VERSION IT

SAP-llfM (Material Management)

Material

Management

Version IT
Leader in ERP Training

605, Nilagiri Block,

Aditya Enclave, Ameerpet, Hyderabad 500016. (AP)

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AEH210JA 11.
Srinhas - Chicago
 VERSION IT
SAP-MM (Material Management)
18.4.9. Valuation grouping code ..........................................................69

18.4.10. Transaction/Event Key: .................................................69

18.4.11. Account modifier: ........................................................69

18.4.12. Customization steps ......................................................70

19. Inventory Management Overview......................................... ..............76

19.1. Goodsmovement............................................... ,.........78

19.1.1. Goods Receipt (GR) .......................................... ,..•~ ................78

19.1.2. Goods Issue (GI) ........................................ ;';. ". :'." ................78

19.1.3. Stock Transfer. .............................................. ·,: ..>.. ·, ..................78

19.1.4. Transfer Posting................................. ........................ .78

19.2. Result of Goods movement. ..... ........... .... ..........................79

19.3. Document concept: .......................... ..........................79

19.4. Document type in Inventory management:, .•........................... 80

19.5. Movement Type .....................;.".r. ..... : .;.. : ........................ 80

19.5.1. Some Important Movement types; .~.k ................81

19.6. Tcodes in Inventory Management;]~ ....... ;... .. ....................82

19.7. MIGO Transaction code ..........: . .'~............. ............................. 82

19.8. Inventory Management IMG settings~ ..... ~ .....,...............................82

20. Inventory Management: Goods Receipt ............... ;................................... 83

20.1. Steps during GR: ..................................................................84

20.2. Result of the goods receipts posting ............................................. 86

20.3. Effects of GR on PO and Material Master.....................................87

21. Inventory Management: Goods Issue: ....................................................88

21.1. Types of Goods Issue ..............................................................89

21.2. Entering the good issue: ..........................................................89

21.3. Goods issue two ways .............................................................90

21.4. Goods issues are either Planned or Unplanned ................................90

22. Inventory Management: Stock Transfer.................................................91

22.1. . Types of Stock Transfer ..........................................................92

22.1.1. Intra Company Stock Transfer. ................: .................................92

22.1.2. Inter Company Stock Transfer ................................................... 92

22.2. Intra Company Stock Transfer. ..................................................92

22.2.1. Storage Location-to-Storage Location ...........................................92

22.2.2. Plant-to-Plant. .......................................................................92

22.2.3. Types of Stock transfers (Str. Loc-to-Str.Loc) ................................. 92

22.2.3.1. One-Step Process ..........................................................92

22.2.3.2. Two-Step Process .........................................................93

22.2.3.2.1. Remove from Str. Loc................................................93

22.2.3.2.2. Placing into Str. Loc.................................................94

22.3. Types of Stock transfers Plant-to-Plant ..........................................94

22.3.1.1. One-Step Process ..........................................................94

22.3.1.2. Two-Step Process (Plant-to-Plant) ......................................95

22.3.1.2.1. Remove from Str. Loc (Plant-to-Plant) ...........................95

22.3.1.2.2. Placing into Str. Loc. (Plant-to-Plant) .............................96

22.4. A consolidate Statement of Alc triggered during various goods movmts .. 97

AEK8IOIA. I.L
Srinivas - Chicago
 • VERSION IT
SAP-MM (Material Management)

23. Inventory Management: Transfer Posting..................................................98

23.1. Stock Types: ..........................................................................99

23.1.1. Unrestricted-use stock: ............................................. ;................99

23.1.2. Quality inspection stock: ...........................................................99

23.1.3. Blocked stock: ............................................. . ..... ,.................99

23.1.4. Transfer Postings: ....................................... .. ..................... 100

24. Physical Inventory.......................................................................'..'..... 101

24.1. What is Physical Inventory? ..................... ........... ................. 02

24.2. Which stocks can be inventoried? ............... .. ........................... 102 }

24.3. Physical inventory procedure: .................,:... ............................ 102

24.3.1. Periodic Inventory: ............................ :.;.. .. .................... 103

24.3.2. Continuous Inventory: ............ ~ .,.:.;; ... :'.. .. ................. 103

24.3.3. Cycle Counting: ......................... > :................. 103

24.3.4. Inventory Sampling: ......................... ; ....................... 103

24.4. Physical Inventory process: ............ i . . . . . . ' . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103

24.4.1. Physical Inventory Pr.eparation ........... i, .. • ................................ 103

24.4.2. Physical Inventory coUnt.......... ,.......... '" ................................ 103

24.4.3. Physical Inventory check; .......................................................... 103

25. Reservation ........................................................................................1 05

25.1. What is Reservation? ................................................................ 106

25.2. What infonnation is in a reservation? ............................................. 106

25.3. Structure of the Reservation: ...................................................... 106

25.4. Reservation level: .................................................................... 106

25.5. Manual/Automatic reservations: ................................................... 106

25.5.1. Results of the reservation ............................................................ 106

25.5.2. When a reservation is entered ...................................................... 107

25.5.3. Displaying the reserved stock: ..................................................... 108

25.5.4. Settings for reservation: ............................................................ 108

26. Logistic Invoice Verification: Over View................................................... 11 0

26.1. Types of Invoice Verifications: ................................................... 111

26.1.1. Invoice verification online (Enter Invoice) ....................................... 111

26.1.2. Invoice Parking: ..................................................................... 111

26.1.3. Invoice verification in background: ..............................................Ill

26.1.4. Automatic Invoice verification: ................................................... 111

26.1.4.1. Evaluated Receipt Settlement (ERS) .................................... 111

26.1.4.2. Consignment and Pipeline Settlement.. .................................. 111

26.1.4.3. Invoicing plan ............................................................... 111

26.1.4.4. Revaluation .................................................................. 111

26.1.4.5. Invoices Received via EDI: ............................................... 112

26.2. Invoice verification process: ....................................................... 112

26.3. Important alc in LIV ................................................................. 114

26.4. Tcodes in LIV ........................................................................ 115

26.5. ERS Evaluated Receipt Settlement. ............................................. 115

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Sdnivas - Chicago
 VERSION IT
SAP-MM (Material Jlfanagement)
26.6. Invoice Verification: IMG Settings ............................................. 116

26.7. TAX Settings: ..................................................................... 116

26.8. Invoice Verification ............................................................... 116

26.8.1. Entering of Invoice (in MIRO) .................................................. 116

26.8.2. Parking of Invoice.. .. .. .. .. . .. .... ... .. ....... ........ .... .. .... .... .. ........ 116

26.8.3. Holding of Invoice............................................ .........116

26.8.4. Releasing of Parked and hold invoices................. .......... 116

27. Special Procurements: Sub-Contract Scenario: ....••.....••. . ..... 117

28. Special Procurements: Stock Transport Order Scenario..... .....119

29. Special Procurements: Vendor Consignment..........................

30. Special Procurements Third Party Scenario............... .

31. Consumption Based Planning .......•....•......... ~~:~ ....... ; .....128

31.1. MRP: Material Requirement Planning..... ... .. . . ..................... 129

31.2. MPS: Master production schedul~~;are •...... ;... ................. 129

31.3. CBP: Consumption Based Planning~~ •••••••••• ~ •• ~v.. .............. 129

31.4. Procedures in CBP.................... ;;. . . . . .. . ... ...... ~:';........................129

31.4.1. Re-order Point planning ... ;........ ;............ ;................................. 130

31.4.2. Forecast based planning ............. ~: ............................................ 130

31.4.3. Time phased planning.......................... ;;.; ............................... 130

31.4.4. Re-order Point planning ........................................................... 130

31.4.4.1. Lot Size Procedure: ...................................................... 131

31.4.4.2. Static Lot Sizing Procedure ............................................. 131

31.4.4.3. Periodic Lot sizing Procedure .......................................... 131

31.4.4.4. Optimum]ot sizing procedure .......................................... 131

31.4.5. Forecast based planning .......... :............................................... 132

31.4.5.1. Constant Model. .......................................................... 132

31.4.5.2. TrendMo<lel. .............................................................. 132

31.4.5.3. SeasonaIModel. ..........................................................133

31.4.5.4. Trend seasonal model. .................................................. 133

31.4.6. Time phased planning ............................................................ 134

31.4.7.. MRP Master Data..•...•••••••••••••••••••••••••..•••••.••.•••••••••••••••••••••.• 134

31.4.8. MRP controller.................................................................... 134

31.4.9. MRP Group ........................................................................ l34

31 . 4.10. PPC calendar...................••...•..•.•••...•....•...••....••...••••.•. 134­

31.4.11. MRP Procedure ........................................................... 134

31.4.12. Different Planning runs .•.....•.•••.••••••••.••••••..•.•.••••••••••••••.• l34

32. Warehouse Management (WM)............................................................ 136

32.1. Warehouse Structure Without WMS ........................................... 137

32.2. Warehouse Structure With WMS ............................................... 137

32.3. The warehouse structure in Warehouse Management ........................ 138

32.4. Warehouse Number. .............................................................. 138.

32.5. Warehouse number uniquely identifies the warehouse in a plant ........... 138

32.6. Storage Type ....................................................................... 138

32.7. Storage Section .................................................................... 139

32.8. Picking Area ....................................................................... 139

32.9. Storage Bin ........................................................................ 139

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AEH210JA 11.
Srinivas - Chicago
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SAP-MM (Material Management)
4. Condition Table
o
• A Condition Table consists of one or more condition keys and data part.
• Data Part contains a number that references a record in another table (which contains
the condition records) /)
Field Catalog: Grouping of certain fields for determining prices
Material MATNR komp
Vendor LIFNR komk p - item field inkomp & komk
Purch. Org EKORG komk k - header field ill komp & komk
Plant WERKS komp
Purch.lnfo Re ESOKZ komp
Note: 1. Each condition type has same control data
2. Control data for condition type:

3 All condition types have the same screens. In that fieldvahlesmay be different.

5. Calculation Schema
• The Pricing Schema means the calculations procedure of Condition Type.
• The standard Calculation schema provided by SAP for Purchasing is RMOOOO

In General the Pricing structure or break up provided by vendors is under the following

format

Rs. Condition Types

Gross Price 100.00 PBOO
Discount on Gross Price (@5%): 5.00 RA01
------------
Gross Price after Discount 95.00
Excise duty @ 10% on GP after EDOO
Discount 9.50
------------
Sub Total 104.50
Sales Tax@ 10% on sub total 10.45 STOO
Freight 20% on GP 20.00 FRA1
Packing 2% on GP 2.00 PKOO
-----------
Total Price 136.95
• A framework of steps used to calculate or determine costs, prices, period end rebates
and taxes.
o Ex. RA01 - Discount % is calculated on PBOO - Gross Price.
o It means RAO 1 is based on PBOO like that we have to define in the Pricing
Schema
o Here PBOO has the Access Sequence - 0002. But RA01 does not have the
Access Sequence. Why because it is a dependent on PBOO. But both are
Condition Types.

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SAP-MM (Material Management)
1MG settings

Define Price Determination Process

Define Access Sequences

Define Condition Types

Define Calculation Schema

Define Schema Group

- Schema Groups: Vendor

- Schema Groups for Purchasing Organizations",

- Assignment of Schema Group to Purchasing (;/rganizati6fl;

Define Schema Determination ;;~:" ,

- Determine Calculation Schema for Standard P ase Orders

• After completion of the Schema Group,;weha~rto assi> t,tR:},endors.

Then whenever we use any transaction withthi~y~dor~th~ con2emed Schema will
work as configured by us. •.••.. "... ... . '• , .....
• The Pricing in MM is vast because each Copdition Ii .' its own importance and each
Access Sequence has its oWli'iIriportance ..So you mied'not bother about this. First you
learn how to define the Calculation Schema through the above.

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SAP-MM (Material Management)

,)

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;;:'

Output and Printer Determination

for Purchase Order /

,
'- -~

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AEH2I 0 J.A. I~
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 VERSION IT
SAP-MM (Material Management)
Output and Printer Determination for PO
Define Condition Table for Purchase Order

Access Sequences

Define Message Type for Purchase Order

Maintain Message Determination Schema

Assign Schema to Purchase Order

Define Partner Role for Purchase Order

Messages-> Purchase Order-> MN04-> Create

Now you create PO (ME21 N) and save it.

Go to ME22N and print the PO by giving output type;

"\
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SAP-MM (Material Management)

Release procedure j

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SAP-MM (Material Management)
Release Procedure

• This is an Electronic Document Approval i.e. 'on-line approval rather than manual
signature.
• It is an approval process for Purchasing requisition and external PUl"Chasing
documents
• It Involves
o Checking the correctness of the data
o Giving authorization to p u r c h a s e ,
• The approval may be based on doc. type, doc value,;'plfUlt etc
• There are two types of Release Procedures: ...•..............~. .'

o With Classification (Item level release and oIJJy fo'iPR)

o With Out Classification (Header/qq~ument leyylr~leasefor RFQ, PO,
contract and Scheduling. Agree . . . .
Note:
Item level Approval is possible only
For other Purchase Documents

1. Release Strategy:

• It defines the sequence inwhich the purchase document is to be released

• It contains the release conditions, release codes, release pre requisites
• It defines the entire approval or. release process

2. Release Condition:

• It determines/identifies which release strategy applies.

j
3. Release Group:

• Group of persons responsible for releasing the Purchasing documents with assigned
strategy.

4. Release Code/Point:

• It is a two character alphanumeric id defmed for each individual group (department)

in the release group.

5. Release Pre-requisite:

• It defines, who has to be release the document first.

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SAP-MM (Material Management)

6. Release Indicator:

• It is a one-character id, represents a release status.

• It is assigned to a document.
• When individual person of a group affects release with his release code, a release
indicator is assigned to a document]

E.g.: Blocked - 'B', Released - 'R"

• If a document is not released

o It cannot print a document
o You cannot send this to the concerned vendor
o You cannot do the goods receipt

Frequently used tables in Release procedure

Table Name

PR CEBAN MATKL - Group.

IV •." ' . " : • • ,..

BSART -Doc. Type.

RFQ
PO CEKKO BSART - Doc. Type
Contract GNETW- Net Order Value
Scheduling Agreement

SES SESSR LWERT - Total Value Release

(Service Entry UWERT- Partial Value Release
Sheet)

Note: The effected Release can also be cancelled, but it is possible only before the higher
person in hierarchy has not approved

IMG Settings: Release Procedure

Edit Characteristics

Edit Class

Define release Procedure for PO

Release Groups

Release codes

Release Indicators

Release Strategies

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SAP-MM (Material Management)

".. "
'- J

Partner FunctionslRoles

- Vendor

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)
VERSION IT
SAP-MM (Material kJanagement)

-~l

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Partner Functions
F)
/
The Vendor as Business Partner he can assume different roles in its dealings with another
enterprise. In a procurement transaction, the vendor roles are: .. ~
J
• Vendor (VN)
• Ordering address (OA)
• Goods supplier (GS)
-'"

• Invoicing party (PI) -)

>

Customization Settings: '\I

~
1

1. Define Account Groups and Assignment.

()

~
SPRO -7 Logistics General -7 Business Partner -7 Vendors -7 Control -7 ~
a. Define Account Groups and Field Selection (Vendor) ~
b. Define Number Ranges for Vendor Master Records and Assignment
']
2. Partner Determination

a. Partner Roles
SPRO -7 Material Management -7 Business Partner -7 Partner Detennination )

-7 Partner Roles -7 Define partner roles

b. Define Permissible Partner Roles per Account Group
SPRO -7 Material Management -7 Business Partner -7 Partner Detennination
-7 DefinePennissible Partner Roles per Account Group 7 ­
c. Partner Settings in Vendor Master Record
Define Partner Schemas
SPRO -7 Material Management -7 Business Partner -7 Partner
Detennination -7 Partner Settings in Vendor Master Record -7 Define
Partner Schemas
Assign Partner Schemas to Account Groups
SPRO -7 Material Management -7 B~siness Partner -7 Partner
Detennination -7 Partner Settings in Vendor Master Record -7 Assign
Partner Schemas to Account Groups
d. Partner Settings in Purchasing Documents ,
Define Partner Schemas I

SPRO -7 Material Management -7 Business Partner -7 Partner

Detennination -7 Partner Settings in Purchasing Documents -7 Define
Partner Schemas
Assign Partner Schemas to Document Types
SPRO -7 Material Management -7 Business Partner -7 Partner
Detennination -7 Partner Settings in Purchasing Documents -7 Assign
Partner Schemas to Document Types I

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SAP-MM (Material Management)

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Valuation and Account Assignment

(MM and FI nt.,.n,..",ti

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Srinivas - C/;icago
 VERSION IT

SAP-MM (Material Management)

Valuation and Account determination
)
Valuation and Account Assignment: This is fully integrated with FI.

Material Valuation: Stock value = Stock Qty X Price

Material valuation will updates the GIL accounts in Financial Accounting.
Material Valuation features:
1. It allows you to revaluate the materials
2. You can evaluate the materials differently based on sub stocks.
3. It allows you to evaluate the balance sheet.
Material Valuation control:
This valuation is controllable by
1. System settings (where valuation hasJQp((dcme), . .
2. Material master records (As a rule fbI:.~ach:'$.atenaI has to be evaluated under a
material type. If this material type i~Y~luat~d or ~otJ:.

For every material you are you afe'assigning:V~ludtion class.

• You are grouping a material type unaeiyaluation class.

• All materials of a material type canhav~ a one material valuation '.
class. J
• Under a material type you can have different valuation class for
different materials
• Materials under different material types can have same valuation class.

Valuation Structure

1. Valuation Area:
a. Valuation areas are possible at
i. Company code level
ii. Plant level
Note: SAP Recommends Valuation at Plant level
2. Valuation class: Grouping of similar properties of materials for the purpose of automatic
accounts determination.
a. If you don't give valuation class to material it will be posted to a consumption

account

3. Valuation category:
a. If you want to valuate the materials differently based on certain criterion you can
use the valuation category.
b. For example based on origin, procurement, based on status (new, rework, repaired
material). You can maintain tender wise also

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SAP-MM (Material Management)

4. Valuation type: It is the characteristics of the valuation category

Valuation Category Valuation type

Origin Import
Local
Procurement Internal
External
Status New
Reworked
Repaired
5. Material type
6. Account category reference:
7. Grouping of valuation classes for automaticaccotmt deten11iu(ition. is attached to a
material type. ",
8. Movement type: which material movelll~nt "
9. Valuation grouping code: is used to grbllptheV~I;tIatioriareas.
a. With in the same valuatiol1 area you can detemllne different GIL accounts.
b. VGC is also called valuatio.nmodifier ' ,
10. Transaction/Event Key:
• It is an intemaLprocessing Key.
• It is used for the purpose of automatic account determination
Examples:
o Inventory posting BSX

o 'Offsetting entry for inventory posting GBB

Cost(price) differences PRD

GRlIRclearing accounts WRX

"''2 Consigrunent liabilities KON

11. AccountIUQdifier:
• It isafil1e:(l,lccount detennination.
• It is a subdivision of finer account determination. (These or sub division of
accounts)
• Account modifiers are pre-defined in the system for GBB, PRD & KON.
• They are defined for GBB, PRD & KON only.
Note:
1) For GBB account modifier is activated by default
2) For KON & PRD it is not activated. In case if we want it can be activated.
3) For GBB you can create new account modifiers where as for KON and PRD
you can't create the same
Ex: for account modifier for GBB:
AUF: GR with production orders with account assignment
BSA: Internal entry for stock balance
INV: Expenses or revenues from the inventory differences

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'---..,
)
VERSION IT
SAP-MM (Material Management) \
)

')
Customization:
.---,
;J
1. SPRO -7 Material Management -7 Valuation and Account Assignment -7 Define Price
Control for Material Types .1
J
2. SPRO -7 Material Management -7 Valuation and Account Assignment -7 Account
Determination -7 Account Determination Without Wizard . l
)
a. Define Valuation Control (OMWM)
b. Group Together Valuation Areas
")
c. Define Valuation Classes
d. Define Account Grouping for Movement Types (OMWN) .-)
e. Configure Automatic Po stings ./

Define Valuation Control (OMWM) ~)

~)
;:;
• Choosing the valuation level is one of the first steps we will perform while

customizing the system.

