SAP MM CONFIGURATION G.V.SHIVAKKUMAR SAP_MM CONFIGURATION G.VSHIVAKKUMAR & G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.inSAP MM CONFIGURATION G.V.SHIVAKKUMAR SAP MM CONFIGURATION Based on the mail request from the different Consultants.. | have covered important and not vering entire MM details (MRP, outlin agreements..etc), But sure it will be more useful. Thanks for the continuous Support from every one. 1 Definition of MM Organizational Elements 1.1 Plants The plant is an operating area or branch within a company. The plant is embedded in the organizational structure as follows + The plant is assigned to a single company code. A company code can have several plants. + Several storage locations in which material stocks are managed can belong to a plant. + Asingle business area is assigned to a plant and to a division. + Aplant can be assigned to several combinations of sales organization and distribution channel. + Aplant can have several shipping points. A shipping point can be assigned to several plants. + Aplant can be defined as a maintenance planning plant. A plant has the following attributes + Aplant has an address. + Aplant has a language. * Aplant belongs to a country. + Aplant has its own material master data. You can maintain data at plant level for the following views on a material master record in particular: MRP, Purchasing, Storage, Work scheduling, 3.V.SHIVAKKUMAR venkatesansivakumar@yahoo,co.in 2SAP MM CONFIGURATION G.V.SHIVAKKUMAR Production resources/tools, Forecasting, Quality management, Sales, Costing. The plant plays an important role in the following areas: + material valuation if the valuation level is the plant, the material stocks are valuated at plant level. If the valuation level is the plant, you can define the material prices for each plant. Each plant can have its own account determination + inventory management The material stocks are managed within a plant. » MRP Material requirements are planned for each plant. Each plant has its own MRP data. Analyses for materials planning can be made across plants. + production * costing In costing, valuation prices are defined only within a plant. Prerequisites The Company code 1000 has already been created Procedure Transaction SPRO Code IMG Menu Enterprise Structure > Definition > Logistics General > Define, Copy, Delete, Check plant — Define Plant G.V.SHIVAKKUMAR yenkatesansivakumar@vahoo.co.in 3SAP MM CONFIGURATION G.V.SHIVAKKUMAR Change View "Plants" Boe @ New Entries | 306 MEINE enna Bonded warehous 408) 1508 Banded warehouse Bonded Wirt Maintain the below shown addresses for corresponding Plants. For the Plant code 1000 (XXXX Head Office), maintain the below shown address G.VSHIVAKKUMAR venkatesansivakumardSAP MM CONFIGURATION G.V.SHIVAKKUMAR ‘Change View "Plants": Details 9 (0) A | amon (olelats | 1,2 Plant parameters In this step, you make the general plant settings for Inventory Management. All settings are also contained in the individual steps of the Implementation Guide for Inventory Management. If you want to allow negative stocks in your plant, you have to set the XBKNG indicator in addition to the settings in this step. To maintain this indicator, choose the step Goods Issue/Transfer_ Postings -> Allow Negative Stocks in Customizing Activities If you have created a plant in the enterprise structure using the Copy plant function, you do not need to make any settings. If you have created a plant manually, you have to create a new entry for the plant parameters. Procedure Transaction Code oxo9 IMG Menu Materials Management - Inventory Management and Physical Inventory > Plant G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.inSAP MM CONFIGURATION G.V.SHIVAKKUMAR Parameters Enternise Stucure Crass-Anplication Companents Financial Accounting Treesuy Conoting Invest Management & Enterprise Contaling Real Estat Lagistics - ener Envinment, Heath @ Sate) Sales ena Distbuton Wateria’s Neragerent General Settings fer Walerias Hanagerrent B B _Consurnption-Based Planning B ES auverrerrres eRe ee Purchasing External Senices Nanagement Inventory Management and Physical lwentory 2a ® Brant Parameters) BB © Bete Atributos of eyctom Meccages © By Number Assignment BB @ Fiew selection for Coous Movements intieltieaderSereens Setings for Enjoy Transactions Gands Iesue FTranster Postings Gands Receipt Autoratie Movernents [paral eal eal For the plant 1000, set the following parameters for goods movement, physical inventory, reservations and negative stocks. Negative stock is not allowed for any material type in plant code 1000 G.VSHIVAKKUMARSAP MM CONFIGURATION G.V.SHIVAKKUMAR Change View "General plant settings in Inventory Management yetails rt 7 ee So nee a ean A Miss.pats ace “EON Applicaton est] ‘Summarze miss pats CI ‘Trans fevent Type Ww) ‘aN deacivated = CRIGI slipnumber = 1) ee Boers eat Cee aes eo ‘Atematie Unit Days mvt allowed fo ee ees Qo | Vendor consignmentgds |) ‘Customer Consignment () — 5 anaes sealer, 5 See ee eS For the plant 1100, set the following parameters for goods movement, physical inventory, reservations and negative stocks. Negative stock is not allowed for any material type in plant code 1100 G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 7SAP MM CONFIGURATION G.V.SHIVAKKUMAR Change View "General plant settings in inventory Management”: Details ‘create Stoo automat ‘Bot omeh dafout Wiss.pans sctve ‘Summarize mispars [1] BalWU desctvated C1] ‘Balu syction posing} ‘Ateratwe Unt] BatchinGackground ‘Change document [1] ‘3; Bockinventry Ol ODIFIO3, Date BOM UeD90. ciao nd GRIGIsip uber) BcnNo.aui, ORACASs! O) (ReeneROE Movmestalowes Verdorconsianment yds. (] RTP stocks oO ‘teks ofrat vender) (Customer Consignment] Retunpackatwust Salesorderstock «=O Projet etosk o For the plant 1200, set the following parameters for goods movement, physical inventory, reservations and negative stocks. Negative stock is not allowed for any material type in plant code 1200 G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.inSAP MM CONFIGURATION G.V.SHIVAKKUMAR Change View "General plant settings In Inventory Management”: Details Pant a Crea Sloe oma emoPocose Del compl tefaat Bomusage Wiss parsacre 20m Apptcaon acs] ‘Summarize mise.pars [) Trane fevort Typo, wi) Banu deachated ‘RII rumber —] Bare smenron pests Benno aun oR acasst] (cima se | een” ‘stock type hy) a ‘wroane unt Sachin adaround change sooument ern, ‘Vendorcensionmentads Customer Consignrrert 1) RIP stocts, o Retunpeckateust —() ‘Sicks fat w vendor Sates cuerstck = Project stock a For the plant 1300, set the following parameters for goods movement, physical inventory, reservations and negative stocks. Negative stock is not allowed for any material type in plant code 1300 G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.inSAP MM CONFIGURATION G.V.SHIVAKKUMAR Change View "General plant settings in Inventory Management”: Details Del. compl defaut Mice partoacive =O) Summa miss pats C) Bai) deathated Baw eynehrn poring C1 Benn. aut GR Aedost aaa ovement Awd “Days atiowea 19 ] BatohinBeckground Retention period 38 Chorgedocunent ] i enor corsignment ods. C) Customer Consignment 2) RIP etoke o Retunpaccoteust. Stk ofmat ye vendor Salesoder sock Project stock O For the plant 1400, set the following parameters for goods movement, physical inventory, reservations and negative stocks. Negative stock is not allowed for any material type in plant code 1400 G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 10SAP MM CONFIGURATION G.V.SHIVAKKUMAR Change View "General plant settings in Inventory Management”: Details Create Stee. automat a Del compl deraut = 1 Wiss.patsacwe =O vaesr Sunmarze mies pars) TranskventTpe |W ‘BaWU deactivated =) GRICIstipnumber =) -BaWU synchron.postng [] BctNo.auty.GR AcAsst [] Alteratve Unit athinetgoind Change document — (] a ote [ Yendorconsigmentaas: customer Corsinment(] IP stocks o Rewimpackateust. Stes ofmat vendor) Salesorderstck Proectstock a For the plant 1500, set the following parameters for goods movement, physical inventory, reservations and negative stocks. Negative stock is not allowed for any material type in plant code 1500 G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in uSAP MM CONFIGURATION G.V.SHIVAKKUMAR Change View "General plant settings in Inventory Management": Details Create SLoc. automat. [7 BBDIProd Date Del. compl defauit =) BOM Usage. fy Nice parsache 30M Popteaton est) summare miss pats C] Trans rent ye wy) BaMU deartvates ORIGIstip umber] Ba syctvon posing) BehNo auto OR acasst C] Seckiee fh) Aematye Unit uu fateh nBecground ©) Change document = 1) AS) Book inventory ssoniaitwence [| MorereniAlowed 2 Dare mvt allowed (18 | Retentonpetiod 2 ‘Vendor consignment ads ‘Customer Consignment FTP etecke oO Rouumpacksteuet Stcks ofmat w.vencor C] Bales order stock) Project stock o 2 Creation of Material Type The following new material types have been created for XXXXX based on the requirement. G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 12SAP MM CONFIGURATION G.V.SHIVAKKUMAR Procedure Transaction Code — OX09 IMG Menu Logistics General — Material Master > Basic Settings — Material types — Define Attributes of Material Types Miyp|Mstenal ype description CAP (Ceptial Goods GUS (Customer Input Non Valuec i] I “FENG Engineering spares 2F61 MMM Finished goods ~iF62 = Finished — here 7 le] =] ZFGT FG Toll manufactured ZPCK Packing materials {2PIP Pipeline materials 2ROH Rew materials 25F 1 I Seri Finisneu goous 26° 2K Semi Finished goods 26F 6 TRA [OKs Trades gonds 2TRD ee | a) Separate Material types have been created for XXXXX, OKS and CTI, as the number ranges of material type are different for the different brands. The material type “ZCUS" is created for the Input materials of Toll manufacturing which will not have accounting and costing information. The material type “ZFGT” is created for the Finished goods of Toll Manufacturing process. G.VSHIVAKKUMAR venkatesansivakumar@yahoo,SAP