SAP MM Configuration and Examples

 

SAP Career Guidance  2020  2020 

SAP ECC 6.0 PRACTICAL KNOWLEDGE SHARING

SAP MM TRAINING  PRASHUN SHETTY CAREER COACH CONTACT: 8971164999

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SAP Career Guidance  2020  2020 

Index  Sr. Date

Topic

Pg.

1 2 3

19-06-2020 20-06-2020 21-06-2020

Course Curriculum Introduction to Org. Structure Master data Creation with P2P process a.  Material b.  Vendor c.  Purchase Info Record d.  Source List e.  Purchase Requisition(PR) f.  Purchase Order(PO) g.  Goods Receipt(GR) h.  Invoice Receipt(IR)

3 7 9

4

22-06-2020

Customization of Master Data with related material document. a.  Material

22

5 6 7 8 9 10

23-06-2020 24-06-2020 25-06-2020 26-06-2020 27-06-2020 20-06-2020

11 12 13 14 15 16 17

02-07-2020 05-07-2020 06-07-2020 07-07-2020 08-07-2020 09-07-2020 10-07-2020

b.  Vendor c.  Purchase Info Record d.  Source List e.  PR f.  PO Request For Quotation Release Procedure Outline Agreement Pricing Procedure Special Procurement Service Management a. Service Master Creation a.  Service PO b.  Service Entry Sheet Inventory Management Physical Inventor Inventory y Automatic Account Determination Split Valuation Invoice Verifica Verification tion Automatic PO Process Cross Module – Integration Configuration

39 48 57 66 91 131

135 157 168 182 192 201 208

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SAP Career Guidance  2020  2020 

SAP MM Consultant  – Course Content Candidate Name : Jeevan Naik  SAP MM Course Curriculum: Introduction to SAP  SAP  Discussion on ERP and other ERP clients in the market Comparison with SAP to other ERP clients and focusing on the points of SAP over other ERP clients Introduction to SAP screens and ways of calling the transaction Definition on Configuration and Customization Organization Structure  Structure  Definition on Organization elements Client Company Code Plant   Plant Storage Location Purchase organization Purchasing Group  Group  Assignment of Organization elements and making of Organization structure

Master Data in Material Management Configuration and customization activities on Material Master  Master  Configuration and customization activities on Vendor Master  Master  Configuration and customization activities on Info Record Master  Master  Configuration and customization activities on Source List Master Master  

Procurement Cycle Discussion of complete procurement cycle from Demand to Supply in real time ti me perspective  perspective  Purchase Requisition Direct Purchase Requisition  Requisition  Configuration on Purchase Requisition  Requisition 

Request For Quotation (RFQ) Configuration and Customization activities on RFQ

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SAP Career Guidance  2020  2020 

Quotation Maintain Quotation  Quotation  Price Comparison Comparison  

Purchase Order Standard Purchase Order  Order  Configuration on Document type Discussion on item category category   Subcontracting Purchase Order  Order  Complete process discussion like creating Sub contracting PO, Goods Issue, GR. Creation and exploding of BOM  BOM  types   Details of consumption of components with respective movement types Order  Consignment Purchase Order  Complete process execution like PO creation, GR and settlement.  settlement.  Stock Transport Order  Order  Intra-Stock STO with MM route Intra-Stock STO with Delivery Inter-Stock STO  STO  process   Service Purchase order process

Pricing Procedure Condition Techniques  Techniques  Access Sequence Sequence   process  Pricing determination process  determination  Schema determination  Release Procedures Edit Characteristics  Characteristics  Edit Classes  Classes  Procedures   Release Procedures

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SAP Career Guidance  2020  2020  Release Group Release Code Release Indicator Release Strategy

Contracts Value Contracts  Contracts  Quantity Contracts Contracts   Schedule Agreements Schedule Agreements without Release profile  profile  Inventory Management Goods Receipts  Receipts  Goods Issues  Issues  Posting  Transfer Posting  Creation   Movement Type Creation Automatic Account Determination Valuation Class  Class  Account Category Reference  Reference  Account Postings  Postings  Split Valuation

Valuation Type  Type  Valuation  Configuration related to Split Valuation  Physical Inventory Process Annual Inventory  Inventory  Periodic Inventory  Inventory  Inventory  Cyclic Inventory  Invoice Verification Invoice Verification  Verification  Credit Memo  Memo 

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SAP Career Guidance  2020  2020  Subsequent Debit Debit   Credit   Subsequent Credit

Automatic PO process PO   Configuration on automatic PO  Cross Module i.e Integration Configuration

Warehouse Module  Module  Quality Module  Module  Distribution  Sales and Distribution  Finance and Controlling  Controlling 

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Exercise: Day 1: SAP MM Org Structure:

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SAP Career Guidance  2020  2020 

Master Data & P2P application: Master data in MM module contains all the basic information need to manage a material. These data records are stored centrally and are used and processed on a cross-application basis. Material Management of SAP maintains the records of various activities and processes material procurement, material modification and production, such as purchasing materials, storing and maintaining them. Creating masters is the basis to start any implementation, which reduces repetitive work and minimizes the chances of errors. The following are the list of master records in SAP MM as shown in below figure:

Material Master: Master: It contains all data required to define and manage material. Service Master: Master: It contains the details of all the services that can be procured from an external vendor within organization. Vendor Master: Master: It contains information on vendors from which a company can procure or sell. Info Record: Record: It used to record purchasing information with the vendor for certain material and also store information about last purchasing price, planned delivery time, remainder for invoice verification etc. Source List: It includes the list of possible sources of supply for a material over a given framework of time.

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Day 2: Master Data (Material/Vendor/PIR/Source List) with P2P process (PR-PO-GR-IR): 1)  Material master consist of following views as shown in the figure. T Code  – MM01.

The following are the level to which all the data will be stored as per the Material view. 1.  Basic data - Client level. 2.  Purchasing, MRP, Costing data –  – Plant level. 3.  Sales data – co untry level).  – Sales Organization level (tax indicator is at country 4.  Storage data –  – Storage location level. 5.  Accounting data –  – Valuation Area level.  – Warehouse Number level. 6.  Warehouse Data – 7.  Storage Type Data –  – Warehouse number and storage type level.

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SAP Career Guidance  2020  2020  We are Creating Material master using following views. - 

Basic data 1&2

- 

Purchasing

- 

Accounting view

- 

General data 1 & 2

Basic Data View: In the below figure we can see the highlighted data is been saved in this view such as UOM, Material Group, weight etc.

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Purchasing View: In this view we can save default order unit to order the material .

Purchasing Value Key: Purchasing Value Key is useful for setting reminder for the material you can find in material master m aster in Purchasing view. Purchasing value key determines the following things: 1) Reminders keys- There are 3 keys which determine in how many days before or after the vendor has to be reminded or urging letters for the material procurement. 2) Over and under deliveries tolerances. 3) Order acknowledgement requirements in PO. It gives all the conditions in which the procurement is made. You can have different purchasing value keys which has to be customized in IMG - MM - Purchasing - MM - Define Purchasing Value Keys K eys / OME1 Tax code.

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Accounting View: The Valuation Classes & its prices is maintained in this view.

As we observe in the above we can have a price control for standard view as well as for moving price. Also we can maintain the valuation class as per the valuation area level, can have multiple valuation class as per the valuation category.

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2)  Vendor master consists of three areas: T Code  – XK01 1. General Data – Company Code Level 2. Company code Data – Company Code Level 3. Purchasing Data – Purchase Organization Level

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3)  Purchase info record: T Code  – ME11 Purchasing info record stores information on material and vendor, supplying that material. For example, a vendor's current price of a particular material is stored in info record. Purchase info record can be maintained at the plant level or at the purchasing organization level.

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4)  Source list: T Code  – ME01 Particular material maintained in Purchase info record can be ordered from different vendors in different time intervals. This information can be maintained in a list that is called c alled as the source list. Note: We can block the vendor & Source list can be copied from one plant to another plant. we have to mention the agreement also if any in this list or it will give war warning ning in PO. In purchasing view of material master we can c an make source list mandatory.

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Procure to Pay Cycle: Below Figure shows the flow for P2P cycle.

In the System the P2P are as follows: ME51N - Purchase Requisition - Internal document ME21N - Purchase order (If vendor ve ndor is already) - External document. If there is no vendor then go with RFQ MIGO -Goods receipt MIRO - payment to vendor

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Purchase Requisition: T Code: ME51N It is an internal document contain the t he list of requirement raised within the organization. It is the t he internal document which require approval from purchase Organization. Purchase requisition number 0010017540 created

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PR Release: T Code: ME54N As the Purchase Requisition document with high price required re quired permission of higher grade officers as shown. Purchase requisition 0010017540 changed

Purchase Order: T Code: ME21N The Purchase order is an external document used to request item or services from a vendor at an agreed upon price. Standard PO created under the number 4500018422

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Goods Receipt: T Code: MIGO A goods receipt is the physical inbound movement of the goods or material into the warehouse. All Goods receipt result in an increase of stock in the warehouse. Material document 1105 posted

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SAP Career Guidance  2020  2020  Note: After MIGO transaction the material is available for further stock we can able to MMBE (Stock check by using T Code MMBE  (Stock Overview) , in which it is directly added to unrestricted stock

Note: In the Above Figure before GR it was 4000 in unrestricted use & after doing GR Note: In 1000kg is added in unrestricted stock from Ordered Stock.

Invoice receipt: T Code: MIRO Once the Goods or Material are procured from a vendor and placed in company premises through GR, we need to pay the vendor for acquired goods. The amount to be paid along with the details of the material is provided by the vendor in the form of a document that is known as the invoice. We can be the document type & the accounting view for Invoice receipt Using T code: MIR4   MIR4

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Document no. 5200000245 created Summary Recap: In this Session we made a Master Data for Material, vendor & their Purchase Info Record fallowed by Source list. We also done the P2P cycle of Material and also overview the material in stock. The below table shows the accounting entries after MIGO, MIRO & Payment The detail we be seen in Account determination & Invoice Verification topic. (Refer Page No. 168 for complete detail) Transaction Key WRX BSX KBS (Vendor Account) Bank Account

MIGO (Goods Receipt) Credit (-) Debit (+)

MRKO (Invoice Settlement) Debit (+)

Payment

Credit (-)

Debit (+)

Credit (-)

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SAP Career Guidance  2020  2020 

Day 3: Customization of Mater Data & Material Document. Customization in the standard system mainly done for Business requirement in an organization. created by Functional consultant whileisconfiguring the data through SPRO. If any technical change, program change that will be handled through Workbench - ABA ABAP P consultant , Technical Consultant

 

•

Material master:

The following are example in the standard st andard SAP R/3 System, and what their different roles are:

FERT (finished products) Finished products are produced by the company itself. Since they cannot be ordered by Purchasing, a material master record of o f this material type does not contain purchasing data

HALB (semi-finished products) Semi-finished products can be procured externally (sub-contracting) as well as manufactured in-house. They are then processed by the company. A material master record of this material type ty pe can contain both purchasing and work scheduling data. ROH (raw materials) Raw materials are always procured externally exter nally and then processed. Since raw materials cannot be sold, a material master record of this material type contains no sales data.

In System we create a Material of ROH Type in the system – WROH.

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The above figure shows the path to create a new Material Type & to set the respective number ranges.

Note: After Creating a Material type its Qty./Value should should be updated in its Valuation area using T code OMS2

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SAP Career Guidance  2020  2020  The Below figure shows the details stored in material type which are highlighted

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SAP Career Guidance  2020  2020  Number Ranges of Material type: As any new material for respective re spective material type is created its automatically takes the number range as it is defined in the system. We can modify the number range as per Organization requirements.

