Sap Mm Lct Training Material Latest
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SAP Materials Management
Lateral Cross Training Material
26th June, 2007
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Agenda
Name of thesection SAP overview
Duration (hours) 6 Hrs
Objective To understand what is SAP and its various applications.
Pre-requisites • Knowledge on ERP Solution
Course Content • SAP Overview• Industry Solutions from SAP
• Main Modules of SAP
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• SAP stands for “Systems, Applications and Products in
data processing".
• SAP is the worlds third-largest independent software
provider.
• SAP was founded by 5 former IBM employees in 1972
and head quartered in Walldorf,Germany.
• SAP is the global market leader in ERP and in
collaborative and inter-enterprise business solutions
SAP Overview
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SAP overview
• Various SAP Business suite :
─ mySAP Enterprise resource planning
─ mySAP Supply chain management
─ mySAP Customer relationship management
─ mySAP Product life cycle management
─ mySAP Supplier relationship management
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SAP overview -Industry solutions from SAP
Aerospace & Defense Automotive
Banking Defense & Security
Engineering, Construction &Operations
High Tech
Healthcare Higher Education & Research
Industrial Machinery Chemicals
Consumer Products Life Sciences
Higher Education & Research Industrial Machinery & Components
Life Sciences Logistics Service Providers
Media Mill Products
Health Care High Tech
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SAP overview -Industry solutions from SAP (..Contd)
Mining Oil & Gas
Postal Services Professional Services
Public Sector Railways
Retail TelecommunicationsUtilities Wholesale Distribution
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SAP-Overview
• Small and medium business solutions ─ mySAP all-in-one
─ SAP business one
• New dimension products
─ Strategic enterprise management
─ Advanced planer and optimizer
─ Enterprise buyer profession edition
─ Business information warehouse
• mySAP technology
SAP Net weaver
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SAP-Overview
• SAP R/3 main modules are
─ Financial Accounting (FI) ─ Controlling (CO)
─ Materials Management (MM) ─ Sales & distribution (SD) ─ Production Planning and Execution - Discrete,
Repetitive, Process (PP) ─ Logistics execution (LE)
─ Quality Management (QM) ─ Project Systems (PS) ─ Plant Maintenance (PM) ─ Customer Service (CS) ─ Human Resources (HR)
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SAP Application Modules
SAP has several layers. The Basis System is the heart ofthe data operations and should be not evident to higher
level or managerial users. Other customizing and
implementation tools exist also. The heart of the system
from a manager‟s viewpoint are the application modules.
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SAP overview
SAP stands for "systems, applications and products in dataprocessing".
SAP is the worlds third-largest independent software provider.Founded by 5 former IBM employees in 1972 and head quarteredin Walldorf, Germany.
SAP is the global market leader in collaborative and inter-enterprisebusiness solutions
SAP is the global market leader in ERP.
Introduction to SAP
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Course Begins
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Curriculum
1. Introduction to Procurement
2. Organization Structure
3. Master Data
1. Material Master
2. Vendor Master
3. Customizing settings for master data
4. Purchasing
5. Inventory Management
6. Invoice Verification
7. Account Determination8. Batch Management
9. Physical Inventory
10.Consumption Based Planning
11.Standard Reports in MM
12.Standard Tables in MM
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Agenda
Name of thesection Introduction to procurement
Duration (hours) 1 Hrs
Objective To understand the various organizational structures fromlegal and business transaction point of view.
Pre-requisites •Functional experience in Sales.
•Understanding of Organizational structure.
Course Content •Introduction to procurement•Internal Procurement
•External procurement
•Methods of procurement
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Definition
• The process of obtaining services, supplies, and equipment from a
vendor is called Procurement.
• The procurement department or the purchase department within anorganization manages all the purchases.
Introduction To Procurement
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Organizational levels in a procurement cycle
A client can be termed as a corporate group
A company code is a company (accounting
unit) within the corporate group (client)
A plant is the manufacturing facility or branchwithin the company
Storage location is a area in the plant where allthe materials procured for the plant getsstored. Inventory management and physicalinventory is carried out at the storage locationlevel
The Procurement activity is taken care by thisdepartment in the plant
Client
Note:- A plant can be one of the following # Central delivery # warehouse #Regional
sales office #Manufacturing facility # Corporate headquarters
Company
Code
Plant
Storage
Location
Pur Org
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Types of Procurement
• Internal Procurement
• External Procurement
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Internal Procurement
In a company, goods movements do not only occur in the form of goodsreceipts and goods issues. Depending on the organization of the company
and its sales policy, internal stock transfers may also be necessary.Stock transfer with delivery is a plant-to-plant scenario. You are posting a
goods issue in plant A and a goods receipt in plant B. This type of stocktransfer can only be carried out from unrestricted-use stock of the issuingplant to unrestricted-use stock of the receiving plant. In a second step, you post the placement into storage at the receiving plant. Only then is theevent complete and the transferred quantity part of unrestricted-usestock.
The following are a must for internal procurement between plant to plantwithin the same company code.
• Creating a stock transport order in plant B• Generating a delivery in plant A
• Picking the material in plant A• Posting the goods issue in the delivering plant i.e. Plant A• Posting the goods receipt in the receiving plant i.e. Plant B
The quantity posted from stock is first of all managed as stock in transitfor the receiving plant. The quantity is only posted to the unrestricted-usestock of the receiving plant once the goods receipt has been posted. This
enables the quantity 'on the road' to be monitored.
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Internal Procurement
You post a stock transfer from company code to company code in the same waythat you post a stock transfer from plant to plant, except that both plants belong todifferent company codes.
During the stock transfer, two accounting documents are created in addition to thematerial document
An accounting document for the removal from storage at the issuing company code An accounting document for the placement into storage at the receiving company
codeThe following are a must for internal procurement between plant to plant between 2
different company codes.
• Creating a purchase order at the receiving plant
• Creating delivery and billing documents at the issuing plant
• Posting the goods receipt at the receiving plant
• Posting the invoice receipt at the receiving plant
The key points in this kind of procurement is
• The issuing plant enters a delivery for the stock transport order and a billingdocument. This is an inter company billing document. Pricing takes place as normal.
• When the goods arrive, the receiving plant posts a goods receipt for the purchaseorder. The unrestricted-use stock increases and an accounting document get created.
• The invoice is checked with reference to the purchase order.
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External Procurement
General cycle of activities:
Procurement
Determination of
requirement
Selection ofvendors from
the vendordatabase
Vendor Selectionand Comparison
of Quotations
PO processingPO Monitoring
GoodsReceipt
Invoice
Verification
Payment
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External Procurement
1. Determination of Requirements
Materials requirements are identified either in the user departments or via materialsplanning and control & passed on to the Purchasing department via a Purchase requisitions. You can enter purchase requisitions yourself, or they can be generated automatically by thematerials planning and control system.
2. Source Determination
The Purchasing component helps you identify potential sources of supply based on oldorders and existing longer-term agreements with the vendor. This speeds the process ofcreating requests for quotation (RFQs), which can be sent to vendors.
3. Vendor Selection and Comparison of Quotations
The system is capable of simulating pricing scenarios, allowing you to compare a number ofdifferent quotations. Rejection letters can be sent automatically.
4. Purchase Order Processing
The Purchasing system takes up input data‟s from the requisition and the quotation to helpyou create a purchase order. As with purchase requisitions, you can generate Pos yourself orhave the system generate them automatically.
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Methods of Procurement
• Procurement for Stock
A stock material is a material that is kept in stock. These materialsare kept in stock once received from the vendor. The stock of thismaterials keeps on increasing or decreasing based on amount ofthe quantity received or issued.
To order a material for stock, the material ‘must’ have a masterrecord.
• Procurement for Direct ConsumptionWhen you procure for direct consumption, you specify theconsumption purpose by entering an account assignment (forexample, a cost center).
To order a material for consumption, the material „may‟ have a
master record.
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There are 3 basic forms of external procurement supported by MMPurchasing component.
• One-time purchase orders
• Longer-term contracts with the subsequent issue of release orders
• Longer-term scheduling agreements and delivery schedules
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Forms of Procurement
• One-Time Purchase Order
You use one-time orders for materials or services that you order irregularly.
You can reference a purchase requisition, RFQ, or another PO when creating a one-time order.
• Contract and Release Orders
For materials that are being ordered regularly and in large quantities, we cannegotiate a deal with the vendor for pricing or conditions & record then in a contract.
In a contract you also specify the validity date.
•Scheduling Agreement
If a material is ordered on a regular basis and is to be delivered according to an exacttime schedule, then you set up a scheduling agreement. This method of procurementis typically used when Just-in-Time deliveries are required from the vendor (forexample, in the automobile industry).
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Curriculum
1. Introduction to Procurement2. Organization Structure
3. Master Data
1. Material Master
2. Vendor Master
3. Customizing settings for master data
4. Purchasing
5. Inventory Management
6. Invoice Verification
7. Account Determination8. Batch Management
9. Physical Inventory
10.Consumption Based Planning
11.Standard Reports in MM
12.Standard Tables in MM
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MM Enterprise Structure
Client
Plant
PurchasingOrg.
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Client
• Is the Highest Legal Entity
• An Independent Unit in R/3 System
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Company
• An Independent accounting unit within the client.
• Each has its own P&L account and Balance Sheet
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Plant
• A unit under the company• All Operation of the company take place here (e.g.
Manufacturing, sales, storage Unit, Admin Building)
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Storage Location
• The storage location is an organizational unit that allows thedifferentiation of material stocks with in a plant.
• Physical Inventory is carried out at storage location level.
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Purchasing Organization
• Responsible Organizational Unit for Procuring material /Service
• Procure the Material / Service for one or more plants withinthe company
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Purchasing Groups
• The groups which are responsible for day –to – day buyingactivity in the Purchasing organization
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MM Enterprise Structure
ASPL
BDC MDC
BDC1 BDC2 MDC1 MDC2
Bay11 Bay12 Bay21 Bay22 Bay31 Bay32 Bay41 Bay42
PURB PURM
PURA
CLIENT
COMPANY
PLANT
STORAGE
LOCATION
PURCHASEORGANIZATION
REF PURCHASE
ORGANIZATION
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Configuration – Enterprise Structure
Define here
Assign here
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Defining Organizational Elements
Client :
SPRO > IMG > Enterprise Structure > Definition > Financial Accounting > Define Company > New Entries
Company Code :SPRO > IMG > Enterprise Structure > Definition > Financial
Accounting > Edit, Copy, Delete, Check Company Code > Copy,Delete, Check Company Code
Controlling Area :
SPRO > IMG > Enterprise Structure > Definition > Controlling >Maintain Controlling Area > Maintain Controlling Area
Use Currency type : 10 & Chart of Accounts as : INT
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Defining Organizational Elements
Plant :SPRO > IMG > Enterprise Structure > Definition > Logistics General> Define , copy, delete , check plant > copy, delete , check plant
Storage Location :SPRO > IMG > Enterprise Structure > Definition > MaterialsManagement > Maintain Storage Loc ( w.r.t plant ) > NewEntries
Purchase Organization :
SPRO > IMG > Enterprise Structure > Definition > Materials
Management > Maintain Pur. Org >New Entries.
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Assigning – Enterprise Structure
• SPRO > IMG > Enterprise Structure > Assignment > Financial Accounting > Assign Company Code to Company.
• SPRO > IMG > Enterprise Structure > Assignment > Controlling> AssignCompany Code to Controlling area
• SPRO > IMG > Enterprise Structure > Assignment > logistics General > Assign Plant to Company Code
• SPRO > IMG > Enterprise Structure > Assignment > Materials Mgmt > Assign P.Org to Co . Code
• SPRO > IMG > Enterprise Structure > Assignment > Materials Mgmt > Assign P.Org to Plant
• SPRO > IMG > Enterprise Structure > Assignment > Materials Mgmt > Assign Standard P.Org to Plant
• SPRO > IMG > Enterprise Structure > Assignment > Materials Mgmt >
Assign P.Org to Reference P.Org
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Activate Company code for Materials Mgmt
SPRO > IMG > Logistics General > Material Master > Basic Settings>Maintain Co.Code for Materials Mgmt
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Curriculum
1. Introduction to Procurement2. Organization Structure
3. Master Data
1. Material Master
2. Vendor Master
3. Customizing settings for master data
4. Purchasing
5. Inventory Management
6. Invoice Verification
7. Account Determination
8. Batch Management
9. Physical Inventory
10.Consumption Based Planning
11.Standard Reports in MM
12.Standard Tables in MM
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Agenda
Material master Material master contains the information on allthe materials that a company procures orproduces, stores or sells
Duration (Hours) 1
Objective To get familiar with Material Master
Pre-requisites •Material Master
Course content •Introduction
•Material Master•Demo1_ Creation of Material master
•Demo2_Customization settings
Note – Fields in red boxes are mandatory fields.
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Introduction
• What is Material Master ?
• How the Material master is used in all the departments ?
• How it is useful in creating PO ?
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Material Master
• Material master contains the information on all the materials that a
company procures or produces, stores or sells. The material masterrecord is a companies main source of material specific data. It isused by all components in the R/3 logistics system.
MaterialMasterRecord
Basic data
Materials planning
Stocks in Plant/ storLoc
Accounting
Storage
Warehouse Mgmt
Purchasing
S & D
Work scheduling
Quality management
Forecasting
Classification
Material Master Data
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Material Master
• Integration of all material data in a single database , prevents theproblem of data redundancy. Data contained in material masterrecord is required for many functions with in the R/3 logisticssystem, for example:
• Purchasing data for ordering
• Inventory management data for posting a goods movementsand managing physical inventory.
• Accounting data for material valuation.
• MRP data for material requirements planning.
• Each department in company has it‟s own view in material master • Some material is valid for all organization levels, while some is validonly for certain levels.
• Data at client level
• Data at plant level
• Data at storage location level
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Maintain a material master record: screens
• When creating or editing a material master data, you go through a number of
screens.From initial screen you go to two successive dialogue boxes . In the first
dialogue box, you specify the view you want to process. In second you specifythe relevant organizational levels. You then go to the data screens.
• You can change the standard screen sequence by changing the default values
Material Master
Material
(Industry sector)(Material type)
Organizationallevels
- Plant-Storage location-………..
Selective views- Basic Data- Purchasing-- Accounting
Data screens
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Material type
• Materials with the same basic attributes are grouped together andassigned to a material type. This allows you to manage differentmaterials in a uniform manner in accordance with your company'srequirements. Examples of material types are given in the graphicbelow
Material type
Number assignment
Procurement type
Field selection
User departments
Account determination
..............
Control
Raw materials
Semi finished
Finished products
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Industry sector
• Like material type, the industry sector has a control function in SAPR/3
• When you create a material master record, the industry sectordefines.
• which screens are displayed and in which order
• which industry specific fields are displayed in each screen
• Industry sector you assigned to material cannot be changedlatter.
• In customizing , you can define new industry sectors and maintainfield reference for field selection control according to your company-
specific requirements.
Industry sector
SelectionScreen
ControlField selection
Raw materials
Operatingsuppliers
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Material Type
Material type controls :
• The type of number assignment (internal or external).• The permitted number range interval.
• Which screens are displayed and in which order.
• Which user-department-specific data (view) is suggested for entry.
• Which procurement type is permitted for a material; that is,
whether the material is produced in-house, procured externally, orwhether both options are allowed.
• Along with the plant, the material type determines a material'sinventory management requirement; that is, whether the systemupdates quantity changes in the material master record or updateschanges in value in the stock accounts in Financial Accounting.
• The material type also determines which accounts are posted whena material is posted to stock or leaves the warehouse.
• Various material types are provided in the standard SAP R/3System. If your company needs additional material types, you candefine these in Customizing according to your requirements
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Unit of measure
• In addition to the base unit of measure the system uses for stockkeeping unit and to execute all its calculations, other departmentsuse their own unit of measure. For example Purchasing can useanother unit of measure to sales and distribution or to thewarehouse.
• Base unit of measure: stock keeping unit. All the other unit ofmeasure that you use, are converted to base unit of measure. Youmust enter the conversion factor for the unit of measure in thematerial master.
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Purchasing data in material master record
In the Purchasing view of the material master
• Source list requirement
• Quota Arrangement usage• Automatic PO
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Valuation class
• You can use the valuation class to Combine the materials for
assigning G/L accounts so that you do not have to manage aseparate stock account for each material.
• You maintain the valuation class in accounting view of the materialmaster record. The valuation class allowed for a material dependson the material type and can be configured in customizing.