, -

• If using the PP Production module, the valuation area must be set at the plant level. \
)
• For account determination, you can group together valuation areas by activating the
valuation grouping code. This makes the configuration of automatic postings much
eaSIer.
\
)
Group Together Valuation Areas

• Valuation areas are grouped together with the objective of simplifying management
of the standard accounts table by minimizing the number of entries.
• Along with other factors, the valuation grouping code determines the GIL Accounts,
to which a goods movement is posted (Automatic Account Determination).
• The valuation grouping code makes it easier to set the automatic account

determination.
- -::::,. ­

• Within the chart of accounts, we assigned the same valuation grouping code to the
valuation areas.
• Since we want to assign to the same GIL account, we assigned the same valuation
grouping code to the valuation areas.
e Valuation Area Company Code Chart Of Accounts Valuation Group Code
TPLI TMOT INT 0001

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SAP-MM (Material Management)
Grouping of Valuation Areas

Valuation
Company Code -t---i Valuation Area f~ Grouping Codel

Valuation

Modification

'\
j

Valuation Area
Plant

Define Valuation Classes

... ---­ '
" -------­ ,,-'"
, ~- -­ . - - ,

• The Valuation class is a group of material tl1c;:sGU1l~(j1L aCcount.

• When you create a material master record,ou mus(?$slgriJ1ie material to a valuation
class. The valuation class is assigned toa material at pla,nt level. However, ifusing
split valuation, the valuation class will be assigned at the valuation type level.
The choices for valuation class are dependent on the Ifiaterial type. In general, several
valuation classes can be allowed for one material type. Also, the same valuation class
could be allowed for different material types.
• The link: between the valuation class and the material type is the account category
reference. TI1~ l;lccount category reference is assigned to a material type.
• The GIL accoUnt determined for a material is carried out according to the settings for
its valuation class.

Stept:
• A~coullt C~!egoryReference
Account Categ()ry Reference (4 Char): Group of valuation classes that's the system
uses to checkwhether the valuation class you have entered is allowed when you
maintain accchinting data in a material master record.
Step2:
• Valuation Class
Here The Valuation Glass is defined and a Account Category Reference is attached to
a Valuation Class.
Example: 3000 (Raw Materials) -> 0001 (Reference for Raw Materials)
Step3:
• Material Type I Account Category Reference
Here the Material Type can be assigned to a Account Category Reference.
Example: ROH (Raw Materials) -> 0001 (Reference For Raw Materials)

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SAP-MM (Material Management)
Material Type

Account Category
Reference

/ ~
Valuation Class

Define Account Grouping for Movement Types

• Movement type
• Special stock indicator
• Value updating
• Quantity updating
• Movement Indicator
• Consumption posting
• Posting string for values
• Counter
• Transaction/event key
)
• Account modification
• Check \

,
- 7 ­
Transaction key

Movement type FR!

'" ~
Value String
/ ~
Transaction key Dr Stock
WAOI BSX

Transaction Key
WRX Cr
GRIIR

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SAP-MM (Material Management)
The following diagram shows the relation between Chart of account, Transaction, account
modifiers, accounts posting keys.

Chart of Account

Accounts I Postings I Rules

/ 1 2~4 Keys
1 2 3 4
Offset entry ­
Inventory Posting
I Val. modifier II Val. cis Il!:!!I ~ IGen. Modifier I [!!J I!J ~]

Price Difference Alc IVal. modifier ,I Val. cis 'I Debit II Credit I I!l [!!J ~ ,"',

\
) '-_..... GRlIR clearing Ale I Val. modifier I ~ l~J[!!J
FrieghtClearingA.1c ~ ~[!J
'--'"
Account Determination Procedure Overview

Type of

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SAP-MM (Material Management)
TRANSACTION I EVENT KEYS IN SAP
(WITH NOTES ON APPLICABILITY)

AUM Stock transfers are there between plants and from one movement type. to another with
split valuation. The difference between the price at the delivering plant and the
receiving point is booked at the later.
Account to be opened:
Loss - Stock Transfer
Gain - Stock Transfer Alc
B01 Check up Subsequent settlement of Provisions (e.g.: volume based rebate)
B02 Check up. Subsequent settlement of revenues -conditions in inv. Verification
B03 Check up Provision Differences . ..
BSV The Company sends materials for subcontract work, this transaction is considered.
Accounts to be opened

Materials Consumed/Trading Gooq~w/Qcost element --fof ROH

Inventory Change Cost pfGoods'sold w/o C()stelement -- for FERT s

BSX All stock postings to Stock Account~4u.etoGoods r~eipts& goods issues in

Inventory Management. B/~ Inventory Alc s l1101to':11111
DIF Small Differences that mayianse during invoice verification in the invoice amount not
exceeding tolerance.
Accounts to be opened: "
)

Loss-InventoryDifferences AIc
Gain---InventoryDifferences Alc "
)
FRx These are used for posting delivery costs when goods and invoices are received for
purchase orders
FR1 Freight Clearing 69002 Separate Alc s is required
FR2 Provisions for freight Charges 69002
FR3 Customs Clearing 69002
FR4 Provisions for Customs Clearing
FRL Services are perfonned for the company externally.
Account to be opened:

Purchased Services Alc

FRN Services are perfonned for the company externally and hence delivery costs
Account to be opened:
External Procurement Costs Ale
GBB Offsetting Entries for Inventory Postings
AUA For Order settlement
68005 (Factory output for Production)
AUF For GRs for orders (w/o account assignment)
68005
BSA For initial entry of stock balances
11199
INV ExpenditurelIncome from Inventory differences
68004 - Raw Material Consumption Alc
VAX For goods issues for sales orders with no assignment object
The account will not be cost element

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SAP-MM (Material Management)

68002 -Raw Material Indigenous
72001 - Stores & Spares
YAY For goods issues for sales orders with assignment object
The account is a cost element
VBO Consumption from stock provided to vendor
68002 -Raw Material Indigenous
VBR For internal goods issues (e.g.: to a cost center)
/ '\
68005-Factory output for Production
'-_ J
J
72001 - Stores & Spares
VKA For consumption in Sales Order without SD (Mvt. Type 231)
68005-Factory output for Production
VNG For Scrapping & destruction
'\
) 68004 Raw Material Consumption - Others
VQY For sampling with account assignment
ZOB For goods issues with no Purchase orderreference (Mvt 591)
ZOF For goods issues with no production order reference (Mvt521)
KBS Account - assigned Purchase Order ie. account assignment taken from PO
Account need not be assigned ill OBYC
KDR Exchange rate rounding differences in case of foreign currency invoices
80029 -- Exchange Rate Difference -Valuation 1
KDM Exchange rate rounding differences for open items (invoice posting with a
Different exch. rate than the GRJdue to Std price difference/insufficient stock
coverage)
80028 --Exchange Rate Difference - foreign currency to local
KDV Material1edger from low.1evels EIR diff.
KON Consignment payab1es '
KTR Offsetting entry for price differences in cost object hierarchies
6800Sc--Factory output for Production
LKW Accruals and deference. acct (material ledger)
PRD Price Diff~rences
Loss/Gain Inventory Differences (Two Alcs to be opened & assigned)
68004 - Raw Material Consumption Others Alc is assigned
PRK Price Differences in cost object hierarchies
Loss/Gain Inventory Differences (Two Alcs to be opened & assigned)
RKA Inv. reductions from logistic invoice verification
UMB Gain/loss from revaluation Check up- 68004 is found attached (Raw Material
Consumption - Others Alc )
UPF Unplanned delivery costs
VST Input Tax
WGI Goods issue inflation revaluation
WGR Goods receipt inflation revaluation
WRX GR/IR clearing account
40051 - GRJIR Clearing Alc
WRY GRJIR clearing acct (mat. ledger) (old)

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SAP-MM (Material Management)

Inventory Management:
-Overview

19
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SAP-MM (Material Management)

Inventory Management Overview

Inventory Management is a part of a Material Management module.

Inventory management means managing the material stock by maintaining the proper

records or material movements.

Inventory management works on two ways

o On Qty updating (at store location)

o On Value updating (at Nc)

Inventory Management is fully integrated with , FlICO

o In PP ,.,' ........... .

• 1M is responsible for staging ()fthe C6gip9ne'tHsr~quired for

C)
production orders';>' . " .,':>:;" '.<
• The receipt of finish~d prq4qc.;ts in th~;:wearhouse is posted
[Here, when material i§sued to production, IM\vill check the availability of
the stock and release thematenalforprOduction]

o In SD
• Issue the stoc.k for Sales Order
• It is possible]o create Sales order stock

o InQM
• In case of goods movement, the system determines whether the
material is subject to an inspection operation. If so the corresponding
activity isillitiated for the movement in QM

o InFIICO
• Issue to production - Consumption Alc
• Scrap - Scrap Alc
• Issue to Sale ~ Sales Alc
• Before Invoice FI
• After invoice ~-CO

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SAP-MM (Material Management)

Goods movement

There will be a transaction resulting in a change in stock.

Types of Goods movement:

• Goods Receipt (GR)
• Good Issue (GI)
• Stock Transfer
• Transfer posting
,"
)
Goods Receipt (GR)

It is a goods movement, with which the re<;eipt ofthe goods from vendor or

production is posted. A good receipt leads to an increase in warehouse stock

Goods Issue (GI)

It is also a good movement, with this

• Material with drawl
• Material Issue
j
• Material consumption
• Shipment ofgoods to a customer - is posted

A goods issue leads to a reduction in warehouse stock

Stock Transfer

ill "It is also one more goods movement

• 'It means removal of material from one storage location (or plant) to
other storage location (or other plant) with in or between company
codes

Transfer Posting

• It is a general term for changes in stock type or stock category or stock

status of a material
• Transfer posting from material to material
• Release from quality inspection stock

[Note: It is irrelevant whether the posting occurs in connection with

physical movement or not]

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SAP-ltlM (Material Management)

Result of Goods movement.

When you enter a goods movement

• A Material document is created
• If the movement is relevant for financial ale accounting document will also be
created
• Stock quantities of the material are updated
, !
• Stock value of the material master is updated
• Depending on the movement type additional upqates are also carried out like in
case of good issue for cost center the consumption values of the items are also
updated.

Document concept:
, ,:',<'.:

• The account principle of 'No posting with o~tdocun1~nt" is applies even IT based
t\ Inventory management system
I
• A document is a proofthatatransaction involving stock changes has taken place
• When a good movement is posted, a MaterialD()cument is generated as a proof of
the movement.
• If the movement is relevant t() the financial accounting (i.e. if it is leads to an
update of GIL accounts) an accounting document will be generated parallel to the
material. document.

Document header Document header

Material document 490 Accounting document
Date 04 July. 1999 4900000642
Name Miller Date 04 July, 1999
Currency
Document items Document items

Qty Material Pint MvT Account Short text UNI

OO~I 10 L Paint 1000 101 001 300010 Stock 75+
002 25 pes Aluminium'lOOO 10'1 002 300000 Stock 1000+
003

The material and accounting documents for a

goods movement are created simultaneously.

SAPAG lG0bt

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SAP-MM (Material Management)

Material Document consists of Accounting Document consists of

Document Header Document Header
Posting date posting date
Name of he person who created Document currency
At item level at item level
Quantity GIL Account no
Storage location Associated amoulltposted
Plant, Movement type

Note: The Material and Accounting Documents;are independent documents

Document type in Inventory management:

WA Goods Issue
WE Gross Goods Receipt
WN - Net Goods Receipt
WI - Physicallnventory Document
WL - Transfer posting

Movement Type

• It is a three digit identification key

• In order to· differentiate various goods movements movement type is used
• Movemellttyp~ has an important control function in Inventory Management
o Updating the quantity fields
o Updating the stock and consumption accounts
o Determin,:ing which fields are to be displayed during the entry of a
documentil1 a system
• Exam Ie of Movement t e is

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SAP-MM (Material Management)

Some Important Movement types:

Note!: Movement type + 1 = reversal

Note2: for 121 ­ no reversal movement type

I Movement types·· I

Stock nail':

T'till. I)osting

201 331 551 901

221 333 553 '903

231 335 555 904

241 557 905

_-+--+906

945
951
952

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SAP-MM (Material Management)

Tcodes in Inventory Management

1. Material documents
a. MB51 List of Material documents
b. MR51 List of Accounting documents
2. Stock
MMBE Stock Overview MB52 -- Warehouse Stock
MB53 Plant Stock Availability MB5B - Stock between Posting Dates
MB5T Stock in Transit MBLB - Stock with Subcontract Vendor
ME20 -- Stock provided to the vendor MB50 -.,Total Stock aU materials
MB5S -- List ofGRlIR balances

3. MB IA - Goods Issue
4. MB IB - Transfer Posting
5. MB1C -- Good Receipt

6. Layouts:
a. ME9F -- PO Printout
b. MB90 -- Output fromGoods Movements
c. ME9A -- RFQ Printout
d. ME9E -- Schedule Agreement Printout

7. Reports:
a. ME80FN General Analysis PO Report
b. MC48 -- Current Inventory
c. MC45 -- Consumption Value

MIGO Transaction code is meant for

• Goods Receipt
• To display of material document
• Goods Issue
• Releasing of GR Blocked stock
• Place in storage
• Removal from storage
• Cancellation of material document

Inventory Management IMG settings

Plant parameters
Number Assignment in INV Mgmt
Define number assignment for accounting doc (for GR, GI&PI)
Set tolerance limits for Goods Receipt (B 1, B2, and VP)
Create Storage loc automatically in Inv. Mgmt
Set Delivery completed indicator
For GR based IV, Reversal ofGR despite invoice
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SAP-Mill (Material Management)

Inventory Management:
- Goods Receipt

20
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• VERSION IT
SAP-MM (Material Management)

Goods Receipt
GoodS RftCeipt , , '

Purchase
I " )

order

document

Steps during GR:

• Company Sends a PO to Vendor

• Vendor will send Material to Company based on PO may be full quantity or
partialqUaIltity to the delivery address mentioned in the PO
• CompanYJ.1l~es a Goods Receipt
• GR will be done at the plant premises called GR area
• During the GR, system will generate one material document as a proof of action
i.e. GR and it also generate Accounting document in addition to material
document parallel and automatically

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, .
Effects of a Goods Receipt

Stock and value

updated

i"',--- //;
,-­
I
~\.. ,,'" ,~-­
/,-"',_ r­
,,;:. .:::::::J
Notification
of goods
receipt
(optional)

Creation of an
Hard copy Inspection lot to
(optional) '-=~-. trigger a quality
inspection

Transfer request to Stock and

warehouse consumption

management {if accounts

active} updated

The diagram shows an overview of all the key effects of a goods receipt referencing a
purchase order.

At the goods receiving point

• System checks whether the delivery is the same as the purchase orders data, that is,
whether the goods that were ordered have been delivered.
• The system suggests data from the purchase order when you enter the goods receipt
(for example, items and quantities). This makes it easier to enter the goods receipt and
check over deliveries and under deliveries when goods arrive.
• The purchase order history is automatically updated as a result of the deliveries.
• The Purchasing Department can send a reminder about late deliveries.
• When you post a goods receipt to the warehouse, the system creates a material
document containing information such as the material delivered and the quantity
delivered. The system also records the storage location in which you place the
material into stock in the plant concerned.
• In transactions relevant for material valuation, the system creates at least one
accounting document, which records the effects of the goods movement on the value
of the stock

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SAP-MM (Material Management)

Result of the goods receipts posting

1. Creation of the Material Document

When you post a GR, the system automatically creates a material document which

serves as a proof of the goods movement.

2. Creation of the Accounting Document

Parallel to the Material Document, the system creates an aCCOl.mt document.

3. Creation of goods receipt/issue slip

a. When you enter GR you can print GR/Issue slip
4. Sending a mail message to Purchasing ..... ..
a. If the GR message indicator has been set in PO, t:l1e the buyer automatically
receives a message about the delivery . ..
"
}

5. Stock up date
a. Stock will be updated in the material master record, depending on the
destination of the goods . ';.,
6. Good receipt into warehouse . ',. . . : ' ".
a. Here the system will increaSe the total. valuated stock and the stock type
(unrestricted etc) by thedelivere4 ql.l.antity~ The stock value is updated at the
same time.
7. Good receipt in to the consumption
a. Only the consumption statistics are updated in the material master record.
[However it does not update this stock for spl stock like sales order, project
stock]
8. Good Receipt into GR blocked stock ;

a. The stock levels remains the same

b. It records only in the PO history
9. GR into a new storage location
a; New storage location will be created when GR is posted (Provided
cnstomizingof automatic creation of storage location is done already)
b. Other wise you have to add a new storage location to the material master
before you post a GR to it.
10. Update the GL accounts
a. System automatically updates the G/L accounts by the value of the goods
receipt.
11. UP date in PO:
a. PO History:
1. During the GR a PO history record will be automatically created
which contains data like delivered qty, Mat doc no, item, Mat type and
posting dates of GR
b. PO Item:
1. If the delivery completion indicator is set in the mat document the
order is considered to be closed and the open PO qty is set to be zero

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SAP-MM (Material Management)

12. Other Updates:
a. Depending on the characteristics of the material, movement and components
used other updates are carried out like:
1. Entries will be made in the planning file or independent requirements
reduction in mat. PIg
11. Statistical data in Inventory controlling
111. Vendor evaluation data in purchasing
IV. Transfer requirements and quota in WM
v. Inspection lots in QM

Effects of GR on PO and Material Master.

'.
;'

In PO
o Header data - Header Data
• Status View - Status view
• OrderQty-·X Order Qty - X
• Delivery. Qty - 0 Deli. Qty - Y
• Still to be del - X Still 2 be del X Y
o Item Over View - Item Over view
• No New tak called PO history A new tab PO History create
o Delivery Tab
• Del. Completed indicator III Del completed indicator
• (No check/masked) (If full PO Qty receives)

In Material master

o NoNewview A new view will be added

• For Plant stock - for plant stock
• For Storage loc stock - for storage location

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SAP-MM (MaterialManagement)

Inventory Management:
- Goods Issue

21

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SAP-MM (Material Management)
Goods Issue:

Goods issue is the with drawl of stock or delivery to customer

Goods issue leads to reduction in stock

Types of Goods Issue

• With drawl of material for Production orders

\
• With drawl of material for sampling & scrap
• Return deliveries to vendor
• Other types of internal staging of material

8 Deliveries to the vendor with out involvement Of SD "Ul""~UO"

Entering the good issue:

Entering the goods issue can be created intwo """""'",

W.r.t Reservation
It is unplanned Issue
VV.rJ Production order

WIt 80M

Goods issues,are either Planned or Unplanned

Planned I Unplanned I
- Del to Customer - Issue to scrap
- Return to vendor Drawing of samples
- Reservati,on

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SAP-kIM (Material jl{anagement)
Goods Issue

• Goods issues can be planned or unplanned. The data to be entered depends on the
type of goods issue. The Rl3 System prepares various account assignment fields, .~

depending on the movement type and system configuration. It uses automatic account }

determination to determine the G/L account to which the movement is posted. You
enter a G/L account only ify6u want to post the goods movementt6 another account.
• If a material is no longer of use, it is posted for scrapping. If a materiaLis destroyed,
this information must also be entered in the Rl3 System. You can scrap material from l
unrestricted-use stock, stock in quality inspection, and blocked stock. When you post
a material for scrapping, the Rl3 System reduces the relevant stock, transfers the ")
value of the scrapped material from the stock account to a scrap account, and debits
"\
the cost center entered. .... ... J
I

• Sample withdrawal is a goods issue generally linked to a quality inspection. The SAP
sampling procedure assures you that the sample for te~ting is taken from the existing .. ~
\ ..1
stock. The sampled goods are treated as destr6yed~iit~other words, the system ~

assumes that the material can no longer be used ~lfte.r theqllality .inspection. In this
way, sampling is the same as scrapping, with the ·exception that the value of the "'"y ~
-

sampled material is posted frorn the material stock account to the quality inspection
expense account.

Why Reference Document:

When a reference document is exists (reservation/order)

)

It can check whether what was requested is actually issued

System can suggest data (like mat, qty, Alc assignment, over/under deliveries etc)

from the reference document

After with drawl, qty with drawn is updated in reference document and reserved qty

is reduced accordingly.