As we see the new material we created earlier was saved in the All material types group by default. Now we will change this Material type Number Range & its Group

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SAP Career Guidance  2020  2020 

The Below Figure shows in All Material types Both the Number Ranges are there .ie. Internal & External.

We will Change number range of the Material group to TEST1 from All Materials Type as shown in the figure

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SAP Career Guidance  2020  2020 

Hence if we create the new new material for WROH material type, the number number range will take as per the allotted group i.e. Test 1. As shown in the below figure as Test 1 group contains the internal number range between 1  – 1000 & external number range between 1000001001 - 1000001300. 1000001300.

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Material 3706 created Note: Similarly the number range plays the same role for other master data as well as the Document type.

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Vendor Master:

Vendors are created to procure the material which are not able to produce inside the plant. Account group determines vendor account group through which we w e can group certain vendors into one group and maintain certain configuration for that. We have material type in material master where we use select the fields and number ranges with the help of material type-its act as a bridge, br idge, coming to vendor master in similar to material m aterial master we have account group here, where we use to define the account group select the field selecting as per that and we will maintain the number ranges in the intervals and we will apply that interval to account group. Vendor -Account group Interval-Number range Number range-Account group

SPRO  Logistics general  Business partner  Vendor  Control  Define Account group and field selection / Number Range

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SAP Career Guidance  2020  2020 

We can Create new account Group & required field selection

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SAP Career Guidance  2020  2020  After Creating a new account group & its field selection as per business requirement we can assign the number range as shown in below figures.

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Purchase Info Record:

Purchase info record stores the record in Stock (IL) & Non Stock (IN) respective allotted number range as shown in the figure.

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SAP Career Guidance  2020  2020 

Note: When we create the Purchase info record it default choses the element type IL in number

.

range

Purchasing info record 5300007487 1000 1000 created - 

Purchase info record created for Material 3706 & Vendor 100455

Customization of Material Document: We can customize the document type as per the Company Requirement.  Requirement.    

•

Purchase Requisition (PR):

To create a new document with modified field selection we have to do the ffollowing ollowing steps as shown in the figure Step 1: 1: Through IMG Path – Material Management – Purchasing – Purchase Requisition, Select the define Document Document type.

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Step 2: 2: New ZBN Document type created by copying Standard NB document type Note: We can also able to assign the number range as per company requirement.

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Step 3: 3: We have to create new field fi eld selection for the new document type, just go to Screen layout as shown in Figure in that we will copy NBB document to new document YBB.

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Step 4: As 4: As per our new document Type YBB created we can now change the Field selection as per our requirement.

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Step 5: 5: Enter the Modified field selection in Document type. As shown in figure the Field selection ZBB is linked with Document type ZNB.

Note: While making the PR document to execute this customise we need to select the Note: document type as ZBN & the required field will appear automatica automatically. lly.

 

•

Purchase Order:

Note: For Purchase order customization is similar as of the Purchase requisition only difference is their Field selection name (In PO – NBF as standard field selection).

Summary Recap: In this session we saw the Customization of Master data & some material document in which gone through the various number ranges & some field selection view in some material document. Hence we learnt that any document can be customize using the IIMG MG path.

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SAP Career Guidance  2020  2020 

Day 4: Request For Quotation (RFQ): Vendor selection is an important process in the procurement cycle. Once requirements are gathered, we start looking for possible suppliers who can fulfill the requirements at the best possible price. So, a request is i s made to the vendors to submit their quotations indicating the price of the material along with their terms and conditions. This request is known as the request for quotation (RFQ). In the SAP System RFQ is of three steps procedure procedure as fallows ME41 - Creation of Quotation ME47 - Maintain price ME49 - Price Comparison Note: We will take 3 vendors in this system & their respective prices will be compared & Note: will select one vendor from these by comparing through through system. Vendor 0000100536 has been created for company code 1000 purchasing organization 1000 Vendor 0000100537 has been created for f or company code 1000 purchasing organization 1000 Vendor 0000100538 has been created for company code 1000 purchasing organization 1000 Step 1: We 1: We will send quotation request for Material 3706 for these three vendors. T Code:  Code: ME41 Note: Coll. No. is necessary to compare the Vendors (Bidder) price, once all the prices are obtained as shown in below figure.

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RFQ created under the number 6000000140

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SAP Career Guidance  2020  2020 

RFQ created under the number 6000000141

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RFQ created under the number 6000000142 6000 000142 Note: In above 3figures we saw the quotation request sent to the 3vendors specifying the qty., quote date, delivery date etc.

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SAP Career Guidance  2020  2020  Step 2: We 2: We will Maintain the price for the 3vendors as send by them in the system. T Code: ME47

Quotation for RFQ 6000000140 maintained

Quotation for RFQ 6000000141 maintained

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SAP Career Guidance  2020  2020 

Quotation for RFQ 6000000142 maintained  maintained  

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Step 3: 3: All the Price are obtained from the all vendor, now we will compare the price of these vendors. T Code: ME49

As we see in the above figure the prices are compared and the rank are been allotted to the respective vendors as per their quotation value.

From the above example Vendor(Bidder) 100537 is selected as compare to 100538 & 100536.

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Additional Note: If we want to reject the vendor in case without comparing the prices of another vendor then we can do by using T Code : ME47, enter the RFQ document number then click on the overview and mark as Rejection Indicator as shown in the below figure.

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SAP Career Guidance  2020  2020 

For Customization of RFQ: Similarly compare to other customization can be done through IMG path as shown in below figure.

Summary Recap: In this Session we saw the selection of vendors using RFQ as well as how to Reject the vendor directly without comparing to other vendors and configuration of RFQ if required.

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Day 5: Release Procedure for PR & PO:  

•

it is the online approval given by the person responsible for the release of purchase document. 

The difference In release procedure in PR & PO are: Release Procedure for PR 1.  We can release the PR at both

Release Procedure for PO 1.  We can release the PO at only Header level.

level i.e. Item level & Header Level. 2.  If we approve any one of many item in PR, then

2.  We cannot send the partial PO to the vendor been an

purchasing can already start

external document, hence we

ordering this item regardless

can only have an overall

of the release of other items.

release.

Eg. If Item A is only approved and other Item B & C is blocked, PR will release for item A. 3.  The Database table (SE11)

3.  The Database table (SE11) stored in ABAP dictionary for

stored in ABAP dictionary for PR name as CEBAN. 4.  To Release the PR we use the

PO name as CEKKO. 4.  To Release the PO we use the ME29N   T code: ME29N

T code: ME54N code: ME54N  

Note:: We use Database table (SE11) for Service Entry Sheet Release Procedure Note Document

Table Name

SES (Service Entry Sheet)

SESSR

As we observe from the differentiate between the PR & PO, all the processes are same for both except the Classification of level & database table. Hence we will do the release procedure for PR in the system (same will do for the PO).

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Release Procedure for PR: Let’s see the Difference in Header level & Item in Release procedure for PR.  

Header level Release Procedure 1.  Releasing the PR as a whole

Item level Release Procedure 1.  Releasing of the PR line item

document is known as header

is known as item level

level release procedure.

release procedure.

2.  We use field name in reference

2.  We use field name in

to table field as GFWRT in Total

reference to table field as

Value of Requisition

GSWRT in Total value of requisition.

3.  In the Release Group, Overall of requisition is flagged.

3.  In the Release Group, Overall of requisition is not flagged.

4.  In document type overall release of requisition is flagged. Note: All the Point 2,3 & 4 is mandatory for Header level Release procedure.

4.  In document type overall release of requisition is flagged. Note: All the Point 2,3 & 4 is mandatory for Item level Release procedure.

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SAP Career Guidance  2020  2020  Note: We cannot do both Release (Item & Header level) in one PR, Only one is possible item or Overall release (Header). Release Procedure consist of following  

•

Characteristics

Class   Release Group  

•

•

 

Release Code

 

Release Indicator

 

Release Strategy

•

•

•

Characteristics: It defines the properties of an object - 

In this we will select the Purchase Document type & The Total value.

As we Know the Table Name for PR is CEBAN CEBAN for  for release & for field name we can get from ABAP dictionary database table T Code: SE11 Code: SE11

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Characteristic CCP_PRDOC saved

//For Purchase Document

Characteristic CCP_TOTALVALUE CCP_TOTALVALUE saved

//For Total Value

Class: Characteristic Characteristicss are assigned to Class.

Class type 032: Class CCP_PR created

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SAP Career Guidance  2020  2020  Release Group: It is assigned to class & we can create the release group as per our requirement.

As we see in above figure new release group CC is created, assigned to class CCP_PR and made it as Overall Release(Header level).

.

Release Codes: It is an approver of the document

As below figure shows we made 3 approver (codes) in the Group.

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Release Indicator: It is an indicator which will release and block as per the requirement.

As reference to above figure we created the two Release Id Release & Block.

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SAP Career Guidance  2020  2020  Release Strategy: It contains the condition condition in which Release Procedure Procedure can apply.

In Release Prerequisites tab – we can set the priority as shown in figure.

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Release Statuses tab – we have to set the release indicator as shown in below figure.

Classification tab – we can set the condition as shown in below figure

System Example: We have completed all the release procedure for Purchase Requisition Header, now using the values set in Release Rel ease Procedure we will make a PR

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Purchase requisition number 0010017563 created

In the above figure we observe Release strategy condition automatically triggered as it satisfied the condition mention in the release strategy. Note: Without the approval of the approver(release code) we cannot able to create the PO for the same. Therefore in order to approve we use T Code: ME54N.

Purchase requisition 0010017563 changed

Summary Recap: In this Session we have learnt how to create the release procedure for the purchase document & to release it.

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Day 6: Outline Agreements: An outline agreement is a longer-term arrangement with a vendor regarding the supply of material. Outline agreement are of two types namely Contracts and Schedule Agreement. Contracts

Schedule Agreement

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

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.

When we require we will release the purchase order against contract i.e. we will create a PO with reference to the contract.

Where as in Schedule agreements we can enter the schedule lines i.e. delivery schedules for a scheduling agreement.(No PO required)

T code: ME31K

T code: ME31L & ME38 to create cr eate Schedule lines.

Contracts: T Code: ME31K As we know that the Contracts is of two types value & quantity, let us see the difference between them. Quantity

Value

The overall value is specified in terms

The overall value is specified in terms

of the total quantity of material to be

of the total amount to be paid for

supplied by the vendor.

that material to the vendor.

MK   Document type: MK

WK   Document Type: WK

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We will now create Quantity contract for Material 3147 & Vendor 100537 and validity will maintain till 24-12-2021 as shown in figure.

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Quantity contract created under the number 4600000160  4600000160   Further we set the price & the target qty. in the Contract as shown in above figure. Now we will create the PO for this contract by referring the outline agreement number in PO as shown in below Figure.

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Standard PO created under the number 4500018474 Material document 1153 posted

//GR posted.

Note: If we exceed the limit of the contract then in PO system will show the warning message as we seen in the below figure.  figure. 

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Points to be noted: In the PO (4500018474) go to item i tem level conditions tab in that click on analysis tab & observe the Price took by the system & will discuss later in Pricing

 

Procedure topic.

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SAP Career Guidance  2020  2020  Schedule Agreement: T code: ME31L

We will create Schedule agreement for one month for target qty. 1000kg as shown in the below figures. figures.

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Scheduling agreement created under the number 5500000179

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Schedule Lines: T Code: ME38 We will now create the delivery dates.

