User Manual

Material Management

Service Purchase Order

Date: 10-10-2014
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Table of Contents
1.0 Overview ................................................................................................................................4
2.0 How to Access Transaction - Creation of Purchase order in ME21N ............................................5
Service Purchase order - Domestic ................................................................................................ 10

Display PO ME23N / ME22N change.............................................................................................. 21

List Display of PO ME2M ............................................................................................................... 22

3.0 Attach DMS document before release of PO thro ME22N ........................................................ 24

4.0 Release of PO ME29N ............................................................................................................ 31
5.0 Print Purchase order - Draft for review................................................................................... 38
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Business Process Procedure – Materials Management

Document Change Control

Release Description Created Date Reviewed Date Approved Date
by by by

1.0 Purchase Mohan V

order

BUSINESS PROCESS PROCEDURE

Title: Purchase order

Organization/Area: Materials Management / Procurement

EUP Category:

Release: ECC6.0

Responsibility: Purchasing Status: Released

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1.0 Overview
This document is prepared show how to create, change and approve Purchase order in SAP.
Gives details of document types to be used, Plant, Purchase organization, Purchase group
which are used as authorization objects and to control the approval process using Release
strategies.

Apart from standard controls and validations, Customized validation are shown in this document
which are applicable to all sectors.

Vendor code in SAP is mandatory for creation of Purchase order

Following are the type of Purchases based on business scenario

1. Material Purchase

a. Domestic purchase

b. Import of goods

2. Service procurement

a. Domestic service

b. Service taken from firm / individual outside country – foreign source.

In SAP Purchase order can be created in following methods

1. By adopting the approved Purchase requisition, assuming vendor selection and finalization is
outside SAP, vendor selected after negotiation has been created in SAP

2. By adopting RFQ after price comparison in SAP where vendor is selected for Purchasing

3. By adopting the Contract, PR for quantity requirement, Contract is long term agreement with
vendor already selected in enquiry process.

4. In exceptional case creation of Purchase order without adopting PR / RFQ/ Contract

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2.0 How to Access Transaction - Creation of Purchase order in

ME21N

Via Menu Path Logistics -> Material Management -> Purchasing ->
Purchase order
Via Transaction Code ME21N

Description Transaction code

Create Purchase Order ME21N
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Following document types are available for use depending on the business scenario.

Document Description Used in Remarks

type

GCAP DOMESTIC ASSET PO ALL sector Asset procurement with Account assignment
ZCAP IMPORT ASSET PO ALL sector 'A'
GDOM DOMESTIC MATERIAL PO ALL sector Only Material procurement is allowed, where
material will be received to stock and issued
GIMP IMPORT MATERIAL PO ALL sector on need basis

GEME EMERGENCY PUR.ORDER ALL sector PO less than 20000 allowed in this document
GFRO Order-Rate Contract GIL EPC To monitor rate contract and control
authorization this document type is created
for GIL EPC team
GWOD DOMESTIC WORK ORDER ALL sector Composite Purchase order handle both
material and services, for Material account
assignment is mandatory
GIWD IMPORT WORK ORDER ALL sector With facility to change the Heading of
Purchase order in print out using selection in
Customer data tab in header of PO

GSER DOMESTIC SERVICE PO ALL sector This document type is used to capture
Services, Item category 'D' Service is
mandatory, For services with item category
GISV IMPORT SERVICE PO ALL sector D, Account assignment is mandatory

GPIT IT PURCHASE ORDER ALL sector, GDOM is used inplace of this doc type
GSTO STOCK TRANSPORT PO Stock transfer Used where stock needs to be transferred
between plant from plant to another plant within Company
code
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Linking of PR document type to PO document type and allowed Valuation type in PO document type

Document Description Allowed PR Allowed Combination of Allowed Valuation type

type document Account assingment and Item (Applicable, for Material number
types category where split valuation is activated)
Account Item Valuation type ZZZZ-DOM, ZZZZ-
assignment category IMP
ZZZZ- Material type, e.g ZROH,
ZERS
GCAP DOMESTIC ASSET A - Asset Blank Z*-DOM split valuation is allowed for
PO Split valuated material number
PAST - Asset
ZCAP IMPORT ASSET PO PR A - Asset D - Service Z*-IMP split valuation is allowed for
Split valuated material number

GDOM DOMESTIC Blank Blank Z*-DOM split valuation is allowed for

MATERIAL PO Split valuated material number
PMAT -
GIMP IMPORT Material PR Blank Blank Z*-IMP split valuation is allowed for
MATERIAL PO Split valuated material number