MM CONFIGURATION G.V.SHIVAKKUMAR 3 Attributes of Material Types Whenever you create a material master record, you must assign it to a material type. This requires you to first define the attributes of each material type. You do this in this IMG activity. Material types are used in the following neighboring areas, where they are also configured in Customizing: + Profit Center Accounting + Product Cost Planning + Sales and Distribution ( availability check) + Valuation and Account Assignment ( valuat n_classes) + Production: co Bills of material c Routings Maintain the attributes for the material types created for XXXXX as follows Once you have maintained the material types, define the number ranges for each material type G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 4SAP MM CONFIGURATION Field reference OH X plantmat! status | SRef material ye oH iter category group Authorization group Cwith ory structure [extemal no. assignmentwto check Citnitiat status (DMaterialt process: [Pipeline mandstory (manufacturer part Ext Purchase oruers: Int purchase orders: Class ype Class Price contro) Acct cat. reference (Price ctrl mandatory ‘Quant undatina Value undating @ In alivaluction areas (O inalivaluation areas (Othino valuation are @ Inno valuation area © Byvaluation srea (By valuation area Rotell-epestfie fold Nalerial eID General material oe “Tirne til deleted ([Gisplay material (Print price G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 15SAP MM CONFIGURATION ZENG | Enginearing spares Field reference ROH plant mall status ‘Ref: material ioe Row Item cateaory croup, ‘Authorization group win aty structure edemaine. assignmentwio sheck inital status LIMatetial is configurable (iMaterialt. process (Pipeline mandatory (CManufasturer part Bd. Purchase Orders Int purchase orcers Classifizat Class tpe Glass rice contol Accteal reforonce 003 ‘quanti updating @ In alivelustion ress (Om ne valuation ares OByvaluation area Retall-specifi elds ateral ype iD Time til deleted (Display material General material a V Mowing average pricefperiodic unit prica lassification tion resourcesitoots ae crecasiing wally management farehouse management [EMS JENIES) LiPrice ctrl mandatory Value updating @ inal valuation areas ‘Onno valuation area (© Byvaluation stea e a (JPrint price G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 16SAP MM CONFIGURATION KG Firished ycods Field reference: FERT SRef:metenal ype ROH Authorization group 1xternal no, assignmantwio check CTMateral is configurable CMateriatt process CiPipetine manaatory (Ci wanufacturer part Ext Purchase Ordare Int. purchase orders Price contro: Acct cat. reference e003 ‘Quantity updating @ In allvaluation arsas Olpne valuation area © Byvalustion area s Slandara price pian mat status tem category g10u0 oR ‘with Qty Structure (initial Status (Price ctrl mandetory Value updating © in all valuation areas ‘On no valuation area OByvaluation area ‘Fote-epottensise a atrial ype 1 Time til deleted ( [Display material G.VSHIVAKKUMAR General material ype (Print price venkatesansivakumar@yahoo,co.in 7SAP MM CONFIGURATION Field reference ‘SRef, material yoe Authorization group Limaterialt process CIP ipatine mandatory [Cimanufacturer part Intemaliexernal put Ed. Purchase Onlers Int. purchase orders: Class pe Class Prive contol FERT Xenlant mat status OW item category group Norm Avy ery structure _JInital Status 8 Standerd price ‘Acctcal reference 9509 [Price ctr mandatary Guantibivelue updating ‘Ouienty undlating Value updating @n al valuation areas (Ol no valuation aree @ in al valuation areas: Olt ne valuation area: © By valuation area (OByvaluation stew Naterel pei General material ie 2 Titne til deleted (J Bisplay material (CIPrint price G.VSHIVAKKUMAR venkatesansivakumar@vahoo.co.in 18SAP MM CONFIGURATION verbs Field reference FERT Ret: material ype Roa Authorzation group (JExtemal no. assignment wio check (inateria is configurable (Cinaterialt oracess: [Pipeline mandatory (iManutacturerpadt Ext Purchase Orders Int purchase orders, “Glass ype Naluation, Price canto! § Standard price “Avot cat reference ooo upc ‘Quentiy undatina @ In allvalustion arose itn no valuation ares (Opyvaluation area Xplant mat! status Item eatewory group Nort With Qty Structure Oinial stetus (Price ctrl mandatary Value undating In allyalustion areas (CO lnno valuation ares (OByvatuation area Material ype iM General material be a Tire til daleted Cbisplay material Clerint price G.VSHIVAKKUMAR venkatesansivakumar@vahoo.co.in 19SAP MM CONFIGURATION 2FST FG Toll marufectured General data Field reference. aH Xnlantmatl status, Ret material ype oH lem category group Authorization group viith Oty Structure (1 Biternal no. assignment wio check Cimitial status (ClNatetial is eontigurabls (Naterialt process (iPipetine mandatory (CiManutacturerpat lise wre VeNie eT BOG ‘Ed. Purchase Orders: “Int. purchase orders Class ype Class Price contol ‘Acct cat reference (Price et mandatory ‘Quentiy undatina Value undating @ Ina valuction areas @ inal valuction areas Oth no valuation area (Olina valuation area © Byvaluation srea CO Byvaluation atea ————————————————— Nalerial eID General material ipe a “Tirne til deleted ([Gisplay material (Print price G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 20SAP MM CONFIGURATION Cimateral is configurable Materia process (Ci Pipetine manaztory Cimanufacturer part Ent Purchass Orders int purchase orders: Price contra! “General data Field reference VERP Deplant mat! status ‘SRef material ype oH tiem category gous ERP Authorzation group with oy structure LlExtemal na, assignmentwio check Cinitiat Statue Moving average pricefperiodic unit price Acct cat reference oped (Price ctr mandatory Suantinvalue updating ‘Quentiy uodatira Valve updating In alvalustion areas On no valuation area @ In al valuation areas: (Olln no valuation aroa © Byvaluation area CO Byvaluation area mele Material te ID General material tye ‘Time til deleted (isptay material (Prin: ee G.VSHIVAKKUMAR venkatesansivakumar@yahoo.co.in 2SAP MM CONFIGURATION eeu General Field reference ROH plant mat! status ‘Ref. material toe ROH Item category croun ‘Authorization group wth Gly Structure (1 Bitemai no. assignment wio check: (Cilnival status: vecial mateial Yes “User departmen [Material is configurable (CiMaterialt. process. [4] (Pipeline mandatory I) (Manufacturer part reduction resoureositoals irternalevtamal purshase orders, ‘Ext. Purchase Oideis: ie = Int. purchase orders a ae fe rage fs) ‘lass ype Class ‘Valuation rice contro! V Moving average oricefperiaule unt rice a ‘Accteat reference 031 (CiPrive et mandatory tale undating / ‘uantity undating Value updating @ In alivalustion areas ® Inalivaluation areas: © tn novalustion area Onno valuation area O By valuation rea O.Byvaluation ares Natertal yaeiD- General material type “Tirne til deleted ([Gisplay material (Print price G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 22SAP MM CONFIGURATION Field reference HALE Ret: matarial ype: ROH utoration group (1Biternal na. assignment wio check (Nate is eormgurable ([Naterial f. process CFipetine mandatory (Nanufacturer part "Da Purchase Orders Int. purchase orders Class ype Price contol 8 Stancard price Xnlantrnatl status: tom estogory gioup ivan ey structure Citnitial Status Acct cat reference 008 (Price ott mandatary “Guattityvaive updating ‘Quantity updating Value upsatng @ nalivauaton areas Olnnovaluation area (O.Byvalustion area © in allvaluation areas Olin no valuation area O By valuation area Naterial type General material yne Time tildeleted (Display material _|Print price G.VSHIVAKKUMAR venkatesansivakumar@vahoo.co.inSAP MM CONFIGURATION Fild roforonco: HaLe plant matl status -SRe: material ype oH tiem estegory grou “Authorzation group sternal no assignmentwio check initial status ["]Material is configurable Cimaterials process (ClPipetine mandatary (Cimarutecturer pert Int purchase orders me Class type Price conto! 8 Standard pice ‘Acct cat. reference agg8 (Price cit mandatory _Guariitalue updating 7 ‘Guentty undating Value undating @ In alvalustion aracs @ In all velustion arose (Onno valuation ares (On na valuation area (© Byvaluation area (OByvatuation area Retall-spec a 7 Material nein Geraral material ine Time tl dete (Display material (CoPrint price G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 24SAP MM CONFIGURATION G.V.SHIVAKKUMAR G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 25SAP MM CONFIGURATION OKS Trades goods ‘General data Field reterence Hae 2eplantmall staus “Ref. material type ROH tiem category group NORM _Authorizaton group Ciwith ey Structure (external no. assignment wio check Cinttiat status [inaterial is configurable (UiNaterial f. process (CiPipetine mandatory (iwanufecturer part “Tnlema¥edemnal purchase orders ‘Bd. Purchase Orders Int, purchase orders Prive contol Moving avetage pricefperiodic unit price Acct cat. reference 0008 [Price cit mandatory uentiy uadating Value updating in all valuation areas @ In al valuation areas: Oth no valuation aro On no valuation area (© Byraluation area CO Byraluation area Retail-specific fields, y Material toe ID General material oe a “Time til deleted iisplay material G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 26ZCAP. SAP MM CONFIGURATION G.V.SHIVAKKUMAR Gantivwvalue undating 7 ‘Quantity undating Value updating @ In allvslustion areas @ In allvalustion areas (lm na valuation erea (Onna valuation eres CO byvaluation area by valuation area Fetail-specifi fields Material ype ID General material hpe a Time til deleted (Display material Print price The below table shows the different views maintained for the different material types created. >| >| ZCUS ZENG ZFG1 ><|><]>< ZFG2 ZFGS x|>|>< x|>|>< ZFGT x|>|><[>! |>|><[ >| ZPCK ZROH ZSFL ZSF2 ZSFG ZTRL >|>x]>< >| ><] ><]><[><]>]><]><] ><) ZTRD >|><]|><| ><] ><]><]><|><] ><] ><] ><]><]><) ><} >|><]><] ><]><|><]><]><]><]>| >| ><]><] ><]>< >|><]><] ><]><|><]><]><]><]>| >|><]><] ><]><]><]>| ><]><| ><]><]><]><]><]><]><]><)>«! >|><]><] ><] >|><]><] ><]><]><|><]><] ><] >< >| >| ><]><] ><] ><]><]><]><]><] ><] ><] ><]>«] >|><]><| ><|><]><|><]><]><] ><] ><)>«! 