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TSCM50Procurement I, Part 1 of 2SAP ERP - Procurement and Logistics Execution

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Participant HandbookCourse Version: 95Course Duration: 5 Day(s)Material Number: 50099849

An SAP course - use it to learn, reference it for work

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About This HandbookThis handbook is intended to complement the instructor-led presentation of thiscourse, and serve as a source of reference. It is not suitable for self-study.

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About This Handbook TSCM50

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iv © 2011 SAP AG. All rights reserved. 2010

ContentsCourse Overview ......................................................... vii

Course Goals .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .viiCourse Objectives ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . viii

Unit 1: The Procurement Process: Basics........................... 1Procurement Process and Organizational Levels .. . . . . . . . . . . . . . . . .3Purchase Order Entry – Basics .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17Goods Receipts Entry – Basics .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35Invoice Entry – Basics.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

Unit 2: Master Data ...................................................... 75Vendor Master Record ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76Material Master Record ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92Entry Aids ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .109Mass Maintenance (Optional) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .124

Unit 3: Procurement of Stock Material ............................. 137Conditions... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .139Request for Quotation / Quotation Processing... . . . . . . . . . . . . . . . .144Creating a Purchase Order with Reference ... . . . . . . . . . . . . . . . . . . .165Purchasing Info Record ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .181Material Valuation Basics .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .199Stock Types, Valuation, GR in Warehouse ... . . . . . . . . . . . . . . . . . . . .209Invoice Verification and Delivery Costs .. . . . . . . . . . . . . . . . . . . . . . . . . .236

Unit 4: Procurement of Consumable Material .................... 263Consumable Material - Overview ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .265Purchase Requisition... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .273Purchase Order and Order Acknowledgement .. . . . . . . . . . . . . . . . .292Valuated and Non-Valuated Goods Receipts .. . . . . . . . . . . . . . . . . . .307Blanket Purchase Order .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .329

Unit 5: Procurement of External Services......................... 353Service Master Record and Conditions ... . . . . . . . . . . . . . . . . . . . . . . . .354Ordering Services... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .365Service Entry and Invoice Verification... . . . . . . . . . . . . . . . . . . . . . . . . . .373

Unit 6: Reporting and Analysis Functions ........................ 397Standard Reports .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .398

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Contents TSCM50

Logistics Information System (LIS) .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .416

Unit 7: Basics of Consumption-Based Planning ................ 439Overview of Material Requirements Planning... . . . . . . . . . . . . . . . . .441Overview of MRP Procedures... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .447Material Master Record ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .454Reorder Point Planning ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .470

Unit 8: Planning run .................................................... 489Basics of the Planning Run ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .491Executing the Planning Run ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .499Planning Result . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .514Planning Evaluation ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .525Lot-Size Calculation ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .546

Unit 9: Optional: Mini Case Study .................................. 567Automated Procurement Process ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .568

Appendix 1: Important Menu Paths .............................. 605

Index ....................................................................... 613

vi © 2011 SAP AG. All rights reserved. 2010

Course OverviewThis course introduces the external procurement process with SAP ERP. Duringthe course, you will go through the entire procurement process with its typicalsteps - purchase order, entry of goods receipt, and entry of incoming invoice- several times. In doing so, you will focus on different aspects and becomeacquainted with additional functions. You will also acquire a basic knowledge ofrequirements planning.

The first unit of this course gives you an overview of the fundamental objects ofthe procurement process. You will familiarize yourself with the organizationallevels and how the EnjoySAP transactions operate for the procurement process.

This is followed by a unit covering the theme of master data and three unitsintroducing the various processes of external procurement. The course concludeswith a unit that discusses different options for reporting and analysis, and twounits on material requirements planning.

Target AudienceThis course is intended for the following audiences:

• Solution consultants responsible for implementing procurement with SAPERP or SAP SCM

Course PrerequisitesRequired Knowledge

• Basic knowledge and experience of procurement• Sound knowledge of the Microsoft Windows operating system• E-learning course SAP125 (SAP Navigation 2005), e-learning course

TERP41 (SAP ERP: Introduction to Processes in Procurement), orcomparable knowledge

2010 © 2011 SAP AG. All rights reserved. vii

Course Overview TSCM50

Course GoalsThis course will prepare you to:

• Name the basic organizational levels, master data, and functions of the SAPSystem for the procurement processes in the supply chain.

• Perform a procurement process for stock material in the SAP System.• Replicate a procurement process for materials for direct consumption in

the SAP System.• Carry out a procurement process for services in the SAP System.• Deploy selected automation options in the procurement process.• Carry out analyses in the area of external procurement processes.• Explain the materials planning process in Materials Management.• Describe automation of the procurement process (optional).

Course ObjectivesAfter completing this course, you will be able to:

• Create, change and display material master records and vendor master records• Create, change, and display purchase requisitions, requests for quotations,

contracts, and purchase orders• Enter goods receipts and incoming invoices and display and analyze the

documents generated when they are posted• Distinguish between material valuation according to the moving average

price procedure and valuation according to the standard price procedure• Describe and understand the procurement process for services• Carry out simple evaluations in the SAP System• Perform and evaluate a planning run• Describe and perform simple automation of the procurement process

(optional)

viii © 2011 SAP AG. All rights reserved. 2010

TSCM50 Course Overview

Curriculum Path

Figure 1: Basic Training for an ERP Procurement Solution Consultant

2010 © 2011 SAP AG. All rights reserved. ix

Course Overview TSCM50

x © 2011 SAP AG. All rights reserved. 2010

Unit 1The Procurement Process: Basics

Unit OverviewThis unit deals with the concept of organizational levels for mapping the companystructure in the SAP system. It also introduces a simple procurement processwith its elements: purchase order, goods receipt, and invoice verification. Thiswill familiarize you with the EnjoySAP interfaces of the purchase order, goodsreceipt, and invoice receipt transactions.

Unit ObjectivesAfter completing this unit, you will be able to:

• Describe the various external procurement processes• List the organizational levels relevant for the procurement process in the

SAP system• Explain the relationships between these organizational levels• Name various documents to which you can make reference when creating

a purchase order• Name the most important elements of a purchase order• Enter and issue a simple purchase order• Explain the most important effects of a goods receipt against a purchase order• Enter a simple goods receipt with reference to a purchase order• Name the most important elements of a material document• Name the most important information given in an invoice• Carry out a simple invoice verification process with reference to a purchase

order• Explain the most important effects of entering an invoice against a purchase

order

Unit ContentsLesson: Procurement Process and Organizational Levels .. . . . . . . . . . . . . . . . . .3Lesson: Purchase Order Entry – Basics.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Procedure: Create a Purchase Order.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24Procedure: Issue Message Manually for Purchase Order .. . . . . . . . . . . . 27

2010 © 2011 SAP AG. All rights reserved. 1

Unit 1: The Procurement Process: Basics TSCM50

Exercise 1: Purchase Order Entry – Basics .. . . . . . . . . . . . . . . . . . . . . . . . . . . . 29Lesson: Goods Receipts Entry – Basics.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Procedure: Enter Goods Receipt for Purchase Order .. . . . . . . . . . . . . . . . . 41Procedure: Display Material Document and Associated AccountingDocument.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43Exercise 2: Goods Receipt Processing - Basics .. . . . . . . . . . . . . . . . . . . . . . . 45

Lesson: Invoice Entry – Basics .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51Procedure: Invoice Entry .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56Exercise 3: Invoice Verification - Basics.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59


TSCM50 Lesson: Procurement Process and Organizational Levels

Lesson: Procurement Process and OrganizationalLevels

Lesson OverviewThis lesson provides an overview of the various forms of external procurementand of the organizational levels necessary for mapping a procurement process.

Lesson ObjectivesAfter completing this lesson, you will be able to:

• Describe the various external procurement processes• List the organizational levels relevant for the procurement process in the

SAP system• Explain the relationships between these organizational levels

Business ExampleMaterials are procured in your company by means of various channels - partlyfrom external vendors and partly from other branches of your company. Thedepartments involved in these procurement processes are purchasing, warehousingand invoice verification. These are organized on a regional and functional basis.As a member of the project team, you are examining how these procurementprocesses and the necessary company structure are represented in the SAP system.

External Procurement ProcessThe external procurement of materials is based on a cycle of general activities. Indetail, a typical procurement process includes the following phases:



Figure 2: Procurement Cycle

Determination of requirements: The responsible department can manually createa purchase requisition to inform purchasing about material requirements. If youhave set a material requirements planning (MRP) procedure for a material in thematerial master, the SAP system automatically generates a purchase requisition.

Determination of source of supply: As the buyer, you are supported inthe determination of possible sources of supply. You can use the source ofsupply determination to create requests for quotation (RFQs) and then enter thequotations. In addition, you can refer to purchase orders, contracts, and conditionsthat already exist in the system.

Vendor selection: Price comparisons between the various quotations makes iteasier for you to select vendors. Rejection letters can be sent automatically.

Purchase order handling: Similar to purchase requisitions, you can createpurchase orders manually or let the system create them automatically. When youcreate purchase orders, you can copy data from other documents (such as purchaserequisitions or quotations) to reduce the amount of entries that need to be made.You also have the option of working with outline agreements.

Purchase order monitoring: You can monitor the processing status of thepurchase orders in the system. For example, you can determine whether a deliveryor invoice has already been received for a purchase order item. You can remindvendors about outstanding deliveries.



Goods receipt: When you enter inbound deliveries in the system, you refer tothe associated purchase order. This reduces the amount of entries that need tobe made and allows you to check whether the goods and quantities deliveredmatch the purchase order. The system also updates the purchase order historyof the purchase order.

Invoice verification: When entering invoices, you refer to the previous purchaseorder or delivery so you can check the calculations and the general accuracy ofthe invoice. The availability of purchase order and goods receipt data means thatyou can be informed of quantity and price variances.

Payment processing: Vendor debts are paid using the payment program. Theaccounting department is responsible for running this program on a regular basis.

As well as the "normal" procurement process described above, various otherspecial procurement processes are also possible. What follows is a briefintroduction to

• Stock transfer with stock transport orders• Subcontracting• Vendor consignment

Note: You can find further information about special procurementprocesses in purchasing in the SAP documentation under SAP ERPCentral Component → Logistics → Materials Management (MM) →Inventory Management (MM-IM) → Managing Special Stocks.

Stock transfer with stock transport ordersWith this type of procurement, goods are procured and delivered within onecompany. The plant that requires the materials orders the material from anotherplant that can supply the materials. Therefore, this stock transport process involvesnot just inventory management but also purchasing in the receiving plant.



Figure 3: Stock Transfer with Stock Transport Order

The process begins in location 1 (the receiving plant) with the creation of a stocktransport order in purchasing. A goods issue referencing this stock transport orderis then entered in location 2 (the supplying plant). Firstly, the quantity is managedin a special stock, the Stock in transit of the receiving plant. The process finisheswith the goods issue being posted to the stock transport order in the receivingplant. As this is done, the quantity is transferred from stock in transit to storagelocation stock for the plant.

Hint: You can use only inventory management functions to map stocktransfers of materials between plants without stock transport orders.

SubcontractingWith this process your company orders material from an external vendor. Unlike anormal external procurement process, your company provides the vendor (thatis the subcontractor) with some or all the components for the production of thematerial.



Figure 4: Subcontracting

The process has the following characteristics:

You order the end product with a subcontract purchase order. This purchase ordercontains not only information about the material to be delivered, but also detailsabout the components to be made available to the subcontractor.

These components must then be provided for the subcontractor. This provision ismapped in the system by transfer posting. Materials that have been provided arephysically no longer in your company but are nevertheless managed in your stocksas they still belong to you. The information is shown under the special stock typeStock of material provided to vendor.

When the subcontractor has completed its service, it delivers the finished or refinedmaterial. The goods receipt is also entered here with reference to the (subcontract)order. This means that the receipt of the end products and also the consumption ofcomponents from the stock of material provided to the vendor are correctly posted.Finally, the subcontractor writes an invoice for the service rendered.



Vendor consignmentThis form of consignment means that a vendor provides you with material thatyou store but you do not yet need to pay for. The vendor remains owner of thematerial until you remove something from the consignment store. Only then doesa liability arise for the vendor. Settlement for these withdrawals is due accordingto agreed periods; for example, monthly.

Figure 5: Vendor Consignment

Before you can procure a material from a vendor for a consignment, you need toagree a price for the material. This price information is stored in what is known asa consignment information record in the system. Only then can the consignmentstore for this material be filled in your company.

You can request the material from your vendor using a consignment order.When the material is delivered, the goods receipt is posted with reference to theconsignment order. This is the completion of the procurement process, as paymentis required for the material after withdrawal and not after supply.

The SAP system contains a special function for settlement of liabilities resultingfrom withdrawals from consignment stock. A credit memo is produced as a resultof the procurement process and an appropriate message is generated for the vendor.



Hint: You control the procurement process you want to use with apurchase order – or more precisely, with a purchase order item – usinga special indicator known as an Item category.

Hint: You can set all the special procurement processes described as the“standard procurement process” for a material so that purchase requisitionsare produced automatically with the necessary item category using MRP.

Organizational Levels in the Procurement Process

Figure 6: Organizational Levels in the Procurement Process

In the SAP system, organizational levels represent the legal or organizationalstructures of a company. The determination of the organizational levels is animportant procedure in your project. In fact, it is an essential prerequisite for allsubsequent activities.



First, analyze the structural and process organizations in your enterprise andthen reconcile them with the SAP structures. Once you have decided on anorganizational structure, considerable effort would be required to change it again.

Note: The organizational levels are defined and assigned in Customizingfor the Enterprise structure.

Client, Company Code, Plant, and Storage LocationThe client is a unit within an SAP system that is self-contained both in legal andorganizational terms and in terms of data, with separate master records and anindependent set of tables. From a business viewpoint, the client could represent acorporate group, for example.

The client is the highest hierarchical level in the SAP system. Specifications ordata that you make and enter at this level apply to all company codes and all otherorganizational units. Therefore, you do not have to enter the specifications and dataat client level more than once in the system. This ensures a uniform data status.

Access authorization is assigned on a client-specific basis. A user master recordmust be created for every user for the client in which he or she wishes to work. Ifthe Client field has not been prepopulated, each user must specify a client key whenlogging onto an SAP system. In this way, the user specifies the client in which heor she wishes to work. All user input is stored, separated by client. Likewise, theprocessing and evaluation of data is carried out on a client-specific basis.

A client is uniquely defined in the system by a three-digit numeric key.

The company code is the smallest organizational unit of external accounting forwhich a complete, self-contained bookkeeping system can be replicated. Thisincludes the entry of all events that require posting to the accounts and the creationof a complete audit trail for balance sheets and profit and loss statements. Acompany code represents an independent unit producing its own balance sheet: acompany within a corporate group (client), for example.

You can set up several company codes in one client to keep separate sets ofaccounting books. You can use a special Customizing function to copy a companycode. In the process, company-code-dependent specifications are adopted foryour new company code.

A company code is defined in the system by means of a four-characteralphanumeric key that is unique in the client.

The plant is an organizational unit within logistics that subdivides an enterprisefrom the viewpoints of production, procurement, plant maintenance, and materialsplanning.



A plant may represent a variety of entities within a firm, such as:

• Production facility• Central issuing storage location• Regional sales office• Corporate headquarters• Maintenance location

When creating a new plant, you can use the plant copy function. In the process,the system takes all entries in the plant table and all Customizing and systemtables that depend on it and in which the plant occurs as the key.

A plant is defined in the system by means of a four-character alphanumeric keythat is unique to it in the client.

The storage location is an organizational unit that facilitates the differentiationof stocks of materials within a plant. Inventory management on a quantity basisis carried out in the plant at storage location level. The physical inventory isalso carried out at this level.

A storage location is defined by means of a four-character alphanumeric key thatis unique to it in the plant.

Figure 7: Organizational Levels in Inventory Management



The enterprise structure is created by the assignment of organizational levelsto each other. Therefore, a client may contain several company codes, and acompany code may contain several plants. However, a plant can only ever belongto one company code.

Hint: Since the key of a plant is unique in a client, and a plant can onlybelong to one company code, by specifying the plant, you simultaneouslyspecify the company code.

Several storage locations may be assigned to a plant, but a specific storage locationcan only belong to one plant. Storage locations are defined especially for a plantand are therefore assigned to this plant. The key of a storage location need onlybe unique within a plant. Within a client, the same key can be used for differentstorage locations, since when you specify a storage location you always have tospecify the plant too.

Purchasing Group and Purchasing OrganizationA purchasing group is a key for a buyer or a group of buyers who is/areresponsible for certain purchasing activities. The purchaser group is internallyresponsible for the procurement of a material or a class of materials, and externallyit usually supplies the contact person for vendors. The purchasing group is notaligned to other units in the company structure.

Note: Purchasing groups are not defined in Customizing for theEnterprise Structure, but in Customizing under Materials Management→ Purchasing → Create Purchasing Groups.

The purchasing organization is an organizational unit within logistics thatsubdivides the enterprise according to the purchasing requirements. A purchasingorganization procures materials or services, negotiates conditions of purchase withvendors, and assumes responsibility for these transactions.

You can incorporate purchasing into the company structure by assigning thepurchasing organization to a company code and to plants. This means thatyou can take into account whether purchasing is organized on a centralized ordecentralized basis in your company. You can have a combination of these twoorganizational forms.

You can assign several purchasing organizations to one company code. However,a specific purchasing organization can only belong to one company code.You can decide not to assign the purchasing organization to a company code



(cross-company-code purchasing). There is an m:n relationship betweenpurchasing organizations and plants. In other words, you can assign several plantsto one purchasing organization, and one plant to several purchasing organizations.

The different assignment options between company code, plant, and purchasingorganization yield the following “categories” of purchasing organization.

Figure 8: Plant-Specific Purchasing Organization

In plant-specific procurement, a purchasing organization is responsible forprocuring materials for just one plant.

Note: In this case, you make the following assignments in Customizingfor the Enterprise Structure:

• Assign the purchasing organization to a company code underAssignment → Materials Management → Assign purchasingorganization to one company code.

• Assign just one plant of the company code to this purchasingorganization under Assignment → Materials Management → Assignpurchasing organization to plant.



Figure 9: Cross-Plant Purchasing Organization

If a purchasing organization is to procure materials and services for several plantsbelonging to a company code, you can set up a cross-plant purchasing organizationwithin the company code. To do so, you assign the purchasing organization to therequired company code. After this, you assign the plants for which the purchasingorganization is to be responsible.

Hint: If the purchasing organization is to be responsible for all the plantsof a company code, it is not enough to make this assignment betweencompany code and purchasing organization alone. You must alwaysassign the plants to a purchasing organization which procures for them.

However, assignment to a company code is not necessary (see below).



Figure 10: Cross-Company-Code Purchasing Organization

If you want to set up cross-company-code purchasing, you must not assign thepurchasing organization to any company code(s) in Customizing. Then, when youcreate a purchase order, the system will ask you to enter the company code forwhich you want to procure the material.



Lesson Summary

You should now be able to:• Describe the various external procurement processes• List the organizational levels relevant for the procurement process in the

SAP system• Explain the relationships between these organizational levels


TSCM50 Lesson: Purchase Order Entry – Basics

Lesson: Purchase Order Entry – Basics

Lesson OverviewThis lesson introduces the purchase order as an important element of the externalprocurement process. It provides an introduction to both the structure and thecreation and issue of purchase order documents in the SAP system.


• Name various documents to which you can make reference when creatinga purchase order

• Name the most important elements of a purchase order• Enter and issue a simple purchase order

Business ExampleIn your company, materials must be procured from external vendors. As anemployee in Purchasing, you need to know about the procurement process, inparticular, the purchase order.

Purchase Order DetailsThe following explains the first step of a simple procurement process. The processstarts with the creation of a purchase order using transaction ME21N (see graphic“Basics of Procurement: Purchase Order”). Here we can assume that the importantdata, such as vendor and material, already exist in the system.



Figure 11: Basics of Procurement: Purchase Order

A purchase order is a formal request to a vendor to supply you with goodsor services with the conditions stated in the purchase order. You specify inthe purchase order whether the material is delivered for stock or for directconsumption (for example, cost center, asset or project). The goods receipt andinvoice verification are usually carried out on the basis of the purchase order.

Figure 12: Purchase Order

You can minimize data-entry time by creating purchase order items with referenceto an existing purchase order, purchase requisition, quotation or contract.



You can also enter a purchase order without reference to preceding documents inthe system. When you enter the purchase order data, the system suggests defaultvalues. For example, it suggests the ordering address, as well as the terms ofpayment and freight (incoterms) from the vendor master record. If a materialmaster record exists, the material short text and the material group is transferredautomatically. If a purchasing information record already exists in the system, aprice can be proposed for the purchase order.

You either send the purchase order to a vendor or you carry out a stock transportorder in another plant belonging to your company or group.

Figure 13: Purchase Order Format

Like other purchasing documents in the SAP system, the purchase order consistsof a document header and one or more items.

The document header contains information that refers to the entire purchase order.Examples include the document currency, the document date, and the termsof payment.

The item part of the document contains data describing the materials or servicesordered. You can maintain additional information for each item (for example,delivery schedules or item-based text).

In a purchase order, you can procure materials or services for all plants attached toyour purchasing organization.



Figure 14: Purchase Order Transactions – ME21N, ME22N, ME23N



The purchase order transaction (ME21N) is a single-screen transaction, in otherwords, you can maintain all the relevant data on a central screen. The single-screentransaction is divided into four screen areas:

• Header: This is where you enter all data relevant for the whole order, forexample, the vendor address or the organizational levels.

• Item overview: In this list, you can enter the items with the most importantdata, such as material, quantity, delivery date, price, and plant.

Hint: Since SAP ERP 6.0, it is also possible to integrate Web-basedcatalogs in purchasing. This means the item data can also be copiedfrom a catalog.

If you want to connect a catalog, the catalog needs to comply withthe Open Catalog Interface (OCI) standard. You can integrate justone catalog (see Notes 1092922 and 1092923).

For more information about catalog connections, see the SAPdocumentation under SAP ERP Central Component → Logistics →Materials Management (MM) → Purchasing (MM-PUR) → FurtherFunctions → Integration of Web-Based Catalogs in Purchasing.

• Item detail: Here you enter additional data, if desired or necessary, for aparticular item, such as additional texts, account assignment specifications,and confirmations.

• Document overview: In the document overview, you can display differentpurchasing documents, such as purchase orders, requests for quotations, andpurchase requisitions.

User-specific requirements can be taken into account with Personal settings.This way, each user can set his or her own default settings and specify that thedocument overview is set automatically when the transaction is started.

In addition, a help function can be displayed like the document overview. Youcan display or hide this help area by choosing (Help). If the help area is open,you can work in the transaction at the same time.



Figure 15: Purchase Order Transaction - Navigation

In the ordering transaction, you can open and close all screen areas individually,and thus influence the size of these screen areas. If you close the header and itemdetail, for example, the size of the item overview is then increased. The same goesfor the purchase order header, item overview and the item details, and also for thedocument overview and the help function.

If you close and then reenter the purchase order transaction, the screen is in thesame format as it was when you left it. If the document overview and the headerwere closed and the item overview and item detail were open, this same screenformat is displayed.

It does not matter which function you use to access the purchase order (create,change, display). You can switch between functions by choosing (Create) or

(Display/Change). By choosing the (Other Purchase Order) icon, you canalso branch directly to another purchase order or purchase requisition.

Enter names instead of numbers

For some fields in the purchase order, you can use both names and keys. This isvalid for the fields Vendor, Material, Material group, Plant and Storage location.If you enter part of the name, the system then proposes the corresponding data.



If the system cannot determine the data uniquely, you will receive a list of thepossible entries to choose from. If, for example, you enter “son” in the Vendorfield, the system would propose vendors Johnson, Peterson, Jackson, and so on.

Hint: For the Vendor and Material fields, you can deactivate thisintelligent search help under Personal settings on the Basic settings tabpage.

Hold or Park purchase orders

You can use the Hold function to store incorrect or incomplete purchase orders inthe SAP System. You can then continue processing (i.e. correct and/or complete)this "held" purchase order at a later point in time. The purchase order that is onhold is not transmitted to the vendor, although it is relevant to materials planningand controlling.

The following functions are not possible in the case of a purchase order that ison hold:

• Message output (printing or transmission of the PO in message form)• Release (approval, clearance for issue)• Posting of a goods receipt• Posting of an invoice

As of SAP ERP 6.0 Enhancement Package 5, you can also Park a purchaseorder. If you want to create a purchasing document, the document may becomplete from the materials management point of view, but some financialinformation may still be missing at that point in time (FI view). In this case,you can then provisionally save (park) the purchasing document and continueprocessing it at a later point in time before saving.

The following functions are not possible in the case of a parked purchase order:

• Posting of a goods receipt• Posting of an invoice

Hint: If you want to use the Park function, you must activate the businessfunction LOG_MM_CI_3 and activate it on client level in Customizingunder Materials Management → Purchasing → Environment Data →Activate Hold an Park in Purchasing Documents.



Create a Purchase Order

Figure 16: Enter Purchase Order

1. From the SAP Easy Access screen, choose Logistics → MaterialsManagement → Purchasing → Purchase Order → Create →Vendor/Supplying Plant Known (ME21N).

Hint: Before you start to enter purchase order data, maintainyour Personal settings (as long as you have not already madecorresponding entries in your user parameters).

In Personal settings, you can specify default values for theorganizational data, such as defaults for the purchasing organizationand the purchasing group. You can also specify default values forsuch items as the plant and the delivery date. Then you will nothave to enter these values every time you create a purchase order.If you only want to change the default values for the items, you canalso call them using the Default Values button located below theitem overview.

The personal settings take priority over the user parameters.

2. Choose the order type, for example, standard purchase order.

Continued on next page



3. Enter the vendor you want to order from.

4. In the header data on the Org. Data tab, enter the organizational levels Purch.Org., Purch. Group and Company Code. The data can also be determined, asdescribed above, from your default values or the user master record.

5. Enter the data for the individual items in the Item overview. You must specifythe material, quantity required, delivery date and the price. The plant that isto receive the goods must be entered at item level.

If there is a purchasing information record for the material and the vendor, itsnet price is suggested. If you have not entered a delivery date, it is calculatedfrom the planned delivery time in the info record.

Hint: To copy a material from a catalog, choose (Catalog) tobranch to a catalog. The way you navigate in the catalog dependson the catalog you have chosen.

6. Once you have entered all the data, choose (Save) to create the purchaseorder. The system automatically assigns a purchase order number.

MessagesYou can issue all purchasing documents as messages. Each time you create anRFQ, a purchase order, a contract, or a scheduling agreement, the system creates amessage from the document affected. This message is then placed in the messagequeue. The message queue contains all messages that have not yet been transferredto the vendors. To issue the message (by printing, by e-mail, fax or EDI) fromthe message queue, you have the following options:

• Issue immediately

The system issues the message directly from the queue, in other words, assoon as you save the document.

• Issue later

You either schedule a background job (for the program RSNAST00) thatprocesses the message queue in determined intervals, or you start the issuedirectly from the purchasing menu. As a rule, you issue the messages usingthe background job and start the issue manually only as an exception (suchas for rush orders).



Figure 17: Issue a Message

For the message issue, you can specify which header texts and item-based textsthe system issues. The header text is printed at the top of the purchase order andcontains general information. Item texts describe a purchase order item in moredetail. You can also include and issue standard texts. In the ordering transactionME21N, you can use Print preview to display a document on your screenbefore you print it.

Note: For more information on issuing purchasing documents, see theSAP documentation under SAP ERP Central Component → Logistics →Materials Management (MM) → Purchasing (MM-PUR) → EnteringText, Printing and Transmitting Documents.



Issue Message Manually for Purchase OrderPrerequisites

• Messages must be available in the message queue.• The purchasing documents that form the basis of the messages must have

been released.

Procedure1. From the SAP Easy Access screen, choose Logistics → Materials

Management → Purchasing → Purchase Order → Messages →Print/Transmit (ME9F).

This takes you to the message selection screen.

2. Enter the selection criteria for the documents to be issued.

Hint: If you want to select unprocessed messages, choose theprocessing status 0 = Not processed.

3. Choose Program → Execute. The system displays a list of messages thathave not yet been issued, according to your selection.

4. Select the documents for issue.

5. Choose Edit → Output message.



Exercise 1: Purchase Order Entry – Basics

Exercise ObjectivesAfter completing this exercise, you will be able to:• Create and process purchase orders for stock material• Display and print the purchase order print form

Business ExampleThe process for procurement of stock material at your company includes creatinga purchase order, posting the goods receipt, and processing the vendor invoice.As an employee in the purchasing department, familiarize yourself with purchaseorder processing for stock material.

Task: Creating and Outputting a Purchase OrderThe warehouse stock of standard taillights T-M500A## must be replenished.Order 100 of these taillights from the vendorMotolux GmbH Gr.##.

1. Maintain personal settings

Before you create the purchase order, maintain your personal default valuesin the purchase order transaction.

Define the following default values for the organizational data and savethese settings:

Purchasing Organization: IDES Deutschland (1000)

Purchasing Group: SCM500 - ## (T##)

Company Code IDES AG (1000)

Since you do not require the online help at the moment, close the help area.

2. Create a purchase order

Order 100 pieces of the material T-M500A## (standard taillight-##) forimmediate delivery from the vendor T-K500A## (Motolux GmbH Gr.##).

The material is required for plant 1000 (Hamburg plant) and is to be stored instorage location 0001.

Accept the default purchase order price suggested by the system.

Purchase order number: ______________________

3. Display the purchase order




Display your purchase order again and check that you have entered the datacorrectly.

Use the document overview and choose the selection variant My purchaseorders.

4. Output messages

Display your purchase order in the print preview. When you are sure youhave selected the correct purchase order and that the data is correct, print thepurchasing document. The system automatically selects the output deviceyou set in Message Determination (for example, printer or fax).

5. Maintain a list of favorites

Since you work with purchase orders frequently, it is a good idea to includethese transactions in a list of favorites. Include transaction ME21N in yourfavorites.



Solution 1: Purchase Order Entry – BasicsTask: Creating and Outputting a Purchase OrderThe warehouse stock of standard taillights T-M500A## must be replenished.Order 100 of these taillights from the vendorMotolux GmbH Gr.##.


Before you create the purchase order, maintain your personal default valuesin the purchase order transaction.

Define the following default values for the organizational data and savethese settings:

Purchasing Organization: IDES Deutschland (1000)

Purchasing Group: SCM500 - ## (T##)

Company Code IDES AG (1000)

Since you do not require the online help at the moment, close the help area.

a) Choose Logistics → Materials Management → Purchasing →Purchase Order→Create→ Vendor/Supplying Plant Known (ME21N).

b) Choose Personal settings.

c) Choose the Default values tab, and then PO header. Enter the defaultvalues.

d) Choose (Save) to save your personal default values. These defaultvalues are used in the purchase order until you change them again.

e) To close the help area, choose Close.

f) Do not exit the purchase order transaction ME21N after this step.

2. Create a purchase order

Order 100 pieces of the material T-M500A## (standard taillight-##) forimmediate delivery from the vendor T-K500A## (Motolux GmbH Gr.##).

The material is required for plant 1000 (Hamburg plant) and is to be stored instorage location 0001.

Accept the default purchase order price suggested by the system.




Purchase order number: ______________________

a) Enter the following data:

Field name Field value

Vendor T-K500A##

Item Overview

Material T-M500A##

Quantity 100

Delivery Date <Today’s date>

Plant 1000

Storage Location 0001

b) Choose (Save) and make a note of the PO number.

c) Do not exit the purchase order transaction ME21N after this step.


Display your purchase order again and check that you have entered the datacorrectly.

Use the document overview and choose the selection variant My purchaseorders.

a) If the document overview is not displayed, choose Document overviewon.

b) Choose (Selection variant) and then My purchase orders.

c) To display the purchase order, double-click on the document numberfor your purchase order in the document overview.

4. Output messages




Display your purchase order in the print preview. When you are sure youhave selected the correct purchase order and that the data is correct, print thepurchasing document. The system automatically selects the output deviceyou set in Message Determination (for example, printer or fax).

a) Choose Logistics → Materials Management → Purchasing →Purchase Order → Messages → Print/Transmit (ME9F).

b) Adopt the selection criteria proposed by the system and choose(Execute).

c) In the overview, select your document and choose Display message.

d) Choose (Back) to display the list of messages to be issued again.

e) Then select your document again and choose Print/transmit.

5. Maintain a list of favorites

Since you work with purchase orders frequently, it is a good idea to includethese transactions in a list of favorites. Include transaction ME21N in yourfavorites.

a) The following are ways of including transactions in the favorites:

• Drag and drop: Drag the required transaction from the menuto your list of favorites.

• Right mouse button: Right-click the required transaction andchoose Add to Favorites.

• Pushbutton in the toolbar: When you choose (Add toFavorites), the selected entry is copied.

• Transaction code: Select Favorites in the standard toolbar,right-click and choose Insert transaction, and enter the transactioncode ME21N.

Hint: Note that the format of the list of favorites variesdepending on the procedure you use.

b) If you would like a different description for the entries in your list offavorites, you can change the text of the entry. Select the relevantfavorites and choose Favorites → Change.



Lesson Summary

You should now be able to:• Name various documents to which you can make reference when creating

a purchase order• Name the most important elements of a purchase order• Enter and issue a simple purchase order


TSCM50 Lesson: Goods Receipts Entry – Basics

Lesson: Goods Receipts Entry – Basics

Lesson OverviewThis lesson deals with the entry of a goods receipt against a purchase order. In thiscontext, you will be introduced to the term “movement type”.


• Explain the most important effects of a goods receipt against a purchase order• Enter a simple goods receipt with reference to a purchase order• Name the most important elements of a material document

Business ExampleIn your company, materials are procured from external suppliers. As a member ofthe warehouse staff, you are examining how deliveries of ordered materials areentered in the SAP system and what effects these goods receipts have with regardto the purchase order. Delivered goods are usually put away in the warehouse.

Goods Receipt as Part of the Procurement ProcessThe second step of a simple external procurement process is the goods receipt.The latter results from the issue of a purchase order for the goods to a vendor.Like the purchase order process, the goods receipt process is mapped in the SAPsystem by means of a document.

Figure 18: Basics of Procurement – Goods Receipt



When goods are delivered against a purchase order, it is important for alldepartments concerned that you enter this goods receipt with reference to thepurchase order. When you record the receipt of goods, the system suggests allopen items from the purchase order. This facilitates both the entry and checking ofincoming goods. Among other things, you can check whether:

• The right material has been delivered• The right quantity has been delivered or whether there has been over- or

underdelivery• Perishable goods are within their minimum shelf life (the shelf life expiration

date check must be active in this case).

You can enter several goods receipt items against a purchase order item in oneoperation. This is advisable if the material is delivered in several batches or isdistributed to several storage locations.

When you post a goods receipt with reference to a purchase order, the PO historiesof the relevant purchasing document items are updated automatically. Thisenables the buyer to identify outstanding deliveries and urge the vendor to speedthings up if necessary.

Figure 19: Goods Receipt

When you post the receipt of goods into the warehouse or stores, the systemgenerates a material document. This document contains information on thematerial delivered and the relevant quantity. The system records the relevantplant storage location in which the material is put away (placed in storage). If thegoods receipt is valuated, an accounting document is generated in addition. Thiscontains details of the accounting effects of the material movement.



Goods ReceiptWhen entering a goods movement you must indicate a movement type. Themovement type is a three-character key used to differentiate between goodsmovements. Examples of such goods movements are goods receipts, goods issuesor transfer postings.

Figure 20: Movement Types – Examples

The movement type assumes important control functions in inventorymanagement. It plays a central role in automatic account determination in the SAPsystem. Together with other influencing factors, the movement type determineswhich stock or consumption accounts are updated in financial accounting (amongother things). The movement type also affects the screen layout for documententry or the updating of the quantity fields.



Figure 21: Goods Movement – Transaction MIGO



The transaction for entering goods movements (MIGO) is a single-screentransaction. It is subdivided into the screen areas overview tree, header data, itemoverview, and item detail data. In the header and detail areas, the information isgrouped on individual tab pages.

• Overview tree: Your last ten documents for purchase orders, orders,reservations, material documents, and held data are displayed in thisarea. The system automatically inserts these documents into the overviewtree. These are documents (purchase orders, orders, reservations, materialdocuments) that you referenced when posting a goods movement and thematerial documents generated in the process. You thus always have anoverview of the activities you executed most recently. When working withthe document overview, you should note that it cannot be influenced bythe user.

Hint: The document overview is not intended for documentsearches. You can use Search for Document for this purpose.

Hint: From the document overview, you can choose only materialdocuments to be displayed.

• Header data: The header data contains information that refers to thecomplete material document, such as the document and posting date, thedocument header text, the person who created it, and the entry date. You alsoaccess the accounting document from the header data.

• Item overview and item details: The document items are listed in the itemoverview. By clicking on the number of an item in the overview, you openup the detail data for the item. The details include information on referencedocuments and the account assignment.

With the exception of the item overview, you can open and close the screen areasindividually. You show or hide the overview tree using the Show/Hide Overviewbutton. For the header data and item details, use pushbutton Head. Data orDetail Data to open the screen areas and to close them. You can also open

the detail data of an item by clicking the item number in the item overview.

Caution: Once you have opened the detail data for an item, you can onlymake changes to this item in the detail data, not in the item overview.

Opening or closing screen areas influences the size of other areas. If you close theheader and detail data, for example, the size of the item overview increases. Eachtime you invoke the transaction, the screen appears in the setting you chose in thelast session prior to exiting the transaction.

To terminate processing in MIGO, you do not have to leave the transaction.Simply choose (Restart) and you can start again.



You can also maintain personal default values for the entry of goods movementsby choosing Settings → Default values. A separate dialog box is opened, in whichyou specify your personal default values (for the plant and the storage location,for example).

When you use transaction MIGO, first specify which action you wish to perform(Transaction field). If you are entering a goods movement, specify whether it isa goods receipt, a goods issue, a return delivery, or a transfer posting. If youwish to display or cancel the material document from a posting you have alreadymade, you can also do this with transaction MIGO by choosing the transactionswith the same name. Which documents you can reference, or whether a referenceis unnecessary, depends on the transaction chosen. The following proceduresdescribe the entry of a simple goods receipt against a purchase order, and how youcan subsequently display the material document generated in the process.



Enter Goods Receipt for Purchase Order

Figure 22: Enter GR for a Purchase Order

1. From the SAP Easy Access menu, choose Logistics → MaterialsManagement → Inventory Management → Goods Movement → GoodsMovement (MIGO).

You also can choose Logistics → Materials Management → InventoryManagement → Goods Movement → Goods Receipt → For Purchase Order→ GR for Purchase Order (MIGO_GR).

2. Choose the transaction Goods Receipt and Purchase Order as reference.

3. Check the default value for the movement type and, if necessary, change itto 101.

4. Enter the purchase order number.

Hint: You can also search for the purchase order. To do so, choose(Find Purch. Order).

5. Choose (Execute) to copy the items from the purchase order.

6. Enter the document date and the vendor's delivery note number on theGeneral tab page in the header data.




7. Select the items that were delivered using the OK indicator. If necessary,change the default quantity for the items and specify a storage location.

Caution: Once you have opened the detail data for an item, youcan only make changes to this item in the detail data, not in theitem overview.

8. Finally, post the goods receipt.



Display Material Document and Associated AccountingDocument

1. In the SAP Easy Accessmenu, choose Logistics →Materials Management →Inventory Management → Goods Movement → Goods Movement (MIGO).

You also can choose Logistics → Materials Management → InventoryManagement → Goods Movement → Goods Receipt → For Purchase Order→ GR for Purchase Order (MIGO_GR).

2. Choose Display and Material Document as reference document.

3. Enter the material document number and the document year. Choose(Execute) to display the material document.

You can also search for the material document (pushbutton (Search format. document)) or choose the material document number by double-clickingon one from the document overview.

Caution: Selecting a material document by double-clicking on thematerial document number in the document overview only functionsif you have chosen the transaction Display and Material Documentas reference beforehand.

4. To display the accounting document, open the header data and choose theDocument info tab page. Choose FI Documents. A dialog box appears, inwhich you can select the accounting document and display it by choosing

(Choose).



Exercise 2: Goods Receipt Processing -Basics

Exercise ObjectivesAfter completing this exercise, you will be able to:• Enter goods receipts against existing purchase orders• Check the update of the purchase order as a result of the goods receipt

Business ExampleAs an employee in the warehouse, you are responsible for entering goods receiptsin the SAP system. You enter the goods receipt with reference to your purchaseorder so that you can check whether the delivery matches up with the purchaseorder. When you enter the goods receipt, the system updates the purchase orderhistory, thus allowing the buyer to get information on the status of the deliverydirectly from the purchase order.

Task: Enter Goods Receipt and Display MaterialDocumentThe ordered standard taillights T-M500A## are delivered in good condition byMotolux GmbH Gr.##. Enter the goods receipt for this delivery.

1. Post goods receipt

When entering the goods receipt, reference the PO. Post the goods receipt tounrestricted-use stock at storage location 0001 (material stores) in plant 1000.

Take the delivered quantity and the delivery note number from the deliverynote.

Hint: When searching for your purchase order, note that the POnumber is not displayed in the overview for the goods receipttransaction prior to selection. Use the search function to find yourpurchase order.

Search for your PO number for vendor T-K500A## and materialT-M500A##, for example.




Figure 23: Delivery Note LS-A1

Post the goods receipt.

Material document number: ____________________

2. Display the material document

Display the material document for the goods receipt.

3. Display the purchase order history

Display the PO history for the purchase order against which you enteredthe goods receipt. Branch directly from the material document into thePO history. Check whether the PO history has been updated by the goodsreceipt. Compare the material document number from the PO history withyour material document number from step 1.