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SAP-MM (Material Management)

Inventory Management:
- Stock Transferl

22
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SAP-MM (Material Management)
)

Stock Transfer:
• In a day-to-day activities Stock transfer is one activity.
• Normally stocks are transferred between organizational units based on official
).
communication of the concerned in charges. j

Stock Transfers are two types

1. Intra Company Stock Transfer

Means Stock transfer with in the company

2. Inter Company Stock Transfer

Means Stock Transfer between company

Intra Company Stock Transfer:

Again it is Two Types
1. Storage Location-to-Storage Location
2. Plant-to-Plant

1. Storage Location-to-Storage Location

Again these types of Stock transfers are two types
1. One-Step Process
2. Two-Step Process

a) One-Step Process
• Here certain quantity of material will be requested officially by the in-charge of
one storage location to the other storage location
• The following Drawing shows based on the request of Storage Loc. In-charge of
S2, 81 in-charge is sending the material under One-Step Process

Plant
SPLI

I I

lVIat: T)'l'e
Stock status
Sl ~-
S7

=500
I l
Stock Req.
to trallsfel' Qty 100

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SAP-MM (Material Management)

Steps:
• Use TCode: MBlB and Mvt = 311
• Enter Supplying Plant SPLI and Supplying Storage. Location

screen.

• Enter the material no and quantity

• Press save

b) Two-Step Process
[This process is adopted in SAP because when transfemng the stock from one
storage location to another storage location there is a possibility of notieceiving the
quantity by receiving storage location because of differente:vents
.
"-.
like accident, theft
,

may occur. , ' ; ; ; : ' ' '. "',,.,..... .

In single step whether the receiving storage locationn;~8~iv~sphysically the quantity

or not it updates in stock status. ... '. ,,'.,'

This can be avoided in the two-step process]

In Two-step process there are two sub steps:

1. Remove from Str. Loc

2. Placing into Str. Loc.
Remove from Str. Loc
• Use TCode: MBIB and Mvt 313
• Enter Supplying Plant SPLI and Supplying Storage. Location Sl in the initial
scre~n.

• Enterthe material no and quantity

• Presssave

PbUlt

SPLI

IVbt: TYTe
Sl 82

Stock status
=400 '---r----'

Remove fI'om
Str. Loc = 100

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SAP-MM (Material Management)

Placing into Str. Loc

• Use Teode: MBIB and Mvt = 315
• Enter Plant as SPLI and Receiving Storage. Location as S2 in
• Enter the material no and quantity
• Press save

Plaut

SPLI J

Mat: Ty:rt>
Stork stainS
=400 '--~--'

Plafing into
Str. Loc 100

2. Plant-to-Plant
Again these types of Stock transfers are two types
3. One-Step Process
4. Two-Step Process
a) One-Step Process
• Here certain quantity of material will be requested officially by the in-charge of
one storage location of one plant to the other storage location of other plant.
• The following Drawing shows based on request of in-charge of Storage Loc. of
SI of Plant-I, sending to the material to the in-charge ofS3 ofPlant-2, under
One-Step Process
PhUlt 1 PbUlt 2

SPLI SPL2

ntv
,.'
,(",

=300
Qty= 100

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SAP-MM (Material Management)
Steps:
• Use TCode: MBIB and Mvt = 301
• Enter Supplying Plant SPLI and Supplying Storage Location S 1 in the initial
screen.
• Enter Receiving Storage Loc2
• Enter the material no and quantity
• Press save

b) Two-Step Process (Plant-to-Plant)

[This process is adopted in SAP because when trans(emng the stock:from one storage
location of a plant to another storage location of other J?l~nt, there is ap/.)~sibility of
not receiving the quantity by receiving storagelocati<.)Q.()f other plant bec~use of
different events like accident, theft may occur. ..
In single step whether the receiving stor~~eloCationreGeivesphysically the quantity
or not it updates in stock status. .••.•.• .• .•~..." .. . .
This can be avoided in the two-st~p proc~S~]

In Two-step process there are twosub steps:

1. Remove from Str. L()c (Plant-to-Plant)
2. Placing into Str. Loc.(Plant-to-Plant)

Remove from Str. Loc (Plant-to-Plant)

St~s:
• Use TCode: MBIBandMvt = 303
• Enter Supplying Plant SPLl and Supplying Storage. Location S 1 in the initial
screen.
• Enter ReceivingPlant SPL2. Entering of Receiving Str. Loc is optional.
• Enter the material nOllnd quantity
• Press save

Plant 1 Plant 2
SPLI SPL2

I I
I
Qty SI S2 83
84

=200

Rem. Qty
= 100

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VERSION IT
SAP-MM (Material Management)

Placing into Str. Loc. (plant-to-Plant)

Steps:

• Use TCode: MBIB and Mvt = 305

• Enter Receiving Plant SPL2 and Receiving Storage. Location S2 in the initial
screen.
• Enter the material no and quantity

Press save

Plant 1 Plant 2
SItLl SPL2

I I
I
Qty
=200
SI S'
~ ­ 83 84
I

Placillg Qty
= 100 \ ­

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/
I
'i
I I
'-,,,I ~ ' ... / '.L./ "'-'J/

""""""'" ""
," """" """"','

~
"'"

\0
-..l
A'e Doc Detail,1
Stork Stanis >
,
T~"p~
SNo Action Thh Ivhido SUPl,lying Rmiving Additional rat~~)\y I
I ~
=: ~
:\if Dor HAir N Desniption Plallt SIr Lor Plalli Sn,Lo(

>
~

1Goods Receipt GR-ulr 101 Yes Yes 300000 Inv Raw mat tve Qty Increased
g­ ~
S'~
~ 191100 GRJIR off set Alc -ve ~
(I)
ro 2Goods Blocked GR-BIk £ ~

-
io<-I 103 Yes NO No change GR Blocked Qty increased
o 3ReI of GR BIk ReI ofGR BIk 105 Yes 300000 Inv, Raw mat tve Qty Increased GR Blocked Qty decreased
1
1
1
~
;::;.
S 191100 GRJIR offset Alc -ve
1
I

: ~
:
~
4 Goods Receipt GR-QI stock type 101 Yes Yes 300000 Inv Raw mat tve QI Stock -Qty increased
~ 1
"oft :::
191100 GRJIR offset Alc -ve >
1
I
1
1
~
~
5Goods Receipt GR-Blocked stock type 101 Yes Yes 300000 Inv Raw mat tve Blocked stock Qty -increased
~
1
,
191100 GRJIR off set Ale -ve I

F: ~
I

6Goods Receipt GR -Initial Entty Stock(wlo PO) 561 Yes Yes 300000 1m, Raw mat tve Qty Increased
399999 InventolY taking -ve ~-~
7 Stock Transfer Str Loc -to -Str Loc (One step) 311
Str Loc -to -Str Loc (Two step)­
313
Yes NO Qty Decreased Qty increased ~ ..
a.
,
:
8Stock Transfer Remove from Str Loc Yes NO Qty Decreased Qty Decreased No change Transfer (SnJoc) Qty increased :Q.
Str Loe -to -Str Loe (Two step)­ I

315 i
I
9Stock Transfer Placing in Str Loc Yes NO Qty Increased No change Qty Illcreased Transfer (Strloc) Qty decreased
10 Stock Transfer Plant -Plant (One -Step) 301 Yes Yes 300000 Inv Raw mat -ve Qr; Decreased Qty Decreased Qty bcreased Qty increased
i
300000 Inv Raw mat tve I

:
Plant -to Plant (Two Step)
11 Stock Transfer Remove from Str loc 303 Yes Yes 300000 Inv, Raw mat -ve Qty Decreased Qty Decreased No change No change Stoc Transfer (plants) Qty Increased
~ II
,

-.s·

300000 Inv Raw mat tve Q.

Plant -to Plant (Two Step) Placing I
<
~
I

~
I

12 Stock Transfer Strloc 305 Yes NO No change No change Qty increased Qty Illcreased Stoc Transfer (plants) Qty Decreased
~
13 Transfer Posting QI to UIR 321 Yes NO QI stock decreased and Ulr Stock increasec 00

-.Q

~
14 Goods Issue To Cost Center From ware house 201 Yes Yes 300000 Inventoty -Raw Mate -ve Qr; Decreased Qty Decreased
400000 Consumptn, raw mat.I tve a
o""""
2
~~ 15 Physical Inventoty Yes Yes """"
1-3
For Loss ofMaterial , 702 300000 Inventoty -Raw Mate -ve
233000 Losses -inventoty tve
For Gain ofthe Material 701 300000 Inventoty -Raw Mate +ve
283000 Gain -inventoty dif -ve I

1;.1,,11:,;
 VERSION IT

SAP-MM (Material Management)

Inventory Management: ;

Transfer Posting - "

, ,
, }

23

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Stock Types:

Stock Types

• Unrestricted-use stock
• Quality inspection stock
...
~-- • Blocked stock
• and others

• InInventory Mafi(igelnent, there are three stock types that indicate a material's
usa~mty.. Ifbatch status management is active, the system supports another stock
type; restricted-use stock.
• UnrestriCted.;';lIse stock:
• A company's own stock that is physically located in the warehouse, is valuated, and
is not subject to any restrictions on usage.
• Quality inspection stock:
• A company's own stock that is in quality inspection. Quality inspection stock is
. valuated, but is not for unrestricted use. (not available for MRP, no with drawl is
possible)
• Blocked stock:
• A company's own stock that is notlo be used. It is not for unrestricted use in
Inventory Management and may be configured as not available for Materials
Planning. (i.e available from MRP perspective, no with drawl is possible)
• You can only post with drawls from consumption from unrestricted stock
• From Quality InspectionJBlocked Stock you can with draw only sample or scrap
material.

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Transfer Postings:

Transfer Postings

~ '\
/

glh Ii

'}

~
• You canol1ly post withdrawals for consumption from unrestricted-use stock. From
quaJity'jnspection stoqkahd blocked stock, you can only withdraw a sample, scrap a
quantity,or post an inventory difference.
• If you want to withdraw goods from blocked stock or quality inspection stock, you
have to carry oUt a transfer posting into unrestricted-use stock first. This also applies
to stock transfers.
• When you carry out a transfer posting, the stock type, batch number, or material
number is changed. A transfer posting may also involve an actual physical stock
transfer.
• The system creates a material document so that the transaction can be entered. The
system only creates accounting documents if a change in valuation is involved (for
example, stock transfer from plant to plant).
• You use the movement type to control the stock types involved in the transfer.

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. \
'-- J

Inventory Management:
Physical Inventory

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Physical Inventory
What is Physical Inventory?

Physical Inventory is the procedure used to maintain an accurate count of material

This involves physically counting the quantity of stock at storage location.

Which stocks can be inventoried?

• Company's own stock
• Special stock (consignment stock at customer, externalcQnsignmentstock from
vendor or returnable packaging material)
Note: 1. Above stocks to be taken separately in different physic~linventory documents.
2. Physical inventory can be carried out for the f()llowingstock types
a. Unrestricted stocks in wear house
b. Quality inspection stock
c. Blocked stock
d. Ifbatch status management is active, stock type I covers both unrestricted-
use stock and restricted-use stock .
3. Inventory of all stock types mentioned could be taken in a single transaction
4. For the material to be inventoried, one item is created in the physical inventory

document for every stocktype.

5. Physical inventorytakes place at storage location level.

)
6. A separate physical inventory document is created for every storage location
- ~

[Ifno storage location segment exists for a material, this means that no goods

movement has ever taken place for the material in the storage location. The material

therefore has never had any stock at the storage location and does not exist at stock

management level. It is therefore not possible to carryout a physical inventory for the

material in this storage location

This is not to be confused with a material for which a goods movement has taken place
and for which the stock balance is currently zero. A Physical inventory must be carried
out in this case. It is also possible to carry out a physical inventory since storage
location data is not deleted when the stock balance is zero]

Physical inventory procedure:

• Periodic Inventory
• Continuous inventory
• Cycle counting
• Inventory sampling

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Inventory Management:
Reservation

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Reservation
What is Reservation?

A Reservation is a request to the warehouse to keep materials ready for a goods issue at a
later date (for future use) and for certain purpose.

• A Reservation for goods Issue can be requested by various departments by various

account assignment objects (such as cost center, order, assets)

• It is used to plan an inward movement in advance.

• A Reservation ensures that a material is available when it is needed
• It is also simplify and accelerate the goods issue process and prepare the task at the

point of goods issue.

• Reservation can be taken into account by MRP so that a required material can be

procured quickly if it is not available in tHe'wan!house;

• A Reservation results in an entry in the reguirement:'plfU1I1il1g file.

• Anyone reservation can have only one Illov~ment type and one account

assignment . .

What information is in a reservation?

In a reservation information is stored that is relevant for goods issue and for MRP. For
example
;

• What? (Which material?) .4, _

• How much (In which quantity?)

• When? (For which requirement date?)
• From where? (From which plant or warehouse?)
• To where? (To which recipient or customer?)

Structure of the Reservation:

Structure of the Reservation

;;;;s=======.l •
.:::;;
AccoLint Assignment
• Base Date
.Check Calender

(JI rVlaterials
(JI Plant !StrJoc/batch
(JI Requirement date
(JI Movements allo\lved

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A Reservation document consists of a header and at least one item

• The header contains general data about the reservation (creator, movement type,
account assignment).
• The Item describe individual planned movements (material, quantity, requirement
~~ .

• Note: You can create a reservation for exactly one purpose only; i.e. you can enter
only one movement type and one account assignment object(like cost center)

Reservation level:
. '.':':::':,::!:,.
• Reservations are made at plant or storage location level.t:'.:
• For materials handled in batches reservation can also be made at batch level.

'1J ManuaVAutomatic reservations:

Reservations can be created manually or automatically.

SAP supports
• Manual (reservations entered directly by Users)
• Automatic (these are generated by the system automatically)
There are two types of automatic reservations
o Reservations for orders, networks, WBS (Work Breakdown Structures)
elements
o Stock transfer reservations:
• When stock falls the reorder point in a storage location, the system
generates a stock transfer reservation in the plant
Note: You cannot change reservations that were created automatically. If you need to
change the reservation you would have to change the original production order.

Results of the reservation

Stock available
far MRP
Decreases

Reserve stock
increased

I
When a reservation is entered

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• A reservation document, which serves as a proof of the request is created.
• In the material master record, total stock and un-restricted use stock of the
material remain unchanged.
• Reserved stock is increased by the reserved quantity
• In MRP, available stock is reduced by the reserved quantity. This is visible in the
current stock/requirement list. The reservation causes an entry be made in the to
requirements planning file. < .•.

Note: You cannot maintain automatic reservations directly. For example, itishot
possible to change reservations for order directly. You have to chang~ the compoIlp'nts in
the order. The system then updates the reservation automatically.

Displaying the reserved stock:

There are two functions available for displayingreserYtxI ~t()ck
Stock over view at plant level .•. . ...... ! . : ..•••.. •••••

When you use this function, the system dispHlyst~(;:tohilre~efvestock of the material
at plant level. From the stock over view you can seleCt;~.iixironrn.ent ~ to display a list of
the reservations for the material . ...... ..............

Current stock/requirement list:

When you use this function, the system listsalFthe open reservations for the material at
the plant level along the reserved quantiticsfor each.

Settings for reservation:

I Number range ','.lith inter~'al

Default values for mvmt allowed indicator
r---.. I Entrv of Reservation
ICopy rules I• V--.
~I~~~~~~I
~ynamic availability check _ - ---;

IField selection I
Create storage location automatically

Days for movement allowed (1day}

t::> I Reservation Management Program
IRetention period (2days) Requirement date < current date +lday
r..,1ovement a.llowed indicator set

Requirement date < current date - 2davs

Reservation flagged for deletion

You can change the field selection depending on the movement type.

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Warehouse Structure Without WMS

If you are not using the Warehouse Management System, the storage location is the lowest

level of inventory management in the system.

In the Inventory Management (1M) component, the storage location is defined as the location

of physical stock in a plant.

"J

Warehouse Structure With WMS

When you implement the Warehouse Management System (WMS) in a plant, you define the
Individual warehouses as storage types within a warehouse complex and group them together
under a warehouse number.
As a rule, it is not necessary to define several storage locations for a plant since you assign
the WMS warehouse number to a storage location from Inventory Management (1M).

You can also manage stock for several plants in the same warehouse at the same time. In this
case, the same warehouse number is assigned to the storage locations for these plants.

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The warehouse structure in Warehouse Manageinent

. .... . .

WarehQuse (eonlplex) number

"

Warehouse Number
Warehouse number uniquely identifies the warehouse in a plant
Storage Type
A storage type is a storage area, warehouse facility, or a warehouse zone that you define in
Warehouse Management (WM) for a warehouse number.
This is a physical or logical subdivision of a warehouse complex.
--> Bulk storage
--> Open Storage
--> High rack storage
--> Picking area
--> Shelf storage
You can also define storage types in WM that are shared by both the Inventory Management
(1M) and Warehouse Management (WM) application components.
These are called' interim storage areas

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Storage Section
A storage section is an organizational subdivision of a storage type that groups together
storage bins with similar features for the purpose ofputting away stock. The criteria for
grouping bins can be defined on a user-individual basis, for example, heavy parts, bulky
materials, fast-moving items, slow-moving items.

Bin type
;

High bins

Low bins

Low bins
Fast-moving items

Storage 'section

Picking Area
A picking area is a section within a storage type in which all picking activities are carried out
in the same way.
The picking area group's storage bins together from the viewpoint ofpicking strategies and is
a counterpart to the storage section, which group's bins from the viewpoint of put away
strategies.

Storage Bin
A storage type generally contains several storage spaces or slots.

These are called storage bins in Warehouse Management (WM).

The storage bin is the smallest available unit of space in a warehouse.

The storage bin therefore describes the position in the warehouse where the goods are or can

be stored.

Since the address of a storage bin is frequently derived from a coordinate system, a storage

bin is often referred to as a coordinate.

The coordinate 01-02-03 for example, can refer to a storage bin in row 1, stack 2, and level 3.

Creating Storage Bins

You can create one storage bin manually or you can group a range of storage bins with
similar characteristics and define them simultaneously.

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Creating a single storage bin
1. From the SAP Menu, choose Logistics --> Logistics Execution --> Master Data -->
Warehouse --> Storage Bin --> Create -->-->Manually.
2. Enter data as required.

As a minimum, you must enter the storage section for the storage bin.

3. Save your entries.

")
Creating several storage bins simultaneously }
To create a group of storage bins with similar characteristics, you define a template with the
coordinate structure as follows:
1. To display a list of all previously defined templates, from the SAP menu choose Logistics

--> Logistics Execution --> Master Data --> Warehouse --> Storage Bin --> Create -->

Automatically. ..

2. To create a new template, choose New entries.

3. Enter the warehouse number, storage type and current numi?erin the first section of the

screen. For the current number, enter any number. that has notp~~nused previously.

4. In the "Bin definition" section of the screen, enter values to'd¢:fine the template and

coordinates of the storage bins that you want to create.

For more information on how to enter data for defining the storage bin coordinate structure,

see the example.

S. You define the characteristics for all storage bins in the "Additional data" section of the

screen. As a minimum, you must enter a storage section, storage bin type and maximum

weight.

Save the characteristics data.

6. To generate the coordinates, choose Environment --> Create bins.

j

The system displays a screen with the storage bin characteristics and the coordinates of all
the bins that will be generated based on your entries.
7. If the data is incorrect, return to the data entry screen, make the necessary corrections, and

save the data again.

If the data is correct, choose Create online to create the storage bins or Create by batch input

to create the bins later in batch mode.

Example: Creating Several Storage Bins

If you chose to create the storage bins in batch mode, the system returns to the data entry

screen with a message stating that a batch session was created.

Make a note of the batch session name for subsequent processing.

Example: Creating Several Storage Bins .

To create the following series of storage bins (coordinates)
02-1-020 02-2-020 03-1-020 03-2-020
02-1-040 02-2-040 03-1-040 03-2-040
You complete the Bin Definition section of the automatic bin creation screen in the following
manner:

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Storage Bin Coordinate Structure Definition

Bin Definition Entry

Template N
N C N C N N N C C

Structure A
A B C C C

start value 0 2 0
End value 0 4 0
nt 0 2 0

Template ... .
The template field is used to specify the numeric and non.:.numeric characters

o !
from which bin coordinates are built. .

--> N represents a variable numeric value;

--> C represents a constant.

--> A represents ascending alphabetic values.

Note: Two alphabetic variables (2 A's) cannot be entered next to each other.

Structure
The structure field is used to group together the numeric characters (N-values of the

template) into individual variable sections.

These sections are counted by the system.

You must enter the numeric characters in exactly the same positions as the alphabetic

characters in the template.

Start value ...

This data field specifies the storage bin to be created first in a range of storage bins.
End value ....
This data field specifies' the storage bin to be created last in a range of storage bins.
Increment
In this data field, you define the increment for the individual variables (N or A) in the
template.