3.1 Numbering of Material Masters based on Material Type Before maintaining the Number ranges for different material types, the material numbering format has to be determined. Most of the material G.VSHIVAKKUMAR venkatesansivakumard £0 27SAP MM CONFIGURATION G.V.SHIVAKKUMAR types are externally number managed, for the reason that the numbering in SAP has to be the same as their Global entities to provide Uniformity across different ERPs being used across different countries of the company. Those external number managed materials have some leading zeroes in the material coding. To accommodate the leading actual zeroes for material codes, “LEXICOGRAPHICAL" indicator needs to be ticked in material master numbering format. Transaction Code OMSL IMG Menu Logistics General > Material Master + Basic Settings > Define output format of Material Numbers Change View “Material Number Format”: Details eiag a BlLexcourapnical i teaaing zeros 3.2 Number Ranges for Material Types Transaction SPRO Code IMG Menu Logistics General + Material Master > Basic Settings + Material types > Define number ranges for Material types G.VSHIVAKKUMAR venkatesansivakumar@yahoo, 28SAP MM CONFIGURATION fC SSO GHB ae Material Master Number Ranges (LF Groups| & Groups, Maintain the number ranges for material type grouping. Group the material types with similar number ranges and then assign the number ranges for that particular group. CHEE rates, sro ond Fe ZBI OK Finished goods 255 INN Fished goods 2571 KS - Semi Finished goods Z2TR1 OKS Traded goods 2180 MMMM Traded goods For the above grouping maintain the number range as follows. Ton [Curent nurnier ‘“Jososaexecataasa0a aeaacaqagea9sa9999 The next grouping of material type is: CoRaw materiais ZROH Raw matericle 25°6 MEM seni Finished good and the corresponding number ranges are numer Tenor [Burentnamber EB jasessd0aea898e8000 goneEd0I0001223000 For the grouping G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 29SAP MM CONFIGURATION G.V.SHIVAKKUMAR Cert rroduets 252 CTE Finished gaocs 25F2 CTE - Semi Finished goods Maintain the following number range fromnurnb ‘ronumnbier er feat AAMARAKABAR 2222222222202 702 ul Also maintain the following number ranges for the mentioned material types 00000000000200 | 00000000000299 ZPCK | 0000 9999 00000000000300 | 00000000000399 zcus | 0000 9999 (0000000000400 | 00000000000499 ZFGT | 0000 9999 4 Define Material Groups In this IMG activity, you define material groups. With material groups you group materials with the same attributes or purpose G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 30SAP MM CONFIGURATION G.V.SHIVAKKUMAR You can use material groups to: + Limit the scope of analyses + Systematically search for material master records via matchcodes Transaction Code = OMSL IMG Menu Logistics General > Material Master > Settings for Key Fields — Define Material Groups Mati Grau [Material Group Dest at consumables a2 ativos loa Solvents jaa Packaging jatves Solvents psaait@ [soap greases P590720 (Complex soap greases __(P090520 water miscible P699130 (Other mineral oll gr PG20839 Sep. ag. f. metal di PG30756 —Perfuoro alky! ethe P630540 (Sep. ay f. gravity 630160 Silicone greases 690550 [Corrosion orciecion PGI0170 Ester greases Sep. aa f. welding 698180 Polyalphaclefin grea PG20619 [Sprays 630190 _[cther Sym Oil ease Fpep8028 Powers P638218 — wineral olls Peae630 Pastes 630230 Polyglycol als 690640 [Cleaning axenis, dis | |psae245 Perfluaroalkylether pee rrietes: P3825 [Silicone oils PS0OBSD _|Coaiings P630269 Ector oils Ea P630270 —_|Polyalphaclefin oils P690918 eas P638280 — |Cther synthetic ols psa0928 [Capital goods e0gse —Senices 600800 Enyineering spares | [P638518 not water miscible Peseese \cthers G.VSHIVAKKUMARSAP MM CONFIGURATION G.V.SHIVAKKUMAR 5 Define Divisions In this IMG activity, you define the ns in your company. You use divisions to group together materials, products, or services. The system uses the division to determine the sales areas and business areas to which a material, product, or service is assigned, In the application component Sales and Distribution (SD), the division is an organizational entity responsible for selling particular products or for the profit made on them Ac ns To define a division, enter the following information: + two-character, alphanumeric key Transaction Code = OMSL IMG Menu Logistics General + Material Master > Settings for Key Fields -» Define Divisions G.VSHIVAKKUMAR venkatesansivakumar@yvahoo.c 3SAP MM CONFIGURATION G.V.SHIVAKKUMAR Dyson ane 1 peatinas Ee Power vanorascion 3 __Vaves & Pheumatcs {4 Machine Tool EWS) 65 ecrovies Fit 85 etal working 7 [Conveyors & WHE (88 __Astomotve OEM a Ral.yvatcreareran T__futomatve Suopier frac &enarma 7 See wil @__ ining SavoriteGince Pe corenttine & [chem FerarefnPias (Power awina 7 fraver a rintina 8 broos musty SPE cs chemtrena 7 _ Teste instr cs oc FE Soricoeniontica - 21 Distibutors He pezzompaniee: 2 __lomorters ___(Canive Consumption 23 Representativ abroad i Miscellaneous 6 Maintaining Storage Locations for Plant 6.1 Maintain storage location A storage location is the place where stock is physically kept within a plant. A storage location has the following attributes + There may be one or more storage locations within a plant. + Astorage location has a description and at least one address. + It is possible to store material data specific to a storage location. G.VSHIVAKKUMARSAP MM CONFIGURATION G.V.SHIVAKKUMAR + Stocks are managed only on a quantity basis and not on a value basis at storage location level. + Physical inventories are carried out at storage location level. + Asstorage location can be assigned to a warehouse number in the Warehouse Management System, You can assign more than one storage location to the same warehouse number within a plant. + Storage locations are always created for a plant. Prerequisites The Plants have been already created. Procedure Transaction Code = OX09 IMG Menu Enterprise Structure — Definition > Materials Management > Maintain Storage Location G.VSHIVAKKUMAR venkatesansivakumar@yvahoo.c 34SAP MM CONFIGURATION G.V.SHIVAKKUMAR 1. Maintain the below shown Storage locations for the Plants 1100 [Stoo|Descrition ot 1 LOVI Warchouse 2. Maintain the below shown Storage locations for all Plants from 1200 Desenpton raded (OKS Traded oocds) 3. Maintain the below shown Storage locations for Plant 1300 ~ Chennai Bonded warehouse |SLoe| Decoration irroceivad mat {TBI in Traneit SLoc Al [saa Received mat 4 Maintain the below shown Storage locations for Plant 1400 - Mysore Bonded warehouse {Stoc|Description 1781 Jn Transit Loc INWAT Mysore Bonded We 5. Maintain the below shown Storage locations for Plant 1500 - Bangalore Bonded warehouse (Histeeibestrotion TBwat ore Borat (Ain TransitsLoc G.VSHIVAKKUMARSAP MM CONFIGURATION G.V.SHIVAKKUMAR 7 Maintaining Purchase Organizations 7.1 Maintain purchasing organization In this step, you set up your purchasing organizations. From the Materials Management and Purchasing view, the purchasing organization is responsible for all purchasing activities (including the processing of requests for quotations and purchase orders, for example). The purchasing organization is integrated within the organizational structure as follows: + A purchasing organization can be assigned to several company codes. (= Corporate-group-wide purchasing) + Apurchasing organization can be assigned to one company code Company-specific purchasing). + Apurchasing organization can also exist without being assigned to a company code. © Since each plant must be assigned to a company code, the latter can be determined via the plant at the time of each procurement transaction even if the procuring purchasing organization has not been assigned to a company code. + Apurchasing organization must be assigned to one or more plants. Plant-specific purchasing) + Apurchasing organization can be linked to one or more other purchasing organizations G.VSHIVAKKUMAR venkatesansivakumar@yvahoo.cSAP MM CONFIGURATION G.V.SHIVAKKUMAR (= reference purchasing organization) For more on this topic, refer to Assign Purchasing Organization to Reference Purchasing Organization A purchasing organization can be divided into several purchasing groups that are responsible for different operational areas condit Each purchasing organization has its own info records and ions for pricing Each purchasing organization has its own vendor master data. Authorizations for processing purchasing transactions can be assigned to each purchasing organization. + Allitems of an external purchasing document, that is, request for quotation, purchase order, contract, or scheduling agreement, belong to a purchasing organization. The purchasing organization is the highest level of aggregation (after the organizational unit "client") for purchasing statistics. The purchasing organization serves as the selection criterion for lists of all purchasing documents. Transaction Code IMG Menu SPRO Enterprise Structure — Definition » Materials Management — Maintain Purchase Organization Create the following new entries in Purchasing Organization Purch, Organization |Purch. Ora Deser. 