SAP MM End User Manual

USER MANUAL Materials Management

USER MANUAL DOCUMENT CONTROL SHEET GENERAL INFORMATION Project name Implementation

Document name Materials Management

DOCUMENT INFORMATION Version Filename Date V 1.0

Author

Reviewed by

Document location

Changes from previous version

USER PROCEDURE MANUAL TABLE OF CONTENTS Error! Bookmark not defined.

1

Procurement of Stock Materials _____________________________________________________ 10 1.1

Procurement of Stock Materials – Raw Material Local / Return __________10

1.1.1 1.1.2 1.1.3 1.1.4 1.1.5 1.1.6 1.1.7 1.1.8

1.2

64 64 66 66

Use ___________________________________________________________________________ 67 Procedure ______________________________________________________________________ 67 Result _________________________________________________________________________ 68 Use ___________________________________________________________________________ Procedure ______________________________________________________________________ Result _________________________________________________________________________ Example________________________________________________________________________

69 69 70 70

Release Purchase Requisition_____________________________________70

1.7.1

1.8.

Use ___________________________________________________________________________ Procedure ______________________________________________________________________ Result _________________________________________________________________________ Example________________________________________________________________________

Creating Purchase Requisition ____________________________________69

1.6.1 1.6.2 1.6.3 1.6.4

1.7

Use ___________________________________________________________________________ 61 Procedure ______________________________________________________________________ 61

Price Comparison _______________________________________________66

1.5.1 1.5.2 1.5.3

1.6

56 56 61 61

Maintaining Quotation ___________________________________________64

1.4.1 1.4.2 1.4.3 1.4.4

1.5

Use ___________________________________________________________________________ Procedure ______________________________________________________________________ Result _________________________________________________________________________ Example________________________________________________________________________

Message output: RFQ____________________________________________61

1.3.1 1.3.2

1.4

10 10 10 24 34 41 43 52

Request for Quotation (RFQ) ______________________________________55

1.2.1 1.2.2 1.2.3 1.2.4

1.3

Purpose ________________________________________________________________________ Prerequisites ____________________________________________________________________ Material Master Record ____________________________________________________________ Vendor Master Record ____________________________________________________________ Purchasing Info Record____________________________________________________________ Source List______________________________________________________________________ CIN Master Data _________________________________________________________________ Excise Condition Record ___________________________________________________________

Procedure ______________________________________________________________________ 70

Assign and Process Purchase Requisition __________________________74

1.8.1 Use ______________________________________________________________________________ 74 1.8.2 Procedure ______________________________________________________________________ 74 1.8.3 Result _________________________________________________________________________ 76

1.9

Purchase Order _________________________________________________77

1.9.1 1.9.2 1.9.3 1.9.4

Use ___________________________________________________________________________ Procedure ______________________________________________________________________ Result _________________________________________________________________________ Example________________________________________________________________________

1.10. Release Purchase Order __________________________________________83

77 77 82 82

1.10.1. Procedure ______________________________________________________________________ 83

1.11Message Output__________________________________________________87 1.11.1 Use _____________________________________________________________________________ 87 1.11.2 Procedure ______________________________________________________________________ 87

1.12 Goods Receipt for Purchase Order_________________________________89 1.12.1 Use ___________________________________________________________________________ 1.12.2 Prerequisites ____________________________________________________________________ 1.12.3 Procedure ______________________________________________________________________ 1.12.4 Result _________________________________________________________________________ Material document 5000000009 posted ______________________________________________________ 1.12.5 Example________________________________________________________________________

89 89 89 99 99 99

1.13 Logistics Invoice Verification ____________________________________100 1.13.1 1.13.2 1.13.3 1.13.4

Use __________________________________________________________________________ Procedure _____________________________________________________________________ Result ________________________________________________________________________ Example_______________________________________________________________________

100 100 105 105

1.14 Returning Delivery _____________________________________________106 1.14.1 Use __________________________________________________________________________ 1.14.2 Procedure _____________________________________________________________________ 1.14.3 Result ________________________________________________________________________ Return Delivery document created _________________________________________________________ 1.14.4 Example_______________________________________________________________________

106 106 113 113 113

1.15 Excise Invoice Other Movements _________________________________114 1.15.1 1.15.2 1.15.3

Procedure _____________________________________________________________________ 114 Result ________________________________________________________________________ 116 Example_______________________________________________________________________ 116

1.16 Posting and Printing the Excise Invoice____________________________117 1.16.1 1.16.2 1.16.3 1.16.4

Use __________________________________________________________________________ Prerequisites ___________________________________________________________________ Procedure _____________________________________________________________________ Result ________________________________________________________________________

117 117 117 120

1.17 Credit Memo __________________________________________________121 1.17.1 1.17.2 1.17.3 1.17.4 1.17.5

Use __________________________________________________________________________ Prerequisites ___________________________________________________________________ Procedure _____________________________________________________________________ Result ________________________________________________________________________ Example_______________________________________________________________________

121 121 121 127 127

1.18 Reversals / Cancellation of Invoice or Credit Memo __________________127 1.18.1 1.18.2 1.18.3 1.18.4 1.18.5

Use __________________________________________________________________________ Prerequisites ___________________________________________________________________ Procedure _____________________________________________________________________ Result ________________________________________________________________________ Example_______________________________________________________________________

127 128 128 133 133

1.19 Reversals / Cancellation of Goods Receipt (GR) _____________________134 1.19.1 1.19.2 1.19.3 1.19.4 1.19.5

Use __________________________________________________________________________ Prerequisites ___________________________________________________________________ Procedure _____________________________________________________________________ Result ________________________________________________________________________ Example_______________________________________________________________________

1.20 Reversing CENVAT Postings_____________________________________140

134 134 134 139 139

1.20.1 1.20.2 1.20.3 1.20.4 1.20.5

Purpose _______________________________________________________________________ Prerequisites ___________________________________________________________________ Procedure _____________________________________________________________________ Result ________________________________________________________________________ Example_______________________________________________________________________

140 140 140 144 144

1.21 Canceling Excise Invoices _______________________________________145 1.21.1 1.21.2 1.21.3 1.21.4 1.21.5

2

Purpose _______________________________________________________________________ Prerequisites ___________________________________________________________________ Procedure _____________________________________________________________________ Result ________________________________________________________________________ Example_______________________________________________________________________

145 145 145 150 150

Procurement of Imported Materials – Business Process Procedure________________________ 151 2.1 Procurement of Imported Materials _________________________________151 2.1.1 Purpose__________________________________________________________________________ 151 2.1.2 Prerequisites ___________________________________________________________________ 151

2.2 Creating Purchase Order __________________________________________152 2.2.1 Use _____________________________________________________________________________ 2.2.2 Prerequisites ___________________________________________________________________ 2.2.3 Procedure _____________________________________________________________________ 2.2.4 Result ________________________________________________________________________ 2.2.5 Example_______________________________________________________________________

2.3

Release Purchase Order ________________________________________159

2.3.1

2.4

163 164 171 171

Use __________________________________________________________________________ Procedure _____________________________________________________________________ Result ________________________________________________________________________ Example_______________________________________________________________________

172 172 183 183

Logistics Invoice Verification for the Materials ______________________184

2.7.1 2.7.2 2.7.3 2.7.4

3

Use __________________________________________________________________________ Procedure _____________________________________________________________________ Result ________________________________________________________________________ Example_______________________________________________________________________

Goods Receipt for Imported Purchase Order _______________________172

2.6.1 2.6.2 2.6.3 2.6.4

2.7

Use __________________________________________________________________________ 162 Procedure _____________________________________________________________________ 162

CAPTURING BILL OF ENTRY ____________________________________163

2.5.1 2.5.2 2.5.3 2.5.4

2.6

Procedure _____________________________________________________________________ 159

Message Output _______________________________________________162

2.4.1 2.4.2

2.5

152 152 152 158 158

Use __________________________________________________________________________ Procedure _____________________________________________________________________ Result ________________________________________________________________________ Example_______________________________________________________________________

184 184 190 190

Procurement of Subcontracting Materials – Business Process Procedure __________________ 190 3.1

Procurement of Subcontracting Materials __________________________191

3.1.1 3.1.2

3.2

Purpose _______________________________________________________________________ 191 Prerequisites ___________________________________________________________________ 191

Creation of Subcontracting Purchase Order ________________________191

3.2.1 3.2.2

Use __________________________________________________________________________ 191 Prerequisites ___________________________________________________________________ 192

3.2.3 3.2.4 3.2.5

3.3

Message Output _______________________________________________197

3.3.1 3.3.2

3.4

Use __________________________________________________________________________ 197 Procedure _____________________________________________________________________ 197

Transfer of Components to Subcontractor _________________________199

3.4.1 3.4.2 3.4.3 3.4.4 3.4.5

3.5

Procedure _____________________________________________________________________ 192 Result ________________________________________________________________________ 196 Example_______________________________________________________________________ 196

Use __________________________________________________________________________ Prerequisites ___________________________________________________________________ Procedure _____________________________________________________________________ Result ________________________________________________________________________ Example_______________________________________________________________________

199 199 199 201 201

Creation of Subcontracting Challan _______________________________202

3.5.1 3.5.2 3.5.3 3.5.4 3.5.5

Use __________________________________________________________________________ Prerequisites ___________________________________________________________________ Procedure _____________________________________________________________________ Result ________________________________________________________________________ Example_______________________________________________________________________

202 202 202 204 204

3.6 Printing of Subcontracting Challan ________________________________205 3.6.1 Use _____________________________________________________________________________ 205 3.6.2 Procedure _____________________________________________________________________ 205

3.7

Goods Receipt for Purchase Order________________________________208

3.7.1 3.7.2 3.7.3 3.7.4 3.7.5

3.8

208 208 208 217 217

Reconciling Subcontracting Challan ______________________________218

3.8.1 3.8.2 3.8.3 3.8.4

3.9

Use __________________________________________________________________________ Prerequisites ___________________________________________________________________ Procedure _____________________________________________________________________ Result ________________________________________________________________________ Example_______________________________________________________________________ Use __________________________________________________________________________ Procedure _____________________________________________________________________ Result ________________________________________________________________________ Example_______________________________________________________________________

218 218 220 220

Completing/Reversal/Re-credit Subcontracting Challan ______________220

3.9.1 3.9.2 3.9.3 3.9.4

Use __________________________________________________________________________ Procedure _____________________________________________________________________ Result ________________________________________________________________________ Example_______________________________________________________________________

220 221 221 222

3.10 Logistics Invoice Verification for Subcontracting Material ____________222 3.10.1 3.10.2 3.10.3 3.10.4

5.

Use __________________________________________________________________________ Procedure _____________________________________________________________________ Result ________________________________________________________________________ Example_______________________________________________________________________

222 222 226 226

Procurement of External Services: Business Process Procedure ________________________ 227 5.1

Procurement of External Services – Procurement Process ____________227

5.1.1 5.1.2

5.2

Purpose _______________________________________________________________________ 227 Prerequisites ___________________________________________________________________ 227

Creating Service Master _________________________________________228

5.2.1 5.2.2

Use __________________________________________________________________________ 228 Procedure _____________________________________________________________________ 228

5.2.3

5.3

Creating Purchase Requisition ___________________________________231

5.3.1 5.3.2 5.3.3 5.3.4

5.4

Result ________________________________________________________________________ 230 Use __________________________________________________________________________ Procedure _____________________________________________________________________ Result ________________________________________________________________________ Example_______________________________________________________________________

231 231 235 235

Assign and Process Purchase Requisition _________________________236

5.4.1 5.4.2 5.4.3

Use __________________________________________________________________________ 236 Procedure _____________________________________________________________________ 236 Result ________________________________________________________________________ 239

5.6 Purchase Order__________________________________________________239 5.6.1 Use _____________________________________________________________________________ 5.6.2 Prerequisites ___________________________________________________________________ 5.6.3 Procedure _____________________________________________________________________ 5.6.4 Result ________________________________________________________________________ 5.6.5 Example_______________________________________________________________________

5.7

For Releasing Purchase Order Refer User Manual of Stock Procurement 243

5.8

Message Output _______________________________________________243

5.8.1 5.8.2

5.9

239 240 240 242 243

Use __________________________________________________________________________ 243 Procedure _____________________________________________________________________ 243

Creation and Acceptance of Service Entry Sheet ____________________245

5.9.1 5.9.2 5.9.3 5.9.4

Use __________________________________________________________________________ Procedure _____________________________________________________________________ Result ________________________________________________________________________ Example_______________________________________________________________________

245 246 256 256

5.10 Logistics Invoice Verification ____________________________________257 5.10.1 5.10.2 5.10.3 5.10.4

6

Use __________________________________________________________________________ Procedure _____________________________________________________________________ Result ________________________________________________________________________ Example_______________________________________________________________________

257 257 261 261

Asset Procurement – Business Process Procedure. _____________________________________ 261 6.1

Purchase Order ________________________________________________261

6.1.1 6.1.2 6.1.3

6.2

Release of Purchase Order ______________________________________266

6.2.1

6.3

Procedure _____________________________________________________________________ 266

Goods Receipt for Purchase Order________________________________266

6.3.2 6.3.3 6.3.4 6.2.3

6.4

Use __________________________________________________________________________ 261 Procedure _____________________________________________________________________ 262 Result ________________________________________________________________________ 266

Use __________________________________________________________________________ Prerequisites ___________________________________________________________________ Procedure _____________________________________________________________________ Result ________________________________________________________________________

266 266 266 269

Post Excise Invoice ____________________________________________269

6.4.1 Procedure ________________________________________________________________________ 269 6.4.2 Result ___________________________________________________________________________ 271

6.5

Logistics Invoice Verification ____________________________________272

6.5.1 6.5.2

Use __________________________________________________________________________ 272 Procedure _____________________________________________________________________ 272

6.5.3

7

Result ________________________________________________________________________ 275

Excise Periodic Processing – Business Process Procedure_______________________________ 276 7.1

Excise Periodic Processing ______________________________________276

7.1.1 7.1.2

7.2

Excise Report - CENVAT Register_________________________________277

7.2.1 7.2.2 7.2.3 7.2.4

7.3

Purpose _______________________________________________________________________ 276 Prerequisites ___________________________________________________________________ 276 Use __________________________________________________________________________ Prerequisites ___________________________________________________________________ Procedure _____________________________________________________________________ Result ________________________________________________________________________

277 277 277 279

Excise Register Updation________________________________________________________ 280

7.3Updation of RG1 Register __________________________________________280 7.3.1 7.3.2 7.3.3 7.3.4

7.4

Use __________________________________________________________________________ Prerequisites ___________________________________________________________________ Procedure _____________________________________________________________________ Result ________________________________________________________________________

288 288 288 291

RG1 Register Print Utility ________________________________________292

7.5.1 7.5.2 7.5.3 7.5.4

8.