GEME EMERGENCY PMAT -

Currently not used
PUR.ORDER Material PR
GFRO Order-Rate PWOD -
Currently not used
Contract Composite PR
GWOD DOMESTIC WORK K - Cost center Blank Z*-DOM split valuation is allowed for
ORDER P - Project Split valuated material number
N - Network
F - Order
C - Sale order
PWOD -
GIWD IMPORT WORK Composite PR K - Cost center D - Service Z*-IMP split valuation is allowed for
ORDER P - Project or Split valuated material number
N - Network S - Third
F - Order party
C - Sale order
GSER DOMESTIC K - Cost center D - Service Material procurement not
SERVICE PO P - Project only allowed in this documen type
PSER - Service N - Network allowed
PR F - Order
C - Sale order
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GISV IMPORT SERVICE K - Cost center D - Service

PO P - Project only
N - Network allowed
F - Order
C - Sale order
GPIT IT PURCHASE PRIT - IT proc All account All item PO is created without PR, directly
ORDER assignment category mainly used for IT procurement
allowed allowed
GSTO STOCK Blank U - Stock Mainly used in Energy sector for
TRANSPORT PO PSTO - STO transfer coal transfer from port to main
Pur.Req plant to track quantity loss in
transit

Refer Excel sheet embedded for above details

PO document type
summary.xlsx
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For Services and Non stock material without material number account assignment listed below is used
depending on where cost needs to be booked. In some case, for material procurement account
assignment is used to book directly to cost object.

Following table shows use of Account assignment in SAP.

Account Description Being used /not Created by

assignment Note: Consult Business finance before
category using cost object, to avoid further
transaction errors, which may lead to
cancellation of documents created in
SAP
A Asset Used in GMR FI - Finance
B MTS prod./sales ord.
C Sales order Used in GMR SD - sales and dist.
D Indiv.cust./project
E Ind. cust. w. KD-CO
F Order Used in GMR PM / PP/SD - Plant Maintenance or
Production planning or Sales
Internal order given by FI
G MTS prod./project
K Cost center Used in GMR Master data available created by FI,
User can enter cost center created
in company code,
Represents Department in
Business; Consult Business finance
before using a cost object

M Ind. cust. w/o KD-CO

N Network Used in GMR PS - Project system
P Project Used in GMR PS - Project system
Q Proj. make-to-order Used in GMR PS - Project system
T All new aux.acc.ass.
U Unknown
X All aux.acct.assgts.
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Service Purchase order - Domestic

Steps Step description Details/ Description Remarks

Transaction Code
1 Execute ME21N Transaction code
Transaction code
2 Choose PO GSER Service PO
document type
3 Account K Cost Center For Service PO (GSER)
Possible assignments - Account assignment K, P, F, N Item
assignment category 'D' only possible
4 Item category D Service

5 Material number Should be blank Input field/

6 Short Text Earth work Mandatory

(Header)
7 Services / Limits Refer list of service Input field These entries are done in each line in "ITEM DETAILS' for each
service line item Account assignment data like G/L and Cost
in next table center may be different and user has to enter input. For
Clarification on G/L account and cost center contact Finance
team

8 Service Number Blank Input field Master data - Service Master

9 Short Text (Item) Refer list of Input field Mandatory

services in next
table
10 Quantity Refer list of Input field As per requirement
services in next
table
11 Unit of Measure Refer list of Input field Choose from list
services in next
table
12 Material Group 850 or relevant Input field From help of the Field choose the correct material group
related to material / asset requested
‘Service group’
13 Delivery date 20.11.2014 Input field Delivery date should in future, considering the lead time to
Place the PO - (PR creation time +PR approval time +Enquiry
processing time +PO creation time + PO approval time)

14 Requistioner MV-Civil Input field Free field - width 12 character e.g. Name of person requested

15 Plant 1600 Input field As per area / Sector

16 Valuation price Will be based on Input field / Estimated 'Unit' price of the material.
copied from Note:- If Material is already received in SAP, system will
list of service in material propose 'Moving average' price of the material as unit rate, so
service item tab master in case that user creating requirement will be aware of the unit price
material from earlier transaction in SAP
number is
entered is
updated with
Moving
average price
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17 Storage location Not mandatory Input field In case of Account assigned PR, storage location is not
required as the material/service is received at department. In
SAP when Goods Receipt is made materia l will be directly
issued to Asset as in PR/PO

18 Purchase group AC1 Input Purchase group related to plant should be used / data will be
field/copied copied from Material master if data is maintained
from Material
Master
19 Tracking number MV-SRV Free field - width 10 character e.g. Name of person requested

20 Purchase 1600 Purchase organisation assigned to Plant should be used

Organisation
21 G/L account Expense G/L account in 5* or6* series should be used, Contact
5500006001 Finance team for clarification
22 Cost center 1600000000 Get details from Finance department and proceed.