11098 [Central Porg (OKS Central PO Mc: Por0 (OKE local PO 8 Assignment of MM Organizational Elements G.VSHIVAKKUMAR venkatesansivakumar@yvahoo.cSAP MM CONFIGURATION G.V.SHIVAKKUMAR 8.1 Assign plant to company code In the IMG activity "Assignment Plant - Company Code" you assign each plant to a company code. A plant can only belong to one company code. Note Complete functionality of the system can only be ensured if the plants assigned to a company code are only those situated in the same country as the company code. It is therefore recommended that you also create a company code for each country in which a plant is situated. Requirements Before you can assign plants to company codes, you must define the valuation control Prerequisites The Company code 1000 and the plants are created Transaction ox18 Code IMG Menu Enterprise Structure — Assignment > Logistics General > Assign plant to company code Link all Plants under Indian Company code 1000 Assignment Plant - Company Cade [Jeace (Pint [Name ofFlant [Gompary Name Btstus |_fiseo a ee HE ris Pet ta [foo 1700 ME Factory trie Pot Ld | faae js0e chennai Bonded warehous — MNMMrcis Pat ts Hae (400 sore Bonded warehouse Inde Pet Lid Hae (600 Bangalore Bonded WH Indie Pat Ltd G.VSHIVAKKUMAR venkatesansivakumar@yvahoo.c in 38SAP MM CONFIGURATION G.V.SHIVAKKUMAR 8.2 Assign purchasing organization to plant In this IMG activity, you assign purchasing organizations to the plants for which they are responsible. You have the following options: + One purchasing organization procures for one plant. This is plant-specific purchasing. + One purchasing organization procures for several plants. + Several purchasing organizations procure for one plant. Transaction Ox17 Code IMG Menu Enterprise Structure + Assignment + Materials Management > Assign Purchasing Organization to Plant Create the following entries and link the different plants to different purchase organisations. G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 39SAP MM CONFIGURATION G.V.SHIVAKKUMAR ‘Assian Puréhasing Organization to Plant Head Omce Factory [OKs Central Fors (OKE Central POra KS Central POra [OK Cantral Pora | __(OKS Central Fora Central POra Chennai Bonded warahovs yore Bonded warehouse ‘angalore Bonded WH Head ofce Factory Depot chonial Bondo warahave socio ane xsiocal Por Msc canta ee oxSlocalPOrg WEI SncsoreBonaesnt 9 Creating Purchase Groups A key for a buyer or group of buyers responsible for certain purchasing activities. The purchasing group is: + Internally responsible for the procurement of a material or a class of materials Transaction SPRO Code IMG Menu Materials Management > Purchasing > Create purchasing groups G.VSHIVAKKUMAR 40SAP MM CONFIGURATION G.V.SHIVAKKUMAR Create the Following Purchasing groups Purchasing Gouns Dose, Pur. Gre import Rit Local Ri ‘Local Packing (Capltal Purchase Services (Cansumaties Engineering spares import Traced good ‘Siock Transfer Different Purchasing groups are created for the different kind of materials / services procured thru different means. This classification of purchasing groups helps in differentiating the Release strategy for different material types / services. 10 MM PI 10.1 Defining the Condition types 9 Procedure The condition types are used to represent pricing elements such as prices, discounts, surcharges, taxes, or delivery costs in the SAP System. These are stored in the system in condition records. Transaction M/o6 Code IMG Menu Materials Management > Purchasing > Conditions > Define Price Determination G.VSHIVAKKUMAR venkatesansivakumar@yahoo, 4SAP MM CONFIGURATION G.V.SHIVAKKUMAR Process > Define Condition Types The following are the new condition types to be created for Local Pricing procedure. Packing ZPAK &Forwarding ZSET State Entry Tax Freight -Primary ZFR3 Vendor ZFR2 Pick up Freight-qty ZFR4 Inward Freight-qty ZFR5 Local Freight-qty The following new condition types are to be created for Import Pricing procedure. ZPAC Packing charges ZINS Insurance Ocean/Air Freight ZFFW &FW ZPIC [Picking Charges ZASS Assessable value ECess on CVD- JEC2 Depot Sec ECess on CVD- jucv [Fac Sec ECess on CVD- J2cv Dep JECD Cess on Total Duty High Ed cess- tot JETD | duty ‘Add Custom duty- JADC Fact ‘Add Custom duty- JSA2 Depot ZINB [In bonding charges Warehousing ZWHC charges ZCFW Out Clearing G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 42SAP MM CONFIGURATION G.V.SHIVAKKUMAR &Forward Local Freight - ZFRL Secon The following new condition types are to be created for Pricing procedure for Stock Transfer from Bonded Warehouses. J8CD Basic Custom Dut) Edu cess on tot ZECD duty ZETD HECess on Tot duty 10.2Define Account Keys / Transaction Event Keys To enable the system to find the relevant account for provisions (for accrued delivery costs or miscellaneous provisions, for example), you must assign a transaction/event (internal processing) key to each condition type that is relevant to provisions in the step Define Calculation Schema. SPRO IMG Menu Materials Management > Purchasing > Conditions > Define Price Determination Process > Define Transaction/Event keys > Transaction Key Create the following new entries in Accounting keys. (Dacia Tame 5 [OVD clearing | JF6 — (Cleering ana forward |_JFR? _(Cemvat Clearing INS Insurance These new accounting keys are created for assigning to newly created accrual condition types for CVD, Clearing charges and Insurance G.VSHIVAKKUMAR venkatesansivakumar@yvahoo.cSAP MM CONFIGURATION G.V.SHIVAKKUMAR G.VSHIVAKKUMAR venkatesansivakumar@yvahoo.cSAP MM CONFIGURATION G.V.SHIVAKKUMAR 10.3 Defining the Calculation Schemas In this step, you define the calculation schemas. In the MM area, a calculation schema - a framework of steps used to calculate or determine something - is used among other things to calculate costs, prices, period-end rebates, and taxes. In the calculation schema (pricing procedure), you specify which condition types are to be taken into account in which sequence Transaction M/o8 Code IMG Menu Materials Management > Purchasing > Conditions > Define Price Determination Process ~> Define Calculation Schema 10.3.1 Create the calculation schema - ZIMPO1 for Import Pricing procedure Change View "Schemas": Overview P New ewes | is BB Dialog Structure © GBSchemas Cacentral data Schemas [Desert irmportPricing Frocodure INPOT In the control data for the pricing procedure ZIMPO1, create the entries in the following sequence The import pricing procedure will have the condition types for all the duty elements like Customs duty, CVD, Education Cess on CVD, Secondary Education Cess on CVD, Cess on Total duties, Additional Customs duty. Apart from the condition types for duties, the import pricing procedure will have the condition types for Insurance, Clearing and Forwarding G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 45SAP MM CONFIGURATION G.V.SHIVAKKUMAR charges, Warehousing charges to accommodate all kinds of pricing factors that could be involved. Also there is a statistical condition type ZASS - Assessable value included in the pricing procedure. This condition type value is used just for the calculation of Duty values and the same will not be included in the landed cost value of the material. All the secondary delivery charges and the duty condition types will have a provision entering the secondary vendors at condition type level in Purchase Order. All the condition types are arranged in the required sequence as follows. Control data for ZIMPO1 - Import Pricing procedure 300 mH PAC ust Te TS a ivi i EY ney er i) 0 wot sie ots utes lor vaiue Fos utes G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 46SAP MM CONFIGURATION V.SHIVAKKUMAI The accrual keys are given for the accrual condition types. 10.3.2 Create the Calculation schema ~ xxxxxx for Local pricing procedure, Change View “Schemas”: Overview In the control data of xxxxxx local pricing procedure create the following entries in sequence. G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 47eneudng scout & pack | re cline oa ae The condition type JEXC is used for entering the manual excise value, where in the excise duty is not exactly a fixed percentage value, The value entered in JEXC will replace the value of excise duty condition type calculated by the Tax Code. 10.3.3 Create the Calculation Schema ZSTOBF - STO from Bonded Warehouse. G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 48SAP MM CONFIGURATION G.V.SHIVAKKUMAR Change View "Schemas": Overview D New enties Dialog Structure © EWschemas Ccontat data Schemas {STO from Bonded Werehouse The materials received and kept in the bonded warehouse plants are stock transferred to the Factory or Depot plant on payment of duties. Hence the pricing procedure for stock transfer from bonded location to Factory / Depot plant includes the delivery charges and the non creditable duty values which need to be included in the inventory valuation. In Control data, create the following entries in sequence for the ZSTOBF pricing procedure. Ed ono aa uence sep ORIG (Sip cu, [ct Oeserpton o (irice supp Pi Lcd Basie ustorn Out ECD Eu ese on at cue E10 HeCess on Tetley 180 Insonding snes 2H erenousing henge GFW but CloarinaaForard 21 Lovet Geton ute fe ba Tei lsutot roa cary, JeacTy, aso Fc, A 2 8 i a i (a|eioloala| Here the condition type P101 will automatically pick up the material master price of supplying plant in the stock transport order. G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 49SAP. G.V.SHIVAKKUMAR 10.3.4 Calculation Schemas for Stock transfer between factory and Depot Change View "Schemas": Overview ZSTODF - Pricing procedure for stock transferring from Depot to Factory ZSTOFD - Pricing procedure for stock transferring from Factory to Depot In the Control data, create the following entries for ZSTODF In the Control data, create the following entries for ZSTOFD G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 50SAP MM CONFIGURATION G.V.SHIVAKKUMAR 10.4 Defining the Schema Groups In this step, you define schema groups. These allow you to group together purchasing organizations that use the same calculation schema. You can also use them to group together vendors for whom the same calculation schema is valid Not You assign vendors to schema groups in the relevant vendor master records. 