Scheduling agreement 5500000179 changed As we see in the above we created the delivery schedule with the quantity, now we will do the Goods Receipt as we know schedule agreement doesn’t require PO.  

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Material document 1154 posted Note: From the above example we received the 250kg of 1000Kg as Planned in schedule lines, remaining stock stock i.e. 750kg will be marked as on order stock stock in the system as shown in below figure.

Summary Recap: In this session we learnt Outline agreement such as contracts type, schedule agreement & its schedule lines.

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Day 7: Pricing Procedure: Pricing procedure is a way to determine prices in purchasing documents. It gives us functionality to assign different calculation types for different needs.

Calculation Schema

Condition Type

Vendor Schema Group

Purchase Org. Schema Group

Access Sequence

Condition Table 1

Condition Table 2

Condition Table 3

Price Picking Priority of Access Sequence

Flow Chart for Pricing Procedure As Shown in the flow chart Calculation Schema is a structure that logically combines the schema group & the Condition types where Condition types find the condition record in the Access Sequence. Access Sequence is a strategy to search for a condition record in condition table.

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Path to customize the pricing procedure are as follows: SPRO  Material Management  Purchasing  Conditions  Define Price Determination Process  

We can maintain the pricing procedure for different vendor such as international or domestic as the prices are different as compare to each other, For this thi s henceforth we can have different Calculation schema for each vendor type as well as for different organization. The vendor & the Purchase Organization is maintained in Schema group and assigned to determination  calculation schema by Schema determination 

Now let us define a Calculation Schema & assign the schema group with schema determination and then Condition Type assigned to calculation Schema.

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i.  Calculation Schema – Schema Group:

Calculation Schema

Vendor Schema Group

Purchase Org. Schema Group

Step 1: Define Calculation Schema. We have crested the new Calculation Schema CCP001 as shown in figure below by copying the standard calculation schema or we can create as per our own by clicking in New Entries Tab.

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Step 2: Define Schema Group In this step we will define the schema group for vendor & the purchase organization. Then we will assign to respective vendors and purchase organization. This further divided into sub steps as shown in figure below: a.  Schema Groups: Vendor b.  Schema Groups for Purchasing Organizations c.  Assignment of Schema Group to Purchasing Organization.

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SAP Career Guidance  2020  2020  a.  Schema Groups: Vendor New Schema Group Vendor created as CP as shown in below figure.

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Now we will assign the schema group vendor in its master data of the vendors. This is to be assigned in the purchasing view of the Vendor master data. In this Case we will take vendor as 100455 and assign schema group vendor CP in it.

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b.  Schema Groups for Purchasing Organizations We have created the new Schema group for Purchase Organization as shown in figure below.

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c.  Assignment of Schema Group to Purchasing Organization As the name suggest the Schema Group is assign to the Purchase organization. We will assign Purchasing Organization 1000 to Schema Group CCP1 as per below figure.

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Step 3: Define Schema Determination In this Step we will assign the Calculation schema and schema groups together for Purchase Order functioning as shown in below figure.

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Referring the above Configurations, updating the flow chart we have

Calculation Schema CCP001

Vendor Schema Group CP = 100455

Purchase Org. Schema Group CCP1= 1000

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ii. Condition Types – Calculation Schema:

Condition Type

Calculation Schema

Access Sequence

Condition Table 1

Condition Table 2

Condition Table 3

Flow Chart for Condition Type – Calculation Schema Previous topic we saw the Schema Group is assigned to the Calculation schema, in this topic we will see the Calculation Type assigned to Calculation Schema. Also we will assign the condition table to Access Sequence & access sequence to condition type.

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Step 1: Maintain Condition Table It’s a table where we can save all the fields with combination for individual condition record/ Value. Note: We can create the Condition Table from 501 to 999 as before 501 uses by SAP system.

The above figure shows the creation of Condition tables where in right hand consist of field catalog, in which the selected field from the field catalog comes in left hand side. Hence if we save this Condition table it takes the table number as 605 as shown in figure.

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Step 2: Define Access Sequences It searches the condition record for condition types from conditions table. We can set the priority from which the condition record/Value should from its Condition Tables. We can create the new Access Sequence by clicking on new entries/ copying from existing and then we can give the Condition table as per our priority to pick the condition record/ values.

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In this Example we will add the Condition table & their fields in the existing access sequence. I.e. we will add Condition Table 968 in the Access sequence PB01.

From the above Figure Access sequence PB01 has 6condition table, the priority for Gross Price Value will Value will be given from top to bottom as per mention serial number i.e. Starts from No.5 Contract Item, No.10 Material Info Record (Plant-Specific), No.20 No .20 Material Info Record,…………..so on.

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From the above example we now can have a flow chart for Access Sequence and Condition table for Gross Price are as fallow:

Access Sequence

Condition Table 16

Condition Table 17

PB01 

Condition Table 18

Condition Table 25

Condition Table 28

Price Picking Priority of Access Sequence

Flow Chart for Access Sequence

Where, Condition Condition Condition Condition Condition Condition

Table Table Table Table Table Table

16 17 18 25 28 968

= = = = = =

Contract Item Material Info Record (Plant-Specific) (Plant-Sp ecific) Material Info Record Info Record for Non Stock Material (Plant-Specific) Info Record for Non Stock Material Vendor/Material/Plant

Condition Table 968

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Step 3: Define Condition Types. Types. It is the specific feature of daily activities in a system & used for different types of charges like Gross Price, discount, surcharge, freight etc. As per our example we are taken gross price for customization. We can have our own condition type by creating new entries or copying from other as per business requirement, In our case we are using the standard Condition Type for Gross price i.e. PB00 PB00  

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Access Sequence is assigned to Condition type.

From the above figure we observe that Condition type PB00 (Gross Price) is assigned to the Access Sequence PB01.

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SAP Career Guidance  2020  2020  Step 4: Creating Condition Record/Value for Condition Table Using T Code: MEK1 T Code: MEK1 menu path Logistics  Materials Management Other  Create →

 Purchasing

→

 Master Data

→

 Conditions

→

 

→

→

We created a new condition table 968; now let us put the condition values for condition type PB00

The above figure gives the Condition Type – Condition table option to enter the value which is stored in the access Sequence as we have seen earlier.

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SAP Career Guidance  2020  2020  We will give the Condition Value to our new created Condition Table.

Condition records saved saved

Condition Values are maintained as per our fields selected in the Condition table as shown in the above figure. Referring to above figure we created the Condition value for Vendor/Material/Plant combination where Price is given as 105 INR per Kg. Note: We can assign the Condition value in Condition table fields only when the Condition Type is assigned with the Access Sequence.  

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Step 5: Define calculation Schema (Condition Schema (Condition Type – Access Sequence) Here we maintain sequence for the pricing calculation like Gross price, Discount etc. We maintain here the calculation for all condition type & group together all required condition types for our pricing procedure. Below figure we can see PB00 is maintained.

Note: Conditions inside a calculation scheme are organized using steps. The SAP Note: Conditions system will perform pricing for purchasing documents according to the steps numbers. First, the pricing condition from Step 1 with Counter 1 will be calculated and displayed. Then, Step 1 with Counter 2 and so on. The Column “From” &  “To”  “To” represents represents the dependent dependent values values for that table  table  E.g. in RA01 discount % depend on PB00 Gross price to calculate the value. Similarly  “to” table can use to set the Range. We can set values for Calculation Schema manually (Manual Input), required (Maintain the Value) or statistical (act like neutral independent of value).  “Acctkey” column can be used to set set the G/L account for specific condition type using using

the OBYC configuration if required.

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SAP Career Guidance  2020  2020  From the above Customization we obtain the flow chart for Gross price as:

Vendor Schema Group CP = 100455

Calculation Schema CCP001

Condition Type PB00

Access Sequence  Sequence 

Condition Table 16 Table  16

Condition Table 17 Table  17

Purchase Org. Schema Group CCP1= 1000

PB01 

Condition Table 18 Table  18

Condition Table 25 Table  25

Condition Table 28 Table  28

Condition Table 968 Table  968

Price Picking Priority of Access Sequence

Flow Chart for Pricing Procedure Note: We Note:  We put green color in Condition Table 17 & 968 because we maintain the price value (17 – Purchase Info Record in Master data, 968 – Price Maintained in Condition Record).

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SAP Career Guidance  2020  2020  Now we will create the PO using the Vendor & Purchase Organization combination & observe the Pricing Procedure as per our customization.

The Pricing of the material can be seen in the item level Condition type then go to the analysis tab as shown in below figure.

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SAP Career Guidance  2020  2020  In the Pricing Analysis we observe that The Calculation Schema CCP001, Condition Type PB00 and the Condition value for Gross price triggered as done in customization.

In the above Analysis pricing figure we observe the element maintain as per the sequence & respective price found in the Material info record (Plant-specific). Why is doesn’t pull the value for Condition table no.968?  We had also maintained the Condition Value for our newly created table 968 in the respective condition record but it didn’t pull this value because Access sequence find the price as per the priority list maintain in it, When it finds the proper condition

value it returns the value to condition type and does not move further & condition type to calculation schema.

Hence, as per the Priority given it found value in Condition Table 17 first in which Material info record was maintained for the material.

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Let us see the execution of pricing Procedure of Purchase order in above example using the flowchart.

Calculation Schema CCP001

Condition Type PB00

  e   c    i   r    P   s   s   o   r    G    d   n    i    F

Vendor Schema Group CP = 100455

Purchase Org. Schema Group CCP1= 1000

  o    f   n    I    (    d   n   u    )   o    d    F   r   e  o   c  c    i   r   e    R    P

Access Sequence  Sequence 

PB01 

Condition

Condition

Table 16 Table  16

Table 17 Table  17

Price Picking Priority of Access Sequence

Flowchart for Pricing Procedure The PB01 searched the gross price as per the sequence where it didn’t find the price in contract item (Condition table 16) moved to next sequence where the price is maintained in material info record. The Gross price returns the value to condition type and does not move further & condition type to calculation schema. Therefore, price in Condition Table 968 not taken.

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SAP Career Guidance  2020  2020  Note:

 

•

Let us take an example for better understanding if we want any additional Condition Type:

Suppose we need freight charge to be maintained for lot pieces in PO then following steps can be done. 1.  Search for the Condition Type – CUFR 2.  Assign the Condition type CUFR to Access Sequence e.g. 0002 3.  Maintain the new Condition table in access sequence E.g. Condition Table – 044 (for Vendor) 4.  Using T code MEK1 MEK1  enter the condition value (Price for pieces) for Condition Table i.e. 044 ( for Vendor). 5.  Assign the Condition Types to Calculation Schema. E.g. CUFR to RM0000 6.  Assign Vendor & Purchase Organization schema group to Calculation Schema. 7.  Create the PO then the value will be trigger in the condition type of item level.  

•

Condition Value is necessary to trigger the price in the condition type.

Summary Recap: To learn about the Pricing Procedure in Purchase order, we created the new Condition table & assigned the value in its field & observed from which price is triggered from Condition table. Also we saw Customization of the Pricing Procedure.

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Day 8: Special Procurement: In Standard procurement process, we buy the material from the vendors and after production process we deliver it to customer. Once deliver is done then goods belongs to the Customer. In case of special procurement process, the goods are not necessarily delivered from the vendor to the customers. The following are the Special Procurement used in Material Management module:          

• • • • •

Consignment Subcontracting Returnable Transport Packaging Pipeline Handling Stock Transfer Order

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. Goods Receipt for Vendor Consignment Goods - MIGO

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

Consignment flow chart

-Where Store is handled by Sales Organization of the Company.