Quant
This is the stock of any material with the same features in one storage bin. The system

manages different batches of a material as different quants. The quantity of a Quant can be

increased by an addition to existing stock. Quants can be created or deleted solely through

goods movements.

The quants serve to manage stocks at storage bin level.

When you store goods in an empty storage bin in WM, the system automatically creates a

Quant in this bin.

The system automatically assigns a Quant number.

The quant is automatically deleted by the system when the material quantity is picked.

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ASAP Methodology

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ASAP (Accelerated SAP) methodology

Phase I: Project Preparation

• Decision makers define clearly Project objectives and an effective decision making
process.
• Define Project organization and Roles.
• Implementation scope is finalized
• System Landscape and technical requirements are finalized
• Infrastructure (Hardware/Interfaces)
• High level Strategies for client
• Archiving strategy
• Issues of Data bases
• Other issues like
• Unanticipated tasks
• Normal tasks that can not be completed
• External factors that need to be dealt with

Phase II: Blue Print Phase

• Scope of Rl3 implementation is defined.

• Business blue print is created.
o Tools used for this is .
• ASAP Implementation assistant
• Question and Answer Data Base (Q&A dB)
• Business Process Master List (BPML)
• Rl3 Structure Modules
• Business Navigator and External Modeling tools
• Project Management (Activities like ...)
o Conducting Status Meeting for Project Meeting
o Conducting Steering committee meetings
o Addresses the issues like Organizational Change Management
• Other Activities Like
o Project Team Training
o Developing the system environment
o Defining Org Structure
o Define Business Process

Phase III: Realization Phase

• Configuring the Rl3 System

• Defining the Authorizations in Rl3
• Defining the work flow
• Creating Use Documentation
• System manager procedures
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o Developing the System Test plans
o Define the Service level Commitment
o Establishing the System Administration function
o Setting up the Quality Assurance environment

Phase IV: Testing and Final Preparation .,

...
j

• Testing, user Training, System management and Cutover activities

• Test Plan has the activities of:
o Testing the conversion procedures and progr~s
o Total Interface programs
o Volume and Stress testing
o Final User acceptance testing
o Developing a Final Go-Live
• Redirection to Go-Live
• Preparation of End-user document~t!qn
• Training for the End Users . . ....
• Technical environment installationon~roduction syst~ and testing
"\
• Transfer of Legacy data and preparation plan for Go-Live !

Phase V: GO-Live Phase

• Production support facilities are carried out

• Validations. ofBusiness prqcess and their configuration
• Follow up training for End Users
• Sign-Off.

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.j

Important MM Tables

34
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Important MM Tables

Materials: Material Documents:

MARA- Material Master - General Data MKPF - Header Material Document

MARC- Material Master - Coy Segment MSEG - Document Segment material
MARD- Mat. Master - StrIoc/Batch Seg. BSIM - Sec. Index, Docs for materials
MARKT- Material Description
MAPL - Allocation of Task list to Material
MARV- Material Control Record \J
MARM- Unit of Measure
MBEW- Material Valuation
MOFF - Outstanding Material Master Record
MSTA - Material Master Status
MVER - Material Consumption
MVKE- Material Master Sales Data
MAPR - Material Index for Forecast

Purchasing Documents: Bill of Materials:

EKAN - Vendor Address- Purchasing Document MAST Material to BOM Link

EKBE - History of Purchasing Document EQST - Equipments to BOM Link
EKBZ - History of Pur. document - Delivery Costs STKO - BOM Header
EKET - Delivery Schedules STAS - BOMs Item Selections
EKKN - 'Account assignment' in Purchase doc. STPN - BOM Followup control
EKKO - Purchasing docurnent Header STPO - BOM Item
EKPO - Purchasing Document Item STPU - BOM Sub item
EKPB - "MaterialProvided,iItem in Pur. Doc. STST - Standard BOM Link
EKPV - Ship.Specificqata on stock trf for Prod docSTVB-BOM serialization of posting
. . STZU - Permanant BOM Data

Purchasing Infor Record: Vendor Master:

EINA - Purchasing Info Record Gen Data LFAl- Vendor Master (Gen Section)
EINE - Purc. Info Record Pur. org data LFAS -do- (VAT Regd Nos- Gen. Section)
EIPA - Order price History Info Record LFBI - -do- (Company Code)
EIKP - Exportlhnport Header Data LFB5 - -do- (Dunning Data)
EIPO - Export/Import Item Data LFBK - -do- (Bank Details)
KONH - Conditions Header LFCI - -do- (Transaction figures)
KONP - Conditions Item LFC3 - -do- (Spl GIL Transaction figures)
KONM -Conditions(Dimensional Qty Scale)LFMl - -do- record purchasing org data
KONW- Conditions (Dimensional Value Scale)

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SAP MM Tcodes

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SAP MM TCODES

All transaction Tcodes are stored in table TSTC. Transaction Tcodes for MM module start
withM. . "
)
Material Creation

MMO 1 - Create Material MMIl - Creatt! Qperating Supplies

MM02 - Change Material MMN 1 - Create Non-Stock Material
MM03 - Display Material MMUI - € i eate Nbn-Val. Material
MM50 - List Extendable Materials MM60 - List of Material

Services

MMBE - Stock Overview MMS 1- Create SerVice

ME20 SC Stock Monitoring (Vendor) ME2S Services per Purchase Order
ME3S Service List for Contract

Purchase Requisition (PR)

ME51 Create Purchase Requisition ME51 N - Create Purchase Requisition

ME52 Change Purchase Requisition ME52N - Change Purchase Requisition /

ME53 Display Purchase Requisition ME53N - Display Purchase Requisition ,

ME54 - Release Purchase Requisition ME52NB Buyer Approval: Purch. Req. ;
ME55 Collective Release of Purchase Req. ME54N Release Purchase Requisition
ME56 Assign Source to Purchase Req. ME59N Automatic generation ofPOs
ME57 Assign and Process Requisitions ME58 Ordering: Assigned Requisitions
ME59 Automatic Generation of POs

ME5A - PR: List Display ME5J - Purch Requisitions for Project

ME5K - Requisitions by Account Asgmt MELB - PurchTransactions by TrackNo.
ME5F Release Reminder: Purchase. Req ME5R Archived Purchase Requisitions
ME5W Resubmission of Purchase Req. ME97 Archive Purchase Requisitions

ME41 Create Request for Quotation ME42 Change Request for Quotation
ME43 Display Request for Quotation ME44 Maintain RFQ Supplement
ME45 Release RFQ ME4B RFQs by Requirement Tracking Number
ME4C RFQs by Material Group ME4L RFQs by Vendor
ME4M RFQs by Material ME4N RFQs by RFQ Number
ME4S RFQs by Collective Number ME80A Purchasing Reporting: RFQs
ME9A Message Output: RFQs

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Release of Purchase Documents Quotation

CTO 1 - Create Characteristic ME47 Create Quotation

CT02 - Change Characteristic ME48 Display Quotatipn
CT03 - Display Characteristic ME49 Price Comparispn List
CLO1 - Create Class
CL02 - Classes
CL03 - Display Class
CL04 - Delete Class
CL2B - Class Types

Purchasing Info Record

) ME 11 - Create Purchasing Info Record MEat· - Maintain ce List
ME12 - Change Purchasing Info Record MEQ3.- Display~ourceList
ME13 - Display Purchasing Info Record ¥B04 ~Changesto Source List
ME 14 - Changes to Purchasing Info Record ME05 -Generate Source List
ME 15 Flag Purchase Info Rec. f()r peletionME06 ~. Analyze Source List
ME 16 Purchasing Info Recs. for Deletion ME07 - Reorganize Source List
ME 17 - Archive Info Records ME()8 - Send Source List
ME18 - Send Purchasing Info Record MEOM - Source List for Material
MEIA - Archived purchasingInfoRecords MEIB- Re determine Info Record Price
ME 1E QuotationPri.ce History ME 1L Info Records Per Vendor
ME 1M Info Recordsper Material ME 1P Purchase Order Price History
MEl W Info Records Per Material Group ME1X Buyer's Negotiation Sheet for Ven
MEl Y Buyer's Ne~otiations. Slieetfor Mat.

Outline Agreement

ME31 Create Outline Agreement ME32 Change Outline Agreement

ME33 Display Outline Agreement ME34 Maintain Outline Agreement Supplement
ME35 Release Outline Agreement ME3A Transmit. Release Doc Record
ME3B OA per Requirement No. ME3C OAgreements by Material Group
ME3] Outline Agreements per Project ME3K OA by Acct. Assignment
ME3L Outline Agreements per Vendor ME3M Outline Agreements by Material
ME3N Outline Agreements by Agmt No. ME80R Purchasing Reporting: O.Agmts.

Contract

ME308 Send Contracts with Conditions ME31 K Create Contract

ME32K Change Contract ME33K Display Contract
ME34K Maintain Contract Supplement ME35K Release Contract
NIE3P Recalculate Contract Price ME9K Message Output: Contracts

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Scheduling Agreement

ME3tL Create Scheduling Agreement ME32L Change Scheduling Agreement

ME33L Display Scheduling Agreement ME34L Maintain SA Supplement
ME35L Release Scheduling Agreement ME36 Display Agmt Supplement (IR)
ME37 Create Transport Scheduling Agrmt ME38 Maintain SAgreement Schedule
ME39 Display SA Schedule (TEST) ME3R Recalculate SA Price
ME84 Generation of SA Releases ME84A Individual Display of SA Releas ME85
Renumber Schedule Lines ME86 Aggregate Schedule Lines )

Purchase Order

ME2t Create Purchase Order ME2t N Create Purchase Order

ME22 Change Purchase Order ME22N. Change Purchase Order
ME23 Display Purchase Order ME23NDisplay'Purchase Order
ME24 Maintain Purchase Order Supplemynt ME29N Releasepurchase Order
ME25 Create PO with Source DeterminationME2A Monitor Confirmations
ME26 Display PO Supplement (lR) ME27 Create Stock Transport Order
ME28 Release Purchase Order ME2B POs by Requirement Tracking No ME2C
Purchase Orders by Material Group ME2] Purchase Orders for Project
ME2K Purchase. Orders by Account AssgmtME2L Purchase Orders by Vendor
ME2M Purchase Orders by Material ME2N Purchase Orders by PO Number
ME2W Purchase Orders for Supplying Plant ME80F Purchasing Reporting: POs
ME91F Purch Orders: UrginglRemillders ME87 Aggregate PO History
ME9F Message Output: Purchase Orders

Goods Receipt Reservation

MB I C - Other Goods Receipts MB21 - Create Reservation

MB90 - Output Processing for Mat. Documents MB22 - Change Reservation
MBRL - Return DeHveryper Mat. Document MB23 - Display Reservation
MB t C - Other Goods Receipts MB24 - Reservations by Material
MB90 - Output Processing for Mat. Documents MB25 - Reser. by Acct Assignment
MB IB - Transfer Posting
ME2V Goods Receipt Forecast

Physical Inventory

MIBC - ABC Analysis for Cycle Counting MIO 1 - Create Physical Inventory Document
MI02 - Change Physical Inventory Doc MI03 - Display Physical Inventory Doc
MI21 - Print physical inventory document MI04 - Enter Inventory Count with Doc
MI05 - Change Inventory Count MI06 - Display Inventory Count
MI07 - Process List of Differences MI08 - Create List of Differences with Doc.
MI09 - Enter Inventory Count w/o Doc MIlO - Create List of Differences w/o Doc.
MIll - Physical Inventory Doc Recount MI20 - Print List of Differences
I

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Batch determination

MI31 - Batch Input: Create Phys. Inv. Doc.

MI32 - Batch Input: Block Material
MI33 - Batch Input: Freeze Book Inv. Bal
MICN B.Vp PI Docs for Cycle Counting
MIK1 - Batch Input: PI Docs Vendor Cons.
MIQ1 - Batch Input: PI Docs. Project Stock
MI34 - Batch Input: Enter Count
MI35 - Batch Input: Post Zt!fO $tock Bal
MI38 - Batch Input: Count and Differences
MI39 - Batch Input: Documentli11d Count
MI40 - Batch Input: Doc., Count and Diff.
MI37 - Batch Input: Post Differehtes . .

Vendor Evaluation

ME61 Maintain Vendor Evaluation

ME62 DisplayVeIlc!pt Evaluation
ME63 Evaluation of Automatic Sub criteria ME64 EvaluationCDmpanspn
ME65 Evaluation Lists ME6A eharig~stbM~ndoi,pvaluation
ME6B Display Vendor Evaluation for Mat ME6C Vendors wit~84t Evaluation
ME6D Vendors Not Evaluated Since. ·ME6EEvaluation Records w/oWeighting
ME6F Print NfE60VenEvahlation in the Background
ME6H Standard Analysis: Ven Evaluation ME6Z TransportVendor Evaluation Tables

General Analysis

ME80 Purchasing Reporting ME80AN General Analyses (A)

ME80FN General Analyses (F) ME80RN General Analyses (L,K)
ME81 Analysis of Order Values ME8l N Analysis of Order Values
ME82 Archived Purchasing Documents

ME88 Set Agmt. Cum. Qty.lReconcile Date ME91 Purchasing Docs: Urging/Reminding
ME98 Archive Purchasing Documents MEAN Delivery Addresses
ME91A Urge Submission: of Quotations ME92 Monitor Order Acknowledgment
ME92F Monitor Order Acknowledgment ME92K Monitor Order Acknowledgment
ME92L Monitor Order Acknowledgment ME99 Messages from Purchase Orders
ME91E SA Schedules: UrginglRemind. ME9E Message Output: SA Schedules
ME9L Message Output: Scheduling Agreements

Conditions

MEK1 Create Conditions (Purchasing) MEK2 Change Conditions (Purchasing)

MEK3 Display Conditions (Purchasing) MEK31 Condition Maintenance: Change
MEK32 Condition Maintenance: Change MEK33 Condition Maintenance: Change
MEK4 Create Conditions (Purchasing) MEKA Conditions: General Overview
MEKB Conditions by Contract MEKC Conditions by Info Record
MEKD Conditions for Material Group MEKE Conditions for Vendor
MEKF Conditions for Material Type MEKG Conditions for Condition Group

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MEKH Market Price MEKI Conditions for Inco-tenns
MEKJ Conditions for Invoicing Party MEKK Conditions for Vendor Sub-Range
MEKL Price Change: Scheduling Agmts MEKLE Currency Change: SA
MEKP Price Change: Info Records MEKPE Currency Change: Info Records
MEKR Price Change: Contracts NIEKRE Currency Change: Contracts
MEKX Transport Condition Types Purch MEKY Trans Calc. Schema: Mkt. Pro (Pure)
MEKZ Transport Calc. Schemas (Purch) MELB Purchasing Transaction by Track No.

Mass Maintenance

MEMASSIN Mass-Changing of Purchasing Info Records

MEMASSPO Mass Change of Purchase Orders
MEMASSRQ Mass-Changing of Purchasing '''''V'1~~'''~~~
MENU_MIGRATION Menu Migration into
MEPA Order Price Simulation/Price Info
MEPB Price Info/Vendor Negotiations ~
MEPO Purchase Order

Quota Arrangement

MEQ 1 Maintain Quota Arrangement

MEQ3 Display Quota Arrangement
MEQ4 Changes to Quota Arrangement
MEQ6 Analyze Quota Arrangement
MEQ7 Reorganize Quota Arrangement
MEQ8 Monitor Quota Arrangements
MEQB Revise Quota Arrangement
MEQM Quota Arrangement for Material

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Standard Reports in
Material Management

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Standard Reports in Material Management

Purchase Order

ME2L - By Vendor
ME2M - By Material
( to See the Open Purchase orders go to ME2M go to 'Selection parameters' field -by using
F4 (help)select WE 101 and then press execute orF8 button)
ME2C - By Material Group
ME2N - By PO Number
ME80FN - General Analyses
ME20 - SC Stocks per Vendor

Stock

MMBE - for Stock Over View MM60 .~. List Of materials Available Plant wise.
MB53 - Plant Stock Availability MB51 - Material Documents
MB52 - Warehouse Stock MR51· - Accounting Document for Material
MB5B - Stock for Posting Date MBSM - Cancelled Material Documents
MB5T - Stock in Transit
MBLB - Stock with Subcontractor
MB5S - List of GR/IR Balances

Purchasing Info Record Vendor

MEIL Co By Vendor MKVZ - List of Vendor Purchase Org. wise

MEIM - By Material
ME 1W - By Material Group

Vendor Evaluation

ME65 - Ranking lists

ME6B - Evaluations per Material (Material Group)
ME64 - Compare Evaluations

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Extra Topics:
Blanket Purchase Order

37
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Blanket Purchase Orders

In SAP, Blanket Purchase Orders refer to the business process where you have a

• Purchase Order with a validity period (start / end date) and a limit on the item.
• No Goods Receipt takes place.
• Payment is triggered by Invoice. )
Purchase • PR is optional
)
Requisition • No header info in PR

Purchase • Order type = FO /-,

• Item category =B (Limit)
­

Order Ij

• No Goods Receipt

• \JVithin validity pariod in PO

Invoice • Value of all invoices must be less
than Limit in PO )

Payment

Notes:
• Multiple invoices can be processed.
• Main point is that invoices must be processed within the validity period specified in
PO.
• The total value of invoices must also not exceed the limit specified in PO item.
• The validity period is specified on PO Header Level, while the Limit is on Item level.
• The creation of Purchase requisition is Optional.
• Purchase Requisitions doesn't have validity period fields, although the limit can be
specified on item level.
• So if users create PR's then they could type the validity period simply as text in one of
the long text fields.
• During invoicing, if the date is outside validity period or the amount is bigger, either
a Warning or Error will occur. This setting is done in customizing.

Examples on where this business process can be used include:

o Services: example buying flowers, travel.
o Particularly if the receipt process is not very formalized. It is also sometimes
used for utilities (water, electricity... )

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o Look at processes where Financial invoices (no PO) are used. To improve
control, a lot of vendor invoices could be moved to Blanket Order process.

• Lets look at key fields in the Purchase Order

, ............•..........•............................. ··.·····.w····.·····.... • ..•· ··········w···.w......••••••••..............................

Create PurC!li1Se Ortier

1,000.00
Expected value 1 ,000.00
0,88

• The Overall Limit is the value that will be used to in the check during invoicing. If
Commitment is switched on in Costing, the Expected vallie is the value of the
commitment against in this case the Cost Centre.
• The actual will be posted during invoicing.
• Account assignment is mandatory, so this process is non stock purposes only.
• Stock can not be procured using this method (For stock a OR is required).
• Because no Ooods Receipt (OR) will take place, the OR indicator is switched off
when the item category is selected.

Reminder 1 [)

Reminder 2 [)

Reminder 3 0

No,FolI, 0

Plnd delytime 0

Latest GR Date
i!r Incoterms

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Extra Topic:
How to attach a document to
Purchase order document:

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How to add an attachment to a Purchase Order in SAP?

You can attach manually any document to PO without using Document Management System
(DMS) in SAP 4.6C.

Please note that you cannot attach document while you create PO in T/Code ME21N. In
order to achieve this, follow the steps given below:

1. Save your PO (ME21 N)

2 Open with change (ME22N) then you can attach document through SerVice for Object

button.

How To Find Service for Object button:

Service for Object button available down side of Command screen (in your PO screen
ME22N)

Click your Service Object button -> Create - > Create attachment then select your window
directory (which file you need to attach) select your file Now your system shows
message Service "Create attachment" is started.

Save again your PO. You can see (open) your attachment in same field (Service for Object)
select and Create and check attachment list. You can attach as many document in your PO.

Important Note: This is only infonnation for internal or you can print separately this
document for sending tov~ndor(fax) System will not print automatically along PO print out.

