Professional Documents
Culture Documents
Activity
Define Organisation structure
Client
Company Code/ Its subsderies
Plant Code
Storage Location
Purchase Organisation
Purchase Group
CREATION OF COMPANY
6 DIGIT
GROUP OF ORG
LEGAL CONDITIONS OF COUNTRY
COMPANY CODE
Create Plant
PLANT ADDRESS
4 DIGIT ALPHA NUM CODE
TO DO ALL INVENTRY TRANSACTIONS
STOCK Balance
Material Types
Number Range
Material Groups
Characteristics
Class
• Release Group
• Release Code
• Release Indicator
• Release Strategy
Release Group
It is assigned to class & we can create the release group as per our
requirement.
Release Code
Release Indicator
It is an indicator which will release and block as per the
requirement.
Release Strategy
Contracts
A contract is a pre-determined long term agreement to supply
material or service for a certain period of time. Specific delivery
dates are not mentioned in the contracts. Contracts can be of two
types: Value Contract or Quantity contract
Schedule Agreement
In Scheduling agreements, we can enter scheduling lines which
gives details of quantity that should be delivered on specific date.
Plant must be entered in Schedule agreement so that materials
can be delivered at plant. These are generally used for materials
whose requirements are predictable.
Schedule Lines
We will now create the delivery dates, Schedule agreement
doesn’t require PO
Pricing Procedure
Consignment
In this type of procurement the goods procured are still in vendors
ownership, but the company is keeping the material on stock and
able to sell it directly where goods become the property of our
company only in case of consuming
Create Subcontracting PO
PO (Item category L)
Pipeline Handling
In pipeline handling, the company does not need to order or store
the material concerned. It is ready available as and when required
via a pipeline (e.g. oil or water), or some other type of cable (e.g.
electricity). Consumption of the material is settled with the vendor
on a regular basis.
Service Management
1. Goods Receipt
It is the type of inventory where the material is receiving from the
vendor through any source to a plant as new quantity.
Now we will go through some movement type for goods receipt
Origin Acceptance
2. Goods Issue
Goods Issue is the physical issue of the goods or material from the
warehouse. Goods issue posting results in a decrease in stock in
the warehouse.
3. Transfer Posting
Physical Inventory
It is the process to map or to compare the system stock with the
physical stock; this process is performed in 4 different ways
1. Periodic Inventory
Most of the time companies use this kind of inventory. In most
cases, it is done once a year, and this kind of inventory is called
annual physical inventory. That means that material stock is
counted once a year. Most of the times at the end of the year or
after the season end (in seasonal industries).All stocks of the
company are physically counted on the balance sheet key date. In
this case, every material must be counted. During counting, the
entire warehouse must be blocked for material movements.
FI and MM Integration
Automatic Account Determination
All the procurement activities are done right from the material
creation to PO ordering, receiving material from GR etc. Once
every process is done, we need to pay to vendor from the
respective department GL account and for that we cannot do
manually for all the material and it’s very hard to remember.
In Order to deal with this, SAP having a feature where it can
recognize the respective GL account automatically.
PO: - G/ L account comes automatically in account assignment -
material & account assignment category play main role.
Goods Movement: - G/L accounts come automatically – Material &
Movement Type play main role.
Split Valuation
It is used to valuate stock of material in same valuation area
differently.
Invoice Verification
In Invoice verification we verify the amount against the PO to pay
the respective vendor
E.g. After receiving the goods from the vendor, we verify the
invoice given by the vendor to pay.
Note: Before going to the examples lets go through some basic
point that we must know while doing the invoice verification.
1. If we flagged “GR-Bsd IV” in item level then we have 3 way
match or it will become as 2 way match as shown in figure.
I.e. in 3 way match we need GR to post the invoice (PO—GR—IR)
&
In 2 way match GR is not necessary we can post invoice with
reference to PO (PO— IR)
Automatic PO Process
OX15
OX02
OX16
OX10
OX09
OX08
OME4
ORGANIZATIONAL UNITS
OX18
OX01
OX17
OMKI
Master Creation
OMS2
MMNR
MMNR
OMSR
OMSF
MM01
Note: For any create transaction we use 1, for MM60 Bulk View
edit 2, for display 3 as suffix. On SAP MM17 Bulk change
Vendor master
OBD3
OMSG
XKN1
OBAS
ME11
Source Determination/List
Source list include list of possible sources of
supply for a material over a given framework of
time.Source list specifies the time period of
ordering of a particular material from a given
vendor. Source list can be copied from one plant
to another plant.Source list can be created by
following two ways: Automatically & Manually
MM02
ME01
Purchase Requisition
Purchase requisition can be created for the
following procurement types:
Standard: Getting finished material from
vendor.
Subcontracting: Providing raw material to
vendor and getting finished material.
Consignment: Procuring material that is kept in
company’s premises and paying to vendor for
that one consuming/direct sale to customer.
Stock transfer: Getting material from within the
organization.
External service: Getting services like
maintenance from third party vendor.