Valuation class
Valuation class
Valuation class 1
Valuation class 2
Material type300000
300100
Accounting 1
MaterialMaster
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Material Valuation procedures
Material valuation
Price control( In material master )
“ S “ Standard price
“ V “ Moving averageprice
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Demo1_Create Material Master
Objective To create a Material Master
Demo1 Create Material Master
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Demo1_Create Material Master
Objective Selective views for creating material master
Demo1 Create Material Master
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Demo1_Create Material Master
Objective To maintain the data in Basic data1 view
Demo1 Create Material Master
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Demo1_Create Material Master
Objective To maintain the data in Purchasing view
Demo1 Create Material Master
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Demo1_Create Material Master
Objective To maintain the data in Accounting1 view
Demo2 Cutomizing settings
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Demo2_Cutomizing settings
Objective To create Purchasing group, purchasing Value key…etc
Important T – Codes in Material Master
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Important T Codes in Material Master
• MM 01 - Create Material Master• MM02 - Change Material Master
• MM03 - Display Material Master
• MM 17 - Mass Maintenance
• MMAM - Change Material Type• MM11 - Schedule creation of Material Master
• MM50 - Extend the material view(s)
Once material masters are created from one plant same can be extended to other plantsusing T- Code MM 01.
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Curriculum
1. Introduction to Procurement2. Organization Structure
3. Master Data
1. Material Master
2. Vendor Master
3. Customizing settings for master data4. Purchasing
5. Inventory Management
6. Invoice Verification
7. Account Determination
8. Batch Management
9. Physical Inventory
10.Consumption Based Planning
11.Standard Reports in MM
12.Standard Tables in MM
Agenda
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Agenda
Vendor Master The vendor Master record contains all theinformation about the vendor that is needed to
be able to conduct business with them.
Duration (hours) 1
Objective To get familiar with Vendor master
Pre-requisites N.ACourse content • Introduction
• Concept
• Important Data for Vendor Master.
• Demo1_Customizing Settings• Demo 2_Creation,Change and display ofvendor
master
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Concept
• All the relevent data on vendors is managed in Vendor masterrecords that is specifically related to purchasing. It containsinformation about external suppliers like vendor‟s name andaddress as well as data such as :
- General data
- Accounting data
- Purchasing data
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Account Group
– When creating a vendor master record, you must specify an accountgroup. The account group determines :
– The type of number assignment.
– Whether or not a one time vendor is involved.
– Which fields screens contain and whether entries in these fields aremandatory or optional.
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Partner Function
A vendor can take up different roles depending upon the
requirement. these roles are called Partner roles or partnerFunction. some of the roles are given below:
– Ordering address
– Supplier of goods
– Invoicing party
– Payee
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Demo1_Customizing Settings
• Define Account group
• Define Number Ranges
• Define the term of payment
• Define the Partner function• Define the Partner schemas
Demo1_Customizing Settings
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Objective To create an account group
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Demo1_Customizing Settings
Objective To create an account group
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Demo1_Customizing Settings
Objective To create an account group
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Demo1_Customizing Settings
Objective To create an account group
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Demo1_Customizing Settings
Objective To define Number Ranges
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Demo1_Customizing Settings
Objective Assign vendor Account group to numberranges.
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Demo1_Customizing Settings
Objective To Define Terms of payment
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Demo1_Customizing Settings
Objective Define Partner function
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Demo1_Customizing Settings
Objective Define partner determination procedure forschema.
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Demo1_Customizing Settings
Objective Define partner function in schema.
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Demo2_Creation of vendor master
Objective To create a new vendor
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Demo2_Change of vendor master
Objective To change a Vendor master.
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Demo2_Display of vendor master
Objective To display a master record.
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Curriculum
1. Introduction to Procurement2. Organization Structure
3. Master Data
1. Material Master
2. Vendor Master
3. Customizing settings for master data4. Purchasing
5. Inventory Management
6. Invoice Verification
7. Account Determination
8. Batch Management
9. Physical Inventory
10.Consumption Based Planning
11.Standard Reports in MM
12.Standard Tables in MM
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Customizing settings for material master
Customizingsettings formaterialmaster
Customizing the Material Master,according to our businessrequirement.
Duration(Hours)
1
Objective To get familiar with customizing
settings with material masterPre-requisites •Material Master
Coursecontent
•Introduction
•Concept
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Introduction
What is customizing settings for material master ?
How is it useful for end users ?
How does it satisfy company‟s own business requirement ?
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Concept
• Customizing settings for material master, we can customize fieldsaccording to the business requirements. Most cases standard SAPproviding is enough, but some case you need to customize( i.e yourown industry sector, material type, no ranges….. ).
• We can restrict the material number length
• When ever you are creating a Material , if u select you select yourown material type and industry sector, it will display the selectiveviews required views for our material( i.e., what we havecustomized )
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Demo1_Cutomizing settings for Material Master
Objective Material number length – Material (OMSL)
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Demo1_Cutomizing settings for Material Master
Objective To create Industry sector
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Demo1_Cutomizing settings for Material Master
Objective To create Material type (OMS2)
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Demo1_Cutomizing settings for Material Master
Objective To maintain a number ranges (MMNR)
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Demo1_Cutomizing settings for Material Master
Objective
To copy the standard screen sequence toown
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Demo1_Cutomizing settings for Material Master
Objective To assign the screen sequences to materialtype and industry sector
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Curriculum
1. Introduction to Procurement2. Organization Structure
3. Master Data
1. Material Master
2. Vendor Master
3. Customizing settings for master data4. Purchasing
5. Inventory Management
6. Invoice Verification
7. Account Determination
8. Batch Management
9. Physical Inventory
10.Consumption Based Planning
11.Standard Reports in MM
12.Standard Tables in MM
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Agenda
Purchaserequisition
This component use to givenotification of requirements
of materials and/or externalservices and keep track ofsuch requirements.
Duration(Hours)
1
Objective To get familiar with PR
- Material Master Vendor
Note – Fields in red boxes are mandatory fields.
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Introduction
• Define Purchase Requisition
• What are the procurement types exist?
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Concept
• A purchase requisition is a request to Purchasing to procure acertain quantity of a material or a service so that it is available at acertain point in time.
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Purchase Requisition
• Requisitions can be created
• Directly
• Indirectly
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Purchase Requisition
• PR contains number of Items, for each of which a procurement typeis defined.
• Following procurement type are exist.
• Standard
• Subcontracting
• Consignment
• Stock Transfer• External Service
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Concept
• Changing a Purchase Requisition
• If the requisition has already had a PO issued against it then it isrequired to inform the purchasing group
• If the requisition has been approved then changes are only
possible to a limited extent and may themselves be subject toapproval
• If the requisition was created by Materials Planning then youmay not be able to change the requisition or it is require tonotify the materials planner before making any changes.
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Demo1_Customizing Settings
• Define Document Types
• Define Number Ranges
• Define Screen Layout at Document Level
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Demo1_Customizing Settings
Objective To create different document types for PR
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Demo1_Customizing Settings
Objective
To assign Number ranges to a document type
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Demo1_Customizing Settings
Objective
Define Screen Layout at Document Level
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Demo2_ Create Purchase Requisition
Objective
To create a Purchase Requisition
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Agenda
Request ForQuotation This tool is used to manage andcompare requests for quotation(RFQ) issued to vendors and thequotations submitted by the latter in
response to them.Duration(Hours)
1
Objective To get familiar with RFQ/Quotation
Pre-requisites •Material Master, Vendor Master,Purchase Requisition
Course •IntroductionNote – Fields in red boxes are mandatory fields.
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Introduction
• What is a quotation?
• What is RFQ ?
• What is the difference between the two?
• What is the process of vendor selection in your organization?
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Concept
• Request For Quotation (RFQ) is an invite made to a vendor bypurchasing organization to submit a quotation for the supply of goodsor service performance.
• A quotation is a reply by a vendor to a purchasing organization relatedto the supply of goods or service performance subject to specifiedconditions.
• Price Comparison is the process of comparing the prices for all the
quotations received from vendors.
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Demo1_Creation of RFQ
Objective
To create an RFQ
f
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Demo1_Creation of RFQ
Objective
To create a RFQ
D 1 C i f RFQ
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Demo1_Creation of RFQ
Objec
tive
To create a RFQ
D 1 C ti f RFQ
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Demo1_Creation of RFQ
Objective
To create a RFQ
D 2 M i t i i th t ti
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Demo2_Maintaining the quotation
Objective
To maintain a quotation
D 2 M i t i i th t ti
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Demo2_Maintaining the quotation
Objective
Price comparison of quotations
Vendor1 is ranked as 1st (green highlight) and can
be selected for furtherprocessing
D 3 C t i i S tti
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Demo3_Customizing Settings
• Define Document Types
• Define Number Ranges
• Define Screen Layout at Document Level
Demo3 Customizing Settings
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Demo3_Customizing Settings
Objective
To create different document types for RFQ
Demo3 Customizing Settings
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Demo3_Customizing Settings
Objec
tive
To assign Number ranges to a document type
Demo3 Customizing Settings
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Demo3_Customizing Settings
Objective
Define Screen Layout at Document Level
Agenda
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Agenda
Source list Source list specifies the possible sources ofsupply for a material over a given periodof time
Duration
(hours)
1
Objective To get familiar with Source list
Pre-requisites
•Material master• Vendor master
Course • Introduction
Note – Fields in red boxes are mandatory fields.
Introduction
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Introduction
• What is meant by source list ?
• How does your organization maintain this master record ?
• Source list specifies the possible sources of supply for a material over a
given period of time. It shows the time period in which a material may beordered from a given vendor or under a certain long-term purchaseagreement.
• Source list is used in the administration of source of supply.
• Source list can be created manually or generated automatically.
• Source list you can be copied from one plant to another plant
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Demo1 Source list
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Demo1_Source list
Objective
Material Master settings for Source List
Demo1 Source list
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Demo1_Source list
Objectiv
e
Source list requirement at plant level
Agenda
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Agenda
Inforecord
Purchasing info record contains theconcise information on a vendor and thematerial( i.e., the vendors current price isstored in the info record )
Duration(Hours)
1
Objective To get familiar with info record
Pre-requisites
•Material master
• Vendor master
Note – Fields in red boxes are mandatory fields.
Introduction
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Introduction
• What is meant by info record?
• How is your organization maintaining this master record?
• How is it useful in purchasing?
• The purchasing info record ( Info record )contains the information on aspecific material and vendor supplying the material, For example, thevendor's current pricing is stored in the info record.
• Info records can be created at purchasing org / plant level or Purchasingorganization level.
Introduction
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Introduction
• When you create a purchase order, the system searches for inforecord for purchasing organization/plant combination. If there in norecord for this combination, the system searches for purchasingorganization only.
• You can maintain info record manually or automatically fromquotations, purchase orders or outline agreements.
• Info record can be maintained for different procurement types
• Standard
• Subcontracting
• Pipeline
• Consignment
Demo 1 Info record
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Demo 1_ Info record
Objective
To create an Info record – Purchasing org / Plantlevel
Demo 1 Info record
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Demo 1_ Info record
Objective
To create an Info record – Purchasing org / Plantlevel
Demo 1 Info record
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Demo 1_ Info record
Objec
tive
To create an Info record – Purchasing org / Plant
level
Demo 2 Info record
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Demo 2_ Info record
Objective
To create an Info record at PurchasingOrganization level
Demo 2 Info record
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Demo 2_ Info record
Objective
To create an Info record at PurchasingOrganization level
Demo2 Info record
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e o _ o eco d
Objec
tive
To Create an Info record at Purchasing
Organization level
Demo3 Info record
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_
Objective
Info Update in quotation
Demo3 Info record
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_
Objective
Info Update in Purchase order
Demo3 _ Info record
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_
Objective
Info Update in contract ( Outline agreement )
Agenda
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g
PurchaseOrder
A purchase order is a formal request to avendor to supply or
provide goods or services at a certainpoint of time with certain
quantity.Duration(Hours)
1
Objective To get familiar with purchase order.
Pre-requisites
Material master, Vendor master
Note – Fields in red boxes are mandatory fields.
Concept
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p
• It represents the formal and final confirmation to the vendor to supplymaterial or service.
• Its an external document created with ref to PR / RFQ/PO/Outlineagreement by the Purchasing group as per the agreed terms & conditions.
Important Data for Purchase order
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p
• Prerequisites required for maintaining purchase order are as follows.
Header data Item data
VendorOrder(doc.) type
Purchase
organizationPurchase group
Company code
Material no.Plant no.
Quantity
Delivery datePrice
Important Data for Purchaseorder
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• Item category
• Item category controls the procurement process and defineswhether an item requires material number, account assignment,goods receipt, and/or invoice receipt.
• Standard Item categories
• Standard
• Subcontracting
• Third Party
• Consignment
• Stock Transport Order
Important Data for Purchase order
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p
• Account Assignment Category
• It determines the nature of account assignment and accounts to becharged when the incoming invoice or goods receipt is posted.
• Standard Account assignment categories :
• Asset• Order• Production Order• Cost Center• Project• Unknown• Sales order
Document type
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• The purchasing documents are differentiated via document type,also determines which is the relevant number ranges and whichfield should be offered during maintenance purposes.
Process flow
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Purchase Order
With ref.to PRWith ref. toOutline Agree.
With ref.to RFQ
Demo1_Creating a Purchase Order
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Objectiv
e
To create a Purchase Order
Demo2_Customizing Settings
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• Define document type
• Define number ranges
• Define screen layout
• Set tolerance limit for price variance
Demo2_Customizing Settings
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Select the document
Type(NB)
Objectiv
e
To Define the document type purchase order
document.
Demo2_Customizing Settings
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Objectiv
e
To Define the number ranges for purchase
order document.
Demo2_Customizing Settings
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Select the field ME21 And double click.
Objectiv
e
To change the screen layout for Purchase
Order
Demo2_Customizing Settings
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Marked the check box asPer requirement
Objectiv
e
To change the screen layout for Purchase
Order
Demo2_Customizing Settings
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Click on radio button As per requirement And enter the% also
Objectiv
e
To change the tolerance settings
Agenda
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Outline Agreement
This component can be used toenter into longer-term purchasingarrangements with vendorsregarding the supply of materials
or the performance of services.Duration(Hours)
3
Objective To be familiar about Outlineagreement
Pre-requisite Vendor Master
Material MasterNote – Fields in red boxes are mandatory fields.
Outline agreement
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• In the R/3 System, an “outline agreement” is a longer-termpurchase agreement concerning the supply of goods or theservices performance according to predetermined conditions.
These are valid up to a certain period of time and cover apredefined total purchase quantity or value.
• In SAP outline agreements are again subdivided into thefollowing categories
• Contracts• Scheduling agreements
Definition
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• Structure of an Outline Agreement
• Document header: It contains information relating to the entireagreement. For example, the vendor information and header
conditions are in the document header.
• Items: It contains the information specific to the relevantmaterial or service.
• Quantity or price of the item
• Conditions, such as quantity discounts and surcharges
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Contract
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You can also set up corporate buying contracts with your vendors.
• Plant contract/Centrally agreed contract
Contract 1 Contract 2
Plant 1 Plant 2 Plant 3
• Distributed contracts are centrally agreed contracts that are made
available to other R/3 Systems for the purpose of issuing releaseorders against them.
Structure of a contract
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• The contract consists of items defining the individual materials,
material groups, or services with prices and in many casesquantities.
• An item is assigned to an item category, which defines the typeof procurement (e.g. item category K for consignment, or L for
subcontracting).
Contract
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• Contract items can relate to a single plant or to all plants belong toa same purchasing organization (centrally agreed contract).
• All the plants belong to a single purchasing organization can orderagainst a centrally agreed contract.
• An enterprise working with a central purchasing organization holdseveral plants can negotiate better conditions at a high level.
• Centrally agreed contracts can be entered into with a vendor‟sentire corporate group. The individual contract release orders canbe issued to other individual companies belonging to the vendorcorporate group. This can be made possible when the partner
Quantity Based contract
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153This type of contract is used when if the total quantity of goods to
Quantity contract
TargetQuantity asspecified inthe contract
Value Based contract
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This type of contract is used when if the total value of all releaseorders issued against the particular contract is not to exceed a
certain redefined value
TargetQuantity asspecified inthe contract
Value contract
Scheduling Agreements
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• It is a longer-term purchase arrangement with the vendor underwhich materials are procured on predetermined dates within acertain time period.
• Working with scheduling agreements can shorten processing timesand reduce the amount of paperwork.
• You can carry out your manufacturing operations on the Just-In-
Time (JIT) principle.