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SAP Career Guidance  2020  2020  To create the Consignment Process following steps involved as follows: 1.  Create Purchase info record for Vendor/Material combination – ME11 ME11   (We have to create material master in MRP2 special procure type – optional) 2.  Create PO Item Category K – ME21N ME21N   3.  Post Goods Receipt in MIGO Transaction. Referring the flow chart after this step we have two options either sale from consignment stock or Transfer Posting to own stock. If we want to transfer posting to own stock then we have to proceed by 4.  Transfer Posting from Consignment to own Stock – MB1B MB1B   5.  Create Invoice using MRKO MRKO Transaction.  Transaction.

Step 1: Create Purchase Info Record T Code: ME11

Create the Consignment type info record as shown in above & below figure where we maintained the price of the material. Note:: Always mention the Tax Code in Purchase Info Record Note

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Step 2: Create Consignment PO T Code: ME21N As Shown in the below figure create the PO & select the item Category as Consignment type “K”.  “K”. 

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Standard PO created under the number 4500018547 

Step 3: Post the Goods Receipt T Code: MIGO

Material document 1202 posted

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SAP Career Guidance  2020  2020  As we observe in above figure the Goods Receipt the movement type as 101K. Now we will see the material in stock overview using T code: MMBE We observe in the below figure that the stock is under the Vendor Consignment of Quantity 12000Kg is added.

As per the requirement of the Organization we can either transfer the material from warehouse to store & sale it directly by Sales Organization or we can convert the material into the own stock & Payment is done simultaneously, Normally we convert to own stock if any production process is to be done.

For the above Example we are assuming that the material is require to undergo some in-house, hence we will convert the consignment to own stock as shown in the flow chart.

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SAP Career Guidance  2020  2020  Step 4: Transfer Posting Consignment to own Stock T Code: MB1B Note:: We can also do Transfer posting from T Code: MIGO Note MIGO..

As we are Transfer Posting Consignment to own it is given by movement type as 411K as shown in the above figure

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Document 4900003155 posted

We have convert 8000kg to own stock from Consignment Stock. So let’s observe the stock overview of the Material using T Code MMBE

We observe 8000kg is converted into the unrestricted stock from vendor consignment to storage location 0001.

Step 5: Create Invoice T Code: MRKO We are not creating an invoice using MIRO transaction for consignment goods. Instead, liabilities are settled in MRKO MRKO transaction  transaction for the appropriate period.

Steps to execute MRKO

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SAP Career Guidance  2020  2020  1)  Enter the Company Code, Vendor/ Plant and tick display & withdrawal not settle option. Click on Execute this will display the Info Status. 2)  Go back to initial screen choose settle instead of display & Click on Execute. 3)  Once again go back to and choose display document, and choose to see settled withdrawal. You can see the status is now settled

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SAP Career Guidance  2020  2020  Alternative Step 4: Transfer Posting Using MIGO We will Transfer Consignment to own stock of 2000kg & observe the output.

Material document 4900003156 posted Click on the FI Document  Account entries & observe the document for account entries.  –

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SAP Career Guidance  2020  2020  Accounting Entries for Consignment: In Consignment we observe that in step 3 posting the Goods Receipt we does not have any accounting entries as we are not paying the vendor at that time. While in other case when we transfer the Consignment stock to own stock (Step 4) we have to pay the vendor for respective stock then we have the following entries in system as observed in above figure. For Accounting lets understand term transaction key. Transaction Key: The ‘Transaction Keys’ are pre-defined pre-defined in the system to enable transaction postings in Inventory Management and Accounting (Invoice Verification). For each of the movement types in MM, there is a value string that stores these possible transactions. The Below Account entries generated when we pay the vendor for consignment stock I.e. Transfer posting from Consignment to own with movement type 411K. 411K.   Transaction Key KON BSX KBS Bank Account

MIGO (Goods Receipt) Credit (-) Debit (+)

MRKO (Invoice Settlement) Debit (+)

Payment

Credit (-)

Debit (+) Credit (-)

Where, KON – Consignment Payable BSX – Inventory KBS – Vendor Account. The outcome is debit to Vendor Account & Credit to Bank account. Note: If any price difference seen in Info record & Standard price (Material master) Note: then Transaction Key AKO will generate. The Complete detail will be seen in Account determination & Invoice Verification. (Refer Page No.168 for Automatic Account determination & Page No. 192 for invoice verification)

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Day9: Subcontracting: In subcontracting, you give components to a vendor from which a product is produced. The product is then ordered by your company through a purchase order. The components required by the vendor to manufacture the ordered product are imported in the purchase order through the BoM (Bill of Materials), and they are provided to the vendor. After the contractor has produced the finished product, we can post the goods receipt. Steps to perform subcontracting: subcontracting: 1.  Create Subcontracting info record (optional) – ME11 ME11   & Create BOM – CS01 CS01   2.  Create Subcontracting PO (Item category L) – ME21N ME21N   3.  Create transfer posting to issue the Sub components – ME2O ME2O   4.  Goods Receipt for finished product – MIGO MIGO   5.  Invoice Receipt for the services performed – MIRO MIRO   Step 1: Create BOM for Assembly & Child Part T Code: CS01

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As per the above figure 3839 – Magnetic Plug & 3044 – Breather Cap are the child part for 10015048 – Oil Drain Plug, hence we can represent it by flow chart. To complete the assembly we require the one each child part to complete. Creating BOM for material 10015048 

Drain Plug Part No.10015048 No.10015048

Magnetic Plug

Magnet

Part No.3839

Part No.3840

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Step 2: Create Subcontracting PO (Item category L) T Code: ME21N Standard PO created under the number 4500018550 

Note: Components should be entered manually for first procurement after that it will Note: take automatic.

The PO is created for assemble part 10015048 & Child part BOM is also exploded as shown in above figure.

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SAP Career Guidance  2020  2020  Step 3: Create Transfer Posting to issue Sub Component T Code: ME2O / MIGO

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In this step we provide the child part to vendor for assembly purpose where we observe in the above figure that stock is already transfer to the vendor.

Now we will observe the movement type for the for the sub assembly part which provided to the vendor using T Code: MB51

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We observe the movement type taken by the Sub assembly part as 541 (issuing goods to vendor) as shown in above figure. Step 4: Goods Receipt for finished product: T Code: MIGO  MIGO 

Material document 1207 posted

As we observe in the above figure the movement type taken as the goods receipt is done as fallows

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SAP Career Guidance  2020  2020  Oil Drain Plug (Assembly part) – 101+ Plug & Magnet (Child Part) – 543- (Consumption (Consumption of material provided to vendor)

In Stock Overview (T Code: MMBE MMBE)) for Assembly part no.10015048 1000nos posted to unrestricted stock as we observe in below figure

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SAP Career Guidance  2020  2020  Step 5: Invoice Receipt for Service performed T Code: MIRO & MIR4 (to display the Invoice document)

Document no. 5200000250 created 

As we observe in above figure only Transaction Key KBS - & WRX + posted. Note: Problem: Suppose we have a scenario such that in Subcontracting process we had given raw material A of A of 100 100  kg kg to  to make finish product B, B, But when the Vendor Supply the Product B it consumes 95kg 95kg and  and remaining 5kg 5kg occur  occur as rejection from the vendor. The 5kg rejected material can be sent to scrap, so how to manage in the system?

Solution: While Creating a BOM for the Finished Material B, B, maintain the Scrap Quantity Material C as C as a negative in the component list. As a result while doing the GR for the finished material B in MIGO MIGO,, the scrap material C will be generated as -5kg & movement type as 545 O+ (This will make the material available in material provided to vendor stock) Then do the GR with 542 movement type (Reversal of 541- goods issue movement type) to get the scrap material into plant material.

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SAP Career Guidance  2020  2020  Accounting Entries for Subcontracting: Accounting entries will be posted at the time of Goods Receipt. As we seen in the above example the finished goods will be received with 101 and the component will be consumed with 543 movement type. Referring to previous example let see the accounting document in recent GR no.1207 as this was assembly process we have two account entries for Child part and the assembly part as shown in below screenshot for MIGO.

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SAP Career Guidance  2020  2020  The above figure shows the child part accounting entry with their transaction key and their respective amount.

The Above figure represents the accounting entries of the finished assembly part with their transaction key and their respective amount. Let a summary of transaction key after each process of above example Trans. Key

Movement Type

Description

BSX

541 (Issuing goods to

Unfinished products Raw Material

Vendor for child part)

Consumption (Plug) Unfinished products Raw Material Consumption (Magnet) Finished goods inventory GR/IR Change in subcontracting Stock

GBB (VBO) BSX GBB (VBO) BSX WRX BSV

FRL KBS

101 & 543 (Goods Receipt for finish product)

Subcontracting Charges Vendor account

MIGO (Goods Receipt) Credit (-)

MRKO (Invoice Settlement)

Payment

Debit (+)

Credit(-) Debit(+)

Debit(+) Credit(-) Credit(-)

Debit(+)

Debit(+) Credit(-)

Debit(+)

Bank a/c

Bank account

Credit(-)

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Day 10: Returnable Transport Packaging (RTP): It is the process in which the user returns the packaging material to vendor once utilizes the material through the transporting. The material type for Returnable Packaging is LEIH LEIH   Steps to create Returnable Transport Packaging (RTP)1.  Create Material for Returnable Packaging - MM01 MM01   2.  Create PO for Material which Returnable Packing material to be used – ME21N ME21N   3.  Create Goods Receipt for Material with including Returnable packaging – MIGO MIGO   4.  Return the Packaging material back to vendor - MIGO MIGO   5.  Invoice verification – MIRO MIRO   Scenario: We will order SS-410 coil of 500kg, in which is sent through the pallets of capacity of 20kg each i.e. 25pallets X 20kg = 500kg. After receiving the material we will return the pallets to the respective vendor. Here Pallets = Returnable Transport Packaging Steps to Create RTP process: Step 1: Create Material for RTP of material type LEIH (Returnable Packaging) T Code: MM01

Material PALLETS created 

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Step 2: Create  Create PO for Material which Returnable Packing material to be used T Code: ME21N

Standard PO created under the number 4500018574 

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SAP Career Guidance  2020  2020  Step 3: Create Goods Receipt for received material from Vendor with Returnable Packaging material - MIGO

Material document 1217 posted  As shown in the above figure we posted the GR for SS-410 of 500kg material then by clicking on Transport equipment (highlighted in red mark) we get to add the packaging material which is dispatched by the vendor with the ordered material.

The Packaging Material takes the movement type 501 M (GI receipt to RTP) Considering the above example, The Vendor 100537 sent SS-410 Coil of 500kg with loading 20kg each in one pallet which makes 25 no. of pallet. Note: The RTP (Returnable Transport Packaging) is not included in PO because we Note: are not paying for this material as we not consuming, which later are return to the Vendor. After the GR the Packaging material is stored in storage location by RT packaging as shown in below figure (We can view by T Code: MMBE MMBE))

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Step 4: Return the Packing material back to Vendor

As we are not paying for the packaging material to vendor, hence it must be return back to the respective vendor

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Material document 4900003169 posted

Referring the above figure in order to return the Packaging material to vendor Go to “Goods receipt “Goods receipt – other” option & select the movement type as 502 M. Fill the item level detail such as Material, Quantity, Where & Partner (Vendor). Where, 502 M – Reverse receipt to RTP Now the Packaging material is returned to the vendor we see through the Stock overview by T Code: MMBE

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SAP Career Guidance  2020  2020  The above figure confirms all the Packaging material is return to vendors. Hence, there will not be any accounting entries as there is no payment. Step 5: Invoice Verification T Code: MIRO The Payment will be only done for the material & not for RTP Document no. 5200000253 created

Now we can see the Invoice Document entries using T Code: MIR4

The Accounting entries is seen in the below figure for Invoice Verification (MIRO).

