on
predetermined dates within a certain time period for a certain Quantity or Value of contract
The contract release level for Civil and Architecture & General Services are listed below

GM General Manager
The contract release level for Electro-Mechanical Services are listed below

Electro-Mechanical
EM
Manager
GM General Manager
8.2.8 Contract Document Type

Contract document types are classified as
➢ Quantity Contract
➢ Value Contract
Document types will have separate numbering series. Quantity or Value contract document type will
be used to execute this business process. Refer system configuration consideration.
8.2.9 Service Purchase Order

Service Purchase order will be created with reference to approved contract. A purchase order is a
88
SAP@RRAB

The following procurement types exist for Service Purchase Order
Service performance of the total volume specified in a purchase order item can be spread over a
certain period in a delivery schedule, consisting of lines indicating the individual quantities with
their corresponding planned delivery dates.
Conditions
➢ At item level, to the material or service to be supplied
PO History
specific basis.
Plant
Texts
two kinds of text
Service PO will cover the Service procurement need all kind of services that related to ACC. An
item of the procurement type "external service" contains a set of service specifications. The latter
can be hierarchically structured. The summary view of such a hierarchical structure is referred to
as an outline. The outline comprises a number of levels, each representing a level of the service
hierarchy. The order quantities are set out in service lines, representing individual jobs or activities.
Value limits are specified instead of service lines for services or work that initially cannot be
specified precisely.
If services covered by an already existing contract are released (ordered, or called off against the
contract), the PO item can contain a value limit relating to the contract in question. The service
activities are initialized by the operation department. Then the Purchase Order has been released
for that service. The service order contains the relevant Network/WBS and the related activities, it
includes gross price and quantity.
info record, vendor master etc. This can be changed subsequently. Change history of Purchase
89
SAP@RRAB
8.2.10 Service Purchase Order Approval

The Purchase Order release level for Civil and Architecture services are listed below

The Purchase Order release level for Electro Mechanical services are listed below

Electro-Mechanical
EM Will be Fixed
Manager
The Purchase Order release level for General services are listed below

8.2.11 Service Entry Sheet

➢ Service entry sheets shall be created for the quantity of Service received
➢ Part service of the total quantity of service mentioned in the PO can be received
➢ Service entry sheet is created with reference to service order for % of service completed
➢ Service entry sheet is created for planned services in PO or unplanned services

Invoice verification shall be done for the invoice raised by the service vendor based on the service
entry sheet created.
and accounting. Invoice will created with reference to service entry sheet.
The main task of Logistics Invoice Verification is to complete the procedure of service procurement
by posting the vendor invoice and to pass on information concerning the invoice to Financial
Accounting and subsequent applications.
90
SAP@RRAB
For each incoming invoice, Logistics Invoice Verification creates an MM invoice document and an
FI invoice document.
conditions in the PO (e.g. Price and Payment terms). If the conditions in the PO are satisfied then
the Invoice forwarded to finance department.
➢ Invoice
➢ Credit Memo
➢ Delivery Costs
Business
Step ID
Project
Manager
Purchase
Officer
Procurement
Manager
MM-05-05 Print RFQ ME9A PM/EM With reference to RFQ
Purchase
Officer
Procurement
Manager
Purchase
MM-05-08 Create Contract ME31K With reference to RFQ
Officer
MM-05-09 Release Contract-Level 1 ME35K PM/EM
Commercial
MM-05-10 Release Contract-Level 2 ME35K
Manager
General
MM-05-11 Release Contract-Level 3 ME35K
Manager
Officer Quotation
91
SAP@RRAB
Business
Step ID
Commercial
Manager
General
Manager
Purchase
Officer
MM-05-17 Service Entry Sheet ML81N Site-In Charge With reference to PO
Procurement
MM-05-18 Invoice Receipt MIRO With reference to SES
Accountant


➢ Service activities are highly controlled by the External service management

➢ PO will be done with reference to Contract
➢ Service entry sheet will be done with reference to PO
➢ Invoice will be done with reference to SES

After service entry sheet, the following actions will be triggered
➢ Material Document Inventory – Project site
92
SAP@RRAB

Process.