Scheduling Agreements
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• A scheduling agreement consists of a number of items for which aprocurement type has been defined. The procurement types whichare defined are as follows
• Standard
• Subcontracting
• Consignment
• Stock Transfer
• Delivery of the total quantity of material specified in the agreementis spread over a certain time period, consisting of lines indicatingthe individual quantities with the corresponding delivery dates.
S A can be created in two ways
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• Manually – By entering all the data manually. For this theprerequisites are
• Account assignment-For each item to be posted to anaccount you need the account assignment data.
• Purchase organization/ Purchasing Group-You must assignthe scheduling agreement to a purchasing organization & apurchasing group.
• Referencing Technique- By referring other documents like
• PR
• RFQ‟s/Quotations
• Other Scheduling agreements
Demo1_Creation of Contracts
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Objec
tive
To create a contract
Demo1_Creation of Contracts
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Objec
tive
To create a contract
Demo1_for Creation of Contracts
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Objec
tive
To create a contract
Fill in all the detailsrelated to the material
Demo1_for Creation of Contracts
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Objec
tive
To create a contract
Demo2_Customizing Settings
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Objec
tive
To assign Number ranges to the contract
Demo2_Customizing Settings
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Objec
tive
To assign Number ranges to the contract
Demo2_Customizing Settings
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Objec
tive
Define Screen Layout
Demo3_Creation of scheduling agreements
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Objec
tive
To create a Scheduling Agreement
Demo3_Creation of scheduling agreements
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Object
ive
To create a Scheduling Agreement
Demo3_Creation of scheduling agreements
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Objecti
ve
To create a Scheduling Agreement
Fill in all the detailsrelated to the material
Obj T S h d li A
Demo3_Creation of scheduling agreements
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Objec
tive
To create a Scheduling Agreement
Agreement Numbergets created
Demo3_Creation ofscheduling agreementsObj i
T S h d li Li
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Objecti
ve
To create Scheduling Lines
Enter the schedulingagreement Number
Demo3_Creation of scheduling agreements
Obj i S h d li i
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Objecti
ve
To create Scheduling Lines
Select the line items& click here to enter
the schedule lines
Demo3_Creation of scheduling agreements
Obj ti T t S h d li Li
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Objecti
ve
To create Scheduling Lines
Enter the dateon which you need thematerial to be delivered
Enter the scheduled Quantity
Demo4_Customising Settings
Obj T i N b t th S h d li
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Objec
tive
To assign Number ranges to the Scheduling
agreement
Demo4_Customising Settings
Obj T D fi D t t f h d li
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Objec
tive
To Define Document types for scheduling
agreement
Agenda
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Quota
Arrangement
This tool forms a part of the Sourcing
Administration. A quota arrangementdivides the total requirement of a materialover a period among certain sources ofsupply by assigning a quota to each source
Duration (hours) 1Objective To be familiar about the process of Quota
Arrangement
Pre-requisites •Material Master
•Info Record
•Source List
Course content • Concept
• Important Data for Quota Arrangement
Note – Fields in red boxes are mandatory fields.
Concept
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• Quota Arrangement is a tool which is used in Sourcing Administration
• A Quota Arrangement divides the total requirement of a Material
among the certain Sources of Supply (Vendors) and then assignsthe Quota to each Source.
• This particular Quota specifies the portion that is to be procuredfrom that assigned Source.
Important Data for Quota Arrangement
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• Following are the important data‟s required for maintaining a Quota Arrangement
• Material No/Plant No to which the Quota Arrangement applied
• Procurement Type of the Material
• Vendor Number
• Validity period of the Quota Arrangement
• Quota to be assigned to the each source of supply
Quota Rating Formula
Q t R ti Q t ll t d Q tit Q t B Q tit
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• Quota Rating = Quota-allocated Quantity + Quota Base Quantity
Quota
• Quota-allocated quantity: Total quantity from all purchaserequisitions, purchase orders, release orders, and schedulingagreement schedules allocated to a given source of supply. (The
quantities of quota-allocated planned orders are also taken intoaccount)
• Quota base quantity: This is the Quantity used to control thequota arrangement when new sources of supply are identified
/included.
• Quota: This is the number indicating the portion of totalrequirement of the Material that is to be given or assigned to aparticular source/vendor.
Source Determination based on Quota Rating
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• The Source with the Lowest Quota Rating represents the ValidSource.
• If more than 1 source has the quota rating as 0, then the sourcewith the highest quota is selected.
• The Concept States that higher the quota, lower the quota
rating and higher the probability that the relevant source will bedetermined as the valid source of supply.
Demo 1_Quota Arrangement
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CustomizationSettings for
Material Master
Assign & ProcessPurchase
Requisition
CreatePurchase Order
Display QuotaArrangement
Maintain QuotaArrangement
Maintain SourceListCreate Info Record
Create PurchaseRequisition
PROCESS FLOW
•Click on the text mentioned inside the Box to go to the respective slides.
Demo1_Quota Arrangement
Objec
To make settings in material master to enable
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Objec
tive
To make settings in material master to enable
Quota Arrangement
Demo1_Quota Arrangement
Objec To create an Info Record
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Objec
tive
To create an Info Record
Demo1_Quota Arrangement
Objecti To maintain a source list
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Objecti
ve
To maintain a source list
Demo1_Quota Arrangement
Objec
To create a quota arrangement
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Objec
tive
To create a quota arrangement.
Demo1_Quota Arrangement
Objec To create a Purchase Requisition
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Objec
tive
To create a Purchase Requisition
Demo1_Quota Arrangement
Object
To assign vendors automatically to purchase
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Object
ive
To assign vendors automatically to purchase
requisitions depending upon their Quota
Demo1_Quota Arrangement
Objec To assign and process Purchase Requisitions
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Select the 1st Req & Click on
Assign Automatically.
.
Objec
tive
To assign and process Purchase Requisitions
Demo1_Quota Arrangement
Objec To assign and process Purchase Requisitions
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Dependingupon the
Quota‟s thesystem willassign the Vendors.
Objec
tive
To assign and process Purchase Requisitions
Demo1_Quota Arrangement
Objec To assign and process Purchase Requisitions
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Select the 1st Req & Clickon Assignments.
Objec
tive
To assign and process Purchase Requisitions
Demo1_Quota Arrangement
Objec To assign and process Purchase Requisitions
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VendorInformation isdisplayed.
Objec
tive
To assign and process Purchase Requisitions
Demo1_Quota Arrangement
Objec To assign and process Purchase Requisitions
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Click on the vendor &
save the documentthen click on Process Assignment.
A Purchase Order Dialog Box will open and you will have to click on ok to draft in the Purchase Order.
Objec
tive
To assign and process Purchase Requisitions
Demo1_Quota Arrangement
Objec To create a Purchase Order with reference to a
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Select thePurchaseRequisition &
Click adopt.
j
tive
To create a Purchase Order with reference to a
Purchase Requisition
Demo1_Quota Arrangement
Objec To create a Purchase Order with reference to a
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ClickonSave
Objec
tive
To create a Purchase Order with reference to a
Purchase Requisition
Demo1_Quota Arrangement
Objec To display a Quota arrangement
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Objec
tive
To display a Quota arrangement
Note that the
allocated qty haschanged on theaccount of qtycovered under theearlier 2 requisitions.
Agenda
Automatic Automatic Purchase Order is a
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Automatic
creation ofPurchaseOrder
Automatic Purchase Order is a
process by which the systemautomatically creates the purchaseorders from a particular PurchaseRequisition
Duration(Hours)
1
Objective To be familiar with the process of
Automatic Purchase OrderPre-requisites Knowledge about Material Master,
Vendor Master, Info Record, SourceList & Purchase Requisition
Note – Fields in red boxes are mandatory fields.
Concept
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• Automatic Purchase Order is a process by which the systemautomatically creates the purchase orders from a particularPurchase Requisition
Demo 1_Automatic Purchase Order
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CustomizationSettings for
Material Master
Automatic
Creation ofPurchase OrdersFrom
Requisitions
MaintainingSource List
Creation ofInfo Record
CustomizationSettings for
Vendor Master
Creation PurchaseRequisition
PROCESS FLOW
•Click on the text mentioned inside the Box to go to the respective slides.
Demo 1_Automatic Purchase Order
Objecti To make settings in Material master for
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Objecti
ve
To make settings in Material master for
Automatic PO to be enabled.
Demo 1_Automatic Purchase Order
Objec To make settings in Vendor master for
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Objec
tive To make settings in Vendor master for
Automatic PO to be enabled.
Demo 1_Automatic Purchase Order
Object To make settings in Info Record for Automatic
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Object
ive
To make settings in Info Record for Automatic
PO to be enabled
Demo 1_Automatic Purchase Order
Objec To maintain source list in order to enable
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j
tive Automatic Purchase Order
Demo 1_Automatic Purchase Order
Objec
To create a Purchase Requisition.
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j
tive
q
Demo 1_Automatic Purchase Order
Objec To create Purchase Orders automatically from
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j
tive
y
Purchase requisitions
Click Here
Demo 1_Automatic Purchase Order
Objec To observe the Purchase orders created
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Note the Following
j
tive automatically
Agenda
Account It is a option in a Purchase Order by
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Assigned PO
p y
which procurement of material ispossible for direct consumption
Duration
(Hours)
1
Objective To be familiar with about Account Assignment PO
Pre-requisite Purchase Order Creation
Coursecontent
•Definition
•Concept
•Purpose of ProcurementsNote – Fields in red boxes are mandatory fields.
Account Assigned PO
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•
It is a option in a Purchase Order by which procurement of material is possiblefor direct consumption.
Procurement of external services
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Externalservices
Company occasionally requires smallmaintenance tasks( for example, changingthe defective lights ) to be carried out byexternal contractors. This is called service
PO or External services management.
Duration(Hours)
1
Objective To be familiar with the process of Serviceprocurement of external services
Pre-requisites
• Procurement of materials
Course Introduction
Note – Fields in red boxes are mandatory fields.
Introduction
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• How does your company procure an external service?
• Company occasionally requires small maintenance task ( forexample, changing the defective lights, house keeping, painting ) tobe carried out by external contractors. This is called Externalservices management or service PO
• Procurement of services are of two types :
• planned services
• un planned services
Concept
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• Master records for creating service PO:
• Service master record
• Master conditions for services
• Standard service catalogue
• Model service specifications
• A service master record contains a service description and unit ofmeasure.
• Assign a price to each service master record via conditions or canbe entered manually.
Concept
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• Stock material are subjected to inventory management, whereasservices are procured for direct consumption for eg., a cost centre,a project
• The system stores services that have been performed in serviceentry sheets. The relevant postings are made in financial accountingand cost accounting.
Concept
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• When entering the services , you reference the purchase order. Youcan copy the planned services directly from the purchase order intothe service entry sheet.
• Un planned services can be entered manually.
• The invoice verification procedure is carried out with referencepurchase order.
This means that all service entry sheets accepted for this purchase
order aresuggested for invoice verification.
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Process Flow
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DeterminationofRequirements Creation of
Servicespecifications
Source
determination
PO processing
Bid invitation
Quotation entry
Award phase
PO monitoring /Follow-up
Service entry
sheet
Serviceacceptance
Invoice verification
Payment
Demo1_Procurement of External services
Objecti To Create a Service PO – ME21N
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ve
Demo1_Procurement of External services
Objec Create service entry sheet – ML81N
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tive
Demo1_Procurement External services
Objec Invoice verification - MIRO
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tive
Concept
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• Scenario handled in MM for Procurement for Consumption is Account Assignment of PO
• In Account Assignment while doing GR the relevant GL account getsDebited
Options of Account Assignment
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• Single Account Assignment
• Multiple Account Assignment
Purpose of Procurement
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• Procurement for Stock
• Procurement for Direct Consumption
Procurement for Stock
Procurement for Consumption
Account Assignment Category
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A key indicating whether an item is to be assigned to an auxiliary account(such as cost center) . The account assignment category determines which
account assignment details are required for the item for ex : cost center or
account number.
Account Assignment Category
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• Usage of Account Assignment Category in MM
ASSET
Cost CentreProduction Order
Project
Sales Order
Order
Purchase Order
Procurement for stock v/s consumption
Procurement for Procurement for
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Procurement for
Stock
With Mat.MasterRecord
AccountAssignment
AutomaticAcc.Assgt
Data from Mat. Master
Stock Account
Procurement for
Consumption
With Mat.MasterRecord
Enter Acc. Ass.Category
Manual Acc. AssgnData Entry Required
ConsumptionAcc.Cost Centre
Asset
Without Mat.Master Record
Procureme
nt for
Procurement for
Consumpti
Procurement for stock v/sconsumption
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Material Number isRequired
No Account AssignmentCategory
k
Material Number is not mandat
and it is possible
Account Assignment Categorymandatory
Posting to Consumption Accoun
Stock on
Demo1_Account Assigned PO
Objec To Create Account Assignment PO by using Cost
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tive Centre
Demo2_Customising settings
Objec To Maintain Account Assignment Category
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tive
Demo2_Customising settings
Objec Defining combination of Item Category &
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tive Account assignment category
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Introduction
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• What is a release procedure in the SAP R/3 System?
• How does your company currently handle this approval process?
• What criteria currently drive your approval process?
• Who currently has to approve your documents?
• Do certain people have to approve before others?
• What happens if your documents are not approved?
Concept
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Release Procedure is the electronic approval process for releasing /approving any purchase document in SAP.
It can be used to release internal documents such as Purchase Requisitionor external documents such as Purchase order, contract, scheduling
agreement.
Release procedure are of two types
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• Release procedure with classification
• Release procedure without classification
Demo1_Release Procedure with Classification
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Creation ofCharacteristics
Grouping theCharacteristicsin a Class
Defining theReleaseProcedure
Definition ofRelease Group
Definition ofRelease Codes
Definition ofReleaseIndicator
Creation ofRelease
Strategies
Defining theRelease
Prerequisites
Specify theRelease Status
for eachRelease Code
ClassificationSimulation of
ReleaseStrategy
Characteristics
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Characteristics are the criteria upon which release condition aresatisfied.
Example - Plant, Account Assignment Category, Total Value,Material Group etc.
Demo1_Release Procedure with Classification
Objec To create different characteristics for the release
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tive procedure
Click on “EditCharacteristics”
Demo1_Release Procedure with Classification
Objec To create different characteristics for the release
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tive procedure
Demo1_Release Procedure with Classification
Objec To create different characteristics for the release
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tive procedure
Demo1_Release Procedure with Classification
Objec To create different characteristics for the release
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tive procedure
Class
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Class is used to group together characteristics that are used to constitute arelease condition for release strategy.
Demo1_Release Procedure with Classification
Objec To group the Characteristics in a class
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tive
Click on EditClass
Demo1_Release Procedure with Classification
Objec
To group the Characteristics in a class
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tive
Release Group
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It is the grouping of one or more release strategies. This permitsmultiple usage using the same release key.
Example
Release group 01 is defined for purchase requisitions and releasegroup 02 for purchase orders. You can define release strategy S3for both purchase requisitions and purchase orders.
Demo1_Release Procedure with Classification
Objecti To define a Release Group
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ve:
Click on “Define
Release Procedure”
Demo1_Release Procedure with Classification
Objecti To define a Release Group
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ve:
Click on “ReleaseGroups”
Release Code / Point
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It is a two-character ID given to a person to release (approve) apurchasing document.
Example
– 01,02,…… or AA, AB,…
– EN for Engineer, MG for Manager etc.
Demo1_Release Procedure with Classification
Objecti To define a Release Code
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ve:
Click on “DefineRelease Procedure”
Demo1_Release Procedure with Classification
Objecti To define a Release Code
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ve:
Click on “Release
Codes”
Demo1_Release Procedure with Classification
Objecti To define a Release Code
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ve:
Define ReleaseCodes here andtheirdescriptions
Release Status / Indicator
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It is a code that represents a release status.
The release status is the current “standing” of the item orthe purchase document.
Example
If the proper approval has not yet been received, the releasestatus would display as “blocked.” The status tells the systemwhat is allowed for the item or document
Demo1_Release Procedure with Classification
Objecti To define a Release Indicator
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ve:
Click on “DefineRelease Procedure”
Demo1_Release Procedure with Classification
Objecti To define a Release Indicator
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ve:
Click on “DefineRelease Indicator”
Demo1_Release Procedure with Classification
Objecti To define a Release Indicator
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ve:
Define ReleaseIndicators here
Release Pre requisite
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It indicates the order in which individual release codes may releasethe purchasing document.
Example
01,02,03 are release codes. 03 has prerequisite of code 02 and 01,which means 03 can release the document only if 01 and 02 havereleased it.