4. Extend the list of favorites

Include the transaction for goods movements in the list of favorites.



Solution 2: Goods Receipt Processing -BasicsTask: Enter Goods Receipt and Display MaterialDocumentThe ordered standard taillights T-M500A## are delivered in good condition byMotolux GmbH Gr.##. Enter the goods receipt for this delivery.

1. Post goods receipt

When entering the goods receipt, reference the PO. Post the goods receipt tounrestricted-use stock at storage location 0001 (material stores) in plant 1000.

Take the delivered quantity and the delivery note number from the deliverynote.

Hint: When searching for your purchase order, note that the POnumber is not displayed in the overview for the goods receipttransaction prior to selection. Use the search function to find yourpurchase order.

Search for your PO number for vendor T-K500A## and materialT-M500A##, for example.

Figure 24: Delivery Note LS-A1





Material document number: ____________________

a) Choose Logistics → Materials Management → Inventory Management→ Goods Movement → Goods Receipt → For Purchase Order →GR for Purchase Order (MIGO).

b) Choose the transaction Goods Receipt and the reference documentPurchase Order. Enter 101 as the default value for the movement type.

c) Choose (Find Purch. Order). Enter the following selection values:

Field name Field entry

Vendor T-K500A##

Material T-M500A##

Delivery Date <yesterday to today + 7 days>

d) Choose Find.

A separate screen area with the search result appears.

e) Select your purchase order and choose (Adopt).

Then close the search result ( (Close Search Result)).

f) Open up the header data and enter LS-A1## in the Delivery Note fieldon the General tab page.

g) Set the OK indicator for the item. Note that you can set the indicator inthe detail data only if the detail data area is open.

h) Choose Post and make a note of the material document number.


Display the material document for the goods receipt.

a) Choose the transaction Display to view your material documents. Thesystem then automatically displays Material Document as the referencedocument and proposes the number of your last material document.

b) Choose (Execute).

Hint: You can choose another material document either bydouble-clicking on a document from the overview or bychoosing (Search for mat. document).




3. Display the purchase order history

Display the PO history for the purchase order against which you enteredthe goods receipt. Branch directly from the material document into thePO history. Check whether the PO history has been updated by the goodsreceipt. Compare the material document number from the PO history withyour material document number from step 1.

a) Open up the item detail data (by clicking on the item number in theitem overview, for example).

b) Choose the Purchase Order Data tab page.

c) Choose (History) to display the PO history.

d) The material document numbers match.


Include the transaction for goods movements in the list of favorites.

a) Use one of the already familiar options:

• Drag and drop• Right mouse button• Pushbutton In the toolbar• Transaction code



Lesson Summary

You should now be able to:• Explain the most important effects of a goods receipt against a purchase order• Enter a simple goods receipt with reference to a purchase order• Name the most important elements of a material document


TSCM50 Lesson: Invoice Entry – Basics

Lesson: Invoice Entry – Basics

Lesson OverviewThis lesson deals with the checking and verification of a vendor's invoice forgoods that have been supplied against a purchase order.


• Name the most important information given in an invoice• Carry out a simple invoice verification process with reference to a purchase


order

Business ExampleThe procurement process ends with the entry of the vendor's invoice. You areresponsible for testing the functionality of Logistics Invoice Verification.

Invoice Receipt as Part of the Procurement ProcessThe entering of the invoice completes the procurement process which comprisespurchase order and goods receipt.

Figure 25: Procurement Basics – Invoice Receipt



Logistics Invoice Verification is part of Materials Management (MM). You use itto enter invoices and credit memos and check them for arithmetical correctness,and to make sure that you have been charged the right price for the right materialor service. When you post the invoice, the data from the invoice is saved in thesystem and both an invoice document and an accounting document are generated.The system updates the saved data from the invoice documents in materialsmanagement (PO history, for instance) and in financial accounting.

The functions of logistics invoice verification do not include the payment orevaluation of open liabilities. The relevant information for this is forwarded toother applications. Invoice verification therefore creates a link between materialsmanagement and external/internal accounting.

Figure 26: Invoice Receipt

When you enter an invoice with reference to a purchase order, the system proposesdata from the purchase order and the goods receipts for the purchase order (forexample, invoicing party, material, quantity still to be invoiced, expected amountper item, and payment terms). You can overwrite these default values if theinvoice actually submitted by the vendor contains other values. The system checkswhether your input is allowed. In doing so, it may issue warning or error messages.

If there are discrepancies between the purchase order or goods receipt and theinvoice (price or quantity differences for instance), the system warns the useraccordingly and, depending on the system settings, blocks the invoice so thatit cannot be paid.



Figure 27: Information in an Invoice

In invoice verification, you initially enter all the relevant data from the vendor's (=creditor's) invoice, such as gross amount, value-added tax, invoice date, reference(vendor's invoice number) and terms of payment. In subsequent processing steps,the system checks this data arithmetically and compares it with data that alreadyexists in the system from the purchase order document.

Note: The invoice document can be scanned and sent via workflow to thedepartment responsible for invoice verification. This is an important steptowards making the “paperless office” a reality.

Where possible, invoices should be posted with reference to a purchase order.This has the advantage that the system suggests the order prices from the purchaseorder document, and the goods receipt quantities from the GR documents relatingto the purchase order.



Figure 28: Invoice Verification with Reference to PO

You can also assign the invoice items to a purchase order using the number of thedelivery note or bill of lading, provided that these numbers were entered at thetime of goods receipt.

If an invoice is entered with reference to a purchase order, the items from the POare suggested together with their quantities that are still to be invoiced. The systemcalculates the quantities that are still to be invoiced as the difference between thequantity delivered and the quantity already invoiced. (For example, if 100 pc havebeen delivered and 60 pc already invoiced, 40 pc remain to be invoiced.) Thesystem also suggests the expected amount for the items. This is the product of thequantity to be invoiced multiplied by the order price.

If the vendor invoice values are different to the suggested values, the personentering the data must overwrite the suggested values with the figures from theoriginal invoice. If the discrepancies between the invoice values and the expectedvalues exceed specified tolerances, the invoice is automatically blocked forpayment (for example, if the invoice price varies from the PO price).

Invoice EntryThe transaction MIRO for entering invoices and credit memos in Logistics InvoiceVerification is a single-screen transaction. In the case of this transaction too,data is divided into header and item data. The following figure “Invoice Entry -Transaction MIRO” shows the individual screen areas. They are described inmore detail in the following.



Figure 29: Invoice Entry – Transaction MIRO

• Transaction: In this field, you indicate whether you are entering an invoice,a credit memo, or a subsequent debit or a subsequent credit.

• Header data: In this area you enter the header data of an invoice, forexample, the invoice number and date, the gross invoice amount and taxamount, the invoicing party, and the terms of payment.

• Assignment: Here you assign an ordering transaction to the invoice, so thatthe system proposes the invoice items to be processed.

• Invoice items: In this list you can check the proposed invoice items andchange them in line with the actual invoice. You can use different layouts tochange the display of the columns and their sequence.

• Vendor data: The detail data pertaining to the invoicing party derived fromthe vendor master record is shown here. Choose (Display vendor) tobranch directly to the vendor master record.

Hint: Vendor data is displayed only if you have entered an invoicingparty or referenced (created a link to) a purchase order.

• Balance: The balance and the invoice status are displayed here; for example,whether an invoice can be posted (green traffic light) or whether the invoicewas blocked for payment during posting (yellow traffic light).

• PO structure: In this area, the person entering the invoice can see thepurchase order histories for the PO items from the item overview.



Invoice Entry

Figure 30: Entering an Invoice Against Purchase Order

1. From the SAP Easy Access menu, choose Logistics → MaterialsManagement → Logistics Invoice Verification → Document Entry → EnterInvoice (MIRO).

Note: If you start the transaction MIRO for the first time, you mustspecify a company code in a dialog box.

2. Choose transaction Invoice.

3. In the document header on the Basic data tab, enter the document date, thenumber of the vendor invoice (reference), and the gross invoice amount, aswell as the tax amount with a tax code.

4. Determine the assignment to a procurement transaction. You can refer topurchase orders, but also to delivery notes of the goods receipts (as long asthis information was entered during goods receipt).

5. Enter the number of the document to which the invoice refers.

Note: You can also reference several documents. To do so, choose(More Allocation Criteria). A dialog box then appears, in which

you can enter several document numbers.




6. In the item list, the system proposes all purchase order items that fulfill therelevant allocation criteria.

Compare the suggested invoice items with the items in the vendor invoiceand correct the default values if necessary. The items to be posted mustbe selected (highlighted in yellow).

Caution: The Booking OK indicator in the invoice (transactionMIRO) must not be confused with the OK Indicator of the goodsmovement (transaction MIGO). With the Booking OK indicator, youcan select already checked and processed items.

This indicator has no effect on whether or not the item is takeninto account when the invoice is posted.

7. Check whether the invoice is arithmetically correct. This is the case if thebalance is zero.

8. Finally, post the invoice.



Exercise 3: Invoice Verification - Basics

Exercise ObjectivesAfter completing this exercise, you will be able to:• Enter an invoice with the logistic invoice verification function and check

it is correct.• Explain the effects of invoice verification on the updating of purchase order

data

Business ExampleIn invoice verification, you enter the invoice you have received from the vendor.You compare the purchase order and goods receipt data with the data set out in thevendor's invoice.

Task: Invoice EntryVendor T-K500A## invoices you for delivery of the standard taillights-##. Enterthe invoice using Logistics Invoice Verification.

1. Post vendor invoice

Enter the invoice for company code 1000.

Take the necessary data from the vendor's invoice you have received.(Graphic Invoice RE-A1##).

Compare the invoice price and invoice quantity with the data proposed bythe system.




Figure 31: Invoice RE-A1##

Post the invoice.

Invoice document number: ____________________________

2. Display the invoice document.

Display the invoice document that was generated when the invoice wasposted. Analyze the purchase order history and make sure it has beenupdated correctly.


Add the transaction for invoice entry to your favorites.



Solution 3: Invoice Verification - BasicsTask: Invoice EntryVendor T-K500A## invoices you for delivery of the standard taillights-##. Enterthe invoice using Logistics Invoice Verification.

1. Post vendor invoice

Enter the invoice for company code 1000.

Take the necessary data from the vendor's invoice you have received.(Graphic Invoice RE-A1##).

Compare the invoice price and invoice quantity with the data proposed bythe system.

Figure 32: Invoice RE-A1##

Post the invoice.




Invoice document number: ____________________________

a) Choose Logistics → Materials Management → Logistics InvoiceVerification → Document Entry → Enter Invoice (MIRO).

b) Enter the following data on the Basic Data tab page:


Invoice date <Today’s date>

Reference RE-A1##

Amount 5500

Tax amount 500

Tax code 1I (input tax (10%))

c) On the PO reference tab page, choose Purchase Order/SchedulingAgreement as the reference document category and enter your POnumber.

Hint: If you want to search for the PO using the F4 help, enterthe following selection values and then choose (Execute).


Vendor T-K500A##

Plant 1000

Material T-M500A##

Select the purchase order in the results list and choose Copy.

d) Choose (Enter) so that the system proposes the data from thepurchase order.

The default data agrees with that of the vendor invoice. The balanceis zero.

Hint: The item is preselected by the system.

e) Choose (Post) and note the number of the invoice document.

2. Display the invoice document.




Display the invoice document that was generated when the invoice wasposted. Analyze the purchase order history and make sure it has beenupdated correctly.

a) You can display the invoice directly from the transaction Enter Invoice(MIRO) by choosing Invoice Document → Display.

However, you can also choose (Other invoice document). In theChoose Invoice Document dialog box, the system proposes the lastinvoice you posted. Choose (Continue) to display the invoice.

After you have exited the transaction MIRO, choose an invoicedocument to display.

Logistics → Materials Management → Logistics Invoice Verification→ Further Processing → Display Invoice Document (MIR4)

b) Choose Show PO structure to display the PO history,

or double-click the PO number in the item overview. Then choose thePO history tab page in the purchase order (item details).

c) The PO history now shows the invoice for 100 pc in addition to thegoods receipt of 100 pc.


Add the transaction for invoice entry to your favorites.

a) Use one of the options you have already learned.



Lesson Summary

You should now be able to:• Name the most important information given in an invoice• Carry out a simple invoice verification process with reference to a purchase


order


TSCM50 Unit Summary

Unit SummaryYou should now be able to:• Describe the various external procurement processes• List the organizational levels relevant for the procurement process in the

SAP system• Explain the relationships between these organizational levels• Name various documents to which you can make reference when creating

a purchase order• Name the most important elements of a purchase order• Enter and issue a simple purchase order• Explain the most important effects of a goods receipt against a purchase order• Enter a simple goods receipt with reference to a purchase order• Name the most important elements of a material document• Name the most important information given in an invoice• Carry out a simple invoice verification process with reference to a purchase


order


Unit Summary TSCM50


TSCM50 Test Your Knowledge

Test Your Knowledge

1. Which procurement process(es) normally end with the goods receipt and notwith the invoice date?Choose the correct answer(s).□ A Procurement from another plant in the company using a stock

transfer order.□ B Stock transfer of materials by means of subcontracting.□ C Normal purchase of materials from a vendor without provision

of components.□ D Procurement of material by means of consignment.

2. List the organizational levels relevant to the procurement process.

3. A plant can be assigned to several company codes.Determine whether this statement is true or false.□ True□ False

4. A purchasing organization can act for several plants.Determine whether this statement is true or false.□ True□ False

5. A purchasing group must always be assigned to a purchasing organization.Determine whether this statement is true or false.□ True□ False

6. A purchasing organization must always be assigned to a company code.Determine whether this statement is true or false.□ True□ False


Test Your Knowledge TSCM50

7. You can create a purchase order with reference to a purchase requisition.Determine whether this statement is true or false.□ True□ False

8. List four different screen areas in the purchase order transaction ME21N.

9. Which organization levels do you have to indicate when entering a purchaseorder?Choose the correct answer(s).□ A Client□ B Company code□ C Plant□ D Storage location□ E Purchasing organization□ F Purchasing group

10. and are two possible message output types.Fill in the blanks to complete the sentence.

11. To enter a goods receipt with reference to a purchase order,choose transaction . Then choose the transaction

and as thereference document. The for the movementtype should be . Enter the and chooseExecute. Set the for the items and enter a

. Finally, save your input.Fill in the blanks to complete the sentence.



12. What are the effects of the entry of a goods receipt against a purchase orderin the SAP system?Choose the correct answer(s).□ A The purchase order is deleted.□ B An accounting document can be generated.□ C A material document is generated for each item.□ D The PO history is updated for each item of the purchase order.□ E A material document is generated.□ F A credit memo is automatically generated for the vendor for the

amount of the delivery value.

13. You cannot enter a goods movement without indicating a.

Fill in the blanks to complete the sentence.

14. List at least five pieces of information that you can find in a vendor invoice.

15. When entering an invoice, you should reference aor a .

As a result, the system is able to suggest andamounts for each item. The invoice is checked to ensure

,and

.Fill in the blanks to complete the sentence.

16. Which of the following can you enter using the transaction MIRO?Choose the correct answer(s).□ A Subsequent delivery□ B Subsequent debit□ C Invoice□ D Subsequent adjustment□ E Credit memo



Answers

1. Which procurement process(es) normally end with the goods receipt and notwith the invoice date?

Answer: A, D

With stock transfer using a stock transfer order, no invoice is normally issuedif the receiving plant and the issuing plant are assigned to a company code. Invendor consignment, a liability only arises when a withdrawal is made fromconsignment stock but not when the goods in the consignment are delivered.

2. List the organizational levels relevant to the procurement process.

Answer: The following organizational levels are relevant to the procurementprocess:

• Client• Company code• Plant• Storage location• Purchasing organization• Purchasing group

3. A plant can be assigned to several company codes.

Answer: False

A plant can be assigned to only one company code. At the same time, thisassignment is essential.

4. A purchasing organization can act for several plants.

Answer: True

The plants for which a purchasing organization acts can belong to onecompany code or different company codes. If the purchasing organizationis assigned to a company code, then it can only apply to plants from thiscompany code.



5. A purchasing group must always be assigned to a purchasing organization.

Answer: False

There is no link between a purchasing group and a purchasing organizationin the system. There is no assignment of purchasing groups to purchasingorganizations.

6. A purchasing organization must always be assigned to a company code.

Answer: False

The assignment of a purchasing organization to a company code is optionaland not mandatory.

7. You can create a purchase order with reference to a purchase requisition.

Answer: True

You can create a purchase order with reference to a purchase requisition in thesame way as you can refer to an RFQ, a contract or another purchase order.

8. List four different screen areas in the purchase order transaction ME21N.

Answer: Header data, item overview, item details, document overview andhelp

9. Which organization levels do you have to indicate when entering a purchaseorder?

Answer: B, C, E, F

Because you select the client when you log on to the SAP system, you do notneed to enter the client in the purchase order. In the organizational data inthe purchase order header, you must enter the purchasing organization, thepurchasing group, and the company code. At item level, enter the plant. Youcan enter the storage location but it is not required.

10. Print and EDI are two possible message output types.

Answer: Print, EDI

There are different ways of processing messages. You can issue messages asprintout, EDI message, fax or e-mail.



11. To enter a goods receipt with reference to a purchase order, choosetransaction MIGO. Then choose the transaction Goods Receipt and PurchaseOrder as the reference document. The default value for the movement typeshould be 101. Enter the PO number and choose Execute. Set the IndicatorOK for the items and enter a storage location. Finally, save your input.

Answer: MIGO, Goods Receipt, Purchase Order, default value, 101, POnumber, Indicator OK, storage location

12. What are the effects of the entry of a goods receipt against a purchase orderin the SAP system?

Answer: B, D, E

A material document and an accounting document are generated for eachgoods receipt (exceptions: Cross-company-code postings and non-valuatedgoods receipts).The PO history for a PO item is updated when a goods receipt is entered withreference to this item. It is also updated when you enter a return delivery ora reversal for this PO item.

13. You cannot enter a goods movement without indicating a movement type.

Answer: movement type

The movement type determines the kind of goods movement that is involved.It is also an important factor that influences the quantity update and theupdate in accounting.

14. List at least five pieces of information that you can find in a vendor invoice.

Answer: Among other things, a vendor invoice shows the invoicing party,the reference, the invoice date, the terms of payment, the invoice amount, thetax amount, the tax rate, and the quantities and amounts for the individualitems.



15. When entering an invoice, you should reference a purchase order or adelivery note. As a result, the system is able to suggest quantities andamounts for each item. The invoice is checked to ensure that it covers theright quantities of the right materials and/or services, that the price is asagreed and that it is arithmetically correct.

Answer: purchase order, delivery note, quantities, that it covers the rightquantities of the right materials and/or services, that the price is as agreed,that it is arithmetically correct

16. Which of the following can you enter using the transaction MIRO?

Answer: B, C, E

You can enter invoices, credit memos, and subsequent debits and creditsusing transaction MIRO. Subsequent adjustment is an inventory managementtransaction that occurs in connection with the special procurement type“subcontracting”. Subsequent delivery also counts as a goods movement.


Unit 2Master Data

Unit OverviewThe focus of this unit is on maintaining the material and vendor master data. Italso deals with the significance of the organizational levels with regard to this data.


• Explain the significance of vendor master records• Create and maintain vendor master records• Name the organizational levels that are important for the maintenance of

vendor master records• Explain the significance of material master records• Create and maintain material master records• Name the organizational levels that are important for the maintenance of

material master records• List the different entry aids for the maintenance of the vendor master record

and material master record• Outline the creation of a vendor master record with reference• Create a material master record with reference material• Use collective entry for storage location data in the material master record• Name the objects that can be processed using the mass maintenance function• Outline the flow of mass maintenance

Unit ContentsLesson: Vendor Master Record ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

Exercise 4: Vendor Master Record... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83Lesson: Material Master Record ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92

Exercise 5: Material Master Record ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .101Lesson: Entry Aids... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .109

Exercise 6: Entry Aids ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .115Lesson: Mass Maintenance (Optional). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .124


Unit 2: Master Data TSCM50

Lesson: Vendor Master Record

Lesson OverviewThis lesson introduces the vendor master record, which is of importance in boththe ordering and invoice processing phases of procurement. It explains thestructure and the maintenance (creating, changing, and displaying) of the vendormaster record.


• Explain the significance of vendor master records• Create and maintain vendor master records• Name the organizational levels that are important for the maintenance of

vendor master records

Business ExampleYour company has entered into a business relationship with a new vendor. Sinceyou intend to place orders with this vendor frequently in future, you create a newmaster record for the vendor.

Master Data in the Procurement ProcessMaster data comprises data records that are stored in the database for a long periodof time. These data records are stored centrally, and are used and processed on across-application basis. This avoids the multiple storage (redundancy) of data.

The vendor master record, the material master record, and the purchasing inforecord belong to the most important master data in the procurement process.


TSCM50 Lesson: Vendor Master Record

Figure 33: Master Data in the Procurement Process

When creating purchasing documents, data is transferred to the purchasingdocuments by default from existing master records. This lessens the effortrequired to enter the data.

Other data, such as units of measure, material short text, and the PO text, is alsoincorporated from the material master record in the new document. The data inthe vendor master record includes address data and payment data. You can storevendor-specific data for a certain material (such as delivery time and purchaseprice) in purchasing info records.

Vendor Master DataThe vendor master contains information about a company's vendors. Thisinformation is stored in individual vendor master records. In addition to thevendor's name and address, a vendor master record contains the following data:

• The currency used for transactions with the vendor• Terms of payment• Names of important contacts (for example, salespersons)

Since, for accounting purposes, the vendor is also a creditor of the company, thevendor master record also contains accounting data such as the reconciliationaccount from the general ledger.

Therefore, the vendor master record is maintained by both purchasing andaccounting. This is also the reason why the data in the vendor master record issubdivided into different categories.



Figure 34: Vendor Master Data

The data in the vendor master record is subdivided into the following categories:

• General data:

This data is valid for a single client. It includes the vendor’s address andbank details.

• Accounting data:

This is maintained at company code level. It includes the number of thereconciliation account and the payment methods for automatic paymenttransactions.

• Purchasing data:

This data is maintained for each purchasing organization. It includes thepurchase order currency, Incoterms, and various control data pertaining tothe vendor. You can also maintain different data for specific plants or forvendor subranges.

You decide whether vendor master records are to be maintained centrally (that is,all data is maintained together), or on a decentralized basis (that is, the relevantdepartments each maintain their own data).



Figure 35: Vendor Master Record: Organizational Levels

If you give your purchasing staff the authorizations for transactions MK01, MK02and MK03 (Logistics → Materials Management → Purchasing → Master Data→ Vendor → Purchasing → Create/Change/Display) only, they will be ableto maintain the general address and control data, and the purchasing-specificdata. Accounting personnel must enter the payment transaction data and thecompany-code-specific data.

However, you can also give your staff authorization to maintain the vendor masterdata with transactions XK01, XK02, XK03 (Logistics → Materials Management→ Purchasing → Master Data → Vendor → Central → Create/Change/Display).In this case, staff can edit all the data in the vendor master record.

Hint: Before you can order anything from a vendor, you must havepreviously maintained the purchasing data. To enter invoices, you need tocreate the accounting data beforehand.

Account groupWhen creating a vendor master record, you must decide to which account groupyou are going to assign to this vendor. The account group has control functions.When you maintain the vendor master record, only the screens and fields that areneeded for the relevant role of your business partner are displayed and are readyfor input. This is controlled by the account group.



Figure 36: Account Group

Among other things, the account group determines:

• The type of number assignment (internal or external) and the number rangefrom which the account number that the system uses to identify the vendoris to be assigned

• The field selection - which fields are ready for input, which fields must bemaintained, and which fields are hidden

• Which partner schema are valid• The status - whether the vendor is a one-time vendor (see below)

Note: You maintain the account groups in Customizing for Logistics -General under Business Partner → Vendors → Control → Define AccountGroups and Field Selection (Vendor).

As external procurement and invoice verification are not possible without avendor master record, there are special account groups for what are known asone-time vendors. An one-time vendor master record is always used in purchasingdocuments and invoices where no separate master record exists (or is to becreated) for a vendor. This enables you to work without a vendor-specific masterrecord if you want to procure materials or services from a vendor only once.

Unlike with other master records, you can use a one-time-vendor master record forseveral vendors. For this reason, no vendor-specific data such as an address orbank details are stored for one-time vendors. This data is recorded in the relevantdocument only. When a purchasing or invoice document featuring a one-timevendor is created, the system automatically opens an additional data screen.This is where you enter the specific data, such as the vendor's name, address,and bank details.



Reconciliation AccountWhen you create a vendor master record, you need a unique number for thecreditor. This is assigned either automatically by the system, or manually by theadministrator, depending on the account group. The creditor number is also usedas the subsidiary ledger number in financial accounting. In subledger accounting,the total liabilities are updated for each vendor.

Figure 37: Reconciliation Account for Vendor Master Record

When creating a vendor master record, you must also maintain a reconciliationaccount. The reconciliation account is a G/L account in G/L accounting. It depictsa company's liabilities with regards to several vendors in G/L accounting.

When entering invoices, you enter the vendor and the system produces thereconciliation account from the vendor master record.

Partner RolesThe business partner vendor can assume various roles in your company. Forexample, during a procurement transaction, the vendor is first the order recipient,then the goods supplier, and finally the invoicing party.



Figure 38: Partner Roles

The maintenance of partner roles in the vendor master record enables you todistribute one or more of these roles to different vendors. Using the partner rolefunction, you can define a different creditor as a freight forwarder for a certainvendor, for example.

Blocking VendorsIn some cases, you may no longer want to order goods from a particular vendor(maybe because the vendor has recently supplied products of deficient quality). Inthis case, you have the option of blocking the vendor in the vendor master record.Once you have set the blocking indicator, purchase orders can no longer be placedwith this vendor. The block applies until you deselect the indicator.

Hint: If you want to stop ordering just one specific material from thisvendor, block the vendor in the source list for the material, not in thevendor master record.

To block a vendor master record, go to the Purchasing menu and choose MasterData → Vendor → Purchasing → Block (transaction MK05). You can decidewhether the vendor is to be blocked for just one purchasing organization or for all.

You also have the option of setting the Block for quality reasons. The Block forquality reasons is effective only for materials for which quality managementis active in procurement. The blocking function used here determines whichprocurement function (such as RFQ or purchase order) is to be blocked for qualityreasons.



Exercise 4: Vendor Master Record

Exercise ObjectivesAfter completing this exercise, you will be able to:• Create vendor master records• Change vendor master records

Business ExampleYour company has entered into a business relationship with a new vendor. To beable to order from this vendor, approve invoices for payment and carry out otherprocesses, you must create a new vendor master record.

Task: Maintaining Vendor Master DataThe purchasing and accounting data for the new vendor Highspeed Gr.## isavailable. Since your company will now procure from this source on a regularbasis, create a master record for this vendor.

1. Organizational levels in the vendor master recordYou already know that vendor master data is maintained on the basis ofdifferent organizational levels.For which organizational levels do you enter data in the vendor masterrecord?

2. Menu paths for the creation of vendor master dataWhich menu paths can you use to create a vendor master record inpurchasing? How do these approaches differ?

3. Create vendor master record




Create a vendor master record T-K500Y## centrally for the organizationallevels company code 1000 and purchasing organization 1000. Create thisvendor master record with the account group ZTMM. The following data isto be entered in the master record.

Hint: Note that you do not have to enter anything in the followingviews:

General date: Control, Payment transactions

Company code data: Correspondence, Withholding tax

Purchasing organization data: Partner functions

Address

Title: Company

Name: Highspeed Gr.##

Search term: SCM500-##

Street/House number: Lincolnstraße 99

Postal code/City 81549 Munich

Country: DE (Germany)

Region: 09 (Bavaria)

Language: German

Accounting Information

The reconciliation account in G/L accounting has the description TradePayables - Domestic. Use the F4 input help to determine the number ofthe reconciliation account.

Number of reconciliation account: ____________________________________

Payment transactions Accounting

The following terms of payment apply to pure accounting transactions:

If the invoice is paid within 14 days of receipt, the vendor grants 3% cashdiscount. If the invoice is paid between 14 and 30 days, the cash discountis 2%. If no cash discount is claimed, the invoice has to be paid within amaximum of 45 days. Use the F4 input help to determine the relevant keyfor the payment terms.

Terms of payment: _________________

Purchasing dataContinued on next page



The currency for purchase orders placed with the vendor is EUR.

The terms of payment for the purchasing department also apply to theaccounts department.

When you have entered all the data, save your new vendor masterrecord.

4. Change vendor master record

The vendor master data has already been created, and you have agreed withyour vendor T-K500Y## that requisitions for certain materials procuredfrom this vendor can be automatically converted into purchase orders. Tofacilitate this, you must set the necessary indicator in the vendor masterrecord. Change the control data in the purchasing data of the vendor masterrecord accordingly.

Entry infield:____________________________________________________________

Furthermore, the vendor has informed you that Mr. Fred Fisher is the contactperson for purchasing. His telephone number is 089-123654. Also enterthis information in the purchasing data that is specific to the purchasingorganization.



Solution 4: Vendor Master RecordTask: Maintaining Vendor Master DataThe purchasing and accounting data for the new vendor Highspeed Gr.## isavailable. Since your company will now procure from this source on a regularbasis, create a master record for this vendor.

1. Organizational levels in the vendor master record

You already know that vendor master data is maintained on the basis ofdifferent organizational levels.

For which organizational levels do you enter data in the vendor masterrecord?

Answer: You enter data for the organizational levels client, company code,purchasing organization, and possibly plant/sub-range in the vendor masterrecord.

2. Menu paths for the creation of vendor master data

Which menu paths can you use to create a vendor master record inpurchasing? How do these approaches differ?

Answer: You can create vendor master data using the following menu paths:a)Logistics → Materials Management → Purchasing → Master Data →Vendor → Central → Create (XK01).b) Logistics → Materials Management → Purchasing → Master Data →Vendor → Purchasing → Create (MK01)With transaction XK01 you can create all vendor master data. Withtransaction MK01, on the other hand, you can create only general data anddata specific to purchasing. Company code-specific data can be created onlywith transaction XK01.

3. Create vendor master record




Create a vendor master record T-K500Y## centrally for the organizationallevels company code 1000 and purchasing organization 1000. Create thisvendor master record with the account group ZTMM. The following data isto be entered in the master record.

Hint: Note that you do not have to enter anything in the followingviews:

General date: Control, Payment transactions

Company code data: Correspondence, Withholding tax

Purchasing organization data: Partner functions

Address

Title: Company

Name: Highspeed Gr.##

Search term: SCM500-##

Street/House number: Lincolnstraße 99


Country: DE (Germany)

Region: 09 (Bavaria)

Language: German

Accounting Information

The reconciliation account in G/L accounting has the description TradePayables - Domestic. Use the F4 input help to determine the number ofthe reconciliation account.

Number of reconciliation account: ____________________________________


The following terms of payment apply to pure accounting transactions:

If the invoice is paid within 14 days of receipt, the vendor grants 3% cashdiscount. If the invoice is paid between 14 and 30 days, the cash discountis 2%. If no cash discount is claimed, the invoice has to be paid within amaximum of 45 days. Use the F4 input help to determine the relevant keyfor the payment terms.

Terms of payment: _________________

Purchasing dataContinued on next page



The currency for purchase orders placed with the vendor is EUR.

The terms of payment for the purchasing department also apply to theaccounts department.

When you have entered all the data, save your new vendor masterrecord.

a) Choose Logistics → Materials Management → Purchasing → MasterData → Vendor → Central → Create (XK01).

b) Enter the following data on the initial screen:


Vendor T-K500Y##

Company Code 1000

Purchasing Organization 1000

Account Group ZTMM

Confirm your entries with Enter.

c) Enter the following data on the individual data screens. In each case,choose Enter to get to the next data screen.

Address

Title Company

Name Highspeed Gr.##

Search Term SCM500-##

Street/House number Lincolnstraße 99


Country DE (Germany)

Region 09 (Bavaria)

Language German

Control, Payment transactions

No input necessary

Accounting information Accounting

Reconciliation Account 160000





Terms of Payment 0002

Correspondence Accounting

No input necessary

Purchasing Data

Order Currency EUR

Terms of Payment 0002

Partner functions

No input necessary

d) Choose (Save).

4. Change vendor master record

The vendor master data has already been created, and you have agreed withyour vendor T-K500Y## that requisitions for certain materials procuredfrom this vendor can be automatically converted into purchase orders. Tofacilitate this, you must set the necessary indicator in the vendor masterrecord. Change the control data in the purchasing data of the vendor masterrecord accordingly.

Entry infield:____________________________________________________________




Furthermore, the vendor has informed you that Mr. Fred Fisher is the contactperson for purchasing. His telephone number is 089-123654. Also enterthis information in the purchasing data that is specific to the purchasingorganization.

a) Choose Logistics → Materials Management → Purchasing → MasterData → Vendor → Purchasing → Change (Current) (MK02)



Vendor T-K500Y##


Purchasing Data


c) Enter the following data in the purchasing data view:


Salesperson Mr. Fred Fisher

Telephone 089-123654

Automatic purchase order

Hint: You can also enter the details of the salesperson inthe Contact Person data area. These details form part ofthe cross-client data. You can store additional informationabout your contact person here, such as department or maritalstatus. You can also enter more than one contact person froma department.

d) Choose (Save).



Lesson Summary

You should now be able to:• Explain the significance of vendor master records• Create and maintain vendor master records• Name the organizational levels that are important for the maintenance of

vendor master records



Lesson: Material Master Record

Lesson OverviewIn this lesson, the material master record is introduced as one of the central masterrecords in logistics. The structure and maintenance (creation, extension, changing,and display) of the material master record are discussed.


• Explain the significance of material master records• Create and maintain material master records• Name the organizational levels that are important for the maintenance of

material master records

Business ExampleVarious departments in your company access existing material master records.Check how such master records can be created and extended.

Material Master Record - OverviewThe material master record is a company's central source of material-specificdata. It is used in all areas of logistics.

The integration of all material data in a single database object eliminates theproblem of data redundancy. All areas, such as purchasing, inventory management,materials planning, and invoice verification, can jointly use the stored data.


TSCM50 Lesson: Material Master Record

Figure 39: Material master

The data stored in the material master is required for many activities, includingthe following:

• Purchasing data for ordering purposes• Inventory management data for posting goods movements and physical

inventory management• Accounting data for material valuation• Materials planning data for material requirements planning

Since different user departments within a company work with one material, andeach department stores different information relating to it, the data in a materialmaster record is subdivided according a specific user department. Therefore, eachuser department has its own view of a material master record and is responsiblefor maintaining this data.



Figure 40: Data Screens in Material Master Record Maintenance

The data screens used to process material master records can be subdivided intothe following types:

• Main data

These are the screens for the individual user departments, such as basic data,materials planning, and so on.

• Additional data

On these screens you find additional information, such as alternative units ofmeasure, material short descriptions, and consumption values.

The data maintained within a view may be valid for different organizational levels.

Figure 41: Material Master: Organization Levels



Some material data is valid for all organizational levels, while some is validfor certain levels only. To ensure that the material data can be administeredcentrally, without unnecessary load on the database due to redundant information,the material master is organized in such a way that it reflects the structure of acompany. For example, a distinction is made for:

• Data at client level:

General material data that is valid for the whole company is stored at clientlevel.

• Data at plant level:

All data that is valid within a plant and for all storage locations belongingto it is stored at plant level.

• Data at storage location level:

All data that is valid for a particular storage location is stored at storagelocation level.

The above-mentioned organizational levels are relevant for the externalprocurement process. Client, plant, and storage location play a role whenyou enter data for purchasing, inventory management, and accounting. Otherorganizational levels can be relevant for other departments. For example, thesales and distribution data is entered depending on the sales organization and thedistribution channel and you must specify a warehouse number and storage typefor the warehouse management data.

Create Material Master RecordThe data for a material is structured by user department and organizational leveland is also apparent in material master record maintenance. When processingmaterial master records, you have to negotiate several dialog screens before youcan actually start to maintain data.



Figure 42: Maintaining a Material Master Record: Screen Sequence

On the initial screen, you will see two successive dialog boxes. In the first dialogbox, you specify the views you want to process. In the second one, you specify therelevant organizational levels. After this, the data screens are displayed.

You can influence the default screen sequence by configuring the presettings.

When creating a new material master record, you must choose a material type andan industry sector to which the material is to be assigned.

Figure 43: Material Type

Materials with the same properties are assigned to the same material type.Examples of material types are raw materials, semifinished products, and finishedproducts.



Among other things, the material type controls:

• The type of number assignment (internal or external)• The permissible number range intervals• Which user-department-specific is proposed for entry (in views)• Which procurement type is allowed for a material (that is, whether the

material is produced in-house, procured externally, or both)

Along with the plant, the material type determines a material's inventorymanagement requirement (whether quantity changes in the material master recordand/or value changes in the stock accounts of financial accounting are updated).

Furthermore, the material type determines which accounts are posted when areceipt is posted to (or an issue is posted from) the warehouse for a material.

Various types of material are delivered in the standard SAP system. If yourcompany needs additional material types, you can define these according to yourrequirements in Customizing.

Figure 44: Industry sector

Like the material type, the industry sector also has a control function.

When you create a material master record, the industry sector determines:

• Which screens are displayed and in which order• Which industry-specific fields are displayed on each screen

The material you assign to an industry sector cannot be changed later.

In Customizing, you can define new industry sectors and maintain the fieldreference for field selection control according to your company-specificrequirements.



You can maintain most of the data in the material master record directly. However,some information is automatically updated by the system. When you enter goodsmovements, for example, the system updates the stock and consumption data.Statistical information, such as the date of original creation and that of the lastchange, can be found by choosing (Information on material).

Some data in the material master is used for information purposes only; forexample, description, size, and dimensions.

Other material data has a control function in an application. For example, the MRPprocedure is determined by the MRP characteristic and the material evaluationprocedure is determined by the price control indicator.

Extend Material Master RecordOnce a department has created data for a material, the material master recordexists in the database. If someone from another department wishes to enter datalater, he or she does have not have to create the material master record fromscratch, but only has to extend the existing record by adding the information fromhis or her department. A material master is also extended when data pertaining tothe material is stored for further organizational levels.

Figure 45: Extending a Material Master Record: Example

You use the Create material master transaction (MM01) to extend a materialmaster record by adding missing views or organizational levels.



Caution: With the Change Material transaction (MM02), you canonly change the data of views and organizational levels that arealready maintained.

Any changes you make to data in a material master record (creating or changing)are logged in a change document. This means that you can trace the changehistory at any time.



Exercise 5: Material Master Record

Exercise ObjectivesAfter completing this exercise, you will be able to:• Create and maintain material master records• Explain the influence of the organizational levels

Business ExampleYou are responsible for creating and maintaining material master records in yourenterprise. Create a material master record for a new headlight.

Task: Maintaining Material Master DataA special type of headlight is needed for the manufacture of a new motorcyclemodel. This headlight is procured externally. After consulting the otherdepartments involved, you create a material master record of the material type “rawmaterial” for the headlight. The material is initially to be used in plant 1000. It isnecessary to create several views with the data of the individual user departments.

1. Create Material Master Record

Create a new material master record with the number T-M500Y##. Choosethe industry sectorMechanical Engineering and the material type Rawmaterial.

Create the Basic Data 1, Purchasing, Purchase Order Text, and GeneralPlant Data/Storage 1 views for plant 1000 and storage location 0001.

Enter the following data on the specified views:

Basic Data:

The short description of the material is Headlight ExtraBright-##. Thebase unit of measure used for the headlight is piece (pc). The headlight isassigned to material group 003 (Bulbs). The gross weight is 4 kg and thenet weight is 3.8 kg.

Because you use the headlight in German-speaking countries, you alsomaintain the material description in German. The German description is:Scheinwerfer Extrahell-##.

Hint: You can enter short descriptions in other languages in theadditional data. Choose Additional data.

Purchasing:




Purchasing group T## is responsible for procuring the headlight. Thegoods receipt processing time for this material is 1 day.Reminder letters(expediters) regarding undelivered goods are to be sent 10, 20, and 30 daysafter the date on which delivery is due. Under or overdelivery of the materialis not accepted. Choose the suitable purchasing value key.

Purchase Order Text:

The purchase order text reads as follows: The material supplied must be inaccordance with our technical specification no. 65432.

You can also enter the purchase order text in German: Das gelieferteMaterial muss unsere technische Spezifikation Nr. 65432 erfüllen.

Hint: Choose (Create text) to create the purchase order text inother languages.

When you create a purchase order, the system uses the languagefrom the vendor master record as the default PO language. Thematerial short text and the purchase order text are adopted from thematerial master record and output in the purchase order documentin the PO language.

General Plant Data/Storage 1:

The headlight is to be stored in storage bin BL-01 at storage location 0001.

When you have entered all the data, save your new material masterrecord.

2. Display MaterialDisplay the material master record. Which views are proposed for display?

3. Extend material master record by adding accounting data

The accounting data has now been provided for material T-M500Y##.Extend the material master record by adding the accounting data for plant1000.

The material is assigned to the valuation class Raw materials 1. Thematerial is valuated according to the moving average price procedure. Thevaluation price amounts to 80 EUR.



Solution 5: Material Master RecordTask: Maintaining Material Master DataA special type of headlight is needed for the manufacture of a new motorcyclemodel. This headlight is procured externally. After consulting the otherdepartments involved, you create a material master record of the material type “rawmaterial” for the headlight. The material is initially to be used in plant 1000. It isnecessary to create several views with the data of the individual user departments.

1. Create Material Master Record

Create a new material master record with the number T-M500Y##. Choosethe industry sectorMechanical Engineering and the material type Rawmaterial.

Create the Basic Data 1, Purchasing, Purchase Order Text, and GeneralPlant Data/Storage 1 views for plant 1000 and storage location 0001.