10.4.1 Schema Groups : Vendor Transaction SPRO Code IMG Menu Materials Management > Purchasing > Conditions > Define Price Determination Process > Define Schema Group> Schema Groups: Vendor Create the following schema groups for India [Sch.GrpWedr [Desciiption at Localvendors a2 Import Vendors 10.5 Defining Schema Determination In this step, you assign purchasing transactions and processes to a calculation schema; that is, you specify the cases in which a certain schema is used. + For standard purchase orders (depending on the schema group of the vendor and the purchasing organization) G.VSHIVAKKUMAR venkatesansivakumar@yvahoo.cSAP MM CONFIGURATION G.V.SHIVAKKUMAR + For stock transport orders (depending on the supplying plant, the document type and the schema group of the purchasing organization) 10.5.1 Determine Calculation Schema for Standard Purchase Orders Transaction SPRO Code IMG Menu Materials Management > Purchasing > Conditions > Define Price Determination Process > Define Schema Determination > Determine Calculation Schema for Standard Purchase Orders Create two different Schema group for vendor master for Local and Import Pricing Procedure. This schema group will be attached to vendor master, so that the corresponding pricing procedure in the purchase order Proc Descintion ocal Pricing Procedure ZIMPO1 Import Pricing Procedure 10.5.2 Determine Schema for Stock transport orders Create the following entries. G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 52SAP MM CONFIGURATION G.V.SHIVAKKUMAR Schema GipPOrg |Doo. Type __|SupolPint_|Proc, |Description 1 H300 __2STO8F STO tom BoncedWerenou 7 1490 __2STO8F 870 fom Bonced Warehouse 1 1500 _2STO8F TD tom Bunced | 8 Hie0 __2STOFD BtecktansterFacion- Depot 4 1200 ZSTOOF Bite 2pot The stock transport pricing procedure is picked using the document type of stock transport order. 11 Configuration for Purchase Documents 11.1 Purchase Requisitions 11.1.1 Document Types The SAP System manages purchase requisitions as documents. You can group requisitions into any number of document types. In this step, you can do the following Create new document types Define the item interval Define allowed follow-on document types Assign document types to a number range group Define number range interval G.VSHIVAKKUMAR venkatesansivakumar@yvahoo.cSAP MM CONFIGURATION G.V.SHIVAKKUMAR + Choose type of number assignment (internal or external) You maintain the associated number ranges in the step Define. Number Ranges under "Purchasing" Transaction SPRO Code IMG Menu Materials Management > Purchasing > Purchase Requisition > Define Document Types A new document type AP has been created for Assets Purchase requisition. This is done to differentiate the other purchase requisitions while fixing the release strategy for asset purchase requisition. Another document type MB - Manual Purchase Requisition is created for differentiating the Purchase requisitions generated manually from that of MRP generated. \_Jyne nc. Tyre Descriot, tain, |NoRgel, JNoRGe EM |Fields, Cont love, JLeyout jap eseiPurcnaserea flo 04 (03 i) ol ME Manual Purchase Req Qo ps 82, INBB U 11.1.2 Define Number ranges for Purchase Requisitions Transaction SPRO Code IMG Menu Materials Management > Purchasing > Purchase Requisition > Define Number ranges G.VSHIVAKKUMAR venkatesansivakumar@yahoo,SAP MM CONFIGURATION .V. SHIVAKKUMAR Number Ranges for Purchase Requisitions Click on create intervals and maintain the number range intervals as follows Maint Number Range Intervals NR Object Furchase requisition la sot a9eaa08 61 99ag993 10001842 ln2 soga9eaq00 paggeagaas a2. 2000002000 2an9eaa009 ln4 a0o0000000 sasgeasae9 8 las svonpsaa08 saggeggga9 11.2 Purchase Orders 11.2.1 Document Types The SAP System manages purchase orders (POs) as documents. You can group POs together to form any number of document types. In this step, you can do the following: G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 35SAP MM CONFIGURATION G.V.SHIVAKKUMAR « Create new document types + Define item interval + Define allowed follow-on document types + Assign document types to a number range group + Define a number range interval + Choose type of number assignment: © Internal © External Transaction SPRO Code IMG Menu Materials Management > Purchasing > Purchase Order > Define Document Types Maintain the Document types for Purchase Orders as follows [Tywe|Dec Type Descript, _|itmint_[NoRgeint |NoR_[NoR [Updat |FieldSel. [Cont |sitmi fh JAP Asset Purchase Grder 18 46 at SAP NRF [ IFO Framowork Ordor 10 45 a4 sap FOF [ IP impo Purchas Order 1047 41 sap NDF LF LocalPurchase Order 1048 ai sar NaF IRF Release Order 19 58 at SAP NRF IS SewicePO-Capital 1849 at sap NRF IS2 Service PO-Revenus 1849 at sap FOF [21 STO Borded Warehouse 18 55 a4 sap ue lz2 sTOFactoy-Depot 1085 41 sap ur 24 STODepot- Factory 1885 ai sap uaF 11.2.2 Maintain Number ranges for Purchase Order Document Types G.VSHIVAKKUMARSAP MM CONFIGURATION G.V.SHIVAKKUMAR Transaction SPRO Code IMG Menu Materials Management > Purchasing > Purchase Order > Define Number ranges Number Ranges for Purchasing Documents Be Intenvals 2 Status FP ___itewas Click on the maintain interval icon to maintain the number ranges as follows Number Range Intervals NR Object (Purchasing aocument | No, Jeromnumpsr fro number [Current number #1 4190c00900 4199969939 44 44a0ca9a00 44gaaca9a9 45 45qqcaqna0 a5gaqca9a9 asanneqaan a 148. s620c00000 ssqugca929 ss00000005 o a7 4ra0cooa00 sraaaca9a9 4799800882 a 148. sea0ca0a00 sagagcaea9 4en0000219 o 149. sga0ca9a00 sagagcaeag 4eneea000 o fsa saaneaqaan sngaacaaaa 8 a 5. ss20000000 ssougca929 ss00000021 oa is6. soaacooa00 segagca919 a lea soa0000008 6993999939 a i le1 etaacacaea s1gaacaaa9 G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 57SAP MM CONFIGURATION G.V.SHIVAKKUMAR 12 Release Procedure 12.1 For Purchase Requisition The aim of this approval procedure is to check the data on the material, quantities, and delivery dates for correctness and to ensure that the right account assignment and source of supply have been specified. Transaction SPRO Code IMG Menu Materials Management > Purchasing > Purchase Requisition > Release Procedure Create Release Procedure with Classification 12.11 1 Create Characteristics In this step, you create characteristics for a release procedure with classification. Classification characteristics constitute the criteria for a release condition. If the criteria of a release condition are satisfied, the associated release strategy is assigned to the purchase requisition. Example Release condition for release strategy BA: Characteristic value Above $10,000 Characteristic Total value of requisition If the total value of a purchase requisition exceeds $10,000, release strategy BA is assigned to the requisition. Transaction cTo4a Code G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 58SAP MM CONFIGURATION G.V.SHIVAKKUMAR @ 18/66@ GAR S5e5/ Fhe _ Characteristics lal Charactenste FAlslkse| Select on Create icon ‘Change Characteristic Characteristic _(ZPRDDCTYPE Chango Number alia ior 20112057 | TIT Desstion Purchase Requisition Dosument (res set Snascrun Status [Released ay aumeroun Farmar vara AasTaRMe 7 DataTine (DrarcerFomat i) @ Single Value (Ciuttpio vatuee “Mumberarenars 4 Dease sensine Direersenie Template tty Recto Maintain the additional data tab as follows G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 59SAP MM CONFIGURATION eT Create another characteristic as follows Characteristics Characteristic [ZPRVALUE Change Number valle From Click on create icon G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 60SAP MM CONFIGURATION G.V.SHIVAKKUMAR Change Charactet Characteristic [2PRVALIE Change Number | Valia Frame 28.11.2007 mesiedaa Dascriniion Chars Grou ‘Status Released El Auth.Group J ‘lal Value of term Format Value assignment” Data Type Currency Format 2 O8inole-value @ Multiple Values Nuriberoftihars [13] Intewalvals alowed C)Negative vais Allowed ORestriciabie Currency Template CEntry Required Maintain the additional tab for this characteristic as follows G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 61SAP MM CONFIGURATION G.V.SHIVAKKUMAR [Reference b Tabb Field “Tobe Natne ——CEBAT | FieldName osieT | (] ( ay Document B nay Document ype DocumentPat |_| Dor version |_| Not Rea or input [No Dispiay (1 Fropose Template [display Allowed Values 12.1.2 2 Create Class Transaction cLoa Code Create a class as follows Class [epRneLense oa Class te 052] Release Stratony Change Number Click on create icon and maintain the entries as follows G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 62SAP MM CONFIGURATION G.V.SHIVAKKUMAR [Wie] Delete Class: i class ZPRRELEASE a Chass he strategy changenunber vat rt ar] [ay] [Basie data ~ Description [clASe FoR PRRELERSE a status Released a Class aroun a organizational area Lovet elas Valid From 31.08.2007 vvaligio [st 12. $999] @ Do notenock Clase maintenanca: [ S Waning messeu Classifcation © check with ennt Find obec Maintain the following entries under the Characteristics tab Purchase RequisiionDocCHAR| 4 0 | PRVALUE TolalValue oftiem CURR] 13, 2INR | 12.1.3 3. Setup Release Procedure Transaction SPRO Code IMG Menu Materials Management > Purchasing > Purchase Requisition > Release Procedure > Procedure with classifications > Setup Procedure with classification G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 63SAP MM CONFIGURATION G.V.SHIVAKKUMAR In this step, you set up the release procedure with classification. You can also link the release procedure to workflow. (Note that in this context "releasing" means "approving", or giving the "green light" to a document.) Here you specify the following: + Release group + Release codes + Release indicators + Release strategy a. Release Group Define a release group for your release procedure: + Specify for the release group either “overall release" or “item- wise release" using the OverRegRel (overall requisition release) indicator. Note You determine whether a purchase requisition can be released in total or item by item via the document type. If, for example, you have defined the former, that is, the overall release, for document type "NB - purchase requisition", a requisition of the document type "NB" cannot be released on an item-wise basis. For this reason, the release group for overall release, for example, only applies to the document types with overall release. + Assign a class, thus defining release conditions for the release procedure. Note You must assign the same class to all release groups with the same type of release (item-wise or overall). G.VSHIVAKKUMAR venkatesansivakumar@yvahoo.cSAP MM CONFIGURATION G.V.SHIVAKKUMAR Change View "Release Groups: Purchase Requisition": Overview | Hew enires | [na [a [| a [ [pein [Retoay[evRePRen [Glass [bescition (i) so 1 Co) PRRELEASE PRRELEASEl] b. Release Codes Here you create the release codes that you need for your release strategy and assign the codes to your release group Release codes are the people with different levels of authorization to approve different Purchasing documents based on the value, document type etc. Create the following release codes to map the different personals with different levels of authorization. Change View "Release Codes: Purchase Requisition”: Overview [D[lnew ens [3] Ges oma ardiow [pesmnnion si 50 at HEAD Purcrase so 2 HEAD Facog | so x3 one sone Head Finance) so AS ceo so a6 TT eecaive so xr Hood (aie) c. Release Indicators An indicator showing the release (approval) status of a purchasing document. When you release (approve) an internal or external purchasing document using your release code, the system assigns a release indicator to the document. The release indicator determines how the document may be processed. For example, it can denote that a requisition can be converted into a purchase order, or that a subsequent release point must first signify approval Maintain the following release indicators for Purchase Requisition G.VSHIVAKKUMAR venkatesansivakumar@yahoo, 65SAP MM CONFIGURATION G.V.SHIVAKKUMAR Change View "Release Indicator": Overview RFORO FiocRFO eeu RFGiuitase wile! locked d. Release Strategy Create a release strategy for your release group and assign your release codes accordingly. + Release prerequisites With the release prerequisites, you specify the order in which the individual release points (individuals or departments) represented by the release codes may release the document. Change View "Release Strategi : Purchase Reqi G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 66SAP MM CONFIGURATION Change View "Release Strate, Release Group __[50| PR RELEASE OLACE Bone 7] Head (Sales) 8 TExecutve a rl Click on the release status and maintain the following entries R Release Inclestor Description X| Blocked (2 | RFoMurehase oraer 2) RFoMuronase orger 2 RFoMutchase order 2 RFamurchase orver 2) RFcmurchase arver 2 RFcmurchase arver (2 | RFaMpurshase order a8 poo ooe oo ome Boo mom memo ae Click on the Classification and maintain the following entries G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 67SAP MM CONFIGURATION G.V.SHIVAKKUMAR Release uray (SD Rel Statecy (AT Capital PR ClassTwpe 032 Release Stateuy Purchase Requisit P [Total Value of tern = 100000.00 INR. Maintain another release strategy as follows Change View "Release Strategies: Purchase Requisition": Overview DAZ Cagitel PR G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 68SAP MM CONFIGURATION [AKKUM: V. Change View "Release Strategies: Purchase Requisition": Details Roleave Grou _&0] PRRELEASECLASS Release Stategy AB Sapitel PR |__ Release prerequisites | | Release stiuses | |_classitation | | Release simiiaion | For Release Status [= Release Statuses 2 Ae a5 R Release Indicator Description ooo X| Blocked cee 2 RFajurenase orcer omo 2|RFQipurchase order OMe 2|RFQ/purchase order goo (2) RFolpurchase order om 2) RFOMmurchase order Beo 2/ RFQipurchase order wee (2| RFQIpurchase order G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 69SAP MM CONFIGURATION G.V.SHIVAKKUMAR For Classification maintain the below entries -w "Release Strategies: Classification Release group 8D Rel. Strategy 2] Capital PR “Class Tne 32 Release Statewy Purchase Requisition Doo TotalValueoftem > 100000,001NR G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 70SAP MM CONFIGURATION G.V.SHIVAKKUMAR 12.2 Rel Proced: r Purch: r 12.2.1 Create the following characteristics 1. ZPORELEASE 2. ZPONETVALUE 12.2.2 Create the Release Class ZPORELEASE using CL04. ‘change Number 1 alo a] (Class croup, [ _ sa} organizational area Diocai-ctass oe eo Sue ‘oma | Bema cinsienion oe eee ‘OWarning message Classification = Ccheckwith error Bees Cl jimmie TiAssianrionits created by censM | crestecon 28.08.2007! Maintain the below characteristics in the Characteristics tab ciass (eronevense ‘ase 8 [02] RetseeStaeoy change Number | Yat om aa [ PetoocmenT?re —lomernine Furman) craR| «a [oo Doce [7 eraxervaLue Totalnetonervatue CURR 16) NR) | oF} Docc G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in nSAP MM CONFIGURATION G.V.SHIVAKKUMAR 12.2.3 Define Release Procedure for Purchase Orders Transaction SPRO Code IMG Menu Materials Management > Purchasing > Purchase Requisition > Release Procedure > Procedure with Classifications > Setup Procedure with classification 12.2.3.1 Define Release Groups _ Change View "Release Groups: External Purchasing Document”: Overview EEE Be 12.2.3.3 Define Release Indicators [Released[Chigable [Value Change [Description | Lo # | BLOCKED 7 a fo0 [RELEASED FOR PRINTOUT 12.2.3.4 Define Release Strategy G.VSHIVAKKUMAR venkatesansivakumardSAP MM CONFIGURATION G.V.SHIVAKKUMAR Under this node, create the following release strategies based on the different document type for purchases like local / imported, and the value of purchase. 12, 4.1 Release Strategy 1 for local PO with low value RelesseGioup _(BE PO RELEASE CLASS rae [At] HEAD Purchase a3 GME) Reloass proroquisitas Felease statuses | _ Claceifeation, Maintain the below entries for Classification tab G.VSHIVAKKUMAR venkatesansivakumar@yahoo,SAP MM CONFIGURATION G.V.SHIVAKKUMAR Object 7 Rel | Release Class Type Release Strateuy WalussiorClsssZPORELEASE Object OT = |characterisiic Descrinti, [Value | lorder Tyne Purchasing) LP fTolatnetorcervalve <= 2500000.00 Ne ES) Sap) | 2 Release Strategy 2 for Local PO with High value Release cicup [fb] PO RELEASE CLass Releese staieqy _(82|[LocalPOrelease | 12 HEAD Facey ‘A4| Head (Finance) Release prerequisites: Release statuses 5 | classincation Release simulation Maintain the below entries for Classification tab G.VSHIVAKKUMAR venkatesansivakumar@yahoo, 14SAP MM CONFIGURATION Release aroun 60) Rel. Stratewy 82, Local PO release Class Tine o32 Release Stialeay Order Type (Purchasing) | talnetondervelue —_~ 2500000.00 NF 12.23.43 Release Strategy 3 for Import PO with small value Change View “Release Strategies: External Purchasing Documents”: Release Group [SC] Po RELEASE CLASS: release stctoyy —_(62|fnponra oesse | G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 15SAP MM CONFIGURATION Maintain the below entries for Classification Change View "Release Strategies: Classification Release group Rel. stratecy [83 _Import Po release. ‘Glace Typo 932 Roloaco stratoay [Order Tyne (Purchasing) |P [Tetainetordervaiue -= 27SVO0000INR &) 12.2.3.4.4 Release Strategy 4 for Import PO with high value Release Group 50] PO RELEASE CLASS Release Saiegy 5 |ImpartPO release-HY AZ| HEAD Factory G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 16SAP MM CONFIGURATION G.V.SHIVAKKUMAR Maintain the below entries for Classification Tab Change View "Release Strategies: Classification Rel. Strategy Release group. Class Tye 932 [B4]_impontPo reloase-Hv Release Straiea det Type (Purehasingy |? clalnetordervalue > 2700000.00 NR ase) 12.2.3.4.5 Release strategy for Service PO for low value revenues Relesce Group SC] PORELEAGE CLass Release Strategy 5) Senice PO - Revenue 3, OM) a "HEAD Purchase (Release pretequstes | | Release stauses | | classitcation | Release eimuraton | G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 1SAP MM CONFIGURATION G.V.SHIVAKKUMAR Under classification maintain the below entries Obiest 7 Releasegroup _[SC| Rel Stateay Satvice PO - Revenue Class Ty0e a2 Release state ‘Waluss for Clase ZPORELEASE. Objet GC 05 (Order Type Purchasing) 82 [Total netorcer value <= S0000.00 INR | I ab] 12.2.3.4.6 Release strategy for Service PO for high value revenues G.VSHIVAKKUMAR venkatesansivakumard £0 BSAP MM CONFIGURATION V.SHIVAKKUMAI Release Group GE] Po RELEASE CLASS Release Ststewy AH Senice PO-ReveHY | HEAD Facto “Hea (Finance) a Under classification maintain the below entries (aie Releasegroup (SC Rel. Strategy (8 Service PO- Rave HY Class Type 032 Release strategy lorer Type (Purchasing) 52 flalnetordervalue > 60007,00- 100000 001NR 12.2.3.4.7 Release strategy for Service PO for very high value. G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 79SAP MM CONFIGURATION Bal |e Release Group Release Skaiocy [SC Po RELEASE CLASS [87 |Senice FO- Reve HV 48] CEO. (“eteass preesusies | [[Releasestauses | | ciasemeaton | | Release simusion | Under classification maintain the below entries Relesse aroun [SC Rel Strate [37 Service PO- Reve HY Class Type. 032 Release Statesy. (Onter Type (Purchasing) $2 otalnetordervalue > 100000.001NR G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 80SAP MM CONFIGURATION G.V.SHIVAKKUMAR 13 Defining Vendor Account Groups In this step you determine the account groups for vendors. You can also define reference account groups for one-time accounts. These enable you to control the fields in the one-time account screen. You can, for example, make certain fields required fields and suppress others. When creating a vendor account, an account group must be specified. You can enter a reference account group in the "General data" section of the one-time account master record under "Control data". If you do not specify a reference account group, all fields in the one-time account screen for document entry are ready for input (as before). Via the