Reports described in business process MM-01 & MM-04 will also be used for this business process
MM-05.
Report Format
NA

Forms described in business process MM-01 & MM-04 will also be used for this business process
MM-05.
Format
T (Attach Document:
Code Excel, word,
Image..)
NA

Format
T (Attach Document:
Code Excel, word,
Image..)
NA

Format
Image..)
NA
93
SAP@RRAB

Data Conversion described in business process MM-01 & MM-04 will also be used for this business
process MM-05.

(No. of Comments
Records)
NA

ROL-MM-01 Purchase Officer Convert RFQ to Contract
ROL-MM-02 Procurement Manager Approve Contract-Level 1
ROL-MM-03 Commercial Manager Approve Contract - Level 2
ROL-MM-04 General Manager Approve Contract - Level 3
ROL-MM-01 Purchase Officer Convert Contract to PO
ROL-MM-02 PM/EM Approve PO-Level 1
ROL-MM-03 Commercial Manager Approve PO- Level 2
ROL-MM-04 General Manager Approve PO- Level 3
ROL-MM-01 Purchase Officer/Electro Mech Engg Print Work Order
ROL-MM-05 Warehouse Manager Generate Purchasing Report

Create, Change Display SES against
PO
94
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Consultant-
MM
95
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9 RFQ Process for Tendering Department – (ID: MM-06)
9.1 RFQ Process for Tendering Department: AS-IS

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9.2 RFQ Process for Tendering Department: TO-BE
MM-06 : RFQ Process – Tendering Department
MM-06-01
Automatic – from SD
Processing
MM-06-02
Request for Quotation

(RFQ)
MM-06-03
Maintain Quotation
MM-06-04
Compare Quotation
MM-06-05
Price Update in SD
Document
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Purchase requisition must contain account assignment category value and its Activities, Item
category value as “D”, material group, quantity and delivery date of the material to be supplied.
➢ Purchase Requisitions shall be created automatically from Sales and Distribution/Project
System.

➢ Project PR
➢ Asset PR
➢ General PR
➢ Tendering PR
Document types will have separate numbering series. Tendering PR document type will be used to
execute this business process. Refer system configuration consideration

➢ RFQ header
➢ Items
9.2.5 RFQ Document Type

➢ Material RFQ
➢ Service RFQ
➢ Tendering RFQ
Document types will have separate numbering series. Tendering RFQ document type will be used to
98
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price.
Prerequisites
three quotations.
Reference quotation
Percentage basis
Price Comparison
99
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➢ Cash discount
➢ Delivery costs
➢ Effective price
Quotations for the external services are requested from the subcontractors. Some subcontractors
may be requested just to provide quotations for labor or material in the Subcontractor BOS. This
assumes that the materials are purchased by ACC and provided to the subcontractor for
construction work. We can compare the prices of different quotations related to a particular bid using
the price comparison list. The quotations are listed by items with the most reasonable price first. The
System will copy the prices from the subcontractor quotation to the customer quotation by calling the
price transfer in the subcontractor services report
Business
Step ID
MM-06-01 Purchase Requisition ME51N Tendering
MM-06-02 RFQ ME41 Tendering
MM-06-03 Maintain Quotation ME47 Tendering
MM-06-04 Compare Quotation ME49 Tendering
MM-06-05 Price Update in SD ME49 Tendering


inventory
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➢ RFQ will be done with reference to PR
➢ Price Updation will be done through Compare Quotation

➢ Price will be updated in SD document

Process.