280 280 280 287

RG1 Register Extraction_________________________________________288

7.4.1 7.4.2 7.4.3 7.4.4

7.5

Use __________________________________________________________________________ Prerequisites ___________________________________________________________________ Procedure _____________________________________________________________________ Result ________________________________________________________________________

Use __________________________________________________________________________ Prerequisites ___________________________________________________________________ Procedure _____________________________________________________________________ Result ________________________________________________________________________

292 292 292 295

PLA Register Extraction ________________________________________________________ 295 8.1

PLA Register Extraction_________________________________________295

8.1.1 8.1.2 8.1.3 8.1.4

8.2

Use __________________________________________________________________________ Prerequisites ___________________________________________________________________ Procedure _____________________________________________________________________ Result ________________________________________________________________________

295 295 295 298

PLA Register Print Utility ________________________________________298

8.2.1 8.2.2 8.2.3 8.2.4

Use __________________________________________________________________________ Prerequisites ___________________________________________________________________ Procedure _____________________________________________________________________ Result ________________________________________________________________________

298 298 298 300

9. Reports _________________________________________________________________________ 300 7.1

Purchasing ___________________________________________________300

7.1.1 7.1.2 7.1.3 7.1.4 7.1.5

9.2

Purchasing Documents per Vendor (ME2L) ___________________________________________ Purchasing Documents per Material (ME2M) __________________________________________ Source List for Material (ME0M) ____________________________________________________ Purchase Info Record per Material (ME1M) ___________________________________________ Purchasing Values(MC$G) ________________________________________________________

300 302 303 303 304

Inventory _____________________________________________________307

9.2.1 9.2.2

Material Document List (MB51)_____________________________________________________ 307 Diplay Warehouse Stock (MB52) ___________________________________________________ 309

9.3.3 Stock on Posting Date (MB5B) ________________________________________________________ 9.3.4 Stock Overview (MMBE)_____________________________________________________________ 9.3.5 Stock in Transit (MB5T) _____________________________________________________________ 9.3.6 Slow Moving Items (MC46)___________________________________________________________

Icons Icon

Meaning Caution Example Note Recommendation Syntax

Abbreviations R

Required entry field (used in the end-user procedures)

O

Optional entry field (used in the end-user procedures)

C

Conditional field (used in the end-user procedures)

310 313 314 315

1 Procurement of Stock Materials 1.1

Procurement of Stock Materials – Raw Material Local / Return

1.1.1 Purpose This process describes the procurement process of raw materials from indigenous source of supply with Country Version India (CIN) relevant process like processing of Excise Duty (ED) and Sales Tax (ST) process.

1.1.2 Prerequisites The following scenario specific master data must be created for operation of this building block. 1. 2. 3. 4. 5. 6.

Material Master Record Vendor Master Record Purchase Info Record (Optional) Source List (Optional) CIN Master Data Excise Condition Record (if Tax applicable for the Vendor-Material Combination)

1.1.3 Material Master Record Menu Path

T Code

Logistics
Materials Management
Material Master
Material
Create (General) MM01 – Create MM02 – Change MM03 – Display

Internal Number assignment . Enter the Industry Sector Enter the Material Type

Press Enter to see the pop-up window.

Select the required views and press Enter to input the organizational levels.

Press Enter to input the details of the Material.

1.1.3.1

Basic Data Views

Enter the Material Description Enter the Unit of Measure and material Group Enter the division if Stock Transfer will happen for this material Blocking for Procurement or BOM enter here Enter the Gross and Net Weight for the Finished Goods

Enter here if the material is returnable packing as VERP and non returnable packing as LEIH

Press Additional Data to maintain Alternate Unit of Measures

Enter any Basic Material is there

Press Additional Data to maintain the Alternate Unit of Measures (for e.g. 1000G= 20Nos for the Semi finished goods)

Press Main data to go to the next view

1.1.3.2

Purchasing Views

Enter the Purchasing Group – Person/Group responsible to procure this material If the Ordering Unit is other than the Base UoM, enter the Unit and make VAR. OUn as 1

Enter the Purchasing Value Key as G1 (5% Delivery Tolerance) or G2 (10% Delivery Tolerance) Select if QM is not active and want to post to Inspection Stock (Mainly used for Spares) Source list should be maintained for this material select the box. Enter the No. of Days required for GR Processing once the material is arrived at factory.

Enter the PO Text normally specification is maintained

1.1.3.3

MRP Views

Enter the appropriate MRP Type)

Work Scheduling View:

1.1.3.4

Quality Management View

1.1.3.5

Accounting Views

Enter the appropriate Valuation Class (Various Valuation Classes given below) Enter the Price Control as V-Moving Average and S-Standard If Price Control is V enter the Moving Average price, S enter the Standard Price

1.1.3.6

Costing Views

Enter Respective Profit Centre of Plant/Depot

After entering all the details, press

to save the Material.

1.1.4 Vendor Master Record Menu Path T Code

Logistics
Materials Management
Purchasing
Master Data
Vendor
Central XK01 – Create XK02 – Change XK03 – Display

Vendor Number to be put manually Enter Company Code Enter Purchasing Organisation Enter Account Group (Various Group given below)

Press Enter to input the details of the vendor. Vendor Account Groups: VDOM Domestic Vendors VIMP Import Vendors VSRV Service Vendors

1.1.4.1

General Data

Click on the CIN Details to enter the Vendor Excise and Sales Tax details

Enter all the details in the respective fields

Excise Indicator for Vendor as 1 – 100% Taxable

Enter all the details in the respective fields

Enter the detail in the respective field

Enter whether this vendor is approved or on Probation

No need to enter in the below screen.

1.1.4.2

Accounting Data

Enter the appropriate Reconciliation Accounts (Various Accounts given below)

Reconciliation Accounts:

Enter the appropriate Payment Terms and Select the Chk double inv Enter the appropriate Payment Methods C – Cheque, E – Cash Payment, T – Bank Transfer

The below screen is explained in detail in FI User Manual:

1.1.4.3

Purchasing Data

Enter the Order Currency, Terms of Payment and Incoterms

Enter the appropriate Schema group, Vendor (Various groups given below)

1. Select GR-based Inv. Verf if Invoice verification is done after GR 2.. Select the Srv-based Inv. Verf if Invoice Verification is done after Service Entry sheet.

Schema group, Vendor: DM IM

Domestic Schema Import Schema

Enter the Partner for the appropriate Partner Functions

Press

to save the Vendor master and the no is generated automatically.

1.1.5 Purchasing Info Record

Menu Path

T Code

SAP Easy Access
Logistics
Materials Management
Purchasing
Master Data
Info Record
Create ME11 – Create ME12 – Change ME13 - Display

You use this component if you wish to store information on a vendor and a material as master data at purchasing organization or plant level. You can create purchasing info records for different procurement types (standard, subcontracting, pipeline, consignment).

Enter the Info Category as 1. Standard – For normal Procurement (Domestic, Import, etc) 2. Sub-Contracting – For Sub-Contracting

Press enter the details in the Purchasing Info Record.

If the message is displayed like this, intimate the Quality Person to maintain the QM Info Record (TCode: QI01)

No need to enter anything in the below screen as it copies all the data from the Vendor Master.

It is defaulted from the Material Master but change for this Vendor-Material combination if different. Enter the Standard Quantity Enter the appropriate Tax Code It is defaulted from the Material Master but change for this Vendor-Material combination if different. Enter the Net Price

It is defaulted from the Material Master but change for this Vendor-Material combination if different.

1.1.5.1

Result Purchasing Info Record is created

1.1.5.2

Example Purchasing Info Record 5300000384 is created.

1.1.6 Source List Menu Path

T Code

SAP Easy Access
Logistics
Materials Management
Purchasing
Master Data
Source List
Maintain ME01 – Maintain ME03 – Display ME04 - Changes

Enter the Material No. and Plant

Select if the Vendor is fixed

Select if the Vendor is blocked for Procurement for this particular material alone

Enter 1 to be included in MRP Run Maintain the Validity Period till until which you will procure this material from this vendor

Result: Source List changed.

Enter the Vendor and Purchasing Organisation

1.1.7 CIN Master Data Menu Path T Code

1.1.7.1

J1ILN
SAP Menu
Indirect Taxes
Master Data
Excise Rate Maintenance J1ID

Chapter IDs

Select Chapter ID and Press

Press New Entries to Create New Chapter ID

Press New Entries to go to the next screen.

Enter the Chapter ID

Enter the Description as per law

Press

to save the data.

1.1.7.2

Material ID and chapter ID combination

Select the Material and Chapter-Id Combination

Select Material and Chapter ID Combination and Press

Press New Entries to Create New Material Number and Chapter ID

Enter the Material No. and Chapter ID Combination

Enter the material type based on the Material Nature

Press

to save the data.

1.1.7.3

Vendor Excise Details

Either you can maintain here or else in Vendor Master.

Select the Vendor Excise Details

Press New Entries to Create Vendor Master Excise

Press

to save the data.

1.1.7.4

Excise Indicator for Plants

Select the Excise Indicator for Plant

Select Excise Indicator for Plant and Press

Press New Entries to Create Plant Excise

Press

to save the data.

1.1.8 Excise Condition Record 1.1.8.1

Use When you enter a purchasing document, for example, a purchase order, the R/3 System automatically calculates the applicable excise duties using the condition technique.

1.1.8.2

Procedure

1. Access the transaction choosing one of the following navigation options: SAP R/3 menu

No Menu path available for this transaction

Transaction code

FV11

2. Enter the appropriate Condition type (various condition types given in next page) and maintain the respective values.

Enter the appropriate condition type

Various combinations to maintain the condition record

For Raw Material / Packing Material maintain the Plant/Vendor/Material Combination. For Service Tax /Assets maintain the Plant/Material Group Combination. .

Enter the Plant and Vendor

Enter the Material No.

Enter the Value / amount

3. Press Ctrl+S or 4.

1.1.8.3

Result Condition records saved.

1.2

Request for Quotation (RFQ)

1.2.1 Use Request for Quotation is used to float enquiries in market to obtain quotations from prospective vendors. This transaction is optional for the process.

1.2.2 Procedure 1. Access the transaction choosing one of the following navigation options: SAP R/3 menu

Logistics
Material Management
Purchasing
RFQ/quotation
Request for Quotation
Create

Transaction code

ME41

2. RFQ can be created with reference to Purchase Requisition, Outline Agreement (Contract) and another RFQ. 3. On the Create RFQ: Initial Screen, make the following entries:

1. Enter the RFQ type as “AN” 2. Enter the Quotation Deadline 3. Enter Purch. Organisation as 1101 4. Enter the respective Purchasing group

Press this button to enter the Collective No and Vendor Reference

Enter the Submission date

Enter the appropriate Item category for SubContracting & Service

1. Enter the Material No 2. Enter the RFQ Quantity 3. Enter the Deliv. Date 4. Enter the Plant if it is Plant specific

4. Choose (header details icon) on the toolbar, then on screen Create RFQ: Header Data, enter information in the fields as specified in the table below:

Press this button to enter the vendor code for which it has to be sent?

Enter the Collective No to have a track of all RFQs related to particular instance

Enter the Your Reference if any reference given by the vendor

(vendor address button) on the toolbar, then on screen Create RFQ: Vendor Address, enter 5. Choose information in the fields as specified below:

After entering the vendor code and pressing enter the details of vendor will be displayed automatically.

6. Press to Save the RFQ. This will refresh the Create RFQ: Vendor Address screen to allow creation of the same RFQ data to a new vendor by following the steps outlined above.

1.2.3 Result RFQ created Similarly create for other vendor in the same screen and various RFQ Nos will be generated

1.2.4 Example RFQ created under the number 6000000000.

1.3

Message output: RFQ

1.3.1 Use A RFQ needs to be printed for transmitting to vendor. This transaction is optional for the process.

1.3.2 Procedure 1. Access the transaction choosing one of the following navigation options: SAP R/3 menu

Logistics
Materials Management
Purchasing
RFQ/Quotation
Request for Quotation
Messages
Print/Transmit

Transaction code

ME9A

2. On the Message Output screen, make the following entries:

Enter the RFQ Nos to be printed and Execute (F8) Press this button to Execute

Select the check box

For Printout click this button which will create Spool Request.

For Print Preview click this button

For Direct Printout click this button

You will see out put as

1.4

Maintaining Quotation

1.4.1 Use This transaction is used to maintain the quotation, which is submitted by vendors. Vendor communicates price for material and as a result the RFQ (Request for Quotation) needs to be updated. This transaction is optional for the process.

1.4.2 Procedure 1. Access the transaction choosing one of the following navigation options: SAP R/3 menu

Logistics
Materials Management
Purchasing
RFQ/quotation
Quotation
Maintain

Transaction code

ME47

2. On the Maintain Quotation: Initial Screen, make the following entries:

green Enter icon to proceed. 3. Choose the Enter key, or choose 4. View the screen “Maintain Quotation: Header Data” by Choosing on the Header data icon in the toolbar.

5. Enter information in the fields as specified in the table below. Some fields will not be available for input, as they are reference fields only.

2. Press to enter the conditions

1. Press to select the line

6. Once all necessary header data has been maintained, the user can then enter the price information in one of two fashions:

Enter the Conditions given by vendor.

a. Enter the price in the Net Price field on the Maintain Quotation: Item Overview screen by Choosing overview icon on toolbar. b. To enter more detailed information in addition to the net price, select the line item and choose the Item Details icon. Choose the green Back arrow to return to the ‘Overview’ screen once data has been maintained. i. A vendor’s quoted price can be entered in one of two ways.

ii. Enter the net price per unit in the Net price field. This price includes the vendor's normal discounts and surcharges only. Cash discounts (for prompt payment) and taxes are calculated separately. iii. Enter the gross price in the Net price field, and maintain the conditions for the item. Then the system automatically replaces the entered gross price with the calculated net price. If the net price for an item is entered for which pricing conditions have been maintained, the system always replaces the price entered with the calculated net price. iv. Enter the Tax Code for any relevant taxes (for example, Excise Duty, Sales Taxes etc.) in the Tax code field. If a purchase order is created by referencing an RFQ, this code facilitates the determination of the tax amount when the invoice is entered in the system. v. After entering tax code, after choosing this system may give an information message showing the effective price, Choose Enter to continue.

7. Once all quotation information has been successfully entered, save the data by Choosing on the Save button, or Choose the keys. A message will be displayed that the data has been saved.

1.4.3 Result Quotation is maintained.

Maintain the same for other RFQs.

1.4.4 Example Quotation for RFQ 6000000000 maintained.

1.5

Price Comparison

1.5.1 Use Required to compare prices from all quotations received as a result of a competitive bidding process. This transaction is optional for the process.

1.5.2 Procedure 1. Access the transaction choosing one of the following navigation options: SAP R/3 menu

Logistics
Materials Management
Purchasing
RFQ/Quotation
Quotation
Price Comparison

Transaction code

ME49

2. On the Price Comparison List screen, make the following entries:

Enter the Purchasing Organisation

Enter the Quotations to be compared or the Collective RFQ

Parameters included for Comparison

a. Choose the comparison values to be used: i. Reference quotation: You can compare the quotations within the list with a sample quotation. The system displays the percentage deviation between each quotation in the list and the sample quotation. ii. Mean/minimum value quotation: The price comparison list can also display a "fictitious" quotation reflecting the average or minimum value of all quotations. Select either the "Mean value" or "Minimum value" quotation field to choose the type of fictitious quotation. iii. Percentage basis: The price comparison list displays the percentage of each item in relation to the maximum, minimum, or average price. To determine the display type, enter one of the following: +: The highest value for each item is the 100% value -: The lowest value for each item is the 100% value _: The mean value for each item is the 100% value b. Select the desired price computations:

i. Select the appropriate field to determine which of the following should be included in the determination of the comparison price: i. Include cash discounts ii. Include delivery costs iii. Determine effective price 3. Once all entries have been made, Choose the Execute. 4. On screen “Price Comparison List in Currency INR”, view the Price Comparison list.