Enter the following data on the specified views:

Basic Data:

The short description of the material is Headlight ExtraBright-##. Thebase unit of measure used for the headlight is piece (pc). The headlight isassigned to material group 003 (Bulbs). The gross weight is 4 kg and thenet weight is 3.8 kg.

Because you use the headlight in German-speaking countries, you alsomaintain the material description in German. The German description is:Scheinwerfer Extrahell-##.

Hint: You can enter short descriptions in other languages in theadditional data. Choose Additional data.

Purchasing:

Purchasing group T## is responsible for procuring the headlight. Thegoods receipt processing time for this material is 1 day.Reminder letters(expediters) regarding undelivered goods are to be sent 10, 20, and 30 daysafter the date on which delivery is due. Under or overdelivery of the materialis not accepted. Choose the suitable purchasing value key.

Purchase Order Text:

The purchase order text reads as follows: The material supplied must be inaccordance with our technical specification no. 65432.




You can also enter the purchase order text in German: Das gelieferteMaterial muss unsere technische Spezifikation Nr. 65432 erfüllen.

Hint: Choose (Create text) to create the purchase order text inother languages.

When you create a purchase order, the system uses the languagefrom the vendor master record as the default PO language. Thematerial short text and the purchase order text are adopted from thematerial master record and output in the purchase order documentin the PO language.

General Plant Data/Storage 1:

The headlight is to be stored in storage bin BL-01 at storage location 0001.

When you have entered all the data, save your new material masterrecord.

a) Choose Logistics → Materials Management → Material Master →Material → Create (General) → Immediately (MM01).


Material T-M500Y##

Industry Sector Mechanical engineering (M)

Material Type Raw material (ROH)

Then choose (Continue).

c) Select the following views on the Select Views screen:

• Basic Data 1• Purchasing• Purchase Order Text• General Plant Data / Storage 1

Choose (Continue).

d) Enter the following data in the Organizational Levels dialog box:

Plant 1000


Choose (Continue).

e) Enter the following data on the Basic Data screen.Continued on next page



Basic data

Material short text Headlight Extra Bright-##.

Base unit of measure PC

Material group 003

Gross weight 4

Weight unit KG

Net weight 3,8

f) Then choose Additional data. Enter the language DE and the shorttext Scheinwerfer Extrahell-##.

Choose Main data to return to the main data.

g) Enter the following data in the remaining views selected. To get to thenext view in each case, choose (Enter).

Purchasing

Purchasing group T##

Purchasing value key 1

GR processing time 1

Purchase order text

German Text, see above.

Choose (Create Text) (bottom left of screen in the Purchase ordertext area).

English Text, see above.

General Plant Data/Storage 1

Storage bin BL-01

h) Choose (Save).




2. Display Material

Display the material master record. Which views are proposed for display?

Answer: Choose Logistics → Materials Management → Material Master→ Material → Display → Display Current (MM03) .Enter the material number T-M500Y## and choose Select Views. Thesystem proposes the following views:Basic Data (1 and 2), purchasing views (Purchasing, Foreign Trade: ImportData, Purchase Order Text), General Plant Data/Storage (1 and 2), PlantStock, and Storage Location Stock.

3. Extend material master record by adding accounting data

The accounting data has now been provided for material T-M500Y##.Extend the material master record by adding the accounting data for plant1000.




The material is assigned to the valuation class Raw materials 1. Thematerial is valuated according to the moving average price procedure. Thevaluation price amounts to 80 EUR.



Material T-M500Y##

Industry Sector Mechanical Engineering(optional)

Material Type Raw material (optional)

Then choose (Continue).

c) Select the Accounting 1 view in the Select Views dialog box.

Choose (Continue).

d) Enter plant 1000 in the Organizational Levels dialog box.

Choose (Continue).

e) Enter the following data in the Accounting 1 view:

Valuation Class 3000 (raw materials 1)

Price Control V (Moving average price)

Moving Price 80

f) Choose (Save).



Lesson Summary

You should now be able to:• Explain the significance of material master records• Create and maintain material master records• Name the organizational levels that are important for the maintenance of

material master records


TSCM50 Lesson: Entry Aids

Lesson: Entry Aids

Lesson OverviewFor master data maintenance, different functions can be used to simplify dataentry. This lesson covers entry aids for the vendor master record and the materialmaster record.


• List the different entry aids for the maintenance of the vendor master recordand material master record

• Outline the creation of a vendor master record with reference• Create a material master record with reference material• Use collective entry for storage location data in the material master record

Business ExampleIn your company, you often need to process material and vendor master records.As the employee responsible, you test which entry aids are provided for thesemaster records.

Entry Aids for Vendor Master RecordTo help you create a vendor master record, you can use an existing vendor as areference. The system copies the master data from the reference. However, thesystem does not copy all the data (for example, the address, bank information,and business partner).

The system prompts you to maintain the data (for example, address). The controldata is copied from the reference, but you can overwrite it.



Figure 46: Creating a Vendor Master Record with Reference

The transfer depends on several factors:

• The system copies only data that is not vendor-specific. Therefore, theaddress and the blocking indicator are not copied from the reference.

• The transfer of reference data depends on the data you have already enteredfor your vendor. It is generally true that maintained data is not overwrittenby the reference data. This means

– If you have already created the general data (name, address, and phonenumber), only the company code data is transferred when you enter thecompany code data. To do this, you must specify the reference companycode. When you create the data for the purchasing organization, thesystem transfers only this corresponding data from the reference.

– If you have not yet created the general data, the system transfers onlythe language and country from the reference address data.

• In addition, you specify the areas to be transferred from the reference. Todo this, you define the area, which should be copied from the reference. Forexample, if you do not specify a purchasing organization, the system doesnot transfer the purchasing data.

Entry Aids for Material Master RecordWhen you maintain material master records, different functions are availableto simplify and accelerate your work.



Figure 47: Entry Aids in Material Master Maintenance

The following entry aids facilitate material master maintenance:

SettingsMany presettings can be used to avoid entering or selecting the same datamore than once. You can preset the views that you are responsible for inthe Select Views dialog box. You can also decide whether the dialog box isdisplayed only if you specifically request it. Similar presettings are alsopossible for the Organizational Levels.In Create material (transaction MM01), you can choose Defaults → IndustrySector to specify the industry sector and then hide this field.

Note: The default values specified like this are user-specific and canbe overwritten or reset at any time.



Reference materialWhen you create a material master record, you can also copy the data froman existing master record. On the initial screen, enter the number of thereference material in the corresponding field. The dialog box for enteringthe organizational levels will then contain additional fields for specifyingthe organizational levels of the reference material. If you want to copy thepurchasing data for a material, determine the following:

• Whether only purchasing data that is valid for a single client is to becopied from the reference. In this case, do not enter a plant for thereference.

• Whether the plant-specific data of a particular plant is also to be copiedfrom the reference. In this case, you specify a plant (for which thereference material is created).

ProfilesIf a material is to be automatically planned or forecasted, you must createdata for it in the material master record. To simplify entry of this data, youcan use MRP and forecast profiles. A profile is a key you can use to storeMRP or forecast parameters independently of the material master record.This means that a profile is a collection of information for the configurationof material master records. The information stored in a profile is standardinformation that is required for maintaining different materials again andagain in the same or a similar constellation.If you create MRP or forecast data for a material, you can enter the profilesin the Organizational Levels dialog box.

Collective entry of storage location dataOne material can be stored in various storage locations. To save storagelocation-specific data for a material master record, you must create or extendthe material master record for each storage location that is affected.If the material master record already exists, the storage location-specific datacan be added to it manually or automatically:

• Manually: Here you enter the storage locations for a material masterrecord using collective entry. This is much faster than entering the dataindividually for each storage location.

In the Material Master menu, the function is under Other → EnterStorage Locations (transaction MMSC).

• Automatically: Here the system automatically adds the storagelocation data to the material master record with the first goods receiptposting. All data that refers to the storage location affected is updated inthe material master record. The system must be configured accordinglyin Customizing for Inventory Management and Physical Inventoryunder Create Storage Location Automatically.



Mass maintenanceYou can use a special mass change function to change several materialmaster records at the same time (for example, if existing data needs to bechanged due to new circumstances). However, only experienced usersshould execute this function.



Exercise 6: Entry Aids

Exercise ObjectivesAfter completing this exercise, you will be able to:• Copy material master records• Use collective entry for storage location data

Business ExampleYou are responsible for creating and maintaining material master records inyour company. Add data for another plant to the material master record for theheadlights. As a reference, use the data of the material that you have alreadyentered for plant 1000.

Task: Entry Aids for Material Master RecordThe headlight is now also used in plant 1200. You must therefore extend thematerial master record with the data for this plant.

1. Copy material master record

Create the material master record T-M500Y## for plant 1200 and storagelocation 0001. As a reference, use the data from the material master recordthat has already been created for plant 1000 and storage location 0001.

Create the views Purchasing, Accounting 1 and General PlantData/Storage 1.

Hint: When working with reference materials, it is a good idea to setthe Create views selected indicator in the Select Views dialog box.If you set this indicator, it has the advantage that you can save yourdata immediately from the view copied first. Then you do not haveto confirm each of the selected views with Enter.

Caution: Remember to enter the organization levels (plant 1000,storage location 0001) as a reference.

Save your entries and then make sure that all data is adopted correctly.

2. Change material master record

Change the purchasing and accounting data for material T-M500Y## forplant 1200. The changes should be valid immediately.




In plant 1200, the system should always propose that the material is postedto quality inspection stock when it is received. The material is also assignedto the valuation class 3001 in this plant, and is valuated with the standardprice of 80 EUR.

Save your entries after the change.

3. Display change documents for a material

Find out when the accounting data for material T-M500Y## in plant 1200was last changed.

Date: ______________________________

4. Enter material data for several storage locations

You store material T-M500Y## in plant 1200 in several storage locations.Enter the data for these additional storage locations using collective entryfor storage locations.

StorageLocation

Bin

0002: BL-02

0003: AB-10

5. Materials list

Check whether your material has actually been created for plants 1000and 1200. Display the material list for material T-M500Y## and plants1000 and 1200.

It is particularly important to check that the valuation data is consistent withthe information from the previous exercises.

Hint: Try to limit the information you specify in the materials listas much as possible, so that the system does not have to search toomany data records.



Solution 6: Entry AidsTask: Entry Aids for Material Master RecordThe headlight is now also used in plant 1200. You must therefore extend thematerial master record with the data for this plant.

1. Copy material master record

Create the material master record T-M500Y## for plant 1200 and storagelocation 0001. As a reference, use the data from the material master recordthat has already been created for plant 1000 and storage location 0001.

Create the views Purchasing, Accounting 1 and General PlantData/Storage 1.

Hint: When working with reference materials, it is a good idea to setthe Create views selected indicator in the Select Views dialog box.If you set this indicator, it has the advantage that you can save yourdata immediately from the view copied first. Then you do not haveto confirm each of the selected views with Enter.

Caution: Remember to enter the organization levels (plant 1000,storage location 0001) as a reference.




Save your entries and then make sure that all data is adopted correctly.



Material T-M500Y##

Copy from material T-M500Y##

Choose (Continue). If necessary, confirm the message that thematerial type and industry sector will be copied from the materialmaster record with Enter.

c) Select the following views:

• Purchasing• General Plant Data/Storage 1• Accounting 1

Caution: Set the Create views selected indicator.

Choose (Continue).

d) Enter the following data in the Organizational Levels dialog box:

Caution: Do not forget the entries for the reference.

Copy from

Plant 1200 1000

Storage Location 0001 0001

Choose (Continue).

e) Choose (Save).

2. Change material master record

Change the purchasing and accounting data for material T-M500Y## forplant 1200. The changes should be valid immediately.

In plant 1200, the system should always propose that the material is postedto quality inspection stock when it is received. The material is also assignedto the valuation class 3001 in this plant, and is valuated with the standardprice of 80 EUR.




Save your entries after the change.

a) Choose Logistics → Materials Management → Material Master →Material → Change → Immediately (MM02).

b) Enter material T-M500Y## on the initial screen and choose(Continue).

c) Select the following views:

• Purchasing• Accounting1

Choose (Continue).

d) Enter plant 1200 in the Organizational Levels dialog box.

Choose (Continue).

e) Enter the following data on the views:

Purchasing

Post to inspection stock

Financial Accounting 1

Valuation Class 3001 (Raw materials 2)

Price Control S

Moving Price <delete>

Standard Price 80

f) Choose (Save).

3. Display change documents for a material

Find out when the accounting data for material T-M500Y## in plant 1200was last changed.




Date: ______________________________

a) Choose Logistics → Materials Management → Material Master →Material → Display Changes → Active Changes (MM04).

b) Enter the following data on the selection screen:

Material T-M500Y##

Plant 1200

c) Choose (Execute).

d) To display details of a change, place the cursor on the required line andclick on (Choose). Display the details of the change that was madewith transaction MM02.

4. Enter material data for several storage locations

You store material T-M500Y## in plant 1200 in several storage locations.Enter the data for these additional storage locations using collective entryfor storage locations.




StorageLocation

Bin

0002: BL-02

0003: AB-10

a) To do this, choose Logistics → Materials Management → MaterialMaster → Other → Enter Storage Locations (MMSC).


Material T-M500Y##

Plant 1200

Choose (Enter).

c) Enter the following data:

Storage Location Bin

0002 BL-02

0003 AB-10

d) Choose (Save).

5. Materials list

Check whether your material has actually been created for plants 1000and 1200. Display the material list for material T-M500Y## and plants1000 and 1200.




It is particularly important to check that the valuation data is consistent withthe information from the previous exercises.

Hint: Try to limit the information you specify in the materials listas much as possible, so that the system does not have to search toomany data records.

a) Choose Logistics → Materials Management → Material Master →Other → Materials List (MM60).


Material T-M500Y##

Plant 1000 to 1200


d) Material T-M500Y## should be created in plants 1000 and 1200. Inplant 1000, the material should be valuated with a moving average priceof EUR 80. In plant 1200, however, the material should be valuatedwith a standard price of EUR 80.



Lesson Summary

You should now be able to:• List the different entry aids for the maintenance of the vendor master record

and material master record• Outline the creation of a vendor master record with reference• Create a material master record with reference material• Use collective entry for storage location data in the material master record



Lesson: Mass Maintenance (Optional)

Lesson OverviewCross-application mass maintenance is a tool that you can use to change manyobjects simultaneously. These objects include material and vendor master data,info records, and purchasing documents. An overview of the mass maintenancefunctions is provided in this lesson and explained using a simple example of theprocess.


• Name the objects that can be processed using the mass maintenance function• Outline the flow of mass maintenance

Business ExampleA restructuring of your purchasing department changes the dependencies of theindividual buyers too. To document these new dependencies for the procurementof materials correctly, the purchasing group in the purchasing data must bechanged in many material master records. This change is to be carried out usingthe mass maintenance tool.

Overview of Mass MaintenanceMass maintenance is a generic (cross-application) tool that can be used to changelarge quantities of data or create new data.

Caution: With mass maintenance, you can change many objects at thesame time. This tool should therefore be used only by users with thecorresponding experience. These people must also have knowledge of thefield names and tables used in the SAP system.


TSCM50 Lesson: Mass Maintenance (Optional)

Figure 48: Mass Maintenance for Data Objects

This tool can be used by, amongst others, the applications listed in the figure“Mass Maintenance for Data Objects”.

You can change the data in the material master records quickly and easily in onesimple step. For example you have the option of changing the purchasing group oradjusting the GR processing time in several materials.

You can perform mass maintenance online or in the background. If you want tochange many objects at the same time, choose background mode to avoid systemstrain. In this case, the system issues a log with the changes executed and anyerrors that occurred.

The system performs a consistency check for the changed data. The system doesnot make any changes that would lead to data inconsistencies. It flags theseentries in the log.

Mass Maintenance Process FlowYou can find the mass maintenance tool under Logistics → Central Functions.You use the object type to decide which application you want to use it for. If youaccess mass maintenance from the menu of an application, the correct objecttype appears automatically (for example, Logistics → Materials Management →Material Master → Material → Mass Maintenance).



Figure 49: Perform Mass Maintenance (1)

When you have selected the object type, the system displays the relevant tablesand fields. Select the tables in which you want to change data. Select severaltables only if you want to make the changes in all tables at the same time to keepthe data consistent. Otherwise, edit the tables one at a time to avoid poor systemperformance.



TSCM50 Lesson: Mass Maintenance (Optional)

To limit the number of objects to change, enter your required selection criteria.With (Choose selection fields) you can select further fields. With (Execute)you start the selection of data records. Depending on the number of selecteddata records, the system asks if you want to execute the changes online or in thebackground.


Then choose the fields you want to change using (Select fields), and enter thenew values in the corresponding columns. Select the column header and the datarecords to be changed, and choose (Carry out a mass change).

You also have the option of changing a field entry only when it has a particularvalue. To do this, choose Restrictions and enter the new value in the first lineand the value to be replaced in the second line.

Save the changes. Thereby the system performs a consistency check.



Lesson Summary

You should now be able to:• Name the objects that can be processed using the mass maintenance function• Outline the flow of mass maintenance

Related Information

• For further information about the mass maintenance function, refer tothe SAP Documentation underSAP ERP → SAP ERP Cross-ApplicationFunctions → Cross-Application Mass Maintenance.


TSCM50 Unit Summary

Unit SummaryYou should now be able to:• Explain the significance of vendor master records• Create and maintain vendor master records• Name the organizational levels that are important for the maintenance of

vendor master records• Explain the significance of material master records• Create and maintain material master records• Name the organizational levels that are important for the maintenance of

material master records• List the different entry aids for the maintenance of the vendor master record

and material master record• Outline the creation of a vendor master record with reference• Create a material master record with reference material• Use collective entry for storage location data in the material master record• Name the objects that can be processed using the mass maintenance function• Outline the flow of mass maintenance


Unit Summary TSCM50



Test Your Knowledge

1. Which organizational levels play a role in the maintenance of vendor masterdata?Choose the correct answer(s).□ A Client□ B Company code□ C Plant□ D Storage location□ E Purchasing organization□ F Purchasing group

2. When you create a master record for a vendor, you must enter all relevantdata for purchasing and accounting in one single step.Determine whether this statement is true or false.□ True□ False

3. When creating a vendor master record, you have to specify an. This key has

properties for selection and assignment, forexample. To be able to enter invoices submitted by this vendor, you mustat least specify the in the

data.Fill in the blanks to complete the sentence.

4. The material master record represents the sourceof material-specific data for an enterprise. The integration of allmaterial data in a single database object eliminates the problem of

. The stored data can be used jointly by all.

Fill in the blanks to complete the sentence.

5. You wish to create a master record for a material you intend to procureexternally for warehouse stock. Which views must you create (as aminimum) to be able to map this procurement process in the system?



6. When creating a material master record, you have to specify a material type.Among other things, the material type controls:Choose the correct answer(s).□ A The type of number assignment□ B The permissible length of the material short text□ C Whether a material may be ordered□ D Which views (user-department-specific data) can be maintained□ E Whether a material may not be procured from certain vendors

7. Client, , and are examples oforganizational levels that play a role in the maintenance of material masterrecords.Fill in the blanks to complete the sentence.

8. If you wish to add a view to a material, you must make a change to thematerial master record.Determine whether this statement is true or false.□ True□ False

9. List at least three different entry aids that you can use for processing materialmaster records.

10. When creating a vendor master record with reference, you can decidewhether or not the address data is to be copied from the reference.Determine whether this statement is true or false.□ True□ False

11. If you use another material master record with reference when creating amaterial, the data is always copied from the reference.Determine whether this statement is true or false.□ True□ False



Answers

1. Which organizational levels play a role in the maintenance of vendor masterdata?

Answer: A, B, C, E

In the vendor master record, a distinction is made between data that is validfor a single client and data that is specific to company codes and purchasingorganizations. In addition, you have the option of entering data at the plantand vendor subrange levels.

2. When you create a master record for a vendor, you must enter all relevantdata for purchasing and accounting in one single step.

Answer: False

You can use what is known as decentralized maintenance for vendor masterrecords. In this case, the purchasing and accounting departments eachmaintain their relevant data using a separate transaction. This means that thevendor data does not all have to be entered in a single step.

3. When creating a vendor master record, you have to specify an account group.This key has controlling properties for field selection and number assignment,for example. To be able to enter invoices submitted by this vendor, you mustat least specify the reconciliation account in the company code data.

Answer: account group, controlling, field, number, reconciliation account,company code

4. The material master record represents the central source of material-specificdata for an enterprise. The integration of all material data in a single databaseobject eliminates the problem of data redundancy. The stored data can beused jointly by all user departments.

Answer: central, data redundancy, user departments



5. You wish to create a master record for a material you intend to procureexternally for warehouse stock. Which views must you create (as aminimum) to be able to map this procurement process in the system?

Answer: Before you can procure the material, you must have created at leastthe purchasing data and the accounting data. You can post a goods receiptwithout creating the general plant/storage if a relevant setting has been madein Customizing.

6. When creating a material master record, you have to specify a material type.Among other things, the material type controls:

Answer: A, C, D

You use the material type to group your materials (for example, accordingto raw materials, finished products, and operating supplies). The materialtype has important control functions. It determines the type of numberassignment and the permissible number range interval, as well as the allowedprocurement types and the views that you can maintain. Furthermore, thematerial type also plays an (indirect) role in account determination, as itdetermines which stock accounts are found for these materials.

7. Client, plant, and storage location are examples of organizational levels thatplay a role in the maintenance of material master records.

Answer: plant, storage location

Data at client level: General material data that is valid for the whole companyis stored at client level (for example, the short text).Data at plant level: All data that is valid within a plant and for all storagelocations belonging to it is stored at plant level (for example, the purchasinggroup).Data at storage location level: All data that is valid for a particular storagelocation is stored at storage location level (for example, the storage bin).

8. If you wish to add a view to a material, you must make a change to thematerial master record.

Answer: False

To add new views to a material master record, you must create these viewsfor the material. This also applies if you need a view for a new organizationallevel.



9. List at least three different entry aids that you can use for processing materialmaster records.

Answer: The following are examples of entry aids for processing thematerial master record:

• Presettings for industry sector, views and organizational levels• Collective entry of storage location data• Use of reference material• Use of profiles• Mass maintenance

10. When creating a vendor master record with reference, you can decidewhether or not the address data is to be copied from the reference.

Answer: False

Vendor-specific data is never copied from the reference into the new vendormaster record.

11. If you use another material master record with reference when creating amaterial, the data is always copied from the reference.

Answer: False

The system copies only the data about the selected views and theorganizational levels specified for the reference from the reference material.


Unit 3Procurement of Stock Material

Unit OverviewIn this unit, the procurement process starts with a request for quotation todetermine the most favorable price for a material. The purchase order is thencreated with reference to the lowest quotation. The lesson on purchasing inforecords explains how to store vendor-dependent prices and information about amaterial in the system on a long-term basis.

Another key topic in this unit is material valuation. Using stock material as anexample, it discusses in detail material valuation and the postings that take placeupon goods receipt and invoice receipt.


• Name documents and master data in which conditions are used• Explain the difference between time-dependent and time-independent

conditions• Create several RFQs for an RFQ activity• Enter the incoming quotations for your RFQs• Execute a price comparison for your quotations• Use the document overview in transaction ME21N• Create purchase orders by referencing RFQs• List the organizational levels relevant for purchasing info records• List the ways in which purchasing info records can be created• Maintain a purchasing info record• Explain the significance of the valuation area• Describe the function of the valuation class• Explain material valuation with the moving average price• Explain material valuation with the standard price• Display the stock overview• List the stock types• Enter a goods receipt in the quality inspection stock


Unit 3: Procurement of Stock Material TSCM50

• List the documents created during goods movements posting and explaintheir meaning

• Analyze the postings during goods receipt into the warehouse• Enter an invoice with unplanned delivery costs in Logistics Invoice

Verification• Display the accounting document for an invoice• Explain the postings in the invoice

Unit ContentsLesson: Conditions ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .139Lesson: Request for Quotation / Quotation Processing ... . . . . . . . . . . . . . . . .144

Procedure: Creating RFQs... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .148Procedure: Entering Quotations ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .151Exercise 7: Request for Quotation and Quotation Processing ... . . . .153

Lesson: Creating a Purchase Order with Reference... . . . . . . . . . . . . . . . . . . . .165Procedure: Configuring the Document Overview ... . . . . . . . . . . . . . . . . . . .170Exercise 8: Creating a Purchase Order with Reference ... . . . . . . . . . . .173

Lesson: Purchasing Info Record... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .181Exercise 9: Maintain Purchasing Info Record ... . . . . . . . . . . . . . . . . . . . . . . .189

Lesson: Material Valuation Basics .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .199Lesson: Stock Types, Valuation, GR in Warehouse... . . . . . . . . . . . . . . . . . . . . .209

Exercise 10: Stocks, Valuation, and Goods Receipt. . . . . . . . . . . . . . . . . . .217Lesson: Invoice Verification and Delivery Costs .. . . . . . . . . . . . . . . . . . . . . . . . . . .236

Exercise 11: Invoice Verification with Unplanned Delivery Costs .. . .243


TSCM50 Lesson: Conditions

Lesson: Conditions

Lesson OverviewThis lesson will give you a first insight into condition technique.


• Name documents and master data in which conditions are used• Explain the difference between time-dependent and time-independent

conditions

Business ExampleThe prices negotiated with your vendors often consist of several components:The material price, discounts, surcharges, and freight costs. As a member of theproject team, you want to find out whether the SAP system can process differentconditions.

Conditions in PurchasingConditions are agreements with vendors about prices, surcharges and discounts,and so on. Conditions can be maintained when entering quotations, info records,outline agreements (contracts, scheduling agreements) and purchase orders. Thenet and effective prices in a purchasing document are determined on the basisof these conditions. You can also store general conditions at vendor level, forexample. The system then uses these conditions for price determination.



Figure 52: Conditions

The following types of conditions are used in Purchasing:

• Conditions in a contract apply to all contract release orders created withreference to this contract.

• Conditions in a purchasing info record apply to all purchase order items thatcontain the material and vendor in the purchasing info record.

• With “general” conditions, you can also display price agreements thatdo not only apply to individual quotations, outline agreements, purchaseorders or info records, for example, if a vendor has a price reduction on allpurchase orders as a two-month special offer. You enter general conditionsin Purchasing under Master Data → Conditions.

Time Dependency of ConditionsYou must decide whether conditions are time-dependent or time-independent.Time-dependent conditions are valid during a particular time period. Withtime-independent conditions, you cannot determine a validity period; the validitycorresponds with that of the relevant purchasing document.



Figure 53: Conditions – Time Dependency

Conditions in info records, contracts and general conditions are time-dependentconditions. However, conditions in purchase orders are always time-independentconditions.

You use the document type to control whether time-dependent conditions areavailable for quotations and scheduling agreements. In Customizing, you need tohave set the Time-dependent conditions indicator for the particular document type.

You can define both time-dependent and time-independent conditions at headerand item levels. Header conditions apply to all items in the document. However,item conditions apply only to the respective item.

Hint: If the conditions show an exception in the info record, they arestored at info record level.

For time-dependent conditions, you can create price scales and map thedependency of the price on the quantity, for example.

Condition Type and Calculation SchemaThe different “price factors” such as gross price, discounts, freight costs, customs,and taxes are mapped using condition types. The condition type determines howthe price factor is calculated. You can choose between absolute, percentage,



or quantity-dependent. The condition type is also used to define the referencemagnitude for scales. The scale can refer to the quantity, the item value, or theweight.

An access sequence can be assigned to a condition type. The access sequence isa search strategy used to define the sequence in which condition records for acondition type are read.

The condition types that play a role in price determination are grouped togetherin a calculation schema. The calculation schema provides a framework for pricedetermination. It determines the sequence in which the condition types are takeninto account.

Figure 54: Calculation Schema

The calculation schema determines the following:

• The subtotals

Hint: For time-dependent conditions, no subtotals are formed (netprice, effective price).

• The extent to which manual processing of price determination is possible• The basis (reference level) on which the system calculates surcharges and

discounts in percentages• The prerequisites that have to be filled so that a particular condition type

is taken into consideration

You can define different calculation schemes, for example, for the individualpurchasing organizations and vendors.



Lesson Summary

You should now be able to:• Name documents and master data in which conditions are used• Explain the difference between time-dependent and time-independent

conditions



Lesson: Request for Quotation / Quotation Processing

Lesson OverviewThis lesson covers the transactions for entering RFQs and quotations. You willalso learn how to request quotations from a vendor that does not have a specificmaster record in the system.


• Create several RFQs for an RFQ activity• Enter the incoming quotations for your RFQs• Execute a price comparison for your quotations

Business ExampleTo determine the most favorable conditions, request quotations from severalvendors before you procure materials for the first time. As a responsible employeein purchasing, you would also like to test RFQ / quotation processing.

Procurement Process with RFQ and QuotationThis lesson introduces the first step of a procurement process, and the vendor isdetermined at the start. For this purpose, send requests for quotation (RFQs) todifferent vendors and enter the incoming quotations in the system to compare theconditions of the individual vendors.

Note: Further on in the procurement process, use the data from thequotations already entered. You can create the purchase order withreference to one of the quotations, but also update conditions from thequotation in a purchasing info record.


TSCM50 Lesson: Request for Quotation / Quotation Processing

Figure 55: Stock Material Procurement – RFQ and Quotation

As a buyer, you have the task of converting requirements for materials or servicesinto purchase orders.

An RFQ activity with various vendors is a means of determining a source ofsupply.

Figure 56: RFQ / Quotation

First, you enter a request for quotation for the material to be procured or for therequired service. You can create RFQs manually, copy another RFQ, or use apurchase requisition or outline agreement as a reference. Using other purchasing



documents as a reference has the advantage that you do not have to enter all thedata manually, but can adopt it from the reference. You send the RFQs to theselected vendors.

The vendors send their quotations or rejections. The vendors price and deliverydate specifications are entered directly in the original RFQ in a transaction forquotation maintenance. In this way an RFQ becomes a quotation.

You can determine the most favorable items or quotation using a quotationcomparison. You can also save the conditions for quotations in which you areinterested in a purchasing info records.

Collective Number

Figure 57: Collective Number

You can link several RFQs that belong together using a collective number. Youenter the collective number in the header data of the RFQ. When analyzing RFQsand quotations, you can use the collective number as a selection criterion.

The collective number can have a maximum of ten characters and can bealphanumeric.

One-Time VendorYou can create special master records for vendors from whom you request orprocure a material only once or very rarely. These are one-time vendor masterrecords.



Unlike other master records, a one-time vendor master record is used for severalvendors to avoid creating many unnecessary master records. Therefore, you cannotsave vendor-specific data in the master record for one-time vendors. You use aone-time account group when creating a one-time vendor master record. Usingthis account group, the vendor-specific fields are hidden in the material master.

Figure 58: One-Time Vendor

When creating a purchasing document with a one-time vendor, you must maintainthe vendor address. If you enter an invoice with a one-time vendor as the invoicingparty, you have to enter information such as missing bank data manually.

The vendor-specific data that you entered manually is saved only in the relevantdocuments (and not in the one-time vendor master record). But you can stillexecute evaluations for one-time vendors. For this, use the vendor name as thesearch term.



Creating RFQsUseIf you request quotations from several vendors, you must create an RFQ documentin the system for each vendor. To rationalize the relevant entry process, youfirst enter the data that is identical in all documents (materials, quantities, dates,collective RFQs). Then you enter the vendor assignment.

The following figure “Function Flow – Creating RFQs” displays the mostimportant steps for creating an RFQ manually.

Procedure

Figure 59: Function Process – Creating RFQs

1. From the SAP Easy Access menu, choose Logistics → MaterialsManagement → Purchasing → RFQ/Quotation → Request for Quotation →Create (ME41).

This takes you to the initial screen.




2. Enter the RFQ type, quotation deadline, purchasing organization, andpurchasing group. You can also enter default values for the items (if youenter the delivery date, for example, this date appears as the default value foreach item). You can change the default value at any time.

Note: If you want to request quotations for materials across plants,ensure that you have not specified a plant in the default values forthe items.

3. Choose (Enter).

This takes you to the Header detail screen.

Note: If the collective number is not set as a required field, this willtake you directly to the Item overview.

4. Enter a collective number.

5. Choose (Enter).

This takes you to the Item overview.

6. For each item, enter the desired material with quantity and delivery date.

Note: You can request quotations for materials both with andwithout a master record. If there is no master record for a material,leave the material number field blank and enter only a short text. Forthese items, you must also enter the material group and the purchaseorder unit manually.

7. Optional: If you want to check or extend the detail data of an item, firstselect this item and then choose Item → Details or choose the button(Item details) .

8. Choose Header → Vendor address or the button (Vendor address) .

Enter the number of the vendor. The system then copies the address datafrom the vendor master record. When entering a one-time vendor number,you must enter the complete address yourself.

9. Choose (Save), to create the RFQ.

For every other vendor to receive the RFQ, enter the vendor number andsave the document.

10. To end the RFQ creation, choose (Exit).



Quotation Entry and Price Comparison ListThe quotation contains a vendor's prices and conditions for the materials orservices specified in the RFQ. RFQ and quotation are the same document in thesystem.

Use transaction ME47 Maintain Quotation to enter the quotation data in an RFQ.

Figure 60: Quotation Processing

Use the quotation price comparison list if you want to enter and/or compare theinformation from several quotations at the same time. The price comparison listdisplays the best quotation for each material. The system also determines thebest overall quotation.

You can save useful quotation data for a material in a purchasing info record. Theinfo record can be created automatically by setting the Info update indicator duringquotation maintenance in the item detail.

You can set a rejection indicator for quotation items that do not interest you. Thesystem then generates a rejection letter for the vendors.



Entering QuotationsUseYou have created RFQs in the system and sent them to vendors. Now you willreceive the vendor quotations in response to your RFQs. You enter the pricesin the RFQ documents.

Procedure1. From the SAP Easy Accessmenu, choose Logistics→Materials Management

→ Purchasing → RFQ/Quotation → Quotation → Maintain (ME47).

This takes you to the initial screen for maintaining quotations.

2. Enter the number of the RFQ and choose Enter.

This takes you to the RFQ item overview.

3. You can enter the vendor price directly in the item overview or for each itemon the item detail screen. If the price is composed of different conditiontypes such as gross price, discount, and freight, choose Item → Conditions toget to the condition screen.

Hint: Whether or not you can enter time-dependent conditions inthe quotation depends on the document type of the RFQ.

4. If necessary, enter more data (such as the delivery date) from the vendorquotation.

5. Save your entries.



Exercise 7: Request for Quotation andQuotation Processing

Exercise ObjectivesAfter completing this exercise, you will be able to:• Create RFQs for master and one-time vendors• Maintain and compare quotations in the system• Display and print RFQs and rejections

Business ExampleYou have added a new material to your product range. Because you do not yetknow from which vendor you can procure the material at the best price, start anRFQ/quotation activity.

Task 1: RFQ ProcessingTo get the best purchase price for the Universal-taillight-##, California (materialmaster record T-M500B##), send RFQs to several vendors.

1. Create RFQs

Create RFQs for a base quantity of 100 pieces of material T-M500B## forthree different vendors: Enter the RFQs under the collective number GR##.Do not specify a plant in the RFQ.

Hint: If you create a purchase order with reference to a quotation,you can freely select the plant in the PO item only if no plant isspecified in the RFQ item. If a plant is specified in the RFQ item,you can order for this plant only.

You should therefore specify a plant for a RFQ only if you want toprocure the material for this plant.

You have heard about a prospective new vendor, with whom you have neverhad any business dealings. To test the vendor's abilities, send an RFQ for therequired headlight. Because you do not want to create an individual masterrecord for this vendor, use the one-time vendor master record 1950. Forfurther RFQs, contact vendors T-K500A## and T-K500B##.

Create three RFQs, using the entries above and below:




RFQ date: Current date

Quotation deadline: Current date + 2 weeks

Purchasing organization: 1000

Purchasing group: T##

Delivery date: Current date + 1 month

Plant: Do not specify a plant

First vendor: 1950 (one-time vendor)

Enter any name and address for the one-time vendor.

RFQ number: _______________________

Second vendor: T-K500A## (Motolux GmbH Group##)

RFQ number: _______________________

Third vendor: T-K500B## (Rasch Group##)

RFQ number: _______________________ _______________________

2. Display and print RFQ

Print your three RFQs as messages. Select all messages for the RFQs in yourpurchasing group T##. Before you print the messages, display the RFQ forthe main vendor T-K500A## as a print preview on your screen.

Task 2: Quotation ProcessingYou have received the quotations for your RFQs. Maintain the quotations in thesystem, according to requirements.

1. Entering quotations

The vendors gave you the following information about prices and deliverytimes for the Universal-Taillight-##, California. Enter the data in theRFQ/quotation document for the particular vendors.

One-time vendor:

Material costs: Gross price (PBXX): 79 EUR/PC

Conditions: Discount % on gross (RA01): 3%

Freight (Value) FRB1: 100 EUR

Delivery date: Current date + 6 weeks




Vendor T-K500A## (Motolux GmbH Group##):



Delivery date: Current date 4 weeks

Vendor T-K500B## (Rasch Group##):




2. Compare prices

To determine the most favorable supplier, execute a price comparison forthe three quotations entered.

Select the quotations to be compared with the collective number GR## andpurchasing organization 1000. Display the mean value quotation in the pricecomparison list and include the discount in the price calculation.

Determine the most reasonable quotation.

Vendor with the most reasonable quotation: _______________________

Price of most reasonable quotation (less discount):_______________________

3. Display the price comparison list in the ALV grid control

You want the system to also take the delivery date and the payment terms intoaccount when comparing the three quotations. To do this, you can go directlyfrom the price comparison list to the individual quotation. However, youcan also change how the price comparison list is displayed in the ALV gridcontrol to ensure that the list displays delivery date and the payment terms.

To do this, change the settings for the user parameterME_USE_GRID.Set the parameter value to X. Then call the price comparison list for yourquotations again and select the layout /SCM500.

Then undo the setting for the user parameter.

4. Print rejection letters




After you have checked the quotations again, select the most reasonablequotation. For the two quotations that you do not require, set the rejectionindicator.

Send the two rejection letters. Select message type ABSA and yourpurchasing group T##. Look at the letter on the screen for vendorT-K500A## before you print it. Is the letter marked as a rejection letter?



Solution 7: Request for Quotation andQuotation ProcessingTask 1: RFQ ProcessingTo get the best purchase price for the Universal-taillight-##, California (materialmaster record T-M500B##), send RFQs to several vendors.

1. Create RFQs

Create RFQs for a base quantity of 100 pieces of material T-M500B## forthree different vendors: Enter the RFQs under the collective number GR##.Do not specify a plant in the RFQ.

Hint: If you create a purchase order with reference to a quotation,you can freely select the plant in the PO item only if no plant isspecified in the RFQ item. If a plant is specified in the RFQ item,you can order for this plant only.

You should therefore specify a plant for a RFQ only if you want toprocure the material for this plant.

You have heard about a prospective new vendor, with whom you have neverhad any business dealings. To test the vendor's abilities, send an RFQ for therequired headlight. Because you do not want to create an individual masterrecord for this vendor, use the one-time vendor master record 1950. Forfurther RFQs, contact vendors T-K500A## and T-K500B##.

Create three RFQs, using the entries above and below:

RFQ date: Current date

Quotation deadline: Current date + 2 weeks

Purchasing organization: 1000

Purchasing group: T##

Delivery date: Current date + 1 month

Plant: Do not specify a plant

First vendor: 1950 (one-time vendor)

Enter any name and address for the one-time vendor.

RFQ number: _______________________

Second vendor: T-K500A## (Motolux GmbH Group##)




RFQ number: _______________________

Third vendor: T-K500B## (Rasch Group##)

RFQ number: _______________________ _______________________

a) Choose Logistics → Materials Management → Purchasing →RFQ/Quotation → Request for Quotation → Create (ME41).



RFQ date <Current date>

Quotation deadline <Current date + 2 weeks>

Purchasing organization 1000


Delivery date <Current date + 1 month>

Plant <No entry>

c) Choose (Enter).

d) On the Header Data screen, enter the collective number GR##.

e) Choose (Enter).

f) Enter the following data on the Item Overview screen:


Material T-M500B##

RFQ quantity 100

g) Choose Header → Vendor address.

h) Enter vendor 1950 and any address.

i) Choose (Save) and note the RFQ number.

j) Repeat steps h) and i) for vendors T-K500A## and T-K500B##.For these vendors, the system copies over the address from the masterrecord.

k) Choose (Exit) to leave the transaction.

2. Display and print RFQ




Print your three RFQs as messages. Select all messages for the RFQs in yourpurchasing group T##. Before you print the messages, display the RFQ forthe main vendor T-K500A## as a print preview on your screen.

a) Choose Logistics → Materials Management → Purchasing→ RFQ/Quotation → Request for Quotation → Messages →Print/Transmit (ME9A)

b) Enter the following selection values:


Document number <delete>




d) Select the entry in the list for vendor T-K500A## and choose Displaymessage.

e) In the print preview, choose (Back).

f) Choose (Select all) and then Output message.

Task 2: Quotation ProcessingYou have received the quotations for your RFQs. Maintain the quotations in thesystem, according to requirements.

1. Entering quotations

The vendors gave you the following information about prices and deliverytimes for the Universal-Taillight-##, California. Enter the data in theRFQ/quotation document for the particular vendors.

One-time vendor:



Freight (Value) FRB1: 100 EUR

Delivery date: Current date + 6 weeks




Vendor T-K500A## (Motolux GmbH Group##):




Vendor T-K500B## (Rasch Group##):




a) Choose Logistics → Materials Management → Purchasing →RFQ/Quotation → Quotation → Maintain (ME47).

b) On the initial screen, enter the RFQ number for the one-time vendorfrom the previous exercise (for vendor master record 1950) and choose

(Enter).

c) Change the delivery date to <Current date + 6 weeks>.

d) Select the item and choose (Item conditions).