MM-06
Report Format
NA

MM-06
Format
T (Attach Document:
Code Excel, word,
Image..)
NA

Format
T (Attach Document:
Code Excel, word,
Image..)
NA
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Format
Image..)
NA

(No. of Comments
Records)
NA

ROL-MM-10 Tendering Purchase Requisition
ROL-MM-10 Tendering RFQ
ROL-MM-10 Tendering Maintain Quotation
ROL-MM-10 Tendering Compare Quotation
ROL-MM-10 Tendering Price Update in SD
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Consultant-
MM
103
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10 Asset Procurement – (ID: MM-07)
10.1 Asset Procurement: AS-IS

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10.2 Asset Procurement: TO-BE
MM-07 : Asset Procurement
MM-07-01
Manual
Processing Not Approved
For Approval
MM-07-02
Release- Civil& Architect / Electro

Mechanical
MM-07-03

Release- NO
Procurement
Manager
YES
MM-07-05
NO
Release-
Commercial Manager
YES
MM-07-07 MM-07-06
NO
General Manager
MM-07-09 MM-07-08

(GRN)
MM-07-10
Invoice Processing
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Purchase Requisitions are created under the following situations. Purchase requisition shall be
created manually by the requesting department.Account Assignment category ‘A’ is mandatory for
Asset Purchase Requisition.

➢ Project PR
➢ Asset PR
➢ General PR
Document types will have separate numbering series. For executing this business process Asset PR
document type will be used. Refer system configuration consideration.


Purchase order will be created with reference to the approved PR. A purchase order is a formal
request or instruction from a purchasing organization to a vendor or a plant to supply or provide a
certain quantity of goods or services at or by a certain point in time.
exist
➢ Standard
➢ Subcontracting
➢ Stock transfer
Account Assignment category is mandatory for consumable materials in Purchase order.
Conditions
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Freight
Discount
Insurance
value of the goods.
Customs Duty
Transportation
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PO History
specific basis.
Partner Roles
Plant
Texts
two kinds of text
➢ Header text: applies to the entire document

➢ Project PO
➢ Asset PO
➢ General PO
general department.

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Electro-Mechanical
EM Will be Fixed
Manager


Goods receipt with reference to purchase order shall cover Asset PO. At a time GR can be made
against only one purchase order. At ACC, Asset goods receipt are considered as statistical GR and
there will not be any accounting entries.
➢ Goods receiving can check whether the delivery actually corresponds to the order.
checking (over deliveries and under deliveries).
event of a late delivery.
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➢ Invoice
➢ Credit Memo
➢ Delivery Costs
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invoice or credit memo is received afterwards.
transaction takes place. There is no quantity-based update.
can be entered if an invoice has already been posted for that item.
➢ A subsequent debit/credit cannot refer to a particular invoice.
account.
the type of price control used.
the consumption account.
account, or for PO items with account assignment it posts to the consumption account.

invoice.
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➢ Freight costs
➢ Customs
price control.
a stock coverage.
For a material with standard price, the system posts the unplanned delivery costs to the price
difference account.
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Business
Step ID
MM-07-01 Purchase Requisition ME51N Department
Release Purchase Department
MM-07-02 ME54N
Requisition Manager
Purchase
MM-07-03 Create Purchase Order ME21N
Officer
Release Purchase Order
MM-07-04 ME29N PM/EM
Level – 1
Release Purchase Order Commercial
MM-07-05 ME29N
Level – 2 Manager
Release Purchase Order General
MM-07-06 ME29N
Level – 3 Manager
Purchase
MM-07-07 Print Purchase Order ME9F
Officer
Warehouse
MM-07-08 Goods Receipt MIGO
Manager
Warehouse
MM-07-09 Print GRV MB90
Manager
Accountant _
MM-07-10 Invoice Receipt MIRO
AP



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Process.