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SAP Career Guidance  2020  2020  Accounting Entries for Returnable Transport Packaging (RTP): From the Accounting view for MIGO, MIRO & the further we get the table as: The Detail will be seen in Account Determination & Invoice Verification. Transaction Key

Description

WRX BSX KBS Bank Account

GR/IR Clearing Inventory Posting Vendor Account

MIGO (Goods Receipt) Credit (-) Debit (+)

MRKO (Invoice Settlement) Debit (+)

Payment

Credit (-)

Debit (+) Credit (-)

Pipeline Handling: In pipeline handling, company not need to order store the material concerned. It is readythe available as does and when required via aorpipeline (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. Steps to create the Pipeline 1.  Create a Material Master for Pipeline Material Type (PIPE) – MM01 MM01   2.  Create PIR of Category Pipeline (Provided Vendor) – ME11 ME11   3.  Create Goods Issue Using Movement Type 201 P – MIGO MIGO   4.  Create Invoice - MRKO MRKO   Step 1: Create Material Master for Pipeline Material type T Code: MM01

Material 3868 created 

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SAP Career Guidance  2020  2020  Step 2: Create PIR of category pipeline T Code: ME11

Purchasing info record 5300007584 1000 P 1000 created 

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SAP Career Guidance  2020  2020  Step 3: Create Goods Issue using Movement type 201 P T Code: MIGO

Material document 4900003174 posted

As highlighted in the above figure select the movement type as 201 P (Consumption P (Consumption for cost center from pipeline) and enter the item level entries. Now we will observe the accounting entries for above GR.

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SAP Career Guidance  2020  2020  Step 4: Create Invoice T Code: MRKO

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SAP Career Guidance  2020  2020  Now we will observe the accounting entries for Invoice Using T Code: MIR4

Note: In the above figure VST – Input tax came as we maintained V1 as tax code Note: In which is 15%. The Transaction key KBS KBS which  which is debited in invoice is the transaction key KON of the GR which was credited. The Account Summary table for Pipeline after payment we have Transaction Key

Description

KON (KBS – Post Invoice) GBB

Accounts Payable

KBS Bank Account

Raw material Consumption Vendor account

MIGO (Goods Receipt) Credit (-)

MRKO (Invoice Settlement) Debit (+)

Payment

Credit (-)

Debit (+) Credit (-)

Debit (+)

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Day 11: Stock Transport Order: In Stock Transfer process, Goods are supplied and Procured within a company. One Plant (issuing plant) orders the goods from another plant (receiving plant). For STO we are using “UB” as a document type in PO We can do supply the goods from one plant to another plant two method namely by 1)  Transfer posting of material plant to plant pla nt by one-step/ two-step method. (Refer Page No.146  No.146  for Transfer posting details) 2)  Stock Transfer between two plants with & without delivery. Let find the difference between STO & Transfer Posting: Stock Transfer Order Transfer Posting 1.  This Process is done through 1.  This process is done through T MIGO   MIGO Code: ME21N ME21N by  by selecting the Document type as UB UB.. 2.  Separate Pricing procedure is available for STO.

2.  We cannot maintain any conditions.

3.  Through STO delivery & billing can be done.

3.  We can only transfer the goods.

4.  This process is generally preferred when client has plants in different cities or states and when client requires to monitor details like tax related , conditions related etc.

4.  This process is generally preferred when plants are in same city or client doesn’t want to monitor freight detail etc.

Now we will see the example for Stock Transport Order (STO) for Delivery & without delivery from plant to plant with same company code (Intra STO) ➢  Steps to create STO (with delivery) plant delivery) plant to plant having same company code. 1.  Create SD-MM configuration for respective STO (SD team) - SPRO SPRO   2.  Create PO for STO (Doc Ty – UB) – ME21N ME21N  

3.  Create Outbound delivery(OBD) for supplying plant  VL10D VL10D (SD  (SD Team) 4.  Create Post Goods Issue (PGI) for supplying plant – VL02N (SD Team) 5.  Post Goods Receipt for receiving plant - MIGO MIGO  

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SAP Career Guidance  2020  2020  Step 1: Create SD-MM configuration for respective STO T Code: SPRO This is done by the sales & distribution team for the respective supplying plant & the receiving plant. As we observe in the below figure the configuration is done in the for STO in the Purchasing – Purchase Order view, the highlighted highligh ted points is set by the SD team which contains data like Shipping Data, Delivery Type Etc.

Step 2: Create PO for STO Doc type. T Code: ME21N Before creating the PO let’s get some idea about the example exam ple what  what we are going to execute. Example: We are transferring the material INTRASTOMATERIAL01 INTRASTOMATERIAL01 from  from plant 1000 to Plant 12000 using STO (PO Doc Type – UB). Hence we have the data as,

Material = INTRASTOMATERIAL01 Supplying Plant = 1000

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SAP Career Guidance  2020  2020  Receiving Plant = 1200 Qty. to Transfer = 70nos. Now, let the Stock Overview of the material – T Code – MMBE

As we observe in above we have 250nos in Plant 1000 Hamburg & 130nos in Plant 1200 Dresden. We are now going to transfer 70nos from plant 1000 to Plant 1200, So we will make the PO for STO Doc type – UB. UB.   Below figure shows the STO doc type PO in which Shipping Tab from the Item level should be required mandatory for the STO procurement type. If it doesn’t appear then we have to contact Sales and Distribution team to debug the error in configuration.

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S.T.O created under the number 4500018592 

Step 3: Create outbound delivery (OBD) for supplying plant T Code: VL10D

This Step is done by the Sales & Distribution team in which they create outbound delivery process.

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As per the above figure for OBD we have to flag the mention material area and click on the background we get the following output below which shows the green indicator which means that OBD is posted.

Step 4: Create Post Goods Issue (PGI) for supplying plant T Code: VL02N This step is also done by the Sales & distribution team where the option to pick the material fully or partially is available. This transaction also manage the if delivery qty. is more than our stock qty. The Movement type takes as 647 while doing the PGI (Post Goods Issue)

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Replenishment dlv. 80017680 has been saved

Step 5: Post Goods Receipt for receiving plant

T Code: MIGO After receiving the material for the supplying plant we post the goods receipt as 101 movement type. The Below figure shows that material INTRASTOMATERIAL01 is transferred from Plant Hamburg to Plant Dresden to their respective location.

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The above figure shows the stock overview where the changes for the material are highlighted as per the STO process.

No accounting entries are created only stock is credited credi ted & debited

respectively i.e. BSX as shown in above figure.

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SAP Career Guidance  2020  2020  Note:  Note:  Steps to Create STO for without delivery: 1)  Create MM-SD configuration for respective STO - SPRO SPRO   2)  Create STO – PO of doc type UB for supplying plant – ME21N ME21N   3)  Create Goods Issue for 351- movement type for supplying plant - MIGO MIGO   4)  Post Goods Receipt for receiving Plant – MIGO MIGO   There are no billings involved as both Supplying and receiving plant belongs to same company code. The Billing only comes when we are transferring the goods with different company codes.

Summary Recap: In this Session we came across different types of special procurement and their accounting entries as per the movement types. We also saw the various transaction key k ey as per the movement type is posted which we will see in the Automatic Account determination & Invoice Verification topic.

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Day 12:

Service Management: Besides procurement of goods, an organization may occasionally require some kind of services. Such services include small maintenance tasks such as changing the lights, painting, and housekeeping. These services are carried out by external contractors and hence the whole process of procurement of services is known as service management. Service management deals with the following terms−    Service Master Record

•

  Service Purchase Order

•

  Service Entry Sheet

•

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SAP Career Guidance  2020  2020  Service Master Record: T code – AC03.

Service Purchase Order: T Code – ME21N.

Note: Put Validity Period in additional data tab & put Delivery date as end date of validity. For Service select Account assignment category – K Item category – D

Standard PO created under the number 4500018412 

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Service Entry sheet: T Code: ML81N System stores the service that has been procured as a record in a sheet called as service entry sheet. Instead of Goods Receipt we have this service entry sheet

Entry sheet 100000556 saved 

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As in below image we can see the service entry in the PO history.

Summary Recap: We saw the Service related activity for the planned type where we maintain new master & the entry sheet is made as per the PO made.

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Day 13: Inventory Management: The Inventory Management deals with the management of stock, either value (Accounting) or quantity basis. It includes Planning, entry and keeping record of all the movements of goods. Goods movement creates a document that updates all the stock quantity and value in the in the inventory that is known as material document. Material Document shows the movement type & accounting document describes the type of stock posting in the inventory. We have the following types Inventory Management where all the transaction done through MIGO MIGO   1.  Goods Receipt 2.  Goods Issue 3.  Transfer Posting We will take an example of some movement type for different Inventory Management and observe the Stock overview & respective accounting entries as per the movement type.

1. Goods Receipt: T Code: MIGO 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 Exercise: In order to understand the various movement types we will procure the material with the vendor in the system with some of the movement type in Goods receipt. Material – 4196 Vendor - 100537

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101 – Goods receive through Purchase Order.

Let’s observe the Stock Overview of material 4196 before Goods Receipt as 101 movement type

We see the stock is in On-Order Stock of 5000nos before Goods receipt that means the material is been ordered.

As the material received then we post the goods receipt which takes the movement type as 101 as shown in above figure.

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SAP Career Guidance  2020  2020  Accounting entries for movement type 01 as shown below

Stock changed from on-order stock to unrestricted as shown in below in which can be used in further process.

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102 – Reversal of GR.

Referring the above example we can reverse the Goods receipt by movement type 102. Suppose let reverse the entry for 2000nos of 5000nos.

Material document 1242 posted

After reversing the 2000nos from 5000nos means 2000nos quantity is converted to on order stock as per our mention PO.

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SAP Career Guidance  2020  2020  The account entries will be reversed as we reversed the GR as shown in below figure.

As per our two movement type we have 2000nos which is not accepted as we reversed the GR, means we have directly return the stock to the vendor & the vendor will have to dispatch another 2000nos to complete the PO order.

The summary for account entries for above movement type as Transaction Key BSX WRX

101 – GR goods receipt Debit(+) Credit(-)

102 – reversal of GR Credit(-) Debit(+)

Note: Instead of 102 movement type is normally done when some error is done Note: while posting the GR. In case if we have to return some material due to some quality issue to vendor we can have 122 movement type.

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SAP Career Guidance  2020  2020  Origin Acceptance: Acceptance at origin allows acceptance of goods at the supplier facility before shipment to destination. The Purchaser acknowledges acceptance but does not perform the final goods receipt until the goods arrive at the final destination. The system shows that the items are IN TRANSIT to their final destination and prevents them from being available for use. When goods are arrived in respective destination after the final goods receipt is done, the item changes the status IN TRANSIT to Available for use. Example: We will take same example & will executive in the system It is the two-step process in which the movement is given by 107 & 109 Where, 107  – Goods receipt to valuated blocked stock. 107 109  – Goods receipt from valuated blocked stock. 109 Standard PO created under the number 4500018618

Now the PO has made for 10000nos to vendor & will accept the material at origin using movement type 107 in Goods Receipt (MIGO (MIGO))

Material document 1244 posted 

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SAP Career Guidance  2020  2020  Now we will see the Stock overview of the material using T Code: MMBE

We observe that the stock is placed in On-order as well as in transit stock where the ownership is already taken by the purchaser. The accounting entries generated are same as that of the goods receipt done for unrestricted stock.