account group you determine + The interval for the account numbers + Whether the number is assigned internally by the system or externally by the user (type of number assignment) + Whether it is a one-time account + Which fields are ready for input or must be filled when creating and changing master records (field status) Transaction SPRO Code IMG Menu Financial Accounting > Accounts Receivable and accounts payable > Vendor Accounts > Master Records > Preparations for creating Vendor Master Records -> Define Account Groups with screen layout Create the following entries for India. G.VSHIVAKKUMAR venkatesansivakumar@yvahoo.c 81SAP MM CONFIGURATION G.V.SHIVAKKUMAR Change View "Vendor Account Groups": Overview Ziel croup [Name a ZENE: Employee vendors Gl zFIN Finance Vendor a | |ZIMe importVendor ZINC Inter Group Compary Vendor ZINC Local Vendor | [ZONE one-time vencer [_[zSER Service Vendor “sev [enice Vendor indie 13.1 Assigning Number Ranges to Vendor Account Groups In this step you allocate the number ranges you created in the preceding step to the account groups for vendors. You can use one number range for several account groups. Transaction SPRO Code IMG Menu Financial Accounting > Accounts Receivable and accounts payable > Vendor Accounts > Master Records > Preparations for creating Vendor Master Records > Assign number ranges to vendor account groups Create the following entries for India. G.VSHIVAKKUMAR venkatesansivakumar@yahoo, 82SAP MM CONFIGURATION G.V.SHIVAKKUMAR Employee vendors [2FIN Finance Vendor 05 BIN Impertvencas os [ZINC Inter Group Company Vendor 03 Local Vendor 13.2 Payment Terms In this step, you define the terms of payment. Specifically, you define + Cash discount percentages + Periods allowed for payment (discount-qualifying periods) You store these terms of payment under an alphanumeric key. Transaction SPRO Code IMG Menu Materials Management > Purchasing > Vendor Master Define Terms of Payment Create the below payment terms as shown G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 83SAP MI G.V.SHIVAKKUMAR Change View "Terms of Payment”: Details PaytTeims Selested Daylimit ‘Ownemlenaton | mediate Payment G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 84SAP MM CONFIGURATION G.V.SHIVAKKUMAR Change View ‘erms of Payment”: Details pattems (F604) salestedt Day innit Own explanation Advance Payment G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 85SAP MM CONFIGURATION G.V.SHIVAKKUMAR Change View "Terms of Payment”: Details PaytTenms 7015) Salestoxt [ Day limit 8 vn expianation __|75 Days Credit Becount ype Baseline date caleulation Tloustemer Tikes day months Prrnt blockiprint method default ~ | Defaultfor baseline date ~ Black key iim ONo default OPosting date Payment Method fo @Document date Okntry date Faywelienis Citnstaiiment payment (Ree. Entries: Supplementim master Term Percentage No.of days / Fixed date © Aditional months 1 je (5) { ] 2 Is | | | 3 [1s Dats Creeit G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 86SAP MM CONFIGURATION PaytTerms G.V.SHIVAKKUMAR [095] Satesteat [ Daylimt o Own explanation (30 Days Great Account type — Baseline date calculation — customer Fed day [ Addifaral months Prat block/pmint methoc is ult Block key He ‘PaymentMothod [Detauiterbaceinie das” OND detautt @Documant dats Posting date Okniry dato Paymnentierns) 7 (Citnstallment payment (Ree. Entries: Supplementfn Master Tern Percentage No. of days: + Fixed date Additional months 1 |e [30] Cl LI 2 iz | = | | L Erplanations) “30 Days Creait G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 87SAP MM CONFIGURATION Change View "Terms of Payment’ aR) G.V.SHIVAKKUMAR Details PatTems [2848] Salestet Daylimt [2] ownerpianation [#8 Days Great ‘Aecount type ‘Beseline dete salculation Ccustomer Fed day Autonet | | Pmt blockipmnt method default - Default for baseline date Block key Uo ON default ‘Posting cate PayrmentMethod Ho Document date Ockniry date Paymentierms Chnstaliment payment Term (Ree. Enties: Supplement im Master Additional months: Percentage No.ofdays Fed date 1 is ; 2 |x 3 explanations “s5Days Credit G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 88SAP MM CONFIGURATION G.V.SHIVAKKUMAR _Change View "Terms of Payment a a Det PatTerms [2666] saesten Day ime 12) Owmexplanation G0 Days Creat Accourt tye Baseline date calculation Tleustomer Fed day J ‘Additonal months || Brant bladdpenr method detaulk Detail baseline date Block key Da ON defautt Posting date Payment Method Do @ Document date Entry date Faymentisrme Dhnstaliment payment (Direc. Enities: Supplerentin master Tern Pereentege No.ofdays /-Feddate Additional months a | s__| 60) { 2 - 1 3 [ G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 89SAP MM CONFIGURATION G.V.SHIVAKKUMAR Change View "Terms of Payment”: Details Bees) @ 2678) “PaytTeimns Sales text Daylimit 8] Ovmexpanation (78 Days Credit Accaunt tne Baseline date calculation ~ Customer Fikee day Additonal months rn locipmnt isting Ak Defaulfar acelin date” Block key Hal ON default OPosting date Payment Method @Document date OEntry date Paymentierme > Cinnstatiment payment (CiRee. Enities: supplement im Master Tem Percentage No. of days: (Fixed date Additional months: 1 ls [75 [ 2 | } [ 3 Biplanations) TaDays reat I G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 90SAP MM CONFIGURATION Change View "Terms of Payment’ G.V.SHIVAKKUMAR Details PaytTems (z096] Saestext Daylirnit {s Own explanation [90 Days Credit Account pe Seecline date calculation” Toustunre: Fie ay i) Fee ca “| [Defaulttortiaseting date“ “Block key fe ON detautt OPosting date Payment Method @Document date Payer emis Ciinstaliment payment Okntry date (Ree. Entries: Supplementim Master Tem Percentage © No.ofdays © -Fixeddate Additional months 1 is | 98) 2 ls | | [ 3 [ | [ | eaparanons [a0 Days Creait G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in a1SAP MM CONFIGURATION G.V.SHIVAKKUMAR 14 Stock Transport Order settings Stock transport Order functions like a purchase order for stock transfer of materials between two plants of the same company code as well as different company codes. Transaction Code IMG Menu Materials Management > Purchasing > Purchase Order > Set Up Stock Transport Order 14.1 Define Shipping data for Plants In this step, you maintain the shipping data for plants for stock transfer processing. Here you maintain the customer number of the receiving plant. This customer number is used in SD shipping processing to identify the goods recipient (ship-to party) if provision has been made in Customizing for a stock transfer to be carried out with an SD delivery (see Assign Delivery Type and Checking Rule) You can also define the following for the supplying plant + Sales organization + Distribution channel + Division 14.11 For Plant 1100 G.VSHIVAKKUMAR venkatesansivakumar@yahoo,co.in 92SAP MM CONFIGURATION G.V.SHIVAKKUMAR Change View "Stock Transport Order”: Details soa ae Part | eee Cuctrerne. pet |°7c0 |! yeore sisorg.ma a DistChannois ia ‘Damestie Direct 14.1.2 For Plant 1200 24gee Plant | ( Detailed information Mysore S1s019.INt 1300 —: DistChannell 18 Domestic Direct Divirt Billing 99 Miscetaneous | Canguaue for stocktransport order texts Language Key EN English G.VSHIVAKKUMAR venkatesansivakumar@yvahoo.cSAP MM CONFIGURATION G.V.SHIVAKKUMAR 14.1.3 For Plant 1300 gAmiae Plant 1200 NNN nai Eonded warenous P1300 ET ncis Pv t0 Bangalore siso1g inte 1300 a . DistChannelle 10 Domest: Direct Dieinteing 99 Miscellaneous | Lanauade er stockivanepon order texts Language Key EN English 14.1.4 For Plant 1400 alae Pant 1400 IE + warenouse Nysore SisOrgint. 1308 ss DistChannelis 13 Domestic Direct Divi Biting a0) Miscellaneous Language for siock transport order tats Language Key EW English G.VSHIVAKKUMAR 94SAP MM CONFIGURATION G.V.SHIVAKKUMAR 14.1.5 For Plant 1500 22 a2) Plant TT Bangalore Sisorgint, 1300 a Distchannella 16 Domestic Direct Bivanteining 35 Miscellaneous anguage for stock transport order tes: Language Key EN English 14.2 Assign Delivery Type and Checking Rule In this step, you specify whether an SD delivery is to be created in the case of a PO with a certain combination of supplying plant and document type. You can also specify which delivery type is to be used Maintain the following entries in this configuration node. Y ei S70 Bonded Warenause T00QMNNMMiChenraitl —Replerishent® SDdeWey — L] 21 S70 aorded Warehouse 1AOCRMNNMMysore cK Repleristenent® SDdeWvery — C] lz} STO aordeaWarenouse 1500 MMMBangsioNl Repleristenent® sDdeWey —C (1 [23 STO Factoy- Depot 1100 MNMMFactor NL Repleristenent® sDdeWey —] o lc4 STO Denot-Factoy 1200 mDenot NL Replerishment® sD delvey G.VSHIVAKKUMAR venkatesansivakumar@yahoo, 95SAP MM CONFIGURATION G.V.SHIVAKKUMAR 14,3 Assign Document type, One-step Procedure In this step, you define which document type is to be used for a certain combination of supplying plant and receiving plant. + If the supplying and receiving plants belong to the same company code, choose the document type 'UB! or a comparable document type of your own. A physical stock transfer is then carried out without a billing document. If the supplying and receiving plants belong to different company codes, choose the document type 'NB' or a comparable document type of your own. A physical stock transfer is then carried out with delivery and billing document. Depending on the supplying and issuing plants, you can also specify whether or not the stock transfer is to be executed according to the one-step procedure. With the one-step-procedure, the goods receipt in the receiving plant is posted at the same time as the goods issue in the issuing plant. Doc Cateaory —_ |F fot ii Trews Oo peor OO) Fl asa tioz1 OO [Disee r20027 [fae i807 pace, OO sea rio027 OC [lisea 120027 15 Valuation and Account Assignment In this section, you make the system settings required for the following areas + Material valuation + Link between Materials Management and Financial Accounting Requirements G.VSHIVAKKUMAR venkatesansivakumar@yvahoo.c 96SAP MM CONFIGURATION G.V.SHIVAKKUMAR You must have processed the defaults for the material types before you can make your configurations for "Valuation and Account Determination Account Determination Process in Materials Management In this section, you make the configurations relevant to transactions in ventory Management (for example, goods movements ) and in voice Verification (for example, invoice receipt for automatic postings to G/L accounts in Financial Accounting and Cost Accounting). 