Rank is generated automatically

Mean and Effective Price is highlighted

5. To view any of the following information for a particular quote included in the comparison, Choose the RFQ number with the mouse to select it, then Choose the appropriate icon/button on the menu toolbar: 6. Display Material: Allows the user to view the purchasing data in the material master record. 7. Display Vendor: Allows the user to view the vendor master record. 8. Additional Info: Allows the user to view payment terms, bid dates, currency information for all the vendor quotations in the list. 9. If any information has been modified through the comparison list, save the RFQ before exiting. If changes have been made and the user attempts to exit without saving, the system will return a message to verify action. 10. To exit the transaction, choose the green Back arrow, the yellow Exit arrow, or Choose the F3 button.

1.5.3 Result Price Comparison List in Currency INR is displayed on the screen.

1.6

Creating Purchase Requisition

1.6.1 Use A Purchase Requisition is created to indicate purchase department to procure materials or services with details like how much quantity is required, when required. Generally it is created automatically for Raw materials and Packing Materials through MRP Run and Spares and Service related to Plant Maintenance Purchase Requisition is generated automatically from Plant maintenance Order. This transaction is optional for the process.

1.6.2 Procedure 1. Access the transaction choosing one of the following navigation options: SAP R/3 menu

Logistics
Materials Management
Purchasing
Purchase Requisition
Create

Transaction code

ME51N

2. On the Create Purchase Requisition screen, make the following entries:

Enter Material No.

Enter required Quantity

Enter the Desired Vendor if Vendor is known to the person who is creating PR

Press

or Ctrl+S to Save the Purchase Requisition.

1.6.3 Result 1.6.4 Example Purchase requisition number 0010000000 created.

1.7

Release Purchase Requisition

1.7.1 Procedure 1. Access the transaction choosing one of the following navigation options: SAP R/3 menu

Logistics
Materials Management
Purchasing
Purchase Requisition
Release
Individual Release

Transaction code

ME51N

Click Other Purchase Requisition

Enter PR No.

Click This Icon to Release PR

Click This Icon to Release

Click This Icon to Save

1.8.

Assign and Process Purchase Requisition

1.8.1 Use a) This section explains the functions provided by the SAP System for converting requisitions into external purchasing documents (purchase orders, contract release orders, scheduling agreement delivery schedules, RFQs), and the processing options thereby available to you: • o

Assigning means defining the desired source for each purchase requisition item Further processing involves generating lists of requisitions that have been assigned or flagged as outlined above, and the subsequent creation of RFQs, purchase orders, or lines of delivery schedules under scheduling agreements.

Procedure 2. Access the transaction choosing one of the following navigation options: SAP R/3 menu

Logistics
Materials Management
Purchasing
Purchase Requisition
Follow-On Functions
Assign and Process

Transaction code

ME57

3. The assignment of sources to and further processing of purchase requisitions are two distinct functions. You can choose whether you wish to perform the functions in two separate steps or in just one. 4. Below are the Selection Parameters to restrict the process of PO from PR

1. Enter the appropriate Purchasing Group 2. Enter the Scope of List as B1 for PR generated through MRP Run and A for remaining PR 3. Enter the appropriate Plant

1. Select the Assigned Purchase Requisition (For Spares PR normally the End User may have entered the Vendor in the PR) 2. Select the appropriate Check boxes for Processing the PR

5. Press

or F8 to enter into the next screen.

1. If Source List is available click this button

1. Select the check boxes required PR which are to be converted in to Pos.

After assigning the source click on to this button to process the PO or else save for the assignment of source

1. Since only one source is assigned in Source list system assigns the source automatically or else if more than one source available a Pop-up window will be coming where one vendor has to be selected.

6. O is explained in next chapter.

1.8.3 Result The source is assigned to PR and can be processed for PO.

1.9 Purchase Order 1.9.1 Use A purchase order is a legal document used to record an individual purchase with the vendor. It also provides the vendor with a reference document to link to shipping (goods receipt) and invoicing (invoice verification) processes. The purchase order is a commitment to a vendor for a given material, in a specified quantity at a predetermined price and delivery date. This transaction is mandatory for the process.

Please ensure that Purchase Order Value does not exceed specified value and if the purchase order value crosses this limit a release procedure is applied on this purchase order. To release the Purchase Order go to ME28 for collective release and ME29N for individual release.

1.9.2 Procedure 1. Access the transaction choosing one of the following navigation options: SAP R/3 menu

Logistics
Materials Management
Purchasing
Purchase Order
Create
Vendor/Supplying Plant Known

Transaction code

ME21N

2. If you want create purchase order with reference to the purchase requisition, on item details screen enter the purchase requisition number and item number at Purch. Req. field. System will automatically adopt all the data from requisition.

Click the Purchasing Requisitions and Press Adopt

Press this button to view the Tax Calculation

Press this button to view the message

Check the PO before Saving

1.9.3 Result Purchase Order is created.

1.9.4 Example Standard PO created under the number 210000000.

1.10. Release Purchase Order 1.10.1. Procedure Access the transaction choosing one of the following navigation options: SAP R/3 menu

Logistics
Materials Management
Purchasing
Purchase Order
Release
Individual Release

Transaction code

ME29N

Click Other Purchase Order

Enter PO No.

Click This Icon to Release PR

Click This Icon to Release

Click This Icon to Save

1.11Message Output 1.11.1 Use A Purchase Order needs to be printed for transmitting to vendor.

Procedure 2. Access the transaction choosing one of the following navigation options: SAP R/3 menu

Logistics
Materials Management
Purchasing
Purchase Order
Messages
Print/Transmit

Transaction code

ME9F

3. On the Message Output screen, make the following entries

4. Choose

to Execute.

5. On screen Message Output select the appropriate Document number and perform the following:

Choose Output Message and/or Choose Display Message and/or Choose Message Detail and/or Choose Trial Printout.

1.12 Goods Receipt for Purchase Order 1.12.1 Use Goods are received from the Vendor as a result of a Purchase Order at the receiving plant. A goods movement is entered into the system referencing this PO and a goods receipt material document is posted. Appropriate general ledger accounts are also posted and stocks are updated.

1.12.2 Prerequisites Purchase Order

1.12.3 Procedure 1. Access the transaction choosing one of the following navigation options:

2.

SAP R/3 menu

Logistics
Materials Management
Inventory Management
Goods Movement
Goods Receipt
For Purchase Order
PO Number Known

Transaction code

MIGO

On the Goods Receipt Purchase Order screen, make the following entries: Check for correct movement type whenever doing goods movement

Enter the Purchase Order No and Press Enter

3.

After pressing Enter system will fetch all the data from the Purchase Order as shown below:

Whichever material is in Blue those detail will be seen in the Item detail

4.

System defaults the balance quantity in PO, change the quantity to the received quantity:

Enter the Storage Location in which the material to be placed.

Enter the Delivery Note details of the vendor

Select Item Ok and Press Enter and the Excise tab will appear both in Header and Item Level

Field name

Description

R/O /C

User action and values

Goods Receipt

Goods Receipt

R

Select from drop down list for action

Purchase Order

Purchase Order

R

input the PO number which generated above 4500000277

Movement Type

Comment

101 Enter

Document Date

Document Date

R

Enter document date

Delivery Note

in Header

O

Delivery Number from Vendor

Vendor

Vendor

R

Defaulted from purchase order

Posting Date

Posting date

R

Enter posting date

Bill of lading

Bill of lading

O

Enter bill of lading

Header text

Header text

O

Enter header text

Grayed out

Close Header Detail data to enlarge the Detail data. Select Material tab at Detailed Data. Material

Material tab

R

Defaulted from Purchase Order

Grayed out

Enter the quantity you have received from vendor. As a default system will give purchase order quantity Enter the quantity as per vendor delivery challan

Quantity defaulted from Purchase Order

Select Quantity tab in Detail data. Qty in unit of entry

Quantity in unit of entry

R

Qty in delivery note

Quantity in delivery note

O

Select Where tab in Detail data. Movement type

Movement type

R

Defaulted from header screen

Stock type

Stock type

R

Plant

Plant

R

Storage location

Storage location

R

Goods Recipient

Goods Recipient

O

Defaulted from material master or purchase order Defaulted from purchase order 1000 Defaulted from purchase order if entered 1010 Enter the name of person who received goods

Unloading point

Unloading point

O

Text

Text

O

Enter the text if required

Select Purchase Order tab in Detail data. Purchase Order

Purchase Order

R

Defaulted from header data

Del. completed ind.

Delivery completion indicator

O

Defaulted by system if PO Qty = GR Qty

O

Grayed out

Grayed out

Select Partner tab in Detail data. Vendor

Vendor name

For this material batch management is not active. Just for reference purpose the following data is given. Select Batch tab in Detail data.

This tab will come only if material is managed in batches. Proceed with the following steps if material is batch managed only. Batch

Batch number

R

Vendor batch

Vendor batch

O

Enter batch number as date for batch managed materials Enter vendor batch number for reference

5. Select the Check box Item OK, after entering all the data.

You will get Excise Invoice tab at Header Data for capturing vendor excise invoice details and for posting Part I and Part II.

6. On the Excise Invoice tab at Header Data make the following entries.

Select Appropriate Excise settings While posting in Case of dealer only

System defaults the Excise Duty (BED & ECS) and in case

Field name

Description

R/O/C

User action and values

Comment

Capture & Post Excise invoice

Capture & Post Excise Invoice on Excise Action

R

Choose Capture & Post Excise Invoice from drop down list

Defaulted

Excise Group

Excise Group

R

Defaulted by the system

Excise Invoice

Excise invoice

R

Enter the vendor Excise Invoice number For example: D013

Excise Inv. Date

Excise Invoice Date

R

Enter the excise invoice date of vendor

BED

Basic Excise Duty

R

Defaulted from purchase order

Grayed out

AED

Additional Excise Duty

R

Defaulted form purchase order

Grayed out

SED

Special Excise Duty

R

Defaulted from purchase order

Grayed out

NCCD

NCCD

R

Defaulted from purchase order

Grayed out

ECS

Education Cess

R

Defaulted from purchase order

Grayed out

MRP Indicator

MRP Indicator

O

Tick the check box Note: If the Base Price in PO is the inclusive of both the Material Cost and Excise Value choose the check box

Close Header Detail data to enlarge the Detail data. Select Excise Item tab at Detailed Data (at the last). Chapter ID

Chapter ID of material

R

Defaulted by the system No action required

EI Quantity

Excise Invoice Quantity

R

Defaulted by the system from Goods Receipt quantity

Base Value

Base value of material

R

Defaulted by the system

BED

Basic Excise Duty

R

Defaulted by the system

AED

Additional Excise Duty

O

Defaulted by the system

NCCD

NCCD

O

Defaulted by the system

SED

Special Excise Duty

O

Defaulted by the system

ECS

Education Cess

O

Defaulted by the system

Please cross check the BED, AED, SED, NCCD and ECS amount of item as per the Vendor Excise Invoice, legally you cannot avail more than what mentioned in Vendor Excise Invoice. All other information is defaulted by the system. Hence, no action required by the user.

6. Choose Check at the top of screen. 7. Choose Post to post the document.

Enter Excise Invoice No. and Date vendor

Also See the account postings

1.12.4 Result Material document 5000000009 posted 1.12.5 Example Material document 5000000009 posted

1.13 Logistics Invoice Verification 1.13.1 Use In this process of Logistics Invoice Verification all the Incoming Invoices are verified in terms of their content, prices and arithmetic. When the invoice is posted, the invoice data is saved in the system. The system updates the data saved in the invoice documents in Materials Management and Financial Accounting.

1.13.2 Procedure 1. Access the transaction choosing one of the following navigation options: SAP R/3 menu

Logistics
Materials Management
Logistics invoice Verification
Document Entry
Enter Invoice

Transaction code

MIRO

2. If you are opening for the first time this transaction, system will ask for Company Code, please give 1000 to go in side the transaction. 3. On the Enter Incoming Invoice: Company Code 1000 screen, make the following entries:

Enter Invoice Date

Change Defaulted V0 Tax code and tick Calculate tax tab

Enter the PO No.

If Part II entry is not done then system will not allow you to POST Invoice

Unless and until you post part2 system will not allow invoice verification

Enter the amount

Field name

Description

R/O /C

User action and values

Comment

Transaction

Invoice

R

Select Invoice from drop down list

Header Data

Header data of Invoice

R

Defaulted by system

Basic tab

Basic information tab

R

Select basic information tab to give initial information

Invoice Date

Invoice Date

R

Enter the Vendor invoice date

Reference

Invoice reference

O

Enter the vendor invoice reference For Example USERMANUAL

Posting date

Posting Date

R

Enter the posting date of document

System will give current date as default

Amount

Invoice Amount

R

Enter invoice gross amount including taxes and duties 299,960.20

Amount mentioned is only an example

Currency

R

Enter the currency in which the bill is presented by vendor, if not entered by user system will default the document currency from purchase order INR

Check box calculate tax

O

Check this tick box, system will calculate tax amount

Tax code

R

Select the tax code from drop down list V1

Bus.place/se ctn

Business place or section code

R

Enter section code if Tax deduction for source is active for this vendor

Text

Text

O

Enter text if required for reference

Payment tab

Payment tab

R

Select payment details tab

BaselineDt

Base line date for payment

R

Enter the base line date for payment

Pmnt terms

Payment terms

O

Payment terms of document, if entered will be defaulted from purchase order

Due on

Payment due on

O

Will be calculated by system

Calculate tax

Leave blank for this process

Will be defaulted if payment terms entered in PO

Grayed out

Discount

Cash discount

O

Enter if cash discount is offered by vendor

Hide Header data for getting full screen of items if required.

Layout

Purchase order / Schedule Agreement

R

Select Purchase order / Schedule Agreement in the reference document category from drop down list

Purchase order number

R

Enter the first purchase order number generated above

Goods / service items

R

Select Goods / Service items in indicator from drop down list

Layout of invoice verification

R

Select All information from drop down list

Defaulted for user

Defaulted

Choose Enter 4. Choose Enter to complete the document feeding part. 5. To check the document credit and debit is balanced on the top right corner of your screen a traffic light is displayed. Beside that Balance of the document is displayed.

Ensure that the Balance is ZERO before posting the document and the traffic light is green or yellow color. 6. If you want to see the accounting postings in simulation mode, Choose Simulation on middle of fourth row of your screen.

Check Simulate Tab

7. Choose Save / Post, for posting the document.

1.13.3 Result Logistics Invoice verification document is posted.

1.13.4 Example Document no. 5105600102 created

1.14 Returning Delivery 1.14.1 Use A material has been received and it needs to be returned for various reasons (i.e. poor quality, incomplete, damaged). The user can use this transaction to return the material to the vendor via the original GR document. This transaction itself is an independent transaction and it is not mandatory in J81 process. This Return Delivery transaction is used only when material is rejected and needs to be returned to vendor. If material is rejected by using QM process there is no need to this transaction. This transaction can be used only without QM process materials.