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-~
;I ­

~\

Lab Exercises:
Creation of
Organization Structure,

39

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A) Define Organizational Objects

1. Define company
SPRO 7 Enterprise Structure 7 Definition 7 Financial Accounting 7 Define
Company
2. Edit, Copy, Delete, Check Company Code
SPRO 7 Enterprise Structure 7 Definition 7 Financial Accounting 7 Edit,
Copy, Delete, Check Company Code
3. Maintain Controlling Area ,

SPRO 7 Enterprise Structure 7 Definition 7 Contrpl1ipg 7 Main!ain

Controlling Area

4. Define valuation level

SPRO 7 Enterprise Structure 7

Valuation level

5. Define, copy, delete, check plant

SPRO 7 Enterprise Structure 7 Definition 7 Logisti¢s - General 7 Define,
Copy, delete, check plant .
6. Maintain storage location
SPRO 7 Enterprise Structure 7 Definition 7 Materials Management 7 Maintain
storage location
7. Maintain purchasing organization

SPRO 7 Enterprise Structure 7 Definition 7 Materials Management 7

Maintainpufchasing organization

B) Assign Organizational Objects

8. Assign (!()m.pany code to company

SPRO 7' Enterprise Structure 7 Assignment 7 Financial Accounting 7
Assign cotnp<lI1y'¢ode to company
9. Assign company code to controlling area
SPRO 7 Enterprise Structure 7 Assignment 7 Controlling 7 Assign
Company code to controlling area
to. Assign plant to company code
SPRO 7 Enterprise Structure 7 Assignment 7 Logistics - General 7 Assign
Plant to company code
11. Assign purchasing organization to company code
SPRO 7 Enterprise Structure 7 Assignment 7 Materials Management 7
Assign purchasing organization to company code
12. Assign purchasing organization to plant
SPRO 7 Enterprise Structure 7 Assignment 7 Materials Management 7
Assign purchasing organization to plant

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A) Define Organizational Objects

1. Define company

SPRO -7 Enterprise Structure -7 Definition -7 Financial Accounting-7 Define

Company

Click , the following screen will appear

Entries: Details

name
Name of 2

,)

L",ngu<l~~~~y... ................................ ....... .. ..............",,"""",,'........

Currency

-.. 0'

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The Following message will appear

Then Click the following screen will appear enter the Short descripti0113S TATA
Projects

Customizing request

Source client.••.•..........................

status Target
Last changed

Tasks

Click will appear in the status bar then click

The table appears with latest created company

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. . .=
. . .=
:======;;:===== . ,":;:;;:""",:::::::,,""=""=,.="""""" =====,=",.=,..=,._=,.=..".:::::::""'=.==="=,.....=....=.".=..,,.=
..""

2. Edit, Copy, Delete, Check Company Code

SPRO -7 Enterprise Structure -7 Definition -7 Financial Accouriting-7 Edit,
Copy, Delete, Check Company Code

Double Click·

Icopy org,object (F6) J

Click

System triesto read all associated tables

17% 01 associated tables read .. ,

then the following screen will appaer

From Code

Now enter the following

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And click the following screen will appear

code TMOT

ch/accts to the target company code as to the source company code.

Do you want to copylhe GIL account company code data?

Press 'Yes' again the following screen will appear

The reference company code has local currency EUR

If you a!ocate adifferent local currency' to the target company code,

GIL accounts with currency aiR l.IFe also changed.

@ Do you want to allocate aditferent local curr .to target company code?

Press 'Yes' again the following screen will appear

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• In this function both the number range intervals and the addresses are
linked to the automatic recording of customizing changes. This means
that existing number range intervals and addresses for this
organizational units may be handled and transported automatically.

This may cause errors in connection with transports when the number
ranges or address numbers in the target system are already used
Please note the inforrmation that you get when importing the number
\
range intervals for this organizational unit into the target system.
If required, maintain the organizational unit's address data manually.

~l
Press ~' the status shows

Then the following screen will appear

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Click for different messages until you get the following message

@Information

o ~~~e~~x-~~~~J.~~~_~~p!~~-J~-JM§t~~~~~J~_~~t.l!¥~~1
~~»»~.~-~

range objects
.• "-.~~--~~-.'-~--«-.

o
Press." The following screen will appear •. '.'

Click

Click the Completed Activity tab as shown above

Organizational object Company code

IActions carried out

!company Code 1000 copied to TMOT

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Click

'")
Then Click [II-~·~·po~~o;;::---.] and enter Company code as TMOT

I~~nottler~!r,x,
.<?g~p<lny.<??~.~ . . . . . . . . . . . . . . . . . E~~O!I~

Select TMOT Company code

pany 00
, w " _ v " v . > y •• vv~ . . . ~.~'u .. u u

~'
And Click Details;~' Button

The following Screen will appear.

- __-.J' _

..........................................

Now Edit as under

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Company Code
..................... .•.. •.............. ··········..·············:""CCC,'C"...................................
. .........

Company ................................................L
Name ..... ~ ........... __ ...~ •. __•• __._ •.....•.........•

.' :.: .. ::.. .,'

And click address Icon ... The following screenwillappear

.~egion

Now edit the same and under

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"'
)

i~ •
And click :«' then click save icon.

Request «« ««« ««««««««««<.<.«.<....==.Ijcustomizin g request

,... ..
~ ~,.'N,.",,,""'~' ~~"'~,',".,,~"'.,""'.,.'"""'_ ....."''''.. .....
~, ·~"". ___ ~N~_"~~'. __... .,_~ ... _ .

Short Description

And press then status shows as

Data was saved

- and then click and . IE
then clIck: , .,

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3. Maintain Controlling Area
SPRO ~ Enterprise Structure ~ Definition ~ Controlling ~ Maintain
Controlling Area

Now click li~~==,,,,U

Then click ~",,,,,,,,CO_A,,,,,re,,,,a,,,,,=,,,,C,,,,,c=o=d=e~

__ and enter Cqmpany

click LThe following ScreeIl will be appeared

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Now edit the following fields

Controlling Area .......... [iMoilf COArea = ccodewl

8
r:;J
L........!

Name

CoCd-"CO Area Controlling area same as company code

'\

.[~~~t~;!;~t;;~~:>~'~~- . . . . . n.~]

Currency ITNR····j
_.~~~~,~~"" .. "'~~~~~'"~.'"'N".' __ '~ ..___ ~~_~~_~~ .. ~~" ..... ,,,......... ,,.,... J

Company code currency

Indian Rupee

E91~~f§~ttfn~J~;7-·--·---······-- ­
Chart of Accts Chart of accounts - international

Fiscal Year Variant Calendar year, 4 spec. periods

!····SettingioFAuthorizationHierarchiesforCosiCenters:> . .
• ..
~ "",,~, .. , ·""'''''_'~·''·'·'''''·_N'_''' __
~_'''''''' .,. "~""""'V •• , ••••••, •••• ~ ••••••• _ . , •• "

Do Not Use Std Hier. D Alternative Hierarchy1

D
Alternative Hierarchy2
D
j

Andclick~'

[8/

View Cluster C,o,REM1,o, I ~JT

Press L.'!:J .and

r;Jl ~
~

'rt-Th Tx I
Click ''9; and pressL--J

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4. Define valuation level
SPRO ~ Enterprise Structure ~ Definition ~ Logistics - General ~ Define
Valuation level
The following screen will appear

The valuation area cannot be maintained (already

" " , " ' , " " " " " " " " " " ' . " '.. " •............•...................

Note: . .
1) In this step we don't do anything. He,re we will come to know that the
valuation level is set to plant level by SAP itself (SAP recommends setting
material valuation at plant level.)
2) In case of you need to set at company code level, you have to approach for
change with reasons
Important note:
1) Once set, it is not possible to switch the valuation level from plant to
company code, or vice versa.