Report Format
NA

Format
T (Attach Document:
Code Excel, word,
Image..)
Asset MB9F
Asset Purchase
FRM-MM-07 Purchase GAP-MM-09-F
Order
Order

Format
T (Attach Document:
Code Excel, word,
Image..)
NA

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Format
Image..)
NA

(Manual/ABAP)
Records)
NA

ROL-MM-01 Purchase Officer Purchase Requisition
ROL-MM-02 Procurement Manager Release Purchase Requisition
ROL-MM-01 Purchase Officer Create Purchase Order
ROL-MM-02 PM/EM Release Purchase Order Level – 1
ROL-MM-03 Commercial Manager Release Purchase Order Level – 2
ROL-MM-04 General Manager Release Purchase Order Level – 3
ROL-MM-01 Purchase Officer Print Purchase Order
ROL-MM-05 Warehouse Manager Goods Receipt
ROL-MM-05 Warehouse Manager/StoreKeeper Print GRV
ROL-MM-06 Accountant _ AP Invoice Receipt
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Consultant-
MM
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11 Material Transfer – (ID: MM-08)
11.1 Material Transfer: AS-IS

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11.2 Material Transfer: TO-BE
MM-08 Material Transfer
MM-08-01
Material Transfer from

Central Warehouse
MM-08-04
Print Material Transfer

Document
MM-08-02
Material Receipt in
Project Warehouse
MM-08-03
Stock overview
(Project Warehouse)
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Using Transfer Posting component, one can transfer material from one storage location to another
storage location. At ACC, every plant will have two storage locations. Storage locations are
classified as Project Warehouse and Central Warehouse.
Transfer posting refers to the process of removal of materials from one storage location to another
storage location. If the materials are received at central warehouse for a project, that materials are
transferred from central warehouse to project warehouse by using transfer posting functionality in
SAP system.
While doing transfer posting goods receipt number needs to be maintained. Based on this number,
material transfer document will be printed with all the information like Purchase Requisition number,
Purchase Order number and Project.
Materials are transferred by two step procedure.
First Step (at Central Warehouse): Material transferred (Removal) from Central Warehouse to
Project Warehouse by using 313 Q movement type. Material transfer document will be printed.
Second Step (at Project Warehouse): Material transferred (Place/Receipt) from Central Warehouse
to Project Warehouse by using 315 Q movement type.
Business
Step ID
Material Transfer at Central
MM-08-01 MB1B With reference to GRV
Central Warehouse Storekeeper
Print Material Transfer Central
MM-08-02 MB90 With reference to MD
document Storekeeper
Material Receipt at Project
MM-08-03 MB1B
Project Warehouse Storekeeper
Project
MM-08-04 Stock Overview MMBE
Storekeeper


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After transfer posting, the following actions will be triggered

Process.

Report Format
NA

Format
T (Attach Document:
Code Excel, word,
Image..)
Material MB90
Material Transfer
FRM-MM-07 Transfer GAP-MM-10-F
document
document

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Format
T (Attach Document:
Code Excel, word,
Image..)
NA

Format
Image..)
NA

(Manual/ABAP)
Records)
NA

ROL-MM-05 Warehouse Manager Material Transfer Posting (First Step)
ROL-MM-05 Warehouse Manager/Storekeeper Print Material Transfer document

Material Transfer Posting (Second
Step)
121
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Consultant-
MM
122
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12 Goods Issue – (ID: MM-09)
12.1 Goods Issue: AS-IS

123
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12.2 Goods Issue: TO-BE
MM-09 Goods Issue
MM-09-01
Stock overview
(Project Warehouse)
MM-09-02
NO
Stock Available
Raise Purchase Requisition
YES
MM-09-03
Material Issue
MM-09-04
Material Consumption in
Project Warehouse
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Using Goods Issue component, one can post a material withdrawal or a material issue. A goods
issue leads to a reduction in storage location stock.
Standard SAP system allows goods issue for
➢ Project from Unrestricted Project
➢ Network from Unrestricted Project
At ACC, materials will be issued for project by using 221 ‘Q’ movement type and for network by
using 281 ‘Q’. After goods issue the system will automatically reduce the stock for project
warehouse and the cost will be booked against the project WBS element.
Business
Step ID
Project
MM-09-01 Stock Overview MMBE
Storekeeper
Raise Purchase Project
MM-09-02 ME51N
Requisition Storekeeper
Project
MM-09-03 Goods Issue for Project MB1A
Storekeeper
Material Consumption in Project
MM-09-04 MB1A
Project Warehouse Storekeeper



Goods Issue will be done with reference to Project

After Goods Issue, the following actions will be triggered
➢ Material Document Inventory – Project Warehouse
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Process.