This transaction is used basically when purchased material is needs to be sent back to vendor because of various reasons like poor quality, incomplete items, damaged etc. b) Bore proceeding with return delivery to vendor please ensure that sufficient stock is available in storage location and if batch managed in particular batch stocks also. Other wise system will give error message.

Before doing Return Delivery to vendor, check if you have already done Invoice Verification to that Goods Receipt. If you have already done invoice verification please raise Credit Memo to the extent of Returns quantity and then proceed with this process. Other wise system will give an error message. How to create Credit Memo transaction is explained in the chapter mentioned 1.17 below.

1.14.2 Procedure 1. Access the transaction choosing one of the following navigation options: SAP R/3 menu

Logistics
Materials Management
Inventory Management
Goods Movement
Goods Receipt
For Purchase Order
PO Number Known

Transaction code

MIGO

2. Select Return Delivery from drop down list to make Return Delivery to vendor.

3. On the Return Delivery Material Document screen, make the following entries:

Enter the quantity to be returned to vendor

Select Blocked Stock to Return the rejected Material

Enter the appropriate Reason for Movement

Field name

Description

R/O /C

User action and values

Return Delivery

Return Delivery

R

You have already selected in above step 2

Material Document

Material Document number

R

Select from drop down list 5000000189 Enter the material document number which you have made at the time of Goods Receipt for purchase order

Enter Document Date

Document Date

R

Enter document date

Delivery Note

in Header

O

Delivery Number. Will be defaulted if you have already entered in original document

Posting Date

Posting date

R

Enter posting date

Comment

Bill of lading

Bill of lading

O

Enter bill of lading.

Header text

Header text

O

Enter header text

Via Delivery

Via Delivery

R

Tick the check box

Close Header Detail data to enlarge the Detail data. Select Material tab at Detailed Data. Material

Material tab

R

Defaulted from Purchase Order

Grayed out

Qty in unit of entry

Quantity in unit of entry

R

You can not return more than what you have in stock

Qty in delivery note

Quantity in delivery note

O

Enter the quantity you want to return to vendor. As a default system will give original Goods Receipt quantity 5000 Enter the quantity 100000

Movement type

Movement type

R

Defaulted by the system with 122 movement

Stock type

Stock type

R

Plant

Plant

R

Storage location

Storage location

R

Goods Recipient

Goods Recipient

O

Enter stock type from drop down list Defaulted from original Goods Receipt 1000 Enter the store location from which you want to return to vendor Enter the name of person who received goods

Unloading point

Unloading point

O

Reason for Movement

Reason for Movement

R

Text

Text

O

Select Quantity tab in Detail data.

Select Where tab in Detail data.

Grayed out

Select from the drop down list the reason for this movement of material 0001 Enter the text if required

Select Purchase Order tab in Detail data. Purchase Order

Purchase Order

R

Defaulted from header data

Grayed out

Del. completed ind.

Delivery completion indicator

R

Defaulted from purchase order

O

Grayed out

Select Partner tab in Detail data. Vendor

Vendor name

Select Batch tab in Detail data. This tab will come only if material is managed in batches. Proceed with the following steps if material is batch managed only. Batch

Batch number

R

Vendor batch

Vendor batch

O

Enter batch number if externally maintained by you or system will allocate batch number Enter vendor batch number for reference

Enter the Goods Issue Indicator as IPD

Enter the Sub type as PR for Vendor Returns

Field name

Description

R/O /C

User action and values

Comment

Select Create Excise Invoice

Select Create Excise Invoice

R

Choose Create Excise Invoice from drop down list

Select from drop down list

Excise Group

Excise Group

R

Defaulted by the system

Series Group

Excise Series group

R

Defaulted by the system

Removal time

Removal time of goods

R

System defaults current time, change if required

BED

Basic Excise Duty

R

Defaulted from purchase order

Grayed out

AED

Additional Excise Duty

R

Defaulted form purchase order

Grayed out

SED

Special Excise Duty

R

Defaulted from purchase order

Grayed out

Close Header Detail data to enlarge the Detail data. Select Excise Item tab at Detailed Data (at the last). Chapter ID

Chapter ID of material

R

Defaulted by the system No action required

EI Quantity

Excise Invoice Quantity

R

Defaulted by the system from return delivery document 2

Base Value

Base value of material

R

Defaulted by the system

BED

Basic Excise Duty

R

Defaulted by the system

Goods Issue Indicator

Goods Issue Indicator

R

Select from drop down list IPD for this process

Please cross check the BED, AED, SED, NCCD and ECS amount of item as per the Vendor Excise Invoice, legally you cannot avail more than what mentioned in Vendor Excise Invoice. All other information is defaulted by the system. Hence, no action required by the user. 4. Choose Check at the top of screen. 5. Choose Post to post the document.

1.14.3 Result Return Delivery document created 1.14.4 Example Return Delivery Document No. 50000000011 created. Note: Excise Invoice for Return delivery also will be generated in the back ground for this transaction

1.15 Excise Invoice Other Movements

1.15.1 Procedure 1. Access the activity choosing one of the following navigation options: SAP CIN R/3 User menu Transaction Code

Indirect taxes Sales / Outbound Movements Excise Invoice For Other Movements Excise Invoice for Other Movements J1IS

2. On the Excise Invoice Other Movements – Main Menu screen, make the following entries: 3. Choose Display Excise Invoice icon to start the transaction Enter the Sub type as PR for Vendor Returns

Field name Reference Doc Number

Description

R/O/C

User action and values

Document Number

R

Doc Year

Document year

R

Enter the return delivery document number which you have created in above step 0000000126 Enter the year of document created Example: 2006

Enter

Comment

1.15.2 Result Excise invoice generated is displayed.

1.15.3 Example Excise invoice 0000000014 generated and displayed.

1.16 Posting and Printing the Excise Invoice 1.16.1 Use Excise Invoice has to be printed and sent along with the material. This is legal requirement in India.

1.16.2 Prerequisites Excise Invoice Document is generated and posted.

1.16.3 Procedure 1. Access the transaction choosing one of the following navigation options: SAP CIN R/3 User menu

Indirect taxes
Sales / Outbound Movements
Excise Invoice
For Other Movements
Post and Print

Transaction code

J1IV

2. On the SAP screen, make the following entries: 3. If the document is not posted in step mentioned above, Choose Release to Accounting to post Financial Accounting document.

This transaction is used to just printing of excise invoice. 4. Follow the steps mentioned below for taking print of Excise Invoice. Field name

Description

R/O /C

User action and values

Comment

Excise internal reference Select internal excise invoice number from drop down list, you can find it with reference to the Excise Invoice number generated in above step 1100400070 for example with the combination of Excise Group 10 and vendor code 10006. Document No.

Document Number

R

Enter the Excise Invoice Document Number generated in above step For example: 127

Document year

Document Year

R

Enter the document year 2006

5. To take printout, select Goto from the top main menu and select Print Document from the list. Or Choose Control + P to get the access of Excise Invoice Printing screen.

6. Choose Execute icon to get list of excise invoice ready to be printed.

7. From the list select the excise invoice number by choosing the check box left side of number. 8. To take printout on printer Choose the Printer icon or Choose F8.

9. To display excise invoice on screen Choose Display icon or Choose F9. 10. System will give popup asking for pre-printed invoice serial number, Enter pre-printed excise invoice number. In this process Choose 99 for testing purpose (since it is not expected to have pre-printed invoice for testing purpose). 11. Select printer from the drop down list. Check box for Print Immediately and New spool request. 12. Choose Print Preview or Print icons to display on screen or to print on printer mentioned above. 13. If printer is connected system will print the document on printer.

1.16.4 Result Excise Invoice is printed.

1.17 Credit Memo 1.17.1 Use In this process of Logistics Invoice Verification a credit memo is generated on vendor. Please be careful that during the total process after making logistics invoice verification you have made return delivery to vendor. To recover that money you need to do this credit memo transaction.

1.17.2 Prerequisites •

Logistic Invoice Verification is already made

1.17.3 Procedure 1. Access the transaction choosing one of the following navigation options: SAP R/3 menu

Logistics
Materials Management
Logistics invoice Verification
Document Entry
Enter Invoice

Transaction code

MIRO

2. If you are opening for the first time this transaction, system will ask for Company Code, please give 1000 to go in side the transaction.

3. On the Enter Incoming Invoice: Company Code 1000 screen, make the following entries:

Select Credit Memo in this tab

Put the Qty and Price to be returned

Field name

Description

R/O /C

User action and values

Comment

Transaction

Credit memo

R

Select Credit memo from drop down list

Header Data

Header data of Invoice

R

Defaulted by system

Basic tab

Basic information tab

R

Select basic information tab to give initial information

Invoice Date

Invoice Date

R

Enter the Vendor invoice date

Reference

Invoice reference

O

Enter the vendor invoice reference

Posting date

Posting Date

R

Enter the posting date of document

Amount

Credit memo Amount

R

Enter invoice (credit memo) gross amount including taxes and duties

Currency

R

Enter the currency in which the bill is presented by vendor, if not entered by user system will default the document currency from purchase order

Check box calculate tax

O

Check this tick box, system will calculate tax amount

Tax code

R

Select the tax code from drop down list

Bus.place/se ctn

Business place or section code

R

Enter section code if Tax deduction for source is active for this vendor

Text

Text

O

Enter text if required for reference

Payment tab

Payment tab

R

Select payment details tab

BaselineDt

Base line date for payment

R

Enter the base line date for payment

Pmnt terms

Payment terms

O

Payment terms of document, if entered will be defaulted from purchase order

Due on

Payment due on

O

Will be calculated by system

Discount

Cash discount

O

Enter if cash discount is offered by vendor

Calculate tax

System will give current date as default

Leave blank for this process

Will be defaulted if payment terms entered in PO

Grayed out

Hide Header data for getting full screen of items if required. Purchase order /

R

Select Purchase order /

Defaulted for

Schedule Agreement

Layout

Schedule Agreement in the reference document category from drop down list

Purchase order number

R

Enter the purchase order number

Goods / service items

R

Select Goods / Service items in indicator from drop down list

Layout of invoice verification

R

Select All information from drop down list

user

Defaulted

Choose Enter 4. Choose Enter to complete the document feeding part. 5. To check the document credit and debit is balanced on the top right corner of your screen a traffic light is displayed. Beside that Balance of the document is displayed.

Ensure that the Balance is ZERO before posting the document and the traffic light is green or yellow color. 6. If you want to see the accounting postings in simulation mode, Choose Simulation on middle of fourth row of your screen.

7. Choose Save posting the document.

1.17.4 Result Logistics Invoice verification document is posted.

1.17.5 Example Document no. 5105600791 created

1.18 Reversals / Cancellation of Invoice or Credit Memo 1.18.1 Use Invoice documents in Invoice Verification are either invoices or credit memos. These documents can be cancelled. There are two different cases:

• •

If an invoice is cancelled, the system automatically creates a credit memo. If a credit memo is cancelled, the system automatically creates an invoice.

The system takes the amount and quantity for the credit memo or invoice from the invoice or credit memo to be cancelled, thus avoiding any differences between the invoice and the credit memo or the credit memo and the invoice.

1.18.2 Prerequisites An invoice document can only be cancelled if: • • •

it was posted in Logistics Invoice Verification It has not already been cancelled It is not a cancellation document for another document

When you cancel documents in Logistics Invoice Verification, the document line items are not automatically cleared in Financial Accounting. We recommend that you periodically clear such items (using daily background jobs, for example).

1.18.3 Procedure 1. Access the transaction choosing one of the following navigation options: SAP R/3 menu

Logistics
Materials Management
Logistics invoice Verification
Further Processing
Cancel Invoice Document

Transaction code

MR8M

2. The initial screen for reversal appears.

3. In the fields Invoice doc. number and Fiscal year, enter the data for the invoice document you want to cancel. 4. In the Reversal reason field, select the reason for cancelling the invoice. This allows you to differentiate between different types of cancellations.

Enter the reversal reason

5. You can display the document to check. Choose Display document to do this. You can look at the items of the document to be cancelled. Return to the initial screen by choosing Back.

6. Choose Invoice document and reverse or Press Ctrl+S or

.

1.18.4 Result Document Reversed and Clear FI Documents Manually.

1.18.5 Example Document Reversed with no. 5105600114.

1.19 Reversals / Cancellation of Goods Receipt (GR) 1.19.1 Use When any data entered incorrect during GR posting it has to be reversed. To do the cancellation of GR, all the follow on documents should be reversed.

1.19.2 Prerequisites A GR can only be cancelled if: •

Invoice Verification posted if any should be reversed.

1.19.3 Procedure 1. Access the transaction choosing one of the following navigation options: SAP R/3 menu

Logistics
Materials Management
Inventory Management
Goods Movement
Goods Receipt
For Purchase Order
PO Number Known

Transaction code

MIGO

2. Choose Cancellation and enter the respective Material Document No. (GR No.)

3. Press enter so that all the data will be captured automatically by the system. If any comment is there to mention it can be mentioned in the Head Text and Text which is available at the Item level.

4. Press Enter to continue and check all the details

5. Select the Check box Item OK, after entering all the data. You will get Excise Invoice tab at Header Data and Item Details.

6. Choose Check at the top of screen.

7. Press Ctrl+S or

to post the document

1.19.4 Result Material document posted, please note the document number.

1.19.5 Example Material document 5000000020 posted

1.20 Reversing CENVAT Postings 1.20.1 Purpose When the Material Document is cancelled the CENVAT Posting should also be reversed or cancelled.

1.20.2 Prerequisites Material Document (GR) should be reversed.

1.20.3 Procedure 1.

Access the transaction choosing one of the following navigation options: SAP R/3 menu

Country India User Menu → Indirect Taxes → Procurement → Excise Invoice → Incoming Excise Invoice → Central Processing → Capture / Change / Cancel / Display / Post

Transaction code

J1IEX

2.

Select Post CENVAT.

3.

Select Vendor Excise Invoice.

4.

Enter the excise invoice number.

5.

Press Enter to continue

6.

Choose Simulate CENVAT

7.

A dialog box appears, showing which postings the system will make to reverse the CENVAT.

8.

Choose Post CENVAT.

1.20.4 Result CENVAT Posting Reversed.

1.20.5 Example CENVAT Posting Reversed with document no. 0000000008.

1.21 Canceling Excise Invoices 1.21.1 Purpose When the Material Document is cancelled the CENVAT Posting should also be reversed or cancelled.

1.21.2 Prerequisites • •

Material Document (GR) should be reversed. CENVAT Posting should be Reversed.