5. Define, copy, delete, check plant

SPRO ~ Enterprise Structure ~ Definition ~ Logistics - General ~ Define,
Co y, delete, check Iant
~~~~~
.........~_~"_,~.,~"~~.~s~~~~

Douhle click "","»"",.,"

, delete,
ne plant for cross· system goods flow

System Shows List of Plants

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Click' r'N~-;'E~t~~~J The following empty fonnat will appear

information
Language Key
'"'N' ."'M'~""".~"" •. ,~.,".,."~,~.,",_".".,,,.,,, ,. ·····r ,.c;;;; .•••••......_ .•..•...••

House number/street
PO Box
Postal Code
City ....... _...,........................,..
............,.., +";.;~;;.".,, .....,........."' .. ...._..,.........._....,...... ~.~l

'J

Tax Jurisdiction

Fill the following fields as under

PIant ....... Jf~~1I~)

Name " ITATA Plant 1

'''~~''V'~_'=M~'~~''~o,~·, ,~·="'·,~,~v·,·,·~ .. ·,~"""v~· V" '~N ,~, =,~,=~~=v~,

Name............................
2

:(Manufacturing Unit)

!.~~~~j'.e~.)~!~·r~~ti~~)7 . . "...,. ,., .............,.

I~~~~LJ~~~. ~~.L..,".......
House number/street ..~.t:;c;;;::~.cc;;; •......'........ - •.....•.....•...•.'.',.,..•...•,..1

City code
i
Ta~ ~uEi.s.?i~!ion ..............,.. ."....,t......,..., ........................................!

~~st?ry~~I~~?~r.. ...j'~Ti Factory calendarGermany standard

Now click ;~ Address Icon and fill the fields as under

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Extension

Request fD~18K9EI88i'8
J.
..
~--- -.-."~"""".""~""", ."""

Short Description

[~ then status bar show as

And press ."'. <......:::...................................................................................

Repeat the step for plant 2

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Plant
Name1

Name 2

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6. Maintain stora:ge location

SPRO -7 Enterprise Structure -7 Definition -7 Materials Management -7
Maintain storage location

Enter Plant

Work Area
Plant iT~~~I~

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;

.~
J
Storage locations
··DAddress"es"()fstoragl

!... ..

request

Own Requests

then status bar will show this message ·····································then press

twotim~s.
Re eat the same for the TPL2 also

WorkArea
Plant

Furttler select cond.

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re
Storage locations
i5Ad'd'resse~--~isioragi

7. Maintain purchasing organization ..........

SPRO ~ Enterprise Structure ~ Definitigh
f) Maintain purchasing organization
)
System shows list of PurchasingOrg;:

8888
...................................................... ""'"

1
1888
2

and enter the following information

r"
i

Click

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"lK,f!E_r:!}E!!9.,~,f$~~!,~~t"Q!zingE~g,~~~t~~"~"'~"'N"'~"~_",N""~'~""~_~'" _ _ _ _~'~W' "w,~J2J
View Maintenance:
'.

f"""""·...'·'... •." '••'"

'\I
::::~custorniZing request
-_""~N_'

Request iDMOK900070
•••••••••••••••••••••••••••••••• ___ ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• ••• h ••••••••••••••••••••••••••••••••••••••••••• _••••• _ ,_, ••• __ •••••• _•••••••••••••••
i""yy""""Y~NNYN~AW~_~y __ ·NN·'·m~···'YNY·'~' , ",,"'Y"W'Y~~"Y"h'mcY~"~NN

Short Description iTATA Project

L,w~, .....""'~~_._w ." • .,..., ... "'\,
/

')
Press ,then click C / two times.
,-\
/

B) Assign Organizational Objects

8. Assign company code to company - '"1
7

SPRO -7 Enterprise Structure -7 Assignment -7 Financial Accounting -7

Assign company code to company . :~
Click [~'N--·'-p~·~iti~~:~-·--ww-I then enter --;­
.~~~,£,!,~,~!~ nt!Y~, .. ",W'W_~ ..w.gJ,/ ~
S:?I"r1P~~yCod~ . ................Jf~l~~!I~

Enter Company

- ___-1 ~

View Maintenance:

Request
Short Description

T;?l :;/iiil

PressL!:J: then click f~l

9. Assign company code to controlling area

SPRO -7 Enterprise Structure -7 Assignment-7 Controlling -7 Assign
Company code to controlling area
Click [!5I Position... I then enter

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.~ \

Select this row

Now
Then double click left side

-_... AP,S.i~~"';.Of.C.OrrJP.•.ny.,-o.

Double click this

folder

Click [!:le'WEnt~i~~] [ and enter the company code and press enter

iTt-lOTI
L ..... ,•..•".l

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10. Assign plant to company code
SPRO ~ Enterprise Structure ~ Assignment ~ Logistics - General ~ Assign
Plant to company code
· k 'G;E~t~i~~]
CI IC d h d d I . C •
··.d'. ....• .', an enter t e company co e an pants llliormatlon.
.4Srr....

Then press enter.

. ~' ,
Then chck> )

View Maintenance: K_,~SSIGN

....................................................................................................L................................................. .

Request

Short Description

Press [;2'] then click ~ 2 times

11. Assign purchasing organization to company code

SPRO ~ Enterprise Structure ~ Assignment ~ Materials Management ~
Assign purchasing organization to company code
Click ~-----Po~-~~---~J enter the Purchase Organization
C?";\~o~her e':lttt . J2J .'
_~~!_c.~_~~~~ . ~Q.:.________lfl:~L@)

S 'EnterCompanycocle'
here

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Then chck.,
. '9
..._..................__.__.._ ....._.....__....._,..-..,._..".m_."._..m._.._... ~m._._ ..,_......

View
....
Maintenance:
. ,......
.. ,,'"
Oats
...... 1
",."
V_T824E_ASS
...... """ ", '"
I GN .. ........ .. .. ........ ..
.... . . ... ... .... ..
''',."."'''',,., " "" ".""" " "." " ".,.,." ".""."" "" "." ,, , " ...... "'" .......

/ '\
j

, '\
)
Press Gd· then click,Q"
12. Assign purchasing organization to plant
SPRO -7 Enterprise Structure -7 Assignment -7 MaterialsMartagement -7
Assign purchasing organization to plant
f""""'j
/

. rr'---'--~~
New Entries .
Chck _. . .. ~ enter the Purchase organd plants as under

G
[1
l_J

Then click'·(~f
... ~

View Maintenance:

Now so far total Organizational Objects/Units have been defined and assigned.

How to see the Organization Structure

Tcode: ECOI
Clcik f!t~8t=r~':::""c-tu--'r~-'I' and then clicktl~,.NaVig~ti~nJ then Press f~Y for the message.
List of company codes will be displayed

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'~1Jfi'~it11~iRm~1[~)QhJ~,~i.
:IIlL·

G:l gQ!ilm~l~i;~@cl~§~~jf.~t:!~

All Obj ects

Find _............................

o Starting at current line

o Only on current page
Cancel search after hits:

N!. of hits:

~TMOT TATA "otors Ltd

Double Clcik this

Double click

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System Shows the TMOT Company code and its Organization structure
ijj'tAmitl
uwtiit~
I £:l ~ Company
. L~

£:l ~ Controlling area

LGl
£:l ~ Credit control area
Lg;J.
£:l ~ Pl ant

~
£:l ~ Purch, Organization
L!tJJ

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I

~\
j

Lab Exercises: \.
Material Master

IMG settings & Creation

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SAP-MM (Material Management)
Master Data - Material Master
IMG Settings in Material Master

1. Define Output Format of Material Numbers

SPRO-? Logistics - General -? Material Master -? Basic Settings -? Define Output
Fonnat of Material Numbers
2. Maintain Company Codes for Materials Management
SPRO-? Logistics - General -? Material Master -? Basic Settings -? Maintain
Company Codes for Materials Management
3. Define Attributes of Material Types
SPRO-? Logistics - General -? Material Master -?Ba§ic Settings -? Material Types
-? Define Attributes of Material Types
4. Define Number Ranges for Each Material Type .. .
SPRO-? Logistics - General -? MaterialMaster ~"Basic Settirigs-? Material Types
-? Define Number Ranges for Each, .Matenal Type,r
5. Define Material Groups
SPRO-? Logistics - General 7 Material Master -? Settings for Key Fields -? Define
Material Groups
6. Create Purchasing Groups
SPRO -? Materials Management -? Purchasing -? Create Purchasing Groups

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LAB Exercise:
1. Define Output Format of Material Numbers
SPRO-7 Logistics - General -7 Material Master -7 Basic Settings -7 Define Output
Fonnat of Material Numbers
-::I>nE'tJI:II View l!IMaterlal Number Format":

Lexicographical·

Note:
1. Inthis step you can change the length of the number. Maximum length
provided by SAP is 18
2. Indicator for Lexicographical

Defiqes the way numeric material nwnbers are stored in the database.

a. If this indicator is not set, numeric material numbers are padded with
leading zeros and stored right-justified [Material numbers containing
at least one nonnumeric character are stored left-justified]
1. Example: if the Internally/externally assigned number
If the number is 123
The stored number is 000000000000000123

b. If this indicator is set, and if the material number (numeric or not

purely numeric) was assigned externally, it is stored left-justified as
entered.
i. Externally assigned number: 123
Stored number: 123
ii. If the material number (numeric only) was assigned internally,
it is padded with leading zeros to the defined length and stored
left justified

3. Indicator for leading zeros

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You can specify whether a numeric material number is to be shown with
leading zeros to fill up its defined length.

IIn general we don't do any Il\1G settings here I

2. Maintain Company Codes for Materials Management
SPRO~ Logistics - General ~ Material Master ~ Basic Settings ~ Maintain
Company Codes for Materials Management
[In this step:
1. To create a material master record, the control record must exist and set up the
current period for your company code here.
2. To initialize company codes during produc:tive OPeriition, you have to use the
period closing program.] .... ...

Click arid enter

I~AnotheLe,n!!X",c,'~",~~~~""~~"",,, N~.[~L,'/
~o,!:p~~y~o~e

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OT rt~IA.-f~_(jf~~~.I@
88 :Company 00
R81 ;Company 01

Note: See that ABP(Allow Back Posting) check box checked

Click

3. Define Attributes of Material Types

[Material Type: Materials are categorized based on its attributeslPurpose is called
Material Type
Whenever you create a material master record, you must assign it to a material type.
This requires you to first define the attributes of each material type
Standard SAP Material Types are:
Raw Material - ROH

Semi -finished product HALB

Finished Product - FERT

Trading goods -HAWA...

Like this around 30 material types have been defined by the SAP. You can copy of
this standard material types with your own name and try to use the same for creation
of materials]

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SPRO~ Logistics - General ~ Material Master ~ Basic Settings ~ Material Types
~ Define Attributes of Material Types
The Following screen will appear:

View IIMaterial types l' :

"c=,"""""~-~'-""~'~~""=~"C'::~'" ","::'~~'="'C"'"

"I

.. iCH Contract Handling

•• M.M.hk~ •• ".J ,,,,."'.w""_""_"",,_·",m,,
• ,.,,,,,,,,,,,~ .. ,,,,,.• ~.""~.,.,

Cm1P jProd. alloc., purchased

Entry 1 of 54

and enter

. . . . . . . . JR.gB~~)

Press for continue and now do as under:

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View '·Material types llll
: Overview

''I
.j

'\

click 'copy as'

button

~"
; }

.~:p.lant mati status

lIem
Authorization 1?1 With Oty Stru cture
o External no" assignmentwlo check o Initial Status

D Material is configurable
o Material f. process
o Pipeline mandatOfY
o Manufacturer part

Now change the name and description of the material type as under:

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Change View "Material types": Details of
~--~~~~~~~~~~~~~~~~~~~

mati status
/ "
j Item~.~t~gorygroup
~ With Qty structure
o Initial Status

the status bar shows as under:

Now do the following

Change

, Material types

7,""i~~;,ti

then double
Click this
rolder

Click I~ Position.. =:J and enter

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Va-liiaf(onAr-ea~
... ..............,.,.. ... ..,.... ;
:"",~,,, ~ ,,,,,,..~ ......................_........

Material Type
......................... .......
_

Now check the check QoxofQty and Value update columns ofTPLI and TPL2

rn[B
"@1
Then click i " ;

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r····························· ...............•...................................•...................- .•.•............••...... .........,

View Cluster Maintenanl MT ART

.............L"" ..

Request . . .rp~~~~o~~~·~::. "':~"(€)

,,~·,~··'·~=NA·.·~' ~,,~·'v,·· •• ··"H>~~~~A·A·¥'·'
Customizing re que st
__ "'·~~'_.A·"NN'W_""·~"y_·~"~~N.""H_~AWN~._~~"NY~NNH'"N'~
···~,·~~NV~»"~H~NN""_V'

Short Description

Own Requests

the status bar states that the data has been saved

Then press
.,

;
4. Define Number Ranges for Each Material Type (MMNR)

SPRO-7 Logistics - General -7 Material Master -7 Basic Settings -7 Material Types

r~
-7 Define Number Ranges for Each Material Type
)

[In this step, you define the type of number assignment and the number range

intervals for material master records.

When creating a material master record, you must assign it a unique number. There

are two ways of doing this:

1. Internal number assignment

• Number within the number range interval allowed is assigned by the SAP
system.
2. External number assignment
• The user assigns a number within the number range interval allowed .
•., You can define the intervals for external number assignment numerically and
alphanumerically.
Note:
1. You defIne the number range intervals for so-called groups. You assign one or
more material types to each group.
2. SAP recommends using internal number assignment]
The Following Screen will appear:
Material Master Number Ranges

Intetvals-.-J Status

· k il ;"'c,roupsJ,
Now C1IC, ~ 11'
"••. , . . ! ... ,. b utton an d d 0 th e 10 . th e next screen on menu
owmg step m
bar I

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Eumber range obj ect Mater; a1 master

GrolJpi ng

]Groupl

name and number

)
888888888899999999
,A ZZZZZZZZ

insert (enter) button

The group will be created with the entered number range and it will appear in the
bottom of the page.
D Group wi thout text

D Group without text

D TAT A Raw ~lat No Group

Now find the TROH material type by using the ' . button

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Find

~ Startingat current line

Only on current page

button in the box

Nr!1. of hits:
TROH TATA~ .,terial

Double click this line

System will position the cursor on TROH TATA Raw Material

Now do the f21!owing" ,

PLM PLM Minimal Material Type

PROC Process material

PROD Product group

ROH Raw materi al ?;.,

TROH TAOA Raw mater; al Double click this line or

this button
UNBy! Non -val uated mater; al

IIERP Packaging

The color of !h~ line i~. going t? change into blue as under

PLM PLM Minimal Material Type

PROC Process material

PROD Product group

ROH Raw material ~

TROH TATA Raw materiaD

UNBW Non-valuated material

IIERP Packaging
. .
....... - ......
Now check the check box ofTATA Raw mat no range group as under
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D Group \yi thout text

R! TP,H Raw f1at No Range Gr'oup

then
button .~
,J ­
Then the TROH mat type will be assigned to this group
D Group without text
D Group without text
~ TAH Ravi fiat No Range Gr'oup

TROH TATA Raw material

Now save this step by clicking the save button.

Immediately system will show the following message·'

Stating the data is going to be saving in the data base, however the customizing

setting has to get manually.

'

I j

The number range intervals are not included in automatic recording of

customizing changes. Transport of all the changes made within number

range interval maintenance must be triggered manually.

In the initial screen for number range interval maintenance choose the

functi on Interval -:> Transport.

Please note the information that you get when transporting number range

interval s.

In order to get the customizing request manually do the following method:

Go to the initial screen of the number range (or click back arrow button) then on
Menu bar select Intervals and click the Transport
Press enter button your customizing request prompt will appear
Select you project by clicking 'Own request' and press enter.

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5. Define Material Groups
SPRO-7 Logistics - General -7 Material Master -7 Settings for Key Fields -7 Defme
Material Groups
[Materials can be categorized based on its propertiesjs called Material Groups]
; Now click 'New Entries' and empty screen will appear as under
Now enter the following data
Purch. Org Description
TPO T ATA Purch. Org

Then Click Save button.

6. Create Purchasing Groups

SPRO -7 Materials Management -7 Purchasing -7 Create Purchasing Groups
[A purchasing group can be an individual or a group of individuals.]
System shows a list of purchasing groups.
. n;~~;E;~t;i~~mf; ..
ClIck m""_*"*h:",...• The followmg screen wIll appear: .
Entries: Overview of Added Entries

Enter new Purchasing Group with description.

New Entries: Overview

.~ P!2[!el~L£~!!ll~J!lg,E~quest__ .~_.. ~.m,• ••.•. _ ... _.~~.~~~~m. ._ __~~_,~.~_""~~'·

.Yiew Mair.!~~!:!~~E~:P~.t~[~~~i~=....·.... ·

Request request
Short Description

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Errors List:
Common Errors &
Solutions

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ERRORS List

Common Errors while you are practicing with solutions

" '
1. Account assignment mandatory for material3000001QO (enter acc.
ass. cat.)
2. Control indicators for controlling area HMOT donot exist
3. Source not included in list despite source listrequirement
4. Field selection for movement type 5611 accf399999 differs for Ext.
GA amount in LC (023)
5. For object RF_BELEG SMOT, number rangeinterval 49 does not
exists FBNl
6. Posting period 008 2010 is ~~top~:n .... . . .
Period 008 of fiscal year 20fOis n()topenfo~posting for the variant
of posting period 1000.
7. Number range for trans./event type IB in year 2010 does not exist
8. Enter rate EURJINRrate type M for 16.12.2010 in the system
settings
9. Country IN does not store ~ hard currency
10.Companycode not assigned to country or country to calculation
procedure

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Error: 1

Account assignment mandatory for material 300000100 (enter acc. ass. cat.) .---,

j ­

Solution:

SPRO --> Logistics - General --> Material Master --> Basic Settings -->
Material Types --> Define Attributes of Material Types (or TCode: OJv1:S2)

Do the following steps:

I. Click Position and enter Material type (say HROfl) . )

II. Now select HROH and D. Click Left side folder "Quant1tylyalue updating"
III. Again Click position and enter Valuation area (Blant) ~&HJ>I:,1
IV. Check the check boxes of quantityaIld value cohinms.ofHPLl and HPL2
V. Click Save and come back . . . .. /~
.j

Error: 2

Control indicators for controlling area )IMOT do not exist

Solution:

SPRO -7 Controlling -7 GeneralControlling -7 Organization -7 Maintain

Controlling Area~

Click again -7 Maintain Controlling Area (or TCode: OKKP)

Do the following steps:

I. Click Position and enter Controlling area = HMOT

11. Now Select HMOT controlling Area and double click left side folder "Activate

components/control indicators"

111. Click new entries

IV. And enter the following fields:

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Cost Centers
OM: Activity Type
Ord.er~"na.\l.~rnE!r1t.
Commit. M,m:>n'''l'l"nt
I"rofltAcn.al~i~

f\~I)r~~~~e~

o Proll! Center Attig

DProjects
~ Sales Orders OW. Commit. MQt
~ Cost Objects
o Real Estate ~4gmt

Click Save and corne back

Error: 3
Source not included in list despite sourcelist requirement

1. Check IMG settings

SPRO -7 MM -7 Purchasing -7 Source List -7 Define SL Requirement at Plant
Level
Click position anq: ehter plant as: wpll
Check whether wpll -7 source list is checked or not?
II. MM02 -7 Purchase view -7
Check the source list check box
III. Maintain SL (TCode = MEOl)

Error: 4
Field selection for movement type 5611 acct 399999 differs for Ext. GA amount in LC
(023)

Solution:
TCode: FSOO enter your company code in Left side by clicking [ ~ then press find button of
I
the left side1001 and enter the account number 399999 and press enter.
In the right side screen, click Createlbanklinterest tab
1. Check Post automatically only
II. Enter 'Field status group' as G006 Material accounts

Click Save

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Error: 5

For object RF_BELEG SMOT, number range interval 49 does not exists FBN1

Solution: TCode: FBN1

Enter company code: SMOT

Maintain Number range for 49 for the year 2010

Error: 6

Posting period 008 2010 is not open

Period 008 of fiscal year 2010 is not open for posting for the'vtlriant of posting period

1000. . .

Solution: TCode OB52

Screen shot is showing the status as under:

Now change the same· as under:

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Error: 7
Number range for trans.levent type IB in year 2010 does not exist

Solution:
Execute TCode: OMBT

Error 8
Enter rate EUR / INR rate type M for 16.12.2010 in the system settings

Solution: TCode: OB08

Error: 9
Country IN does not store a hard currency

Solution: TCode: OYOI

Select our country and enter the h<;l[d-~•• ~",,-

Error: 10
Company code not assigned to couutry or country to calculation procedure

Solution:
SPRO~ Financial Accounting ~General settings in financial accounting~ Tax on
sales and Purchases~ Basic settings~ Assign country to calculation procedure

Click Position, Enter Country IN and enter T AXUS against IN and save it.
(In case if you have already your calculation procedure you can assign the same.

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i/

SAP MM Question Bank

With Answers, and Explanations

42

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SAP MM Questions, Answers, and Explanations

Part I: C onceptual Questions

Question 1: What MRP procedures are available in MM-CBP (Consumption Based Planning)?
A: Various material planning methods are used in MRP (Material Requirements Planning) Reorder
" ~ point procedure (VM) Forecast-based planning (VV) Time-Phased materials planning (PD) These
are specified in material creation (MMOl) under the MRP 1 tab.

Question 2: Under what conditions are "planned orders" created? What may-planned orders
are converted to and how is that conversion accomplished?

A: Planned orders are always created when the system creates an inteiTIal procurement proposal. In
the case of vendor procurement, the MRP Controller may create a pl~ed order or directly create a
PRo The next step for a planned order is to be converted to a PR so it goes to purchasing and is to
eventually become a PO. A planned order can be converted to a PR using transaction code
MDl4. .

Question 3: What are the organizational levels of the Enterprise Structure in RJ3?

A: The top level of the organizational plan is the Client, followed by Company Code, which
represents a unit with its own accounting, balance, P&L, and possibly identity (subsidiary). The next
level down is Plant, an operational unit within a company (HQ, Assembly Plant, Call Center, etc.).
The Purchasing Organization is the legally responsibly group for external transactions. This group is
further subdivided into Purchasing Groups.

Question 4: What are the different ways to organize purchasing organizations?

A: A Purchasing Organization may be responsible for mUltiple plants and this is referred to as
"Distributed Purchasing". On the other hand, "Centralized Purchasing" features one Purchasing
Organization per Plant. A Purchasing Organization doesn't necessarily need to be assigned to a
Company Code. This would enable procurement for every company code as long as buyers are
acting for an individual Plant, and. that Plant is assigned to the Purchasing Organization. Hence, a
plant may be assigned to more than one Purchasing Organization.

Question 5: What are "Special Stocks"?

A: Special Stocks are stocks that are accounted for but are not owned by the client, or are not stored
at a regular facility. Consignment, sales order, and project stock are examples.

Question 6: What are some of the options available to transfer materials from one plant to
another?
A: Although it is possible to transfer materials from one plant to another without a Stock Transport
Order, many advantages are lost including entering a vendor number, planning a goods receipt in the
receiving plant, monitoring process from PO history, and the ability to create STO directly from a
MRPPR.

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Question 7: What are some of the common Stock Transport Order Movement Types?
A: One-step transfers of materials can be posted using MT 301. Other various transport scenarios
differ in the MTs by the Goods Issues and Good Receipts. Common Goods Issues may use MTs 303,
351, 641, or 643 in the STO. A STOs Good Receipt often uses MT 101.
\
Question 8: What is the difference between a Purchase Order and a Purchase Requisition? j

A: A Purchase Requisition is a document type that gives notification of a need· for materials or
services. A Purchase Order is a document type that is a formal request for materials orservices from
an outside vendor or plant. Procurement types may be defined at the line itemartd can be standard,
subcontracting, consignment, stock transfer, or an external service. '.',',

Question 9: What is an "indirectly created" Purchase Requisition?

A: An indirectly created Purchase Requisition has been initiated by CBP, the PS Project System, PM
Maintenance, and Service Management, or PP Proguction Planning arid Control. The "directly
created" Purchase Requisition, on the other hand, is creat~d by a'person manually in the requesting
department specifying what materials/services, units, and a delivery date. '

Question 10: What is an RFQ and how lsit different from the Quotation Form? '\
j
A: A RFQ is a purchasing document and an invitation to a vender(s) for quotation regarding needed
materials or services. If multiple an RFQ is sent to multiple vendors, the system can automatically
determine the best quote and send rejection letters in response to all others. The RFQ and the
Quotation Form are one in the same in the system as vendor's quotes are entered directly in the
RFQ.

Question 11: What are the transactions that will result in a change of stock?
A: A Goods Receipt is a posting acknowledging the arrival of materials from a vendor or
production, which results in an increase in warehouse stock, a Goods Issue which results in a
reduction in stock, or a Stock Transferrnoving materials from one location to another.

Question 12: When wouhl,it be prudent to post goods movements via the Shipping
Application?
A: If picking, packing, and transportation operations need to be planned in detail. Also, in shipping,
you can manage movements like returns from customers, vendors, and returns to stock. Movement
Types in shipping start with a 6.

Question 13: What is a Reservation?

A: A Reservation is a document used to make sure that the warehouse keeps a certain amount of a
material or materials ready for transfer at a later date. It contains information on what, quantity,
when, where from and to. Reservations help effective procurement by utilizing the MRP system to
avoid out of/lack of stock situations.

Question 14: Can you manually generate a Purchase Requisition referencing a Purchase Order
or a Scheduling Agreement?