Hint: If necessary, confirm the message for the statisticallyrelevant delivery date using Enter. The statistically relevantdelivery date is relevant for the vendor evaluation.

e) Enter the conditions specified above for the one-time vendor.

f) Choose (Save).

g) Repeat steps b) to f) for the quotations of vendors T-K500A## andT-K500B##.

2. Compare prices

To determine the most favorable supplier, execute a price comparison forthe three quotations entered.

Select the quotations to be compared with the collective number GR## andpurchasing organization 1000. Display the mean value quotation in the pricecomparison list and include the discount in the price calculation.




Determine the most reasonable quotation.

Vendor with the most reasonable quotation: _______________________

Price of most reasonable quotation (less discount):_______________________

a) Choose Logistics → Materials Management → Purchasing →RFQ/Quotation → Quotation → Price Comparison (ME49).




Collective RFQ GR##

Mean value quotation

Include discount


d) From the Price Comparison List you can see that vendor T-K500B##has the most reasonable quotation with a price less discount of EUR71.59 per piece.

3. Display the price comparison list in the ALV grid control

You want the system to also take the delivery date and the payment terms intoaccount when comparing the three quotations. To do this, you can go directlyfrom the price comparison list to the individual quotation. However, youcan also change how the price comparison list is displayed in the ALV gridcontrol to ensure that the list displays delivery date and the payment terms.

To do this, change the settings for the user parameterME_USE_GRID.Set the parameter value to X. Then call the price comparison list for yourquotations again and select the layout /SCM500.




Then undo the setting for the user parameter.

a) Choose System → User profile → Own data.

b) Select the Parameters tab page and enter the value X (in uppercase) forthe parameter ME_USE_GRID.

c) Save your user changes.

d) Choose Logistics → Materials Management → Purchasing →RFQ/Quotation → Quotation → Price Comparison (ME49).

e) Enter the following data on the selection screen:



Collective RFQ GR##

Mean Value Quotation

Include Discounts

f) Choose (Execute). The price comparison list is displayed in theALV grid control.

g) Choose Settings → Layout → Choose and select the layout /SCM500.

The delivery date and the payment terms should now be displayed inthe list.

h) To undo the user parameter setting, proceed as described for thedeletion steps a) to c).

Hint: Do not exit the price comparison list because you canuse it to process the following task.

.

4. Print rejection letters

After you have checked the quotations again, select the most reasonablequotation. For the two quotations that you do not require, set the rejectionindicator.




Send the two rejection letters. Select message type ABSA and yourpurchasing group T##. Look at the letter on the screen for vendorT-K500A## before you print it. Is the letter marked as a rejection letter?

a) From the price comparison list, go to the quotations to be rejected.Position the cursor on the quotation number.

b) You then have several options for changing the quotation:

• Choose Quotation.• Choose Edit → Maintain quotation.• Double-click on the number of the quotation item.

The system goes to the quotation and you can set the rejection indicatorin the quotation item.

c) In the item details, set the Rej.Ind. and choose (Save).

d) Repeat steps a) to c) for the second quotation to be rejected.

e) Choose Logistics → Materials Management → Purchasing→ RFQ/Quotation → Request for Quotation → Messages →Print/Transmit (ME9A).

f) Enter the following selection values:


Document number <delete>



Message type ABSA

g) Choose (Execute).

h) Select the entry in the list for vendor T-K500A## and choose Displaymessage. The message is marked as “Rejection for RFQ.”

i) In the print preview, choose (Back).

j) Choose (Select all) and then Output message.



Lesson Summary

You should now be able to:• Create several RFQs for an RFQ activity• Enter the incoming quotations for your RFQs• Execute a price comparison for your quotations


TSCM50 Lesson: Creating a Purchase Order with Reference

Lesson: Creating a Purchase Order with Reference

Lesson OverviewThis lesson describes how to create a purchase order with reference to anotherdocument. For this purpose, the selection and layout in the document overview ofthe purchase order transaction are covered in detail.


• Use the document overview in transaction ME21N• Create purchase orders by referencing RFQs

Business ExampleIn your company, you often enter a purchase order with data that you copiedfrom another document, for example, from an RFQ or an old purchase order. Asa buyer, you test the possibility of using the document overview of the purchaseorder transaction to simplify this process.

Creating a Purchase Order with ReferenceThe procurement process generally consists of at least three steps: Purchase order,goods receipt, and invoice receipt. However, more steps can occur before youcreate the purchase order. Purchase requisitions and the determination of a sourceof supply in an RFQ/quotation can precede the purchase order.

This lesson uses the process shown in the figure “Stock Material Procurement –Purchase Order”.



Figure 61: Stock Material Procurement – Purchase Order

If you have a procurement process with preceding documents for the purchaseorder, you should create the purchase order with reference to one of thesepreceding documents. If reference is made to a purchase requisition, an RFQ or acontract (in this case, a release order), item data and any existing header data iscopied from the preceding document to the purchase order. This reduces the entryeffort required and therefore reduces possible entry errors. You can change mostof the copied data in the purchase order, if necessary.

You also have the option of copying an existing purchase order by using it as atemplate.



Figure 62: Creating a Purchase Order with Reference (ME21N)

In the order transaction ME21N, the document overview makes it very easy tocreate a purchase order with reference.

If you have selected the preceding documents, then select the document or thedocument item(s) and choose (Adopt). You can also move the selecteddocuments into the shopping cart by dragging and dropping them.

Hint: If you double-click the purchase order or purchase requisition, therespective document is displayed (not copied).

For each item, the system updates the document and item number of the templateitem in the purchase order. You can therefore see whether the PO item was createdwith reference to another document item. You can find the exact number of thereferenced document item for each PO item in the item overview.

To create a purchase order with reference to another document, you can alsoenter the number of the document and the number of the item directly in thecorresponding fields in the item overview.

Document Overview in the PO TransactionIn the document overview, you can display the different purchasing documentsthat you require for your daily work. Purchase orders, purchase requisitions,RFQs, and contracts. At the same time, you can process a purchase order orpurchase requisition in the right screen area.



To display a purchase order or purchase requisition from the document overview,simply double-click the relevant item. For the other purchasing documents (RFQ,scheduling agreement, contract) it is not possible to call the display transaction bythe way of double-clicking on the document number in the document overview.

Figure 63: Document Overview in ME21N (and ME51N)

You use the selection variant to decide which documents to select. On theselection screen, you can restrict, for example, vendor, material and time periodof the document creation. If you want to select only the purchase orders or thepurchase requisitions that you created yourself, you can use the selection variants“My purchase orders” and “My purchase requisitions”. You do not need to enterany further selection values here. Specify the selection time period for these twovariants in your Personal settings.

In the breakdown, specify the criteria to be used for sorting the selecteddocuments.

Then you can use the layout to determine the data to be displayed for thedocuments (until 4.6B, layout was known as display variant). This is described inthe following in more detail.



Figure 64: Layout in the Document Overview

Use the layout to change the document overview display. You can then displayadditional fields from the column set, or hide unwanted fields from the columnselection. You can also put the fields in any order you choose.

You have the option of saving these changes as your own layout. You can createyour own cross-user or user-specific layouts. With the “Manage layout” function,you can define one layout as a default setting. This layout is automatically usedwhen you open the document overview.

Hint: The layouts differ according to whether they are layouts forpurchasing documents (purchase orders, requests for quotations, contractsand scheduling agreements) or for purchase requisitions.



Configuring the Document Overview

1. From the SAP Easy Access screen, choose Logistics → MaterialsManagement → Purchasing → Purchase Order → Create →Vendor/Supplying Plant Known (ME21N).

2. Choose Document Overview On if the document overview is not yetdisplayed.

3. Select documents and selection variants.

Choose (Selection variant) and select the document “category” that youwant, for example, RFQs.

You will see the selection screen on which you can limit the selection ofdocuments using different selection criteria.

Note: With (Dynamic selections), you can include additionalselection criteria.

Note: If you use the same values frequently for one selection, youcan save these values as a variant. In the selection screen, chooseGoto → Variants → Save as Variant.

To use an existing variant for the selection, choose Goto → Variants→ Get ....

Choose (Execute).

The selected documents are displayed in the document overview.

4. Determine breakdown.

Choose (Change breakdown).

Move the values to be used for grouping your documents from the columnset to the sort criteria.

Copy your selection with (Transfer).

5. Change layout

Click the dropdown list to the right of to see the context menu for thelayout and choose Change layout.

Move the values that you want to display in the document overview foryour documents from the column set to the column selection (= displayedcolumns).

Copy your selection with (Transfer).

6. Save layout




Click the dropdown list to the right of to see the context menu for thelayout and choose Save layout.

Enter a key and a description for the new layout and decide whether thelayout is to be created specific to a user or cross-user. The key for across-user layout must start with the special character “/ ”.

Hint: You need the correct authorization to create cross-user layouts.

Choose Save.



Exercise 8: Creating a Purchase Orderwith Reference

Exercise ObjectivesAfter completing this exercise, you will be able to:• Create a purchase order with reference to a quotation

Business ExampleAfter an RFQ/quotation activity, you want to order the requested material from thesupplier with the most favorable price. To minimize data-entry time, you referencethe vendor’s quotation when you create the purchase order. Use the documentoverview in the purchase order transaction to do this.

Task: Purchase order entryOrder the Universal-taillight-##, California, from vendor Rasch Gr.##. The RFQactivity proved this to be the best supplier. When creating a purchase order, yourefer to the RFQ to reduce the entry load and avoid entry errors. To establish thereference to the RFQ, use the document overview in the purchase order transaction.

1. Configure the document overview

Select the RFQs for your purchasing group T## and purchasing organization1000. Save the selection as selection variant T## with the description RFQsGroup ##. Execute the selection variant.

Group your RFQs according to vendor and purchasing document. Displaythe item and the material numbers too. Save these settings as layout L##with the description Layout Group ##.

2. Create purchase order with reference to RFQ

For plants 1000 (Hamburg) and 1200 (Dresden), you require 100 pieces ofmaterial T-M500B## (Universal-taillight-##, California).

Create a purchase order for purchasing organization 1000 and purchasinggroup T## with two items. For each item, refer to the quotation of vendorT-K500B##. The system proposes data, excluding the plant, such asquantities and conditions from the quotation.

Save your purchase order.

PO number:___________________________________________________

3. Determine the status of the message




Display the purchase order and determine whether the purchase order hasalready been issued as a message. If the message has not yet been processed,print the document and then check the status of the message again.

4. Change the purchase order

The sales employee responsible at vendor T-K500B## has informed youby phone that the price has been reduced for this PO. The gross price formaterial T-M500B## in this purchase order is 80 EUR. The remainingconditions are unchanged. Change the conditions for both order itemsaccordingly. Save these changes. (Stay in PO transaction after that.)


Display the purchase order and answer the following questions.

Which user created the purchase order?

_______________________________________________________

Which user changed the order item?

_______________________________________________________

When were the order items changed?

_______________________________________________________

What has been changed?

_______________________________________________________

Where is the RFQ number that refers to the purchase order items stored inthe system?

_______________________________________________________

Is there a purchase order history for both items?

_______________________________________________________

6. Display and output the changed purchase order as a message

Display a print preview (message) on your screen of the change to thepurchase order, and output the message.

Is the message flagged as a change message? Are the changes listed in thedocument?



Solution 8: Creating a Purchase Orderwith ReferenceTask: Purchase order entryOrder the Universal-taillight-##, California, from vendor Rasch Gr.##. The RFQactivity proved this to be the best supplier. When creating a purchase order, yourefer to the RFQ to reduce the entry load and avoid entry errors. To establish thereference to the RFQ, use the document overview in the purchase order transaction.

1. Configure the document overview

Select the RFQs for your purchasing group T## and purchasing organization1000. Save the selection as selection variant T## with the description RFQsGroup ##. Execute the selection variant.

Group your RFQs according to vendor and purchasing document. Displaythe item and the material numbers too. Save these settings as layout L##with the description Layout Group ##.


b) Choose Document overview on to open the document overview.

c) Choose (Selection variant) and then Request for quotations.

d) Enter purchasing organization 1000 and purchasing group T## anddelete all other values from the selection.

e) Choose (Save as Variant ...). Enter T## as the variant name and thedescription RFQs Group ##. Then choose (Save).

f) Choose (Execute) to execute the selection.

Your RFQs for the purchasing group T## are displayed in the documentoverview.

g) Choose (Change breakdown). Select Vendor (column set) andPurchasing document (sort critera) and choose (Add sortcriterion). Then choose (Transfer).

h) Choose the button (small list) on the right, next to and then Changelayout. Select Item (column set) and choose (Show selected fields).Repeat the procedure for Material. Then choose (Transfer).

i) Choose the button (small list) on the right, next to and then Savelayout. Enter L## as the layout and the description Layout Group##. Set the indicator User-specific and choose Save.




2. Create purchase order with reference to RFQ

For plants 1000 (Hamburg) and 1200 (Dresden), you require 100 pieces ofmaterial T-M500B## (Universal-taillight-##, California).

Create a purchase order for purchasing organization 1000 and purchasinggroup T## with two items. For each item, refer to the quotation of vendorT-K500B##. The system proposes data, excluding the plant, such asquantities and conditions from the quotation.

Save your purchase order.

PO number:___________________________________________________

a) Item for plant 1000: Select the RFQ of vendor T-K500B## in thedocument overview and choose (Adopt). Enter plant 1000 for thisitem in the item overview.

b) Item for plant 1200: Repeat step a). Enter plant 1200 for this item.

c) Choose (Save) and make a note of the PO number.

3. Determine the status of the message




Display the purchase order and determine whether the purchase order hasalready been issued as a message. If the message has not yet been processed,print the document and then check the status of the message again.

a) After entering a purchase order, you can switch to the display modeusing (Other purchase order).

b) For information about the status of the purchase order, choose theStatus tab in the header data. On this tab, you can also see whether thepurchase order has already been sent as a message.

c) For more detailed information on the message development, chooseGoto → Message. You will reach a separate screen on which a list ofmessages for the purchase order is displayed. The status shows that themessage has not yet been processed.

d) Terminate the purchase order transaction. Click on (Exit) twice.

e) Choose Logistics → Materials Management → Purchasing →Purchase Order → Messages → Print/Transmit (ME9F).

f) Accept the selection criteria proposed by the system and chooseExecute.

g) Select your document and choose Output message.

h) To check the status of the message again. For this display the purchaseorder again (transactionME23N) and choose Messages. The messagehas now been processed.

4. Change the purchase order




The sales employee responsible at vendor T-K500B## has informed youby phone that the price has been reduced for this PO. The gross price formaterial T-M500B## in this purchase order is 80 EUR. The remainingconditions are unchanged. Change the conditions for both order itemsaccordingly. Save these changes. (Stay in PO transaction after that.)

a) Choose Logistics → Materials Management → Purchasing →Purchase Order → Change (ME22N).

The purchase order you changed most recently is automaticallydisplayed in change mode.

b) Choose the Conditions tab page in the item details.

c) For the first item, change the gross price (PBXX ) to EUR 80.

d) Switch to the second item and change the gross price (PBXX) for thisitem to EUR 80.

e) Choose (Save).

Do not leave the purchase order transaction.


Display the purchase order and answer the following questions.

Which user created the purchase order?

_______________________________________________________

Which user changed the order item?

_______________________________________________________

When were the order items changed?

_______________________________________________________

What has been changed?

_______________________________________________________

Where is the RFQ number that refers to the purchase order items stored inthe system?

_______________________________________________________

Is there a purchase order history for both items?




_______________________________________________________

a) In the title bar, you can see which user created the purchase order.

b) If you need more information on the changes made to the order items,select the required items and choose Environment → Item changes. Bychoosing (Next item) or Goto → Next item, you receive informationon the next selected item.

c) The RFQ number is stored in the item overview.

d) There is no purchase order history for either item because no follow-ondocuments with reference to this purchase order have been posted.No goods receipts or invoices have been entered for this purchaseorder item.

6. Display and output the changed purchase order as a message

Display a print preview (message) on your screen of the change to thepurchase order, and output the message.

Is the message flagged as a change message? Are the changes listed in thedocument?

a) Choose Logistics → Materials Management → Purchasing →Purchase Order → Messages → Print/Transmit (ME9F).

b) Accept the selection criteria proposed by the system and choose(Execute).

c) In the overview, select your document and choose Display message.

On the screen output, the document is flagged as a change document.The vendor is informed which information has changed for each item.

d) In the print preview, choose (Back).

e) Select your document and choose Output message.



Lesson Summary

You should now be able to:• Use the document overview in transaction ME21N• Create purchase orders by referencing RFQs


TSCM50 Lesson: Purchasing Info Record

Lesson: Purchasing Info Record

Lesson OverviewThis lesson covers another master record for purchasing; the purchasing inforecord. The purchasing info record helps to define vendor-specific informationfor a material for the long-term. The different options for creating and updating apurchasing info record receive particular attention.


• List the organizational levels relevant for purchasing info records• List the ways in which purchasing info records can be created• Maintain a purchasing info record

Business ExampleThe purchasing department in your company saves data for material-vendorrelationships. This is necessary because a material may be procured from morethan one vendor and the vendors will have different prices, freight costs, anddelivery terms. As a buyer, you can test how the purchase info record and theautomatic update of conditions work by using the Info update indicator.

Figure 65: Purchasing Info Record



The purchasing info record (info record) provides the option of storing informationabout a vendor and a material as the master data at purchasing organization leveland plant level. You can define the following information in info records:

• Current and future prices and conditions (for example, freight and discounts)• Delivery data (for example, planned delivery time, and overdelivery and

underdelivery tolerances)• Vendor data (for example, contact person) and vendor-specific data about the

material (such as the vendor subrange to which the material belongs and thevendors description for the material)

• Number of the last purchase order• Texts

The following text types are stored in the purchasing info record:

– Info record memo: This is an internal comment that is transferred to thepurchase order item. This text is not printed.

– Purchase order text: This text is used to describe the purchase orderitem. It is transferred to the purchase order item and printed.

The purchasing info record is an important source of information for the buyer.When creating the purchasing documents, the data from the info record istransferred to the document as default values.

You can also use the list displays for the info records to determine which vendorsoffer a particular material or which materials can be procured from a particularvendor.

The data for a purchasing info record needs to be divided into generally applicable(valid for a single client) data, purchasing organization-specific data, andpurchasing organization-specific and plant-specific data. In addition, the selectedinfo category determines for which procurement process the data is used. You candifferentiate between a standard process and the special procurement categories ofsubcontracting, pipeline, and consignment.



Figure 66: Purchasing Info Record – Structure

From the figure “Purchasing Info Record – Structure”, you can see which data canbe entered at which organization level.

Hint: To save conditions at plant level, you must specify this inCustomizing for Materials Management under Purchasing → Conditions→ Define Condition Control at Plant Level.

Price DeterminationIf you create a purchasing document, the system attempts to find a price for thematerial to be procured. The system always searches from “specific” to “general”.

When you create a purchase order, the system searches for an info record for thevendor/material combination at purchasing information level/plant level. If thereis no specific data for the purchasing organization/plant combination, it searchesat purchasing organization level. If there is no data here either, you must enterthe price manually.

Hint: In the purchase order, the valuation price from the material masterrecord is not proposed as the purchase order price.



Figure 67: Info Records and Prices

If a purchasing info record exists, then valid conditions have priority duringprice determination. If an info record does not contain any conditions or onlycontains invalid conditions, the system reads the number of the last purchasingdocument in the info record and then proposes the price from this document.The prices determined in this way are default values that can be changed by thebuyer if necessary.

In the default values for buyers (Customizing), you can define how the systemhandles conditions from the last purchase order. To transfer conditions from thelast purchase order, you can specify the following:

• The conditions are always copied• The conditions are not copied if the price is entered manually• The conditions are never copied

Purchasing Info Record MaintenanceYou have various options for creating a purchasing info record.



Figure 68: Options for Maintaining Info Records

You can manually create or change an info record for a purchasing organizationor a plant. In the purchasing menu, choose Master Data → Info Record →Create (or Change). On the initial screen, you must enter a vendor, a material,and the organizational levels you require (purchasing organization or purchasingorganization/plant). On the following data screens, enter the necessary datamanually; for example, planned delivery time, gross price, and conditions.

Purchasing info records can also be created or updated automatically by settingthe Info update indicator when maintaining a quotation, a purchase order, or anoutline agreement.

Figure 69: Info Record – Automatic Update



The type of purchasing document determines which updates are triggered by theInfo update indicator.

• From a quotation conditions are transferred to the info record.• From a purchase order, a contract release order or a scheduling

agreement, the document and item number is updated as the last document.• For the contract, it is important to know whether an info record already exists

for the vendor-material combination. When you create or change a contract,the system creates an info record with the conditions from the contract if noinfo record exists for the combination of vendor, material, and organizationallevel. If an info record already exists, there are no updates in the info record.

The characteristics of the Info update indicator for updating the info record vary inthe different purchasing documents. Regardless of the purchasing document, theCustomizing settings for the conditions are always important during the update.In Customizing for Materials Management under Purchasing → Conditions →Define Condition Control at Plant Level, you can specify (per plant):

• Whether conditions are allowed with or without plant• Whether only plant-related conditions are allowed (plant requirement)• Whether no plant-related conditions are allowed (plant ban)

Figure 70: Info Update Indicator – Purchase Order (ME21N)

In the purchase order (transactions ME21N, ME22N, and ME23N), the Infoupdate indicator has two characteristics for updating the info record; this means itcontrols whether an info record is updated or created or not.



If the indicator is set, the following situations are possible:

• If an info record exists either at purchasing organization level only or atpurchasing organization level and plant level only (“exactly one” info record(with or without plant)), it is updated.

• If an info record exists both with purchasing organization data and withpurchasing organization/plant data, the plant-specific data is updated.

• If no info record exists and Plant condition requirement was determined inCustomizing, the system creates an info record with a plant. Otherwise, thesystem creates an info record without a plant.

Figure 71: Info Update Indicator: Quotation, Outline Agreement

In the quotation, the contract, the scheduling agreement, and the old purchaseorder (transaction ME21, ME22, and ME23), the Info update indicator has fourattributes:

• “ ”: The info record is not updated or created• “A”: If an info record exists at plant level, it is updated. Alternatively, an

info record is updated at purchasing organization level. If an info record stilldoes not exist, the system creates it at purchasing organization level.

• “B”: If plant conditions are allowed for the plant, an info record at plantlevel is updated or created.

• “C”: If plant conditions are not required for the plant, an info record atpurchasing organization level is updated or created.



Exercise 9: Maintain Purchasing InfoRecord

Exercise ObjectivesAfter completing this exercise, you will be able to:• Display, change, and analyze info records

Business ExampleTo help you determine sources of supply and prices, you can store informationfor specific material-vendor relationships in the system. You can enter conditionsand other price elements such as freight costs and reductions for a material,depending on the vendor and the purchasing organization. You can also enterplanned delivery times, tolerances and terms of delivery.

Task: Display, change, and analyze info recordsYou intend to use extra purchasing info records. You therefore want to update asmuch of the data from the purchase orders and quotations in the info recordsas possible. You should now pay particular attention to the info records for theUniversal taillight-##, California.

1. Display info record list

Display all the info records saved in the system for material T-M500B##and purchasing organization 1000. On the selection screen, do not changethe system default values for price calculation. The prices determined by thesystem are net prices.

2. Determine administrative data and prices

Display the purchasing info record for material T-M500B## and vendorT-K500B## and answer the following questions.

What is the info record number? When and by whom was the info recordcreated?

Info record number: _______________________________________

Created on: ______________________________________________

Created by: ______________________________________________

Do conditions exist for this info record? Give reasons for your answer.

_______________________________________________________




_______________________________________________________

_______________________________________________________

What is the number of the last purchase order?

_________________________________________________

3. Copy conditions from quotations

For material T-M500B##, you used an RFQ/quotation activity to determineprices from different vendors. You want to keep these conditions in the inforecords. Change all quotations for material T-M500B## and set the Infoupdate indicator to C.

Hint: Use the price comparison list function for the easiest way toselect and change your quotations. The collective number of yourquotations is GR##.


Display all the info records saved in the system again for materialT-M500B## and purchasing organization 1000.

Info record number(s): _________________________________________

Do conditions exist for these info records? Give reasons for your answer.

_______________________________________________________

_______________________________________________________

_______________________________________________________

5. Change info record

Vendor T-K500A## informs you about new purchasing data and conditionsfor material T-M500B##. Use this data to change the info record for thisvendor and for this material.

The average delivery time (planned delivery time) is 10 days. Also, thevendor accepts only purchase orders that have a minimum quantity of 50pieces.

As of today, the following is valid for conditions:

Validity period: 1 year

Gross price: EUR 85

Discount % on gross (RA01):15% on 50 pieces or more, 18% on 200pieces or more

6. Quantity-dependent price




What net price would you have to pay per piece if you wanted to order thefollowing quantities of material T-M500B## from vendor T-K500A##?

Use the info record list by material to carry out the net price simulation.

20 pieces 50 pieces 150 pieces 320 pieces



Solution 9: Maintain Purchasing InfoRecordTask: Display, change, and analyze info recordsYou intend to use extra purchasing info records. You therefore want to update asmuch of the data from the purchase orders and quotations in the info recordsas possible. You should now pay particular attention to the info records for theUniversal taillight-##, California.


Display all the info records saved in the system for material T-M500B##and purchasing organization 1000. On the selection screen, do not changethe system default values for price calculation. The prices determined by thesystem are net prices.

a) Choose Logistics → Materials Management → Purchasing → MasterData → Info Record → List Displays → By Material (ME1M).

b) Enter material T-M500B## and purchasing organization 1000.


There is an info record for material T-M500B## and vendorT-K500B##.

2. Determine administrative data and prices

Display the purchasing info record for material T-M500B## and vendorT-K500B## and answer the following questions.

What is the info record number? When and by whom was the info recordcreated?

Info record number: _______________________________________

Created on: ______________________________________________

Created by: ______________________________________________

Do conditions exist for this info record? Give reasons for your answer.

_______________________________________________________

_______________________________________________________

_______________________________________________________

What is the number of the last purchase order?




_________________________________________________

a) Select the info record in the list display and choose (Display inforecord) to display the info record.

b) Choose Extras → Administrative data.

The administrative data contains information about when the inforecord was created, who created it, and the info record number.

Note: The info record number is also specified in the Generaldata and in the Purchasing organization data.

c) Choose (Back) to display the Purch. organization data 1.

No conditions exist because the system automatically generated theinfo record when you created your last purchase order. Conditions willnever been copied from the purchase order to the info record.

d) Choose Goto → Purch. org. data 2 to determine the number of thelast purchase order.

To display the last purchase order, choose Environment → Lastdocument. In the item detail for the purchase order item on theMaterialdata tab, you can see that the Info update indicator is set. The systemtherefore automatically generates an info record without conditions.

3. Copy conditions from quotations




For material T-M500B##, you used an RFQ/quotation activity to determineprices from different vendors. You want to keep these conditions in the inforecords. Change all quotations for material T-M500B## and set the Infoupdate indicator to C.

Hint: Use the price comparison list function for the easiest way toselect and change your quotations. The collective number of yourquotations is GR##.

a) Choose Logistics → Materials Management → Purchasing →RFQ/Quotation → Quotation → Price Comparison (ME49).

b) Enter purchasing organization 1000 and the collective request forquotations GR## and choose (Execute).

c) Double-click on the item number of a quotation to branch to the itemdetails of this quotation item. Enter Info update C and choose(Save).

d) Repeat step c) for all quotations.


Display all the info records saved in the system again for materialT-M500B## and purchasing organization 1000.

Info record number(s): _________________________________________

Do conditions exist for these info records? Give reasons for your answer.

_______________________________________________________

_______________________________________________________




_______________________________________________________


b) Enter material T-M500B## and purchasing organization 1000.


d) For material T-M500B##, there are now two info records, one inforecord for vendor T-K500A## and one for vendor T-K500B##. Thesystem did not create info records for one-time vendors because theone-time vendor master record is only a collective master record that isused for different vendors.

e) There are conditions in both info records. Because the Info updateindicator was set in the quotations, these conditions were updated inthe particular info record.

5. Change info record

Vendor T-K500A## informs you about new purchasing data and conditionsfor material T-M500B##. Use this data to change the info record for thisvendor and for this material.

The average delivery time (planned delivery time) is 10 days. Also, thevendor accepts only purchase orders that have a minimum quantity of 50pieces.

As of today, the following is valid for conditions:

Validity period: 1 year

Gross price: EUR 85




Discount % on gross (RA01):15% on 50 pieces or more, 18% on 200pieces or more

a) Choose Logistics → Materials Management → Purchasing → MasterData → Info Record → Change (ME12).

b) Enter the following data and then choose (Enter).

Vendor T-K500A##

Material T-M500B##

Purchasing Org. 1000

c) Choose Purch. org. data 1 and enter the planned delivery time 10 daysand the minimum purchase order quantity 50 pieces.

d) Choose Conditions. In the Validity period conditions dialog box, selectthe validity period and choose Choose.

e) Then enter the following values:

Valid from <Current date>

Valid to <Current date + 1year>

Condition type Amount

PB00 gross price EUR 85

RA01 discount % of gross 15%

f) To enter the discount scale, select the condition type RA01 and choose(Scales) or Goto → Scales. Then enter the following scale values:

Scales for discount of gross (RA01)

Scale quantity Amount

50 15

200 18

g) Choose (Save).

6. Quantity-dependent price

What net price would you have to pay per piece if you wanted to order thefollowing quantities of material T-M500B## from vendor T-K500A##?




Use the info record list by material to carry out the net price simulation.



b) Enter material T-M500B##, vendor T-M500A## and purchasingorganization 1000.


d) Select the info record and choose Price simulation. Then enter thedesired quantity and confirm this with (Continue). The determinedprice is then displayed in the list.


EUR 85 EUR 72.25 EUR 72.25 EUR 69.70

If you want to view the results of the price simulation in detail, chooseGoto → Simulation list.

e) Alternatively, you can also create a purchase order for vendorT-K500A## and material T-M500B##. If you vary the purchase orderquantity, the price is adjusted according to the conditions from the inforecord.

Net price per piece of material T-M500B## is based on the orderquantity:



Lesson Summary

You should now be able to:• List the organizational levels relevant for purchasing info records• List the ways in which purchasing info records can be created• Maintain a purchasing info record


TSCM50 Lesson: Material Valuation Basics

Lesson: Material Valuation Basics

Lesson OverviewThis lesson covers the determination of valuation levels for materials using thevaluation area, and the two possible procedures for material valuation.


• Explain the significance of the valuation area• Describe the function of the valuation class• Explain material valuation with the moving average price• Explain material valuation with the standard price

Business ExampleIn your company, most of the externally procured materials are stored before theyare required for production or sales. The quantity and the value of the warehousestocks of your materials must be updated. As a member of the project team youinform yourself about the possible material valuation procedures.

Material Valuation – GeneralIn most goods movements in Inventory Management, the stock quantity andtherefore also the stock value vary. In goods receipts, the stock value increases; ingoods issues, the stock value decreases. The quantity and value of the materialstock and the material price (= valuation price) are updated in the material masterrecord. You therefore also need a material master record for inventory-managedmaterial.

The material valuation determines and maintains the stock value of a material. Thefollowing formula is used to calculate the stock value:

Stock value = stock quantity * material valuation price

From this formula it follows that the stock value changes when the stock quantityor valuation price changes.

During the valuation of a goods movement, not only the total value and, ifnecessary, the valuation price are updated in the material master record, but alsothe accounts in Accounting. Material valuation demonstrates a connection betweenMaterials Management (MM) and Financial Accounting (FI) because materialvaluation accesses G/L accounts in Financial Accounting and updates them.



Material valuation is essentially controlled by two factors:

• System setting (Customizing)• Material master record

Material valuation is adjusted to the requirements of your company using thesystem settings. The following questions (among others) have to be answered:

• On which level are materials valuated?• Which types of goods movements are relevant for valuation?• Which accounts are posted to during a transaction?

The following sections cover the questions about the valuation level and thesettings in the material master record. The movement type and the materialdetermine which types of goods movements are relevant for valuation. Thesettings for automatic account determination determine which accounts are postedto during a transaction.

Valuation LevelThe valuation area is the organizational level at which material is valuated. Youcan decide whether the valuation area is determined at company code or plant level.

Figure 72: Material – Valuation Levels

valuation area = company codeThe valuation data of a material is created separately for each companycode. The price control and valuation price of a material are valid for eachcompany code. The material is therefore valuated consistently in all plantsof a company code.



valuation area = plantThe valuation data of a material is created for each plant. The price controland valuation price of a material are valid for each plant. The same materialcan therefore be valuated differently in different plants.

SAP recommends that you valuate material at plant level. Valuation at plant levelis mandatory if you want to use either of the Production Planning or Product CostAccounting components or if your system is a mySAP Retail system.

Caution: Defining the valuation level in Customizing is a fundamentalsetting, and is very difficult to reverse. (Customizing: Enterprise Structure→ Definition → Logistics - General → Define valuation level

Material Master Record – Accounting DataIn the material master record, you enter the necessary valuation data for a materialin the accounting data. Depending on the valuation area, you must specify eitherthe company code or plant when maintaining the accounting data. When enteringthe accounting data, you must answer the following questions:

• In which G/L account should the stock value of this material be managed?• Is the stock of a material to be valuated at a constant price or should the price

be adjusted to match the fluctuations of the cost price?

Note: The material type you selected when creating a material determineswhether the material is to be valuated at all. The material type controlswhether the stock is to be managed on a quantity and/or value basis andwhether this update can be controlled at valuation area level.



Figure 73: Valuation Class

In automatic account determination, the SAP system works with valuationclasses. The valuation class is used to determine which stock account is to beupdated during the goods movements of a material.

You can use the valuation class to combine materials for assigning G/L accountsso that you do not have to manage a separate stock account for each material. Youmaintain the valuation class in the Accounting view of the material master record.

The valuation classes allowed for a material depend on the material type and canbe configured in Customizing. A valuation class can also be assigned to severalmaterial types.

Figure 74: Procedures for material valuation (Price Control)



The price control procedure set in the material master record determines the valueused to valuate the goods receipt of a material. Material valuation can be carriedout according to the standard price (S price) or the moving average price (V price).

Standard priceDuring the valuation using the standard price (price control “S”), there aremany stock postings to a price determined in the material master record,the standard price. Variances to this standard price are posted to the pricedifferences accounts.For statistical purposes, the system also calculates the moving averageprice for materials that are valuated at standard price in the material masterrecord. This means that you can spot major differences between the currentprocurement price and the standard price, and react accordingly.The system calculates the total stock value for materials with standard pricecontrol as follows:Total value = standard price (per base unit of measure) * total stock

Moving average priceIn valuation using the moving average price (price control “V”), the systemvaluates goods receipts with the purchase order price and goods issues withthe current moving average price.The system automatically calculates the moving average price for everygoods movement as follows:Total stock value/ total stock quantity = moving average price.Differences between the purchase order price and the invoice are posteddirectly to the relevant stock account if there is sufficient stock coverage.This changes the moving average price of the material.

The following figure “Valuation of Goods Receipt” clarifies both valuationprocedures in a single example.



Figure 75: Valuation of Goods Receipt

Material: Moving average price EUR 20

The goods receipt for a purchase order of 10 pieces at 25 EUR is valuated witha procurement price of 25 EUR. An amount of 10 at 25 EUR = 250 EUR isposted to the stock account. The offsetting entry for the same amount is posted tothe GR/IR clearing account.

Material: Standard price EUR 20

The goods receipt quantity must be valuated with the standard price. The result ofthe goods receipt for the purchase order of 10 pieces is an amount of 10 at 20 EUR= 200 EUR. This amount is posted to the stock account. The difference of 50 EURfrom the actual procurement value (10 at 25 EUR = 250 EUR) is posted to a pricedifferences expense account. The offsetting entry with an amount of 10 at 25 EUR= 250 EUR is posted to the GR/IR clearing account.

Material Valuation ExamplesThe figures in this section describe the postings in Financial Accounting and theupdates in the material master record for a simple procurement process, once formoving average price control and once for standard price control.

Initial stock quantity and value are displayed in the initial situation column. Thena goods receipt is posted for a purchase order of 100 pieces at 2.40 (second line).The process is completed with an invoice receipt of 100 pieces at 2.20 (third line).



Posting to Standard Price (Example)

Figure 76: Standard Price (1) – Starting Situation

Figure 77: Standard Price (2) – Goods Receipt

During goods receipt, the system updates the stock value and stock quantity atstandard price. It updates the GR/IR clearing account at the purchase order price.It posts the difference between the purchase order price and the standard price tothe price difference account.



Figure 78: Standard Price (3) – Invoice Receipt

When the incoming invoice is posted, the GR/IR clearing account is cleared atthe order price. The vendor (creditor) account is updated at the invoice price. Itposts the difference between the purchase order price and the invoice price to the“Income from price differences” account. It does not change the total stock value.

Posting to Moving Average Price (Example)

Figure 79: Moving Average Price (1) – Starting Situation



Figure 80: Moving Average Price (2) – Goods Receipt

During goods receipt, the system updates the stock value, stock account, andGR/IR clearing account at the purchase order price. The moving average priceis recalculated on the basis of the new stock value: MA price (for each base unitof measure) = total value/total stock.

Figure 81: Moving Average Price (3) – Invoice Receipt

When the incoming invoice is posted, the GR/IR clearing account is cleared at theorder price. The vendor (creditor) account is updated at the invoice price. Thesystem posts the difference between the purchase order price and the invoice priceto the stock account. It recalculates the stock value based on the invoice price.

The system redetermines the moving average price based on the changed stockvalue.

If the stock quantity in the invoice receipt is less than the invoice quantity,the system posts part of the difference to the “Expenditure/income from pricedifferences” account instead of the stock account.



Lesson Summary

You should now be able to:• Explain the significance of the valuation area• Describe the function of the valuation class• Explain material valuation with the moving average price• Explain material valuation with the standard price


TSCM50 Lesson: Stock Types, Valuation, GR in Warehouse

Lesson: Stock Types, Valuation, GR in Warehouse

Lesson OverviewThis lesson covers the goods receipt of ordered goods into the warehouse and theeffects that this goods receipt has on Inventory Management and Accounting. Thematerial document and the accounting document are covered.

In addition, this lesson briefly covers the stock types unrestricted-use, qualityinspection stock, blocked stock, and transfer postings.


• Display the stock overview• List the stock types• Enter a goods receipt in the quality inspection stock• List the documents created during goods movements posting and explain

their meaning• Analyze the postings during goods receipt into the warehouse

Business ExampleMany of the goods delivered to your company are first posted after receipt intothe quality inspection stock. After a successful quality check, the materials canthen be released. You use a concrete example to test this procedure and analyzethe material valuation.

This lesson uses the process shown in the figure below, “Stock MaterialProcurement – Goods Receipt”. After material was requested from severalvendors and then ordered from the most favorable vendor, the goods receiptis posted. Some of the delivered goods are posted to the quality inspectionstock. The checked quantity is later released with a transfer posting to theunrestricted-use stock.



Figure 82: Stock Material Procurement – Goods Receipt

Stock Overview and Stock TypesTo simplify daily work in Inventory Management, several functions and reportscontain detailed information about all materials and their stock data.

The stock overview is an analysis that delivers information about the stocksituation of a single material. The material stocks are displayed in the stockoverview for each individual organizational level. Quantities posted for aparticular stock type are totaled for each organizational unit.

You can display the stock overview for batches/valuation type and special stocks(for example, consignment material), as well as for organizational units client,company code, plant, and storage location.



Figure 83: Stock Overview

To display the stock overview, choose between different display versions. Thesedisplay versions differ in the listing and sequence of the individual stock types. InCustomizing for Inventory Management, the system administrator defines whichstocks are displayed in each column and the order in which they are displayed.

Figure 84: Valuated Goods Receipts

For goods receipts, you decide which stock type a quantity is posted to. The stocktype is relevant for determining the stock available in Materials Planning and isused for withdrawals in Inventory Management.



You can post a goods receipt for the warehouse into three stock types:

• Unrestricted-use stock (no usage restrictions)• Quality inspection stock (available from an MRP perspective, but no

withdrawals are possible for consumption)• Blocked stock (not usually available from an MRP perspective and no

withdrawals are possible for consumption)

Caution: Do not confuse the stock type “blocked stock” with thegoods receipt blocked stock (also known as GR blocked stock).

In the purchase order, you can store a default value for the stock type during goodsreceipt. You can change this default value when you post the goods receipt as longas you are not using the Quality Management component.

You always use movement type 101 to post goods receipts for a purchase order tovaluated stock. Additionally you enter a stock type indicator at item level, whichenables you to differentiate between different stock types.

You can post withdrawals for consumption only from unrestricted-use stock. Youcan withdraw one sample, scrap a quantity, or post an inventory difference fromquality inspection stock and blocked stock.

Figure 85: Transfer Postings “Stock to Stock”

If you want to withdraw goods from blocked stock or quality inspection stock forconsumption, you first have to carry out a transfer posting to unrestricted-usestock. The movement type controls between which stock types a transfer postingoccurs. A physical transfer posting between two storage locations may be linkedwith a “stock to stock” transfer posting.



As for all goods movements, the system also creates a material document duringtransfer postings to show the transaction in the system. An accounting documentis only generated if the transfer posting is relevant for valuation. “stock to stock”postings are not relevant for valuation. In contrast, a “material to material” transferposting (movement type 309) is generally linked with a stock value change and istherefore relevant for the update in Financial Accounting.