Purchase order can be created adopting, Purchase requisition, RFQ which are approved (Release
strategy in SAP)

Adopting Purchase requisition will reduce the data entry time, only vendor code, Rates, taxes (tax code)
needs to be maintained as per negotiation with vendor and statutory guide lines.

Adopting RFQ to PO will copy PR, Vendor and rates maintained in RFQ – vendor chosen.

In case, RFQ is not created, PR needs to be adopted to with further data like vendor, payment terms,
taxes needs to be maintained in PO as per negotiation.

Adopting the PR to PO will copy all the data maintained in PR, In PO, Vendor code, Payment terms, tax
code, Unit price (in case of material, for service price from PR will be copied to PO), and delivery
conditions to be maintained as per negotiation with vendor.

This document shows how to create PO directly

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Press ‘Enter’ key further processing

Under Item details ‘Services’ List of activities (Package) for ‘Earth Work’ to be maintained.
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Following Services are used for demo here.

Short text Quantity UoM Gross

price
A) 1.00) Earth work in cutting in overbu 12,465 M3 70
A) 1.01) Same as above but for disposal 4,066 M3 61
A) 2.01) Plain Cement Concrete 40 M3 682
A) 2.02) Reinforcement Cement Concrete 55 M3 1,000.00
A) 2.03) Pavement Bituminous courses 1,500 M3 385
A) 2.06) Brick work / Rubble Masonary 160 M3 520
A) 3.00) Filling with approved selected 8,950 M3 97
B) 1.00) Excavation in all kinds of soil 1,000 M3 85
B) 2.00) Construction of granular sub ba 3,800 M3 1,420.00
B) 3.00) Providing, laying, Spreading an 5,015 M3 1,870.00

List of services from above table is copied to services screen, assumption the ‘Gross price’ (Unit price) is
agreed price with vendor.

Press enter key to enter details of account assignment, Here, Cost center (K) and G/L account as per
business requirement. For demo following cost center and G/L is used
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G/L account
5500006001
Cost center 1600000000

Click on ‘Rpt AA on’ and ‘Auto Repeat AA’ to copy account assignment to all services.

Note: Request to confirm the G/L and Account assingment (here Cost center) with Finance, account
assigment used here is for demo only.
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Click ‘Back’ button to go to main screen

Account assignment copied to all services any change in account assignment to be made as follows
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Select the Service line as shown below

Click on to go to account assignment screen

In the window above change of G/L and Cost center (here in this demo) can be made, sometime
account assignment screen may appear as below
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In above screen, G/L and Cost center can be changed, from this screen to go to PO, click Back button
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Enter tax code, based on discussion with vendor tax code as applicable should chosen, for service
there may to service tax applicable, choose relevant tax code and assign in line item under ‘Invoice’ tab
(item details). Tax code is mandatory in PO, if tax is not applicable use Zero tax code. Here in demo tax
code I0 – Zero rated tax code is used.
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Check

Click on ‘Check’ to verify the data entered in PO

With message ‘No messages issued during check’ PO can be saved. Any changes can be made in ME22N
before start of approval process
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Service PO with number 4800107427 is created

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Display PO ME23N / ME22N change

PO number 4800107427

Approval process will be automatically triggered based on plant, pur org, pur grp, document type and
total value of the PO
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It is possible to similar approval process to service Purchase order as shown above.

List Display of PO ME2M

Transaction : ME2M

Plant : 1600, Pur org 1600, Scope list : ALV, Pur grp : AC1 (e.g)
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Press F8 to execute the report

PO created above will be listed with 1 line item with quantity as 1 AU as this is a service Purchase order,
Services will be available under ‘Services’ tab
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3.0 Attach DMS document bef ore release of PO thro ME22N

There is custom validation built in Purchaser order approval process that attachment is mandatory for
start of release of Purchase order in ME29N. Hence, steps to attach DMS - Document management
system in PO line item is shown here, Refer list of document type used for attachi ng the documents
below

Transaction code: CV01N transaction will be called from PO change mode to attach the DMS documents
with document type, authorization group = Plant, Necessary authorization for CV01N, DMS document
type and authorization group needs to be taken by Procurement user.

DMS doc type Description

A12 Vendor Contracts
A36 NFA Documents
A37 Email Approvals

Process of attaching DMS document is same for all types of Purchase order as shown below.