1.21.3 Procedure 1. Access the transaction choosing one of the following navigation options: SAP R/3 menu

Country India User Menu → Indirect Taxes → Procurement → Excise Invoice → Incoming Excise Invoice → Central Processing → Capture / Change / Cancel / Display / Post

Transaction code

J1IEX

2. Select Cancel. 3. Select Vendor Excise Invoice.

4. Enter the excise invoice number.

5. Enter the Rejection Code.

Enter the Rejection Code

6. Save the excise invoice.

7. Press Yes to Cancel the Excise Invoice.

1.21.4 Result Excise Invoice has been successfully cancelled.

1.21.5 Example Excise Invoice 0000000008 / 2008 ( 1234 ) has been successfully cancelled.

2

Procurement of Imported Materials – Business Process Procedure 2.1 Procurement of Imported Materials 2.1.1 Purpose This process Procurement of Imported Materials shows you how to handle the Countervailing duty (CVD) on imports, which is levied in place of excise duty. Unlike other forms of customs duties, such as basic customs duty or special customs duty, you can credit CVD paid on imports to your CENVAT account.

Prerequisites The following scenario specific master data must be created for operation of this building block and subsequent dependent building blocks. • Material Master record

(Refer User Manual – Procurement of Stock Materials (Domestic) • Vendor Master record

Ensure that GR based IV is not selected in Purchasing Data. (Refer User Manual – Procurement of Stock Materials (Domestic) • CIN Master Data

(Refer User Manual – Procurement of Stock Materials (Domestic)

2.2 Creating Purchase Order 2.2.1 Use A purchase order is a legal document used to record an individual purchase with the vendor. It also provides the vendor with a reference document to link to goods receipt and invoice verification processes. The purchase order is a commitment to a vendor for a given material, in a specified quantity at a predetermined price and delivery date.

2.2.2 Prerequisites

Before starting the process, please ensure the following information: • •

•

Commissioner of Customs is created as domestic vendor, for example: vendor code 600000 - RBI Commissioner in this process. In master record of main imported vendor GR-based invoice verification tick should not be there on Purchasing Data screen of vendor master. And Schema group, Vendor is filled with schema group ZI. For example vendor code 200000 in this process. These are basic master data changes with respect to this process only.

For all purchase order a release procedure is applied.

2.2.3 Procedure 5. Access the transaction choosing one of the following navigation options: SAP R/3 menu Transaction code

Logistics
Materials Management
Purchasing
Purchase Order
Create
Vendor/Supplying Plant Known ME21N

6. On the Create Purchase Order screen, make the following entries:

Put Doc Type as Import

Don’t Put Tick in GR Based

Mention Tax code as V0

7. For Basic Customs Duty(JCDB),CVD(JCV1),Addition Customs Duty(JADC),E-cess on CVD(JECV) E-Cess (JEDB)

Enter the Customs Duties in respective Condition type fields

Select Each Condition Type related to Customs and click this Details Button

. 8. To change the vendor for condition type select JCDB condition type and Choose on Condition detail icon located at left bottom side of your screen.

9. System will take to new Item – Conditions – Detail: screen. In this screen at right bottom of screen you can find the vendor code 60000 the main imported vendor is defaulted here. You have to replace this vendor code with respective vendors and Choose enter and green arrow to come back (F3) to condition tab of purchase order.

Change DS200 to DS250(appropriate vendor) for each condition types

10. Repeat the same for other condition types such as JCV1, JECV, JADC, and JEDB etc.

11. Purchase Order may be posted by Choosing on the Save icon.

2.2.4

Result A message will be displayed stating that the purchase order was saved, with the purchase order number, please note the purchase order number.

2.2.5

Example Standard PO created under the number 3100000000.

2.3 Release Purchase Order 2.3.1 Procedure 1. Access the transaction choosing one of the following navigation options: SAP R/3 menu

Logistics
Materials Management
Purchasing
Purchase Order
Release
Individual Release

Transaction code

ME29N

Click Other Purchase Order Enter PO No

Click This Icon to Release PR

Click This Icon to Release

Click This Icon to Save

2.4 Message Output 2.4.1

Use A Purchase Order needs to be printed for transmitting to vendor.

2.4.2

Procedure

8. Access the transaction choosing one of the following navigation options: SAP R/3 menu

Logistics
Materials Management
Purchasing
Purchase Order
Messages
Print/Transmit

Transaction code

ME9F

9. On the Message Output screen, make the following entries

10. Choose

to Execute.

11. On screen Message Output select the appropriate Document number and perform the following:

Choose Output Message and/or Choose Display Message and/or Choose Message Detail and/or Choose Trial Printout.

2.5 CAPTURING BILL OF ENTRY 2.5.1

Use

In this process of Logistics Invoice Verification all the Incoming Invoices are verified in terms of their content, prices and arithmetic. When the invoice is posted, the invoice data is saved in the system. The system updates the data saved in the invoice documents in Materials Management and Financial Accounting.

2.5.2

Procedure

7. Access the transaction choosing one of the following navigation options: SAP R/3 menu

Logistics
Materials Management
Logistics invoice Verification
Document Entry
Enter Invoice

Transaction code

MIRO

8. If you are opening for the first time this transaction, system will ask for Company Code, please give 1000 to go in side the transaction. 9. On the Enter Incoming Invoice: Company Code 1000 screen, make the following entries:

Choose Planned Delivery Costs

Enter the Amounts of the Customs Duties Manually in the Amount Column with referring to PO.

Field name

Description

R/O /C

User action and values

Comment

Transaction

Invoice

R

Select Invoice from drop down list

Header Data

Header data of Invoice

R

Defaulted by system

Basic tab

Basic information tab

R

Select basic information tab to give initial information

Invoice Date

Invoice Date

R

Enter the Vendor invoice date

Reference

Invoice reference

O

Enter the vendor invoice reference For Example USERMANUAL

Posting date

Posting Date

R

Enter the posting date of document

System will give current date as default

Amount

Invoice Amount

R

Enter invoice gross amount including taxes and duties 39.80

Amount mentioned is only an example

Currency

R

Enter the currency in which the bill is presented by vendor, if not entered by user system will default the document currency from purchase order USD

Check box calculate tax

O

Check this tick box, system will calculate tax amount

Tax code

R

Select the tax code from drop down list V0

Bus.place/se ctn

Business place or section code

R

Enter section code if Tax deduction for source is active for this vendor

Text

Text

O

Enter text if required for reference

Payment tab

Payment tab

R

Select payment details tab

BaselineDt

Base line date for payment

R

Enter the base line date for payment

Pmnt terms

Payment terms

O

Payment terms of document, if entered will be defaulted from purchase order

Due on

Payment due on

O

Will be calculated by system

Calculate tax

Leave blank for this process

Will be defaulted if payment terms entered in PO

Grayed out

Discount

Layout

Cash discount

O

Enter if cash discount is offered by vendor

Purchase order / Schedule Agreement

R

Select Purchase order / Schedule Agreement in the reference document category from drop down list

Purchase order number

R

Enter the first purchase order number generated above

Planned Delivery Costs

R

Select Planned Delivery Costs in indicator from drop down list

Layout of invoice verification

R

Select All information from drop down list

Defaulted for user

Choose Enter

10. Choose Enter to complete the document feeding part. 11. To check the document credit and debit is balanced on the top right corner of your screen a traffic light is displayed. Beside that Balance of the document is displayed.

Ensure that the Balance is ZERO before posting the document and the traffic light is green or yellow color. 12. If you want to see the accounting postings in simulation mode, Choose Simulation on middle of fourth row of your screen.

13. Choose Display Currency which will lead to small pop-up window having the company code currency and Document Currency, position the cursor on the INR to convert to Document Currency and press the details button.

8. Choose Save / Post, for posting the document.

2.5.3

Result Logistics Invoice verification document is posted.

2.5.4

Example Document no. 5105600121created

2.6 Goods Receipt for Imported Purchase Order 2.6.1

Use Goods are received from the Vendor as a result of a Purchase Order at the receiving plant. A goods movement is entered into the system referencing this PO and a goods receipt material document is posted. Appropriate general ledger accounts are also posted and stocks are updated.

2.6.2

Procedure

1. Access the transaction choosing one of the following navigation options: SAP R/3 menu

Logistics
Materials Management
Inventory Management
Goods Movement
Goods Receipt
For Purchase Order
PO Number Known

Transaction code

MIGO

2. On the Goods Receipt Purchase Order screen, make the following entries: Field name

Description

R/O /C

User action and values

Goods Receipt

Goods Receipt

R

Select from drop down list for action

Inbound Delivery

Purchase Order

R

Enter the Purchase Order No.generated above 3100000000

Movement Type

Comment

101 Enter

Since this is imported purchase order and you have already done invoice verification for planned delivery cost. System will give a new popup Excise Invoice item number screen (which is not there in normal other process) asking for Commercial invoice number and year. Please enter the invoice verification document number which you have done in above 5105600792 and year 2006.

3. Choose Enter where a small pop-up window will prompt to enter the Commercial Invoice No. and Year (i.e.,

the Invoice Verification posted for Bill of Entry)

Enter the No generated for the posting of Bill of Entry

4. After pressing Enter system will fetch all the data from the Purchase Order as shown below:

Whichever material is in Blue those detail will be seen in the Item detail

5. System defaults the balance quantity in Purchase Order.

Enter the storage location

Select Item Ok and Press Enter and the Excise tab will appear both in Header and Item Level

Field name

Description

R/O /C

User action and values

Goods Receipt

Goods Receipt

R

Select from drop down list for action

Inbound Delivery

Purchase Order

R

input the Purchase Order number which generated above 4500000059

Movement Type

Comment

101 Enter

Document Date

Document Date

R

Enter document date

Delivery Note

in Header

O

Delivery Number from Vendor

Vendor

Vendor

R

Defaulted from purchase order

Posting Date

Posting date

R

Enter posting date

Bill of lading

Bill of lading

O

Enter bill of lading

Grayed out

Header text

Header text

O

Enter header text

Close Header Detail data to enlarge the Detail data. Select Material tab at Detailed Data. Material

Material tab

R

Defaulted from Inbound Delivery

Grayed out

Enter the quantity you have received from vendor. As a default system will give purchase order quantity Enter the quantity as per vendor delivery challan

Quantity defaulted from Purchase Order

Select Quantity tab in Detail data. Qty in unit of entry

Quantity in unit of entry

R

Qty in delivery note

Quantity in delivery note

O

Select Where tab in Detail data. Movement type

Movement type

R

Defaulted from header screen

Stock type

Stock type

R

Plant

Plant

R

Storage location

Storage location

R

Goods Recipient

Goods Recipient

O

Defaulted from material master or purchase order Defaulted from purchase order 1000 Defaulted from Inbound delivery if entered 1010 Enter the name of person who received goods

Unloading point

Unloading point

O

Text

Text

O

Enter the text if required

Select Purchase Order tab in Detail data. Purchase Order

Purchase Order

R

Defaulted from header data

Del. completed ind.

Delivery completion indicator

O

Defaulted by system if PO Qty = GR Qty

O

Grayed out

Grayed out

Select Partner tab in Detail data. Vendor

Vendor name

For this material batch management is not active. Just for reference purpose the following data is given. Select Batch tab in Detail data.

This tab will come only if material is managed in batches. Proceed with the following steps if material is batch managed only. Batch

Batch number

R

Vendor batch

Vendor batch

O

Enter batch number as date for batch managed materials Enter vendor batch number for reference

7. Select the Check box Item OK, after entering all the data.

You will get Excise Invoice tab at Header Data for capturing vendor excise invoice details and for posting Part I and Part II. 8. On the Excise Invoice tab at Header Data make the following entries.

Field name

Description

R/O/C

User action and values

Comment

Capture & Post Excise invoice

Capture & Post Excise Invoice on Excise Action

R

Choose Capture & Post Excise Invoice from drop down list

Defaulted

Excise Group

Excise Group

R

Defaulted by the system

Excise Invoice

Excise invoice

R

Enter the vendor Excise Invoice number For example: 4500000059

Excise Inv. Date

Excise Invoice Date

R

Enter the excise invoice date of vendor

BED

Basic Excise Duty

R

Defaulted from purchase order

Grayed out

AED

Additional Excise Duty

R

Defaulted form purchase order

Grayed out

SED

Special Excise Duty

R

Defaulted from purchase order

Grayed out

NCCD

NCCD

R

Defaulted from purchase order

Grayed out

ECS

Education Cess

R

Defaulted from purchase order

Grayed out

Close Header Detail data to enlarge the Detail data. Select Excise Item tab at Detailed Data (at the last). Chapter ID

Chapter ID of material

R

Defaulted by the system No action required

EI Quantity

Excise Invoice Quantity

R

Defaulted by the system from Goods Receipt quantity

Base Value

Base value of material

R

Defaulted by the system

BED

Basic Excise Duty

R

Defaulted by the system

AED

Additional Excise Duty

O

Defaulted by the system

NCCD

NCCD

O

Defaulted by the system

SED

Special Excise Duty

O

Defaulted by the system

ECS

Education Cess

O

Defaulted by the system

Please cross check the BED, ECS (CVD in this case) amount of item as per the bill of lading, legally you can not avail more than what mentioned in Vendor Excise Invoice. In case of imported purchase order in normal case system will default CVD and ECess (invoice verification made on commissioner of customs) amount as BED and ECS i.e. CENVAT amount.

12. Choose Check at the top of screen. 13. Choose Post to post the document.

2.6.3

Result Material document posted.

2.6.4

Example Material document 5000000021 posted

You can see account posting here

2.7 Logistics Invoice Verification for the Materials 2.7.1

Use In this process of Logistics Invoice Verification all the Incoming Invoices are verified in terms of their content, prices and arithmetic. When the invoice is posted, the invoice data is saved in the system. The system updates the data saved in the invoice documents in Materials Management and Financial Accounting.

2.7.2

Procedure

1. Access the transaction choosing one of the following navigation options: SAP R/3 menu

Logistics
Materials Management
Logistics invoice Verification
Document Entry
Enter Invoice

Transaction code

MIRO

2. If you are opening for the first time this transaction, system will ask for Company Code, please give 1000 to go in side the transaction. 3. On the Enter Incoming Invoice: Company Code 1000 screen, make the following entries:

Select Goods /Service Items

Field name

Description

R/O /C

User action and values

Comment

Transaction

Invoice

R

Select Invoice from drop down list

Header Data

Header data of Invoice

R

Defaulted by system

Basic tab

Basic information tab

R

Select basic information tab to give initial information

Invoice Date

Invoice Date

R

Enter the Vendor invoice date

Reference

Invoice reference

O

Enter the vendor invoice reference For Example 1000

Posting date

Posting Date

R

Enter the posting date of document

System will give current date as default

Amount

Invoice Amount

R

Enter invoice gross amount

Amount

including taxes and duties 100 Currency

R

Enter the currency in which the bill is presented by vendor, if not entered by user system will default the document currency from purchase order USD

Check box calculate tax

O

Check this tick box, system will calculate tax amount

Tax code

R

Select the tax code from drop down list V0

Bus.place/se ctn

Business place or section code

R

Enter section code if Tax deduction for source is active for this vendor

Text

Text

O

Enter text if required for reference

Payment tab

Payment tab

R

Select payment details tab

BaselineDt

Base line date for payment

R

Enter the base line date for payment

Pmnt terms

Payment terms

O

Payment terms of document, if entered will be defaulted from purchase order

Due on

Payment due on

O

Will be calculated by system

Discount

Cash discount

O

Enter if cash discount is offered by vendor

Calculate tax

mentioned is only an example

Leave blank for this process

Will be defaulted if payment terms entered in PO

Grayed out

Hide Header data for getting full screen of items if required.