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SAP Career Guidance  2020  2020  After receiving the respective stock we have to do good receipt with movement type as 109 (Goods receipt from valuated blocked stock)

Material document 1245 posted

As we observe in above figure 10000nos is added to the unrestricted stock. There will not be any accounting entries as payment done before in 107 movement type.

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SAP Career Guidance  2020  2020  Note: We saw the Goods receipt example in RTP process where we used 501 & 502 movement type. You refer Page No. 111 for 111 for more details. In Some case we get some quantity more as compare to PO quantity in order to put this quantity in system we can maintain over tolerance (for extra material) or under tolerance (for less material) in delivery tab present in item level as shown in below figure.

Day 14: 2. Goods Issue: T Code: MIGO 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. Now we have gone through the Pipeline procurement where we used movement type 201 P P - Consumption for cost center from pipeline. For pipeline procurement refer Page No. 117 for 117 for more detail. In subcontracting procurement we supplied the sub assembly parts to the vendors using 541 541 movement  movement type. For Subcontracting procurement for goods issue refer Page No. 104 for 104 for more detail. Also in Stock Transfer Order (STO) with delivery type, we posted Goods Issue using VL02N for Outbound delivery which takes 647 647 movement  movement type. For STO refer Page No. 126 for 126 for more detail.

Now let us some Goods issue movement type, their applications and respective accounting entries.

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551 – Goods Issue for Scrapping

In this movement type we will scrap the rejected material from the unrestricted stock.

Material document 4900003217 posted

In above figure we can see that we have rejected 1000nos from the unrestricted stock which earlier was 13000nos now it will become 12000nos. By using T Code: MMBE we can have Stock Overview for the above goods issue.

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SAP Career Guidance  2020  2020  Accounting entries for above transaction is shown below

We observe that BSX is credited & GBB (Offset entry for inventory posting) is debited when we scrap the material from the unrestricted stock. The GL account for BSX – 79000 & GBB - 400020

Day 15: 3. Transfer Posting: T Code: MIGO Transfer posting deals with transferring of goods from one place to other for the business requirements. We have seen the transfer posting in Consignment Process in which we have transferred the vendor owned stock to company (purchaser) own stock using movement type 411 K Refer Page No. 96 for consignment process for more details. In this type of Inventory management we will go through the example such as transfer posting from one plant to another plant by one step as well as two step method. In the STO process which is similar to transfer process discussed the difference between transfer posting & STO. Refer Page No.122 for No.122 for STO & Transfer Posting difference.

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301 – Plant to Plant transfer in one step

The supplying plant will transfer the goods to receiving plant and posting goods movement accordingly by supplying plant in one step. We will take Material 4196 & transfer some quantity from plant 1000 to Plant 1100 Note: We have to ensure that the both transferring plants should have same master data.

Before transferring the material to plant 1000 to 1100 lets us see the present stock in both plants.

Plant 1000 has 12000nos & Plant 1100 has 4000nos. We will transfer 3000nos from Plant 1000 to Plant 1100.

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Material document 4900003263 posted 

The Accounting Entries for this 301 movement type we get as

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Where BSX BSX is  is inventory posting which supplying plant gets credited & receiving plant gets debited. Here Transaction Key AUM is generated due to the price difference occurred in material master of both the plants Let us confirm the stock transferred by T Code: MMBE MMBE  

We observe the stock is transferred to Plant 1000 to Plant 1100.

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303 & 305 – Plant to Plant transfer in two step

Where 303 – Transfer posting plant to plant - Remove from Storage 305 – Transfer posting plant to plant - Place in storage In this type the Supplying plant will transfer the goods to the receiving plant in which they transferred get posted in Transit in order stock and when the receiving plant receives the goods in plant then receiver will post the other movement to move from in transit stock to plant stock. Supplying Plant will transfer from 303 movement type Receiving Plant will receive from 305 movement type We will Transfer 2000nos from Plant 1000 to Plant 1100 in two steps. Let us see the stock overview before transferring the Stock using T Code: MMBE

We will transfer 2000nos from plant 1000 using movement type 303 303  

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Material document 4900003266 posted 

As we observe in above figure the stock is stored in the Transit stock of 2000nos in the stock overview.

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SAP Career Guidance  2020  2020  Accounting Entries is same as we observed in one step transfer posting as shown below

Now as per the two step transfer posting once they seen the stock in their they will convert Transit to unrestricted stock using 305 movement type in MIGO MIGO (Goods  (Goods Receipt)

Material document 4900003267 posted

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SAP Career Guidance  2020  2020  The Transit Stock gets transfer to the receiving plant storage location when we use 305 movement type as shown in below figure where 2000nos (7000 + 2000) is already transfer to Plant 1100 & 0001 storage location from transit stock.

There will not accounting entries in movement type 305 as it is already transfer through 303 movement type. Note: We can do the transfer posting from one Storage location to another Storage Note: location using 311 – one Step & 313-315 – Two steps. The process is similar to the above plant to plant transfer. Configuration Path for GR, GI & TP as shown in below figure

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SAP Career Guidance  2020  2020  Movement Types: Goods Movement Type is 3 digital identifying the type of Good movement. The movement type is very important, actually it controls the adjustment of inventories, and GL related account and even the screen layout for MIGO transaction. We had gone through so many movement types in various examples which are common in the system. The reference table for movement is T156 (SE16N table – will discuss later) As movement type is the 3 digit numeric number we will make list of some movement type as per series & their application 1XX Series for Goods Receipt: Note: Anything Cancellation will be +1 in most cases  Note: Anything cases (e.g. for 101 cancellation is 101 + 1 = 102) Movement type 101 103 105 107 109 122 124 161

Description Goods receipt for Purchase Order Goods receipt into GR blocked stock Release from the GR blocked stock for the purchase order Goods receipt to valuated blocked stock Goods receipt from valuated blocked stock Return deliveries to vendor Return delivery to vendor from GR blocked stock Returns for purchase order

2XX Series for Goods Issue: Movement type 201 221 251 261 281 291

Description Goods Goods Goods Goods Goods Goods

issue issue issue issue issue issue

for for for for for for

a cost center a project sale (without sales order) an order a network any account assignment

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SAP Career Guidance  2020  2020  3XX Series for Transfer Posting: Movement type 301 303 305 309 311 313

Description

321 323 325 331

Plant to plant transfer Transfer posting plant in to one plantstep - Remove from Storage Transfer posting plant to plant - Place in storage Transfer postings from material to material Transfer of storage location to storage location in one step Transfer of storage location to storage location in two steps : Remove from Storage Transfer of storage location to storage location in two steps : Place in storage Transfer of inspection stock : unrestricted-use unrestricted -use stock Transfer of storage location to storage location : inspection stock Transfer of storage location to storage location : blocked stock Sample from the inspection stock

333 335 341 343 349 351

Sample from the unrestricted-use unrestricted- use stock Sample from the blocked stock Status change of a batch (unrestricted-use (unrestrict ed-use to restricted) Transfer of blocked stock : unrestricted-use unrestricted -use stock Transfer of blocked stock : inspection stock Goods issue for a stock transport order (without shipping)

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4XX Series for Special Stock, Transfer Stock and Blocked Stock Return: Movement

Description

type 411 413 451 453 455 457 459

Transfer of special stock to own stock Transfer posting to sales order stock Returns from customer (without shipping) Transfer of blocked stock returns to unrestricted-use unrestricte d-use stock Returns stock transfer Transfer of blocked stock returns to inspection stock Transfer of blocked stock returns to blocked stock

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5XX Series for Special GR/GI: Movement type

Description

501 503 505 521 523 525 531 541 543 545 551 553

Goods receipt without purchase order : unrestricted-use unrestricte d-use stock Goods receipt without purchase order : stock in quality inspection Goods receipt without purchase order : blocked stock Goods receipt without order : unrestricted-use unrestricte d-use stock Goods receipt without order : inspection stock Goods receipt without order : blocked stock Goods receipt of by-products from order Transfer of unrestricted-use unrestricted -use stock to subcontracting stock Consumption from subcontracting stock Goods receipt of by-products from subcontracting subcontractin g Scrapping from unrestricted-use unrestricted- use stock Scrapping from inspection stock

555 557 561 563 565

Scrapping from blocked stock Issue from stock in transit (adjustment posting) Initial entry of stock balances : unrestricted-use unrestricted- use stock Initial entry of stock balances : quality inspection Initial entry of stock balances : blocked stock

6XX Series for Sales: Movement type 601 603 605 641 643 645 647

Description Goods issue for delivery Goods issue for a stock transport order (shipping) with additional item Goods receipt for a stock transport order (shipping) (shipping) with additional item Goods issue for a stock transport order (shipping) Goods issue for a cross-company-code cross-company- code stock transport order Goods issue for a cross-company-code cross-company- code stock transport order performed in one step (shipping) Goods issue for a stock transport order performed in one step (shipping)

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7XX Series for Physical Inventory: (Refer Page No.157 for details) Movement type 701 702 703 704 707 708 711 713 715 717

Description Goods receipt for unrestricted unrestricted stock Goods issue for unrestricted stock Goods receipt for quality inspection stock Goods issue for quality inspection stock Goods receipt for blocked stock Goods Issue for blocked stock Inventory difference in unrestricted-use unrestricte d-use stock (LE-WM) Inventory difference in quality inspection stock (MM-IM) Inventory difference for returns Inventory difference in blocked stock (LE-WM)

Summary Recap: In this we came across various movement types and their application as well as impact on the stock. In Inventory management there where different accounting entries are been posted as per the movement type and their respective GL account is also been posted.

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Day 16: 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. 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 & Note block stock types. 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.

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SAP Career Guidance  2020  2020  Steps to perform Physical inventory: 1.  Create Physical Inventory – MI01 MI01   Monitor Stock Overview - MMBE MMBE   2.  Enter count for Physical Inventory – MI04 MI04   List of the Physical Inventory difference – MI20 MI20   3.  Post Physical Inventory – MI07 MI07   Create Physical Inventory Document

Enter Counting Result

Post the Differences

MI04 MI04  - Execution

MI07 – Post MI07  Processing

MI01 MI01  - Preparation

The above diagram represents the common steps for doing physical inventory. Step 1: Create Physical Inventory T Code: MI01

The above figure shows the initial screen of the physical inventory in which we have

to enter the Plant & storage location Let us see the other option in the screen

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SAP Career Guidance  2020  2020  Posting Block: We are marking posting block indicator such that there will be no inventory postings done in SAP before completing this physical inventory for this material. If the physical inventory is taking 10 days, then up to 10 days there will be no postings done in SAP. Freeze book inventory: If we select this option, then system will allow for postings in SAP, but the physical inventory number will be frozen or locked with that number such that there will be no difference in number of counts. Most of the companies will prefer this option because we don’t know how much time it may take for counting.

Physical inventory document 100000170 created

When we click enter, the next screen shows the material need to be entered in which the physical inventory is to be done (can enter as many as material) also we can have the respective material stock type for Physical inventory as shown in the above figure. To understand the concept we will take two materials 4196 & 3147 of stock type as unrestricted (refer above figure). Using these materials we will do the further steps for physical Inventory. Note: We can print the above physical inventory document to give the information to the respective department about the physical inventory using T Code: MI21.

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SAP Career Guidance  2020  2020  To Monitor Stock Overview – T Code: MMBE

Referring to the above figure we have Material 3147 = 20750KG & Material 4196 = 7000EA is present in unrestricted unrestricted stock. Note: This step is only used to see the stock overview; we calculate the stock

physically as per the department wise in the company.