Documents at Goods ReceiptThe document principle also applies in IT-based Inventory Management. Adocument is the proof that a transaction involving stock changes has taken place.Documents are stored in the system. A material document is generated as proof ofa process that has caused a change in stock.

If the goods movement is relevant to valuation, the system creates at least oneaccounting document in addition to the material document.

Goods movements (goods receipts, goods issues, or transfer postings) are relevantto valuation when your company's Accounting department is affected by them. Forexample, a goods receipt posting of a raw material usually results in an increase inthe stock value of your current assets. If the raw material is only transferred withinone plant, no postings are made in Financial Accounting.

Figure 86: Documents for Goods Movements

As soon as a goods movement is posted, quantity, material, movement type andorganization level can no longer be changed. If you want to correct errors, youmust create a new document. So that the postings of the incorrect document canbe reversed, you must first cancel the incorrect document.



Figure 87: Material and Accounting Documents

The material document consists of a document header and at least one item. Theheader information includes the posting date and the name of the creator. Theinformation at item level includes among others the material number, the postedquantity, the movement type, and the plant and storage location.

The accounting document records the effects of material movements on theaccounts. The document header contains generally applicable data, such as thedocument date, posting date, posting period, and document currency. The G/Laccount numbers and the associated amount posted are recorded at item level.

The material and accounting documents are independent documents. Youcan identify the material document by the material document number and thematerial document year. The accounting document can be uniquely identified bythe company code, the accounting document number, and the fiscal year. Thecompany code in which the accounting document is posted is taken from the plantin which the goods movement takes place.



Figure 88: Effects of a Goods Receipt

The figure provides an overview of all the key effects of a goods receiptreferencing a purchase order.



Exercise 10: Stocks, Valuation, and GoodsReceipt

Exercise ObjectivesAfter completing this exercise, you will be able to:• Work with the stock overview• Interpret current stock and valuation data in the material master• Explain the difference between standard price and moving average price

in material valuation• Outline the effects of the various valuation procedures on how accounts

are updated in Financial Accounting

Business ExampleYou enter the goods receipts for your purchase order. You can see the effects ofthe various valuation procedures on how the accounts are updated in FinancialAccounting and how the material valuation prices are updated.

Task: Effects of a Goods ReceiptIn the exercises in this section, you should make a note of, compare, and analyzethe different data for the material stocks and valuation prices.

Work through the tasks in order, using the following tables to make your notes.

Table 1: Stock Overview T-M500B##

Plant 1000 (Hamburg) Plant 1200 (Dresden)

Open POquantity

Unre-stricted-use

Qualityinspec-tion

Open POquantity

Unre-stricted-use

Qualityinspec-tion

Task 1(before GR)

Task 9(after GR)

Task 11(aftertrans.post.)




Table 2: Accounting Data T-M500B##, Plant 1000

Price control:

Movingaverage price

Standardprice

Total stock Total value

Task 2(before GR)

Task 4 (afterGR)


Price control:

Movingaverage price

Standardprice


Task 2(before GR)

Task 6 (afterGR)

1. Stock overview

Analyze the stock overview for the material T-M500B## in plants 1000 and1200. Use the display version 50 (version SCM500). Note the stocks for thetwo plants in table 1 (stock overview T-M500B##).

Do not leave the stock overview after this.

2. Display material master record.

Display the views Accounting 1 and Plant stock for material T-M500B## forplant 1000 and plant 1200.

Compare the plant stock data with the data from exercise 1.

Use the data from the accounting view to fill table 2 and table 3 for theaccounting data for plant 1000 and plant 1200.

3. Enter goods receipt for plant 1000.

The delivery of material T-M500B## from vendor T-K500B## has enteredplant 1000. Enter the goods receipt with reference to the purchase order. Postthe receipt in the unrestricted-use stock in storage location 0001. Refer tothe delivery note for other data that is required.




Don't post the goods receipt for the second PO item for plant 1200(Dresden).

Hint: You can search for the purchase order item, if you miss thePO number. Choose (Find purchase order) and enter vendorT-K500B##, material T-M500B## and plant 1000. Then choose

Find.

Figure 89: Delivery Note Number LS-B1##

Material document number:_______________________________________________

Do not leave transaction MIGO when this task is finished.


Display the material document and accounting document for the goodsreceipt.

Which accounts are posted with which amounts?

Item Account Account short text Amount

1

2




Exit the accounting document and go directly from the material documentto the material master record. Choose the Accounting 1 view and completetable 2 with the current accounting data for plant 1000.


5. Enter goods receipt for plant 1200

The delivery of material T-M500B## from vendor T-K500B## has enteredplant 1200. Enter the goods receipt with reference to the purchase order. Postthe receipt into the quality inspection stock in storage location 0001. Refer tothe delivery note for other data that is required.

Hint: Make sure that either no plant or plant 1200 is entered in thefield after the purchase order number.

Material document number: _______________________________________




Which accounts are updated with which amounts?





1

2

3

Exit the accounting document and go directly from the material document tothe material master record. Choose the accounting view and enter the currentaccounting data for plant 1200 to table 3.

7. Compare posting results.Look again at tables 2 and 3 and exercises 4 and 6. Why do both theaccounting documents and the total value of material T-M500B## differ foreach plant?

8. Display the purchase order.

Display the purchase order. Check whether the purchase order history wasupdated as expected for both items.

Can you tell immediately whether the full quantity of your purchase orderwas delivered?

_____________________________________________________

Hint: The header details contain the Status tab page.

9. Stock overview

Analyze the stock overview for the material T-M500B## in plants 1000 and1200. Use display version 50 again. Note the current stocks in table 1.

Display the material document for the last goods receipt again. Where in thematerial document does it tell you that goods were posted to stock in qualityinspection? Where is this information derived from?

10. Transfer material to unrestricted-use stock.

The quality check for plant 1200 made a positive usage decision for the 100pieces of material T-M500B##. Post the material from quality inspectionstock to unrestricted-use stock.




After being released, the material stays in storage location 0001.

Which movement type is necessary?

Movement type: __________________________________________________________________________

Material document number: ________________________________

11. Display material document for transfer posting

Display the material document.

Why is there no accounting document?

Check whether the stock overview was updated correctly too, and supplementthe data in table 1. Use display version 50 in the stock overview.



Solution 10: Stocks, Valuation, and GoodsReceiptTask: Effects of a Goods ReceiptIn the exercises in this section, you should make a note of, compare, and analyzethe different data for the material stocks and valuation prices.

Work through the tasks in order, using the following tables to make your notes.

Table 1: Stock Overview T-M500B##

Plant 1000 (Hamburg) Plant 1200 (Dresden)

Open POquantity

Unre-stricted-use

Qualityinspec-tion

Open POquantity

Unre-stricted-use

Qualityinspec-tion

Task 1(before GR)

100 0 0 100 0 0

Task 9(after GR)

0 100 0 0 0 100

Task 11(aftertrans.post.)

0 100 0 0 100 0


Price control: V (moving average price)

Movingaverage price

Standardprice


Task 2(before GR)

80 0 0 pc 0

Task 4 (afterGR)

72 0 100 pc 7200


Price control: S (Standard price)




Movingaverage price

Standardprice


Task 2(before GR)

0 80 0 pc 0

Task 6 (afterGR)

72 80 100 pc 8000

1. Stock overview

Analyze the stock overview for the material T-M500B## in plants 1000 and1200. Use the display version 50 (version SCM500). Note the stocks for thetwo plants in table 1 (stock overview T-M500B##).

Do not leave the stock overview after this.

a) Choose Logistics → Materials Management → Inventory Management→ Environment → Stock → Stock Overview (MMBE)

b) Enter the following data:

Material T-M500B##

Plant 1000 to 1200

Display version 50 (version SCM500)


d) To display further stocks in the stock overview, you can scroll to theright in the list or double click on the plant row.

e) Note the unrestricted-use stock, the quality inspection stock, and theon-order stock in table 1, line for task 1 (before GR).

2. Display material master record.

Display the views Accounting 1 and Plant stock for material T-M500B## forplant 1000 and plant 1200.

Compare the plant stock data with the data from exercise 1.




Use the data from the accounting view to fill table 2 and table 3 for theaccounting data for plant 1000 and plant 1200.

a) To branch from the stock overview to the material master record, placethe cursor on the line for plant 1000.

b) Then choose Extras → Display material.

c) In the material master record, choose the Accounting 1 tab and note theprice control, moving average price, total stock, and total value in table2 (accounting data T-M500B##, plant 1000).

d) Choose the Plant stock tab and compare the data with your entires forplant 1000 in table 1.

e) Choose Edit → Organizational levels, enter plant 1200 in the dialogbox, and confirm your entry with Enter.

f) Compare the data on the Plant stock tab for plant 1200 with yourentries in table 1.

g) Choose the Accounting 1 tab and note the price control, standard price,total stock, and total value in table 3 (accounting data T-M500B##,plant 1200).

3. Enter goods receipt for plant 1000.

The delivery of material T-M500B## from vendor T-K500B## has enteredplant 1000. Enter the goods receipt with reference to the purchase order. Postthe receipt in the unrestricted-use stock in storage location 0001. Refer tothe delivery note for other data that is required.

Don't post the goods receipt for the second PO item for plant 1200(Dresden).

Hint: You can search for the purchase order item, if you miss thePO number. Choose (Find purchase order) and enter vendorT-K500B##, material T-M500B## and plant 1000. Then choose

Find.





Material document number:_______________________________________________





a) Choose Logistics → Materials Management → Inventory Management→ Goods Movement → Goods Receipt → For Purchase Order → PONumber Known (MIGO)

b) Choose Goods Receipt as the transaction and Purchase Order as thereference.

c) Enter your purchase order number.

d) In the header data, choose the General tab and enter delivery noteLS-B1##.

e) In the item for plant 1000, enter storage location 0001 and set theOK indicator.

Hint: If you have opened the detail data for the item, you canthen enter the data for this item only in the detail data area ofthe screen. The OK indicator is under the detail data tab andthe storage location is on the Where tab.

f) Choose Post and make a note of the material document number.

Do not exit transaction MIGO when this task is finished.



Which accounts are posted with which amounts?


1 300000 Inventory - Raw material 1 7200

2 191100 Goods Rcvd/Invoice Rcvd(third party)

7200 (-)

Exit the accounting document and go directly from the material documentto the material master record. Choose the Accounting 1 view and completetable 2 with the current accounting data for plant 1000.





a) Choose Display as the transaction and Material Document as thereference.

b) The default proposal is the number of the material document that youlast edited. Choose (Execute).

c) In the header data, choose the Document info tab and then FIdocuments to branch to the accounting document.

d) In the List of documents in Accounting dialog box, select the accountingdocument and choose Separate. Note the accounting documentdata in the table.

e) Choose (Back) to display the material document again.

f) To branch to the material master record, double-click the material shorttext in the item overview.

g) Choose the Accounting 1 tab and note the moving average price, totalstock, and total value in table 2 (accounting data T-M500B##, plant1000).

h) Choose (Back) to display the material document again.


5. Enter goods receipt for plant 1200

The delivery of material T-M500B## from vendor T-K500B## has enteredplant 1200. Enter the goods receipt with reference to the purchase order. Postthe receipt into the quality inspection stock in storage location 0001. Refer tothe delivery note for other data that is required.

Hint: Make sure that either no plant or plant 1200 is entered in thefield after the purchase order number.






a) Choose Goods Receipt as the transaction and Purchase Order as thereference.

b) Enter the PO number or double-click on the PO number in the overviewtree.

Hint: You can also search for the purchase order item. Choose(Search for PO) and enter vendor T-K500B##, material

T-M500B##, and plant 1200. Then choose Find.

c) In the header data, choose the General tab and enter delivery noteLS-B2##.

d) Enter storage location 0001 in the item and set the OK indicator.

Hint: If you have opened the detail data for the item, you canonly enter the data for this item in the detail data area of thescreen. The OK indicator is under the detail data tab and thestorage location is on the Where tab.

e) Choose Post and make a note of the material document number.







Which accounts are updated with which amounts?


1 300010 Inventory - Raw Material 2 8000


7200 (-)

3 281000 Income - price variances 800 (-)

Exit the accounting document and go directly from the material document tothe material master record. Choose the accounting view and enter the currentaccounting data for plant 1200 to table 3.



c) In the header data, choose the Document info tab and then FIdocuments to branch to the accounting document.

d) In the List of documents in Accounting dialog box, select the accountingdocument and choose Separate. Note the accounting documentdata in the table.


f) To branch to the material master record, double-click the material shorttext in the item overview.

g) Choose the Accounting 1 tab and note the standard price, total stock,and total value in table 3 (accounting data T-M500B##, plant 1200).

h) Choose (Back) to display the material document again.




7. Compare posting results.

Look again at tables 2 and 3 and exercises 4 and 6. Why do both theaccounting documents and the total value of material T-M500B## differ foreach plant?

Answer: In plant 1000, the material is valuated using the moving averageprice. The stock value therefore increases by the product of the goods receiptquantity and the price of the purchase order item. The new moving averageprice is calculated as follows:MAP = total value/total stockIn plant 1200, the material is valuated using the standard price. The stockvalue therefore increases by the product from the goods receipt quantity andthe standard price in the material master.The GR/IR clearing account is posted with the amount of the expectedliabilities (GR quantity * purchase order price) for both items.For the standard price-controlled material, the difference between the resultof the calculation (GR quantity * standard price) and the result of thecalculation (GR quantity * PO price) is posted to a price difference account.

8. Display the purchase order.

Display the purchase order. Check whether the purchase order history wasupdated as expected for both items.

Can you tell immediately whether the full quantity of your purchase orderwas delivered?

_____________________________________________________

Hint: The header details contain the Status tab page.

a) You can branch from the material document to the purchase order.Choose the PO data tab page in the item details.

b) To display the purchase order, double-click the PO number.

c) Choose the PO history tab page in the detail data of the PO item.

The PO history was correctly updated for both goods receipts. Youwill receive information about the transaction (GR) with the relevantmaterial document, the quantity, and the value of the posting.

d) To recognize whether your purchase order was completed, choose theStatus tab in the header data. The status for the purchase order readsFully delivered.




9. Stock overview

Analyze the stock overview for the material T-M500B## in plants 1000 and1200. Use display version 50 again. Note the current stocks in table 1.

Display the material document for the last goods receipt again. Where in thematerial document does it tell you that goods were posted to stock in qualityinspection? Where is this information derived from?

a) Choose Logistics → Materials Management → Inventory Management→ Environment → Stock → Stock Overview (MMBE)


Material T-M500B##

Plant 1000 to 1200

Display version 50 (version SCM500)


d) Note the unrestricted-use stock, the quality inspection stock, and theon-order stock in table 1, line for task 9 (after GR)

e) Open a second session with System → Create Session.

f) Choose Logistics → Materials Management → Inventory Management→ Goods Movement → Goods Movement (MIGO).

g) Choose transaction Display and reference Material Document.

h) The default proposal is the number of the material document that youlast edited. Choose (Execute).

i) Choose the Where tab page in the item details. On this tab page, youwill see the Stock type field with the entry Quality inspection.

This value was copied from the purchase order.

j) In the item details, choose the PO Data tab and double-click on number20 in the PO item.

Choose the Delivery tab page in the item details of item 20 in thepurchase order. On this tab page, you will see the Stock type field withthe entry Quality inspection. This default value was copiedfrom the material master record to the purchase order.

In the material master record, you will see the Post to insp. stockindicator on the Purchasing tab. For material T-M500B##, the indicatoris set only for plant 1200.




10. Transfer material to unrestricted-use stock.

The quality check for plant 1200 made a positive usage decision for the 100pieces of material T-M500B##. Post the material from quality inspectionstock to unrestricted-use stock.

After being released, the material stays in storage location 0001.

Which movement type is necessary?

Movement type: __________________________________________________________________________

Material document number: ________________________________

a) Choose Logistics → Materials Management → Inventory Management→ Goods Movement → Goods Movement (MIGO).

b) Choose transaction Transfer posting and reference Other.

c) Enter movement type 321 and confirm your entries with Enter.

d) On the Transfer posting tab, enter the following data:

Material T-M500B##

Plant 1200

Storage location 0001

Quantity in UnE 100


e) Choose Post and make a note of the material document number.

11. Display material document for transfer posting

Display the material document.

Why is there no accounting document?




Check whether the stock overview was updated correctly too, and supplementthe data in table 1. Use display version 50 in the stock overview.

a) Choose transaction Display and reference Material Document.


c) From the header data, choose the Document info tab and then FIdocuments.

The system outputs the message that “No subsequent document foundin Accounting”. During the transfer posting, no accounting documentwas created because this is a transfer posting within a valuation area(the valuation area is the plant). Quality inspection stock is alreadypart of the plant’s valuated stock.

d) To call the stock overview, choose Logistics → Materials Management→ Inventory Management → Environment → Stock → Stock Overview(MMBE).

e) Enter the following data:

Material T-M500B##

Plant 1000 to 1200

Display version 50

f) Choose (Execute).

g) Note the unrestricted-use stock, the quality inspection stock, and theon-order stock in table 1, line for task 11 (after trans.post.)



Lesson Summary

You should now be able to:• Display the stock overview• List the stock types• Enter a goods receipt in the quality inspection stock• List the documents created during goods movements posting and explain

their meaning• Analyze the postings during goods receipt into the warehouse



Lesson: Invoice Verification and Delivery Costs

Lesson OverviewThis lesson deals with delivery costs in invoice verification. A distinction is madebetween planned and unplanned delivery costs.


• Enter an invoice with unplanned delivery costs in Logistics InvoiceVerification

• Display the accounting document for an invoice• Explain the postings in the invoice

Business ExampleWhen an invoice is received by your enterprise, it is entered with reference to therelevant purchase order. This makes it possible for the materials, quantities, andprices shown in the invoice to be checked for accuracy. However, it can happenthat unplanned delivery costs are incurred. As an employee in invoice verificationyou inform yourself about the the data entries for unplanned costs of this kind andthe subsquent postings.

Documents at the Time of Invoice ReceiptThis lesson is based on the process shown in the fugure “Procurement of StockMaterial – Invoice Receipt”. After the receipt of the ordered material has beenposted, you have to enter the invoice to conclude this process.


TSCM50 Lesson: Invoice Verification and Delivery Costs

Figure 93: Procurement of Stock Material – Invoice Receipt

When you enter an invoice using Logistics Invoice Verification, a separateaccounting document (FI document) is generated in addition to the invoicedocument (MM document). In this way, when the invoice is posted, paymentinformation is forwarded to financial accounting and various accounts are updated.The system automatically determines which amounts have to be posted to whichaccounts.

Note: The accounting document can also be processed further bydistributed systems or external systems.

Figure 94: Documents in Invoice Verification



The invoice document consists of a document header and at least one item. Theheader data includes the vendor (invoicing party), the posting date, and the nameof the person who created the document. The item data indicates which amount ischarged for which quantity of a material.

The accounting document shows the bookkeeping effects of the entry of theinvoice. The document header contains generally applicable data such as thedocument date, the posting date, the posting period, and the document currency.The G/L account numbers and the associated amounts posted are recorded atitem level.

Figure 95: Invoice and Accounting Documents

The invoice and accounting documents are separate documents. You can identifythe invoice document by the document number and the document year. Theaccounting document can be uniquely identified by the company code, theaccounting document number, and the fiscal year. The person entering the invoicemust specify the company code. As long as it is not necessary to change thecompany code, the system suggests the company code that was last used. Tochange the company code in transaction MIRO, choose Edit → Switch CompanyCode.

Hint: In the standard system, only the materials management documentnumber (the number of the invoice document) is displayed when anincoming invoice is posted. As of SAP R/3 Enterprise, you can setthe status bar to also display the number of the accounting documentin Financial Accounting (FI). You activate the display of MM and FIdocument numbers with the user parameter IVFIDISPLAY by enteringthe value X for the user.



Delivery CostsA distinction can be made between planned and unplanned delivery costs. Planneddelivery costs can be broken down according to origin into freight and duty costs.

Figure 96: Delivery Costs

Planned delivery costs are agreed in advance with the vendor himself, a freightforwarder, or the customs office, and recorded using separate condition typeswhen the purchase order is created. When the goods receipt is posted, postingsare simultaneously made to special clearing accounts (such as the freight clearingaccount). These entries are then cleared when the incoming invoice is posted.

Unplanned delivery costs are costs that are not known at the time of ordering andare therefore not entered until the incoming invoice is posted. If necessary, thevaluation carried out at the time of goods receipt is corrected.

The advantage of planned delivery costs is that they are included in the valuationof the material at the time of goods receipt (or, in the case of purchase orders withaccount assignment, can be charged to the account assignment object). The systemonly carries out the “subsequent debit” process at the time of invoice receipt if thedelivery costs actually invoiced vary from those planned.

In the following, the postings for planned and unplanned delivery costs at the timeof goods and invoice receipt are illustrated using simple examples. In both cases,the starting point is a purchase order for 100 pieces at 1.30 EUR/pc. In the firstcase, planned freight costs amounting to 20 EUR have to be taken into account.



(In the figures, the postings for a material valuated according to the movingaverage price procedure are shown. To simplify the postings, it is assumed thatno tax is payable.)

Planned Delivery Costs

Figure 97: Account Movements in the Case of Planned Delivery Costs

Moving average price material:When the goods receipt is posted, the stock is valuated at total procurementcost (that is, 130 EUR plus 20 EUR freight). A posting of 150 EUR is thusmade to the stock account. The offsetting entry is divided into 130 EUR tothe GR/IR clearing account and 20 EUR to the freight clearing account.The clearing accounts are cleared when the incoming invoice is posted. Theoffsetting entry for the entire invoice amount of 150 EUR is posted to thevendor (creditor) account.

Standard price material:When the goods receipt is posted, the stock is valuated with the product ofquantity times standard price. Any differences vis à vis the total procurementcost of 150 EUR are posted to a price difference account. As in the case of themoving average price material, the offsetting entry is divided into 130 EURto the GR/IR clearing account and 20 EUR to the freight clearing account.The clearing accounts are cleared when the incoming invoice is posted. Theoffsetting entry for the entire invoice amount of 150 EUR is posted to thevendor (creditor) account.



Unplanned Delivery Costs

Figure 98: Account Movements in the Case of Unplanned Delivery Costs

Moving average price material:When the goods receipt is posted, the stock is valuated with 130 EUR. Theoffsetting entry is posted to the GR/IR clearing account.When the incoming invoice is posted, the GR/IR clearing account is clearedat the order price. The resulting difference between order and invoice priceof 16 EUR due to the unplanned costs is posted to the stock account. As aresult, the total value of the stock changes, while the total quantity remainsthe same. In turn, this causes the moving average price to be redetermined.If the stock quantity is less than the invoice quantity at the time of invoiceentry, part of the difference is posted to a price difference account instead ofto the stock account.The vendor (creditor) account is updated at the invoice price.

Standard price material:When the goods receipt is posted, the stock is valuated with the product ofquantity times standard price. Any differences vis à vis the procurement costof 130 EUR are posted to a price difference account. The offsetting entry for130 EUR is posted to the GR/IR clearing account.When the incoming invoice is posted, the GR/IR clearing account is clearedat the order price. The resulting difference between order and invoice priceof 16 EUR due to the unplanned costs is posted to a price difference account.



Exercise 11: Invoice Verification withUnplanned Delivery Costs

Exercise ObjectivesAfter completing this exercise, you will be able to:• Enter invoices with unplanned delivery costs• Explain the effects of unplanned delivery costs on the valuation of material

stocks

Business ExampleYou are analyzing the updates in financial accounting that automatically occurwhen an invoice is posted. In particular, you are interested in the connectionbetween the material valuation procedures and the updating of the accounts infinancial accounting.

Task: Invoice Verification with Unplanned DeliveryCostsVendor Rasch Gr.## has sent you the invoice for the previous delivery of a total of200 Universal taillights. In addition to charging you for the taillights, the vendorhas included the freight costs in the invoice.

1. Enter an invoice

Enter the invoice from the vendor T-K500B## against the purchase orderfor material T-M500B##. Use the following data from the vendor's actualinvoice.




Figure 99: Invoice RE-B1##

Hint: Note that the invoice also includes freight costs. Enter thesefreight costs as unplanned delivery costs on the Details tab page.

Simulate posting the invoice and note the posting lines in the following table.

Item General ledger Acct/mat/asset/vend. Amount

1

2

3

4

5

6

Answer the following question:

Which of the postings are generated as a result of the unplanned deliverycosts?

___________________________________________________________Continued on next page



Finally, post the invoice.

Invoice document number:____________________________

2. Display the material master record

Display the accounting data for material T-M500B## for plant 1000 andplant 1200, and complete the following table.

Pricecontrol

Movingav.price

Standardprice

Totalstock

Totalvalue

Plant1000

Plant1200

Are there any differences vis à vis the results from the goods receiptprocessing? If so, which and why?

3. Display invoice document and purchase order history

Display the invoice document and go from there to the purchase orderhistory. Determine what influence the entry of the invoice with unplanneddelivery costs had on the updating of the PO history.



Solution 11: Invoice Verification withUnplanned Delivery CostsTask: Invoice Verification with Unplanned DeliveryCostsVendor Rasch Gr.## has sent you the invoice for the previous delivery of a total of200 Universal taillights. In addition to charging you for the taillights, the vendorhas included the freight costs in the invoice.

1. Enter an invoice

Enter the invoice from the vendor T-K500B## against the purchase orderfor material T-M500B##. Use the following data from the vendor's actualinvoice.

Figure 100: Invoice RE-B1##

Hint: Note that the invoice also includes freight costs. Enter thesefreight costs as unplanned delivery costs on the Details tab page.

Simulate posting the invoice and note the posting lines in the following table.




Item General ledger Acct/mat/asset/vend. Amount

1 160000 Rasch Gr.## 16060 (-)

2 191100 Goods Rcvd/InvoiceRcvd (third party)

7200

3 300000 Universal taillight ##(=stock account)

100

4 191100 Goods Rcvd/InvoiceRcvd (third party)

7200

5 231000 Loss - price variances 100

6 154000 Input tax 1460

Answer the following question:

Which of the postings are generated as a result of the unplanned deliverycosts?

___________________________________________________________

Finally, post the invoice.

Invoice document number:____________________________



Basic Data tab

Invoice date <Current date>

Reference RE-B1##

Amount 16060

Tax amount 1460

c) Choose the Details tab page and enter the freight costs:

Details tab page

Unpl. Del. Csts 200




d) On the PO Reference tab page, choose Purchase Order/SchedulingAgreement as reference document category and enter your PO number.

Hint: If you want to search for the PO using the F4 help, enterthe following selection values and then choose (Execute).


Vendor T-K500B##

Material T-M500B##

Select the purchase order in the results list and choose(Adopt).

e) Choose Simulate to simulate your postings. Make a note of theaccounts and the amounts.

Postings 3 and 5 are caused by the unplanned freight charges. Posting 3results in the debiting of the stock account Raw Materials 1, because thematerial is valuated according to the moving average price procedure inplant 1000.

In plant 1200, on the other hand, the material is valuated at standardprice. No “subsequent debit” posting is made to the stock accountdue to the unplanned delivery costs. Instead, a posting is made to theexpenditure account for price differences.

f) Choose Post and make a note of the material document number.

2. Display the material master record

Display the accounting data for material T-M500B## for plant 1000 andplant 1200, and complete the following table.

Pricecontrol

Movingav.price

Standardprice

Totalstock

Totalvalue

Plant1000

V 73 0 100 pc 7300

Plant1200

S 73 80 100 pc 8000




Are there any differences vis à vis the results from the goods receiptprocessing? If so, which and why?

a) Choose Logistics → Materials Management → Material Master →Material → Display → Display Current (MM03).

b) Enter material T-M500B## on the initial screen and choose(Continue).

c) Select the Accounting 1 view and choose (Continue).

d) Enter plant 1000 in the Organizational Levels dialog box and choose(Continue).

e) Make a note of the price control, moving average price, standard price,total stock, and total value for plant 1000 in the table.

In comparison with the values from goods receipt processing, the totalvalue - and thus also the moving average price - has been adjusted inplant 1000. (Increase in total value. See explanation for exercise 1.)

f) Choose Edit → Organizational levels, enter plant 1200 in the dialogbox, and confirm your entry with Enter.

g) Make a note of the price control, moving average price, standard price,total stock, and total value for plant 1200 in the table.

The total stock, total value, and the standard price in plant 1200 remainunchanged.

3. Display invoice document and purchase order history




Display the invoice document and go from there to the purchase orderhistory. Determine what influence the entry of the invoice with unplanneddelivery costs had on the updating of the PO history.

a) Choose Logistics → Materials Management → Logistics InvoiceVerification → Further Processing → Display Invoice Document(MIR4).

b) The number of the last invoice you entered is specified automatically.Choose (Enter), or Display document to display the invoicedocument.

c) To branch to the purchase order, double-click the PO number in theitem overview.

d) Choose the PO history tab page in the item detail data.

Due to the unplanned freight costs, there are variances in the purchaseorder history attributable to the invoice received amounting to 100EUR per item.



Lesson Summary

You should now be able to:• Enter an invoice with unplanned delivery costs in Logistics Invoice



Unit Summary TSCM50

Unit SummaryYou should now be able to:• Name documents and master data in which conditions are used• Explain the difference between time-dependent and time-independent

conditions• Create several RFQs for an RFQ activity• Enter the incoming quotations for your RFQs• Execute a price comparison for your quotations• Use the document overview in transaction ME21N• Create purchase orders by referencing RFQs• List the organizational levels relevant for purchasing info records• List the ways in which purchasing info records can be created• Maintain a purchasing info record• Explain the significance of the valuation area• Describe the function of the valuation class• Explain material valuation with the moving average price• Explain material valuation with the standard price• Display the stock overview• List the stock types• Enter a goods receipt in the quality inspection stock• List the documents created during goods movements posting and explain

their meaning• Analyze the postings during goods receipt into the warehouse• Enter an invoice with unplanned delivery costs in Logistics Invoice




Test Your Knowledge

1. In which of the following documents and master records can you enterconditions?Choose the correct answer(s).□ A RFQ (RFQ type AN)□ B Quotation□ C Material master record□ D Purchasing info record□ E Purchase order

2. Which purchasing document(s) allow(s) only time-dependent conditions?Choose the correct answer(s).□ A RFQ / quotation□ B Contract□ C Purchase order□ D Scheduling agreement

3. Which purchasing document(s) allow(s) only time-dependent conditions?Choose the correct answer(s).□ A RFQ / quotation□ B Contract□ C Purchase order□ D Scheduling agreement

4. If you request quotations for materials from several , youmust create a RFQ document in the system for each vendor.To rationalize the relevant entry process, you enter the data that is

in all documents (materials, quantities, dates, collectiveRFQs). Finally, you enter the .Fill in the blanks to complete the sentence.

5. The vendor quotation resulting from an RFQ is displayed as an independentdocument in the SAP system.Determine whether this statement is true or false.□ True□ False



6. Which functions can you execute from or with the price comparison list?Choose the correct answer(s).□ A Compare prices from quotations at item level.□ B Generate more RFQs for an RFQ activity.□ C Maintain (enter and change) prices in quotations.□ D Issue rejection letters.□ E Save market prices.

7. List at least three documents to which you can refer when creating a purchaseorder.

8. All documents that you can select in the document overview of the orderingtransaction can also be displayed from the document overview. Youcan execute changes in this way only for purchase orders and purchaserequisitions.Determine whether this statement is true or false.□ True□ False

9. Which of the following organizational levels are relevant for purchasinginfo records?Choose the correct answer(s).□ A Client□ B Company code□ C Plant□ D Storage location□ E Purchasing organization

10. Conditions can be defined in info records only if the info record was createdmanually.Determine whether this statement is true or false.□ True□ False



11. If conditions are maintained in a purchasing info record, these conditions arealways transferred to the purchase order.Determine whether this statement is true or false.□ True□ False

12. If no valid conditions are defined in an info record, the system never proposesa price in the purchase order.Determine whether this statement is true or false.□ True□ False

13. At which level can the valuation area be determined?Choose the correct answer(s).□ A Client□ B Company code□ C Purchasing organization□ D Plant□ E Storage location

14. You must determine the plant as the valuation area if you want to use eitherof the components Production Planning or Product Cost Accounting.Determine whether this statement is true or false.□ True□ False

15. Which of the following statements about the valuation class are correct?Choose the correct answer(s).□ A The valuation class is a grouping key that controls the procedure

used to valuate a material.□ B Your choice of valuation class determines whether conditions at

plant level are allowed for a material.□ C The valuation class is used to determine which stock account is

updated during the goods movements of a material.□ D The valuation area controls which valuation classes are allowed

for a material.□ E The valuation class enables you to manage the stocks of several

materials in a stock account.



16. For a material that is valuated according to the standard price(price control ), all goods movements are valuated with

price. This price must be specified in the. Variances from this standard

price are posted to accounts.Fill in the blanks to complete the sentence.

17. In material valuation with the moving average price (pricecontrol ), the system valuates goods receipts with the

and withthe current moving average price.Fill in the blanks to complete the sentence.

18. You can use the stock overview to learn about the stock situation of severalmaterials.Determine whether this statement is true or false.□ True□ False

19. You can use the stock overview to learn about the stock situation of onematerial in different plants.Determine whether this statement is true or false.□ True□ False

20. In which master records and documents can the indicator or stock typequality inspection occur?Choose the correct answer(s).□ A Material master record□ B Vendor master record□ C Purchasing info record□ D RFQ□ E PO□ F Material document

21. A is generated as proofof a process that has caused a change in stock. If the goodsmovement is relevant to valuation, the system creates at least one

in addition to the materialdocument.Fill in the blanks to complete the sentence.



22. You can enter both and deliverycosts in Logistics Invoice Verification. The delivery costsare shown in a line per condition type and item in theitem overview. You enter the delivery costs on the

tab page in the header data.Fill in the blanks to complete the sentence.

23. You have mapped the following procurement process in the system: Purchaseorder for stock material - goods receipt for purchase order - invoice receiptfor purchase order with delivery costs that are 100% unplanned.

Select all accounts to which postings could be made within the frameworkof invoice entry.Choose the correct answer(s).□ A Vendor account□ B GR/IR clearing account for external procurement□ C GR/IR freight clearing account□ D Stock account□ E Account for gain from price differences□ F Account for gain from price differences□ G Account for input tax



Answers

1. In which of the following documents and master records can you enterconditions?

Answer: B, D, E

When you create an RFQ, you cannot specify conditions. However, ifthe RFQ is a global percentage bid (RFQ type AB), you can also specifyconditions in the RFQ. Global percentage bids are used for services.A price is specified in the material master record, but this is the valuationprice.

2. Which purchasing document(s) allow(s) only time-dependent conditions?

Answer: C

Conditions in the purchase order are time-independent. Conditions incontracts, however, are always time-dependent. For RFQs and schedulingagreements, you can control the time dependency with the document type.

3. Which purchasing document(s) allow(s) only time-dependent conditions?

Answer: B

Conditions in the purchase order are time-independent. Conditions incontracts, however, are always time-dependent. For RFQs and schedulingagreements, you can control the time dependency with the document type.

4. If you request quotations for materials from several vendors, you must createa separate RFQ document in the system for each vendor. To rationalizethe relevant entry process, you first enter the data that is identical in alldocuments (materials, quantities, dates, collective RFQs). Finally, you enterthe vendor.

Answer: vendors, separate, first, identical, vendor

5. The vendor quotation resulting from an RFQ is displayed as an independentdocument in the SAP system.

Answer: False

Enter the quotation data for an RFQ in the RFQ document.



6. Which functions can you execute from or with the price comparison list?

Answer: A, C, E

The price comparison list compares prices at item level, also for the overallquotation. From the price comparison lists, you can branch to the quotationto display or change it. You can also set the rejection indicator in thequotation items, therefore generating a rejection letter. A rejection can beissued immediately only if you have set this specifically for this message.

7. List at least three documents to which you can refer when creating a purchaseorder.

Answer: You can refer to another purchase order, a purchase requisition,an RFQ, or a contract.

8. All documents that you can select in the document overview of the orderingtransaction can also be displayed from the document overview. Youcan execute changes in this way only for purchase orders and purchaserequisitions.

Answer: False

From the document overview, you can display or change purchaserequisitions and purchase orders only with a double-click.

9. Which of the following organizational levels are relevant for purchasinginfo records?

Answer: A, C, E

10. Conditions can be defined in info records only if the info record was createdmanually.

Answer: False

Conditions can also be updated from a quotation to the info record. Set theinfo update indicator in the quotation item.



11. If conditions are maintained in a purchasing info record, these conditions arealways transferred to the purchase order.

Answer: False

The system transfers only valid conditions from the info record to thepurchase order.

12. If no valid conditions are defined in an info record, the system never proposesa price in the purchase order.

Answer: False

If the reference to a last purchase order is defined in the info record, thesystem proposes the price from this purchase order.

13. At which level can the valuation area be determined?

Answer: B, D

The valuation level (= valuation area) can be either the company code orthe plant.

14. You must determine the plant as the valuation area if you want to use eitherof the components Production Planning or Product Cost Accounting.

Answer: True

Valuation at plant level is mandatory if you want to use either the ProductionPlanning or Product Cost Accounting components or if your system is amySAP Retail system.

15. Which of the following statements about the valuation class are correct?

Answer: C, E

For A: The material type, not the valuation class, determines which valuationprocedure can be selected.For B: The valuation class is not linked to the permitted level for updatingpurchasing conditions.For D The material type determines which valuation classes you choosewhen creating a material master record.



16. For a material that is valuated according to the standard price (price control“S”), all goods movements are valuated with the same price. This price mustbe specified in the material master record. Variances from this standard priceare posted to price difference accounts.

Answer: “S”, the same, material master record, price difference

17. In material valuation with the moving average price (price control “V”),the system valuates goods receipts with the purchase order price and goodsissues with the current moving average price.

Answer: “V”, purchase order price, goods issues

18. You can use the stock overview to learn about the stock situation of severalmaterials.

Answer: False

The stock overview allows only the selection of stocks for one material. Ifyou want to evaluate the stock situation of several materials, you can use theevaluation of warehouse stock (transaction MB52).

19. You can use the stock overview to learn about the stock situation of onematerial in different plants.

Answer: True

In the stock overview, you can make selections from one or several plants.

20. In which master records and documents can the indicator or stock typequality inspection occur?

Answer: A, E, F

For A: In the material master record, the indicator is in the Purchasing Data.For B and C: The quality inspection indicator is not in the vendor masterrecord or in the info record.For D: You cannot specify the stock type in the RFQ.For E: In the purchase order, the stock type is in the item detail on theDelivery tab.For F: The stock type is in the Item Overview or in the item details on theWhere tab.



21. A material document is generated as proof of a process that has causeda change in stock. If the goods movement is relevant to valuation, thesystem creates at least one accounting document in addition to the materialdocument.

Answer: material document, accounting document

22. You can enter both planned and unplanned delivery costs in LogisticsInvoice Verification. The planned delivery costs are shown in a separate lineper condition type and item in the item overview. You enter the unplanneddelivery costs on the Details tab page in the header data.

Answer: planned, unplanned, planned, separate, unplanned, Details

23. You have mapped the following procurement process in the system: Purchaseorder for stock material - goods receipt for purchase order - invoice receiptfor purchase order with delivery costs that are 100% unplanned.Select all accounts to which postings could be made within the frameworkof invoice entry.

Answer: A, B, D, F, G

Postings are made to the vendor and tax accounts and the GR/IR clearingaccount for external procurement in every case. The stock account is postedin the case of materials valuated at the moving average price (providedthat there is stock coverage). For material with standard price control (andmoving average price material in the case of no stock coverage), a pricedifference account is posted. This is a price difference expense account,not a revenue account.


Unit 4Procurement of Consumable Material

Unit OverviewThis unit centers on the procurement of materials for direct consumption. Itcontrasts the procurement process for stock material with that for consumablematerial. It also explains what is understood by consumable material in an SAPsystem.

In this scenario, procurement is triggered by an internal request – a purchaserequisition. To be sure that the required materials can be delivered on the desireddate, the vendor is asked to send an order acknowledgment. Attention then movesto the goods receipt and invoice verification processes, whereby the effects of avaluated against a non-valuated goods receipt are of primary interest.

In addition, you will find out how to procure recurring requirements for low-valueconsumables (known as C articles) using a special purchase order handling processwith low process costs.


• List the differences between the procurement of consumable materials andthat of stock materials

• Explain the meaning of the account assignment category• Use transaction ME51N for purchase requisitions• Create a purchase requisition with items with single and multiple account

assignments• Request a material without a material master record• Create a purchase order with reference to a purchase requisition with account

assignment• Enter an order acknowledgement for a purchase order• Explain the difference between a valuated and a non-valuated goods receipt• Explain the postings resulting from a non-valuated goods receipt during

invoice entry• Explain the purpose of the item category in purchasing documents


Unit 4: Procurement of Consumable Material TSCM50

• Explain the special aspects of procuring materials using a blanket purchaseorder

• Create a blanket purchase order• Enter invoices with reference to a blanket purchase order with Logistics

Invoice Verification

Unit ContentsLesson: Consumable Material - Overview... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .265Lesson: Purchase Requisition ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .273

Exercise 12: Purchase Requisitions ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .283Lesson: Purchase Order and Order Acknowledgement .. . . . . . . . . . . . . . . . . .292

Exercise 13: Converting Purchase Requisition, OrderAcknowledgement .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .299

Lesson: Valuated and Non-Valuated Goods Receipts .. . . . . . . . . . . . . . . . . . . .307Exercise 14: Goods Receipt and Invoice Entry.. . . . . . . . . . . . . . . . . . . . . . . .311

Lesson: Blanket Purchase Order .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .329Exercise 15: Blanket Purchase Order .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .337


TSCM50 Lesson: Consumable Material - Overview

Lesson: Consumable Material - Overview

Lesson OverviewThis lesson gives a brief overview of the procurement of consumable materials andintroduces the account assignment category required for this procurement process.