Demo1_Release Procedure with Classification
Objecti To define a Release Pre-requisite
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ve:
Click on ReleaseStrategies
Demo1_Release Procedure with Classification
Objecti To define a Release Pre-requisite
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ve:
Double Click onRelease
Strategies
Demo1_Release Procedure with Classification
Objecti To define a Release Pre-requisite
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ve:
Click on ReleasePre requisites
Demo1_Release Procedure with Classification
Objecti To define a Release Pre-requisite
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ve:
Flag the releasecodes in therequiredsequence andclick on continue
Demo1_Release Procedure with Classification
Objecti
e
To define a the status of the purchase
d t ft h l
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ve: document after each release
• Click onRelease status
• Flag theRelease codes
Demo1_Release Procedure with Classification
Objecti
ve:
To define a the classification of the release
strategy
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ve: strategy
Click onClassification
Demo1_Release Procedure with Classification
Objecti
ve:
To define a the classification of the release
strategy
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ve: strategy• Give the
differentvalues for the
characteristics
• Click on theright arrow as
indicated to goback to thereleasestrategy screen
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Demo3_Release of a Purchase Order
Objecti
ve:
To Release a Purchase Order
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ve:
Demo3_Release of a Purchase Order
Objecti
ve:
To Release a Purchase Order
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ve:
Click onIndividualrelease
Demo3_Release of a Purchase Order
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Demo3_Release of a Purchase Order
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P O released
by all therelease codes
Agenda
Pricing and
Conditions
The term Pricing is used broadly todescribe the calculation of prices & costs.Conditions enables you to store pricing
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Conditions Conditions enables you to store pricingstipulations agreed with the vendor
Duration
(Hours)
3
Objective To be familiar with Pricing and Conditions
Pre-requisites
•Info record
•Material master
• Vendor master
•Purchase Order
Course • ConceptNote – Fields in red boxes are mandatory fields.
• Pricing
Concept
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• Pricing• The term Pricing is used broadly to describe the calculation of
prices & costs
• Pricing in SAP is triggered through principle of ConditionTechnique.
• Gross price
• Price excluding any possible discounts or surcharges
• Net price
• Price taking discounts, surcharges, and possibly taxes into
account• Effective price
• Net price plus delivery costs, cash discount, and miscellaneousprovisions for accrued costs or rebates
Concept
• Conditions
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• Conditions• Conditions enables you to store pricing terms agreed with the
vendor
• Time dependent Condition
• Validity periods and scales can be specified for these conditions.
• Time independent depend Condition
• No validity periods and scales can be defined for these
conditions.
• Condition technique
– Specifies method by which the system determines prices frominformation stored in condition record
Important Data for Conditions and Pricing
Key / Description Control
Condition class : Prices
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PB00Gross Price
FRB1Freight Absolute
SKTOCash discount
Condition class : PricesCalculation Type : Qnty dependentCondition category : Base PriceAccess sequence : Gross price
Condition class : Discount/surcharge
Calculation Type :Fixed amountCondition category : Delivery cost
Condition class : Discount/surchargeCalculation Type : PercentageCondition category : Cash discount
Condition Technique
• Access sequence
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• Access sequence• It is a search strategy which searches for valid records of a
certain condition types.
• Condition Type
• It represent pricing elements in the system,
• Example - percentage discounts ,freight costs, taxes orcustom duties
• Condition Table• A combination of fields that defines the key of a condition
record.
Condition Technique
• Calculation Schema
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Calculation Schema• A calculation schema groups together all condition types
that play a part in calculating the price. It sets out the orderin which the condition types are taken into account in thecalculation.
• Schema Group• Group of vendor or purchase organization that use same
calculation schema.
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Schema Determination
Pur order
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Schema
gr pur
org
Schema
gr
vendor
Calculationschema
RM0000
XM0000
0001 01 YM0000
0002 02 ZM0000
Pur order
Pur org 1000
Vendor A
VendorSchema group 02
A
Important Data for Conditions and Pricing
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• The condition group embraces a number of different materialssupplied by a vendor to which a uniform discount or surchargeapplies.
• The condition group is a freely definable, four-character,alphanumeric string that is assigned in the info record.
Important Data for Conditions and Pricing
Condition Group
Info record
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Condition GroupVendor A
Material 1
Condition Group XY
Info record
Vendor A
Material 2
Condition Group XY
Info record
Vendor A
Material 3
Condition Group XY
Condition Group RGRO
Vendor A
Condition Group XY2 % discount
Purchase Order
Item Material Price
10 1 100
2 % discount
• 2 150
2 % discount
30 3 200
Price Determination Process
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• When you create a PO, a contract release order, or a deliveryschedule, the R/3 System searches existing documents for validconditions and adopts it it as default values in the newdocument.
• The price determination process is carried out in a number ofsteps:
• First, the relevant calculation schema is determined.
• Then the system searches for condition records for all conditiontypes listed in the calculation schema that have an access
sequence assigned to them.• The search for condition records is carried out in the order
specified in the access sequence.
• The search is concluded when a valid condition record is found.
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Header, Item & Group Condition
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• Header conditions are entered in the header of a document andrelate to all the items of that document.
• Item conditions are conditions relating to a single item of a
document.
• If the same condition occurs in different document items, theitem values are added up and the result used as the basis fordetermining the scale level.
• If the condition type is entered at header level, the value isdivided among the items
Important Data for Conditions and Pricing
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Condition Exclusion
d l d
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• Condition exclusion procedure:
• If several condition records are valid for price determinationpurposes , you can define rules specifying which conditionrecords are to be chosen and which are not to be taken into
account.• An exclusion group is a list of condition types that are
compared with each other during the price determinationprocess and lead to the exclusion of an entire group ofcondition types or individual condition types within a group.
Condition Records & Condition Tables
Condition table A017 (info record with Plant )
Conditiontype Vendor material Pur org Plant - - - - - -
Condition
record No
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( )
Condition table A018 (info record with out Plant)
table KONP item condition
PB00 A 1 1000 1000 - - - - - - 1234
Conditiontype Vendor material Pur org - - - - - -
Conditionrecord No
Conditionrecord No Conditiontype - - - - - - ConditionAmount
PB00 A 1 1000 - - - - - - 4321
1234
4321
PB00
PB00
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
10.0
11.0
Demo1_Customizing Conditions and Pricing
Object
ive
To create an Access Sequence
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Select 002for grossprice andclick onAccess
ive
Demo1_Customizing Conditions and Pricing
Object
ive
To create an Access Sequence
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ive
Demo1_Customizing Conditions and Pricing
Object
ive
To define Condition types
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ive
Demo1_Customizing Conditions and Pricing
Object
ive
To define Condition types
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SelectPB00And clickon detailbutton
ive
Demo1_Customizing Conditions and Pricing
Object
ive
To define Condition types - Control Data
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ive
Demo1_Customizing Conditions and Pricing
Object
ive
To maintain Condition tables
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ive
Demo1_Customizing Conditions and Pricing
Select a table No. other then from the
Object
ive
To maintain Condition tables
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Select a table No. other then from thelist Eg - 965
ive
Demo1_Customizing Conditions and Pricing
Object
ive
To maintain Condition tables
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Select theRequired fieldfrom the cat
log and doubleclick on it
Demo1_Customizing Conditions and Pricing
Object
ive
To define Condition control at plant level
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Demo1_Customizing Conditions and Pricing
Object
ive
To define Calculation Schema
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SelectRM0000
And clickon control
Demo1_Customizing Conditions and Pricing
Object
ive
To define Calculation Schema
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Demo1_Customizing Conditions and Pricing
Object
ive
To defining a Schema determination
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Select thecalculation
schema
Demo1_Customizing Conditions and Pricing
Object
ive
To defining a Schema determination
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RM0000 iscalculationschema for
standardPO
Demo1_Customizing Conditions and Pricing
Object
ive
To defining a Schema Group
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Double click onrespectiveSchema groups
Demo1_Customizing Conditions and Pricing
Objec
tive
Defining Condition Exclusion
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Click fordefining
condition
exclusion
Demo1_Customizing Conditions and Pricing
Objecti
ve
Defining Condition Exclusion
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Demo1_Customizing Conditions and Pricing
Objec
tive
Defining Condition Exclusion
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Assignment of ConditionExclusion to Condition Types
Demo1_Customizing Conditions and Pricing
Objective
Defining Condition Exclusion
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Assignment
of ConditionExclusion toCalculation
Schema
Demo2_ Creating purchase order
Objective
To observe the conditions in a purchase order
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HeaderConditions
Demo2_ Creating purchase order
Objective
To observe the conditions in a purchase order
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Itemconditions
Curriculum
1. Introduction to Procurement
2.Organization Structure
3. Master Data
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1. Material Master
2. Vendor Master
3. Customizing settings for master data
4. Purchasing5. Inventory Management
6. Invoice Verification
7. Account Determination
8. Batch Management
9. Physical Inventory10.Consumption Based Planning
11.Standard Reports in MM
12.Standard Tables in MM
Agenda
Goods
Receipt
Goods Receipt is the term used to
describe an increase in warehousestock due to receipt of goods from
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pstock due to receipt of goods fromexternal vendors or from internalstock transfer
Duration(hours)
1
Objective To get familiar with Goods ReceiptPre-requisites
•Material Master
•Info Record
Goods Receipt
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The term used to describe an increase in warehouse stock dueto receipt of goods from external vendors, from internal stocktransfer, as initial stock balance or for quality inspection.
Reference documents for Goods Receipt are
• Purchase Order
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• Order
• Reservation
• Inbound delivery
• Outbound delivery
Effects of a Goods Receipt
• Stock & Consumption A/c updated• Material & Accounting document created
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g
• Stock and value updated in material master
• PO /PO history update
• QM lot created.
Demo1_ Goods Receipt for PO
Objective
Goods Receipt for PO (MIGO)
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Agenda
Goods Issue A reduction in warehouse stock due
to a withdrawal of stock or thedelivery of goods to a customer.
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y g
Duration(Hours)
1
Objective To get familiar with Goods Issue
Pre-requisites Purchase Order
Course
content
•Introduction
•Concept
•Goods Issue - General•Demo1_Goods Issue – WithoutNote – Fields in red boxes are mandatory fields.
Introduction
• A reduction in warehouse stock due to a withdrawal of stock or thedelivery of goods to a customer.
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Features
The Inventory Management system supports the following typesof goods issues:
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– Withdrawal of material for production orders
– Scrapping and withdrawal of material for sampling
– Return deliveries to vendors
– Other types of internal staging of material – Deliveries to vendors without the involvement of the SD Shipping
component
Purpose
Companies usually differentiate between various typesof Goods Issues, each of which is handled in R/3
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of Goods Issues, each of which is handled in R/3system as follows.
• Stock Scheduled for Delivery
• Material Withdrawals for Production Orders
• Other Types of Internal Staging of Material
• Return Deliveries to Vendors
• Scrapping/Sampling
Demo1_Goods Issue_ Without Reference
Objective
To post a Goods issue
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Demo1_Goods Issue_ Without Reference
Objective
To post a Goods issue
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Demo2_Goods Issue _ With Reference to Reservation
Objective
To post a Goods Issue With reference ToReservation
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Results Of A Goods Issue Posting
A goods issue has the following results in the system.
• Material document is created• Accounting document is created
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Accounting document is created
• Goods receipt/issue slip is created
• Stock update
• Update of G/L accounts• Consumption update
• Reservation update
• Order update
Agenda
Transfer This component helps us tot i i ht th
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Posting get an insight on the processof Transfer Posting.
Duration(Hours)
½ Hr
Objective To get familiar with Transfer
Posting
Pre- Material Master, MovementTypes
Note – Fields in red boxes are mandatory fields.
Introduction
• What do you mean by Transfer Posting?
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• What is the difference between a stock transfer and a transferposting ?
Concept
• A Transfer Posting usually refers to a change in a materials stockfor example release from quality inspection, accepting consignmentmaterial etc
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material, etc.
Demo1_Transfer Posting Process
Objective
To get to know the status of the Material
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Demo1_Transfer Posting Process
Objective
To get to know Quantity of Material in QualityInspection and to transfer to Unrestricted use.
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Demo1_Transfer Posting Process
Objective
Transfer all the stock from Quality toUnrestricted use
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Demo1_Transfer Posting Process
Objective
Transfer all the stock from Quality toUnrestricted use
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Demo1_Transfer Posting Process
Objective
Observe the Stock Balances
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Demo1_Transfer Posting Process
Objective
Observe the Stock Balances
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Agenda
StockT f
This component helps us toget an insight on the Stock
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Transfer get an insight on the StockTransfer process.
Duration(Hours)
1 Hr
Objective To get familiar with process
of Stock Transfer
Pre- Material Master, MovementTypes
Note – Fields in red boxes are mandatory fields.
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Concept
•Stock Transfers are components used to remove stock from onestorage location and place them in another storage location.
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• Depending upon the organization of the company and it‟s salespolicy, internal stock transfers also might be necessary.
Stock Transfers can occur at 3 different levels
• Stock Transfer from Company Code to Company Code
Stock Transfer from Plant to Plant
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• Stock Transfer from Plant to Plant
• From Storage Location to Storage Location (within a Plant)
Stock Transfers can be carried out in 3 different ways
• Stock Transfer using the 1 step procedure
• Stock Transfer using the 2 step procedure
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• Stock Transfer using the 2 step procedure
• Stock Transfer using the Stock Transport order
Demo1_ Stock Transfer Plant to Plant -1 Step
Objective
Check for stock balance of Material, “Fluconazole” in Plant 1000
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Demo1_ Stock Transfer Plant to Plant -1 Step
Objective
Check for stock balance of Material, “Fluconazole” in Plant 1000
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Demo1_ Stock Transfer Plant to Plant -1 Step
Objective
To transfer 20 Qty of Material, “Fluconazole”from Plant 1000 to Plant 1100
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Demo1_ Stock Transfer Plant to Plant -1 Step
Objective
To transfer 20 Qty of Material, “Fluconazole”from Plant 1000 to Plant 1100
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Demo1_ Stock Transfer Plant to Plant -1 Step
Objective
To check whether 20 quantity of Fluconazole isreceived in Plant 1100 after the stock transfer.
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Demo1_ Stock Transfer Plant to Plant -1 Step
Objective
To check whether 20 quantity of Fluconazole isreceived in Plant 1100 after the stock transfer.
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Agenda
Reservation A request to the warehouse to keepmaterials ready for withdrawal at a later
date and for a certain purpose.Duration 1
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Duration(Hours)
1
Objective To get familiar with Reservation
Pre-requisites
Material master and Purchase Order.
Coursecontent
• Concept
• Demo1 Create Reservation
Reservation
• Make a request to the warehouse to keep materials ready forwithdrawal at a certain date and for a certain purpose. it
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p psimplifies and accelerates the Goods receipt process.
• A reservation for goods can be requested by variousdepartments for various account assignment objects (such ascost center, order, asset, etc.).
Manual and Automatic Reservations
• In R/3 system Manual reservations are entered directly by the
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• In R/3 system Manual reservations are entered directly by theuser.
• In R/3 system Automatic reservations are generated
automatically by two types.• Reservations for orders, networks, WBS elements:
• The components from the warehouse are automaticallyreserved When an order, a network, or a project iscreated.
• Stock transfer reservations:• The system generates a stock transfer reservation in the
plant for the replenishment quantity when the availablestock on hand falls below the reorder point If reorder
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• In Inventory Management Choose, Reservation -> Create.
• The initial screen appears, Enter the following data:
• Base date
Creating a Reservation
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Base date
• Movement type
• Plant
• The collective entry screen appears.
• Enter an Account Assignment
• Some of the account assignment fields (for example,G/L account) need not be maintained manually. Therelevant information is automatically copied from the
account assignment object
• Enter a G/L Account
• If you do not enter an account, the system willautomatically determine the G/L account when the
Creating a Reservation Using a Reference Document
• You use this function to copy items from an existing reservationwhen entering a new reservation. When doing this, In Inventory
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g g yManagement Choose, Reservation -> Create.
• Enter the base date of the new reservation. Enter a movement
type only if you want a movement type that differs of thereservation to be copied.
• Enter the reservation No. to be copied in the Reservation field(under Ref.).
• You can also choose Reservation -> Create w. reference To
reference.• The item selection screen is displayed. The list contains all items
from the reference reservation. If necessary, change the accountassignment.
• Select the items to be co ied to the new reservation. You can
Displaying a Reservation
•
• Display an individual reservation (MB23)
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Display an individual reservation (MB23)
• In Inventory Management Choose, Reservation ->Display.
• Display a list of all reservations(MB25)
• In Inventory Management Choose, Reservation ->Reservation list.