A: A Purchase Requisition cannot be created with reference to either of these, as they are documents
I

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controlled by the purchasing organizations. Requirements can be automatically generated with MRP
that reference a Scheduling Agreement if the source list is maintained for item-vendor combination.

Question 15: How is GRlIR account related to Inventory? _

A: If you are involved with inventory, then you need the GRJIR account (Inventory Account) when
the IR is posted. If you are not involved about inventory, then the system do~snotneed the GRJIR
account when the IR is posted; the system needs a GIL instead of the GRJIRacc:ount.

Question 16: How do planned and unplanned consumption affect Movement Types?
A: In a customized Movement Type, you have defined which cons:umption value gets posted in the
movement. Many will always be planned or unplanned, but for some'~here is a depencJ,ency on if the
movement references a reservation. This would be planned consumptio#. i ....

Question 17: What are Departmental Views?

A: All functional areas of the system use the same material master dat:;l.The m?terial master data is
defined in individual screens (departmental views) that can be add~d asneeded. Thus a material can
be created with only basic data and other departments can add other information later as it becomes
available.

Question 18: Is Material Data valid for all organizational levels?

A: Control of master data depends largely on how each company sets up its Organizational levels
centralized or decentralized. Some material data is valid for all organizational levels while other data
is valid only at certain levels. (I.e.: client, plant, sales org., etc.).

Question 19: Why would you want to create physical inventory sheets to perform an inventory
cycle-count on a material or materials?
A: For a cycle countingprpcedure, physical inventory documents need to be created. These are used
to record inventory levels of the material being cycle counted. Use transaction MICN. Click on the
Execute button. On screen "Batch Input: Create Physical Inventory Documents for Cycle Counting",
perform the following, Click on the Generate Session button and Click on the Process Session
button. This procedure details how to create the physical inventory documents for cycle counting in
a batch, rather than one at a time, based on certain criteria. This would print physical inventory
documents for all materiallbatches that meet those requirements.

Question 20: What is the difference between a Blanket Purchase Order and the Framework
Order?
A: In general, the Blanket POs are used for consumable materials such as office paper with a short
text, with item category B. There need not be a corresponding master record, for the simplicity of the
procurement. The FO, Framework Order, document type is used. Here, the PO validity period as
well as the limits are to be mentioned. The GR, or Service Entry for the PO is not necessary in the
case of Blanket POs. One need not mention the account assignment category during creation of the
PO. It can be U, or unknown and be changed at the time ofIR.

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Question 21: What is Release Procedure?
A: Release Procedure is approving certain documents like PRs or POs by criteria defined in the
configuration. It is sensible to define separate release procedures for different groups of materials for
which different departments are responsible, and to define separate procedures for investment goods
and consumption goods.

Question 22: If you have a multi-line item PO, can you release the PO item by itell1?
A: No, a PO is released at the header level meaning a total release or "With Classifica.tion". PRs, on
the other hand, have two release procedures possible. "With Classification;' ~ described above, and
"Without Classification" where it is only possible to release the PRitem by item.

Question 23: What is a Material Type? .

A: A Material Type describes the characteristics of a material thatwe important in regards to
Accounting and Inventory Management. A material is assigned a type!Wh¢ny()u create the material
master record. "Raw Materials", "Finished Products""attd"Serili-Fihl$hedP'rQducts" are examples.
In the standard MM module, the Material Type ofROH!'<lemotes an~xf~tIl*lly pro,c.ured material, and
FERT indicates that the relevant material is produ.cedin-house. ..' ..

Question 24: What is a price comparison?

A: Perform a price comparison using ME49 and one may compare quotations from different
vendors.

Question 25: What is a Source List?

A: The Source List identifies preferred sources of supply for certain materials. If it's been j

maintained, it will ID both the source of supply and the time period. The Source List facilitates
gaining a fixed source of supply, blocked source of supply, and/or helps us to select the proffered
source during the source detenni l1 ation process.

Question 26: What are the various "steps" in the MM Cycle from material creation through
invoice?
A: The following creates aro,,!gh picture of the MM Cycle. Create material, create vendor, assign
material to vendor, procure raw material through PR, locate vendor for certain material, processing
GR, goods issue, and invoice verification.

Question 27: Give some examples of the information relating to a material's

storage/warehousing?
A: Some examples are Unit of Issue, Storage Conditions, Packaging Dimensions, Gross Weight,
Volume, and Hazardous Materials Number. Also, there are various Storage Strategies information
and options.

Question 28: What are the various features of Consignment Stocks?

A: Consignment Stocks remain the legal property of the Vendor until the organization withdraws the
material from the consignment stores. The invoice can be due at set periods of time, for example
monthly, and it is also a configuration possibility that the organization will take ownership of the
stock after a certain period of time. Consignment Stock is allocated to the available stock because
the Consignment Stock is managed under the same material number as your company's stock. The

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most important characteristic of Consignment Stock is that it isn't valuated. When the material is
withdrawn, it is valuated at the price of the respective vendor. Before procuring the stock,
consideration should be given if one consignment is corning from multiple vendors. If so, we can
\
manage all of them independently at the price of the individual vendors. In the Info Record, we will
;
maintain three different prices for the same material for three different vendors.

Question 29: What is a Quotation?

A: Once a vendor has received an RFQ, the vendor will send back a quote that wi1l be legally
binding for a certain period of time. Specifically, a Quotation is an offer by a vendor to a purchasing
organization regarding the supply of material(s) or perfonnance of service(s) subject to specified
conditions. The Quotation then need to be maintained in the "Maintain Quotation: XXXX" screens.

Question 30: What is the Source List?

A: The Source List identifies preferred sources of supply for certain materials. If the Source List has
been properly maintained, it will identify both the source of a material and the period of time in
which you can order the material from the source.

Question 31: What is Invoice Verification?

A: The Invoice Verification component completes the material procurement process and allows
credit memos to be processed. Invoice Verification includes entering invoices and credit memos that
have been received, checking accuracy of invoices with respect to price and arithmetic, and checking
block invoices (these are the ones which differ too much from the original PO).

Question 32: What are the different types of Invoice Verification?

A: Invoices based on Purchase Orders. With purchase-order-based Invoice Verification, all of the
items of a purchase order can be settled together, regardless of whether or not an item has been
received in several partial deliveries. All of the deliveries are totaled and posted as one item.
Invoices based on Goods Receipts. With goods receipt- based Invoice Verification, each individual
goods receipt is invoiced separately. Invoices without an order reference. When there is no reference
to a PO, it is possible to post the transaction directly to a Material Account, a GIL Account, or an
Asset Account. You can park Invoices that reference POs and GRs as well as Invoices with no
reference in the system. When you park a document or change a parked document, neither
substitution nor validation is supported. The system only carries out these functions after you
actually post a parked document.

Question 33: Why would an organization need to allow Negative Stocks?

A: Negative Stocks are necessary when Goods Issues are entered necessarily (business process.··
reasons) prior to the corresponding Goods Receipts and the material is already located physically in
the warehouse.

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Part II: Configuration Related Questions

Question 34: How do you create a movement type? When will movement type numbers be
odd?
A: When prompted by a dialog box after an activity, you copy a movement type. Select the field
"Movement Type" and "Continue". In the Define Work area, enter the movement type to be copied
in From: and the name your new movement type in the To: field. Now choose Continue. Choose the
desired movement type you want then choose Edit? Copy as and re-type the selected movement
type with the new type copy all dependent entries and make sure to begin with a proper prefix
(9,X,Z). All control indicators are copied to the new movement type. Review the new movement
type changing any necessary controls. Reversal movement types are numbered as the number type
plus one. The reversal for movement type 451 (Returns From Customer) is 452. As a last step before
saving your settings, add a copy the reversal movemel}t type and· enter it in Reversal/follow-on
movement types.

Question 35: How do you adopt standard settings for the Mess~ge Determination Facility In
MM-PUR?
A: The Message Detennination Facility is by default active and message detennination schema is
supplied for all purchasing documents including POs, PRs, RFQs etc. All of the desired message
types must be maintained. Choose Master data? Messages? Purchasing document? Create or
Change from the Purchasing menu. Add the message type and pick the key combination. The key
combination decides the condition table where the condition record is stored. Enter all needed items.
Next screen, create the individual condition records. Using the menu options Goto? Means of
Communication, enter the proper peripheral~ or output for each message record. Save.

Question 36: How do you set price control for receipts (goods/invoice) telling the system how to
value stocks?
A: Transaction Code OMwi allowsyou to set price control to S (Standard Price) or V (Moving
Average Price). Under Standard Price (S), the materials and accounting documents are both valid.
The one with the lower value Will be posted with a price variance entry.

Question 37: How do you access the Materials Management Configuration Menu?
A: Transaction Code OLMS has a host of options that are not accessible through the IMG.

Question 38: How are the various MM configuration Transactions accessed?

A: Transaction Codes OLMD accesses MM-CBP, OLMB accesses MM-IM, OLME accesses MM­

PUR, OLML accesses MM-Warehouse Management, OLMS accesses Material Master Data, and

OLMW is the proper transaction for valuation and account

assignment.

Question 39: What are some of the more important Materials Management Tables?
A: EINA contains general data of the (Purchasing) Infonnation Record; EINE includes Purchasing
Organization of the same. MAKT is the Materials Description table, MARA-General Materials data,
MARC-Plant Data for Materials, MARD-Storage Location,Data for Material, MAST-Material to
BOM Link, MBEW-Material Valuation, and MKPF-Header Material Document. Some of the tables

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that directly pertain to the document types are T156 Movement Type and T023/T024 Groups
Material and Purchasing.

Question 40: Can you add custom fields to POs and RFQs?
A: Yes. You must add custom fields to the customer including structures I EKKODB and
CEKPODB. Create a project via CMOD for enhancement MM06E005. FolloW.the documentation
for MM06E005, and create the sub-screens for function group XM06 usingfriiris<lction SE80. Ada
fields to the appropriate screen. It is recommended that you call the screedfieJds EKPO_ CI-name or
EKKO_CI-name. This simplifies transferring data to/from the screen. Put code in
EXIT- SAPMM06E- 018 to transfer data from sub screen to structure E- CI- EKPO. Put code in
EXIT_SAPMM06E_016 to transfer data from database to sub-screen;us,ing structure CCCEKPO. In
the PBO of the sub-screen, do any processing to make fields displaybqJy,or hide them. If you need
values from the main screen to make decisions in the sub-screeri~:q~ft:r;t~!lvanables in the global data
part of the function module, and fill the variables in Exn\..:.S~p~96:Etd16 (PBO of main screen)
Make sure everything has been activated like user existstsefeel1~;:;~tc~
'",,\ '"' ,,"'"

Question 41: Where can you dictate how Planned b;ders:;~conve:"ted into Requisitions in
MRP?
A: Look at the Transaction Code OPPR indicator. Assign proper indicator.

Question 42: What SAP program is used to update or create Material Master Records?
A: RMDATIND is used to update Material Master Records and can be used for such assignments as
extending all materials to a new plant.

Question 43: What Views are possible for a material?

A: The material type selected controls the views possible for material. For a material to be used in
the system it needs to be created for each plant. Multiple views of a material are possible but at a
minimum, the material needs to have a description and a base unit of measure assigned on the basic
data view. Additional department views (i.e. Accounting, Sales, Purchasing, MRP, Warehouse) can
be added at a later time by extending the material. As additional plants are added, a material will
need to be extended to the plants before it can be used there.

Question 44: When can a Production Resource/Tool be defined as a material?

A: A Production Resource / Tool can be defined as a material if purchasing and inventory functions
are to be carried out for that PRT. The information required to be input is dependent upon which
d~artment views are being created. Thus, material master information is typically entered at
different times by numerous system users. Note that to add a view, the "Create Material" transaction
is used rather than the "Change Material" transaction.

Question 45: When creating a new Material, what may prompt some of the possible Material
Types?
A: Pressing F4 gives a list of choices. Select the material type for the material you are creating. For
example, FHMI for Prod. Resources/tools, ROH for Raw Materials, FERT for Finished Products,
etc.

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Question 46: How do you determine which views of a material need to be added or to see which
plants a material has been extended to?
A: You can use transaction MM50. To extend a material to a different plant requires selecting the
new plant on the organizational level screen. Note that all views of a material are not extended
unless they were selected on the initial screen. In addition, each plant may have a different system
configuration requiring additional inputs on each of the departmental screens. Material changes 1}
made in one plant do not change that material in other plants. '.

Question 47: How can you set user defaults for views and organizational levels?
A: The user defaults for views can be set under Menus: Defaults ?Views. Select those views to be
checked on by default when generating a new material. Select 'Vie\:v,'§election only on requ~st"when
the select view pop-up is to be by-passed unless selected. Fororganizati()nallevels, Menus: Defaults
? organizational levels. Enter those organizational levels to bedefat!-Ited when generating a new '1
7

material. Select 'Org. levels/profiles only on request' when the selectvlewpop-up is to be bypassed
unless selected. L,'.

. . ' " .' "::":" .:":" " . ": ~::~;-. :

Question 48: What needs to be present in ordc.rfor Mat~rial'fype to be automatically copied

from one view to another? .
A: When creating any view, the Industry Sectorand Material type will be automatically copied from
an existing view, so long as at least one view exists.

Question 49: How do you create a documentle-mail notifying your supplier or internal
personnel when an invoice plan is settled?
A: The IMG setting is Material Management ? Logistics Invoice Verification? Message
Determination. If these settings are not made, the message "Invoicing Plan: No Message Was Found
for Partner XXX, Company Code XXX". If the notifying documents are not required, simply tum
off the message by changing the message from "error" to "information" using Material Management
? Logistic Invoice Verification? Define Attributes of System Messages.

Question 50:· How can one keep users from using standard MM Movement Types?
A: Standard Movement Types should not be deleted from the system. The account assignments,
a
however, may be deleted for particular Movement Type in table T030 using transaction OBYC.
Another way to achieve the same result is to enter Movement Type in transaction OMJJ. Remove
MBXX from allowed transactions.

Question 51: How do you define a Release Procedure for PRs and POs?
A: Use Transaction ME54 and ME28 respectively.

Question 52: How do you Change Characteristic?

A: Use Transaction Code CT04. Follow these steps: Format (numeric, character, etc.), Unit of
Measure, Templates, Required Entry, Intervals as Values (?), descriptions for texts for characteristics
and characteristic values, display options for characteristics on the value assignment screen, Allowed
Values, Default Values that are set automatically on the Value Assignment Screen.

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Question 53: How do you create a Class?
A: Class is defined as the group of characteristics, which can be attributed to a product. Use
Transaction CLO 1. Enter the value for the Class name and a small description. Select the group from
it. The values on the different tabs are not mandatory, so you can skip the values if you wish or you
can go to any extent needed. Save, and the Class is created.

Question 54: How do you configure the Release Procedure?

A: Use Transaction OMGQ.

Question 55: Will ROH have a sales view? Will FERT have a purchasing view?
A: They shouldn't because ROH type materials are procured from the outside not sold and FERT
type materials are created inside and aren't procured. In some special cases, we have to sell raw
materials (ROH) and buy finished goods (FERT) from outside sources. Theviews must be extended
in these cases using transactions OMS2 and MM50.
-':­
Question 56: Where do we create Vendor Account Groups, orscreen layout in Vendor
;'-~ Master?
A: Using SPRO, Financial Accounting ? Accounts Payable/Receivable? Vendor Accounts ?
Master Records? Preparations for Creating Vendor Master Records? Define Account Groups
With Screen Layout (Vendors) or Define Screen Layout Per Activity.

Question 57: What are the key fields for the Material Master?
A: Material Groups, External Material Groups, Divisions, Material Status, Labs & Offices, Basic
Materials, Storage Conditions, Temperature Conditions, Container Requirements, and Units or
Measure Groups.

Question 58: What are the main Purchasing Tables?

A:

EKBN Purchase Requisition

EBKN Purchase Requisition Account Assignment

EKAB Release Documentation

EKBE History of Purchase Document

Question 59: How do you create a material?

A: Use Transaction Code MMOI. Name the material, choose an industry sector, choose a material
type, create or copy the views, add a basic description, give it's attributes/values, MRP information,
reorder point, accounting valuation, warehouse management information and then save the data.

Question 60: What are some of the data points provided by Purchasing for a material?
A: Some of the key inputs when creating a material are Base Unit of Measure, Purchasing Group,
Reminder days, tolerance levels, shipping instructions, GR processing time, JIT schedule indicator,
Critical part (?), etc.

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Question 61: What are the Lot Size attributes a material can posses?
A: Lot Sizing dictates the reorder quantity for a material. A material can have a static, periodic,
optimum, or fixed lot size.
-")
Question 62: How do you create a Vendor?
A: Use Transaction Code XKO 1. Add the Vendor name, Company Code, PurchaSing Organization,
Account Group, and the Vendor address. Next add the country, Bank Key, Bank Account, Account
Holder (an actual name), and then save the data.

Question 63: How are materials assigned to vendors?

A: Information Record links materials to the vendor, thus facilitating the process of selecting
quotations. Use Transaction Code ME II or Logistics? Ma,terial Management? Purchasing and
then Master Data? Info Record? Create. -­

Question 64: What data does the Information Recorg.bjrita,ili? __

A: The Information Records has data on Units -of M~~~ure, 'Vend()rprice changes after a certain
level, what materials have been procured by a specific vendor, price and conditions for relevant
Purchase Organization, Tolerance limits for over/under delivery, Vendor evaluation data, planned
delivery time, and availability time the vendor can supply the materia1.

Question 65: How do you create the Information Record based on the Material Master record?
A: In the IMG, Master Data? Info Record? Create. Enter Vendor Number, Material Number,
Purchasing Organization or Plant Number..Enter the number of the Infonnation Record if external
number assignments are used (left blank, the system will assign a number). Enter the General Data
for the Vendor, order unit, origin data, and supply option, Customs Tariff Number. Next, enter the
Vendor's planned delivery time (used for scheduling), responsible Purchasing Group, and Standard
PO quantity (used in conjunction with price scales for price determination). Check the Control Data.
The tolerance data and the responsible purchasing group are taken as default values from the
Material Master record. Ehter the net price. Now, from the top of the screen Go To? Texts to
display the text overview. You can enter the info memo or the PO text. If the PO text is already
defined in the Material Master.record, it appears as a default value. Save the record.

Question 66: What are some of the initial configuration steps for Purchase Requisitions?
A: Define Document Types, Processing Time, Release Procedure (with and without classification),
Setup Authorization Check for G/L Accounts, Define Number Range.

Question 67: When, in initial configuration, why would you have to Setup Stock Transport
Order?
A: If it is required to carry out an inter-plant Stock Transfer through SD, then this configuration is
required and must be carried out.

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Question 68: What are some of the initial configuration steps for Inventory Management?
A: Plant Parameters, Define System Message Attributes, Number Assignment (Allocate document
type FI to transactions), Goods Issues, Transfer Postings, Define Screen Layout, Maintain Copy
Rules for Reference Documents, Setup Dynamic Availability Check, Allow Negative Stocks (?).

Question 69: What are some of the initial configuration steps for Physical Inventory?
A: Define Default Values for Physical Inventory Document, Batch Input Reports, Tolerances for
" ---",
Physical Inventory Differences, and Inventory Sampling. Cycle Counting should be configured as
well.

Part III:
PracticallTroubleshooting Related Questions

Question 70: How can you process vendor returns without a Purchase Order reference?
A: Use Transaction Code ME21N. Look for the Return ccHul11,ns and dick it at the item details,
MIGO_GR, Goods Receipt for Return Purchase Order_ Movement type will be 161 to deduct the
stock and 162 for reversal._ Before saving, check if there is a check in the Return Column to ensure
that it is a return Purchase Order.

Question 71: How can an invoice be verified?

A: Transaction Code OLMR may be utilized.

Question 72: How do you change the standard price in the Material Master?
A: The standard price in the Material Master can't be updated in a direct manner. A great way to
update it is to fill the fields Future Price MBEWZKPRS and the Effective Date MBEW-ZKDAT for
the material on the accounting view. Next, go to Logistics? Materials Management? Valuation
? Valuation Price Determination? Future Price? Activate. TCODE MR2B, program
RMMR2100. Lastly, run the BDC that was created to update the standard price.

Question 73: How do you perform a Goods Receipt?

A: Use Transaction MIGO. Enter the Header Data, select the Movement Type, Enter the PO
Number, select the PO items to be copied, and then post the document.

Question 74: How can you post a Goods Receipt if the PO number is not known? .
A: If you selected PO Number Not Known in Transaction MIGO, you can specify search criteria for
the POs on the initial screen. The system then displays a list of purchase orders. Select and copy the
required PO items.

Question 75: How do you display a list of all reservations in the system?
A: Run report RM07RESL.

Question 76: If you have created a custom Movement Type and you get a "not allowed" error,
where should you first look for the cause?
A: Using Transaction Code OMJJ, check "Allowed Transactions" for the customized Movement
Types.

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Question 77: How do you find the logical value for stock item by date?
A: Use Transaction MC49.

Question 78: How can you disable a Reservation in MRP?

A: Use Transaction Code OPPI to check "block stock".

Question 79: How do you add an attachment to a Purchase Order? . .

A: One may attach any document to a PO manually without using the DocumeriFManagement '\

System in SAP, but no attachments can be added while you create a PO using ME2 [N; Save your )

PO and then open the PO using ME22N. There you can attach 'k document with the Service for

Object button. Click the Service Object button? Create? Createi\ttachment tht!n select your

window directory, the file to be attached. This attachmentjsw}lYfo.rintemal information. The

system will not print this document automatically along with aPQpijnto~t.

.: '0'•. '~_ " _,u' ' .. -:-!"_ .:

Question 80: How do you generate an automaticrQ,after~.reatiIlg aPRusing a particular

material? . <..... l ..;·.... "iii '. 'It :lii:
A: In MMR and VMR check Auto PO (MM02f)(K,02).Maintain theSburce List and select the
indicator for the source list record as MRP relevant {1v1E01J:If more.than one source list record is
generated, make one of them fixed. RunM~P and the PRs generated will be pre-assigned with the
source of supply (MDO1). Enter ME59 for automatically creating POs from PRs.

Question 81: Where is the Header level and Item level data saved in a PO?
A: In SEll, we can see this information in table EKKQ and EKPO respectively.