• List the differences between the procurement of consumable materials andthat of stock materials

• Explain the meaning of the account assignment category

Business ExampleIn your company, certain materials (such as office supplies) are procured directlyfor cost centers. These materials are not subject to inventory management at thestorage location. As a member of the project team, you are going to check theprocurement process for consumable materials.

Consumable materialIn an SAP system, the term consumable material is understood to cover a materialthat is subject to procurement and whose value is settled using the cost elementaccounts or the asset accounts. Therefore, consumable material is procureddirectly for an account assignment object. Examples of consumable materials areoffice supplies and computer systems or machines.

When a material is procured directly for consumption, no material master record isnecessary. The following are different examples of consumable materials:

• Consumable material without material master record• Consumable material with material master record that is not subject to

inventory management (on either a quantity or a value basis)• Consumable material with material master record that is subject to inventory

management on a quantity, but not a value, basis

When procuring a consumable material without a material master record, youmust manually enter a short description, a material group, and a purchase orderunit in the document because this data cannot be taken from a master record. Thisis in contrast to a material with a master record.



In the case of materials with a master record, the material type controls whetherinventory management for a material is to take place on a value basis. Thefollowing material types exist by default for consumable materials:

• Non-valuated material (Material Type UNBW):

This type of material is subject to inventory management on a quantity basis,but not on a value basis. This makes sense for low-value materials that havestocks which still need to be monitored (for example, operating manuals).

• Non-stock material (NLAG) (Material Type NLAG):

Inventory management is not possible for these materials either on a quantityor a value basis. For frequently required consumables, the use of this materialtype enables you to store the information required to create purchasingdocuments (such as texts and units of measure).

Of course, you can procure stock material not only for stock but also directly forconsumption. You may purchase trading goods for a particular customer (salesorder), for example.

Therefore, you can enter an account assignment for each item of a purchasingdocument or a purchase requisition if it is intended for direct consumption. Incertain cases, however, account assignment is mandatory. You have to enter anaccount assignment for an item under the following circumstances:

• If you order a material that is not subject to value-based inventorymanagement. You have to post the value of such a material directly toconsumption (“pure” consumable material).

• If you order an article that does not have a material master record.• If you order a service.

Account Assignment CategoryIf you want to procure a material as a consumable, you must specify an accountassignment category and additional account assignment data in the documentitem of the purchase requisition or purchasing document.



Figure 101: Account Assignment Objects

The account assignment category determines the account assignment objectcategory that is to be charged, which account assignment data you must provide,and which accounts are debited when the goods receipt or the invoice is posted.

Example: Account assignment object cost center (account assignmentcategory K)

When you make an account assignment to a cost center, you must enter theG/L account number of the consumption account and the cost center forwhich the material is to be procured. You enter these data on the accountassignment data screen. You can specify in Customizing that the systemautomatically proposes the number of the G/L account to be charged.

Example: Account assignment object asset (account assignment category A)If you use account assignment category A, you must enter the asset numberon the account assignment data screen. The system automatically determinesthe G/L account to be charged from the asset number. You cannot enterit manually.

Note: It is possible to define further account assignment categoriesor change existing ones in Customizing. (Customizing → MaterialsManagement → Purchasing → Account Assignment → Maintain AccountAssignment Categories)



Figure 102: Purchase Order with Account Assignment

You can specify one or more account assignments for an item. If you specifya multiple account assignment, you must also specify how the purchase orderquantity is to be distributed among the individual account assignment objects.Distribution can be on a quantity or percentage basis. If you enter a multipleaccount assignment for an item, the Non-Valuated GR indicator is automaticallyset for this item.

In addition, you must specify in the item how the costs are to be distributed if onlypart of the ordered quantity is initially delivered and invoiced.

• The partial invoice amount can be distributed among the account assignmentitems of a purchase order item proportionally (in accordance with thedistribution ratio).

• The partial invoice amount can be distributed among the account assignmentitems of a purchase order item on a progressive fill-up basis (in sequence). Inthis procedure, account assignment item 1 is completed first, then accountassignment item 2 and so on, until the invoice value is reached.

The partial invoice indicator can also be derived automatically from the accountassignment category if a partial invoice indicator is specified in Customizingfor the account assignment category.



Hint: As of SAP ERP 6.0 Enhancement Package 4, a valuated goodsreceipt can also be posted for purchase order items with multipleaccount assignment. To do this, you must activate the business functionLOG_MM_MAA_1. You can use this business function to post a valuatedgoods receipt for multiple account assignment and to choose to managethe distribution based on quantity, percentage, and value (new).

You cannot usually tell from an invoice whether it relates to a purchase orderwith account assignment. You can see this in the item list in Logistics InvoiceVerification, where the Account Assignment column shows you whether thepurchase order has an account assignment. You can display the account assignmentinformation and, under certain circumstances, change it.

Special display variants are available for the item list when you enter an invoicefor a purchase order with account assignment.

Procurement Process for ConsumptionIn the “Procurement for Consumption” figure, the procurement processes for stockand consumable material are shown with regard to account assignment.

A material master record is necessary for stock material. You do not specify anaccount assignment category in the purchase order. The account assignment datais determined from the material master record using the valuation class. The stockvalue is posted to a stock account during goods receipt. As a result, the stock valueand stock quantity are updated in the material master record.



Figure 103: Procurement for Consumption (1)

When you procure a consumable material, the material may be a specialconsumable material with a master record or a material without a masterrecord. However, you can also procure stock material for consumption. In allcases, you must specify an account assignment category and other dependentaccount assignment data (such as an account assignment object and G/L account(consumption account)). At the time of goods receipt and/or invoice receipt, theconsumption account specified in the purchase order is then debited with theprocurement value. In addition, data for the account assignment object is updated.

The following figure “Stock Material and Consumable Material – Comparison”lists the most important differences between the procurement of stock material andthat of consumable material.



Figure 104: Stock Material and Consumable Material – Comparison



Lesson Summary

You should now be able to:• List the differences between the procurement of consumable materials and

that of stock materials• Explain the meaning of the account assignment category


TSCM50 Lesson: Purchase Requisition

Lesson: Purchase Requisition

Lesson OverviewThis lesson introduces the purchase requisition as an in-house instrument forentering requirements. The creation of purchase requisitions is shown using anexample of consumable material with and without a material master record.


• Use transaction ME51N for purchase requisitions• Create a purchase requisition with items with single and multiple account

assignments• Request a material without a material master record

Business ExampleYou regularly require spare parts in your plant maintenance department. You donot want to create material master records for these parts if the requirement is notrecurring. You want to test how you can use a purchasing requisition to process theinternal requirements of these materials directly for an account assignment object.

Purchase Requisition in ProcurementIn procurement, the internal requisition for materials or services triggers aprocurement process.



Figure 105: Consumable Material Procurement – PReq

Purchase requisitions are internal documents for asking your Purchasingdepartment to procure a particular quantity of a material or a service for aparticular date. A purchase requisition can be created directly or indirectly.

“Direct” means that a purchase requisition is created manually in the departmentthat made the request. Whoever creates the purchase requisition determines whichmaterial or service is ordered, and the quantity and date.

“Indirect” means that that purchase requisition from another SAP component iscreated automatically. Purchase requisitions can be created automatically, asfollows:

• in MRP• with maintenance orders• with production orders• with networks

Purchase requisitions can also come from SAP Supply Chain Management (SAPSCM) or SAP Supplier Relationship Management (SAP SRM).



Figure 106: Purchase Requisitions

When you create a purchase requisition for materials that have a material masterrecord, the system transfers data in the material master record to the purchaserequisition. As of SAP ERP 6.0, you also have the option of selecting items froma Web-based catalog.

Hint: For more information about the integration of catalogs inPurchasing, see the SAP documentation under SAP ERP CentralComponent → Logistics → Materials Management (MM) → Purchasing(MM-PUR) → Further Functions → Integration of Web-Based Catalogsin Purchasing.

You can convert purchase requisitions into RFQs, purchase orders or outlineagreements.

Creating a Purchase RequisitionIn the transactions for creating, changing or displaying a purchase requisition(ME51N, ME52N, ME53N), there are single-screen transactions, just as inthe purchase order. The division into different screen areas (header data, itemoverview, item details, document overview) and the operation correspond withthe purchase order transaction.

But the header data in the purchase requisition consists only of an internal headermemo.



Figure 107: Purchase Requisition with ME51N, ME52N, ME53N

Entering the Account AssignmentIf you want to request materials or services directly for an account assignmentobject, for example, for your cost center or for an asset, you must specify thecorresponding account assignment category in the item overview. This meansthat you have to enter additional account assignment data in the item detail onthe Account assignment tab.



Figure 108: Single or Multiple Account Assignment

If you have the single account assignment screen displayed on the Accountassignment tab, you can use (Multiple account assignment) to switch to themultiple account assignment screen. On the multiple account assignment screen,choose (Single account assignment) to switch to the single account assignmentscreen. The system makes a note of your last setting. On the multiple accountassignment screen, you can also create single account assignments.

With multiple account assignment, you can distribute the costs for one purchaseorder item among several cost centers, for example. In this case, the createdaccount assignment data represents individual account assignment items. Withmultiple account assignment for an item, you must decide whether the value of theitem is to be distributed on a quantity basis or as a percentage (for example, 10pieces or 10% of the purchase order value to cost center 1000).

Hint: As of SAP ERP 6.0 Enhancement Package 4, you can also splitthe value directly. To do this, you must activate the business functionLOG_MM_MAA_1.



If there are partial invoices, you can choose whether

• the partial invoice amount is distributed proportionally to the accountassignment items.

• the partial invoice amount is distributed in sequence to the accountassignment items.

If you want to distribute the quantity in a purchase requisition item with accountassignment to the different account assignment items, you just need to enterthe account assignments, but not the subquantities. The system automaticallydistributes the requested quantity in equal parts to the existing account assignmentitems. If you change the requested total quantity in the item overview, the quantityis adjusted in the relevant account assignment items. As soon as you change thequantity or percentage of the account assignment item, the system can no longerexecute an automatic distribution.

Examples of automatic account assignment distribution: You have requested90 office chairs and assigned them equally to three cost centers. However, becauseyou require 120 office chairs, you change the requested quantity in the itemoverview. The system then automatically changes the distribution so that 40 officechairs are assigned to each cost center.

Hint: The icons and mentioned above are also used in the purchaseorder transaction ME21N. But in a purchase order item with a multipleaccount assignment, the system cannot automatically distribute theordered quantity in equal parts to the existing account assignment items.

Features of the Purchase RequisitionAccount assignment category: Unknown

If you do not know the account assignment object for which the material isbeing procured when you create the purchase requisition, you can use accountassignment category U (unknown) in the purchase requisition item. Then you donot need to enter any more account assignment details. If you create a purchaseorder item with reference to this purchase requisition item, you must specifyprecise account assignment information because account assignment categoryUnknown is not allowed in the purchase orders.

Hint: Account assignment category U is allowed in purchase orders forexternal services and blanket purchase orders.



Figure 109: Features of Purchase Requisition

Valuation price:

When you create a purchase requisition item for valuated material, the valuationprice is pulled from the material master record. For non-valuated material ormaterial without a master record, the creator must manually enter the valuationprice. This valuation price can be used for a value-related release procedure. Therelease can refer to the value of the individual item or to the total value of therequisition. If a previously defined release strategy becomes effective, you cancreate a request or a purchase order with reference to a purchase requisition onlyafter the purchase requisition has been released.

Hint: You can also dispense with the manual entry of a valuation priceand use the missing valuation price as a criterion for your release strategy.



Status and Creation Indicator

Figure 110: Processing Status and Creation Indicator

If you want to trace whether your purchase requisition item has been processed,evaluate the processing status of the purchase requisition item. You can see theprocessing status on the Status tab page in the item detail area. The processingstatus provides information about whether the item has been ordered, not orderedor requested, or whether the item has been converted into an outline agreement.The Status tab lists the purchase order history of referenced purchasing documents(created with reference to this purchase requisition item). You can obtaininformation about previously posted goods receipts and invoices.

For you as a buyer, it might be interesting to see how the purchase requisition wascreated in the system, manually or automatically (for example, through materialsplanning). In the item detail on the Contact person tab, the creation indicatorcan provide information.

Templates for Purchase Requisitions (and Purchase Orders)As of SAP ERP 6.0 Enhancement Package 5, you can create purchaserequisitions (and purchase orders) for materials that are requested (or ordered)frequently, more efficiently and reduce the effort involved in data entry withuser-specific templates or public templates. Public templates are available toall users.



Templates can be used in the following transactions:

• Create Purchase Requisition (ME51N) and Change Purchase Requisition(ME52N)

• Create Purchase Order (ME21N) and Change Purchase Order (ME22N)

Figure 111: Templates for Purchase Requisitions

In these transactions, choose the Save As Template or Load from Templatepushbutton. You see a dialog box in which you can save, load, or delete templates.When you save a template, you can define the template as a public template. Whenyou load a template, you can decide whether you want to copy header and itemdata to the new purchasing document, or only the item data.

To save and delete public templates that are available to all users, you need theappropriate authorizations (authorization object Create/Change/Delete PublicTemplates M_TEMPLATE). When you copy a user, the user-specific templates ofthe user you are copying are copied to the new user master record.

Hint: Before you can use the template function in purchase requisitionand purchase order, you have to activate the Business FunctionLOG_MM_CI_3.



Exercise 12: Purchase Requisitions

Exercise ObjectivesAfter completing this exercise, you will be able to:• Create and process purchase requisitions for consumable material• Use a catalog when creating document items• Analyze the current processing status of the purchase requisitions

Business ExampleThe various departments in your company report their material requirements toPurchasing using purchase requisitions. These purchase requisitions are thenprocessed further in the Purchasing department. To simplify processing, thePurchasing department provides a catalog containing the materials most frequentlyrequired by the other departments. This catalog contains both materials withmaster records and materials without master records. Each material in the catalogcomes with a short text, vendor, price, and vendor material number. When apurchase requisition is created, items can be copied from the catalog.

Task: Processing Purchase RequisitionsIn the IT department, you require cordless optical mice, a stereo headset, andexternal hard disks. You can select the mice and the headset from the catalog. Forthe external hard disks you need to enter all the relevant data manually.


Before you create the purchase requisitions, maintain your personal defaultvalues. This data is then proposed for each item. Define the following values:

Purchasing group SCM500-## (T##)

Account assignment cat. Cost center (K)

Delivery date: Today + 7 days

Plant: 1000

Tracking number: IT##

2. Create purchase requisition with catalog items

Create a purchase requisition for a “Stereo Headset Basic X##” and 10cordless mice of the model “Cordless Optical Mouse S##”.

Use the catalog when you create the items for the headset and the mice.Display the details of the catalog entries before you copy the items to yourpurchase requisition.




You can take the account assignment for the individual items from thefollowing list:

Material Quantity Cost Center G/L Account

Stereo Headset 1 piece 4100 400000

6 pieces 4100 400010Cordless OpticalMouse 4 pieces 4110 400010

Hint: To enter the multiple account assignment, go to the AccountAssignment tab page and choose Multiple Account Assignment.This takes you from the single account assignment screen to themultiple account assignment screen.

When you have entered all the data in the purchase requisition, check that avaluated goods receipt is provided for both items.

Save the purchase requisition.

Purchase requisition number: ___________________________

3. Create a purchase requisition for a material without a master record

Create a purchase requisition for four external hard disks for plant 1000.

Enter the name External Hard Disk 3.5”, 320 GB in the field for the shorttext of the material. Add piece(s) (PC) as the unit of measure and hard disks(00208) as the material group. Enter 84.00 EUR as the Valuation Price andselect the GR Non-Val. indicator.

You can take the account assignment from the following list:


1 piece 1000 400000External hard disks

3 pieces 4100 400000

Save your purchase requisition after you have entered all the data.


4. Display purchase requisitions for a requirement tracking number




Display a list of the purchase requisitions for your requirement trackingnumber IT##.

Hint: Use the general list display for purchase requisitions(Purchasing → Purchase Requisition → List Displays → General(ME5A)).

Go from the list to the purchase requisition item directly. What is theprocessing status of this item?

Status: _______________________________

Return to the list. This also shows the processing status of each requisitionitem.

To which items is a fixed vendor assigned?

Items: _______________________________



Solution 12: Purchase RequisitionsTask: Processing Purchase RequisitionsIn the IT department, you require cordless optical mice, a stereo headset, andexternal hard disks. You can select the mice and the headset from the catalog. Forthe external hard disks you need to enter all the relevant data manually.


Before you create the purchase requisitions, maintain your personal defaultvalues. This data is then proposed for each item. Define the following values:

Purchasing group SCM500-## (T##)

Account assignment cat. Cost center (K)

Delivery date: Today + 7 days

Plant: 1000

Tracking number: IT##

a) Choose Logistics → Materials Management → Purchasing →Purchase Requisition → Create (ME51N).

b) Choose Personal Setting.

c) Choose the Default Values tab page.

d) Choose More Fields ... to add the plant and the purchasing group tothe default values.

In the Change Layout dialog box, select the plant and the PurchasingGroup from the Hidden fields list and choose Show selected fields.Choose Copy.

e) Enter the default values listed above.

f) Choose (Save) to save your personal default values. These defaultvalues are used in the purchase requisition until you change them again.

2. Create purchase requisition with catalog items

Create a purchase requisition for a “Stereo Headset Basic X##” and 10cordless mice of the model “Cordless Optical Mouse S##”.

Use the catalog when you create the items for the headset and the mice.Display the details of the catalog entries before you copy the items to yourpurchase requisition.




You can take the account assignment for the individual items from thefollowing list:


Stereo Headset 1 piece 4100 400000

6 pieces 4100 400010Cordless OpticalMouse 4 pieces 4110 400010

Hint: To enter the multiple account assignment, go to the AccountAssignment tab page and choose Multiple Account Assignment.This takes you from the single account assignment screen to themultiple account assignment screen.

When you have entered all the data in the purchase requisition, check that avaluated goods receipt is provided for both items.

Save the purchase requisition.


a) Choose Catalog. The system takes you to the catalog.

b) Use the description of the material, or part of the description, as thekeyword for the selection. For example, you could enter Headset*##as the keyword when searching for the headset.

c) Select the required entry from the search result, enter the quantity youneed and choose Add to Cart.

d) Proceed as described under b) and c) for the material CordlessOptical Mouse S##.

e) Choose View Cart.

f) To display the details for an item, select the Short Description ofthe item. You can use the Next Item and Previous Item pushbuttonsto switch between the detail views for the items. To return to theoverview, choose Back to Cart Preview.

g) Choose Transfer All or Check out to copy the items from the catalog tothe purchase requisition.

h) In the item detail for the first item, choose the Account Assignmenttab page and enter 400000 for the G/L account and 4100 for theCost Center.

i) Choose Next item to open the details of the second item.




j) To enter the account assignment data for the second item, choose(Multiple Account Assignment) from the Account Assignment tab page.

Then enter the following data:

Quantity Cost Center G/L Account

6 4100 400010

4 4110 400010

k) To check that a valuated receipt is provided for the item, choose theValuation tab page in the item details. Ensure that the Goods Receiptindicator is set and the GR Non-Val. indicator is not set.

Check the settings for both items.

l) Choose (Save) and note the purchase requisition number.

3. Create a purchase requisition for a material without a master record

Create a purchase requisition for four external hard disks for plant 1000.

Enter the name External Hard Disk 3.5”, 320 GB in the field for the shorttext of the material. Add piece(s) (PC) as the unit of measure and hard disks(00208) as the material group. Enter 84.00 EUR as the Valuation Price andselect the GR Non-Val. indicator.

You can take the account assignment from the following list:


1 piece 1000 400000External hard disks

3 pieces 4100 400000

Save your purchase requisition after you have entered all the data.


a) Enter the following data:

Item Overview, Item 10

Short Text External Hard Disk 3.5",320 GB

Quantity/UoM 4 PC

Material Group 00208 (hard disks)




Item Detail, Account assignment tab page

Quantity Cost Ctr/GL Acct

1 1000 / 400000

3 4100 / 400000

Item Detail, Valuation tab page

Valuation Price 85

Goods Receipt

GR Non-Val.

b) Choose (Save) and note the purchase requisition number.

4. Display purchase requisitions for a requirement tracking number

Display a list of the purchase requisitions for your requirement trackingnumber IT##.

Hint: Use the general list display for purchase requisitions(Purchasing → Purchase Requisition → List Displays → General(ME5A)).

Go from the list to the purchase requisition item directly. What is theprocessing status of this item?

Status: _______________________________

Return to the list. This also shows the processing status of each requisitionitem.

To which items is a fixed vendor assigned?




Items: _______________________________

a) Choose Logistics → Materials Management → Purchasing →Purchase Requisition → List Displays → General (ME5A)

b) Enter the requirement tracking number IT## and choose (Execute).

c) Double-click a purchase requisition item to branch to the purchaserequisition.

d) Choose the Status tab page in the item details.

The item has the status Not edited.

e) Choose (Back) to display the list again.

In the purchase requisitions list, the processing status N is in the thirdline (for each item). If you select N, the F1 help and F4 help areavailable here. When you start the F4 help, you will receive the shortdescription Not edited.

f) You can also see from the list that the vendor T-K500C## is alreadyassigned to the two items that you selected from the catalog.



Lesson Summary

You should now be able to:• Use transaction ME51N for purchase requisitions• Create a purchase requisition with items with single and multiple account

assignments• Request a material without a material master record



Lesson: Purchase Order and Order Acknowledgement

Lesson OverviewThe main topic of this lesson is the conversion of purchase requisitions intopurchase orders. The lesson also introduces the confirmation categories thatcan be used for purchase orders. You will also learn how to enter an orderacknowledgement for a purchase order item.


• Create a purchase order with reference to a purchase requisition with accountassignment

• Enter an order acknowledgement for a purchase order

Business ExampleIn your company, the material requirements reported internally by the cost centerare converted into purchase orders by the purchasing department. For some ofthese purchase orders you want, that the vendors send you confirmations.

Convert a Purchase Requisition into a Purchase OrderAs a buyer you must convert purchase requisitions created by the user departmentinto purchasing documents. The purchasing document can be a purchase order,a contract release order, a scheduling agreement schedule line, or even an RFQ.The following demonstrates how to convert a purchase requisition into a purchaseorder.


TSCM50 Lesson: Purchase Order and Order Acknowledgement

Figure 112: Consumable Material Procurement – Purchase Order

A range of options are available to convert a purchase requisition.

Before the actual conversion of a purchase requisition item, you can assign asource of supply (such as info record, outline agreement, or scheduling agreement)to the item.

Hint: Sources of supply are assigned in the purchase requisition at itemlevel, not at header level.

You can assign a source of supply to a purchase requisition item in differentways. For example, you can enter a source of supply when creating or changinga purchase requisition item in the Source of Supply tab. You also can use thefunction source determination, to let the system automatically determine thesource of supply.



Figure 113: Converting Purchase Requisitions

You can manually or automatically convert a purchase requisition item with sourceof supply into a purchase order. The system copies the vendor from the sourceof supply for the purchase requisition.

If a source of supply has not yet been assigned in the purchase requisition item,you can still create a purchase order with reference to this purchase requisitionitem. In this case, you must manually enter the vendor in the purchase order.

Hint: For more information about “source of supply determination”and “converting purchase requisitions”, refer to the documentation forMaterials Management in the Purchasing topic (Optimized PurchasingProcessing), and the training course SCM520 – Purchasing.

Special Features for Converting Purchase RequisitionsPurchase requisition items with the account assignment category Unknown:

In contrast to the purchase requisition, the account assignment category Unknown(U) is only allowed in the purchase order in connection with the item types Serviceand Limit. In all other situations, you must select a valid account assignmentobject and maintain the corresponding account assignment details when creatingthe purchase order.



Figure 114: Copying Purchase Requisition Data to the Purchase Order

Purchase requisition items with material master record:

If an info record exists for the vendor and the material, the system proposesthe purchase price from the info record when you create a purchase order withreference to a purchase requisition (without source of supply). If this is not thecase, you must enter the price manually. The valuation price from the purchaserequisition item is not transferred to the purchase order.

Purchase requisition items without material master record:

If the system transfers a purchase requisition item without a material master tothe purchase order, the system proposes the valuation price from the purchaserequisition as the purchase price. The buyer can change this default price.

Order Acknowledgement of Purchase OrderYou can enter vendor acknowledgements for purchase orders or schedulingagreement delivery schedule lines. Confirmations are notifications for thevendor about the estimated arrival and quantity of ordered materials (such asorder acknowledgement, loading or transportation confirmation, and shippingnotification). You can manually enter confirmations that you receive, or receivethem via EDI and have them processed automatically.



Figure 115: Order Acknowledgements

If you are using confirmations, you have the advantage that material requirementsplanning (MRP) does not exclusively depend on the vendor dates and vendorquantities in the purchase order or the scheduling agreement delivery scheduleline. Acknowledgements enable you to plan material requirements moreaccurately by providing very reliable information about the delivery in the timespan between the purchase order date and the expected delivery date. You can alsomonitor receipt of the required confirmations.

You should distinguish between confirmations that are entered directly in thepurchasing document (order acknowledgement) and confirmations that representindividual documents (shipping notification).

If you need more than one confirmation category for a purchase documentitem, you use the confirmation control key. With this key you are able to build“confirmation chains”. For more detailed information, refer to the SAP Libraryunder Logistics → Materials Management → Purchasing → Confirmations.

If you are expecting a confirmation for a purchase order item, enter a confirmationcontrol key in the item detail in the Confirmations tab . If you want to urgethe vendor to submit outstanding order acknowledgements, you set theAcknowledgement requirement indicator.



When you receive the order acknowledgement of the vendor, you change yourpurchase order by entering the confirmation data (date, time, quantity, number oforder acknowledgement) in the purchase order in the Confirmations tab.

Note: You can also only set the Acknowledgement requirement indicator,without confirmation control key. In this case you cannot enter theconfirmed quantities and dates separately in the system. If the confirmedquantities and dates differ from the purchase order values, you have tochange the original data in the purchase order.



Exercise 13: Converting PurchaseRequisition, Order Acknowledgement

Exercise ObjectivesAfter completing this exercise, you will be able to:• Create a purchase order with reference to purchase requisition• Check the processing status of purchase requisitions

Business ExampleAs a member of the central Purchasing department, you are responsible forprocessing purchase requisitions for the different departments in your company.Purchase requisitions for consumable materials is also one of your responsibilities.

Task 1: Create Purchase Order with Reference to PReqThe purchase requisitions for the PC accessories need to be converted intopurchase orders. Create a purchase order for each purchase requisition.

For the purchase requisition that contains catalog items, the vendor H.A.G.Potsdam Gr.## is already assigned as the source of supply for these items. Theexternal hard disks are also order from the vendor H.A.G. Potsdam Gr.##.

1. Purchase order for the headset and the cordless optical mouse

Create a purchase order with reference to your first purchase requisition. Thevendor T-K500C## (H.A.G. Potsdam Gr.##) should be adopted from thepurchase requisition automatically.

Hint: In the document overview, either select the current purchaserequisitions for your requirement tracking number IT## or choosethe selection variant My Purchase Requisitions.

Check whether the account assignment data and the control for the valuatedgoods receipt are adopted from the purchase requisition to the purchase order.

Save your purchase order and make a note of the number.

Purchase order number: ____________________________

2. Purchase order for external hard disks

Create a purchase order with reference to your second purchase requisition.Enter the vendor T-K500C## for this purchase order.




After consultation with the vendor, the price for the hard disks is calculatedat 80 EUR per piece. Adjust the purchase order price accordingly.

For this purchase order, also check whether the account assignment data andthe control for the non-valuated goods receipt have been adopted correctlyfrom the purchase requisition.

You also want to receive an order acknowledgement from the vendor forthe hard disks. Therefore, specify the confirmation control key OrderAcknowledgement in the Confirmations tab page of the item detail.

Save your purchase order immediately after entering all the data.


3. Display the purchase requisition

Display one of your converted purchase requisitions. What is the processingstatus of the purchase requisition items?

Status: ______________________________________

4. Display purchase order for hard disks

Display your purchase order for the hard disks. Where in the purchase ordermust you look to find out whether a purchase order item was created withreference to a purchase requisition?

Do not leave the purchase order transaction after this.

Task 2: Entering order acknowledgementThe order acknowledgement for the hard disks has been received and must beentered.

1. Enter the order acknowledgement in the purchase order.

Display the purchase order in change mode and open the detail data for theexternal hard disks item. The Confirmations tab page includes a table inwhich you can enter the following vendor specifications.

Confirmation category: AB (order acknowledgement)

Delivery date: Delivery date from purchase order

Quantity: 4 pieces

External document(reference):

AB-HAG##

Save your changes.



Solution 13: Converting PurchaseRequisition, Order AcknowledgementTask 1: Create Purchase Order with Reference to PReqThe purchase requisitions for the PC accessories need to be converted intopurchase orders. Create a purchase order for each purchase requisition.

For the purchase requisition that contains catalog items, the vendor H.A.G.Potsdam Gr.## is already assigned as the source of supply for these items. Theexternal hard disks are also order from the vendor H.A.G. Potsdam Gr.##.

1. Purchase order for the headset and the cordless optical mouse

Create a purchase order with reference to your first purchase requisition. Thevendor T-K500C## (H.A.G. Potsdam Gr.##) should be adopted from thepurchase requisition automatically.

Hint: In the document overview, either select the current purchaserequisitions for your requirement tracking number IT## or choosethe selection variant My Purchase Requisitions.

Check whether the account assignment data and the control for the valuatedgoods receipt are adopted from the purchase requisition to the purchase order.

Save your purchase order and make a note of the number.






b) If you have opened the document overview, choose Document overviewon.

c) Choose (Selection Variants) and then My Purchase Requisitions.

You can also choose the selection variant Purchase requisitions. Enterthe requirement tracking number IT##, delete all the other selectionvalues, and choose (Execute).

d) Select your purchase requisition with two items in the documentoverview and choose (Adopt).

Alternatively, you can drag the purchase requisition into the shoppingcart.

e) Open the item details and check the data in the Account Assignment andDelivery tab pages for both items.

f) Choose (Save) and make a note of the purchase order number.

2. Purchase order for external hard disks

Create a purchase order with reference to your second purchase requisition.Enter the vendor T-K500C## for this purchase order.

After consultation with the vendor, the price for the hard disks is calculatedat 80 EUR per piece. Adjust the purchase order price accordingly.

For this purchase order, also check whether the account assignment data andthe control for the non-valuated goods receipt have been adopted correctlyfrom the purchase requisition.

You also want to receive an order acknowledgement from the vendor forthe hard disks. Therefore, specify the confirmation control key OrderAcknowledgement in the Confirmations tab page of the item detail.

Save your purchase order immediately after entering all the data.






b) Enter the vendor T-K500C##.

c) If you have not opened the document overview, choose DocumentOverview On.

d) Choose (Selection variant) and then My purchase requisitions.

You can also choose the selection variant Purchase Requisitions. Enterthe requirement tracking number IT##, delete all the other selectionvalues, and choose (Execute).

e) Select your second purchase requisition (one item) in the documentoverview and choose (Adopt).

Alternatively, you can drag the purchase requisition and drop it into theshopping cart.

f) Change the price from 85 EUR (default value from the purchaserequisition) to 80 EUR.

g) Open the detail data for the hard disks item. Choose the Confirmationstab and in the Conf. Control list field select ConfirmationSCM500 (T-AB).

h) Choose (Save) and make a note of the PO number.

3. Display the purchase requisition

Display one of your converted purchase requisitions. What is the processingstatus of the purchase requisition items?

Status: ______________________________________

a) If you have opened the document overview with your purchaserequisitions, double-click the purchase requisition number to display apurchase requisition.

b) When you have displayed the purchase requisition, open the item detaildata.

c) Choose the Status tab page.

The processing status of the three items is Purchase order created.

4. Display purchase order for hard disks




Display your purchase order for the hard disks. Where in the purchase ordermust you look to find out whether a purchase order item was created withreference to a purchase requisition?

Do not leave the purchase order transaction after this.

a) In the document overview, choose (Selection Variant) and thenMy Purchase Orders. Double-click the number of your last purchaseorder to display it.

b) The numbers of reference documents are displayed in the item overviewfor each item. Scroll to the right until you see the columns PReq andPReq item.

c) Keep the purchase order displayed for the following task.

Task 2: Entering order acknowledgementThe order acknowledgement for the hard disks has been received and must beentered.

1. Enter the order acknowledgement in the purchase order.

Display the purchase order in change mode and open the detail data for theexternal hard disks item. The Confirmations tab page includes a table inwhich you can enter the following vendor specifications.

Confirmation category: AB (order acknowledgement)

Delivery date: Delivery date from purchase order

Quantity: 4 pieces

External document(reference):

AB-HAG##




Save your changes.

a) After you process the previous task, you should be able to display thepurchase order for the hard disks.

Choose (Display/Change) to switch to change mode.

b) Open the detail data for the hard disks item.

c) Choose the Confirmations tab page and enter the following data:

Confirmations tab

CC (confirmationcategory)

AB

Delivery date <Tomorrow>

Quantity 4

Reference AB-HAG##

d) Choose (Save) to save your changes.



Lesson Summary

You should now be able to:• Create a purchase order with reference to a purchase requisition with account

assignment• Enter an order acknowledgement for a purchase order


TSCM50 Lesson: Valuated and Non-Valuated Goods Receipts

Lesson: Valuated and Non-Valuated Goods Receipts

Lesson OverviewFor consumable material (in contrast to stock material) you can specify in thepurchase order whether or not valuation is to take place at the time of the goodsreceipt. You can also completely dispense with the goods receipt entry.

This lesson covers goods receipt and invoice entry in more detail from this pointof view. The postings in invoice verification are a focal point.


• Explain the difference between a valuated and a non-valuated goods receipt• Explain the postings resulting from a non-valuated goods receipt during

invoice entry

Business ExampleIn your company, the costs for materials, which are procured directly for a costcenter, are usually also posted to consumption only at the time the invoice isentered. Therefore, you want to learn about valuation of goods receipts andinvoice receipts for purchase orders with account assignments.

Goods Receipt and Invoice Receipt for ConsumableMaterialThe account assignment entered in the purchase order affects how the procurementprocess functions. For example, a consumption account is used for posting, nota stock account.



Figure 116: Consumable Material Procurement – GR and IR

Another difference between the procurement of stock material and theprocurement of consumable material is that in the latter you can decide whetherthe goods receipt is to be valuated or non-valuated for order items with accountassignments. If you decide on a non-valuated goods receipt, no postings take placein accounting at the time of the goods receipt. The value-based consumptionposting does not take place until you post the invoice. The commitment, whichwas created by the purchase order item with account assignment, can be reducedonly by entering an invoice.

Figure 117: Procurement for Consumption (2)



Another alternative for purchase order items with account assignments is to dowithout the goods receipt. In this case, the FI postings correspond to the postingsof a non-valuated goods receipt.

The Goods Receipt and GR Non-Val. indicators can be found:

• In the purchase order in the item detail on the Delivery tab• In the purchase requisition in the item detail on the Valuation tab

If no updates have taken place in accounting at the time of the goods receipt, youcan change the account assignment during invoice entry, if the account assignmentcategory allows this.

Figure 118: Postings for Valuated/Non-Valuated GRs

Since the figure shows a purchase order item with account assignment, aconsumption account is debited (whereas the item without account assignmentposts to a stock account). To simplify the example, no taxes are included.

Valuated goods receipt

At the time of the goods receipt, the consumption account that you specified inthe purchase order item is debited with the procurement price of 130 EUR. Theoffsetting entry is posted to the GR/IR clearing account.

During invoice receipt, the GR/IR clearing account is cleared in full. The offsettingentry is posted to the vendor account. If the invoice price varies from the orderprice, the corresponding difference would be posted to the consumption account.

Non-Valuated Goods Receipt



At the time of the goods receipt, there are no postings to the consumption account.Therefore, posting to the GR/IR clearing account is not applicable.

During invoice receipt, the consumption account is debited with the invoiceamount of 130 EUR. The offsetting entry is posted to the vendor account.



Exercise 14: Goods Receipt and InvoiceEntry

Exercise ObjectivesAfter completing this exercise, you will be able to:• Enter goods receipt and invoice receipt for consumable material• Explain the effects of a valuated and non-valuated goods receipt of

consumable material on the update of the accounts in Accounting

Business ExampleThe consumable materials you ordered are forwarded directly to the requestingdepartment instead of being placed in storage.

Task 1: Valuated Goods Receipt and Invoice EntryThe vendor T-K500C## delivers the goods from the purchase order. The deliverycontains the invoice in addition to the delivery note. Enter the goods receipt andthe invoice for the purchase order and check the correct update in accountingand the purchase order history.

1. Enter goods receipt against purchase order

The vendor T-K500C## delivers the headset and the optical mice toyou. Enter the goods receipt for your relevant purchase order. Note thespecifications of the delivery note.



Do not leave the transaction after posting the goods receipt.




Figure 119: Delivery Note Number LS-C1##

2. Display the accounting document for the goods receipt

Display the material document of the goods receipt you have just entered.Does an accounting document exist for this material document? Give reasonsfor your answer.

____________________________________________________

____________________________________________________

In the following table, make a note of which accounts were posted withwhich amounts.


1

2

3

4

5

6

3. Enter invoice




The vendor included the invoice with the goods delivery. Post the invoice.You can refer to the following graphic for the exact invoice data.

Figure 120: Invoice RE-C1##

Invoice document number: _______________________________________

Do not leave the invoice entry transaction after you have posted the invoice.

4. Display the invoice accounting document

Display the accounting document for the invoice and note the postings in thefollowing table.


1

2

3

4

5

Which account is posted to for the goods receipt and the invoice receipt?

After this task, do not leave the invoice document display.





Branch from the invoice document to the purchase order and answer thefollowing questions:

Does the purchase order history have any special features that it does nothave when you procure a stock material?

Which indicator in the purchase order controls that the goods receipt isvaluated?

Task 2: Non-Valuated Goods Receipt and Invoice EntryThe vendor T-K500C## delivers the external hard disks and this delivery alsoincludes the invoice. Enter the goods receipt and the invoice for the purchaseorder and check the correct update in accounting and the purchase order history.

1. Entering a Goods Receipt For a Purchase Order

The vendor T-K500C## delvers the four external hard drives. Enter thegoods receipt for your relevant purchase order. Note the specifications ofthe delivery note.










3. Enter invoice

The vendor dispatched the relevant invoice with the second delivery. Postthe invoice. You can refer to the following graphic for the exact invoice data.




4. Display accounting document for invoice






1

2

3

5

Do not leave the invoice document display after this task.



Can you recognize from the purchase order history whether the goods receiptis valuated or non-valuated?

Which indicator in the purchase order controls that the goods receipt isnon-valuated?



Solution 14: Goods Receipt and InvoiceEntryTask 1: Valuated Goods Receipt and Invoice EntryThe vendor T-K500C## delivers the goods from the purchase order. The deliverycontains the invoice in addition to the delivery note. Enter the goods receipt andthe invoice for the purchase order and check the correct update in accountingand the purchase order history.

1. Enter goods receipt against purchase order

The vendor T-K500C## delivers the headset and the optical mice toyou. Enter the goods receipt for your relevant purchase order. Note thespecifications of the delivery note.









b) Choose Goods Receipt as the transaction and Purchase Order as thereference. Enter 101 as the default value for the movement type.

c) Choose (Find Purch. Order). Enter vendor T-K500C##.

Choose Find. A separate screen area with the search result appears.

d) Select the purchase order items for the headset and the optical mice andchoose (Adopt).

Then close the search result with (Close Search Result).

e) Open the header data and enter LS-C1## in the Delivery note fieldon the General tab page.

f) Set the OK indicator for the items. Note that you can set the indicatorin the detail data only if the detail data area is open.

g) Choose Post and make a note of the material document number.

Do not exit the transaction after posting the goods receipt.






____________________________________________________

____________________________________________________

In the following table, make a note of which accounts were posted withwhich amounts.


1 400000 Consumption, raw material 1 24,00


24,00 (-)

3 400010 Raw materials consumed 2 108,00


108,00 (-)

5 400010 Raw materials consumed 2 72,00


72,00 (-)



c) In the header data, choose the Document Info tab and then FIDocuments to branch to the accounting document.

d) In the List of documents in Accounting dialog box double-click theaccounting document number. Note the accounting document datain the table.

When you posted the goods receipt, an accounting document wascreated because a valuated goods receipt was provided for bothpurchase order items.


3. Enter invoice




The vendor included the invoice with the goods delivery. Post the invoice.You can refer to the following graphic for the exact invoice data.










Reference RE-C1##

Amount 224,40

Tax amount 20,40



Hint: If you want to search for the PO using the F4 help, entervendor T-K500C## and then choose (Execute).



e) If necessary, change the tax code in the item to 1I (input tax fortraining purposes (10 %)).

f) Choose (Post) and note the number of the invoice document.

Do not leave the invoice entry transaction after you have posted theinvoice.

4. Display the invoice accounting document



1 T-K500C## H.A.G. Potsdam Gr.## 224,40 (-)


24,00





108,00


72,00

5 154000 Input tax 20,40

Which account is posted to for the goods receipt and the invoice receipt?

After this task, do not leave the invoice document display.

a) To display the invoice document, choose (Other Invoice Document).The system proposes the number of the invoice you last posted. Simplychoose Enter to confirm this number.

b) Choose Follow-on documents.

c) In the List of documents in Accounting dialog box, double-click theaccounting document number to display the accounting document.

Make a note of the postings in the table. Data is posted to the GR/IRclearing account during goods receipt and invoice receipt.

d) Choose (Back) to display the invoice document again.



Does the purchase order history have any special features that it does nothave when you procure a stock material?