Changing a Reservation
•
• Even after withdrawn the reserved quantity, You can change a
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e a te t d a t e ese ed qua t ty, ou ca c a ge amanual reservation at any time.
• You can change the data (for example, quantity or storagelocation) directly on the collective processing screen. Alternatively, you can select one particular item and change thedata on the detail screen
• You cannot change the account assignment data (for example,cost center or order). If the account assignment is incorrect, youmust delete the reservation and enter a new reservation.
Demo1_Create Reservation
Objective
To create a reservation
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Demo1_Create Reservation
Objective
To create a reservation
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Demo1_Create Reservation
Objective
To create a reservation
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Agenda
Sub –Contracti
ng
The vendor (the subcontractor) receivescomponents from which he manufactures
a product. The product is ordered in apurchase order. The components requiredby the vendor to manufacture the ordered
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by the vendor to manufacture the orderedproduct are listed in the purchase orderand provided to the subcontractor
Duration(Hours)
2
Objective To become familiar with Sub-Contacting
Pre-requisites
• Info record,
• Material master
• Vendor master
This unit will cover
• ( Purchase order ) Sub-Contacting order
Sub-Contracting
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( Purchase order ) Sub Contacting order
• Provision of parts for sub contracting
• Goods receipts and postings• Posting a Subsequent Adjustment
• By-products in Subcontracting
• Subcontracting for Project and Sales order stock
• Scheduling Agreements with Subcontracting
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• In PO screen, enter the material number which you want to order thevendor and item category as „L‟. Other entries as applicable for the PO.
• The components being supplied from the enterprise shall be manually
Creating a Subcontract Order
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• The components being supplied from the enterprise shall be manuallyentered or by means of BOM explosion.
• The requirement date of the material need not be entered which will beautomatically calculated by the system. i.e delivery date of the itemminus planned delivery time.
– To post components from the unrestricted-use stock to the stock ofmaterial provided to vendor, proceed as follows:
Providing Components With No Order Reference
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– From the Inventory Management menu, select Goods movementTransfer posting.
– Enter the issuing plant ,storage location. &Choose Movement typeTransfer posting Stock with subcontractor From unrestricted use
– Press ENTER. The collective entry screen appears. – Enter a vendor and the individual items.
– Post the document.
• If components to be provided to the subcontracting vendor are suppliednot by your company but by a third-party, you can order thecomponents from the third-party and specify the subcontractor in the
Providing Materials From Another Vendor
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p p y p ypurchase order as the delivery address. At GR, the components areposted directly to the stock of the material provided to vendor.
• To order components for a subcontract order from a vendor and havethem delivered direct to the subcontractor, enter a standard purchaseorder with a different delivery address
Providing Materials From Another Vendor
• From the Purchasing menu, choose Purchase order Create Vendor known.
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• Maintain the data on the initial screen. Make sure you enter thevendor of the components and the plant concerned. Enter theitems.
• Then choose Item More functions Delivery address. Adialog box appears in which you enter the delivery address ofthe subcontractor.
• In the field Vendor, enter the number of the subcontractor and
select the SC vendor box. Selecting the box causes thecomponents at goods receipt to be posted directly to the stockof the material provided to vendor when the goods receipt isposted.
• Save the purchase order.
• When the vendor delivers the end product (semi-finished item), youpost a GR for the subcontract order in the same way as for a standard
PO. The system determines the components for each order item andcreates a goods issue item for each component.
Posting the Goods Receipt of the Components
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• As a result, the material document consists of Goods receipt items forthe materials supplied by the vendor and Goods issue items for thecomponents
• After you have copied an order item, you can change the quantities inthe goods issue items.
• A goods receipt posting has the following results in the system:
• the stock of material provided to vendor at plant level is increased.The stock of material provided to vendor is not managed at storagelocation level, since the stock is no longer stored at your company.
• Valuated stock at plant level increases.
• If the subcontractor informs you after these GR postings that agreater or smaller quantity of the components was actuallyconsumed than planned in the purchase order, you must post a
Posting a Subsequent Adjustment
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p p , y psubsequent adjustment to correct the component consumption. Ifthe component is a by-product, you must post the corrected by-product receipt (excess receipt) or by-product issue (short receipt).
• When returning subcontracting components (under-consumption),the system checks that the quantity returned is not larger than thequantity originally transferred to the subcontractor. This check takesplace on material and plant level.
Posting a Subsequent Adjustment
• In the transaction goods movements MIGO, select the businessoperation Subsequent Adjustment from the list box. The systemautomatically chooses PO as the reference document. Enter thedocument number of the PO and the item number for which you
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document number of the PO and the item number for which youwant to post a subsequent adjustment.
• For the selected item, enter the difference quantity specified bythe vendor and determine with the Under-consumption/ShortReceipt indicator, whether a receipt or an issue is concerned. Ifyou set the indicator, it is an under-consumption or shortreceipt. If you do not set the indicator, it is an excess
consumption or excess receipt. Post the subsequent adjustment.
• The specified quantities of the originally posted GR are correctedby the system to the subsequently adjusted quantities
• In the GR for the Sub-Contract purchase order, the systemautomatically posts the receipt of the by-products. (In the materialdocument, you can identify the by-product items from theirmovement type 544. Note that the by-products are posted to the"stock of material provided to vendor“, also referred to as
By-Products in Subcontracting
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stock of material provided to vendor , also referred to as"subcontracting stock"). The receipt can still be corrected using theSubsequent Adjustment function.
• Due to the receipt of the by-products, the value of themanufactured material is reduced.
• To transfer the by-products quantities from the "stock of material
provided to vendor" (or subcontracting stock) to the unrestricted-use stock, you enter a transfer posting using movement type 542(reversal of the provision of the components).
•
• The subcontracting orders are account-assigned to a sales order ora WBS element. Thus, the components are not transferred (using atransfer posting) to the "stock of material provided to vendor" but
Subcontracting for Sales Order Stock and Project Stock
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are directly withdrawn from the sales order stock or the projectstock at the time of the GR. The material manufactured is also
posted to the sales order stock or to the project stock. The cost ofsubcontracting is then debited to the sales order or WBS element.
• To enter several delivery dates for a subcontract order item,• Display the scheduling screen for the item and enter the
quantities and dates.
• If the ordered material has a bill of material, the components arecopied from the bill of material.
Entering Scheduling agreement and Delivery Schedules
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• If you do not use bills of material, you must either enter thecomponents manually or refer to an existing purchaserequisition. You have to enter the components for every deliveryschedule.
• Position the cursor on a schedule line and choose Item
Component Overview to display the screen for processingcomponents. You can enter or change the individual components inthe same way as an order item.
Entering Scheduling agreement and Delivery Schedules
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• To make entering the schedule lines easier, copy the componentsfor other delivery schedule items. To do this, select Edit Repeat
components
Activate • Save the delivery schedule.
• When you print the scheduling agreement, the quantity required percomponent and date required are reprinted.
Demo_1 Creating a Sub-contact PO
L – Item Category forSub-Contracting
To Enter aComponents forMain material
Objective To create Sub-Contracting Purchase Order
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Main materialClick on
ComponentsOr click on
Explode BOM
Demo_1 Creating a Sub-contact PO
Objective To enter components in the Sub contract PO
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Enter componentsrequired forMain Material
Special stocks
Specialstocks
Special stocks are stocks that aremanaged separately because, they do
not belong to your company or beingstored at a particular location
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Duration
(Hours)
3
Objective To become familiar with special stock
Pre-requisites
Info record, material master and vendormaster and Purchase order
Coursecontent
• Concept
• Consignment Stocks
Concept
• Special Stocks
• Special stocks are stocks that are managed separately, Becausethey do not belonging to your company or being stored at aparticular location
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particular location
• Special stocks and special procurement types are divided into thefollowing areas.
• Consignment
• Third-party processing
• Returnable transport packaging
• Pipeline handling
• Sales order stock• Project stock
• Subcontracting
• Stock transfer using stock transport order
Consignment Stocks
• The vendor provides materials and stores them in your premises. The
vendor remains the legal owner of the material until you withdrawmaterials from the consignment stores.
• The advantage of this is that the company‟s liabilities increase only for
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g p y ythe quantity withdrawn.
• Only then is the vendor required to pay. The invoice is due at set
periods of time, for example, monthly.
• You can procure consignment material via purchase requisitions,
purchase orders and outline agreements for consignment material.
• Creating Purchase Requisitions for Consignment Material
Procurement of Consignment Material
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• You enter purchase requisitions for consignment materials in exactly
the same way as for other materials.
• You accept the order category (such as NB) that the systemproposes as a default and enter the item category K (forconsignment).
• The procedure for creating consignment orders is the same as forstandard purchase orders or outline agreements. However, youmust note the following
Creating Purchase Orders / Outline Agreements for ConsignmentMaterials
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• Enter the item category K for the consignment item. Ensure that the
goods receipt is posted to the consignment stores
• Do not enter a net price in the Purchase Order
• From the Inventory Management menu, choose Goods movement Goods receipt For purchase order PO number
known . The initial screen is displayed.
Goods Receipt for Consignment Purchase Order
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• Enter the purchase order number to which the goods receipt refers.
You can also enter the plant and storage location.
• Select the movement type with Movement type PO to warehouse .
Press ENTER to display the item overview.
• Select the items you wish to process and check the quantitiesdelivered. If required, enter a stock type in column S. Copy (adopt)the selected items.
• Choose Goods movement Goods receipt Other from theInventory Management menu.
• On the initial screen choose Movement type Receipt W/o purchaseorder To consignment unrestricted . Enter the plant and storage
l ti
Goods Receipt Without Purchase Order
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location.
• Press ENTER to display the collective entry screen.
• Enter the vendor number.
• Enter the number and quantity of the consignment material.
• Post the goods receipt.
• After a GR for consignment material has been posted, the
consignment stock of the material increases &This is stock isavailable for MRP.
Ho e e the mate ial's al ated stock does not inc ease since
Updating of Consignment Stock
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• However, the material's valuated stock does not increase sincethe consignment stock still belongs to the vendor.
• Displaying the stock overview
From the Inventory Management menu, choose Environment Stock Stock overview. Maintain the data on the initial screen and carry out theevaluation. An overview is displayed of your own stock and theconsignment stock according to your selection criteria
Consignment Stocks
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consignment stock according to your selection criteria.
• Displaying consignment stocks
This function allows you to display the consignment stocks. From theInventory Management menu, choose Environment Consignment Vendor consignment Stock. Maintain the data on the initial screen and
carry out the evaluation
•
• You can only post a goods issue from consignment stock toconsumption, if the material belongs to unrestricted-use stock. If theconsignment material is in quality inspection or blocked stock, you mustfirst transfer it o the unrestricted use stock
Goods Issue from Consignment Stock
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first transfer it o the unrestricted-use stock.
• From the Inventory Management menu, choose Goods movement Goods issue. Enter the data as required, including movement type,
account assignment object.
• After the goods issue, the vendor is due the net value of the goods
issue.
•
• From the Inventory Management menu, select Goods movementTransfer posting. The initial screen is displayed.
• Enter the plant and the issuing storage location. Choose Movementtype Transfer posting Consignment SLoc unrestricted use. To
Transferring Consignment Stocks
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yp p g gunrestricted use. (It is also possible to transfer quality inspection
stock or blocked stock).
• Press ENTER. The collective entry screen appears.
• Enter Receiving storage location, Vendor, Material and Quantity.
• Post the stock transfer.
• The transferred quantity is now managed in the consignment stockof the receiving plant.
• • Removing material from consignment stores or transferring material toyour
company‟s own stock results in liabilities towards the vendor. You shouldsettle
these liabilities at regular intervals.
Settling Consignment Liabilities
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• Consignment materials are settled without the vendor issuing aninvoice. The
vendor can only manage its consignment stock by taking deliveries andpayments into account.
• You settle posted withdrawals and return deliveries yourself in logisticsInvoice
verification and send the vendor a statement of the settlement. You canperformthis settlement periodically in the background. The documents involved
areInvoices and Credit memos.
Pipeline Stocks
• A pipeline material is a material that flows directly into the
production process from a pipeline (for example, oil, tap water,electricity).
• the pipeline material is always available, i.e. it can be withdrawn
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p p y ,from the pipeline at any time and in any quantity.
• They are not stored or kept in stock. No physical inventory is taken.
• Pipeline movements are mandatory in all valuation areas; i.e. noother goods movements may be posted.
• Creating a Pipeline Material
• When creating a pipeline material, it is important that you notethe following:
• Assign the material to material type PIPE that allows pipelinemovements.
•
• You determine the price of a pipeline material from a vendor in a
pipeline info record.• You create a pipeline info record as follows:
• F th P h i h M t d t I f d
Creating a Pipeline Info Record
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• From the Purchasing menu , choose Master data Info recordCreate .
• Select the info category Pipeline & On the initial screen enter thevendor, material and standard purchasing organization assignedto the plant.
• Maintain the info record data and save.
•
• If only one pipeline info record has been defined, Then itappears as a default when you post goods movements.
Maintaining the Source List
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• If you have more than one pipeline info record for a material,you can enter the preferred vendor in the source list. This
vendor then appears as a default when you enter goodsmovements. If no vendor has been entered in the source list,you have to select a vendor with every goods movement.
Posting Goods Issue from the Pipeline
• A withdrawal from the pipeline is posted as follows:
• From the Inventory Management menu, choose Goodsmovement Goods issue .
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• Maintain the data on the initial screen. Choose
Movementtype Consumption To cost center (or order, network,account assignments) From pipeline (Movement types :201 P, 261 P, 281P, or 291 P)
• You do not have to enter the vendor
• If more than one vendor exists, a pop-up window appearswith a list of pipeline vendors, from which you can select the
• A Goods Withdrawal from the pipeline results in the following updates inthe
system:
• The vendor liability that must be settled periodically in a similarway to the management of consignment stocks
Pipeline Stocks
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way to the management of consignment stocks.
• A consumption history is kept.
• The pipeline withdrawal has no effect on existing warehousestock or
on the availability of the material.
•
• If pipeline and consignment liabilities are to be posted to thesame account, you have to settle consignment and pipelineliabilities together.
Settling Pipeline Liabilities
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• If pipeline and consignment liabilities are to be posted to
different accounts, you settle them separately.
• You settle pipeline liabilities for a vendor in the same way thatyou settle consignment liabilities.
• Third-Party Processing
• In third-party processing, you place a purchase order with a
vendor to deliver goods or perform a service for a customer(third party).
• This means that your company forward the order to an externalvendor who then sends the material directly to the customer and
Third party Stocks
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vendor who then sends the material directly to the customer andinvoices you.
Order
Company
PO
VendorCustomer Delivery(Goods )
• Third-Party Processing in Sales
• If a material can only be procured externally, you can specify it
in the material master record that it is always processed as athird-party item when a sales order is processed.
• Resulting Activities in Purchasing
• A purchase requisition is automatically created when a Sales
Third party Stocks
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• A purchase requisition is automatically created when a SalesOrder is created
• If a third-party item from the sales order calls for more than onedelivery schedule, the system creates a purchase requisitionitem for each individual quantity.
• The number of the purchase requisition is updated in the salesorder.
• The item is scheduled automatically.• The delivery time required by the vendor and the processing
time in Purchasing are taken into account.
•
• If you do not use SD, you can plan a third-party business transaction
using apurchase requisition as follows
• E t th it t „S‟ d t i t t
Creating a Third-Party Item Manually
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• Enter the item category „S‟ and an account assignment category
• Enter the account assignment data (for example, the number ofthe G/L account). Which account assignment data you have tomaintain depends on the account assignment category.
• Save the purchase requisition.
• A third-party order is usually created referencing a third-partyitem in a purchase requisition. You can create purchase orders inthis way individually or collectively.
• If you do not use SD and have not entered a purchaserequisition, you can also enter a third-party order manually.
• Enter a third-party item manually in the same way as thepurchase requisition
Third party Stocks -Purchase Order
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purchase requisition.
• After entering the account assignment, you can see a screen in
which you can enter the address of the sold-to party.• Enter either the customer number or a delivery address.
• Check whether goods receipts can be made for the third-partyitem. Goods receipts are possible if the goods receipt indicator isset in the item.
• Save the purchase order.
• Third-Party Processing in Inventory Management
• Third-party order involves a movement from the vendor direct to
the customer, Inventory Management is not in any way affected.If you want to document the movement in the system, you cancreate a GR for the third-party order.
Third party Stocks
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• Entering a Goods Receipt ( GR )
• You enter a GR for a third-party order in the same way as astandardGR for a PO with account assignment.
• Results of the Goods Receipt.
• No stock update is made, as the GR is posted to consumption.