Question 82: Where is Material Master data saved?

A: Tables MARA and MARC.

Question 83: How do we know if a PO has been issued?

A: Bring the Requisition up by using Material Management? Purchasing? Purchase Requisition?
Display. Where the requisition overview screen is displayed, select an item by clicking on the
selection box to the left of fheitem. Click on the General Statistics icon on the application tool bar.
Select item. General Statistics icon. The screen appears, in the middle, under Order Statistics, in the
field Purchase Order, if there is no number the PO has not been issued.

Question 84: What is the difference between a PR with a Master Record and without a Master
Record for the material being ordered?
A: If the master record exists, then all of the infonnation about the Source List, Information Record,
and Vendor Evaluation already exist in the system. If we don't have a Master record for the material
we are ordering, the material is generally being ordered for direct usage or consumption. You can
specify which consumption account is to be charged which is also known as Account Assignment.
For example, we assign the purchase costs associated with a requisition to our sales order or cost
center. If the first situation exists, many times purchasing enters into a longer-term purchasing
agreement with a Vendor, which is called an "Outline Agreement". If the Outline Agreement is
done, then Purchasing cannot issue a purchase order against a PRo It can only set up such an
agreement (either a "Contract" or a "Scheduling Agreement").
r

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Question 85: Can you change a Purchase Requisition after it has been created?
A: Yes. Use Transaction ME52N. Check to see if the PR has already had a PO issued against it. If
so, you must inform the Purchasing Group. Check if the PR has been approved. If so, you may only
make changes to a limited extent and may be subject of approval. Check if the PR was created by
MRP. In this case, you don't have much control over the modification process. All changes to items
are logged and stored. Information stored includes when the information was chapged, who changed
it, what the changes were, etc. Select the desired item in the item overview and choose Go To ?
Statistics? Changes.

Question 86: How do we create Consignment Stocks? . .•••.. .. ..

A: Everything is the same as a normal PR or PO, except: Entefthe item category "K" for the
consignment item. This ensures that the Goods Receipt is posted to the consignmentstores and an
invoice receipt cannot be generated for the item. Also, do not enter a net price.
." ,~::: .. . : ..

Question 87: What is Vendor Evaluation and how d.~~riumaintain it?

A: Vendor Evaluation helps you select the SOt}rce df'Supply by<! s¢()re assigned to a particular
~ vendor. The scores are on a scale of 1 to 100 and are based on differing criteria. Use Transaction
-. /
ME61 and enter the Purchasing Organization and Vend()r Nunlber.

Question 88: What are the components Qf the Master Data that details a company's
procurement; used by, Vendor Evaluation for example?
A: The key components of Master Data are: Info Record (ME 11), Source List (MEO 1), Quota
Arrangement (MEQl), Vendor (MKOl), Vendor Evaluation (ME61), and Condition Type (MEKA).

Question 89: How do we get a proper list of vendors to send an RFQ?

A: Either use the Information Record to see who has sold a particular material to the organization in
the past, or go through the Source List.

Question 90: How do you create a Source List?

A: Use Transaction MEOI. Enter the Material Number and the Plant Data. Enter source list records,
validity period, period of time material is procurable, Vendor Number, responsible Purchasing
Organization (or number of the Agreement or Contract), PPL (if the material can be procured from
another plant), Fixed Source (?), MRP control. Also, a check should be done to see whether any
source list records overlap. To do so, choose Source List? Check.

Question 91: How will items be returned to the vendor?

A: When you are posting a Goods Receipt for a PO, you can also enter items that you want to return
to the vendor. To do this, you no longer have to reference the purchase order with which the goods
were originally delivered. From the item overview, choose 161 (Return for PO) as the default value
for the Movement Type. Enter the data for the return item(s) and post the document.

Question 92: Where do you perform a Goods Issue?

A: Use Transaction MIGO. It is possible that when MIGO is accessed that a different document
screen appears than the one required. This occurs because SAP remembers the last Goods Movement

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transaction accessed per user login. To reach the Goods Issue Purchase Order screen, click the
Dropdown Icon in the transaction field and select "Goods Issue".

Question 93: How do you perform a Goods Issue?

A: Use Transaction MIGO. On the initial screen, enter the header data (you need not enter the
Movement Type or the Plant as these are automatically copied from the order).Choo$e Goods Issue
? Create with Reference? To Order. .. If you know the order number, enter it directly. Using the
By-products Indicator, you can simultaneously post the Goods Receipt,()f planned by-products.
Using the Choose transaction/events indicator, you can display all transactiqps/events for an order
and choose the transaction/events for which you want to post a Goods Issue.. Copy the desired
item(s). Check data on the overview screen. Post the document.·· .

Question 94: How do you perform an Invoice Verification?

A: If the Invoice refers to an existing document (PO,etc;), then the system pulls up all of the
"

relevant information like Vendor, Material, Quantity, Termspf Delivery, arid Payment Terms etc.
When the Invoice is entered, the system will find the relevantaccounLAutomatic posting for Sales
Tax, Cash Discount, Corrections etc. When the Invoice is posted, certain data such as Average Price
of Material and Price History are updated. Use TransactionMIl{O.

Question 95: How do you display parked

documents?
A: There are two possible transactions to use here. They are FB03 and FBV3. The first shows all
posted document types. This is the best choice if you think the document has been posted to you "j
actual balance. The later shows only parked documents that have not yet posted to your expenditure
balance. These documents are stillencuihbrances. It is the best choice if you are trying to find which
documerits are still awaiting completion or approval. This transaction is very similar to the FBV2
transaction used with P-Card reconciliation and marking parked documents complete.

Question 96: What do the W, V, andF fields show about the status of a document in FBV3?
A: An X under the W colwnnmeans the document is subject to Workflow. Most documents on this
screen should have an X in this column. However, not all documents are subject to workflow (cash
deposits etc.). An X in the V column means that the document has been marked as complete. If they
are subject to Workflow, they have been sent to Workflow for approval when they were marked
complete. An X in the F column means that the document has been approved and posted to
expenditures. This column will always be empty in this screen. An X under W, but no X under V
means that you have not marked the document as complete. If it hasn't been marked as complete,
use FBV2 to check the document and, if it is correct, mark it as complete. You can quickly go to the
document from the list screen by double clicking on the document number. When the document is
displayed, click on Document on the menu bar, and then click on Change in the drop down menu.
The transaction will switch from FBV3-Display to FBV2- Change. An X under both Wand V will
mean it is waiting for approval and you may need to check the approval path to see if has met with a
delay.

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Question 97: If you are using Transaction MRKO, vendor settlement, and we get an error
message (FS217 or M8443 etc.), how would you go about troubleshooting this?

A: (With this question, look for an answer that follows a similar logic) To troubleshoot this problem,
we have these steps to follow. Set up Output Condition Type "KONS". The Output Type specifies
the kind of output to be produced. The Output Type is predefined for your areapnh~ Rl3 system. If
alternative choices are possible, you can, of course, list them by pressing F4. The Output Type can
specify, for example, a printed form that you need for internal use or a form thatyou want to send to
a customer or vendor (for example, an order confinnation). The Output Type cart also be.a11 internal
electronic mail message that you want to send to staff in another department-To create an Qutput
Type, we use Transaction V/30. Click on New Entries; go to where you can define a new Output
Type (i.e. KONS). Once you have fed all of the data in the screen you cansave it and We will have a
new Output Type. Now, use Transaction MRMI where we will mailltainconditions for the Output
Type KONS. When you press the Key combination tab, you go to thei"Create Condition Records
(Consignment): Fast Entry" screen. Here you define the CompanY Cpde, partner etc. Hit the save
button. Now you have conditions associated with the Output Typ~K6N'S. Now, we must maintain
the appropriate Tax Code in the Information Record. Use Transaction ME12. Be sure Info Category
is consignment. Hit <Enter> and you will go to the screen "Purch. Org. data 1". Hit <Enter> again
and you will go to the next screen where you need to maintain the Tax Codes. Put in Tax Code "10"
which means exempt. The next step would be to go to the GIL Account and update the "Tax
Category" using Transaction FSOO. "Drop down" the box for Tax Category and you will get some
options. Choose the first option "..:" Only Input Tax Allowed. Hit Save. The next step, go to check
the "Field Status Compatibility at GIL Account"; use Transaction SE38. Now, enter the program
number "RM07CUFA"and hit "Execute". Now enter Movement Type "291 K" which is used for
the Goods Issue related to consignmeht. When you press the Execute button, you will see screen
"Field Selection Comparison: Movement Type - GIL Account". Now, check the Compatibilities of
all the fields, if.a particular is not cpmpatible, then there will be an Error message with a Red
Highlight. Now the signs. Plus, Minus,and dot denote whether the entry in that particular field is
"Required", "Optional~', or "Suppressed" etc. Now, the error could be because of the following
reasons: If the Mvt column has a "+" and Account column has a "- "; If the Mvt column has a "-"
and the Account column haSa."+". Once you fix the value you can go to the Error Log and see if
there are any more errors there. The last step would be to run Transaction MRKO. Now, you get all
of the "Not Settled", "Pending Transactions", or Good Receipts recently done. Then, go to the
previous screen and press the "Settle" tab and execute it again for settling the documents. Now the
transaction goes through and the vendors are paid automatically. If after doing this, we still get the
error message, then we could also go to Transaction OMRM and change the error message to a
warning mess~ge. The other place to find the error messages is Transaction SE31.

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Data Uploading - TOOL

LSMW - Record Method

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LSMW-14 STEPS
LSMW - Helpful hints for Support PM for transaction updates using recording option.

TCODE:LSMW

Here you have to first Define Project, Sub Project and Object. It is mainly for grouping the
objects. One can have multiple subprojects and Object in a Project.

LegJ5cy System MigfJ5tion Workbench

:0y¢~j~~~ii I

Project !<K02 @:)XK02

Subproject XK02 XK02
Object XK02 XK02

Execute the transaction and you will get navigated to the second screen: LSMW Work
Bench. Here one can choose the required steps by pressing the 'User Menu' button.

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User
•• On • • "'ff~ff~fi.".

_NLlrTIl;Jeripg Off.• LI?&S~~",[)iSJ)IaY..

, ......

;4 .:s Action LO~

@U,8f Menu [8]

~ Haintain Object Attributes

!~ Haintain Source Structures
R Haintain Source Fields
r;;; Haintain Structure Relations
[~Maintain Field Mapping and Conversion Rules
[~ Maintain Fixed Values, Tran~lation~, User-Detined Routines
~ Specify Files
~ Assign Files
L. Generate Read Progrem
•...... Display Read Pl::ogr€ll!l

'." Read Data

!;j Display Read Data

Generate Conversion Program

Display Conversion Program

I~ Convert Data

t~ Display Converted Data

L. Check Converted Data Aqainst Customizing

~ Create Batch Input Session

['? Run Batch Input Session

[: Analyze Erroneous Transactions

[;;.. Start Direct Input Program

The following 14 steps ate sufficient for Support person for the LSMW update.

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Step!. Maintain Object Attributes
Define the method of upload. i.e. batch recording, direct update, BAPI etc. Go inside this
step and choose the radio button for the options. This document explains only about the
transaction recording method.

update URl. for vendor

Business Object
Method

One can togglebetweentheDisplayor change option using the standard button. Select the
object type and Import.method as 'Batch Input Recording'.
Once you have selected this click on the overview button so that you can go to the recoding
overview

Recol:dings

EMAIL test
Transaction: XK02 Change vendor (centrally)
O=el:: BnlDUH BINDU II
TELEPHONE update eelephone and FAx
Transaction: XK02 Change vendor (cenerally)
O=er: BINDUH BUlDU II
r---''''''02 XK02 in JA login
Transaction: XK02 Change vendor (centrally)
O=er: BINDUH BINDU 11
ZURL update URL fOl: vendor
Tl: ans action: XK02 Change vendo!: (cent!:ally)
O=er: BHlDUH BINDU M
ZXK02 xk02
Trani3action: XK02 Change ve~dor (centrally)
O=er: BIIlDUH BIIlD1T M

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Example of a recording
P: 0 cess fl f!?cort:!ing
, Default . !Def<lLl~AII ! Reset I :~~c:rEOEOI'1~iEOld .mScree"Field . . iv.?f: i RePe:atl\e:~()rc:l!r19: r.
.~
Recot:ding XK02 )

~~ XK02 Change vendol: (centl:ally)

~ SAPMF02K 0101

~
BDC_CURSOR RF02K-D0130

'\
)
BDC_OKCODE /00

RF02K-LIFNR LIFNR

RF02K-BUKRS BUKRS

RF02K-D0130 x D0130

~ SAP~lF02K 0130 :) -

LBDc_cURSOR LFBK-BANKL (01)

CBDC OKCODE =E1ITR

LFBK-BANKL (01) 0005064

\
J
After recording default those fields that you want to update fuse in batch update.

Step 2. Maintain Source Structures

Giv.e any name, which can be easily identifying the input data structure. (It is equivalent to
defining an internal table in a ABAP program). Can define multiple structures also (if
required).

L'>f'v! Wcrkbench: Change SOUTce StfW:tur£'S

i'P IQI;'?!lI:! 1[41': 1l~l:~.! li~;1!!lr~§~~t~~e .gmP~sition ,;;:t" ,~ ", w: ;:mX:=:WAm;;;.N~M;.;:;:m=;:;~

XK02 - XK02 - XK02 XK02

Sou~ce St~uctu~es

LVE!lDOR vendor list for changing the bank ket

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Step3. Maintain Source Fields

Define all those fields that you are giving in the input file here. The order should match the
order of fields in the file. Otherwise it will get updated into the wrong fields. (Most of the
be in this

;LSM Workbench: Display S'C?l..lN:e Fields

I
XKOZ - XKOZ - XK02 XK02

vendOE 11St for chang1ng the bank ket

Ll:Fl'lR C (O~O) vendo:!:

URL C (~32) URL name

Step 4. Maintain StruCture Relation.s

Define the source and destination structure relation ships.
LSM Workbench: Display Strudwe R efationships

12,!l1;~] u~r?U~tree ;~~~~~ii:J6,

(K02 XK02 XK02 XK02

Structure Relations

~ZUR1 update
URL for vendor «« VENDOR vel
Select Target Structure ZURL •

StepS. Maintain Field Mapping and Conversion Rules.

You have to define the mapping rules .., ego Customer = customer. Or if any default value
has to be passed, or some fixed value is given like that ( company code can be a default
value if processing for a particular company code.

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Field Happing and Rule

L~ ZURL update URL ~or vendo~

L~ Fields
LIFNR I I ~ 'if.? Venda x; Account Numbex;
Soux;ce: VE~IDOR-LIFNR (vendox;)

I
Rule: Tx;ansfex; (MOVE)
Code: ZURL-LIFNR VE~OR-LInlR.

I
BUKRS U 'if.?
Com.pany Code
EKORG U 'if.?
PUl:chasing Ox;ganization
DOll0 U ~ Px;ocess data?
Code: ZURL-DOllO - ·X·.

H i·.·.... :::: ~ield

NAMEl
SORTL
NAME4 U Nam.e 4
STRAS U House numbel:: end. st:t:eet
ORTOl U . ~City
PSTLZ U .~. Postal Code
ORTOZ U 'if.? District
After making all the mappings and initialization you Can even do a syntax check to see
your mappings are correct or not

Step6. Specify Files

XR02 XR02 - XR02 XR02

F:U."",

~ Legacy Data an the PC (Frontend)

L----LSMN update URL XR02 \\priam\lsmwi\XR02\xk02.txt

Data for One Sou~ce Structure (Table) \
Sepa~ator Tabulator
F1eld Order Matches Source St~ucture Def1n~t:
Nith Record End Indicator (Text File)
Code Page: ASCII

Leqacy Daca On the R/3 ael::ver (application server)

_ Im.ported Data. Fi1e ~or Impol::ted Data (App1ication Server)

~Imported Data

~ Conve~ted Data Fi~e for Converted Data (ApplicatiOn Server)

~converted Data

Value VaLue fo~ Wildca~d '*' in File Name

Y Oll have to specify the input file location in this step.

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Step7. Assign Files

Assign the physical file path to the structure

,
r _",

XK02 - XK02 XK02 XK02

50u~ce 5t~uctu~es and Files

L VENDOR vendor list for changing the bwJr ket

LS~ro update URL XK02 \\priam\lsmwi\XK02\xk02.txt

StepS. Read Data

Reading the file to the source struct'll~1:? . .

Transaction Number to

l;;i: Value Fields -> 1234.56

G?jOata Value '> YYYYMMOO

where we can review the field values that got read.

J Irnported .
[~~i~I~S96!~6i~J
au
LZ1MMJJC.£
!~~s6~6~~9iPI~~ ': n!r~!~el~t_S21?~r~~9~~~ . . g;U.0.JJ2.zU2-.k "- ,au u,' w,._ z~ )2L.3.," -__~. _." ",AQ-___~_.~_

File .lsmw.r:ead

Row Struct. Conts.

VENDOR . Ti1TJ1W. ibase. jp

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SteplO. Convert Data
Converting the source structure data to the destination by applying the conversion rules that
have mentioned in step 4 and step 5.

S~~p 11. Dis.J!lay Converted Data

LSM Workbench: C,';frtveril"iIf>d D.;tL"n

FiJ.e XKOZ _XK02_XK02~lsmw_conv

5tx::uctu:t:e ZURL

~t
r'~dValue

TA!3X"Ji.l'IE Ta:b1.e .Na.m.e ZURL

TeOD!!: T:t:ansacti..oIl Code XK02

LJ:FlIIR Vend-ot: Account N-...ural:;le:a:: 202.5:;:'09

B11KRS Com.pany Code /

ltKORG Pux::chasi..ng Oz:gan.;i,zet:ion.. /

D0110 P:r:;ocess data? X

NAl'Xl!:1. l<Jeune 1. /

SORTL Sot::t f;;t,~~d /

Also useful for checking Jhe values converted.

Step12. Create Batch Input Session

This will create a Bl session in SM35.

LSM ilVorkbench: Generate Batch

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Step 13. Run Batch Input Session
This step will call SM35 .One can run the session in SM35. You can run in foreground, Error
mode or background. Preferably run in Foreground for testing some few records ...once
confinned the update then run in back ground.

How to transport the LSMW project from Test to Production system;

,. "."

The LSMW projects can be transported between systems via export IImPbit method.

You can export the entire project as a text file and that can be imported to another system.

Ctrl+FlO

Project f:K02 ~)XK02

Subproject XK02 XK02

Object XK02 XK02

~',"',G;';';""','"

In MSS no changes are allowed, so before importing to MSS, give the MSS file path in
MST and then do an export.

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;~
. 7

\
- j

Release Procedure for PR

With classification

44

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RELASE PROCEDURE FOR PUR.REO WITH CLASSIFICATION

CREATION OF CHARACTERISTIC :­

Materials Management / Purchasing! Purchase Requisition / Release Procedure /

Procedure with Classification! Edit Characteristics.

Enter characteristic name (ceban_gswrt ) and click on create b}ltt<:m.

:;
...

Characteristic
Chan~e Number
Valid From 27.92.2911

Now click on additional data tab

table name :. ceban
Field name : gswrt & press enter

Characteristic
Chart~E!~umber
Valid From

r'~Re'fe'r~h2'e":'tC;:':':T~bie'''FIei'tf:,~':':-;'''''~' . ­.. . . . -.-.-. ....,. .... . --.-. . . ". ,.

.... ~....... ... ,~":.~~~....
, Table Name ij..'2!!~!~__<) Field Name
. ~~~,~_~~~o._~

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In basic data tab enter

Currency: inr &
check multiple values & interval vals allowed as shown below.

~\I~i;!~2~~igrllnel1t//
1.>d/si~91;',;;I~;-'······.

[: ;~: ::"::owed
I . "'-­
1
i0 Negative Vals Allowed
, 0 Restrictable
Temphat~

Now click on values tab& enter as below

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Now click on restrictions tab

Enter class type: 032 & press enter, below screen appears

Characteristic
Change Number
.................................
Valid From :27.G2.2G11

"')
. /

Now Click on save button below screen appears.

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Charaettliitie
....
Ch..B"nQE!.. Number . I.. . .,=..,..,'"'"......'"........,.... " ..J
Valid From

'\
)

CREATION OF CLASSES:.;;

Materials Management/Purchasing! Purchase Requisition I Release Procedure I

Procedure with Classification! Edit Classes.

Enter class, class type, & click on create button.

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Class
c:::lill~~type
. .C:::~~.rl!:JE!. .~.IJIl1E!r ,
Valid from ·12712":2911

Enter description
~

Class
Class type
g~an~e Number
Valid from

r:ij~~i~:~~t~i~·····
r"·Eie;:~~pti~n
Status ........................................................

Class group ·m ~

, gr!:J~rli~~iC?n~l.ar~a~. ""... j ..:~.::~:=::==

,
Valid·.. From
.•
H~~~·M'~,.., ~."" ~.~.' ,,~
:27.92.2611

now click on char. tab

& enter characteristic name, & press enter, & save it.

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")
Create Class:
,~' ,j" :~~":JF T 'y"~r '~A:~:" '
<', ~'

,...... ] 101
Class ITEM ][J l£ _."\
Class type ,
.I
Change Number
Valid from 27.a2.2a11 ~)

----"_._---_... \
)
,,,...... > = = = =
: ': Char. escription
"\
IIi ClCEBAN GSWRT --) L')ltal Value of Item I
1 ir----:l----~---~ .­ /

,,··,·',; Hi--..J
:
;)
,.

~
Set Up Procedure with Classification:- \

Materials Management / Purchasing! Purchase Requisition / Release Procedure /

Procedure with Classification! set up procedure with classification
.j
N~~_ -,~.lj~~9l?:.release groups

,..(JteI~~~~2:f~~l~?

Release Codes
I:~~i·~ase. . . . . i.. .n.. .d.. .i.. .c.. .a.. .t.. . o.. .r.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
: Release Strategies
'Workflow

Click on new entriesa

Enter rel.grp, class, description & click on save

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\
!
L.. . R~LGrp
,\ ~;) e~~;~
D
. . . . . . . .-.. . . . ~ ~~!

D 11
Press f3, f3(back) & click on release codes

Click on new entries

& enter grp, code, desc as below
Now press enter & click save button.

""
:.1 1~~~:.:~:,:;:·:;~.·~llt~._~~.I~~:~~~titl~~5i~p~~~~~i~[i~!~F··.·.~;~ .~~~};:' .
New Entries: Overview of Added Entries
r~[~~lr~~:;~;;:lf.;t ·E.:·{;:mi·~!~:: ,..- .~; .. -~;!. ...;:~ ................................ ·········;{·;~\i;l;i :';i~;

Description
stock controller a
GIPA plant manager a
·····GilAM···' asset manager
Vh ,.~~~.

GI '00 operational director

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Press f3, f3(back) & click on release indicators
~~uuu~,=",,"",uvnY·"" ''''

Release Codes
~:::>
~""'''''.~ -~-~--""""'-.
-""":-
Release Strategies
Workflow \
J

")
Click on new entries
Enter release id, changeabile, value change & press savebl.lttorr..

Release ID

D Firmed for Req. Planning

D Released for Quotation
U Released for issue of PO
Field Selection K~y" ..

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Similarly create another release id as shown below. & save it, press f3 ,f3.

hll~ 1:~,~1t~:
\:'(":;>'v

~"'~'""m"'"~"~''~'~''' "~",,,,~l:;;;

Release ID release~pr

i[i~iil!~"J~'
nFlrm~dfor Req. Planning
o Released for Quotation
~eleillsed for issue0!E9>
E.l~I,9.9.!I~c;~c?'I1I,5~y .... .....

~.~,":""~';;x::c~~,=;::y:,,,". ",.""'c",':7",:"?~~-~:.~_"',,;:=;r····'

LChange~aft~~,,$tal1pfr~,~Elas:epr6cess 7
Changeabil.
.~ ~'cM
<:.!l"':)
''''''~~~ _ _'''_~~ '~'h~~:~+.

Value Chan9~ (~)

Now click on release strategies.

'."'~"'..41UU~I:!.""(;U.VILV",,···m"m"m .......mm"....".m.......... "" .

~Release indicator

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Now click on new entries
Enter release grp, release strategy, & release codes as below .
..".

~~I~~.~.El<3ro~p .
~~I~Cl.~El§l~rCl~llY

,-.,., "
}

.........."............................."... "...._-. !

Release prerequisites ...-.J Release statuses Classification Release simulation "j

Now click on release prerequisites. Check od check box & click on continue.
IlE?"'Pr:ereauisites._"~~,,w,, ___w"."""""""""""_"""",,",,",,"""_·~_""""",,""""w,,,,
Code\release prerequisite
PA OD

PA D

~) j

Cancel
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Now click on release statuses
""

~t:llt:l~:;~§roup
...~.~.I.~.~~.~.~~Clte'J'l

Release

Observe the below S9reen and click on continue

ItgRelease. Statuses

PA OD R Release Indicator Description

[J [~:_Blocked pr
i_~J blocked pr
L?J RFQ/purchase order

Continue ~j Cancel

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Now save it & click on classification

Release Group GI Iitem wise grp

Release Strategy M;relbypa&od

.,., .. .....
~

Release codes
: iP plantm~n;ger a
AI
ii()[)] ooerational director
't, "".' I ,

'\
j

1.. 1.............' .............................. .

Release Release simulation

Follow below steps

Check >=5000,00 i l1r check box & press enter

o--(~.".' .."'.....'...................'....................................
m m ••••• _ •••• _ _ _ ••••••• _ ••••••• _ .

fijCharacteristic Value
l I
i0 >= 0,00 INR
i 0 < 5000,00 INR
~~l@]R&>
; 0 < 10000,00 INR
o >= 10000,00 INR

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,Ji~~:,§~~~>,~' . . . . . ~.J.E, rei by pa & od

..~!lease~tr,~~~ID'.

Now press 0.

Click on release simulation.

-- ~.

Release statuses

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~~if:J~i;~Sk;fi~~s ~,,~k on~imulate""~~lea~_:o do ~el~,~~~ t,we",s, ,tw
, wmN'"''''

rB,~r~~§.~~,fi~9~~eJ,"w.,. _...."w:~~] item wise grp

~!:~!~s~.~!~!~~yA41 rei by pa & od

Final release PAOD

Release ID

Simulate release

Now click on release possible then only OD can release pr.

Ie? Release,Sirnulation, for~Group.,GIStrateClv.,A4
Cod e Release Options
PA Release possible
OD Release prerequisite missing

Set/reset release

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Now press f3 following screen appears.

Simillarly create release strategies with A3;A2,Al in 01 Group\¥ith these conditions

A3 = < 5000 & approval should be by plant manager A
A2 = >=10000 & approval should be by stock controller A & plant manager A
At = <10000 & approval should be by stock cOI1troller A.
Now create pur.req & we can release this pur.req itemwise.
Creation of purchase requisition
Now create pur.req t.code- ME51 N

i~PI:>:_\ii .• ,\..,;-.

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Enter material, plant, delivery date, quantity & press enter button.

Now press check button below screen appears.

)

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