Layout

Purchase order / Schedule Agreement

R

Select Purchase order / Schedule Agreement in the reference document category from drop down list

Purchase order number

R

Enter the first purchase order number generated above

Goods / service items

R

Select Goods / Service items in indicator from drop down list

Layout of invoice verification

R

Select All information from drop down list

Defaulted for user

Defaulted

Choose Enter 4. Choose Enter to complete the document feeding part. 5. To check the document credit and debit is balanced on the top right corner of your screen a traffic light is displayed. Beside that Balance of the document is displayed.

Ensure that the Balance is ZERO before posting the document and the traffic light is green or yellow color. 6. If you want to see the accounting postings in simulation mode, Choose Simulation on middle of fourth row of your screen.

Choose Display Currency to change in INR

7. Choose Display Currency which will lead to small pop-up window having the company code currency and Document Currency, position the cursor on the INR to convert to Document Currency and press the details button.

9. Choose Save / Post, for posting the document.

2.7.3

Result Logistics Invoice verification document is posted.

2.7.4

Example Document no. 5105600122 created

3 Procurement of Subcontracting Materials – Business Process Procedure

3.1 Procurement of Subcontracting Materials 3.1.1

Purpose In Indian subcontracting process when you issue materials to a subcontractor, you need to keep track of what materials you have issued and when they have to be returned by subcontractor. The reason for this close monitoring has to do with Indian tax law. Under excise law 57AC, when you send materials to a subcontractor for processing, you are not required to pay any excise duty, even though the materials have left your premises. However, if the materials have not been returned to you within 180 days specified by the law, you will have to reverse any excise credit that you posted when you have purchased the materials. When you send material out of your factory premises you need to send with 57F4 Challan. In this process you are going to do the same.

3.1.2

Prerequisites The following scenario specific master data must be created for operation of this building block and subsequent dependent building blocks.

•

Material Master record (Refer User Manual – Procurement of Stock Materials (Domestic))

•

Vendor Master record (Refer User Manual – Procurement of Stock Materials (Domestic))

•

Purchasing Info Record (Optional) Ensure that Sub-Contracting as Info Category. (Refer User Manual – Procurement of Stock Materials (Domestic))

•

CIN Master Data (Refer User Manual – Procurement of Stock Materials (Domestic)) o o

Chapter IDs Material ID and chapter ID combination (Ensure Sub-Contract check box is selected for

the Materials that provided to vendor) o o o o o

CENVAT Determination Vendor Excise Details Excise Indicator for Plants Excise Indicator for Plant and Vendor Excise Tax Rates

3.2 Creation of Subcontracting Purchase Order 3.2.1

Use

A purchase order is a legal document used to record an individual purchase with the vendor. It also provides the vendor with a reference document to link to goods receipt and invoice verification processes. The purchase order is a commitment to a vendor for a given subcontracting activity, in a specified quantity at a predetermined price and delivery date.

3.2.2

Prerequisites Components stock should be available for providing to subcontracting vendor.

3.2.3

Procedure

1. Access the transaction choosing one of the following navigation options: SAP R/3 menu Transaction code

Logistics
Materials Management
Purchasing
Purchase Order
Create
Vendor/Supplying Plant Known ME21N

2. On the Create Purchase Order screen, make the following entries: Select ZSC Document Type for Subcontracting Order

Enter L as Item Category for Sub-Contracting Procurement

Click here to enter Bill of components that are supplying to Subcontractor

After filling the above data, choose on Material Data tab at item Details screen. There you will find a new icon called Components, you have to choose on that icon to give the components list which you are likely to transfer post to vendors and give the flowing inputs.

3. Click on the Components or Explode BOM and enter the materials that had to be sent:

4. Choose on Green Arrow or F3 to come back to main purchase order screen.

5. Ensure appropriate tax code have been entered for both the line items (V0 – Nil Tax for Sub-Contracting Item)

Ensure Taxcode V0 for Sub-Contracting Item and click on the Taxes to view the tax calculation

6. The Purchase Order may be posted by choosing on the Save icon.

3.2.4

Result A message will be displayed stating that the purchase order was saved, with the purchase order number.

3.2.5

Example Standard PO created under the number 2400000000

3.3 Message Output 3.3.1

Use A Purchase Order needs to be printed for transmitting to vendor.

3.3.2

Procedure

1. Access the transaction choosing one of the following navigation options: SAP R/3 menu

Logistics
Materials Management
Purchasing
Purchase Order
Messages
Print/Transmit

Transaction code

ME9F

2. On the Message Output screen, make the following entries

3. Choose

to Execute.

4. On screen Message Output select the appropriate Document number and perform the following:

Choose Output Message and/or Choose Display Message and/or Choose Message Detail and/or Choose Trial Printout.

3.4 Transfer of Components to Subcontractor 3.4.1

Use The Nature of subcontracting purchase order is that company will provide components to subcontractor. This process describes how to transfer post materials to subcontractor.

3.4.2

Prerequisites Sufficient stocks of components should be available for making transfer posting.

3.4.3

Procedure

1. Access the transaction choosing one of the following navigation options: SAP R/3 menu

Logistics
Materials Management
Inventory Management
Goods Movement
Transfer posting

Transaction code

MB1B

2. On the Enter Transfer Posting: Initial Screen, make the following entries: Field name

Description

R/O /C

User action and values

Document Date Posting Date Movement Type Plant Storage Location

Document Date

R

Input date

Posting Date Movement Type

R R

Input date 541

Plant Storage location

R R

1000 1010

Press To Purchase Order

Comment

3. Choose on To Purchase Order icon on the top of the screen or choose F9 on key board. System will give new popup screen asking for purchase order number. Give the 45000000## purchase order number and choose enter to continue.

4. System will display components from purchase order with quantities 5. Choose only the Material that you are sending and enter the Storage Location from which it has to be issued.

6.

Choose on Adopt + Details icon or F6.

7. Choose Enter if required the quantity of components can be changed. 8. Choose Save icon or Control + S to post the document.

3.4.4

Result A message will be displayed stating that the document posted.

3.4.5 Example

Material document 4900000039 posted.

3.5 Creation of Subcontracting Challan 3.5.1 Use It is statutory requirement to send the components to subcontractor with 57F4 Challan.

3.5.2 Prerequisites • • • •

Select the Sub-Contracting Material in Material and Chapter ID Combination of the Excise Master (J1ID) for the sending Material. Ensure that the details of the receiving Material maintained in the Excise Master (J1ID). CENVAT Determination of the Excise Master (J1ID) Maintained for the both sending and receiving Material. Ensure that the Assessable value for the sending material is maintained in the Excise Master (J1ID)

3.5.3 Procedure 1. Access the transaction choosing one of the following navigation options: SAP User menu CIN Menu

Indirect Taxes
Procurement Subcontracting Challans
Create

Transaction code

J1IF01




Subcontracting




2. On the Subcontracting Challan - Create, make the following entries: Field name

Description

R/O /C

User action and values

Comment

Material Doc. Mat. Doc. Year Excise Group Series Group

Material document number Material document year Excise Group Series Group

R R R R

4900000039 2006 10 W3

Appropriate Appropriate Appropriate

3. Choose Enter to continue, system will take new Subcontracting Challan – Create screen, make the following entries: Field name

Description

R/O /C

User action and values

R

Print Immediately

Posting date and time Print Immediately

O

Input date and time of material removal Check this box if you want challan printout immediately.

Select Overview Tab Preprinted no

Preprinted number

O

Select Posting tab Posting date & time

Enter pre-printed number if you have

Comment

4. Save challan by choosing on Save icon or Control + S.

3.5.4 Result A message will be displayed stating that the document posted.

3.5.5 Example Subcontracting Challan 000010001 2008; Series Group B1 successfully created.

3.6

Printing of Subcontracting Challan 3.6.1 Use It is statutory requirement to send the components to subcontractor with 57F4 Challan.

3.6.2 Procedure Access the transaction choosing one of the following navigation options: SAP User menu CIN Menu

Indirect Taxes
Procurement Subcontracting Challans
Change

Transaction code

J1IF11




Subcontracting




Click the Print Immediately Tab

Press Save Icon

Click the Print Immediately Tab

Press Enter

Click the Icon to be the Print Preview of the Challan

Execute the Print to Get Print Out.

3.7 Goods Receipt for Purchase Order 3.7.1 Use Normally Goods are received from the Vendor as a result of a Purchase Order at the receiving plant

3.7.2 Prerequisites Purchase Order

3.7.3 Procedure 9. Access the transaction choosing one of the following navigation options: SAP R/3 menu

Logistics
Materials Management
Inventory Management
Goods Movement
Goods Receipt
For Purchase Order
PO Number Known

Transaction code

MIGO

10. On the Goods Receipt Purchase Order screen, make the following entries:

Enter the Purchase Order No and Press Enter

11. After pressing Enter system will fetch all the data from the Purchase Order as shown below: 12. First do the posting for the Sub-Contracting Material.

Whichever material is in Blue those detail will be seen in the Item detail

13. System defaults the balance quantity in PO, change the quantity to the received quantity if it is different from defaulted quantity:

14. Ensure that the Movement Type is 101.

Select Item Ok and

Field name

Description

R/O /C

User action and values

Goods Receipt

Goods Receipt

R

Select from drop down list for action

Purchase Order

Purchase Order

R

input the PO number which generated above 4500000054

Movement Type

Comment

101 Enter

Document Date

Document Date

R

Enter document date

Delivery Note

in Header

O

Delivery Number from Vendor

Vendor

Vendor

R

Defaulted from purchase order

Posting Date

Posting date

R

Enter posting date

Bill of lading

Bill of lading

O

Enter bill of lading

Header text

Header text

O

Enter header text

Close Header Detail data to enlarge the Detail data.

Grayed out

Select Material tab at Detailed Data. Material

Material tab

R

Defaulted from Purchase Order

Grayed out

Enter the quantity you have received from vendor. As a default system will give purchase order quantity Enter the quantity as per vendor delivery challan

Quantity defaulted from Purchase Order

Select Quantity tab in Detail data. Qty in unit of entry

Quantity in unit of entry

R

Qty in delivery note

Quantity in delivery note

O

Select Where tab in Detail data. Movement type

Movement type

R

Defaulted from header screen

Stock type

Stock type

R

Plant

Plant

R

Goods Recipient

Goods Recipient

O

Defaulted from material master or purchase order Defaulted from purchase order 1000 Enter the name of person who received goods

Unloading point

Unloading point

O

Text

Text

O

Enter the text if required

Select Purchase Order tab in Detail data. Purchase Order

Purchase Order

R

Defaulted from header data

Del. completed ind.

Delivery completion indicator

O

Defaulted by system if PO Qty = GR Qty

O

Grayed out

Grayed out

Select Partner tab in Detail data. Vendor

Vendor name

For this material batch management is not active. Just for reference purpose the following data is given. Select Batch tab in Detail data.

This tab will come only if material is managed in batches. Proceed with the following steps if material is batch managed only. Batch

Batch number

R

Enter batch number as date for batch managed

Vendor batch

Vendor batch

O

materials Enter vendor batch number for reference

15. Select the Check box Item OK, after entering all the data.

NCCD

NCCD

O

Defaulted by the system

SED

Special Excise Duty

O

Defaulted by the system

ECS

Education Cess

O

Defaulted by the system

Please cross check the BED, AED, SED, NCCD and ECS amount of item as per the Vendor Excise Invoice, legally you cannot avail more than what mentioned in Vendor Excise Invoice. All other information is defaulted by the system. Hence, no action required by the user.

5. Choose Check at the top of screen. 6. Choose Post to post the document.

3.7.4 Result Material document posted.

3.7.5 Example Material document 5000000028 posted, You can see accounting Entries

3.8 Reconciling Subcontracting Challan 3.8.1 Use After making Goods Receipt the GR has to be reconciled with the challan sent to subcontractor.

3.8.2 Procedure 1. Access the transaction choosing one of the following navigation options: SAP User menu CIN Menu

Indirect Taxes
Procurement
Subcontracting Subcontracting Challans
Reconcile Quantity

Transaction code

J1IFQ




As we have refered challan During Goods receipt here we are getting following message, If you have not refred challan during Gr following is the Process

2. On the Quantity reconciliation for Subcontracting Challan screen, make the following entriees.

Field name

Description

R/O /C

User action values

Material Document

Goods Receipt number

R

5000000344

Mat. Doc. Year

Year of document

R

2006

Year

Subcontacting challan year

R

2006

Chalan No

Subcontacting challan No

R

000000031

document

and

Comment

Choose on Reconcile icon or F8 to go reconciliation screen. 3. System will take you to new Quantity reconciliation for Subcontracting Challans. 4. Here on this you can see system display items from Goods Receipt at top and items from challan at bottom of screen.

5. Here you need to allocate the components consumed in GR stage are reconciled with challan to do this, choose on Allocate based on FIFO icon in the middle of screen with calculator icon. 6. Or you can do allocation by entering manually also in respective line items at bottom, where Assigned quantity filed is located in white color.

7. After assignment save the document by choosing Save icon or choose Control + S

3.8.3 Result Material document was successfully reconciled.

3.8.4 Example Material Document 5000000028, 2008 was successfully reconciled.

3.9 Completing/Reversal/Re-credit Subcontracting Challan 3.9.1 Use

This transaction is basically used to complete the challan if you have reconciled as stated above step. There may be cases subcontractor may not able to supply within stipulated 180 days limit then in this case also same transaction is used for reversal of challan or re-crediting the amount.

3.9.2 Procedure 1. Access the transaction choosing one of the following navigation options: SAP User menu CIN Menu

Indirect Taxes
Procurement
Subcontracting Subcontracting Challans
Complete/Reverse/Recredit

Transaction code

J1IF13

2. On the Subcontracting Challan – Complete/Reverse/Recredit screen, make the following entries: Field name

Description

R/O /C

User action and values

Chalan No

Subcontacting challan No

R

0000000031

Excise year

Document year

R

2006

3. Choose enter to go to inside the challan document.

4. Select the radio button Complete Challan and. 5. Save the document by choosing Save icon or choose Control + S.

3.9.3 Result Subcontracting challan successfully completed.

Comment




3.9.4 Example Subcontracting Challan 0000001 2008; Series Group B1 successfully completed.

3.10 Logistics Invoice Verification for Subcontracting Material 3.10.1 Use In this process of Logistics Invoice Verification all the Incoming Invoices are verified in terms of their content, prices and arithmetic. When the invoice is posted, the invoice data is saved in the system. The system updates the data saved in the invoice documents in Materials Management and Financial Accounting.