• The value of the purchase order is posted to a GR/IR clearingaccount for the purposes of Invoice Verification.
• When the vendor invoice arrives, You enter the invoice in thesame way as an invoice for a standard PO, for the third-partyorder also.
• If you posted a statistical GR for the PO, the invoice receiptresults in an offsetting entry on the GR/IR clearing account,
Third-Party Processing in Invoice Verification
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results in an offsetting entry on the GR/IR clearing account,which is cleared.
• If the customer is to be billed in SD based on the invoicequantity specified in the vendor invoice, this quantity is used asthe basis for the billing document in SD. The billing documentcan only be posted once the vendor invoice has been posted.
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•
• From the Inventory Management menu, choose Goods movement
Goods receipt Other. The initial screen for this function appears.
• Two movement types are available for goods movement for materialwith RTP:
Posting Other Goods Receipts to RTP Stock
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with RTP:• When a receipt is not for a purchase order, choose Movement
type Receipt W/o purchase order To RTP unrestr. (501 M)
• When stock balances are entered for the first time, chooseMovement type Receipt Initial stock entry (ext) To RTPunrestricted (561 M)
• Maintain the data on the collective entry screen i.e., enter thevendor and enter the items.
• Post the goods movement.
• A quantity of RTP can be entered at GR for a PO as follows:
• From the Inventory Management menu, choose Goodsmovement Goods receipt For purchase order POnumber known / PO number unknown.
• On the initial screen enter the movement type (usually 101) andthe order number.
Posting RTP Quantities at Goods Receipt for PurchaseOrder
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• From the overview screen, choose Edit W/o purchase order.
• A window appears in which you can enter the movement typeand the special stock indicator (e.g. 501 M) for the quantity ofRTP.
• Enter the RTP items and post the Goods Movement.
• Stock Updates
• This goods movement results ,increase in the unrestricted-use
RTP stock from the vendor. The total valuated stock remainsunchanged.
• Displaying Returnable Transport Packaging Stock
Returnable Transport Packaging (RTP) Stock
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Displaying Returnable Transport Packaging Stock
• RTP stock can be viewed using the following functions:
• Stock overview• Plant stock availability
• Both functions can be found in the Inventory Managementmenu under Environment Stock stock overview
Sales Order Stock
• Stock that is used for a sales order and materials can onlybe produced or procured only when they are ordered by thecustomer and the finished product can only be delivered tothe customer via the sales order You can manage valuated
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the customer via the sales order. You can manage valuatedor non-valuated sales order stock.
• Sales order stock is not valuated, if it is managed via a costcollector. The system does not carry out invoice verificationpostings for goods until the end of the settlement period inControlling.
• If sales order stock is valuated, you can access its value inFinancial Accounting. The assigned accounts are debited andcredited as a result of the valuated goods movements.
•
• When you enter a goods movement for sales order stock, youshould consider the following:
• When you enter a goods movement with reference to apurchase order or a production order, the sales order number
Entering Goods Movements
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purchase order or a production order, the sales order numberand item are copied from the reference document.
• When you enter other goods movements, you must specify thesales order umber and item.
• Goods movements for sales order stock are entered as follows
• Enter the relevant movement type with the special stockindicator „E‟ and the sales order number and item.
On the initial screen, enter movement type 411 and
the special stock indicator E. This movement allows you to change the materialnumber. This is required if the material is not managed invaluated stock (for example configurable materials)
Transfer to own stock
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valuated stock (for example, configurable materials).
• Goods receipt for purchase order/for order:
Enter a goods receipt for a purchase order or for anorder as usual using the movement type 101. If an item
is assigned to a sales order (account assignmentcategory E), the system automatically sets the specialstock indicator at GR.
Quantity of Material which is kept in stock for the completion of aproject. The project stock is allocated to a work breakdownstructure (WBS) element and the items can only bewithdrawn for the WBS element. You can manage valuated or non-valuated project stock.
Project Stock
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If the project stock is not valuated, it is managed via a costcollector. The system does not carry out invoice verificationpostings for goods movements, until the end of the settlement periodin Controlling.
If the project stock is valuated, you have immediate access to itsvalue in Financial Accounting. The assigned accounts are debitedand credited as a result of the valuated goods movements. Projectstock is available for the project from an MRP point of view.
• Creating Valuated Project Stock
If you want to work with valuated project stock, in the Accountingview of the material master record you can define your own Valuation Classes and thereby create your own stock accounts underProject Stock valuation class.
Project Stock
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Display the valuated project stock. Choose Environment Stock
Valuated special stock.
• Entering Goods Movements
When you enter a goods movement with reference to a purchase
order or production order, the WBS element is taken fromthe reference document.
When you enter other goods movements, you must specify theWBS element manually.
• Goods movements for project stock are entered as follows:
• Other goods receipts, goods issues, transfer postings:
Enter the relevant movement type with the special stock indicatorQ and the WBS element.
Project Stock
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Transfer to own stock:
Enter movement type 411 and the special stock indicator Q.
Goods receipt for purchase order/for order:
Enter a goods receipt for a purchase order or for an order asnormal using the movement type 101. If an item is assigned toa project (account assignment category Q), the system automaticallysets the special stock indicator at GR.
Demo_ Create consignment Info-record
Menu Path Materials management Purchasing Master dataInfo-recordcreate
T.Code ME11
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Select Info-RecordCategory
as Consignment
Demo_ Procuring consignment Material
Menu Path Materials managementPurchasing Purchase Order Create Vendor/Supply Plant Known
T.Code ME21N
Select Item Category ‘K’ Net Price
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g y
For Consignment stock
Procurement
Must beZero
Demo_ Goods Receipt for consignment Material
Menu Path Materials managementInventory Management Goods movement
Goods Receipt GR for purchase Order
T.Code MIGO
Select Mov.type101 and Specialstock indictor
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stock indictor‘K’
Demo_ Create Returnable Transport Packaging Material(RTP)
Menu Path Materials management Material Master CreateGeneral Immediate
T.Code MM01
Select Material type as
Returnable package
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Demo_ Create Pipe line material
Menu Path Materials management Material Master CreateGeneral Immediate
T.Code MM01
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Select Material type
‘Pipe line Material’
Demo_ Create purchase requisition for Third party
Menu Path Materials management Purchasing Purchaserequisition Create
T.Code ME51N
Here we need to
Enter Customer
Address towhom the
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Select item
Category ‘S’
material is to be
Supplied
Demo_ Create purchase Order for Third party
Menu Path Materials management Purchasing PurchaseOrder Create
T.Code ME21N
Select item
Here we need to
Enter Customer
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Select item
Category ‘S’Address towhom the
material is to be
Supplied
Agenda
InventoryManagement
Customization
This Part shows the customization ofInventory Management
Duration(Hours)
8
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(Hours)
Objective To get familiar with Customizationpart of Inventory Management
Pre-requisites
Coursecontent •
Inventory ManagementCustomization
Inventory Management Customization
Objective
Inventory Management Customization
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Inventory Management Customization
Objective
Define Plant Parameters
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Inventory Management Customization
Objective
Define Attributes of System Messages
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Number assignments
Objective
Define Number Assignments For GoodsReceipt/Issue Slips
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Field Selection for Goods Movements Initial /Header Screens
Objective
Field Selection for Goods Movements Initial /Header Screens
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Field Selection For MIGO
Objective
Field Selection For MIGO
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Create Storage Location Automatically
Objective
Create Storage Location Automatically
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Define Screen Layout
Objective
Define Screen Layout
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Set Tolerance Limits
Objective
Set Tolerance Limits
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Create Purchase Order Automatically
Objective
Create Purchase Order Automatically
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Set Delivery Completed Indicator
Objective
Set Delivery Completed Indicator
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Set Missing Parts Check
Objective
Set Missing Parts Check
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Record Reason For Goods Movements
Objective
Record Reason For Goods Movements
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Change Movement Types
Objective
Change Movement Types
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Curriculum
1. Introduction to Procurement
2. Organization Structure
3. Master Data1. Material Master
2. Vendor Master
3. Customizing settings for master data
4
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4. Purchasing
5. Inventory Management6. Invoice Verification
7. Account Determination
8. Batch Management
9. Physical Inventory
10.Consumption Based Planning
11.Standard Reports in MM
12.Standard Tables in MM
Agenda
Invoiceverificatio
n
The main task of the InvoiceVerification component is to
complete the procedure of materialsprocurement by posting
the vendor invoice and to pass on
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p
information concerning theinvoice to Financial Accounting and
subsequent applications.
Duration
(Hours)
1
Objective To get familiar with Invoiceverification
Note – Fields in red boxes are mandatory fields.
Concept
• Your Company receives a large number of invoices from the vendoreveryday. The data on the invoice is based on the Purchase order.
• You want to review the data on the invoice sent by the vendor.
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Exchange rate differences
Exchange ratedifferences
Purchase order is entered in foreigncurrency, the amounts are translated
from foreign currency into localcurrency at goods receipt. If you enterthe invoice for the purchase order inth f i thi l d t
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the foreign currency, this can lead to
currency translation differencesbetween the goods receipt and the
invoice receipt.
Duration(Hours)
1
Objective To get familiar with Exchange rateNote – Fields in red boxes are mandatory fields.
Introduction
• What are Exchange rate differences ?
• Are you following Fixed exchange rate or Current Exchange rate ?
• How does your company post these exchange rate differences ?
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Concept
• Purchase order is entered in foreign currency, the amounts aretranslated from foreign currency into local currency at goods receipt. If
you enter the invoice for the purchase order in the foreign currency,this can lead to currency translation differences between the goodsreceipt and the invoice receipt. These differences are called asExchange rate differences.
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• According to business policy We can use :• fixed exchange rate
• current exchange rate
Concept
• If the exchange rate is fixed in the Purchase Order, the R/3 system
uses this exchange rate to convert the foreign currency to localcurrency at goods receipt and at invoice receipt.
• If the Exchange rate is not fixed in the Purchase order, the R/3t th t h t t t th f i
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system uses the current exchange rate to convert the foreign
currency to local currency goods receipt. In Invoice verification , italso suggests the current exchange rate.
• The exchange rate differences are same as the Price differences.The way that R/3 system posts exchange rate differences depends
on the settings in the customizing for invoice verification.
Demo1_Fixed Exchange Rate
Objective
To fix Exchange rate at Purchase order
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Demo1_Fixed Exchange Rate
Objective
To make a Goods receipt for fixed exchangerate PO
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Demo1_Fixed exchange rate
Objective
Logistics invoice verification
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Demo1_Fixed exchange rate
Objective
Purchase order history
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No differences exist betweenGR and LIV
Demo2_Current Exchange Rate
Objective
To Create a Purchase Order without fixedExchange Rate
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Demo2_Current exchange rate
Objective
Goods receipt for PO
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Demo2_Current exchange rate
Objective
Logistics invoice verification
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Demo2_Current exchange rate
Objective
Purchase order history
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We observe differencebetween the GR and IR
Demo3_Customizing setting for Exchange rate differences
Objective
Customizing for How the exchange ratedifferences are treated
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Demo3_Customizing setting for Exchange rate differences
Objective
Customizing for current exchange rate
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Information on a Invoice
Invoicing Party
Addressee
Reference
Purchase order
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Material Details
Unit of measure
Price per unit
Invoice amount
Terms of payment
MM overview of Invoice Verification
Material Planning
InternalProcurement
ExternalProcurement
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Stocktransfer
Goods receiptalong with invoice
Invoice Verification
MM Invoicing doc & FI invoicing doc
Vendor
• Invoice receipts
• Invoices can be posted in the R/3 System in several differentways.
• The company receives invoices by post, then an employeeenters and posts them
MM overview of Invoice
Verification
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enters and posts them.
• The company receives invoices via electronic transfer and theR/3 System posts them automatically (if the informationtransferred matches that expected by the R/3 System).
• The R/3 System creates invoices using settlement programs thatrun at regular intervals (evaluated receipt settlement, invoicingplan, consignment settlement).
MM overview of Invoice Verification
• Account Movements
• In the case of material with a moving average price, the R/3System posts the stock account with the value of the net orderprice multiplied by the quantity of goods received.
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• In the case of material with a standard price, the R/3 Systemposts the stock account with the value of the standard pricemultiplied by the quantity of goods received. The R/3 Systemposts the difference to an account for expenses or revenue from
price differences.
Basic Invoice verification procedure
• Purchase order based Invoice verification
• Good receipt based Invoice verification
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Basic Invoice verification procedure
Purchase orderMaterial –XXX
Qty-100pcs
Delivery 1- 50pcsDelivery Note No:GR1
Delivery 2- 25pcsDelivery Note No:GR2
Delivery 3- 25pcsD li N t N GR3
P. O based invoiceverification
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Delivery Note No:GR3
Invoice for PO: XXXQty:25Selection via PO
Item listPo: XXX -
100pcs
Basic Invoice verification procedure
Purchase orderMaterial –XXX
Qty-100pcs
Delivery 1- 50pcsDelivery Note No:GR1
Delivery 2- 25pcsDelivery Note No:GR2
Delivery 3- 25pcs
G.R based invoiceverification
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yDelivery Note No:GR3
Invoice for PO: XXXQty:25
Selection via
Delivery Note Item list
Po: XXX -25pcs
Other Functions in Invoice verification
Simulatingthe posting
Search forallocation
Error Log
Hold
Documents
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Communication with vendor
Note lastsetting
EnvironmentInformation
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Demo1_Invoice Verification
Objective
Purchase order base Invoice Verification
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Demo1_Invoice Verification
Objective
Purchase order based Invoice Verification
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Demo1_Invoice Verification
Simulate
Objective
Purchase order based Invoice Verification
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Demo1_Invoice Verification
Objective
Purchase order based Invoice Verification
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Post
Demo1_Invoice Verification
Save
Objective
Purchase order base Invoice Verification
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Document Gets created
Agenda
DeliveryCosts
Delivery costs are costs that areinvoiced for a delivery over and
above the value of the deliveryitself
Duration ½
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(Hours)Objective To Understand about the
Delivery cost
Pre-requisites
Purchase Order, Goods ReceiptNote – Fields in red boxes are mandatory fields.
Introduction
• Define Delivery Cost
• What are the types of Delivery Cost
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Concept
• Delivery costs are costs that are invoiced for a delivery over and
above the value of the delivery itself. This includes freight charges,customs duty, or other costs.
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Types Of Delivery Costs
There are two types of Delivery costs
• Planned Delivery cost
• Un planned delivery cost
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Demo1_ Enter Incoming Invoice
Objective
Posting of Planned Delivery Cost
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Demo2_ Enter Incoming Invoice
Objective
Posting of Unplanned Delivery Cost
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Agenda
Invoiceblock Invoice block meansFinancial Accounting cannotpay the invoice.
Duration
1
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Duration(Hours)
1
Objective To know about Invoice Block
Pre-requisites Purchase Order
Course •IntroductionNote – Fields in red boxes are mandatory fields.
Introduction
• What do you mean by Invoice Block
• What are the reasons for Payment Block
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Concept
• Invoice block means Financial Accounting cannot pay the invoice.
Invoice blocking can be done either automatically or manually.
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Reasons for Invoice Block
• Variance in an Invoice Item• Amount of an invoice item
• Stochastic Block
• Manual Block
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Demo1_Customizing Settings
Objective
To Create Reasons for Blocking Payment
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Demo1_Customizing Settings
Objective
To Set a Tolerance Limit
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Demo1_Customizing Settings
Objective
Activate Block Due To Item Amount
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Demo1_Customizing Settings
Objective
To Create Stochastic Block Values
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Demo2_Enter incoming Invoice
Objective
Entering incoming Invoice
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Demo3_Releasing the Blocked Invoice
Objective
Releasing The Blocked Invoice
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Agenda
Invoiceverificati
on inBackground
The system checks the invoice with hundredsof line items the system should compare total
invoice amount to the expected value fromthe purchase order using backgroundprocessing.
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Duration(Hours)
1
Objective
To get familiar with Invoice verificationin background
Concept
• For invoices with hundreds of line items the system should compare totalinvoice amount to the expected value from the purchase order usingbackground processing.
• The system checks the invoice in the background. If no errors occur, thesystem also posts the invoice in the background. If errors do occur, thesystem saves the invoice and you then have to process it in a separatestep.
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Concept
• The Invoice document which is saved does not contain any line items,hence no item check is required.
• The settlement program which is regularly started in the backgroundcreates the item for this invoice document based on quantities and valuesto be invoiced. The system check if the total of the items and the amountsalready set (gross invoice amount, tax amount, unplanned delivery costs)results in a zero balance.