Which indicator in the purchase order controls that the goods receipt isvaluated?

a) To branch to the purchase order, double-click the PO number in theitem list of the invoice document.

b) Then choose the PO history tab page in the purchase order item details.

The purchase order history for this purchase order item with accountassignment does not differ from the purchase order history for a stockmaterial item.

c) Choose the Delivery tab page in the item detail data. The GRnon-valuated indicator is not set. The goods receipt was thereforevaluated.




Task 2: Non-Valuated Goods Receipt and Invoice EntryThe vendor T-K500C## delivers the external hard disks and this delivery alsoincludes the invoice. Enter the goods receipt and the invoice for the purchaseorder and check the correct update in accounting and the purchase order history.

1. Entering a Goods Receipt For a Purchase Order

The vendor T-K500C## delvers the four external hard drives. Enter thegoods receipt for your relevant purchase order. Note the specifications ofthe delivery note.









b) Choose Goods Receipt as the transaction and Purchase Order as thereference. Enter 101 as the default value for the movement type.

c) Choose (Find Purch. Order). Enter vendor T-K500C##.

Choose Find. A separate screen area with the search result appears.

d) In the search result, select the purchase order item for the hard disksand choose (Adopt).

Then close the search result (Close Search Result).

e) Open the header data and enter LS-C2## in the Delivery Note fieldon the General tab page.

f) Set the OK indicator for the item. Note that you can set the indicator inthe detail data only if the detail data area is open.

g) Choose Post and make a note of the material document number.

Do not exit the transaction after posting the goods receipt.







b) The default proposal is the number of the material document that youlast processed. Choose (Execute).

c) In the header data, choose the Document Info tab and then FIDocuments to branch to the accounting document.

The system issues the following message: No subsequent documentfound in Accounting

No accounting document was created during the goods receipt posting.It was specified in the purchase order that the goods receipt is to beposted as non-valuated.

3. Enter invoice

The vendor dispatched the relevant invoice with the second delivery. Postthe invoice. You can refer to the following graphic for the exact invoice data.










Reference RE-C2##

Amount 352,00

Tax amount 32,00



Hint: If you want to search for the PO using the F4 help, entervendor T-K500C## and then choose (Execute).




Do not leave the invoice entry transaction after you have posted theinvoice.

4. Display accounting document for invoice



1 T-K500C## H.A.G. Potsdam Gr.## 352,00 (-)



5 154000 Input tax 32,00




Do not leave the invoice document display after this task.

a) To display the invoice document, choose (Other Invoice Document).The system proposes the number of the invoice you last posted. Simplychoose Enter to confirm this number.

b) Choose Follow-on documents.

c) In the List of documents in Accounting dialog box, double-click theaccounting document number to display the accounting document.

Make a note of the postings in the table.

d) Choose (Back) to display the invoice document again.



Can you recognize from the purchase order history whether the goods receiptis valuated or non-valuated?

Which indicator in the purchase order controls that the goods receipt isnon-valuated?

a) To branch to the purchase order, double-click the PO number in theitem list of the invoice document.

b) Then choose the PO History tab page in the purchase order item details.

The non-valuated goods receipt can be recognized in the purchase orderhistory because the amount in local currency for the goods receipttransaction is 0 EUR.

c) Choose the Delivery tab page in the item detail data. The GRnon-valuated indicator is set. The goods receipt was thereforenon-valuated.



Lesson Summary

You should now be able to:• Explain the difference between a valuated and a non-valuated goods receipt• Explain the postings resulting from a non-valuated goods receipt during

invoice entry


TSCM50 Lesson: Blanket Purchase Order

Lesson: Blanket Purchase Order

Lesson OverviewThe subject of this lesson is a simplified procurement process for consumablematerials. This process involves the use of the blanket purchase order. Thisallows you to consciously dispense with the issue of individual release ordersand the recording of goods receipts to minimize the costs of procuring materials(such as C items).


• Explain the purpose of the item category in purchasing documents• Explain the special aspects of procuring materials using a blanket purchase

order• Create a blanket purchase order• Enter invoices with reference to a blanket purchase order with Logistics


Business ExampleYour company procures all its office supplies from one specific retailer. Since it isnot necessary to monitor the issue of release orders and the delivery of materialsexactly in the system, you test the blanket purchase order process.

Figure 127: Blanket Purchase Order – Overview



In addition to the browser-based applications (such as SAP SRM), the standardversion of SAP ERP Central Component offers you another possible option forhandling procurement transactions for consumable materials using a “lean”process.

This process shows you how to use the “blanket purchase order” by means ofan example.

Figure 128: Standard Procurement of Consumable Materials

In “standard” procurement of consumable materials, you must create at least onepurchase order for each procurement transaction. This purchase order is used asthe basis for invoice verification.

Often, goods receipts are also entered for the conventional purchase orders. Insome cases, preceding documents such as purchase requisitions or quotations exist.



Figure 129: Procurement Process with Blanket Purchase Order

You can create a purchase order that has a longer validity period (for example,one year) and an item-specific value limit. Using such a blanket purchase order, itis possible to procure different consumable materials or services, for which moredetailed individual processing (purchase order, goods receipt, invoice entry) isconsidered uneconomical. The materials or services are grouped under a headingor superordinate term (short text) and mapped in an item. Prices for the individualmaterials (such as 0.50 EUR/pc for a pencil, 2.00 EUR/pc for a folder and so on)are not recorded in the purchase order.

This special procurement process differs from the “standard” process mainly byvirtue of the fact that certain steps are deliberately omitted in the system. Althoughyou can use a purchase requisition as the document preceding the blanket purchaseorder, neither RFQs nor contracts may be created. In addition, goods receipts andperformed services are not entered in the system. You post incoming invoices withreference to your blanket purchase order.

A key advantage of the blanket purchase order is the reduction in processing costs.The cost saving is due to the following factors:

• Different materials and/or services are procured over a longer period with asingle PO item.

• It is not necessary to issue separate purchase orders for the individualprocurement transactions.

• There is no goods receipt or service entry process.



Figure 130: Invoice Entry for Blanket Purchase Order

When an invoice is entered with reference to a blanket purchase order, the systemchecks the following:

• Does the invoice lie within the validity period of the blanket purchase order?• Will the overall limit of the PO item be exceeded as a result of posting the

invoice?

It is possible to change the account assignment when entering the invoice. Youcan also switch from single to multiple account assignment. If you have assignedthe purchase order item to an unknown account, you must manually specify theaccount assignment data when entering the invoice.

Note: It is only possible to change the account assignment data ininvoice verification if such a change has been defined as permissiblein Customizing for the account assignment category. (Customizing→ Materials Management → Purchasing → Account Assignment →Maintain Account Assignment Categories)



Characteristics of Blanket Purchase OrdersThe most important characteristics of a blanket purchase order are:

• Order type FO (framework order)

– Validity period in the header of the purchase order (field selection)• Item category B (limit)

– Limit in the item– No material number– Account assignment category U (unknown) is allowed– No goods receipt or service entry

• If the account assignment was specified in the purchase order, this data isproposed in the invoices

• Additional or multiple account assignment possible in invoice verification• Check on validity period and limit in invoice verification

To be able to work with validity periods and limits in a purchase order, you mustuse the document type FO (framework order) and the item category B (limit). Inthe standard system, document type FO enables you to specify the validity periodat purchase order header data level and use the item category B for limit items.(Limit items are sometimes referred to as blanket items.)

Since you can only use a blanket order to procure consumable materials orservices, you must enter an account assignment for purchase order items with theitem category B. However, you need not specify the precise account assignmentwhen you create the blanket purchase order. Instead, you can use the accountassignment category U (unknown).

You cannot specify a material number in a purchase order item with Item categoryB. You have to describe the materials or services that are to be procured (such asoffice materials) using a short text. You also have to specify a material/servicegroup.

Item Category in PurchasingThe item category enables you to map different procurement processes.

Item categories are used in all purchasing documents. The document typedetermines which item categories are available for selection. You can use differentitem categories for the individual items of a purchasing document.



Figure 131: Item category

You can change the short description of the individual item categories inCustomizing for Materials Management under Purchasing → Define ExternalRepresentation of Item Categories. There you will also find the precise itemcategory controls (however, you cannot change these).

The item category specifies whether a material number, an account assignment, agoods receipt, and/or an invoice receipt are possible or required for an item.

Figure 132: Item Category – Control

Predefined item categories include the following:

Standard: Used for materials that are to be procured externally. (Material numberand account assignment possible, GR generally possible (required in the case ofstock material), IR possible.)



Limit: You procure consumable materials or services with a value limit. (Materialnumber not possible, account assignment required, GR not possible, IR required.)

Consignment: The vendor makes material available, which you then manage asconsignment stock. The material belongs to the vendor until it is withdrawn. Theplacement of an ordered consignment material in storage does not immediatelylead to the valuation of the material or the creation of a liability in relation tothe vendor. A liability only arises when material is withdrawn from the vendorconsignment store (non-valuated GR required, account assignment and IR notpossible).

Subcontracting: The finished product is ordered from a vendor. The componentsthat the vendor needs to manufacture the end product are recorded as 'materialto be provided' items.

Stock transport orders: The material is transferred from one plant to another.

Third-party order: The vendor is to deliver the ordered material directly to athird party (a customer, for example). You receive the invoice for the materialfrom the vendor.

Hint: For more detailed information on the topics of subcontracting,consignment, stock transport orders, and third-party orders, refer to theMaterials Management section of the SAP Library under InventoryManagement → Special Stocks and Special Forms of Procurement.



Exercise 15: Blanket Purchase Order

Exercise ObjectivesAfter completing this exercise, you will be able to:• Create blanket purchase orders for consumable materials• Enter invoices for blanket purchase orders

Business ExampleYou are testing the use of blanket purchase orders to simplify the procurement oflow-value consumable materials that are required at irregular intervals. You thenenter invoices relating to the blanket purchase orders.

Task: Processing of Blanket Purchase OrdersYour Purchasing department has reached an agreement with the office suppliescompany, Office 4U Gr.##, that plant 1000 (Hamburg plant) can procure officematerials by fax.

1. Create a blanket purchase order

Create a framework order for Office 4U Gr.##.

What is the number of the vendor master record for this company?

___________________________________________________

If necessary, specify your purchasing group T## (SCM500-##) andpurchasing organization 1000.

The validity period starts today and ends on Dec 31 next year.

Choose the item category for blanket purchase orders (=_____).

Since this purchase order is used to procure office supplies for differentcost centers, the account assignment category is not known at the time ofordering. Enter the relevant account assignment category (=______).

Enter office supplies as the short text and 006 (office supplies) as thematerial group.

You do not expect the value of the office supplies actually procured toexceed 5000 EUR. In addition, stipulate that the overall limit for invoiceverification purposes is to be 6000 EUR. What is the purpose of the entryin the Expected value field?

_____________________________________________________

_____________________________________________________




_____________________________________________________

When you have entered all the data, save your purchase order.

Purchase order number: _________________________

2. Enter an invoice for the blanket purchase order

The Office 4U Gr.## company sends you the invoice below. Enter the invoiceand specify the missing account assignment information.

Both invoice items are posted to G/L account 476000 (consumption of officesupplies). The information about the cost center and distribution is as per thevendor's invoice RE-D1##.

Hint: Choose the display variant (layout) Acct Assignment - CostCenter for the item overview. You can then branch to the accountassignment screen with the multiple account assignment switch.

Figure 133: Invoice RE-D1## for Blanket Purchase Order

When you have entered all the data, post the invoice.

Document number: ____________________________________





Display your blanket purchase order. What is the actual value of the purchaseorder item?

_________________________________________________________

Display the purchase order history. Select and display the invoice document.Go to the accounting document. Which G/L accounts were posted?

Account Short text Amount

4. Optional: Enter other invoices

Enter further invoices against your blanket purchase order. Choose aninvoice amount that causes the purchase order limit to be exceeded.

Were you able to post the invoice even if the limit was exceeded?



Solution 15: Blanket Purchase OrderTask: Processing of Blanket Purchase OrdersYour Purchasing department has reached an agreement with the office suppliescompany, Office 4U Gr.##, that plant 1000 (Hamburg plant) can procure officematerials by fax.

1. Create a blanket purchase order

Create a framework order for Office 4U Gr.##.

What is the number of the vendor master record for this company?

___________________________________________________

If necessary, specify your purchasing group T## (SCM500-##) andpurchasing organization 1000.

The validity period starts today and ends on Dec 31 next year.

Choose the item category for blanket purchase orders (=_____).

Since this purchase order is used to procure office supplies for differentcost centers, the account assignment category is not known at the time ofordering. Enter the relevant account assignment category (=______).

Enter office supplies as the short text and 006 (office supplies) as thematerial group.

You do not expect the value of the office supplies actually procured toexceed 5000 EUR. In addition, stipulate that the overall limit for invoiceverification purposes is to be 6000 EUR. What is the purpose of the entryin the Expected value field?

_____________________________________________________

_____________________________________________________

_____________________________________________________

When you have entered all the data, save your purchase order.

Purchase order number: _________________________





b) In the Order type dropdown list field, choose the Framework orderentry and enter vendor T-K500D##.

Hint: You can determine the number of the vendor masterrecord using F4 Help, for example. Search for your vendor byName. It is enough to search for Office*. Choose the vendorfor your group number.

c) Enter the following data in the purchase order header:

Additional Data tab

Validity Start <Today’s date>

Validity End <End of next year>

Org. Data tab

Purch. Org. 1000

Purch. Group T## (SCM500-##)

d) Enter the following data in the item overview:

Item 10

A (account assignment category) U (unknown)

I (item category) B (limit)

Short Text Office supplies

Material Group 006

Plant 1000


e) Enter the following data in the item details on the Limits tab page:

Limits tab page

Overall limit 6000

Expected value 5000

The expected value is the value that the item is not likely to exceed.Among other things, it serves as a criterion for a possible releaseprocedure. In addition (depending on the account assignment category)a commitment of this amount is created in CO. This value is alsoprinted in the purchase order.




f) Choose (Save) and make a note of the purchase order number.

2. Enter an invoice for the blanket purchase order

The Office 4U Gr.## company sends you the invoice below. Enter the invoiceand specify the missing account assignment information.

Both invoice items are posted to G/L account 476000 (consumption of officesupplies). The information about the cost center and distribution is as per thevendor's invoice RE-D1##.

Hint: Choose the display variant (layout) Acct Assignment - CostCenter for the item overview. You can then branch to the accountassignment screen with the multiple account assignment switch.

Figure 134: Invoice RE-D1## for Blanket Purchase Order

When you have entered all the data, post the invoice.




Document number: ____________________________________




Reference RE-D1##

Amount 550

Tax amount 50

Tax Code 1I (input tax (10%))

c) On the PO reference tab page, choose Purchase Order/SchedulingAgreement as the reference document category and enter your purchaseorder number.


e) Choose the entry Acct Ass - Cost Center Training in the list fieldLayout.

f) In the item line, choose (Multi Acc. Ass.) so you can enter theaccount assignment data.

g) Enter the following data:

Multiple Account Assignment for Item

Amount G/L Account Cost Center Tax Code

100 476000 T-L## 1I

400 476000 4100 1I

Caution: Ensure that the tax code is set to 1I (10 %) inthe second item. To do so, scroll to the right in the accountassignment list.

h) Choose Back to post the invoice.

i) Choose (Post) and note the number of the invoice document.





Display your blanket purchase order. What is the actual value of the purchaseorder item?

_________________________________________________________

Display the purchase order history. Select and display the invoice document.Go to the accounting document. Which G/L accounts were posted?

Account Short text Amount

T-K500D## Office 4U Gr.## 550,00 -

476000 Office supplies 100,00

476000 Office supplies 400,00

154000 Input tax 50,00

a) Choose Logistics → Materials Management → Purchasing →Purchase Order → Display (ME23N).

b) If your blanket purchase order is not displayed, choose (OtherPurchase Order). Enter the number of the blanket purchase order andchoose Other Document.

c) Choose the Limits tab page in the item details.

The actual value of the item is 500 EUR.

d) Choose the Purchase order history tab page in the item details.

e) Click on the number of the invoice to display the invoice.

f) Choose Follow-on documents and double-click the number of theaccounting document.

Make a note of the data in the table.

4. Optional: Enter other invoices

Enter further invoices against your blanket purchase order. Choose aninvoice amount that causes the purchase order limit to be exceeded.

Were you able to post the invoice even if the limit was exceeded?

a) Proceed as described in sub-step 2 (enter an invoice for the blanketpurchase order) and select suitable data (such as amount 6600 and tax600 EUR. It is sufficient to make an assignment to just one cost center(for example, T-L##).

You can still post the invoice even if the limit is exceeded. However,the system blocks it for payment due to price variance.



Lesson Summary

You should now be able to:• Explain the purpose of the item category in purchasing documents• Explain the special aspects of procuring materials using a blanket purchase




Unit Summary TSCM50

Unit SummaryYou should now be able to:• List the differences between the procurement of consumable materials and

that of stock materials• Explain the meaning of the account assignment category• Use transaction ME51N for purchase requisitions• Create a purchase requisition with items with single and multiple account

assignments• Request a material without a material master record• Create a purchase order with reference to a purchase requisition with account

assignment• Enter an order acknowledgement for a purchase order• Explain the difference between a valuated and a non-valuated goods receipt• Explain the postings resulting from a non-valuated goods receipt during

invoice entry• Explain the purpose of the item category in purchasing documents• Explain the special aspects of procuring materials using a blanket purchase





Test Your Knowledge

1. You post a goods receipt for a purchase order item with account assignment.Which accounts may be updated in accounting?Choose the correct answer(s).□ A Vendor account□ B Consumption account□ C Price difference account□ D GR/IR clearing account

2. You want to procure material for consumption. Which data must exist in thepurchase requisition?Choose the correct answer(s).□ A Material short text□ B Account assignment category□ C Material number□ D Account assignment data□ E G/L Account□ F Material group

3. What factor is used to determine that an account assignment category needs tobe specified in a purchase order for a material with a material master record?Choose the correct answer(s).□ A Material group□ B Industry sector□ C Material type□ D Field selection

4. In which documents can you use the account assignment category U(unknown)?Choose the correct answer(s).□ A RFQ□ B Purchase requisition□ C Purchase order□ D Material document



5. If you create a multiple account assignment in an item, you can choosebetween the following options for the distribution indicator.Choose the correct answer(s).□ A Quantity basis□ B Proportional□ C Percentage□ D Sequential

6. Which of the following statements applies for the internal requisition ofmaterial without a material master record?Choose the correct answer(s).□ A You do not enter a material description.□ B You do not enter a material number.□ C You must enter the unit of measure.□ D You must enter an order price.□ E You must always enter an account assignment category.□ F You may enter only the account assignment category Unknown.

7. When creating a purchase order with reference to a purchase requisition, notethe following: If there is no purchasing info record with a valid price for avendor and a material, then the valuation price is always proposed from thepurchase requisition as the order price.Determine whether this statement is true or false.□ True□ False

8. Which indicator must be set in the purchase order item so that the GR/IRclearing account is not posted to during invoice entry?Choose the correct answer(s).□ A Goods Receipt indicator: set /GR Non-Val. indicator: set□ B Goods Receipt indicator: set /GR Non-Val. indicator: not set□ C Goods Receipt indicator: not set /GR Non-Val. indicator: not set□ D Goods Receipt indicator: not set /GR Non-Val. indicator: set

9. You cannot enter a goods receipt or any services against a PO item withthe item category Limit (B).Determine whether this statement is true or false.□ True□ False



10. Which of the following do you enter when you create a blanket purchaseorder?Choose the correct answer(s).□ A Vendor□ B Material□ C Delivery date□ D Short text□ E Order price for material□ F Account assignment category□ G Item category B□ H Limited Validity indicator□ I Material group□ J Quantity and unit of measure□ K Plant



Answers

1. You post a goods receipt for a purchase order item with account assignment.Which accounts may be updated in accounting?

Answer: B, D

If the goods receipt is posted as valuated for a purchase order item withaccount assignment, a consumption account and the GR/IR clearing accountare updated in FI.

2. You want to procure material for consumption. Which data must exist in thepurchase requisition?

Answer: A, B, F

For A and C: You can procure materials with and without master records forconsumption. However, you must always specify a material short text.For B: The account assignment category determines that the material isprocured for consumption.For D and E: If you have selected account assignment category U (unknown),you do not need to specify any account assignment data or a G/L account.For F: In the case of materials with master records, the material group istransferred from the material master record. For materials without a masterrecord, you must specify the material group manually.

3. What factor is used to determine that an account assignment category needs tobe specified in a purchase order for a material with a material master record?

Answer: C

The material type determines whether or not inventory management for amaterial is to take place on a value basis. All materials that are not subject toinventory management on a value basis can only be procured with accountassignments.

4. In which documents can you use the account assignment category U(unknown)?

Answer: B, C

The RFQ does not contain the field for the account assignment category.You cannot specify an account assignment regardless of whether it is knowor unknown.



5. If you create a multiple account assignment in an item, you can choosebetween the following options for the distribution indicator.

Answer: A, C

"Proportional" and "Sequential" are options for the partial invoice indicatorand not for the distribution indicator.

6. Which of the following statements applies for the internal requisition ofmaterial without a material master record?

Answer: B, C, E

For A and B: There are no material numbers for materials without masterrecords; therefore, you must manually enter a short text that describes thematerial.For C: The unit of measure cannot be determined from the material masterrecord, so you must enter it manually.For D: Do not enter an order price in the purchase requisition, enter thevaluation price instead.For E and F: Items without a material master record must have accountassignment, but there is no restriction on the possible account assignmentcategories.

7. When creating a purchase order with reference to a purchase requisition, notethe following: If there is no purchasing info record with a valid price for avendor and a material, then the valuation price is always proposed from thepurchase requisition as the order price.

Answer: False

The valuation price from the purchase requisition is adopted in the purchaseorder as the order price only for items without a material master record.

8. Which indicator must be set in the purchase order item so that the GR/IRclearing account is not posted to during invoice entry?

Answer: A, C

The GR/IR clearing account is not posted in the invoice if no goods receipt isplanned or a non-valuated goods receipt is planned for the order item. Thissetting is not possible for D.



9. You cannot enter a goods receipt or any services against a PO item withthe item category Limit (B).

Answer: True

The item category Limit determines that no GR can be entered for a purchaseorder item.

10. Which of the following do you enter when you create a blanket purchaseorder?

Answer: A, D, F, G, I, K

When creating a blanket purchase order, you must enter the following:Order type framework order, vendor, validity period, account assignmentcategory (and, where relevant, additional account assignment data), itemcategory B, short text, material group, plant, limit (overall value, expectedvalue).


Unit 5Procurement of External Services

Unit OverviewThis unit provides an insight into the procurement of external services. The specialaspects of procuring external services are described on the basis of a simpleprocurement process, starting with the issue of a purchase order and ending withthe invoice verification phase. The unit discusses the service master record andservice conditions, as well as the entry and acceptance of the work actually done,which corresponds to the goods receipt phase in materials procurement.


• Name the most important master data used in the procurement of externalservices

• Describe and handle the basic procurement process for services.• Display a service master record and service conditions• Explain the structure of the purchase order item for services• Create a purchase order item for services• Create a service entry sheet referencing a purchase order• Add unplanned services during the service entry process• Accept a service entry sheet• Check an invoice for a service PO

Unit ContentsLesson: Service Master Record and Conditions... . . . . . . . . . . . . . . . . . . . . . . . . .354

Exercise 16: Master Data for External Services Management .. . . . . .359Lesson: Ordering Services ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .365

Exercise 17: Procurement of External Services... . . . . . . . . . . . . . . . . . . . . .369Lesson: Service Entry and Invoice Verification ... . . . . . . . . . . . . . . . . . . . . . . . . . .373

Procedure: Creating and Accepting a Service Entry Sheet.. . . . . . . . . .377Exercise 18: Service Entry and Invoice Verification ... . . . . . . . . . . . . . . . .381


Unit 5: Procurement of External Services TSCM50

Lesson: Service Master Record and Conditions

Lesson OverviewThis lesson deals with the process of procuring externally provided services. Italso introduces the master data for external services.


• Name the most important master data used in the procurement of externalservices

• Describe and handle the basic procurement process for services.• Display a service master record and service conditions

Business ExampleIn your company, maintenance work such as the replacement of defectivefluorescent tubes is carried out by an external service provider. You havemaintained service master records and special conditions for this process.

External Services in ProcurementThe following figure, “Process Flow of External Service Procurement,” shows allthe possible steps that can be involved in procuring external services.

Figure 135: Process of External Service Procurement


TSCM50 Lesson: Service Master Record and Conditions

Determination of requirements: A need for certain services may arise in adepartment of the company. It may involve a project (for example, the translationof software documentation) or maintenance work (for example, the outsourcing ofan industrial electrician).

Creation of service specifications: When a requirement is established, adocument is created in the system as the basis for the procurement process (thismay be a purchase requisition, for example). The document can contain a set ofservice specifications listing the necessary services in detail. However, in thisearly phase of the procurement process, you also have the option of doing withoutservice specifications entirely and considering only the unplanned services bysetting value limits.

Source determination to vendor selection: To be able to convert a requirementinto a purchase order, you must determine a suitable provider for the necessaryservices. There are a number of different ways in which the system can supportyou in finding potential sources of external services. The source determinationfunction is an instrument for analyzing and evaluating purchasing data that hasalready been entered in the system (in the form of service conditions or contracts,for example).

If services for which there has been no previous requirement (and thus for whichno source is currently recorded in the system) are requested, a bid invitationprocess can be carried out. You can replicate this bid invitation process usingthe RFQ/quotation facility for services.

Purchase order, purchase order monitoring: In addition to manual entry, youcan also create purchase orders with reference to purchase requisitions, RFQs,or contracts.

During the phase of actual service performance, the actual values for servicesperformed/work done are continuously updated in the underlying purchase order(or contract release order). You can therefore see at any time how far a certainprocurement project has progressed by referring to the PO history. If necessary,you can monitor the confirmations of work done for each individual service line.

Service entry and service acceptance: Once the services actually performedhave been recorded in a service entry sheet, they can be checked and acceptedby one or more responsible persons. You can separate the processes of serviceacceptance and service entry organizationally in order to maintain the dual controlprinciple. However, it is also possible to have service entry and acceptance carriedout by the same individual or department in your company.

Invoice verification and payment: At the end of the procurement process, acheck is carried out to determine whether the service provider's invoices havebeen drawn up correctly. The value from the accepted entry sheet is taken as thebasis for this. This value is compared with the invoice. The taxes shown in theinvoice are also checked. If the value from the accepted entry sheet is exceeded,the system issues a warning message. The checked and released invoices arethen paid automatically.



Service Master RecordThe service master record belongs to the master data and serves as a source of datathat can be used when you create service specifications. By using service masterrecords, you can reduce the amount of time needed for this activity, as well as theoccurrence of errors. This is because you need to enter the service specificationscompletely once only in the service master record.

Figure 136: Service Master Record

A service master record contains the following principal information for theunique description of an external service:

• Service number• Service category• Descriptive texts (short and long text)• Base unit of measure• Material group• Valuation class

Service master records can be used by different applications. Besides Purchasing(MM-PUR), Service Master Records are also used in the Project System (PS),Plant Maintenance (PM) and Customer Service (CS).



Figure 137: Service Master – Transaction AC03

The service master record transaction (AC03) is a single-screen transactionthat you can use to create, change, and display services. When you invoke thefunction, you are initially in display mode. You can choose a specific service with

Other Service or search for one in the overview. The overview is used in thesame way as the document overview in the purchase order (selection, layout,breakdown), and can also be shown/hidden in this transaction by choosing(Show/Hide Overview).

You can expand and collapse the data areas in the right-hand area of the screenby choosing (Open) and (Close). The first time you call up this screen, thedata areas Basic Data and Long Text are open. Each time you call it up afterthis, the screen settings and the data you selected or maintained before exitingthe function appear.

Service conditionsPrices for external services that are valid over a longer period can be recorded inthe system in the form of service conditions. The system applies these conditionsfor the purpose of price determiation in the purchasing document. You can enterfurther conditions in the purchasing document itself.



Figure 138: Service Conditions

You can define service master conditions at several levels in the system:

• At service level (“market price” or “own estimate”)• At the level of service, vendor, and purchasing organization• At the level of service, vendor, purchasing organization, and plant

Note: For more information on service conditions, refer to the SAPLibrary, application component External Services (MM-SRV).



Exercise 16: Master Data for ExternalServices Management

Exercise ObjectivesAfter completing this exercise, you will be able to:• Display service master records• List the conditions for service master records depending on a vendor

Business ExampleThe fluorescent tubes in your offices have to be replaced due to wear and tear. Anexternal service provider will be carrying out this work. Test the procurementprocess for external services.

Task: Service Master Record and Service ConditionsService master records exist in the system for some of the regular maintenancework involving replacement of worn-out fluorescent tubes on your company'spremises. Check this master data and the conditions for these services. You needto create a new master record in the system for cleaning the reflective surfaceof the lamps.

1. Display a service master record

Display the service master records T-LM1## (removal of fluorescent tubes)and T-LM2## (installation of fluorescent tubes).

Hint: Choose Other Service and then enter the service number.You can close the service overview using Hide Overview.

Is there a long text describing the service in more detail in each case?

What is the unit of measure for managing the services?

____________________________________________

2. Display service conditions

Have conditions been maintained with vendor T-K500E## (Home-ElectricGr.##) in both the aforementioned service master records for purchasingorganization 1000 (without a plant)? Note the prices of the service providerfor each service.

T-LM1## : ______________________________________

T-LM2##: ______________________________________




3. Create a service master record

When exchanging the fluorescent tubes, the reflective surfaces of the lampsneed to be cleaned too if they are very dirty. Create a new master record forthis service. Since the service type, unit of measure, material group andvaluation class for the new service match the values of the service T-LM2##,copy this service.

Change the number of the new service to T-LM3## and the short text toCleaning of reflective surfaces for lamp. The surfaces are to be cleanedwith a special, environmentally friendly cleaning agent. Note this in thelong text for the service.

4. Add conditions for the new service master record

You do not yet know the actual price charged by the service provider forcleaning the reflective surfaces. The approximate price for cleaning thelamps is EUR 3.00 for each lamp. Store this figure as your own estimate inthe system. For the time being, your own estimate is only valid until theend of the year.



Solution 16: Master Data for ExternalServices ManagementTask: Service Master Record and Service ConditionsService master records exist in the system for some of the regular maintenancework involving replacement of worn-out fluorescent tubes on your company'spremises. Check this master data and the conditions for these services. You needto create a new master record in the system for cleaning the reflective surfaceof the lamps.

1. Display a service master record

Display the service master records T-LM1## (removal of fluorescent tubes)and T-LM2## (installation of fluorescent tubes).

Hint: Choose Other Service and then enter the service number.You can close the service overview using Hide Overview.

Is there a long text describing the service in more detail in each case?

What is the unit of measure for managing the services?

____________________________________________

a) Choose Logistics → Materials Management → Service Master →Service → Service Master (AC03).

b) Choose Other Service and enter the service number T-LM1## orT-LM2##.

c) If the long text data area is closed, choose Long Txt to view thetext in question. A long text has been maintained for each of the twoservices.

d) Both services are managed in the base unit of measure “piece” (pc).

2. Display service conditions

Have conditions been maintained with vendor T-K500E## (Home-ElectricGr.##) in both the aforementioned service master records for purchasingorganization 1000 (without a plant)? Note the prices of the service providerfor each service.

T-LM1## : ______________________________________




T-LM2##: ______________________________________

a) Choose Logistics → Materials Management → Service Master →Service → Service Conditions → For Vendor Without Plant → Display(ML41).



Vendor T-K500E##

Service number <No input necessary>

c) Choose (Execute). The following services and prices are listed:

T-LM1## : 2.00 EUR/pc

T-LM2## : 4.50 EUR/pc

3. Create a service master record

When exchanging the fluorescent tubes, the reflective surfaces of the lampsneed to be cleaned too if they are very dirty. Create a new master record forthis service. Since the service type, unit of measure, material group andvaluation class for the new service match the values of the service T-LM2##,copy this service.

Change the number of the new service to T-LM3## and the short text toCleaning of reflective surfaces for lamp. The surfaces are to be cleanedwith a special, environmentally friendly cleaning agent. Note this in thelong text for the service.

a) Choose Logistics → Materials Management → Service Master →Service → Service Master (AC03).

b) Choose Other Service and enter the service number T-LM2##.

c) To copy the service master record, choose Copy.

d) Enter T-LM3## for the service number and Cleaning ofreflective surfaces for lamps as the short text.

e) Delete the long text from the template and enter withenvironmentally friendly cleaning agent, forexample, instead.

f) Choose (Save).

4. Add conditions for the new service master record




You do not yet know the actual price charged by the service provider forcleaning the reflective surfaces. The approximate price for cleaning thelamps is EUR 3.00 for each lamp. Store this figure as your own estimate inthe system. For the time being, your own estimate is only valid until theend of the year.

a) Choose Logistics → Materials Management → Service Master →Service → Service Conditions → For Service → Add (ML45).


Service T-LM3##

Amount 3,00

Unit EUR

Valid from <Today’s date>

Valid until <12/31. current year>

c) Choose (Save).



Lesson Summary

You should now be able to:• Name the most important master data used in the procurement of external

services• Describe and handle the basic procurement process for services.• Display a service master record and service conditions


TSCM50 Lesson: Ordering Services

Lesson: Ordering Services

Lesson OverviewIn this lesson, using a purchase order as an example, we will examine the specialfeatures of a service item in purchasing documents. Unlike an item for a material,for services you enter service specifications and limits for the item.


• Explain the structure of the purchase order item for services• Create a purchase order item for services

Business ExampleIn your company, many fluorescent tubes are damaged and must be replaced. Anexternal service provider will perform this maintenance work. As a buyer, youmust create a purchase order with the corresponding service specifications and alimit for unexpected additional work.

The figure “External Service Procurement: Purchase Order” shows a simpleprocurement process for services consisting of a purchase order, service entry andacceptance, and invoice entry. The process begins with the purchase order, wherethe individual services to be performed are summarized in a service specificationand forwarded to the service provider.



Figure 139: Service Procurement – Purchase Order

When procuring the material, you already have lots of information, such as thematerial to be procured and the quantity. When procuring the service, however, itis often the case that neither the exact service description nor the order quantityare clearly specified. For example, when a machine is undergoing maintenancework, you do not know whether the settings simply have to be adjusted or whetherparts have to be replaced.

Likewise, you might only be able to specify an estimate for the working hoursbecause you do not know exactly how much time it will take. By specifying alimit for unplanned services, you can control the costs for unexpected servicesand services that cannot be planned.



Figure 140: Purchase Order – Stock Material or Services

The work to be performed cannot normally be mapped in a single service masterrecord. If, during machine maintenance, wearing parts also need to be replaced,the total work includes shutdown, removal of the wearing parts, checking theparts, cleaning or replacing the wearing parts, installing the parts, and performinga function test. These individual services are consolidated in sets of servicespecifications.

Figure 141: Purchasing Document Structure



A service item must always be assigned to an account. Procurement for thewarehouse, which is possible for materials, does not exist in service procurement.However, you can use account assignment category U (unknown) in connectionwith the item category D (service) because the account assignment has sometimesnot been determined at the time of ordering.

When procuring the material, enter a material and the relevant data for each item.When procuring the service, the item contains only a short text to describe thegeneral procurement project. To list the individual services with a description,quantity specification, price, and other details, use the service specifications (SS).Maintain this at item detail level. You can summarize both services with masterrecords and services without master records in the service specifications.

Item category D (service) activates the service function and enables you to createa service specification and set value limits for unplanned services.

Figure 142: Service Specification in Purchasing Document

A service specification can consist of any number of service lines. For a betteroverview, you can use the SS outline to structure the services in the servicespecification into a hierarchy of outline levels, similar to a table of contents. Amaximum of four hierarchy levels is possible. You can change the numbers of thelevels and their short and long texts at any time. You can assign as many servicelines as you wish to each outline level.



Exercise 17: Procurement of ExternalServices

Exercise ObjectivesAfter completing this exercise, you will be able to:• Create a purchase order for external services, taking into account value limits

for unplanned services


Task: Purchase Order Handling for ServicesThe company Elektroblitz is responsible for replacing the fluorescent tubes in youroffice buildings. Enter a purchase order for this upcoming maintenance work.

1. Create a purchase order for the replacement of fluorescent tubes in plant1000 with vendor T-K500E##.

In the item overview, enter a relevant short text that provides a generaldescription of your service specifications.

Do not forget to select the appropriate item category (______) and thematerial group for services (007). The cost of replacing the fluorescenttubes is to be charged to cost center T-L##.

Maintain services T-LM1## and T-LM2## on the Services tab page in theitem detail. Both services are required in quantities of 100 pieces.

On the Limit tab, determine an overall limit of 200 EUR for unplannedservices. The expected value is also 200 EUR.

You want to use service-based invoice verification when entering theinvoice. Check, therefore, whether the corresponding indicator has beenset one the Invoice tab page.

Save your purchase order after you have entered all the data.

Purchase order number: _______________________________



Solution 17: Procurement of ExternalServicesTask: Purchase Order Handling for ServicesThe company Elektroblitz is responsible for replacing the fluorescent tubes in youroffice buildings. Enter a purchase order for this upcoming maintenance work.

1. Create a purchase order for the replacement of fluorescent tubes in plant1000 with vendor T-K500E##.

In the item overview, enter a relevant short text that provides a generaldescription of your service specifications.

Do not forget to select the appropriate item category (______) and thematerial group for services (007). The cost of replacing the fluorescenttubes is to be charged to cost center T-L##.

Maintain services T-LM1## and T-LM2## on the Services tab page in theitem detail. Both services are required in quantities of 100 pieces.

On the Limit tab, determine an overall limit of 200 EUR for unplannedservices. The expected value is also 200 EUR.

You want to use service-based invoice verification when entering theinvoice. Check, therefore, whether the corresponding indicator has beenset one the Invoice tab page.

Save your purchase order after you have entered all the data.

Purchase order number: _______________________________

a) Choose Logistics → Materials Management → Purchasing →Purchase Order → Create → Vendor/Supplying Plant Known (ME21N)

b) Enter vendor T-K500E##.

c) Enter the following data in the item overview:

Item 10

Account assignmentcategory

K (cost center)

Item category D (service)

Short text Replacement of fluorescenttubes

Material group 007




Plant 1000

d) In the item detail, enter the data for the services and limits:

Services tab page

Line 10

Service no. T-LM1##

Quantity 100

Cost center T-L##

Line 20

Service no. T-LM2##

Quantity 100

Cost center T-L##

Limits tab page

Overall limit 200

Expected value 200

Cost center T-L##

Invoice tab page

Service-based IV (set)

e) Save your purchase order and make a note of the purchase ordernumber.



Lesson Summary

You should now be able to:• Explain the structure of the purchase order item for services• Create a purchase order item for services


TSCM50 Lesson: Service Entry and Invoice Verification

Lesson: Service Entry and Invoice Verification

Lesson OverviewThis lesson deals with the entry and acceptance of services performed by externalservice providers. In the case of external services, these two steps replace thegoods receipt process that takes place in conjunction with goods deliveries.


• Create a service entry sheet referencing a purchase order• Add unplanned services during the service entry process• Accept a service entry sheet• Check an invoice for a service PO

Business ExampleThe service provider reports that he has completed the task of replacing spentfluorescent tubes. He also advises you that lamp ballasts had to be replaced too.You are responsible for checking these services have been performed and enteringthem in the system. You must also check the invoice.



Figure 143: Procurement of External Services – Entry of Services Performed,IR

In the process of procuring external services, the issue of the purchase order isfollowed not by the receipt of goods - as in the case of material procurement - butby the entry of the service actually performed (work actually done) in a serviceentry sheet. The service entry sheet is subsequently accepted and the incominginvoice entered.

Service Entry and Acceptance of Service PerformedServices that have been performed are recorded in service entry sheets. Whenentering services, you reference the purchase order. You can copy planned servicesdirectly from the purchase order to the service entry sheet. Unplanned services arenot described in detail, neither are their quantities and prices specified until thework actually done is recorded. The system checks that the unplanned services donot exceed the limit set in the purchase order. Postings are not made in FinancialAccounting when the service entry sheets are saved.



Figure 144: Service Entry and Acceptance

The relevant postings are not made in Financial and Cost Accounting until theservice entry sheets are accepted. Service entry sheets can be entered and acceptedin one step or two, depending on authorization.

You can set up release procedures for service entry sheets.

Figure 145: Entry of Services Performed – Transaction ML81N



In the service entry transaction ML81N, all data (header and service data) ismaintained on one screen (single-screen transaction).

When you call the function, you are initially in display mode. Enter the purchaseorder for which the service entry sheet is to be created by choosing OtherPurchase Order.

Note: If the purchase order is already displayed in the overview, all youhave to do is double-click on the document number to copy the data.

Then choose (Create Entry Sheet) to start the entry process. You can enter theservices manually in the service entry sheet, or by choosing Service Selectionfrom the purchase order or from a set of model service specifications. If youhave defined a limit in the purchase order, you can also enter unplanned servicesmanually, up to this limit. If necessary, you can print out service entry sheets.

You can also accept the services actually performed when creating an entry sheet,provided that separate acceptance is not required as part of a release strategy. Todo so, choose (Accept) before saving the service entry sheet. Service entrysheets can also be accepted collectively (transaction ML85).

By clicking (Tree On/Off), you can call up a list of the purchase orders forwhich services actually performed have recently been entered (in the left-handpart of the screen). You can also call up the associated service entry sheets. In thislist, you can double-click a service entry sheet to display, modify, or copy it.



Creating and Accepting a Service Entry Sheet

1. Choose Logistics → Materials Management → Service Entry Sheet →Maintain (ML81N).

2. Choose Other Purchase Order and enter the number of the purchase order.The relevant purchase order is shown preselected in the document overview.