Report Format
NA

Format
T (Attach Document:
Code Excel, word,
Image..)
NA

Format
T (Attach Document:
Code Excel, word,
Image..)
NA

Format
Image..)
NA
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(No. of Comments
Records)
NA

ROL-MM-09 Site-In Charge Stock Overview
ROL-MM-09 Site-In Charge Raise Purchase Requisition
ROL-MM-09 Site-In Charge Goods Issue for Project

Material Consumption in Project
Warehouse
Consultant-
MM
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13 Return Delivery – (ID: MM-10)
13.1 Return Delivery: AS-IS

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13.2 Return Delivery: TO-BE
MM-10 : Return Delivery Process
MM-10-01
Create Return Delivery

Manual
MM-10-02
Credit Memo for

Return Delivery
OR
Recovery From
Vendor
➢ Create return delivery for rejection with respect to latest goods receipt document. Materials
sent back to supplier for replacement/ as return by making return delivery using movement
type ‘122’.
➢ Credit memo will be created for return delivery process.
➢ Rejected material stock will be reduced by the system automatically
Business
Step ID
With reference to
Store
MM-10-01 Return Delivery MIGO Material document
Supervisor
Number
With reference to
MM-10-02 Credit Memo MIRO
Vendor
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Return Delivery will be done with reference to Material document or Returns Purchase Order.

After Return Delivery, the following actions will be triggered
➢ Material Document Inventory - Stores

Process.

Report Format
NA

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Format
T (Attach Document:
Code Excel, word,
Image..)
NA

Format
T (Attach Document:
Code Excel, word,
Image..)
NA

Format
Image..)
NA

(No. of Comments
Records)
NA

ROL-MM-05 Warehouse Manager Create Return Delivery
ROL-MM-06 Accountant _ AP Create Credit Memo
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Consultant-
MM
132
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14 Physical Inventory – (ID: MM-11)
14.1 Physical Inventory: AS-IS

133
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14.2 Physical Inventory: TO-BE
MM-11 : Physical Inventory Process
Manual
MM-1-01
Create Physical Inventory
Batch process Document
for PID MM-11-02
Creation
Print PID
MM-11-03
Enter the Count
MM-11-04
Difference in NO
Re-count
Comparison
YES
MM-11-05
Approval
MM-11-06 MM-11-07
Post the Difference Print Document
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At ACC, Yearly once physical Inventory will be taken for all the materials, so stock adjustment will
happen once in a year in the SAP system. The journal entries are listed below
Excess Quantity:
Stock DR
Gain/Loss account CR
Shortage Quantity:
Stock CR
Gain/Loss account DR
Physical inventory component allows the carrying out of physical inventory of the company’s
warehouse stock for balance sheet purpose. There are different types of physical inventory
procedures like Periodic Processing, Continuous inventory, Cycle counting. Any of these techniques
can be used for this process.
Periodic Inventory
In this process all the stocks in the company are physically counted on the balance sheet key date.
The entire warehouse must be blocked for materials movement
Continuous Inventory
Continuous inventory ensures that all the material is counted at least once during the year. Stocks
are counted throughout the year.
Cycle Counting
Cycle counting is a method of physical inventory where inventory is counted at regular intervals
within a fiscal year. These intervals (or cycles) depend on the cycle counting indicator set for the
materials. It allows fast-moving items to be counted more frequently than slow-moving items.
Business
Step ID
Store
MM-11-01 Create PID MI01
Supervisor
Store
MM-11-02 Print PID MI21
Supervisor
Store
MM-11-03 Enter Count MI04 With reference to PID
Supervisor
Store
MM-11-06 Post the Difference MI07 With reference to PID
Supervisor
Store
MM-11-07 Print PID MI21
Supervisor

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Post the Difference will be done with reference to PID.