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Important data
• Document header data :
Document date
Posting date
Gross invoice amount
Tax information.
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• Program name:
Invoice Verification in the background is run using program RMBABG00.
Customizing Settings (For status)
Objective
To set the indicator for invoice status.
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Demo2_Create invoice document in background
Objective
To create a invoice document entry inbackground
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Agenda
Evaluated ReceiptSettlement
Evaluated Receipt Settlement allows you tosettle or pay for the goods receipt withoutentering or processing of an Invoice.
Duration 1 hr
Objective To get to know the process of EvaluatedReceipt Settlement
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Pre-requisites Knowledge about Material Master, VendorMaster, Info Record, Purchase Order & GoodsReceipt
Course content • Concept
• Evaluated Receipt Settlement Process• Benefits of Evaluated Receipt Settlement
• Demo1_Evaluated Receipt Settlement
• Evaluated Receipt Settlement (ERS) allows you to settle or pay forgood receipts without entering or processing an invoice.
• This eliminates the need to handle and process invoices receivedfrom vendors.
Concept
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• The use of ERS is a continuing drive of the business industry. Itssuccess is predicated on accurate pricing and receiving.
• While no invoice is received (either manually or via EDI) SAPcreates an internal invoice during execution of the ERS program.
Process
• Based on the order price specified in the purchase order and thequantity entered on the goods receipt, SAP determines the correctinvoice amount and obtains tax information and terms of paymentfrom the purchase order..
• This information allows the system to settle without having to
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process a vendor invoice.
Benefits
• No GR/IR entries to clear.
• No Blocked invoices to clear.
• No invoices to process, benefiting you and your vendor.
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Demo 1_Evaluated Receipt Settlement
Objective Make settings in the Vendor Master to enable Evaluated ReceiptSettlement.
Mandatory Fields
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Demo 1_Evaluated Receipt SettlementObjectiv
e Make settings in the Info Record to enable Evaluated Receipt Settlement.
Mandatory Field
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Demo 1_Evaluated Receipt SettlementObject
ive Make settings in the Purchase Order to enable Evaluated Receipt Settlement.
MandatoryFields
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Demo 1_Evaluated Receipt SettlementObjec
tive
To receive the goods that we have purchased from the Vendor.
Mandatory Fields
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Demo 1_Evaluated Receipt Settlement
Objective
To settle the account of the vendor without generating the invoice
Execute (F8)
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Demo 1_Evaluated Receipt Settlement
Note the PurchaseOrder & Vendor
Objective
This screen shows the list of ERS purchase orders to be executed
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Period closing and opening
Period closingand opening
This function sets the new period,making it possible to perform goods
movements with reference to the newperiod. Once the period has beenclosed, it is no longer possible to makepostings to what was the previous
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periodDuration(Hours)
1
Objective To get to know about the period closingand opening
Pre-requisites •Material master
Introduction
• What is meant by period closing and opening ?
• How it is related to Financial accounting and Materials management?
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Concept
• Open and Close period for material postings. Once the
system is in productive operation, you normally run theperiod closing program once a month at the beginning ofa new period. This program sets the new period, makingit possible to perform goods movements with referenceto the new period. Once the period has been closed, it is
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no longer possible to make postings to what was theprevious period
Demo 1_Period closing
•
Objective
Period closing in material mater record
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Demo 2_Period opening
Objective
Period Opening in material mater record
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Agenda
LogisticInvoiceVerification
Verification of in coming invoices in theR/3 system before posting to finance
Duration 2 (Hours)
Obj ti T t f ili ith LIV
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Objective To get familiar with LIV
Pre-
requisites
To be well familiar with the earlier
purchase master data, vendor master.Purchase order and Goods receipt
• Logistic invoice verification
• LIV is a part of MM. In LIV, incoming Invoices are verified in terms of
their content , price & arithmetic . When Invoice is posted , theinvoice data is saved in the system . System updates data in MM & FI
• LIV completes Material procurement process which started with PR .
Concept
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• LIV allows to post Invoices that don‟t originate from MM . EX :Services , Expenses , Training cost etc
• It allows credit memos to be processed.
Concept
• Incoming Invoice
• Invoice contains various information such as
• Who issued Invoice
• Which transaction does the Invoice refer to
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• How much tax do you have to pay
• You will allocate the Invoice to a business transaction , if such
reference exist , the system uses knowledge that it already has& proposes the appropriate values during Invoice verification.
• For Example:
Terms of Pa ment
Concept
• Invoice can be processed in LIV in following ways
• Invoice Verification Online• Parking
• Invoice verification in Background
• Automatic Settlements like:
• ERS
C i t & i li S ttl t
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• Consignment & pipe line Settlements
• Revaluation
• Invoicing Plans
• EDI Invoices
Important Data for LIV
• Maintain Number Assignments for Accounting Documents
• In this step, you:• Define the document types
• Assign each document type to a number range
• Assign document types to the Logistics Invoice Verificationtransactions
St d d tti
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• Standard settings• In the standard system, two document types are defined for
Logistics Invoice Verification:
• RE for gross posting
• RN for net posting
Important Data for LIV
• Tax Treatment in Invoice Reduction
• Here, you can configure how taxes are to be posted for invoicereduction.
• The system creates two accounting documents for invoicereduction. The first document (original document) contains theinvoice data sent by the vendor. The second document(complaint document) contains information about the invoice
d
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reduction.
• If the tax reduction is carried out in the complaint document , thetaxes in the original document correspond to those in the vendorinvoice. The tax amount for the invoice reduction is credited inthe complaint document.
• If the tax reduction is carried out in the original document , thetaxes in the original document are reduced by the tax amountfor the invoice reduction. In this case, the complaint document
Demo1_Customizing LIV
Objective To create document types for invoice verification
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Demo1_Customizing LIV
Objective To assign number ranges for the document types
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Demo1_Customizing LIV
Objective To assign number ranges for the document types
Select Documenttype from list
RE - Goss postingRN - Net Posting
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Demo1_Customizing LIV
Objective To assign Doc types to T Code
Assign required Doc typeTo Relevant T,code
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Demo1_Customizing LIV
Objective
To assign No. range to Transaction
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Demo1_Customizing LIV
Objective To Set Tax reduction doc to company code
Here we can setTax reduction doc
as a original orComplaint Document
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Demo1_Customizing LIV
Objective
To Set Default Tax code to company code
Select the requiredCompany code andClick on Detail button
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Demo1_Customizing LIV
Select requiredTax code
From the list
Objective
To Set Default Tax code to company code
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Demo1_Customizing LIV
Objective To mail purchasing when price varianceoccurs.
Select the indicatorFor activate mail to
Purchasing with respectTo company code
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Demo1_Customizing LIV
Objective
To configure vendor specific tolerances.
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Demo1_Customizing LIV
Objective
To configure vendor specific tolerances.
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Demo1_Customizing LIV
Objective
To activate direct posting to G/L account andmaterial account
S l t b th i di t
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Select both indicatorFor activate G/L and
Material account
Demo1_Customizing LIV
Objective
To Set Check for Duplicate Invoice
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Demo2_ Creating Invoice Entry
Objective
To create an invoice entry
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Curriculum
1. Introduction to Procurement
2. Organization Structure
3. Master Data
1. Material Master
2. Vendor Master
3. Customizing settings for master data
4. Purchasing
5. Inventory Management
6 Invoice Verification
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6. Invoice Verification
7. Account Determination
8. Batch Management
9. Physical Inventory
10.Consumption Based Planning11.Standard Reports in MM
12.Standard Tables in MM
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Material Valuation
Material Valuation is a part of MM module. This includes the followingapplication
areas:
• Purchasing
• Inventory Management
• Logistics Invoice Verification
Material Valuation determines & records the stock value of a material.
[ Stock value=stock qty*material price ]
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[ Stock value stock qty material price ]
• Material valuation is not an independent application area, since mostvaluation functions take place automatically in the SAP system.
• Material Valuation represents an integration between MM & FI modulessince it updates the G/L accounts in Financial accounting.
• Material Valuation serves the following purposes:
• Adjusting material prices to market price.
• Perform revaluations
Control of material valuation is done basically by 2 factors:• System settings
• At which levels are materials valuated.• Which types of goods movements affect material valuation.• Which G/L accounts must be posted with the material value during a
transaction.
• Material master record As a rule every material in the SAP organization should have a Material
Master. This master record also controls the valuation data of the material(Accounting view in the material master)
Material Valuation
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Master. This master record also controls the valuation data of the material(Accounting view in the material master)
When maintaining Material master you must decide the following:a) Whether the material is to be valuated at all.b) Whether different sub stocks of a material should be valuated differently.c) Whether the stock of a material should be valuated at a constant price
(standardprice) or delivered price (Moving average price).
Material Valuation
Data on a material is valuated using the following structures:
• Valuation area
• Valuation category
• Valuation class
• Valuation type
• Material type
• Movement type
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• Movement type
The following control features are important for valuation.
• Does the material movement cause the quantity to be updated.
• Does the material movement cause the value to be updated.• Does the material movement lead to posting in Financial accounting.
• Is the material movement relevant for LIFO/FIFO valuation
Split Valuation
• Split valuation enables you to valuate stocks of a material in different waysFor example, according to external procurement or in-house production or
by batches, or a material bought from two countries.
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Split Valuation
Split Valuation
Type of procurement Country of origin Quality status
H C Q
Ext. procurement In house mfg UsedNew Reworked/Repaired
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Ext. procurement
(H1)
g
(H2)
Germany(C2)
India(C1)
(Q2)(Q1)
p
(Q3)
Split Valuation
The Valuation Area is the level at which materials are valuated, thiscorresponds either to a certain plant or to all plants belonging to companycode. If you have set the valuation level at company code level, G/Laccounts can also be assigned according to plant.
Valuation Category is the criteria on which material is Split valuated.
Valuation Type describes the characteristics of a Valuation Category.
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Split Valuation
Objective
To configure split valuation
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Split Valuation
Objective
To define global categories
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Split Valuation
Objective
To define global categories
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Split Valuation
Objective
To define global categories
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Split Valuation
Objective
To define valuation types
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Split Valuation
Objective
To define valuation types
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Split Valuation
Objective
To define local categories
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Split Valuation
Objective
To create a material master with split valuation
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Split Valuation
Objective
To create a material master with split valuation
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Account Determination
Objective
To define a valuation grouping code
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Account Determination
Objective
To define account category reference andvaluation class
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Account Determination
Value string: It is an internal procurement key which facilitates automaticaccount
determination.
Transaction event key: Internal processing key facilitating automatic account
determination for the various material and invoice postings.
Posting rule determines how the system has to capture the G/L account.There are
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4 posting rules
1) Debit/Credit
2) General Modification
3) Valuation Modification4) Valuation Class
Account Determination
Account modifiers are general modification and has been defined in the SAPR/3
system for the following transaction or event keys:
• GBB-offsetting entry for inventory postings
• PRD-cost (price differences)
• KON-consignment/pipeline liability
In MM in the standard system, a/c grouping is only active for the transaction
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key GBB.
We can change the account grouping for transactions in IM, depending on the
movement type and other indicators ( ex: special stock indicators).
The account grouping cannot be changed for transactions in LIV.
Account Determination
Objective
To define Automatic Account postings
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Account Determination
InventoryManagement
Posting stringfor values
InvoiceVerification
BSX PRDTransaction
Transaction
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300000 281000G/L account Number
Account Determination
The posting transactions for the transactions in Inventory Management &Invoice
Verification that are relevant for accounting are fixed. Posting records are
assignedto each relevant movement type in IM and to each transaction in LIV.
These posting
records are generalized in a value string (posting rule). Instead of fixed G/Laccount
numbers, this contains keys for the respective posting transaction (such asBSX for
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BSX for
a stock posting and PRD for a price difference posting).
You do not need to define these transaction keys, the R/3 systemdetermines them
from the transaction (in LIV) or from the movement type (in IM). We onlyneed to
Curriculum
1. Introduction to Procurement
2. Organization Structure
3. Master Data
1. Material Master2. Vendor Master
3. Customizing settings for master data
4. Purchasing
5. Inventory Management
6. Invoice Verification
7
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7. Account Determination
8. Batch Management
9. Physical Inventory
10.Consumption Based Planning
11.Standard Reports in MM
12.Standard Tables in MM
Batch Management
BatchManagement
Batch Management in MM
Duration(hours)
1
Objective To familiarise Batch
Management technique
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g qpertaining to MaterialsManagement
Pre-requisites Master data, Purchasing,Inventory Management
Note – Fields in red boxes are mandatory fields.
Need for Batch Management
• In various industries, particularly the process industry, you have towork with homogenous partial quantities of a material or productthroughout the logistics quantity and value chain.
Purpose
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Application of Batches in SAP areas
Batch Management
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• Batch Number Assignment
– This function is used to assign a unique key to a batch. The batchnumber uniquely identifies a batch in the SAP System. The batch
level you choose determines the area in which the batch number isunique.
Batch Management
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• Batch Specification
– This function is used to describe each batch uniquely usingcharacteristics and characteristic values. You specify the permittedvalue range in the allocated material master record.
• Batch status management
– This function is used to indicate whether a batch is usable orunusable. You set this status:
– Manually in the batch master record or at GRAutomatically in the usage decision in quality management
Batch Management
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– Automatically in the usage decision in quality management
– The basic setting required is that „Batch management box‟ should be „checked in Material master.
Deleting a Batch Master Record
• Flag a batch master record for deletion so that the archiving anddeletion program can delete it. To do so, call the batch master record inchange mode. You can set a deletion flag at plant level or at storagelocation level, but only if a deletion flag has not already been set at ahigher level. The batch master record is then deleted at that level andat all lower levels.
Batch Management
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• Batch Classification – All classes used for batch classification are assigned to class
022/023. They are required for batch determination. – The material and its batches are related by classes. This is to ensure
that the same characteristic is used for the material and batch.Characteristics are identified uniquely by the value or range ofvalues.
– Batch Specifications – An Example
• Example of Paint production illustrates how batch specificationsare used.
– Characteristics of Material A Target ValueViscosity 41 50
Batch Management
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– Viscosity 41 - 50
– Ph value 3.1 – 6.0
– Hydrolizable chloric content 23 – 25
– Epoxy count 23 - 25
– Volatile proportion 0.0 – 0.5
• Batch Classification – You define these specifications as characteristics and assign them to
a class. You then assign this class to a material master record (inclassification view). When you maintain the material master record,you can thus specify the target values or range of values of thespecifications.
– In the classification system, you define class for this material calledPaint . Under the characteristics, you set up:
– Viscosity 41 - 50 – Ph value 3.1 – 6.0 and so on.
– When the batch is produced, the specifications are checked in thelaboratory and fixed values for each batch are determined. If thesel li ithi th ifi d th b t h i t bl
Batch Management
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values lie within the specified range, the batch is acceptable. – The validity of the specifications you enter is immediately checked.
This is possible in the system as the material and the batchesbelong to the same class.
– In our example, the actual values attained for the specifications forbatch A124495 are as follows:
• Batch Classification
– Characteristics of Batch A124495 Actual Value:
– Viscosity 42
– Ph value 3.5
– Hydrolizable chloric content 24
– Epoxy count 23.5
– Volatile proportion 0.10
– Since all the values are within the range specified in thecharacteristic, the batch A124495 is accepted.
Batch Management
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– If you have entered an interval value for a numeric characteristic inthe material master record, you will be able to assign either
– the whole interval (for example, viscosity between 41 - 50 in theabove example)
– a restricted interval (viscosity between 42 – 44 in the aboveexample)
– a certain value within this interval to the material (viscosity of 43.5
• Batch Management in Inventory Management
– Batch determination
– Batch Where-Used List
– Active Ingredient Management
– Entering a batch
Batch Management
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• Two types of master data exist for every batch in the warehouse,
namely:
– General data for the batch at plant level, material level, or clientlevel (batch master record)
– Stock data for the batch at storage location level
Batch Management
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• Stock types
The following stock types are managed at batch level:
– Unrestricted-use stock
– Quality inspection stock – Blocked stock
– Restricted-use stock (only with batch status management)
– Stock in transfer (for stock transfers between storage locations)
– Blocked stock returns
• All other stock types for the material are managed on a cumulativeb i l i l l l
Batch Management
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basis at storage-location or plant level.
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• If the shelf life check expiration date check is active, you must enter theshelf life expiration date or the production date of the material at the
time of a goods receipt.• At the time of goods receipt, the system checks whether the remaining
shelf life is sufficient. If this is not the case, a warning or error messageis issued, depending on the system settings.