OMH7
OLME
OLME
OLME
CT04
CL01/CL02
OLME
OLME
OLME
OLME
OLME
ME41
Outline Agreements
ME31L
ME38
a. Schema Groups: Vendor
b. Schema Groups for Purchasing Organizations
c. Assignment of Schema Group to Purchasing
Organization
MEK1
Special Procurement
• Consignment
• Subcontracting
• Returnable Transport Packaging
• Pipeline Handling
• Stock Transfer Order
4032700295 999009635
Goods Receipt
Warehouse Consignment Stock
Stock Transfer to Store consignment
Stock=>Sales from Consignment Stock
(Payment)
Transfer posting to own stock (Payment) –
MB1B if some process to be done in-
house=>Transfer to Store for Sales
999009632
Subcontracting
800001234-Main Material
800001236-Child One
800001237-Child Two
4500000061-PO
2099-Goods Recevice of Chile Material
2101- MIGO-Goods Receive
ME21N
ME2O/MIGO
MIGO
Inventory Management
1. Goods Receipt
2. Goods Issue
3. Transfer Posting
MIGO
101 – Goods receive through Purchase Order
102 – Reversal of GR
4032700339
Movement Types
Note: Anything Cancellation will be +1 in most
cases (e.g. for 101 cancellation is 101
+ 1 = 102)
1. Create Physical Inventory – MI01
Monitor Stock Overview - MMBE
2. Enter count for Physical Inventory – MI04 List
of the Physical Inventory difference – MI20
3. Post Physical Inventory – MI07
999960362
2. Continuous Inventory
All materials are counted at some point in the
year, but that can be at any day appointed for.
So we can count some material in February,
others in April and so on. A single material can
be counted on a single date. This type of
inventory is mainly utilized in warehouse
management based warehouses, but it can be
done in inventory management too.
Note: In Continuous inventory we can
inventory Unrestricted, Quality Inspection &
block stock types.
1.Invoice
2.Subsequent Debit
3.Credit Memo
4.Subsequent Credit
PATH
SPRO--SAP Reference IMG--
Enterprise Structure--Defination--Financial Accounting--
Edit,Copy,Delete, check Company Code
SAP landscape: Development –> Quality –> Production
Development system has two clients. 100 – Golden client and 110
Quality system has two clients. 200 – Test client and 210 – User
testing.
Production system-300 Production system has one client where we
book business transaction of day-to-day activities
IMG => Logistic General => Material Master => Basic Settings =>
Material Types => Define Number Range for Each material Type
IMG => Logistic General => Material Master => Basic Settings =>
Material Types => Define Number Range for Each material Type
IMG => Logistic General => Material Master => Field Selection =>
Assign Fields to Field Selection Groups
SAP Menu => Logistics => Material Management => Purchasing =>
Master Data => Vendor => Central => Create
Note: We cannot do both Release (Item & Header level) in one PR,
Only one is possible item or Overall release (Header).
PO is having Only Header level relase
Value Contract
The overall value is specified in terms of the total amount to be
paid for that material to the vendor.
SPRO=> SAP Reference IMG=> Material Management= >
Purchasing=> Conditions=> Define Price Determination Process
3. Cycle Counting
This type of inventory allows us to set a period for regular intervals
for physical inventory on the material level. So a fast moving and
high value material can be counted four times a year while slow
moving and low value material can be counted once a year. The
indicator for this is set in material master in the Plant/Storage
Location 1 View.
The Cycle counting only supports unrestricted stock type.
4. Inventory Sampling
Only a number of randomly selected materials are counted on the
balance sheet key date, and if those materials show small enough
differences, the other materials can also be considered to have a
correct stock level. Not really used that often, as it is essentially an
approximation, but in some cases it can be used if material and
warehouse structure imply that. High rate value items are normally
considered.
F-53
Payment Done
000000005430000023-Desktop
000000005430000024-Ram- Sub Part
000000005430000025-HDD Sub
Part 2
000000005430000028--Mother
Board
PO-4032700258"
PR-Header/Item Level
• Characteristics
• Class
• Release Group
• Release Code
• Release Indicator
• Release Strategy
Tcode-SE11
Master Table--CEBAN
BSART ZNB_PRDoc
EKGRP ZNB_PUGRP
WERKS ZNB_PLANT
GSWRT ZNB_HAMOUNT
ZNB_CLASS
ZN
• Characteristics
• Class
• Release Group
• Release Code
• Release Indicator
• Release Strategy
Master Table--CEBAN
Tcode-SE11
BSART--Doc Type
WERKS-Palnt
EKGRP-Purchase Group
GSWRT-Item Value
ZZNB_CLASS
LK
C1-Manager
C2-Genereal Manager
C3-Procurement Head
C4-CFO
C5-CEO
0 to 100000 C1 & C2
100001 to 500000 C1&C2&C3&C4
1000/ZZNB/001/1001/0 to 100000
Approval
1000/ZZNB/001/ 0 to 100000 Sandeep
1000/ZZNB/001/ 100001 to 500000 Pramod
1000/ZZNB/001/500001 to1000000 Ranjeet
1000/ZZNB/001/ 1000001 to 99999999 PK
Manager
V.P
Procurement Head
CFO
Tax Code 1 Tax Code 2 Tax Code 3
Condition Type 1
Condition Type 2
TAXSUN BAST
BSCG
ZCST
2501TX BASB
G151
G152
Accounting Key G/L
INTTAX
@SG 1003
@CS 1004
G51
G52