After Post the Difference, the following actions will be triggered
➢ Material Document Inventory - Stores

Process.

Report Format
NA

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Format
T (Attach Document:
Code Excel, word,
Image..)
FRM-MM-08 PID MI21 PID GAP-MM-11-F

Format
T (Attach Document:
Code Excel, word,
Image..)
NA

Format
Image..)
NA

(No. of Comments
Records)
NA

ROL-MM-05 Warehouse Manager Create PID
ROL-MM-05 Warehouse Manager Enter Actual Count
ROL-MM-05 Warehouse Manager Post the differences
137
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Consultant-
MM
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15 Training Strategy
This section comprises of briefing the Training Approach that shall be adopted for this
implementation.
1. Training document “User Manual” will be made for the business processed mapped in the
BBP
2. The Same User Manual will be used for training Key Users by us
3. And as well for End User training by Key users
4. The following are the sections mainly comprised in the User Manual.
a) Project Procurement Material via Quotation
b) Project Procurement Material via Contract
c) Project Procurement Consumables General
d) Project Procurement Service via Quotation
e) Project Procurement Service via Contract
f) RFQ Process for Tendering Department
g) Asset Procurement
h) Material Transfer
i) Goods Issue
j) Return Delivery
k) Physical Inventory
5. Separate Key User training Plan will be made by us in the realization phase
6. And would follow the plan for completing the training
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SAP@RRAB

Business Blueprint - Material Management

Project ACC - SAP Project

Author / Reviewer Version Date Distribution List

6.9 Forms/Documents Printed from this Business Process .......................................... 70

10 Asset Procurement – (ID: MM-07)............................................................................ 104

This Business Blue Print Document describes the following

1. Project Procurement Material via Quotation

1.1 Abbreviations Used

PID Physical Inventory Document

RFQ Request for Quotation

GRV Goods Receipt Voucher

Central N. Central E. Central W. Central S. Central

Central Northern Eastern Western Southern

3.1 Material Master (MD-MM-01)

3.1.1 Material Master: AS-IS

3.1.2 Material Master: TO-BE

3.1.2.1 Material Type

S.NO Material Type Description

The material type also decides

3.1.2.2 Material Group

3.1.2.3 Shipping Instruction

3.1.2.4 Purchasing Value Key

3.1.2.5 Unit of Measurement

Base unit of measure

Alternative Unit of Measure

3.1.2.6 Material Classification

3.1.2.7 CSI Code

Upload Type App. Volume

3.2 Vendor Master (MD- MM -02)

3.2.1 Vendor Master: AS-IS

3.2.2 Vendor Master: TO-BE

Company Code Data

Purchase Organisation Data

Vendor Schema Group

Vendor Account Group

➢ The number interval for the account number of the vendor

➢ Whether the number is assigned by the user or by the system

➢ Which specifications are necessary and/or possible in the master record

Account Group Description Number Range From Number Ranges To

Upload Type App. Volume

3.3 Source List (MD- MM -03)

3.3.1 Source List: AS-IS

3.3.2 Source List: TO-BE

Upload Type App. Volume

3.4 Purchase Info Record (MD- MM -04)

3.4.1 Purchase Info Record: AS-IS

3.4.2 Purchase Info Record: TO-BE

Types of Info record used by ACC are listed below

Purchase Info Record Number range

Type Number Range

Upload Type App. Volume

3.5 Service Master (MD- MM -05)

3.5.1 Service Master: AS-IS

3.5.2 Service Master: TO-BE

Service Category From Number Range TO Number range

Upload Type App. Volume

4 Project Procurement Material via Quotation (ID: MM-01)

4.1 Project Procurement Material via Quotation: AS-IS

4.2 Project Procurement Material via Quotation: TO-BE

4.2.1 Business Process Flow Chart

MM-01 : Project Procurement – Material Via Quotation

MM-01-01 Not Approved

MM-01-06 Request for Quotation