3.10.2 Procedure 1. Access the transaction choosing one of the following navigation options: SAP R/3 menu

Logistics
Materials Management
Logistics invoice Verification
Document Entry
Enter Invoice

Transaction code

MIRO

2. If you are opening for the first time this transaction, system will ask for Company Code, please give 1000 to go in side the transaction. 3. On the Enter Incoming Invoice: Company Code 1000 screen, make the following entries: 4. Choose only the Subcontracting material to post the document:

Field name

Description

R/O /C

User action and values

Comment

Transaction

Invoice

R

Select Invoice from drop down list

Header Data

Header data of Invoice

R

Defaulted by system

Basic tab

Basic information tab

R

Select basic information tab to give initial information

Invoice Date

Invoice Date

R

Enter the Vendor invoice date

Reference

Invoice reference

O

Enter the vendor invoice reference For Example USERMANUAL

Posting date

Posting Date

R

Enter the posting date of document

System will give current date as default

Amount

Invoice Amount

R

Enter invoice gross amount including taxes and duties 19.50

Amount mentioned is only an example

Currency

R

Enter the currency in which the bill is presented by vendor, if not entered by

user system will default the document currency from purchase order INR Calculate tax

Check box calculate tax

O

Check this tick box, system will calculate tax amount

Tax code

R

Select the tax code from drop down list V0

Bus.place/se ctn

Business place or section code

R

Enter section code if Tax deduction for source is active for this vendor

Text

Text

O

Enter text if required for reference

Payment tab

Payment tab

R

Select payment details tab

BaselineDt

Base line date for payment

R

Enter the base line date for payment

Pmnt terms

Payment terms

O

Payment terms of document, if entered will be defaulted from purchase order

Due on

Payment due on

O

Will be calculated by system

Discount

Cash discount

O

Enter if cash discount is offered by vendor

Leave blank for this process

Will be defaulted if payment terms entered in PO

Grayed out

Hide Header data for getting full screen of items if required.

Layout

Purchase order / Schedule Agreement

R

Select Purchase order / Schedule Agreement in the reference document category from drop down list

Purchase order number

R

Enter the first purchase order number generated above

Goods / service items

R

Select Goods / Service items in indicator from drop down list

Layout of invoice verification

R

Select All information from drop down list Choose Enter

5. Choose Enter to complete the document feeding part.

Defaulted for user

Defaulted

6. To check the document credit and debit is balanced on the top right corner of your screen a traffic light is displayed. Beside that Balance of the document is displayed.

Ensure that the Balance is ZERO before posting the document and the traffic light is green or yellow color. 7. If you want to see the accounting postings in simulation mode, Choose Simulation on middle of fourth row of your screen.

10. Choose Save / Post, for posting the document.

3.10.3 Result Logistics Invoice verification document is posted.

3.10.4 Example Document no. 5105600132 created, Account postings are following

5. Procurement of External Services: Business Process Procedure Procurement of External Services – Procurement Process Purpose External Services Management is an application component within Materials Management Module. It covers from creation of service master, bid invitation, order placements process, entering and accepting services and finally invoice verification process.

Prerequisites The following scenario specific master data must be created for operation of this building block and subsequent dependent building blocks. •

Service Master record o

•

AMC Charges for Testing Machine Vendor Master record

Refer the document of “Procurement of Stock Materials”

Creating Service Master Use The service master record counts as part of the master data within External Services Management and serves as a source of data for you to draw upon when creating services. This enables you to save time and reduces the frequency of errors, since you need only enter the complete service descriptions in the service master record once.

Procedure 8. Access the transaction choosing one of the following navigation options: SAP R/3 Menu

Logistics
Materials Management
Service Master
Service
Service Master

Transaction code

AC03

9. On the Display Service screen, make the following entries:

10. Click on Create new service icon or press F5 (white paper icon) to create new service master. 11. Then you will get Create Service Master Record screen, make the following entries:

No Need to Enter as Internal No will be generated and Enter the Short Text only

Blocking of service procurement can be done by entering appropriately here

Conversion can be maintained here

Field name

Description

R/O /C

User action and values

Comment

Service Number

Service master record (internally assigned)

R

You can see %_1 will be displayed on this field, leave it as blank. System will assign internal service number

Leave blank

Service description

R

Annual Mait. Contract for Testing M/C.

Input the value

Service Category

Service Category

R

Service:ALL complete

Select from drop down

Base unit of Measurement

Base unit of Measurement

R

AU for Activity Unit

Mat/srv.grp

Material Group or Service Group

R

91

Division

Division

O

Valuation class

Valuation class

R

Basic Data

Long Text

3200

This is free input place. You can fully input the service specification.

O

12. Press enter to complete the entries. 13. Press Save icon or Control + S to save the entries.

Result Service Master Record is created.

Annual Maintenance Contract for Testing Machine.

Creating Purchase Requisition Use A Purchase Requisition is created to indicate purchase department to procure materials or services with details like how much quantity is required, when required. Generally it is created automatically for Raw materials and Packing Materials through MRP Run and Spares and Service related to Plant Maintenance Purchase Requisition is generated automatically from Plant maintenance Order. In this process Purchase Requisition is created against Quantity Contract created in above step 1.1.4 with exact delivery / requirement date. This transaction is optional for the process.

Procedure 1. Access the transaction choosing one of the following navigation options: SAP R/3 menu

Logistics
Materials Management
Purchasing
Purchase Requisition
Create

Transaction code

ME51N

3. On the Create Purchase Requisition screen, make the following entries:

Enter the A/c Assignment Category as K for Cost center and Item Category D for Services

Enter the Short Text

Enter the appropriate Material Group Plant and Purchasing Group

When Item Category D is enterer one new tab in the Item Detail Services is generated to enter the Service No.

Enter the Service No, Quantity and Gross Price and press Enter

4. After pressing enter system shows a small pop-up window where respective G/L Account and Cost Center to be entered.

Enter the appropriate G/L Account and Cost Center

Enter the Desired Vendor if Vendor is known to the person who is creating PR

5. Press

or Ctrl+S to Save the Purchase Requisition.

Result Purchase Requisition is created,

Example Purchase requisition number 0010000180 created.

Assign and Process Purchase Requisition Use c) This section explains the functions provided by the SAP System for converting requisitions into external purchasing documents (purchase orders, contract release orders, scheduling agreement delivery schedules, RFQs), and the processing options thereby available to you: • o

Assigning means defining the desired source for each purchase requisition item Further processing involves generating lists of requisitions that have been assigned or flagged as outlined above, and the subsequent creation of RFQs, purchase orders, or lines of delivery schedules under scheduling agreements.

Procedure 6. Access the transaction choosing one of the following navigation options: SAP R/3 menu Transaction code

Logistics
Materials Management
Purchasing
Purchase Requisition
Follow-On Functions
Assign and Process ME57

7. The assignment of sources to and further processing of purchase requisitions are two distinct functions. You can choose whether you wish to perform the functions in two separate steps or in just one.

8. Below are the Selection Parameters to restrict the process of PO from PR

1. Enter the appropriate Purchasing Group 2. Enter the Scope of List as B1 for PR generated through MRP Run and A for remaining PR 3. Enter the appropriate Plant 4. Enter the Item category as D

1. Select the Assigned Purchase Requisition (For Spares PR normally the End User may have entered the Vendor in the PR) 2. Select the appropriate Check boxes for Processing the PR

9. Press

or F8 to enter into the next screen.

1. If Source List is available click this button

For Manual Assignment of source click this Icon

1. Select the check boxes required PR which are to be converted in to Pos.

Click SAVE Icon. Source has been assigned for this Requisition

Result The source is assigned to PR and can be processed for PO.

5.5. For Releasing Purchase Requisition Refer User Manual for Stock Procurement

5.6 Purchase Order 5.6.1 Use A purchase order is a legal document used to record an individual purchase with the vendor. It also provides the vendor with a reference document to link to shipping (goods receipt) and invoicing (invoice verification) processes. The purchase order is a commitment to a vendor for a given material, in a specified quantity at a predetermined price and delivery date. This transaction is mandatory for the process.

Please ensure that Purchase Order Value does not exceed specified value and if the purchase order value crosses this limit a release procedure is applied on this purchase order. To release the Purchase Order go to ME28 for collective release and ME29N for individual release.

Prerequisites

1. Before creating purchase order if this vendor is subject to Tax Deduction at Source (TDS) or with holding tax please ensures that necessary entries in vendor master is updated.

Procedure 6. Access the transaction choosing one of the following navigation options: SAP R/3 menu Transaction code

Logistics
Materials Management
Purchasing
Purchase Order
Create
Vendor/Supplying Plant Known ME21N

7. If you want create purchase order with reference to the purchase requisition, on item details screen enter the purchase requisition number and item number at Purch. Req. field. System will automatically adopt all the data from requisition.

Click the Purchasing Requisitions and Press Adopt

Select this check box if Invoice Verification is done after Service Entry Sheet

Press this button to view the Tax Calculation

Condition Record for JSVD and JEC4 should be Maintained in FV11 with Material Group/Plant Combination.

Select Invoice tab Tax code

Enter Tax code

R

S1

Select S1 tax code

Since the procurement services covered with service tax of 10% (for example only, check for legal requirement), it is advised to select V1 tax code. Jurisdiction Jurisdiction code R Will be defaulted from plant code parameters

Depending on for which plant you are procuring the services system will select Jurisdiction code. In system the following Jurisdiction codes were configured IN00 – Central GR-based IV Goods Receipt based O Tick this check box invoice verification Srv.-based IV Service based invoice O Tick this check box If Invoice verification Verification will be done after the Service Entry sheet

8. The Purchase Order may be posted by Choosing on the Save button or Choose Control + S for saving.

Result Purchase Order is created.

Example Standard PO created under the number 4500000062.

For Releasing Purchase Order Refer User Manual of Stock Procurement

5.8 Message Output 5.8.1

Use A Purchase Order needs to be printed for transmitting to vendor.

5.8.2

Procedure

14. Access the transaction choosing one of the following navigation options: SAP R/3 menu

Logistics
Materials Management
Purchasing
Purchase Order
Messages
Print/Transmit

Transaction code

ME9F

15. On the Message Output screen, make the following entries

16. Choose

to Execute.

17. On screen Message Output select the appropriate Document number and perform the following:

Choose Output Message and/or Choose Display Message and/or Choose Message Detail and/or Choose Trial Printout.

5.9 Creation and Acceptance of Service Entry Sheet 5.9.1

Use

The services actually performed (work actually done) by a service vendor are recorded in a Service Entry Sheet with reference to the purchase order.

5.9.2

Procedure

1. Access the transaction choosing one of the following navigation options: SAP R/3 Menu

Logistics
Materials Management
Service Entry Sheet
Maintain

Transaction code

ML81N

2. On the Service Entry Sheet screen, make the following entries:

3. Click on Other Purch. Orders icon or Shift + F5, system will popup new screen.

4. In this screen against Purchase Order field give the purchase order number which is created in above steps and press enter to continue.

5. You will get new Service Entry Against Purchase Order 6. Here on this screen click Create Entry Sheet (white paper icon) or Shift + F1 to get new entry sheet. 7. System allocates service entry sheet number internally and you will get the number on screen.

Press Service Selection and a dialog box appears

8. System will give a popup screen with purchase order number on that, press enter to continue.

9. Select the line item 10 and click on Services or F9 (Adopt services) icon on top of screen.

10. For example the following screen name will come:

11. You can observe the system copied the service line item from purchase order with open item quantity i.e. 1 AU.

12. Change the quantity as per your requirement

13. With this the basic information of service entry sheet is fully completed. As per the requirement you can fill other fields also if required. 14. To accept the service click on Accept icon or Control + F1 (Green flag icon).

Press Green Colour Flag Button

15. You can see the traffic light is become Yellow color. That means it is ready to save the service entry sheet.

The colour changes from red to yellow and Press Save

16. Press

or Ctrl+S to save the document.

5.9.3

Result A message indicates that the service entry sheet saved, acceptance document posted.

5.9.4

Example Service entry sheet saved, acceptance document 5000000134 posted.

5.10 5.10.1

Logistics Invoice Verification Use In this process of Logistics Invoice Verification all the Incoming Invoices are verified in terms of their content, prices and arithmetic. When the invoice is posted, the invoice data is saved in the system. The system updates the data saved in the invoice documents in Materials Management and Financial Accounting.

5.10.2

Procedure

1. Access the transaction choosing one of the following navigation options: SAP R/3 menu

Logistics
Materials Management
Logistics invoice Verification
Document Entry
Enter Invoice

Transaction code

MIRO

2. If you are opening for the first time this transaction, system will ask for Company Code, please give 1000 to go in side the transaction. 3. On the Enter Incoming Invoice: Company Code 1000 screen, make the following entries:

Field name

Description

R/O /C

User action and values

Comment

Transaction

Invoice

R

Select Invoice from drop down list

Header Data

Header data of Invoice

R

Defaulted by system

Basic tab

Basic information tab

R

Select basic information tab to give initial information

Invoice Date

Invoice Date

R

Enter the Vendor invoice date

Reference

Invoice reference

O

Enter the vendor invoice reference For Example USERMANUAL

Posting date

Posting Date

R

Enter the posting date of document

System will give current date as default

Amount

Invoice Amount

R

Enter invoice gross amount including taxes and duties 1122.40

Amount mentioned is only an example

Currency

R

Enter the currency in which the bill is presented by vendor, if not entered by user system will default the document currency from purchase order INR

Check box calculate tax

O

Check this tick box, system will calculate tax amount

Tax code

R

Select the tax code from drop down list S1

Bus.place/se ctn

Business place or section code

R

Enter section code if Tax deduction for source is active for this vendor

Text

Text

O

Enter text if required for reference

Payment tab

Payment tab

R

Select payment details tab

BaselineDt

Base line date for payment

R

Enter the base line date for payment

Pmnt terms

Payment terms

O

Payment terms of document, if entered will be defaulted from purchase order

Due on

Payment due on

O

Will be calculated by system

Discount

Cash discount

O

Enter if cash discount is offered by vendor

Calculate tax

Leave blank for this process

Will be defaulted if payment terms entered in PO

Grayed out

Hide Header data for getting full screen of items if required.

Layout

Purchase order / Schedule Agreement

R

Select Purchase order / Schedule Agreement in the reference document category from drop down list

Purchase order number

R

Enter the first purchase order number generated above

Goods / service items

R

Select Goods / Service items in indicator from drop down list

Layout of invoice verification

R

Select All information from drop down list Choose Enter

Defaulted for user

Defaulted

4. Choose Enter to complete the document feeding part. 5. To check the document credit and debit is balanced on the top right corner of your screen a traffic light is displayed. Beside that Balance of the document is displayed.

Ensure that the Balance is ZERO before posting the document and the traffic light is green or yellow color. 6. If you want to see the accounting postings in simulation mode, Choose Simulation on middle of fourth row of your screen.

11. Choose Save / Post, for posting the document.

5.10.3

Result Logistics Invoice verification document is posted.

5.10.4

Example Document no. 5105600795 created

6 Asset Procurement – Business Process Procedure. Purchase Order Use A purchase order is a legal document used to record an individual purchase with the vendor. It also provides the vendor with a reference document to link to shipping (goods receipt) and invoicing (invoice verification) processes. The purchase order is a commitment to a vendor for a given material, in a specified quantity at a predetermined price and delivery date.

This transaction is mandatory for the process.

Prerequisites

1. Before creating purchase order if this vendor is subject to Tax Deduction at Source (TDS) or with holding tax please ensures that necessary entries in vendor master is updated. 2. Asset Management Module Active.

Procedure 7. Access the transaction choosing one of the following navigation options: SAP R/3 menu Transaction code

Logistics
Materials Management
Purchasing
Purchase Order
Create
Vendor/Supplying Plant Known ME21N

Enter Account Assignment ‘A’ and Short text of the Assest

Enter PO Qty,Net Price,Currency, Material Group

Enter Code V1

1. Enter the respective Asset No.

Enter the Asset No.