ME22N
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Select line item 10 (any one of the line of PO should contain attachment)

Click on to attach DMS document

In the DMS document window click on ‘Create’ - for this user should have authorization for CV01N,
contact DL_SAP_SECURITY (Group email id) for authorization
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Choose DMS document type , here A36 – NFA document is choosen for attachment

Enter Document part = 000, Document version =00

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Click on continue to further screen

Maintain description e.g Attach NFA, authorization group : 1600 = plant

Click on to attach the file which already scanned / softcopy is kept in local folder, for demo here a
pdf file is attached. Request to attach relevant document / softcopy / file in DMS
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File attached,

Click on Save DMS attachment

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Select stroage category

Continue to save

DMS attachment with file is attached to PO

Now Save the PO, If PO is not saved DMS attachment will not be linked to PO
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4.0 Release of PO ME29N

Via Menu Path Logistics -> Material Management -> Purchasing ->
Purchase order -> Release
Via Transaction Code ME29N

Collective Release ME28 is given to user after second level onwards as PO created in plant will be going
higher authority, and volume of release is huge.
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PO 4800107427, attached with DMS document as shown in earlier steps

PO Without attachment

Release PO without attachment

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With attach in PO

PO 4500052918; is assigned with 4 level approval process, based on, authorization for Relese group
and Release code user will be able to approve in ME29N

If user sees icon under ‘Release options’ at any level of the approval based on current status of
approval user will be authorized to approve at respective level

If user sees icon unser ‘Release options’ user is not authorized for release (Note that ‘Release
option’ column can be seen in ME29N in Change mode, in display mode this will not be shown)
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Click on

Next screen shows first level approval is done.

Caution: Release / approval will effect only upon ‘Saving’ PO after Releasing and saving PO in ME29N

For other level approval User will login to system and use ME29N to approve.

Second level approval

Before
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After

Third level approval

Before
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After

Last level / 4th level approval

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5.0 Print Purchase order - Draft f or review

Via Menu Path Logistics -> Material Management -> Purchasing ->
Purchase order-> ME23N -> Print preview -> print
Via Transaction Code ME9F

In ME23N / ME22N / ME29N / ME2M report select PO and click on ‘Print Preview’
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In the window Print, fill Output device as ‘Front End’

Click on ‘Print preview’ in this window

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This print can be used for review and finalization of PO

Caution : ME9F -> Output Message -> print should be used only after finalization of the Purchase order
as this will trigger versions in subsequent changes in Purchase order and may lead to wrong Print, Only
changed item will be printed in subsequent verisons, if line item is not changed, item will be blank.

Refer User manual “User Manual PO amendment steps.doc” for steps to generate version using ME9F
and Changes in ME22N

Following screen shows Printing of Contract using ME9K, Process is same for ME9F;

For Contract Version management is not activated, For purchase order Version management is
activated and subsequent prints after ‘ME9F –output message will be with changed items i.e. changes
only will be printed and these changes can be forwarded to vendor by converting the spool generated
into pdf file.
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User needs to have authorization for respective plant, pur org, pur grp used in contract,

Intial processing status will 0 – Not processed,

Execute the transaction by pressing F8 key on key board

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Both contract will be displayed

To take print out select the contract and click on ‘Output message’ button on top of the s creen (above
screen)
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A window with print set up will appear with default values, if values are not assigned, Fill Output device
as ‘Front End’

Deselect – Delete After Output (This will delete the spool generated while taking print out, hence to be
deselected to keep the spool), if already selected

Select – New Spool Request (this will create separate spool for each print taken, otherwise, all the print
out spool for user will be appended to single PDF file as number of pages)
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Click on ‘Print’ to print the contract to printer connected to computer

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Choose the printer to print hard copy

Here for demo, Printer is selected as ‘One note’ application where contract will be displayed, instead of
printing
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Click OK to send the print to One note 2010 application

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To convert the Spool generated in above print process following steps to be followed, Note : user
should have necessary authorization for reading / downloading spool for conversion, contact
DL_SAP_SECURITY (group mail id) for necessary authorization, Use transaction code SU53 to display
missing authorization and forward screen shot to this team for authorization
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In the Menu path Find System -> Own Spool Requests and navigate to spool list, if System menu is not
available in transaction screen go to main SAP menu to choose ‘System’ Menu

Following screen listing Spool number (all print out taken by user, if spool is not deleted after output/
print)

Latest spool no will be print generated for contract in this case / demo
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Click on icon marked to veiw and check the document whether it is the same
document

Contract which is printed recently will be displayed in PDF format

To convert the spool to pdf note down spool number here it is 832178 and for saving file use Contract
number 5600000126, so that tracking will easy

Transaction code : ZMMTC_PDF

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Click on execute to save the file in desired path in local desktop / laptop

Here File name is given as Contract number and file path in local drive is choosen for demo

Click on ‘Save’ to convert the spool to pdf for further use

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Check the pdf file with name 5600000126.pdf

Contract file is available in local drive

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File is embeded here for reference and demo

5600000126.pdf

Note : Print layout in the PDF is at the time of testing, layout may be different in Production client as
the changes may requested