15.1 Define Valuation Control Materials Management > Valuation and account assignment > Account Determination > Account determination without wizard > Define Valuation Control The valuation area can be either the Plant or the Company code. SAP recommends having Plant as valuation area. Here we just activate the valuation control. Valuation Control Valuation grouping code @ Valuation grouping code actve OValuation grouping code not active 15.2 Group Together Valuation areas In this step, you assign valuation areas to a valuation grouping code. G.VSHIVAKKUMAR venkatesansivakumar@yvahoo.c 97SAP MM CONFIGURATION G.V.SHIVAKKUMAR The valuation grouping code makes it easier to set automatic account determination. Within the chart of accounts, you assign the same valuation grouping code to the valuation areas you want to assign to the same account. Valuation grouping codes either reflect a fine distinction within a chart of accounts or they correspond to a chart of accounts. Within a chart of accounts, you can use the valuation grouping code + to define individual account determination for certain valuation areas ( company codes or plants) Example + to define common account determination for several valuation areas (company codes or plants) Example | Transaction Code IMG Menu Materials Management > Valuation and account assignment > Account Determination > Account determination without wizard > Group together valuation areas Maintain the entries as below lvalArea _ |CoCode|Company Name. [ChrtiAceis __|Val.Grpg Code hia00 7000 MB nia Prt uta 1000 ‘a0ot i100 1000 Maia Pvt to 1090 (0001 200 1600 MD india Pot Uta 1030 0081 3001900 na Prt Ls 1998 0001 i400 4000 MEM noia rea 1090 ‘age 15001000 dia Pat Lic 4999 0001 valuation area Valuation area is an organizational unit in Logistics subdividing an enterprise for the purpose of uniform and complete valuation of material stocks. G.VSHIVAKKUMAR 98SAP MM CONFIGURATION G.V.SHIVAKKUMAR 15.3 Define Valuation Classes In this step, you define which valuation classes are allowed for a material typ If a user creates a material, he must enter the material's valuation class in the accounting data. The ERP system uses your default settings to check whether the valuation class is allowed for the material type. The valuation class is a group of materials with the same account determination. If a transaction is to be posted to different accounts depending on the valuation class, create an account determination for each valuation class in the step Create automatic postings. The valuation classes allowed depend on the material type. Several valuation classes are generally allowed for one material type. A valuation class can also be allowed for several material types. The link between the valuation classes and the material types is set up via the account category reference The account category reference is a combination of valuation classes. Precisely one account category reference is assigned to a material type. Transaction Code IMG Menu Materials Management > Valuation and account assignment > Account Determination > Account determination without wizard > Group valuation classes 15.3.1 Account Category Reference Maintain the below account category reference G.VSHIVAKKUMAR venkatesansivakumar@yvahoo.c 99SAP MM CONFIGURATION G.V.SHIVAKKUMAR [aper[Deseripticn i | JB034 Reterence for raw materia's | ]o892 Ret or operating supplies [0094 Reference for peckauina lo03® Reteronce for cervicas 0098 Ret to: semimnished products [0099 Ret for finished aroducts | | | | [0005 Retrence for ring goous | | | 15.3.2 Maintain the Valuation classes fans paw matenastsce Serene {501 Row metas hapa en ea Sieirermeree set Reancemmenastas Tor cpevating supplies erating supplies 2 tor eperatina supplies "6003 Spare pars "Reference fr spare parts {c008 Packauina matenals {6005 radng goods ‘Reference tor vading goods (2008 Services |Reet. for seminnished proauets fra26 6909 Finished procucts Tr finished products 15.3.3 Maintain the link between Account category reference and material type Maintain the below entries G.VSHIVAKKUMAR venkatesansivakumar@yahoo.co.in 100SAP MM CONFIGURATION G.V.SHIVAKKUMAR Change View "Account Category Reference/Material Type": Overview PE Ppoine materials AP Ceptal Goods i CustorrerinputNon Valued [PENG Engineering spares IZF61 OKS Finished goods Peer meses SF inctov goods | kF6T 6 Tott manvtasturea CK Panking matrals [ [Pt Pipeine materials [ROW Raw matenals hsF1 ox Sem insted goods ["fesr2 cM semiFrished goods (301 Reference orraw materials (807 Ret forrorvalusted material | (9303 Reference for spare parts (0809 Ret for ished products (0809 Ret for finished products (0809 Ret for fished products 1907 Ret for roraluated material (0304 Reference ornsckaging (0001 Reference forraw materials (801 Reference forraw materials (0808 Ret for cemifniched products (0000 Ret for semitnished products FINN Semi Fisisned good 0903 Ret fer series products NDEBTreded yoods M6905 Rofronc fortadig gods [Cetra yooas e005 Reerence orvading 90008 15.4 Configure automatic Postings Postings are made to G/L accounts automatically in the case of invoice Verification and Inventory Management transactions relevant to Financial and Cost Accounting. How does the system find the relevant accounts? When entering the goods movement, the user does not have to enter a G/L account, since the ERP system automatically finds the accounts to which postings are to be made using the following data: + Chart of accounts of the company code If the user enters a company code or a plant when entering a transaction, the ERP system determines the chart of accounts which is valid for the company code. You must define the automatic individually for each chart of accounts. + Valuation grouping code of the valua' account determination n area G.VSHIVAKKUMAR venkatesansivakumar@yvahoo.co.in 101SAP MM CONFIGURATION G.V.SHIVAKKUMAR If the automatic account determination within a chart of accounts is to run differently for certain company codes or plants (valuation areas), assign different valuation grouping codes to these valuation areas. You must define the automatic account determination individually for every valuation grouping code within a chart of accounts. It applies to all valuation areas which are assigned to this valuation grouping code. If the user enters a company code or a plant when entering a transaction, the system determines the valuation area and the valuation grouping code. + Transaction/event key (internal processing key) Posting transactions are predefined for those inventory management and invoice verification transactions relevant to accounting. Posting records, which are generalized in the value string, are assigned to each relevant movement type in inventory management and each transaction in invoice verification. These contain keys for the relevant posting transaction (for example, inventory posting and consumption posting) instead of actual G/L account numbers. You do not have to define these transaction keys, they are determined automatically from the transaction (invoice verification) or the movement type (inventory management). All you have to do is assign the relevant G/L account to each posting transaction. + Account grouping (only for offsetting entries, consignment liabilities, and price differences) Since the posting transaction “Offsetting entry for inventory posting" is used for different transactions (for example, goods issue, scrapping, physical inventory), which are assigned to different accounts (for example, consumption account, scrapping, expense/income from inventory differences), it is necessary to divide the posting transaction according to a further key: account grouping code. ‘An account grouping is assigned to each movement type in inventory management which uses the posting transaction "Offsetting entry for inventory posting". Under the posting transaction “Offsetting entry for inventory posting", you must assign G/L accounts for every account grouping, that is, assign G/L accounts. If you wish to post price differences to different price difference accounts in the case of goods receipts for purchase orders, goods receipts for orders, or other movements, you can define different account grouping codes for the transaction key. G.VSHIVAKKUMAR venkatesansivakumar@yahoo.co.in 102SAP MM CONFIGURATION G.V.SHIVAKKUMAR Using the account grouping, you can also have different accounts for consignment liabilities and pipeline liabilities. + Valuation class of material or (in case of split valuation) the valuation type The valuation class allows you to define automatic account determination that is dependent on the material. for example you post a goods receipt of a raw material to a different stock account than if the goods receipt were for trading goods, even though the user enters the same transaction for both materials. You can achieve this by assigning different valuation classes to the materials and by assigning different G/L accounts to the posting transaction for every valuation class. If you do not want to differentiate according to valuation classes you do not have to maintain a valuation class for a transaction Transaction Code IMG Menu Materials Management > Valuation and account assignment > Account Determination > Account determination without wizard > Configure automatic postings G.VSHIVAKKUMAR venkatesansivakumar@vahoo.co.in 103