3. Click Taxes Tab to View the Tax Details IIN FV11 maintain Condition record for respective Tax Conditions with Material Group/Plant combination.

3.Click Save Button to Save the PO.

Result Purchase Order Created with No. 230000000.

Release of Purchase Order Procedure For Release of Purchase order Please refer Stock Procurement Manual.

Goods Receipt for Purchase Order Use Goods are received from the Vendor as a result of a Purchase Order at the receiving plant. A goods movement is entered into the system referencing this PO and a goods receipt material document is posted. Appropriate general ledger accounts are also posted and stocks are updated.

Prerequisites Purchase Order

Procedure 16. Access the transaction choosing one of the following navigation options: SAP R/3 menu

Logistics
Materials Management
Inventory Management
Goods Movement
Goods Receipt
For Purchase Order
PO Number Known

Transaction code

MIGO

Select Only Capture Excise Invoice

Save the Document.

Result Material Document 500000029 Posted.

Post Excise Invoice 6.4.1 Procedure Access the transaction choosing one of the following navigation options: SAP R/3 menu

CIN Easy Screen(J1ILN)
Indirect Taxes
Procurement
Incoming Invoice
Central Processing ->Post Excise Invoice

Transaction code

J1IEX

Click Simulate Cenvat.

Click Post Cenvat.

Click Continue

6.4.2 Result Excise Invoice Posted.

Logistics Invoice Verification 6.5.1 Use In this process of Logistics Invoice Verification all the Incoming Invoices are verified in terms of their content, prices and arithmetic. When the invoice is posted, the invoice data is saved in the system. The system updates the data saved in the invoice documents in Materials Management and Financial Accounting.

6.5.2 Procedure 4. Access the transaction choosing one of the following navigation options: SAP R/3 menu

Logistics
Materials Management
Logistics invoice Verification
Document Entry
Enter Invoice

Transaction code

MIRO

Click Simulate

Click Save.

6.5.3 Result Invoice Document 5105600133 Posted.

7 Excise Periodic Processing – Business Process Procedure Excise Periodic Processing Purpose Excise Periodic Processing’s that are to be carried out at end of a period. Excise Periodic Processing helps you prepare and carry out the activities required for day-end or month-end and year-end closing. •

TR6 Challan Posting with PLA Register Updation

•

Utilization of CENVAT

•

RG1 Register updation

•

Proforma for Monthly Return under Rule 7 of the Cenvat Credit Rules, 2001

Prerequisites Before execute business scenarios, you need to post the business processes transactions from other scenarios. As part of the integrated scenario, this scenario needs several User Manuals as prerequisites to demonstrate these include: •

Production Planning and Discrete Manufacturing

•

Procurement of Stock Materials

•

Sales and Distribution

Excise Report - CENVAT Register Use Details to submit an Annexure to the Excise Authorities as a Monthly Return Under Rule 57AE of the Central Excise Rules, 2001. CENVAT Register displays input credit details for Raw materials or Capital Goods. This report can be generated detailed as Annexure or summary as Abstract.

Prerequisites User must be assigned the Indian Localization menu.

Procedure 9.

Access the transaction choosing one of the following navigation options: SAP R/3 menu

Country India User Menu → Indirect Taxes → Registers → Excise Tax → CENVAT Register

Transaction code

J2I9

10. On the Proforma for Monthly Return Under Rule 57AE of the Central Excise Rule screen, make the following entries:

Select the Radio Button for Capital Goods / Inputs to display Annexure / Abstract

Field name

Description

R/O /C

User action and values

Comment

Company Code

Company code

R

1000

Excise Group

Excise Group for which ID for which CENVAT Register is being generated

R

10

Posting Date

Posting date range

R

Annexure

Output to be generated Annexure or Abstract

C

Select this radio button if the out put is being generated for Annexure

At time you can generate an Annexure or Abstract

Abstract

Output to be generated Annexure or Abstract

C

Select this radio button if the out put is being generated for Abstract

At time you can generate an Annexure or Abstract

Inputs

Annexure to be generated for Input materials or Capital Goods

C

Select this radio button if the out put Annexure is being generated for Input Materials

At time you can generate an Annexure for Input materials or Capital Goods

Capital Goods

Annexure to be generated for Input materials or Capital Goods

C

Select this radio button if the out put Annexure is being generated for Capital Goods

At time you can generate an Annexure for Input materials or Capital Goods

The date from the beginning of the month to end of the month

11. The out put can be saved into a local file or printed by using the print options.

Result You are able to generate Proforma for Monthly Return Under Rule 57AE of the Central Excise Rule.

Excise Register Updation 7.3Updation of RG1 Register Use RG1 register maintained at Manufacturing Plants for excisable finished goods. The register shows goods movements from the factory to a store and stores to customer, specifically for excisable finished goods. The R/3 System generates all the necessary entries in the register. This report only creates register entries for goods movements that have not already been entered. It does not create duplicate entries. Using this activity, you can also update the goods issue into RG23A Part I and RG23C Part I, Register by select the radio button option in the Registers.

Prerequisites To extract the data to RG1 Register, Material numbers has to be maintained in the table J_2IRG1BAL - Opening/Closing balance table for RG1.

Procedure 1. Access the transaction choosing one of the following navigation options: SAP R/3 menu

Country India User Menu → Indirect Taxes → Registers → Excise Tax → Update RG23A/C Issues and RG1

Transaction code

J1I5

2. On the Update of Registers RG1 and RG23(Part1) screen, make the following entries:

Select appropriate Classification

Select the Radio Button for RG1 / RG23A Part 1 / RG23C Part 1 Updation

Field name

Description

R/O /C

User action and values

Comment

Company Code

Company Code

R

1000

Plant

Plant – for which RG1 Register is being maintained

R

1000

Excise Group

Excise Group for which RG1 register is being maintained

R

10

Material Document Number

Material document number

O

Based on the updation criteria enter values

Document Year

Material document year

O

Material document year

Posting Date

Date of Material document Posted

R

Movement Type

Movement Type used for posting the materials

O

Storage Location

Storage location used for posting the material movements

O

Material

Material number to update the RG1 Register

O

Document Date

Document date of the material document

O

Batch

Batch number of the materials

O

Stock Type

Stock Type declared

O

Rule

Excise Classification Rule

O

Classification

Pre-defined Classifications

R

Enter the Material Document Posting Date

IIM For updating of goods receipts from Manufacturing plant use RMA For updating of Goods issue, i.e. Removal from factory on payment of duty for home use – IDH

Receipts RMA- Receipt from manufacture ROP-Receipt from outside under any other provision Issues IDH-Removal from factory on payment of duty for Home use IDE-Removal on payment of duty for export under no bond IWE-Removal without

payment of duty for export under bond IWT-Removal without payment of duty for transfers IWO-Removal without payment of duty for other purpose RG23/ RG1

RG23 / RG1 updation date

R

Select the appropriate radio button to update the RG1 Register. Please select the document entry date radio button

Date to be considered by the system for updation of RG1 Register Document Entry date Document posting date System date

Registers

Register to update

R

Select the RG23A radio button to update the RG1 Register,

By using this Transaction you can update the following Registers RG23A Part1 RG23C Pat1 RG1

Please press enter and ignore any messages. Update the Receipts to RG1 Register and then update the issue to RG1 Registers. Follow the sequence of transactions. You can update the RG1 Register by selecting material document header values or Material document line item level details or both together. The following Classification codes need to be used while updating the Excise Registers: Register Type Goods issues Goods receipts RG 23A

IIM

ROP

IPD IWD RG23C

IIM

ROP

IPD IWD RG1

IDH

RMA

IDE

ROP

IWE IWT

IWO

3. System will display the ‘Update of Registers RG1 and RG23 (Part1’) screen: Displays all the line items to meet the selection criteria to update the RG1 Register.

Select Check Boxes for which Updation to be

4. Select the line items which needs to be updated to RG1 Register by selecting the check box at the beginning of the each line item

Press Simulate

5. Simulate the selection by using the Simulate function or use Shift+F10 to simulate the selection

6. System will display the selection Green or Red Traffic lights. The line items which can be updated will be displayed with Green Traffic Lights and the line items which can not be updated will be displayed with Red Traffic Lights.

7. After selecting the right documents select the line item and use the Create button to update the RG1 Register or use CTRL+Shit+F11 to make register entry.

Processing over for 3 records

Result Processing over for records

RG1 Register Extraction Use This step needs to be performed in order to create the RG1 details into the respective tables.

Prerequisites You have to complete the update of RG1 Register before performing this step.

Procedure 1. Access the transaction choosing one of the following navigation options: SAP R/3 menu

Country India User Menu → Indirect Taxes → Registers → Excise Tax → Extract

Transaction code

J2I5

2. On the Excise Registers Extraction screen, make the following entries:

Choose Execute

Field name

Description

R/O /C

User action and values

Excise Group

Excise group for which RG1 Register being generated

R

10

State Date

Starting date of Extraction

R

Starting date of data to be extracted for RG1 registers

End Date

Ending date of Extraction

R

Ending date of data to be extracted for RG1 registers

Selection Registers

Mass extraction of data to all registers

R

Select the radio button Select Any Register option

Select individual Registers

Selection of individual register

R

Activate the RG1 Check box to extract the RG1 Register

Display Last Extracted dates

Displays the previously upto what date the register has been extracted for information

O

Comment

User can generate all the registers together or individual register wise

3. Click on execute icon or Press F8 or Program
Execute

Press Yes which appears in the Dialog

4. If the RG1 Register is being generated for the Period First Time, system will execute the report and display the pop-screen with Register name and Green Tick mark, if it is successfully extracted, otherwise it will show the Red Cross.

Result RG1 data has been extracted Using this activity, you can also extract the following Excise Registers in addition to RG1. • RG23A Part I • RG23A Part II • RG23C Part I • RG23C Part II • PLA In the Registers select option, if you select All registers, the system will create an extract for all registers. If you only want to create an extract for specific registers, select Select any register and then the registers that you want to extract.

RG1 Register Print Utility Use The objective of this process is to print the RG1 Register or to display on the screen.

Prerequisites The data must be extracted to the RG1 Register for the period to which RG1 Register need to be printed.

Procedure 1. Access the transaction choosing one of the following navigation options: SAP R/3 menu

Country India User Menu → Indirect Taxes → Registers → Excise Tax → Print Utility program

Transaction code

J2I6

2. On the Print Excise Registers screen, select the RG1 Radio button to print the RG1 Register.

Choose

3. Click on Execute icon or Press F8 or Program
Execute 4. On the Print RG1 Register screen, make the following entries:

Choose

Field name

Description

Excise Group

Excise group for which RG1 Register is being generated

Start Date

End Date

R/O /C

User action and values

Comment

R

10

Enter the Excise Group

Starting date of the period for which currently RG1Register is being generated

R

For example 01.09.2005

Starting Date

Ending date of the period for which currently RG1Register is being generated

R

For example: 29.09.2005

Ending Date

5. Click on Execute icon or Press F8 or Program
Execute

6. System will display the Print parameters maintenance screen assign the out put device name and select the Print Preview option. System will display the output on the screen.

7. See the output on the screen and based on the requirement print the output using Ctrl + P option or through menu Text
Print.

Result RG1 Register ready to print or you can see on the screen. Using this activity, you can also view or print the following Excise Registers in addition to RG1 • RG23A Part I • RG23A Part II • RG23C Part I • RG23C Part II • PLA You have to print or see the registers one after another.

8. PLA Register Extraction PLA Register Extraction Use This step needs to be performed in order to extract the data relating to PLA Register to respective tables.

Prerequisites The following process has been executed, if any transactions took place during the period of PLA register extraction for payment of CENVAT and Sale of goods • •

TR6 Challan Updation Utilization of CENVAT

Procedure 1. Access the transaction choosing one of the following navigation options: SAP R/3 menu

Country India User Menu → Indirect Taxes → Registers → Excise Tax → Extract

Transaction code

J2I5

2. On the Excise Registers Extraction screen, make the following entries:

Choose

Field name

Description

R/O /C

User action and values

Excise Group

Excise group for which PLA Register being generated

R

10

State Date

Starting date of Extraction

R

Starting date of data to be extracted for PLA registers

End Date

Ending date of Extraction

R

Ending date of data to be extracted for PLA registers

Selection Registers

Mass extraction of data to all registers

R

Select the radio button Select Any Register option

Select individual Registers

Selection of individual register

R

Activate the PLA Check box to extract the PLA Register

Display Last Extracted dates

Displays the previously upto what date the

O

Comment

User can generate all the registers together or individual register wise

System will display the last extraction date

register has been extracted for information

on the screen

3. Click on execute icon or Press F8 or Program
Execute

4. If the PLA Register is being extract for the Period First Time, system will execute the report and display the popscreen with Register name and Green Tick mark, if it is successfully extracted, otherwise it will show the Red Cross.

Result PLA data has been extracted

PLA Register Print Utility Use The objective of this process is to print the PLA Register or to display on the screen.

Prerequisites The data must be extracted to the PLA Register for the period to which PLA Register need to be printed.

Procedure 1. Access the transaction choosing one of the following navigation options: SAP R/3 menu

Country India User Menu → Indirect Taxes → Registers → Excise Tax → Print Utility program

Transaction code

J2I6

2. On the Print Excise Registers screen, select the PLA Radio button to print the PLA Register.

Choose

3. Click on Execute icon or Press F8 or Program
Execute

4. On the Print PLA Register screen, make the following entries:

Choose

Field name

Description

Excise Group

Excise group for which PLA Register is being generated

Start Date

End Date

R/O /C

User action and values

Comment

R

10

Enter the Excise Group

Starting date of the period for which currently PLA Register is being generated

R

For example 01.09.2005

Starting Date

Ending date of the period for which currently PLA Register is being generated

R

For example 30.09.2005

Ending Date

5. Click on Execute icon or Press F8 or Program
Execute

6. System will display the Print parameters maintenance screen assign the out put device name and select the Print Preview option. System will display the output on the screen.

7. See the output on the screen and based on the requirement print the output using Ctrl + P option or through menu Text
Print.

Result PLA register displayed on screen or printed.

9. Reports Purchasing Purchasing Documents per Vendor (ME2L)

Chose Execute Icon

Purchasing Documents per Material (ME2M)

Choose Execute

Source List for Material (ME0M)

Purchase Info Record per Material (ME1M)

Purchasing Values(MC$G)

Choose Execute

Click Switch Drill Down Icon

9.2

Inventory

9.2.1 Material Document List (MB51)

Choose Execute

Click this Icon to have Detail View.

9.2.2 Diplay Warehouse Stock (MB52)

Choose Appropriate Input for your selection.

Choose Execute or Press F8.

9.3.3 Stock on Posting Date (MB5B)

Select Apropriate Entries For your selection

Choose Execute or Press F8

9.3.4 Stock Overview (MMBE)

Choose Execute or Press F8

9.3.5 Stock in Transit (MB5T)

Choose Execute or Press F8.

This means no stock in transit

9.3.6 Slow Moving Items (MC46)

Select Appropriate Input Entries

Choose Execute and Press F8.