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SAP Career Guidance  2020  2020  Step 2: Enter count for physical inventory T Code: MI04 Once we get the count from the warehouse person, then the count needs to be entered in the system as per the material through MI04. Update the physical inventory number and execute then it will show the material then update the quantity in quantity field and save the screen.

The initial screen we have to enter the Document number & Fiscal year. Note: By Note:  By Maintaining the Variance in % will give the warning message of the difference between the previous stock quantities and counted quantity. E.g. if we maintain variance as 10% & we had 1000nos & we enter 1100 then it will give warning message.

Count entered for phys. inv. doc. 100000170 

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SAP Career Guidance  2020  2020  As we enter the screen we have get the above screen in which have to enter the inventory count of the material and save it. To find List of the Physical Inventory difference - T Code: MI20 We can have a list of inventory difference

As we observe that there is difference in the inventory because we posted the exact quantity as stock. If we satisfy with this data then we can go further and post the physical inventory in next step or else we can recount the material and reenter the count using MI05 MI05..

Step 3: Post Physical Inventory T Code: MI07

Note: You can use the threshold value to enter the maximum allowed differences value in local currency. If you don't want a limit leave this field blank. In order for

this to work, materials need to have the standard or variable price maintained.

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Phys. inventory document 100000170 posted without differences

By above example there were not any difference found while inventory. Scenario: Now in the next example we will have the inventory difference of the above material and observe the inventory posting and their respective accounting entries. In this example the stock overview is same as there were no posting in previous due to physical inventory.

Step 1: Create physical Inventory document (Preparation) T Code: MI01 Physical inventory document 100000172 created Step 2: Enter counting results (Execution) T Code: MI04

Count entered for phys. inv. doc. 100000172

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SAP Career Guidance  2020  2020  The Count we have entered is not exact as the present stock of the materials Step 3: Post the differences T Code: MI07

Diffs in phys. inv. doc. 100000172 posted with m. doc. 4900003303 While posting the Inventory we see the difference for material 3147 it is 250 kg short whereas for material 4196 we get 1000nos more. As the result the stock gets updated as per our posting difference for physical inventory and respective goods receipt & goods issue is generated. We can view this data and their respecting accounting entries using T Code: MB03 MB03  

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SAP Career Guidance  2020  2020  We Observe in above figure that the GR is posted for material 4196 material in which we obtain 1000nos more, for material 3147 GI is posted as we got 250kg less. The following table shows the movement type generated for other stock type due to difference. Movement type 701 702 703 704 707 708

Description Goods Goods Goods Goods Goods Goods

receipt for unrestricted unrestricted stock issue for unrestricted stock receipt for quality inspection stock issue for quality inspection stock receipt for blocked stock Issue for blocked stock

The Above figure shows the accounting entries generated due to physical inventory difference in the stock where we see Inventory Posting BSX is credited as well as debited for the respected material, GBB is the offsetting entries in the stock postings.

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SAP Career Guidance  2020  2020  Note: Path to Configure Physical Inventory

We can configure the physical inventory & can allot the number ranges as per the business requirement. For Cycle Counting: The Material can be set such that it inventoried several times within a fiscal year. All stock units are inventoried at least once a year. Step 1: 1: In configuration we can define a plant with Cycle counting and set the number of physical inventories annually as per plant as shown in figure below Where from below figure table, Inventories per year  year – with the number of inventories per year, the system calculates the number of workdays between the inventories (interval). Float time  time – The time buffer is the time interval within which the inventory of a stock unit must be executed. Percentage of the total value  value – The cycle counting indicator is determined with an

ABCD analysis (56+28+14+2 = 100).

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Step 2: In 2: In order to set material for cycle counting then we has to assign cycle counting physical indicator to Material master as shown below. As highlighted below from Plant data storage location 1 view select the indicator A B C or D. If we flag the CC fixed indicator then cycle counting indicator will not change.

Summary Recap: In this session we saw the various types of physical inventory process & its stock posting difference in the material as per the inventory count.

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Day 17: 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 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.

1.  Material

Movement Type

2. Material Type

Valuation Class

Account Category Reference

Valuation Grouping Code

Valuation area (Plant)

3. Transaction Key (BSX, WRX)

Company Code G/L account Chart of account

Flow Chart for Automatic Account Determination Let us divide the Automatic Account Determination process into 4 parts for better understanding. understandi ng. (The first 3 parts are shown in diagram)

1.  2.  3.  4. 

Material Type – Account Category Reference – Valuation Class Valuation Grouping Code Movement Type – Transaction Key Automatic Posting – OBYC OBYC  

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SAP Career Guidance  2020  2020  Configuration Path for Account determination as shown in below figure:

Now we will go step by step to understand the process. Step 1: Material Type – Account Category Reference – Valuation Class

1.  Material Type

Valuation Class

Account Category Reference

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SAP Career Guidance  2020  2020  As we know that the materials are of various materials types defined in our system, in this step the material type is assigned through valuation classes through account category reference. This makes to see relevant valuation classes of the material type during creation of material but not all the list of valuation classes. Scenario: We Scenario:  We will take one material type as example and observe link to valuation class through Account Category Reference (We can create & assign the Valuation classes through AGR and give the respective GL account with the help of FI person) We will use Material type as HALB (Semi finished) Note: Material Quantity/ Value updating is to be flagged mandatory for the respective plant. If not then it will not update in the respective field which is not flagged while doing GR. This can also done through T Code: OMS2

For Plant 1000 we flagged quantity/ value updating as shown in above figure. Account Category Reference: Account category reference acts as a mediator between the material type and valuation class, where we will define the account category reference to create the valuation class and assigning the material type to account category reference. As per above mention configuration path go to Define Valuation classes then we can enter the values for ACR & Valuation Class respectively as shown in below figure.

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Here we defined the Account type Category for Material Type – HALB is 0008 0008 as  as shown in the below figure.

Valuation Class: Valuation class is defined as per the number of material group in our organization. Suppose if we have 6 material groups then we can have 6 valuation classes & each valuation class will link to creation GL account.

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SAP Career Guidance  2020  2020  As we observe in below figure that the valuation class 0790 & 2790 is linked through the account category reference 0008.

The Valuation Class created with the link to ACR, hence ACR automatically set for material type as shown in figure. Note: The valuation class option will be seen in the material master accounting view Note: 1 for respective material type as shown in below figure. From below figure, we can see 6 valuation class been created where we selected valuation class as 7900 7900 as  as highlighted. highlighted. The 0790 & 2790 also there which we had seen in while creating valuation class previously.

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From The Above all the observed configuration and the values taken we have the flowchart as:

Material Type HALB   HALB

Valuation Class 7900

Account Category Reference 0008

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SAP Career Guidance  2020  2020  Step 2: Valuation Grouping Code Valuation area is normally taken as plant, in this step Plant, company code & Chart of account is grouped together in single valuation grouping code.

Valuation Grouping Code

Valuation area (Plant)

Company Code

Chart of account

The Plants will combine and create a valuation grouping code which having same attributes with same account determination, this will make all those plants in one grouping code this results in reduce the number of entries in OBYC setting (will see in 4th part) while assigning the GL account. Therefore the plant will trigger same set of GL accounts with the help of chart of accounts for the entire group as shown in diagram. In case if we require separate GL account system, then we need to create a new valuation grouping code, means two grouping codes for same chart of accounts with different GL accounts in OBYC. The number of GL account is decided by the FI team. Note: Before going to valuation grouping code we have to make ensure that valuation group code is active in define valuation control.

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SAP Career Guidance  2020  2020  In order to create a valuation grouping code then go to Group Together valuation areas as shown below

After selecting the above path give the respective valuation grouping code for plant and company code as shown below

In above figure we can see Plant 1000 Company Code 1000 is grouped together with Valuation grouping code as 0001 where INT INT is  is the chart of accounts (Decided by FI team)

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SAP Career Guidance  2020  2020  Hence, putting the above in the flow chart from above observation we get,

Valuation Grouping Code 0001

Valuation area (Plant) 1000

Company Code 1000

Chart of account INT

Step 3: Movement Type – Transaction Key No customization is done as these settings are standard and organization will follow the same settings as system recommended. GL accounts are triggered while doing MIGO, where the movement type is linked with certain general modifier and Transaction event key. General Modifier are only allowed for Transaction Key GBB and PRD. The general modifier will come and hit the GL accounts for procurement process like Sub-Contracting, Consignment, Pipeline, Goods Transfer etc. Examples of General modifier are VBR, VNG, BSA and VBO etc. Transaction Event Key: As we seen in our pervious topics we have seen most common transaction key were BSX, WRX, PRD & GBB. Where, BSX  – It is use for the inventory posting for addition & subtraction of the stock where BSX

respective GL account will pick. WRX- It is use for GR/IR clearing account after doing the normal inventory addition WRXand subtraction the vendor should paid.

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SAP Career Guidance  2020  2020  PRD – This key will be posted when system determine the price difference compare PRD  to the material master if we maintain as standard price control. GBB - Where we have many procurement types like sub-contracting, Consignment, GBB Pipeline, Goods transfer- there we have different modifiers should effect because we may pay or not because few are internal transfers and some should be like consignment and sub-contracting and few are goods issue to cost center- this may be different type of stock gets credited. For this we have modifiers linked to movement types and each procurement type we have different movement types and its linked to account determination, so that respective modifier will affect.

As we see in the above the values are already defined in the standard system for each movement type transaction key and account modifier is assigned where no any

changes are done in the standard system.

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SAP Career Guidance  2020  2020  We can have the flow chart for the movement type as (defined in System)

Movement Type 101

Transaction Key BSX,, WRX BSX WRX,, PRD   PRD

Step 5: Configure Automatic postings: T Code – OBYC In this Step Valuation Class is assigned to the G/L account This configuration completely handled by FI team Note: Valuation modifier = Valuation grouping code Using this Valuation modifier, we have the flexibility to map different GL account for same valuation class materials. In standard transactions and FI team will maintain the GL accounts as per valuation grouping code and modifiers.

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SAP Career Guidance  2020  2020  As refer to the above figure for Transaction key GBB, the GL account credit/debit is maintain for Valuation modifier, General modifier & the valuation classes. Similarly for all Valuation classes the GL account is maintained. Now the entire configuration we have seen for automatic account determination, let us go through our previous examples for various topic automatic account determination in form of flow chart.

Example 1: In Consignment process (Page No. 99) The below flow chart shows the execution of the Automatic account determination for the consignment process, when we transfer consignment stock to own stock.

Material 3147

Movement Type 411K

Material Type ROH

Valuation Class 0300

Account Category Reference 0001

Valuation Grouping Code 0001

Valuation area (Plant) 1000

Company Code 1000

Transaction Key

KON

G/L account Chart of account INT

169900

BSX

300000

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Example 2: In Sub Contracting Process (Page No. 110) When accepting the final assembly part from the vendor after supplying the child part (Sub product) to the vendor from our end.

Material 10015048

Movement Type 101 – GR 543 – 

Material Type FERT

Valuation Class 7920

Account Category Reference 0009

Consumption of stock (Child Part)

Valuation Grouping Code 0001

Valuation area (Plant) 1000

Company Code 1000 G/L account Chart of account INT

Transaction Key

BSX

792000

WRX

191100

BSV

FRL

893010

417001

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Example 3: Physical Inventory (Page No. 165) We will consider only material i.e. 3147 for below flow chart where in that example we had two material (3147 & 4196).