• When the goods receipt is posted, the shelf life expiration date is
recorded in the material document. • Materials handled in batches:
Shelf life expiration date in Batch Management
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• For materials handled in batches, the date is also stored in the batchmaster record.
• For a further goods receipt for a batch, the shelf life expiration date
entered or determined with the movement is compared with the onefrom the batch master record. If the dates differ, a warning or errormessage is issued, depending on the system settings.If the goods receipt is posted despite any warning, the old shelf life
Curriculum
1. Introduction to Procurement
2. Organization Structure
3. Master Data
1. Material Master2. Vendor Master
3. Customizing settings for master data
4. Purchasing
5. Inventory Management
6. Invoice Verification
7 Account Determination
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7. Account Determination
8. Batch Management
9. Physical Inventory
10.Consumption Based Planning
11.Standard Reports in MM
12.Standard Tables in MM
Physical Inventory
Physical Inventory This component is used to carry outa physical inventory of yourcompany‟s warehouse stocks for
balance sheet purposes. Differentmethods / procedures can be usedfor doing this.
Duration (hours) 8
Objective To get familiar with Physical
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Objective To get familiar with PhysicalInventory component
Pre-requisites N. A
Course Content •Introduction
•Demo1_ Create Physical Inventory Document
•
Introduction
• Physical Inventory
• In SAP R/3, physical inventory can be carried out both for a
company‟s own stock and for special stock.
• Inventory for a company‟s stock and for special stocks (such asconsignment stock at customer, external consignment stock fromvendor, or returnable packaging) must be taken separately i.e., indifferent physical inventory documents.
• The stock in a warehouse can be divided into stock types. In thestandard system a physical inventory can be carried out for the
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standard system, a physical inventory can be carried out for thefollowing stock types:
• Unrestricted-use stock in the warehouse
• Quality inspection stock
• Blocked stock
Introduction
• Physical Inventory Process Diagram
Stock Count
OverviewPhysical Inventory Preparation
Create physicalinventory doc.1
Batch
input
Print physical
inventory doc.2
C t
Arrange for
recount 6a
Enter physical
inventory count 5
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552Physical Inventory Count
Carry out
physical
inventory count
Enter Result
in Printout
3
4 Postdifferences 7
Print list of
differences6
Physical Inventory Analysis
inventory count 5
Demo1_Create Physical Inventory DocumentObjective
Create a physical inventory document (MI01)
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Physical Inventory Count
• Enter the count by using MI04
• During the inventory count, all the materials being inventoried arecounted and entered physically.
• The stocks are counted for individually for the materials in aphysical inventory document.
•The count results are written on the printout of the physicalinventory document.
Th i t t i th di t d b k t th ibl th t
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• The printout is then directed back to the person responsible, so thathe or she can enter the count into the system and analyze it.
Demo2_ Enter Inventory Count
Objective
Enter Inventory Count (MI04)
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Recounting
To initiate a recount, proceed as follows:
• Go to MI11, On the initial screen, enter the physical inventory document for
which you want to initiate a recount. By specifying a threshold value, you can
limit the number of items in the recount.
• Select the items for which you want a recount
• A new physical inventory document is created that contains the selected
items. The system confirms the posting and displays the number of the
physical inventory document
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Posting Inventory Differences
The various options for posting inventory differences are:
• Posting differences after the count has been posted A physical inventory document has already been created, and
the count has already been posted. You only have to post theinventory differences (MI07).
• Posting the count and inventory differences simultaneously
after the physical inventory document has been created A physical inventory document has been created, but the count
has not yet been posted The count results are available You enter
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has not yet been posted. The count results are available. You enterthe count and post the differences in one step (MI08).
• Entering the count without a document reference
You have a count result without reference; that is, no physicalinventory document has yet been created for this physical inventorytransaction. You create a physical inventory document, enter thecount, and post the differences in one step (MI10).
Demo3_ Posting Difference
Objective
To Post Differences
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Account Activity During Posting of Inventory Differences
• The account activity during posting of the inventory differencesdepends on which stock was inventoried:
• Company's own stock
When you post inventory differences, the material masterrecord is changed; total stock is automatically adjusted to thecounted quantity. From the accounting point of view, this
corresponds to a goods receipt or goods issue, meaning that whenthe inventory difference is posted, the stock account is debited or
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y p ,credited.
• Inventory Differences in Consignment Stock
When you post inventory differences, the material masterrecord is changed, the vendor consignment stock is automaticallyadjusted to the counted quantity. Since this stock type is notmanaged by value, from the accounting point of view, there is no
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Account Activity During Posting of Inventory Differences
Account Postings
Stock Material Stock – Take
Clearing
MovementType
Description
Debit Credit Debit Credit
701/703/707 GR Physical Inventory: UR, QI, Blk (Gain) X - - X
•Counted Stock Greater than Book Inventory Balance
If the counted consignment stock is greater than the bookinventory balance, the system assumes that larger withdrawals were posted fromconsignment stores than actually occurred. Thus, the inventory difference is
posted as a withdrawal reversal. Since withdrawals are posted to the "Payablesfrom consignment stores" account, postings must be made to this account whenthe inventory difference is posted
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/ / y y , Q , ( )702/704/708 GI Physical Inventory: UR, QI, Blk (Loss) - X X -
Reports on Physical Inventory
• The following functions in the physical inventory menu provide
information on the physical inventory:
Displaying the physical inventory documents for a material – MI21
Displaying the physical inventory data for a material – MI23
Displaying the physical inventory overview – MIDO
Di l i th h i l i t li t MI24
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Displaying the physical inventory list – MI24
Displaying the list of physical inventory differences – MI20
Displaying changes to physical inventory documents – MI12
Physical Inventory Procedures
Continuous Sampling
Periodic
Phy. InventoryProcedures
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Cycle Counting
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Physical Inventory Procedures
• Continuous Inventory
– In the continuous inventory procedure, stocks are countedcontinuously during the entire fiscal year. In this case, it isimportant to ensure that every material is counted once at leastonce during the fiscal year.
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Physical Inventory Procedures
Create physical inventory documents - MICN
Enter the data required
Carry out the evaluation
Generate session to create batchinput session
process the session
Cycle Counting Procedure
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Carry out the phy inv for the docscreated
Physical Inventory Procedures
• Inventory Sampling
– Inventory Sampling reduces the time and cost of a physical
inventory considerably by counting only the stock of individualmaterials and carrying out an extrapolation to arrive at anestimated count result for all units of stock managed.
• There are two methods of carrying out an inventory sampling:
– Periodic inventory sampling
In this procedure, the count is carried out on a key date.During the physical inventory, movements in the warehouse as well
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g p y y,as changes to the book inventory balances are not allowed.
– Continuous inventory sampling
In this procedure, stock is counted over an extended period oftime. In this case, inventory sampling data is updated from time totime to correspond to the latest book inventory balances. Changesto the book inventor balances are thus reflected in the calculations
Physical Inventory Procedures
Inventory Sampling -Preparation Phase
1. Creating an inventory sampling
In this step you have to define several basic parameters, such as:
– Which currency is to be used for the inventory sampling
– The area in which the inventory sampling is to be carried out
– The deviations up to which an inventory sampling is stillconsidered successful
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2. Allocating the stock management levels
In step 2, we allocate certain quantities of stock management units
/ levels, to the inventory sampling that is to be included.
Physical Inventory Procedures
Inventory Sampling -Preparation Phase
3.Forming the stock population
The stock population is the total of all stock management unitsof an inventory sampling. While forming the stock populationBreakdown of the stock population and Classification are carried outautomatically.
4. Generating a stratification
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4. Generating a stratification
To reduce the number of stock management units to becounted to a minimum, the sampling area is divided into individual
strata. The stratification is generated using classification. The valuedispersion in a stratum is considerably smaller than in the entiresampling area. With a small value dispersion, only relatively fewelements must be selected to obtain a re resentative result. This
Physical Inventory Procedures
Inventory Sampling – Active Phase
1.Generating the random selection
In the process of random selection, the system determines thestock management units to be counted for each stratum.
2.Creating physical inventory documentsPhy inventory documents must be created for the stock
management units to be counted These documents are required
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management units to be counted. These documents are requiredfor all stock management units drawn during random selection andthat were allocated to the complete-count area when the stock
population was formed.
3.Update
Physical Inventory Procedures
Inventory Sampling – Active Phase
4. Extrapolation
During the extrapolation process, the system estimates thephysical inventory value of the sampling area on the basis of thelatest counting results. An average physical inventory value per itemis calculated in every stratum and multiplied by the number of items
in each stratum. The total of the stratum values determined in thisway gives the estimate for the sampling area
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Summary of Physical Inventory
SAP Functionality
SAP
Stock Count
Stage 1 Create and PrintPhysical Inventory Document
Stage 2 Conduct Physical CountInput Count Results ondocument printoutStage 3 Enter Count Results in SAP
Display Difference ListConduct and Enter RecountPost Inventory Differences
• Stock materials• Special stock
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PhysicalInventoryDocument 1
2
Co. Co. x y z
AccountingDocument
Co. Co. x y z
Material
Document
Gain or Loss onUR Stock
MI07701/702
Gain or Loss onQI Stock
MI07703/704
Curriculum
1. Introduction to Procurement
2. Organization Structure
3. Master Data
1. Material Master2. Vendor Master
3. Customizing settings for master data
4. Purchasing
5. Inventory Management
6. Invoice Verification7. Account Determination
8
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8. Batch Management
9. Physical Inventory
10.Consumption Based Planning
11.Standard Reports in MM
12.Standard Tables in MM
Consumption-Based planning
Consumption-Basedplanning
Consumption based planning is basedon past consumption ,it calculates thefuture requirements.
Duration(Hours)
1
Objective To get familiar with RFQ/Quotation
Pre-requisites •Material Master,I d i
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Coursecontent
•Introduction
•Concept
•MRP procedures
•MRP and CBP
•CBP- Reorder point planning
•Lot sizing
Introduction
• What is Consumption-Based planning?
• Distinguish Consumption-Based planning from Material requirements
planning?
• What are the various procedures in Consumption-Based planning?
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Concept
• In a manufacturing company, particular materials, such as officeMaterial or Low-value materials that are needed in production (Screws,washers, Markers…etc), are planned in consumption basis. This iscalled as consumption based planning.
• Consumption-Based planning is mostly used in order to plan B and Cmaterials and Operating supplies.
• Material requirements planning is based on current and futurerequirements
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requirements.
• MRP is epically useful for planning Finished products and important
assembly groups and Components (A materials).
• In MRP requirement elements are the sales orders, planned
MRP procedures
• MRP procedures:MRP procedures
Reorder pointplanning
Forecast-basedplanning
Time-phasedplanning
Automaticreorder point
MRPConsumption-based planning
ManualReorder point
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MRP and CBP
• Materials planning can be executed at plant level or belowthe plant level of individual MRP areas.
• In order to carry out material requirements planning for aplant.
• You have to activate MRP at respective plant
• You have to maintain MRP parameters at this plant.
• You have to maintain the MRP data of the Materials inMaterial Master record
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MRP and CBP
• MRP type is the key that control the MRP procedure to beused for planning the material. Further data in material
master record controls the lot-size calculation or schedulingcalculation.
• MRP type controls which planning parameters must or canbe entered when maintaining the material master record.
• MRP profile is the key in which you can store MRPt th t d t d d t t i l t
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parameters that do not dependent on material masterrecord.
CBP- Reorder point planning
Stock
Lot size
SafetyStock
Reorder
Point
Re-Order Point Planning
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Time
Stock
Replenishment lead time
Releasedate
Available date
CBP- Reorder point planning
• The reordered point planning is the comparison of the availablewarehouse stock and the fixed receipts with reorder point. If the
available warehouse stock is less than the reorder point, then thenet requirements calculation is triggered.
• The reorder point is composed of the expected average materialrequirements during the replenishment lead time and the safety
stock.
Th f t t k t b th th l d t i l
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• The safety stock must cover both the unplanned material excessconsumption during the replenishment lead time, as well asadditional requirements caused by the delayed deliveries.
Lot sizing
• Lot sizing procedure: The system calculates the receipt of quantityin lot sizes. There are 3 lot sizing procedures are there, 1. static
procedure 2.perodic procedure 3. Optimum procedure.
• You specify how the system is to determine the lot sizes, byselecting one of the lot sizing procedures in material master record.
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Planning run
• Planning run: In planning run system carries the following process,
1. The system checks the planning file entries
2. The system carries out a net requirements calculation for everymaterial
3. the system carries out the lot-sizing calculation
4. The system carries out scheduling to calculate the start andfinish dates of the procurement proposals
5. The system determines the type of procurement proposals.
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y yp p p pDepending on the settings, the system creates either plannedorders, purchase requisitions or schedule lines for a material
Planning run types:
Planning run
• To execute the planning run The following functions are provided
• Total planning
• Single-item, single-level planning
• Multi-level single-item planning
• Interactive planning
• Multi-level, make-to-order production• Individual project planning
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Planning result and evaluation
Planning result and Evaluation:
• The following evaluations are available for evaluating the planningresults in consumption-based planning:
• MRP list
• Current stock/requirements list
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Demo1_ CBP and MRP data in Material master record
Objective
To maintain the data in MRP1 view of materialmater record
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Demo1_ CBP and MRP data in Material master record
Objective
To maintain the data in MRP2 view of materialmater record
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Demo2_MRP
Objective
To create the planned independentrequirements
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Demo2_MRP
Objective
To maintain the planned independentrequirements
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Curriculum
1. Introduction to Procurement
2. Organization Structure
3. Master Data
1. Material Master2. Vendor Master
3. Customizing settings for master data
4. Purchasing
5. Inventory Management
6. Invoice Verification7. Account Determination
8. Batch Management
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8. Batch Management
9. Physical Inventory
10.Consumption Based Planning
11.Standard Reports in MM12.Standard Tables in MM
Reporting in MM
• In Purchasing, a variety of documents are maintained such asPurchase Requisition, Purchase Order, Goods Receipt and Invoice
Receipts• The R/3 system updates these documents and stores them in
database tables. Standard Analysis can be used to analyze theinformation contained in these documents.
• For example we would want to know
– List of Purchase Orders for a Vendor – The number of Purchase orders for which you have already
received goods
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received goods.
– The average value of each PO for a purchasing group
– Receipts / issues for a given material for a given period
– Stock at a given plant and storage location
– Inventory turnover.
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Reporting in MM
Objective
To generate a list of Purchase Orders for a Vendor
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Reporting in MM
Objective
To generate a list of Purchase Orders for a Vendor
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Logistics Information System
• SAP Logistics offers a range of application related informationsystems
• All have standard interface and similar basic functionality• All Logistics Information systems have the same type of data
retention.
• Different information systems available in SAP are
– SIS : Sales Information System
– PURCHIS : Purchase Information System
– INVCO : Inventory Controlling
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– WMIS : Warehouse Management Information System
– PPIS : Shop floor Information system
• Information system in LIS are continuously supplied with data fromtransaction systems (Sales and distribution, Purchasing, Production
Logistics Data warehouse
• The physical tables in the SAP information warehouse areinformation structures or info structures.
• The objects to be analyzed in the real business world go into infostructures as evaluation groups in the form of characteristics.
• Organizational elements, such as, Purchasing group, Material group,Plant are used as characteristics in info structures.
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LIS reports
Objective
To generate standard report from LIS
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LIS reports
Objective
To observe the drilldown function in LIS reports
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LIS reports
Objective
To observe the drilldown function in LIS reports
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Curriculum
1. Introduction to Procurement
2. Organization Structure
3. Master Data
1. Material Master2. Vendor Master
3. Customizing settings for master data
4. Purchasing
5. Inventory Management
6. Invoice Verification7. Account Determination
8. Batch Management
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g
9. Physical Inventory
10.Consumption Based Planning
11.Standard Reports in MM12.Standard Tables in MM
Agenda
Name ofthe section
Standard Tables in MM
Duration(hours) 1
Objective To understand the different tables
related to Materials Management.Pre-requisites
• Knowledge on SAP MM
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requisites
CourseContent
•Material Master tables•Purchasing tables
Material Master Tables
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Purchasing Tables
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Purchase Order – Linking of Tables
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Goods Receipt – Linking of Tables
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List of Tables
EINA Purchasing Info Record- General Data
EINE Purchasing Info Record- Purchasing Organization Data
MAKT Material Descriptions
MARA General Material Data
MARC Plant Data for Material
MARD Storage Location Data for Material
MAST Material to BOM Link
MBEW Material Valuation
MKPF Header- Material Document
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MSEG Document Segment- Material
MVER Material Consumption
MVKE Sales Data for materials
RKPF Document Header- Reservation
List of Tables