Material Type ROH

Material 3147

Movement Type 702

Valuation Class 0300

Account Category Reference 0001

Valuation Grouping Code 0001

Valuation area (Plant) 1000

Company Code 1000 G/L account

Transaction Key

Chart of account INT 300000

BSX

GBB

INV

400020

Where, INV = Account Modifier for transaction key GBB.

Summary Recap: In this session we have learnt how the GL account is picked when we post the Goods Receipt for the respective movement type or when the transfer

the stock from one end to other end.

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Day 18:  

Split Valuation It is used to valuate stock of material in same valuation area differently. E.g. if the material is procured externally form the vendor has different valuation price as compare to the stock of in-house production & if we are procuring same material from different origin at that time this split valuation comes into picture.

Origin

Procurement

Quality

Type

Valuation Category

Valuation Type

P

Q

A

B

C

In-house

O

Outsource

India

Split Valuation For certain materials, it is necessary to valuate the various stocks in a particular valuation area separately as shown in above figure   Different grades of quality of material   Differentiation between in-house production and outsource procurement   Different origins of the material. E.g. Same material with different vendors. •

•

•

USA

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SAP Career Guidance  2020  2020  The Configuration path for split valuation as shown below:

Make sure that the Split valuation is active in configuration path Exercise: For understanding the concept we will create a Valuation type for In-house & Outsource Material and define new valuation category. Also we will procure the both material and observe the status. System Procedure:Step i) Create Global Type & Global Categories

Now we will create global types followed by global category

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We have created Valuation Types CCP_IN & CCP_OUT for internal & external respectively where we allotted to semi-finish material with account category reference 0008 (We have seen in Automatic account determination refer Page No.168).

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Step ii) Activate Global Type to Global Categories

We have created a new global category – P (CCP _ Procurement) activated to the global type as shown in figure.

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Step iii) Create Local Definition for Plant

As we observe in above figure local definition already created for plant 1000 Note: Click Note:  Click on Cats->OU Cats->OU to  to activate global category to plants in next step

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Step iv) Activate Valuation Categories (same as Global) to Local Definition for Plant.

Click on activate for respective category type defined by us.

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SAP Career Guidance  2020  2020  Step v) Create new Material with valuation type to be mention in beginning for respective Plant where in Accounting 1 View Valuation Category is to be maintain.

1.  We first create the material & mention valuation category in Accounting 1 view

Material 4301 created

Note: In Split Valuation the price control should be moving average price for the Note: material.

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SAP Career Guidance  2020  2020  2.  Extend the same material into Valuation types. After creating the material we will extend the material into different valuation type which option appears in starting as shown below.

As we see in the above figure, while extending the material we can have material with different valuation type. So we will extend the material for both valuation types. I.e. CCP_IN & CCP_OUT From above data we will get the flow chart as,

Procurement Type

Valuation Category

P

Valuation Type

CCP_IN (In-house)

CCP_OUT (Outsource)

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SAP Career Guidance  2020  2020  For above valuation type we need to make the purchase info record for two vendors respectively mentioning the Valuation type as shown in below figure.

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SAP Career Guidance  2020  2020  After doing all the procurement activities we have separate stock to valuate it as we observe in stock overview as shown in below figure.

Summary Recap: In this session we learnt how to create Split valuation for material and related configuration for the same.

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Day 19: 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 “GR-Bsd IV” IV” in item 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 GR— —IR) & In 2 way match GR is not necessary we can post invoice with reference to PO (PO — IR)

2.  We can have a separate invoice for Goods/Service items or planned delivery, also we can calculate the tax as per the tax code & the amount will be show in the balance tab as highlighted in below figure.

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After the Payment to the vendor using the invoice verification and we can have price settlement between the vendor and the buyer using option such as Credit Memo, Subsequent Credit & Subsequent Debit. These three can be done after the Invoice verification entry in MIRO. Invoice Verification & Subsequent Debit is payment to the vendor whereas for Credit Memo & Subsequent credit vendor will pay for buyer. Scenario: We take will order the material form the vendor and go through the each process starting with the invoice verification after doing the GR.

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SAP Career Guidance  2020  2020  Invoice Verification: Standard PO created under the number 4500018731

As we observe figure we are not considering any tax so we are taken tax code as 0%, If we want to put the tax then we can change the tax code & click on the calculate tax, it will calculate the tax amount & balance will be displayed in the balance and accordingly we can put the amount. After complete the above process then go to simulate mention in the top & then save it. Accounting entries for invoice verification we get as shown in below figure where vendor account (KBS) is credited and the GR/IR clearing account (WRX) is debited As we seen before after payment vendor account will be debited & our company bank account will be credited.

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Subsequent Debit: It’s a correction kind of payment in which vendor sends an invoice to pay the additional charges after few months of the payment due to various reasons. Suppose he sends an invoice of additional 40000 INR then we have

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SAP Career Guidance  2020  2020  The accounting entries for subsequent debit is as fallows

Credit Memo: This type is used if we want to charge the vendor. E.g. we have received the goods form the vendor later found that it is damaged or not meeting the quality therefore we will return the goods back to vendor. In this case we will create credit memo for the goods amount equal to the goods. As per the agreement, agreement, if the vendor doesn’t provide the materials/service within specific date or quality customer can send credit memo to vendor to pay the penalty.

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SAP Career Guidance  2020  2020  Accounting entries for credit memo are as below

The PRD is posted as price was more as per the material price.

Subsequent Credit: Whenever you want to charge or receive the correction amount from the vendor, we will create Subsequent credit. E.g. we want to charge the amount from the vendor about the poor performance of the material which was bought from the vendor few months back and the payment was also done.

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The Accounting Entries after doing subsequent credit is as shown below figure:

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SAP Career Guidance  2020  2020  We can view the following above transactions in Purchase Order in item level tab Purchase Order history as highlighted below.

Summary Recap: In this session we have gone through the invoice verification, Credit memo, Subsequent Credit/ Debit processes and their accounting entries. Overall summary for accounting entries for above process Transaction Description Invoice Subsequent Key Verification Debit KBS Vendor Credit (-) Credit (-) Account WRX GR/ IR Debit (+) Clearance PRD Price Debit (+) Difference

Input

Debit(+)

Debit (+)

we get Credit Memo Debit (+)

Subsequent Credit Debit (+)

Credit (-) Credit (-) (Posted due to difference between Material price & memo price) Credit (-)

Credit (-)

Credit (-)

Tax (If we put Input tax in Invoice)

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SAP Career Guidance  2020  2020  Additional Points to Remember: Evaluated Receipt Settlement (ERS) for Invoice Verification: Evaluated Receipt Settlement is the process of settling goods receipt automatically. The Vendor Invoices are posted automatically (without actually receiving from the vendor) in the system based on the information in the purchase order and goods receipt. The settlement documents are sent automatically to the vendor in print, email or fax form. Before implementing ERS, there must be an agreement with the vendor about ERS process and applicable conditions. Advantages of ERS:        

• •

• •

Purchase Orders can be closed quickly No price and quantity variances in Invoice Verification No need to receive invoice from vendor Communication errors can be avoided

The following are the pre-requisites for implementing ERS: In the vendor master data, the indicators for evaluated receipt settlement must be activated.   A Confirmation is expected for the purchase order   GR – IR Indicators and ERS Indicators should be activated in the PO   Tax code must be maintained in the PO item  

•

• • •

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Day 20: Automatic PO Process It is the process in which the PO is automatically created after the PR. The following are the steps to perform the automatic PO 1.  2.  3.  4.  5.  6. 

Material Master purchasing view tick automatic PO check box. Vendor Master purchasing view tick automatic PO check box. Maintain Purchase Info Record. Maintain Source list for Vendor & Material. Create a Purchase Requisition. Create automatic PO using T code: ME59N ME59N  

Step1: Material Master purchasing view tick automatic PO check box. T Code: MM01 While creating the material master we have to ensure that in purchasing view automatic PO indicator is flagged for doing the automatic PO process.

Material 4310 created

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Step2: Vendor Master purchasing view tick automatic PO check box. T Code: XK02 (XK01 – to create new vendor) Like Material Master, Vendor Master Data in Purchasing view the automatic PO indicator should be flagged as highlighted in below figure.

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SAP Career Guidance  2020  2020  Step 3: Maintain Purchase info Record T Code: ME11 The Purchasing Info Record is mandatory in the Automatic PO process for vendor material combination as price will be taken from this info record in an automatic created PO.

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SAP Career Guidance  2020  2020  Step 4: Maintain Source list T Code: ME01 The Source list is also mandatory and we have to flagged fix for respective vendor as highlighted in below figure.

Step 5: Create Purchase requisition T Code: ME51N While creating the Purchase Requisition we have to flag the source determination as highlighted in below figure and enter the respective Plant, vendor, Material etc.

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SAP Career Guidance  2020  2020  Step 6: Create Automatic PO T Code: ME59N After all completing the above step using T code ME59N enter the details such as vendor, plant, Purchase Group and Purchase requisition. In new Purchase order Zone flag per plant & per requisition (as data provided), then flagged test run in other parameters and execute it.

After executing the above we will get the following output as shown in below figure, we can see the PO number and the status.

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Note: if we get error in this process, we can get the details by clicking in document icon (Column D). To confirm the execution we can view in the Respective Purchase requisition status in item level tab as shown in below figure

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SAP Career Guidance  2020  2020  By clicking in the PO which was mention in PR status we can observe the PO which was created automatically using above steps as shown in below figure. We can also note the PO number after executing the automatic PO (ME59N) and then display the PO using ME23N.

Summary Recap: In this Session we learnt about how to create automatic PO from the PR and the steps involves in it.

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Day 21: Cross Module – Integration Configuration In this Session we will see the examples in which SAP MM integrates with the other modules.

1. SAP SAP MM – QM As we know goods before accepting should meet the quality specification, Therefore quality is monitor by the Quality Management team for any manufacturing sector. Without the approval of the Quality Management team material will not get certified to use for production activities and vendor will not be paid. The following are the steps to perform SAP MM – QM integration 1.  Create Material Master with Quality Management view – MM01 MM01   2.  Maintain Quality Info Record – QI01 (QM team) 3.  Create Purchase Order – ME21N ME21N   4.  Post the Goods Receipt – MIGO MIGO   5.  Release the material from Quality Inspection to Unrestricted Stock – QA32 (QM team) Step 1: Create Material Master With Quality Management View. T Code: MM01 This View is maintained by the QM team.

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SAP Career Guidance  2020  2020  As Shown below in QM view, Click on post to inspection stock and then go to inspection set up.

After going to inspection setup click on new inspection type as highlighted in below figure.

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SAP Career Guidance  2020  2020  Select the the inspection type as “01” which represent Goods Receipt for Order and make it active.

Material 4386 created 

Step 2: Maintain Quality Info Record T Code: QI01 Maintain the Release date in which material to be released.

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SAP Career Guidance  2020  2020  Step 3: Create Purchase Order T Code: ME21N

Standard PO created under the number 4500018797

Step 4: Post Goods Receipt T Code: MIGO

Material document 50075 posted

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SAP Career Guidance  2020  2020  After posting the Goods Receipt we observe that the stock directly moved Quality inspection stock (Using T Code: MMBE MMBE). ).

Step 5: Release the material from quality to unrestricted stock. T Code: QA32 Stock will be confirmed by the QM team if it all the requirement then they will release the material to unrestricted unrestricted stock.

We will obtain below output further process done by the QM team in order to put

Quality to Unrestricted Stock.

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2. SAP SAP MM – FI Refer Page No. 168 example for integration between MM – FI module.

3. SAP SAP MM - SD Refer Page No. 122 example for integration between MM – SD module.

Summary Recap: In this session we have gone through other module integration with MM module.