If the PO is shown unselected in the document overview, select it and copythe data with a double-click.

Hint: Choose (Tree On/Off) to open or close the documentoverview.

3. To create a new service entry sheet, choose (Create Entry Sheet).

4. Enter a short description for the service entry sheet.

5. Enter the necessary data, such as an account assignment category (in the caseof account assignment unknown in the PO) or the external number.

6. If you wish to adopt services from the service specifications in the purchaseorder, choose Service Sel.. The system automatically proposes thepurchase order number for selection of the services. Confirm this with Enter.

7. To copy the desired services to the service entry sheet, select the service linesand choose Services. You are taken back to the service entry sheet.

8. After copying the relevant services, make any necessary changes (such ascorrecting the quantity or specifying the cost center).

9. If necessary, enter unplanned services.

10. Choose (Accept) to accept the entry sheet immediately.

11. Choose (Save) to accept the entry sheet as soon as you create it.

Invoice Entry and Purchase Order HistoryYou can only enter a service provider's invoice for a purchase order after theservice entry sheet has been accepted.



Figure 146: Invoice Verification for Entry Sheet

When entering the invoice, you can reference the purchase order or the serviceentry sheets. If you specify the purchase order as the reference, the systemproposes all the accepted service entry sheets and accepted services for thispurchase order.

The system compares the prices in the invoice with the prices from the serviceentry sheets. If there are no discrepancies, you can enter and post the invoice. Ifthe system finds any discrepancies, it blocks the invoice for payment.



Figure 147: Purchase Order History

In the purchase order history (PO history), all follow-on activities relating to a POitem are listed, that is, all services performed and entered (service entry sheet), allaccepted services (material document), and all invoices that have been entered.

External Services: Notes

• The various options available for managing external services in the SAP ERPComponent are discussed in detail in the two-day course SCM540.

• Further information on MM External Services Management (MM-SRV) isavailable in the Materials Management section of the SAP Library.



Exercise 18: Service Entry and InvoiceVerification

Exercise ObjectivesAfter completing this exercise, you will be able to:• Create and accept service entry sheets• Use Logistics Invoice Verification to post a vendor invoice for external

services


Task: Entry and Settlement of External ServicesThe Home-Electric company has been given the job of replacing the fluorescenttubes in your office building. You now receive a list of the actual servicesperformed on each floor of the building. After completion of the maintenancework, you receive the invoice.

1. Service entry sheet - 1st floor

Service provider T-K500E## sends you a service entry sheet for the 1stfloor in which he informs you of the work he has carried out in replacingthe fluorescent tubes.

Maintain the service entry sheet in the system and reference your purchaseorder in the process.

Hint: Choose Other Purchase Order in the service entrytransaction and enter your PO number.

Choose to create a new service entry sheet.

Enter the short text Service entry, 1st floor as a description of the serviceentry sheet. The number of the entry sheet used by the service provider is4700##. Enter this number in the External number field.

The service provider has carried out the following work:




Removed old fluorescent tubes 60 pieces at 2.00 EUR

Delivered and installed new fluorescent tubes 60 pieces at 4.50 EUR

Cleaned the reflective surfaces 20 pieces at 2.50 EUR

Replaced lamp ballasts 2 pieces at 35.00 EUR

Enter the services that were performed. If possible, use a service masterrecord to enter unplanned services too.

Hint: You can also copy the planned services from the purchaseorder. To copy the services from the purchase order, chooseService Sel.. Then select the two items and choose Services.Ensure that you modify the quantity by 60 pieces for each service.

Answer the following questions about unplanned services. Is there a servicemaster record? Does the system propose a price, and if so, why?

Cleaning thereflective surfaces

Replacement of lampballast

Service number

Proposed price

Price origin

Do not exit the service entry transaction after this step.

Service entry sheet number: ____________________________________________________

2. PO history after creating service entry sheet

Display the purchase order history from the service entry transaction. Checkwhether the service entry sheet is listed in the purchase order history.


3. Service acceptance - 1st floor

After you have checked the work performed by the service provider, acceptthe service entry sheet.


Acceptance document:_______________________________

4. PO history after acceptance of the service entry sheet




Display the PO history again. Check whether the acceptance document islisted in the purchase order history. Display the acceptance document too.What type of document is this?

____________________________________________________

5. Enter the vendor invoice

Enter the following invoice for your purchase order. Note that you can onlysettle services that have already been accepted. When you enter the invoice,make sure that you choose the tax code 1I (input tax 10%) for all the items.

Figure 148: Invoice RE-E1##

Invoice document number: ___________________________



Solution 18: Service Entry and InvoiceVerificationTask: Entry and Settlement of External ServicesThe Home-Electric company has been given the job of replacing the fluorescenttubes in your office building. You now receive a list of the actual servicesperformed on each floor of the building. After completion of the maintenancework, you receive the invoice.

1. Service entry sheet - 1st floor

Service provider T-K500E## sends you a service entry sheet for the 1stfloor in which he informs you of the work he has carried out in replacingthe fluorescent tubes.

Maintain the service entry sheet in the system and reference your purchaseorder in the process.

Hint: Choose Other Purchase Order in the service entrytransaction and enter your PO number.

Choose to create a new service entry sheet.

Enter the short text Service entry, 1st floor as a description of the serviceentry sheet. The number of the entry sheet used by the service provider is4700##. Enter this number in the External number field.

The service provider has carried out the following work:

Removed old fluorescent tubes 60 pieces at 2.00 EUR

Delivered and installed new fluorescent tubes 60 pieces at 4.50 EUR

Cleaned the reflective surfaces 20 pieces at 2.50 EUR

Replaced lamp ballasts 2 pieces at 35.00 EUR

Enter the services that were performed. If possible, use a service masterrecord to enter unplanned services too.

Hint: You can also copy the planned services from the purchaseorder. To copy the services from the purchase order, chooseService Sel.. Then select the two items and choose Services.Ensure that you modify the quantity by 60 pieces for each service.




Answer the following questions about unplanned services. Is there a servicemaster record? Does the system propose a price, and if so, why?

Cleaning thereflective surfaces

Replacement of lampballast

Service number T-LM3## <None>

Proposed price 3,00 <None>

Price origin Own estimate(condition forservice)

<None>


Service entry sheet number: ____________________________________________________

a) Choose Logistics → Materials Management → Service Entry Sheet →Maintain (ML81N).

b) Choose Other Purchase Order. Enter your PO number in the SelectPurchase Order/Entry Sheet dialog box and confirm your input withEnter.

Hint: If you do not know the number of your purchase order,choose the input help (F4 help) for the Purchase Order field andsearch for Purchasing Documents per Vendor T-K500E##.

c) To create a new entry sheet, choose (Create Entry Sheet).

d) Enter the following data and confirm your entries with Enter.

Short text Service entry sheet, 1stfloor

Basic Data tab

External number 4700##

Line 10

Service no. T-LM1##

Quantity 60

Line 20




Service no. T-LM2##

Quantity 60

Line 30

Service no. T-LM3##

Quantity 20

Gross price 2,50

Line 40

Short text Replacement of lamp ballast

Quantity 2

Unit of measure pc

Gross price 35

e) Choose (Save) and note the number of the service entry sheet.

2. PO history after creating service entry sheet

Display the purchase order history from the service entry transaction. Checkwhether the service entry sheet is listed in the purchase order history.


a) Choose Environment → Purchase Order History.

b) The service entry sheet is recorded in the purchase order history withthe short text Lerf.

3. Service acceptance - 1st floor

After you have checked the work performed by the service provider, acceptthe service entry sheet.


Acceptance document:_______________________________

a) Choose (Display - Change).

b) Choose (Accept) to accept the service entry sheet.

c) Choose (Save) and note the number of the acceptance document.




4. PO history after acceptance of the service entry sheet

Display the PO history again. Check whether the acceptance document islisted in the purchase order history. Display the acceptance document too.What type of document is this?

____________________________________________________

a) In the service entry transaction, choose Environment → PurchaseOrder History.

b) The acceptance document is recorded in the purchase order history.Since this is a material document, the document is recorded in thepurchase order history under the short text WE.

c) Double-click on the number of the material document. A separate lineappears in the material document for each service line in the serviceentry sheet. This is due to the service-related invoice verification forthe purchase order item. You will find the indicator for service-relatedinvoice verification in the purchase order item on the Invoice tab page.The indicator was transferred from the vendor master record.

Hint: Without service-related invoice verification, only oneitem with the total value of the service entry sheet is generatedin the acceptance document.

5. Enter the vendor invoice

Enter the following invoice for your purchase order. Note that you can onlysettle services that have already been accepted. When you enter the invoice,make sure that you choose the tax code 1I (input tax 10%) for all the items.




Figure 149: Invoice RE-E1##




Invoice document number: ___________________________



Basic Data tab

Invoice date <Current date>

Reference RE-E1##

Amount 561

Tax amount 51

PO Reference tab

Purch. order/sched.agmt

<Your PO number>

c) Check the proposed items. In total, the proposed quantity and amountvalues correspond to those in the vendor invoice.

d) Check the tax codes for the items and change these if necessary to 1I.




Lesson Summary

You should now be able to:• Create a service entry sheet referencing a purchase order• Add unplanned services during the service entry process• Accept a service entry sheet• Check an invoice for a service PO


TSCM50 Unit Summary

Unit SummaryYou should now be able to:• Name the most important master data used in the procurement of external

services• Describe and handle the basic procurement process for services.• Display a service master record and service conditions• Explain the structure of the purchase order item for services• Create a purchase order item for services• Create a service entry sheet referencing a purchase order• Add unplanned services during the service entry process• Accept a service entry sheet• Check an invoice for a service PO


Unit Summary TSCM50



Test Your Knowledge

1. Which of the following master data is relevant to the procurement of externalservices?Choose the correct answer(s).□ A Vendor master record□ B Material master record□ C Service master record□ D Purchasing info record□ E Bill of materials□ F Service conditions

2. The individual steps in the procurement of services are similar to those in theprocurement process for materials. Name the step or steps that are specific to(only take place in) the process of procuring external services.

3. When you enter vendor-specific conditions, you create a separate serviceinfo record for each service and vendor (comparable to the purchasing inforecord for material).Determine whether this statement is true or false.□ True□ False

4. When services are procured, the item has only a todescribe the procurement project. The individual services aresummarized in a service that can be maintained at

detail level.Fill in the blanks to complete the sentence.



5. Which of the following statements are correct?Choose the correct answer(s).□ A When procuring services, you can work with or without a service

master record.□ B The account assignment category unknown (U) is allowed only in

purchase orders with item category D (service).□ C You must specify a limit in a service item.□ D The service specification of a service item can be structured in a

maximum of four hierarchy levels.□ E You cannot specify just one limit in a service item. A service

specification with at least one service must exist.

6. When entering the service, you can also always enter unplanned services.Determine whether this statement is true or false.□ True□ False

7. Services that have been performed are recorded in. When entering services,

you the purchase order. Service entry sheets must beentered and .Fill in the blanks to complete the sentence.

8. When the service entry sheets are saved, the postings are made in FinancialAccounting. However, these postings are blocked and are not released untilthe service entry sheet is accepted.Determine whether this statement is true or false.□ True□ False



Answers

1. Which of the following master data is relevant to the procurement of externalservices?

Answer: A, C, F

For the procurement of external services, you need a vendor master recordfor the service provider. You can also use master records for services andservice conditions. Bills of material, purchasing info records, and materialmaster records are used for the procurement of materials.

2. The individual steps in the procurement of services are similar to those in theprocurement process for materials. Name the step or steps that are specific to(only take place in) the process of procuring external services.

Answer: The creation of a set of service specifications and the steps ofservice entry and acceptance are unique to external services procurement.

3. When you enter vendor-specific conditions, you create a separate serviceinfo record for each service and vendor (comparable to the purchasing inforecord for material).

Answer: False

Service conditions are entered for each vendor. You can enter conditions forseveral services for one vendor at the same time.

4. When services are procured, the item has only a short text to describe thegeneral procurement project. The individual services are summarized in aservice specification that can be maintained at item detail level.

Answer: short text, general, specification, item

5. Which of the following statements are correct?

Answer: A, D

For B: Account assignment category U is also allowed for item category B(Limit).For C and E: You can define limits for unplanned services but it is notrequired. You are also allowed to specify a single limit, but no services.



6. When entering the service, you can also always enter unplanned services.

Answer: False

Unplanned services can be entered only if a limit has been specified in thePO item and the value of the unplanned services does not exceed this limit.

7. Services that have been performed are recorded in service entry sheets.When entering services, you reference the purchase order. Service entrysheets must be entered and accepted.

Answer: service entry sheets, reference, accepted

8. When the service entry sheets are saved, the postings are made in FinancialAccounting. However, these postings are blocked and are not released untilthe service entry sheet is accepted.

Answer: False

No FI postings are made when a service entry sheet is saved. The data is onlyupdated in Financial Accounting when the service entry sheet is accepted.


Unit 6Reporting and Analysis Functions

Unit OverviewThis unit deals with reports and analyses that run at document level and thosethat run in the SAP Logistics Information System (LIS). In connection with listdisplays, the SAP List Viewer and ALV Grid Control are introduced together withtheir basic functions.

The second lesson provides information on the LIS. The LIS is an informationsystem in which data can be continuously updated on an aggregated basis andevaluated and analyzed with various reporting tools.


• Use standard reports and analyses in purchasing• Search for material documents using the material document list• Display a list of your manually created invoices• Name the most important functions of the SAP List Viewer and the SAP

Grid Control• Describe the basic features of the Logistics Information System• Perform standard analyses in the Logistics Information System

Unit ContentsLesson: Standard Reports.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .398

Exercise 19: List Displays ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .409Lesson: Logistics Information System (LIS).. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .416

Exercise 20: Logistics Information System ... . . . . . . . . . . . . . . . . . . . . . . . . . .425


Unit 6: Reporting and Analysis Functions TSCM50

Lesson: Standard Reports

Lesson OverviewThis lesson is intended to provide some insight into reports using SAP ERPCentral Component. It introduces you to the SAP List Viewer and the ALV GridControl, and reviews individual reports and analyses from the areas of purchasing,inventory management, and invoice verification.


• Use standard reports and analyses in purchasing• Search for material documents using the material document list• Display a list of your manually created invoices• Name the most important functions of the SAP List Viewer and the SAP

Grid Control

Business ExampleAs a buyer, you are responsible for monitoring your purchase orders. It istherefore necessary that you are able to analyze and evaluate POs according toa variety of criteria. For example, you need a list of all open POs in a certainperiod. You are testing to see which functions the SAP system provides to supportyou in this activity.

Reporting: GeneralIn a production operation, you generate a wide variety of documents includingpurchasing documents, material documents, invoice documents, and accountingdocuments. The documents are posted in the system and stored in database tables.Standard reports enable you to report on this document information.


TSCM50 Lesson: Standard Reports

Figure 150: Standard Reports

As well as analyzing documents, you can also run analyses of master data. Forexample, you can output a list of all purchasing info records for a material orvendor, or obtain an overview of the material master records for a certain materialtype.

SAP List Viewer and ALV Grid Control

Figure 151: SAP List Viewer and ALV Grid Control



The SAP List Viewer and the ALV Grid Control standardize and simplify thehandling of lists in SAP systems. There is a uniform user interface and list formatfor lists. In this way, redundant functions can be avoided. ALV Grid Control isused not only in list displays (such as the list of material documents), but also inother transactions (for example, purchase requisition).

Note that not all lists use the full range of SAP List Viewer functions. Some lists,on the other hand, offer special functions over and above the scope of the SAP ListViewer. Often you can change the appearance and content of the lists using thelayout (former known as display variant).

The key elements of the SAP List Viewer and the ALV Grid Control can besummarized as follows:

• Uniform design of all lists and tables• Cross-application, standardized functions with uniform icons• Simple creation and changing of layouts (display variants)

Note: For more information on the SAP List Viewer and the ALV GridControl, refer to the SAP Library under Getting Started - Using SAPSoftware → Working with Tools and Features → Working with Lists.

Figure 152: Functions of the SAP List Viewer / ALV Grid Control



The functions provided by the SAP List Viewer and the ALV Grid Control includethe following:

• Choose detail: This gives you further information about a selected line,including information that is not shown in the list.

• Set filter: With the filter function, you can only display those lines thatsatisfy certain criteria in one or more columns. To set a filter, select one ormore columns by clicking on the column header, and choose (Set filter).In the dialog box, enter the desired restrictions for the chosen columns. Todelete the filter criteria, choose Edit → Delete filter.

• Sort: Lists can be sorted in ascending or descending order. Select the columnwith the desired sort criterion and choose one of the sort functions or .

• Display total: Within a list, you can create totals from the data in one ormore selected columns. You can total both value and quantity columns.

• Display subtotals: If you have created a total for at least one column withina list, you can create additional subtotals. Subtotals can be generated for oneor more selected columns without value or quantity columns.

• Layout: You can change the appearance of your list with layouts (or displayvariants).

Note: The individual list determines whether you can work with alayout or display variant in the list.

Figure 153: Layout (Display Variant)

You can use layouts or change variants to change the appearance of many lists.You can then display additional fields from the column set or hide unwanted fieldsfrom the column selection. You can also arrange the fields in the order of yourchoice and generate totals. In addition, you can adjust the size of the columns.



You have the option of saving these changes as your own layout. You can usuallycreate your own variants on a multi-user or user-specific basis. SAP suppliesstandard layouts for some lists.

Note: The figure “Layout (Display Variant)” shows the Change Layoutdialog box for the detailed version of the list of material documents(MB51).

Selection VariantsIf you have to run reports or analyses with the same selection values at regularintervals, it is advisable to use variants. This saves input time and enables youto avoid input errors. You can define your own variants and also make use ofexisting ones.

To create a variant for a report, first enter the desired selection values on theinitial screen for the report. Then choose Goto → Variants → Save as Variant...or (Save as Variant). On the following screen, enter a Variant Name and aDescription of the variant, then choose (Save) again.

If you wish to use a variant when running a report or analysis, choose Goto →Variants → Get... or (Get Variant...) on the initial screen of the report. .

Reporting in PurchasingAs the employee responsible in purchasing, you wish to obtain an overview of theworking routines for your department from time to time. You want to know thefollowing, for example:

• Which purchase orders were created for a particular vendor over a certainperiod?

• For how many purchase orders have goods already been received? For whichpurchase orders are the relevant goods receipts still open?

• Do the goods and invoices received agree with the purchase order data?• Which purchase requisitions were created during the last month for materials

of a specific material group?• Which purchasing info records exist for a material?

In purchasing, there are various reporting and analysis functions that can help youto answer these questions. Basically, there are reporting and analysis functionsfor either master data or documents.

In addition to the list displays for documents and master data, the purchasingmenu also contains general analyses, the purchase order value analysis, andgoods receipt forecast.



Figure 154: Reporting in Purchasing

To run reports and analyses for a document category, you open the Purchasingmenu and choose the submenu of the purchasing document for which you wantto evaluate data. To analyze purchase orders, go to Logistics → MaterialsManagement → Purchasing → Purchase Order → List Displays or Logistics →Materials Management → Purchasing → Purchase Order → Reporting. Thisgives you a variety of reports and analyses to choose from (for example, byvendors, materials, material groups, and so on). The selection options are adjustedto suit the relevant purchasing document, which means that the lists can vary fromdocument category to document caregory.

Reports and analyses for the master data in purchasing can be found underLogistics → Materials Management → Purchasing → Master Data.

When you run a report or analysis, first consider which information you reallyneed. Use the selection criteria to narrow down your report to make the resultas clear and informative as possible. In purchasing, the selection parameterdetermines which purchasing documents are analyzed by the report. You cangenerate reports that select only open purchase orders, POs for which no invoicehas yet been received, or expired scheduling agreements, for example.



Figure 155: Scope of List and Selection Parameter

The scope of list parameter influences how your result list is displayed. Thisparameter determines which data is displayed for a selected document (which linesappear in your report). You can decide whether you want a list in short form orwhether the list should contain more information (lines for the open purchase orderquantity and value, or the validity period of outline agreements, for example).Furthermore, you can have the PO history displayed in additional lines in the list.

As of SAP R/3 Enterprise, the scope-of-list parameter determines whether or notthe list is outputted using the ALV Grid Control.

You can create your own selection and scope-of-list parameters in Customizingfor Materials Management under

• Purchasing → Reporting → Maintain Purchasing Lists → SelectionParameters → Define Selection Parameters

• Purchasing → Reporting → Maintain Purchasing Lists → Scope of List →Define Scope of List



For the scope-of-list parameter, you also specify in Customizing whether ALVGrid Control is to be used to output the list. Depending on the selection parameter,you can decide whether documents on hold are also to be selected.

Hint: For purchasing lists that do not use the scope of list parameter,you can use the user parameter ME_USE_GRID to ensure that the list isoutputted using the ALV Grid Control.

To do this, choose System → User profile → Own data. In the Parameterstab , make a new entry with the Parameter IDME_USE_GRID and theParameter Value X. Save your changes.

Reporting in Inventory ManagementThe reports and analyses in inventory management can be divided roughly intothree groups.

• Analyses of stock situation• Analyses of goods movements• Analyses that serve to indentify inconsistencies in stock data

Figure 156: Reporting in Inventory Management

If you want to have an overview of the posted goods movements, choose Logistics→ Materials Management → Inventory Management → Environment → ListDisplays. There you will find analyses of material and accounting documents



relating to goods movements. However, if you choose Logistics → MaterialsManagement → Inventory Management → Environment → Stock, you access thereports and analyses for stocks. Here is a list of some of the reports and analysesfrom both areas:

Document lists:

• Material documents (MB51)• Accounting documents for material (MR51)• Cancelled material documents (MBSM)• Reason for movement (MBGR)

Stock lists:

• Stock overview (MMBE)• Stock/requirements list (MD04)• Plant stock availability (MB53)• Warehouse stock (MB52)• Stock for posting date (MB5B)

You will find the analyses for determining inconsistencies in the InventoryManagement menu under Periodic Processing.

Reporting in Invoice Verification

Figure 157: Reporting in Invoice Verification



In Logistics Invoice Verification, there is a general analysis of invoice documents,the Invoice OverviewMIR6. You use this function to generate a list of invoices.You might need to do this to check which documents have been entered manuallyby a certain user or for a certain invoicing party over a specific period, for example.

Aside from invoices posted online, you can select invoices generated by a BAPI orby the process of evaluated receipt settlement (ERS), among others. The reportalso serves to select parked, held, or cancelled documents. From the list, you canbranch to the documents and, if possible, process them further.

The list of invoice documents displays the following information:

• Person who entered the invoice• Document date• Posting date• Number of invoice document• Number of associated accounting document• Status of invoice (for example, posted, parked, on hold)

Since SAP ERP 5.0, there is another report that you can use to display a list ofinvoice documents - Display List of Invoice DocumentsMIR5. In addition to theInvoice Overview you have extended selection criteria and display options here.You cannot perform changes to invoice documents in the list however.

A third analysis in invoice verification facilitates the selection and release ofinvoices that have been blocked for payment.



Exercise 19: List Displays

Exercise ObjectivesAfter completing this exercise, you will be able to:• Create list displays for various documents and transactions

Business ExampleTo optimize internal processes, you regularly create list displays to inform yourselfabout the status of your purchase orders, info records, and other documents in thesystem.

Task 1: List Displays for Purchase OrdersAs a buyer in plant 1000, you are checking the purchase orders issued over thepast 24 months. In the process, you are primarily interested in POs against whichno goods receipts have been entered.

1. Open goods receipts

Display a list of all POs for purchasing organization 1000 and plant 1000 forwhich no goods have yet been received. Select all POs with a document datewithin the last 24 months.

Choose the scope of list BEST_ALV, so that the list of selected purchaseorders is displayed with ALV Grid Control.

2. The list is sorted by vendor and purchasing document. However, you need alist sorted by vendor and material. Change the sort order and save this settingas a user-specific layout SCM500-## under the name Layout SCM500-##.

3. The number of the purchasing document should be displayed as the firstcolumn in the list. The Quantity still to be delivered and Value still to bedelivered for the individual items should be displayed directly after thematerial group. You also want to see the total value of the materials still tobe delivered in the list.

Change the order of the columns and create the desired total. Save thesechanges to your layout SCM500##.

Task 2: List of Material DocumentsIn your department, you have the task of monitoring the movements of certainmaterials. For this purpose, you regularly display the material documents postedfor these materials each week.

1. Goods movements entered




Generate a list of all material documents for the materials T-M500A##,T-M500B##, T-M500C##, and T-M500D## that were posted this week.

2. Display the detail list

Since you wish to work with a more flexible display, you switch from thehierarchical to the non-hierarchical display.

3. Released quality inspection stock

Determine for which materials stock in quality inspection was transferredto unrestricted-use stock this week. Remember to take into account anypossible reversals for this goods receipt.



Solution 19: List DisplaysTask 1: List Displays for Purchase OrdersAs a buyer in plant 1000, you are checking the purchase orders issued over thepast 24 months. In the process, you are primarily interested in POs against whichno goods receipts have been entered.

1. Open goods receipts

Display a list of all POs for purchasing organization 1000 and plant 1000 forwhich no goods have yet been received. Select all POs with a document datewithin the last 24 months.

Choose the scope of list BEST_ALV, so that the list of selected purchaseorders is displayed with ALV Grid Control.

a) Choose Logistics → Materials Management → Purchasing →Purchase Order → List Displays → By Vendor (ME2L).


Vendor <No entry>


Scope of list BEST_ALV

Selection parameters WE101

Purchasing group <No entry>

Plant 1000

Document date <today - 24 months> to<today>





2. The list is sorted by vendor and purchasing document. However, you need alist sorted by vendor and material. Change the sort order and save this settingas a user-specific layout SCM500-## under the name Layout SCM500-##.

a) Choose Settings → Layout → Change ....

b) Choose the Sort order tab.

c) Position the cursor on Purchasing Document in the left-hand windowarea (Sort Criteria) and choose (Remove sort criterion).

d) Position the cursor on Material in the right-hand window area (Columnset) and choose (Add sort criterion).

e) Choose (Save Layout).

f) Enter the following data on the Save as tab of the Save layout dialogbox:

Save layout SCM500-##

Name Layout SCM500-##

User-specific

Default setting <any>

g) Choose (Continue) to save the new layout.

h) The Change layout dialog box reappears. Choose (Transfer) todisplay the list with the new layout.

3. The number of the purchasing document should be displayed as the firstcolumn in the list. The Quantity still to be delivered and Value still to bedelivered for the individual items should be displayed directly after thematerial group. You also want to see the total value of the materials still tobe delivered in the list.




Change the order of the columns and create the desired total. Save thesechanges to your layout SCM500##.

a) Choose Settings → Layout → Change ....

b) Choose the Displayed Columns tab page.

c) Place the cursor on Purchasing Document in the right window area(Column Set), select the first entry Item in the left window area(Displayed Columns) and choose (Show Selected Fields).

d) Choose (Transfer).

e) Select the Still to be delivered (quantity) column and move the columnto the right of and next to the Material group column with drag anddrop.

Repeat the procedure for the Still to be delivered (value) column.

f) Select the Still to be delivered (value) column and choose (Total).

g) Choose (Save Layout). Select your layout SCM500-## and choose(Continue) to copy the proposed values to the layout.

h) Finally, confirm the message “Layout already exists!” with Yes.

Task 2: List of Material DocumentsIn your department, you have the task of monitoring the movements of certainmaterials. For this purpose, you regularly display the material documents postedfor these materials each week.

1. Goods movements entered




Generate a list of all material documents for the materials T-M500A##,T-M500B##, T-M500C##, and T-M500D## that were posted this week.

a) Choose Logistics → Materials Management → Inventory Management→ Environment → List Displays → Material Documents (MB51).

b) To restrict the selection to these four materials, choose (Multipleselection) on the right next to the material fields. In the MultipleSelection for Material dialog box, enter the four materials T-M500A##,T-M500B##, T-M500C##, and T-M500D##. Transfer this selectionby choosing (Copy).

Hint: If you want to select all materials with the materialnumber T-M500<any>##, you can also enter T-M500*## asthe selection value for the material on the initial screen.

c) As a restriction for the posting date, enter <today - 7 days> to<today>:

d) Choose (Execute).

2. Display the detail list

Since you wish to work with a more flexible display, you switch from thehierarchical to the non-hierarchical display.

a) Choose (Detail List).

3. Released quality inspection stock

Determine for which materials stock in quality inspection was transferredto unrestricted-use stock this week. Remember to take into account anypossible reversals for this goods receipt.

a) Select the Movement type column and choose (Set filter).

b) In the Define filter criteria dialog box, enter movement type 321 to322 and confirm your input with (Execute).

A transfer posting has occurred for material T-M500B## in plant 1200.



Lesson Summary

You should now be able to:• Use standard reports and analyses in purchasing• Search for material documents using the material document list• Display a list of your manually created invoices• Name the most important functions of the SAP List Viewer and the SAP

Grid Control



Lesson: Logistics Information System (LIS)

Lesson OverviewThis lesson takes a look at the concept of the SAP Logistics Information System(LIS). It introduces the basic structure of the LIS, explains the informationstructures involved in the data updating process, and gives you an overview ofthe analysis tools.


• Describe the basic features of the Logistics Information System• Perform standard analyses in the Logistics Information System

Business ExampleYou are head of the purchasing department and will shortly be negotiatingend-of-period volume rebates. At this point, you want to run an analysis to identifythe vendors with whom you achieved the highest business volumes in the last year.Therefore, you test whether the SAP system is capable of quickly providing youwith aggregate key figures on relevant business transactions.


TSCM50 Lesson: Logistics Information System (LIS)

Basic Structure and Concept of the LIS

Figure 158: SAP Logistics Information System (LIS)

SAP Logistics offers a range of application-related (modular) information systems.All have a standard interface and provide similar basic functions. At the same time,the modular structure also caters for special aspects in each information system.

The type of data retention is identical in all information systems within logistics.A number of special tools and working methods underscore the typical characterof a data warehouse in the LIS.

In Logistics, you can distinguish between the following information systems:

• Sales Information System (SIS)• Purchasing Information System (PURCHIS)• Inventory Controlling (INVCO)• Warehouse Management Information System (WMIS)• Shop Floor Information System (SFIS)• Quality Management Information System (QMIS)• Plant Maintenance Information System (PMIS)• Retail Information System (RIS)



Figure 159: Logistics Data Warehouse

The information systems of the LIS are continuously supplied with data fromthe operative applications (Sales and Distribution, Purchasing, Production,Plant Maintenance and so on). This level is also known as Online TransactionProcessing (OLTP). The data is derived from documents from SAP ERP systemor external/non-SAP systems.

Above the OLTP level is the Logistics Data Warehouse. For each businesstransaction within the operative application, important information is stored inaggregated form in separate databases of the Logistics Data Warehouse parallelto the OLTP level. In the process, a quantitative reduction in the data volumetakes place as a result of the period-wise updating, and then the information isqualitatively reduced to the statistically relevant portions.

The databases of the Logistics Data Warehouse are known as informationstructures. They constitute the data basis of the LIS.

The evaluation of the data is carried out at Online Analytical Processing (OLAP)level. A variety of reporting and analysis tools are available at this level.



Information Structures

Figure 160: Information Structures

The individual physical tables of the Logistics Data Warehouse are termedinformation structures. Information structures (or info structures for short) havea typical form containing three types of information:

• Characteristics• Periodicity (time base)• Key figures

Under characteristics, we understand information that is suitable for aggregation.Thus, the analysis objects of the real business world are included in info structuresas classification keys in the form of characteristics. Statistical information oncharacteristics, such as vendor, customer, or material is updated in aggregatedform. Organizational elements such as purchasing group, material group, valuationarea, plant, or storage location are also used as characteristics in info structures.

The time base affords another option for aggregation. The data is cumulated notonly per characteristic, but also per period. Possible periods are day, week,month, and posting period.

Key figures are updated for each characteristic combination and periodicity. Keyfigures are quantitative values providing information on measurable facts. Keyfigures can be derived for each classification key by cumulation (for example,purchase or production order quantity). However, key figures can also be simplecounters, such as the “number of deliveries” or the “number of purchase orders”.



The standard SAP ERP system contains various info structures for differentapplication areas. With the aid of easy-to-use tools, you can group characteristicsand key figures into individual info structures to meet your own specificrequirements. Separate update programs can be used to supply these infostructures with data.

Figure 161: Info Structures – Data Updating

When a document is posted, the key figures of the info structures are updated forthe relevant characteristic combinations.

The following explanations are based on the example shown in the figure “InfoStructures: Data Updating”. It involves the ordering of two materials, M-01 andM-02, from vendor 1000 in May 2010.

If no data record yet exists in the information structure for the characteristiccombination in the document, a new data record is generated and the characteristicsand key figures are entered.

In the example, this applies to the PO item for material M-01. The systemgenerates a new data record in the info structure with the following information:

• Characteristics combination: Vendor 1000, material M-01• Period: Month 05.2010• Key figure: Purchase order value 11000

If the characteristic combination already exists in the info structure, the systemincreases or reduces the key figures in the data line by the relevant values.



In the example, this applies to the PO item for material M-02. The system updatesthe relevant data record with the following information:

• Characteristics combination: Vendor 1000, material M-02• Period: Month 05.2010• Key figure: 20000 (old order value) + 10000 (document order value) =

30000 (new order value)

Figure 162: Info Structures – Evaluation

In the various analyses, lists can be created for all possible characteristiccombinations on the basis of data in the info structures.

Functions of the LIS - OverviewThe reporting tools available to you at the OLAP level of the LIS include thefollowing:

• Standard analyses• Flexible analyses• Early warning system



Figure 163: Reporting in the LIS

The standard analyses in the LIS provide comprehensive data evaluation optionsbased on the data in the standard information structures. Standard analyses providea multitude of functions to facilitate a detailed and targeted evaluation of the data.In each standard analysis, you can use various selection options to define the scopeof the data to be evaluated. The selection of key figures to be evaluated can beeither preset or made interactively during the analysis.

You can use the Early Warning System (EWS) to search for unusual patterns.This enables you to react in time to previously defined exception situations andcorrect them.

With the aid of flexible analyses, you can compile and aggregate key figures onan individual basis. In this connection, the possibility of structuring the layout ofyour report to meet your own specific requirements is particularly useful. Forreports, you can also define key figures whose content is derived from existingkey figures by calculation formulas. You can multiply key figures or calculate thequotient of two key figures, for example. The data in the list can be shown inthe form of a graphic.

The Logistics Data Warehouse is open and therefore allows you to run analysesusing external programs, such as MS-EXCEL.

Standard Analyses – Examples of FunctionsThe data basis for a standard analysis is established by specification of the objectto be analyzed (for example, purchasing group, vendor, or material group) and byselection. You can then display this dataset structured in different ways. You canalso store the selected data of a standard analysis for later analyses.



Various functions are available when performing standard analyses. Some ofthese are included in the following list:

• Drilldown function• Choose key figures and change their order• Sort list• Create ranking sequence• ABC analysis

In standard analyses, a fundamental distinction is made between the basic list anda drilldown list. The basic list gives you an overview of the characteristic valuesfor the key figures in accordance with the previously chosen selection criteria.

With the aid of the drilldown function, you can vary the depth of information.That is, you can display the data that appears in a list in greater detail with regardto certain criteria. You can either determine the order in which the information isbroken down yourself, or follow a predefined analysis path, the standard drilldown.

Figure 164: Reporting in Standard Analyses

For all list levels, you can perform a number of further functions, suchas cumulative frequency curve, correlation, ABC analysis, classification,segmentation, and ranking lists. All results can be presented in the form ofgraphics. Moreover, you can display the complete master record and documentinformation using the standard transactions of the application from within thevarious breakdown levels.



Exercise 20: Logistics Information System

Exercise ObjectivesAfter completing this exercise, you will be able to:• Run a standard analysis in the LIS• Interpret aggregated information from standard analyses

Business ExampleAs head of the purchasing department, you wish to gain an overview of theactivities of your buyers. You are particularly interested in the total value of thepurchase orders issued by the individual buyers.

As an exception, you also need an overview of the stock situation at individualstorage locations, because there has recently been a spate of incorrect postingsdue to wrong storage location data in purchase orders.

For both analyses, you use standard reports from the LIS, since you do not wishto evaluate the data at document level.

Task 1: Analyze purchasing values for purchasinggroupsYou wish to use the Purchasing Information System to determine a standardanalysis of the procurement volume of several purchasing groups for purchasingorganization 1000.

1. Standard analysis for purchasing group

Invoke the standard analysis for purchasing groups T00 to T30 for theprocurement transactions of purchasing organization 1000. Limit the periodto be analyzed to the current and previous month. Select EUR as the analysiscurrency.

2. Change the characteristic display

In addition to the name of the purchasing group, you wish to show the keyfor this characteristic. Choose the relevant characteristic display.

3. Add key figures

You need information about the number of purchase order items and thenumber of deliveries. Add these two key figures to the basic list. Make anote of the total order value, the total number of PO items, the number ofdeliveries, and the amount already invoiced for your purchasing group T##.




Purchase order value

Invoice amount

PO items

Deliveries

4. Standard drilldownWhat are the steps in the standard drilldown in the purchasing group analysis?

5. Display vendors for a purchasing group

To which vendors have you issued purchase orders for your purchasinggroup T##?

6. Determine the top 5 purchasing groups

Which purchasing groups had the five highest purchase order values overthe analysis period?

7. Perform an ABC analysis

Determine the most important vendors with regard to order value forpurchasing organization 1000 and purchasing groups T01 to T18. To do so,perform an ABC analysis for the key figure “purchase order value”. Asanalysis strategy, choose the percentage total of the purchase order value.

The size of segment A is 70 %, segment B 20 %, and segment C 10 %. Takea look at the complete list for the ABC analysis of the purchase order value.Which vendor has achieved the highest purchase order value?

Vendor: ________________________________

Hint: Before you perform the ABC analysis, make sure you arein the basic list. Then switch from the basic list to the drilldownby vendor.

8. Display the selection log

To understand the result of your analysis, it is important to know the selectioncriteria used for it. You should therefore take a look at the selection log forthe purchasing group analysis. What is the key and description of the infostructure for this analysis?




Info structure: _______________________________

Task 2: Analysis of Storage LocationYou wish to use Inventory Controlling to analyze your storage location stocks andtransfer any materials that do not belong there to another location. Check whichstocks are located in storage location 0001 of plant 1000.

1. Standard analysis of storage location

Call up the standard analysis for storage location 0001 of plant 1000 for theperiod current month - 12 months up to and including the current month.

2. Drilldown by material group

Choose drilldown by material groups. Display the receipt quantity permaterial group as a graphic.

3. Sort the material groups in descending order according to quantity received.Then expand the material group with the largest quantity received to showindividual months and display the relevant materials for the month in whichthe largest quantity was received.

Hint: Close the graphic before working on this task.



Solution 20: Logistics Information SystemTask 1: Analyze purchasing values for purchasinggroupsYou wish to use the Purchasing Information System to determine a standardanalysis of the procurement volume of several purchasing groups for purchasingorganization 1000.

1. Standard analysis for purchasing group

Invoke the standard analysis for purchasing groups T00 to T30 for theprocurement transactions of purchasing organization 1000. Limit the periodto be analyzed to the current and previous month. Select EUR as the analysiscurrency.

a) Choose Logistics → Logistics Controlling → Purchasing InformationSystem → Standard Analyses → Purchasing Group (MCE1).

b) Enter the following values on the selection screen:

Purch. organization 1000

Purchasing group T01 to T30

Period to analyze <Last month> to <Currentmonth>


The basic list of the purchasing group analysis is displayed accordingto your selection values.

2. Change the characteristic display

In addition to the name of the purchasing group, you wish to show the keyfor this characteristic. Choose the relevant characteristic display.

a) Choose Settings → Characteristic display → Key and description.

If the column width is insufficient, you can increase it bydouble-clicking on the column header and entering a higher value forthe width.

3. Add key figures




You need information about the number of purchase order items and thenumber of deliveries. Add these two key figures to the basic list. Make anote of the total order value, the total number of PO items, the number ofdeliveries, and the amount already invoiced for your purchasing group T##.

Purchase order value

Invoice amount

PO items

Deliveries

a) Select Edit → Choose key figures... . The Choose key figures screenappears.

b) In the pool, select the key figures PO items and Delieveries andchoose (Choose). Confirm your choice with (Continue).

The PO items and Deliveries columns are additionally displayed inthe basic list.

4. Standard drilldown

What are the steps in the standard drilldown in the purchasing group analysis?

Answer: Choose Extras → Display standard drilldown. The standarddrilldown follows the sequence purchasing group – vendor – month.

5. Display vendors for a purchasing group

To which vendors have you issued purchase orders for your purchasinggroup T##?

a) Select purchasing group T## SCM500-## and choose View → DrillDown by → Vendor.

Alternatively, you can double-click on the purchasing group and thenfollow the standard drilldown.

6. Determine the top 5 purchasing groups




Which purchasing groups had the five highest purchase order values overthe analysis period?

a) Choose View → Basic List to return to the basic list of the analysis.

b) Mark the PO Value column and choose View → Top N... . Enter 5 asthe number and confirm your entry with Enter.

7. Perform an ABC analysis

Determine the most important vendors with regard to order value forpurchasing organization 1000 and purchasing groups T01 to T18. To do so,perform an ABC analysis for the key figure “purchase order value”. Asanalysis strategy, choose the percentage total of the purchase order value.

The size of segment A is 70 %, segment B 20 %, and segment C 10 %. Takea look at the complete list for the ABC analysis of the purchase order value.Which vendor has achieved the highest purchase order value?

Vendor: ________________________________

Hint: Before you perform the ABC analysis, make sure you arein the basic list. Then switch from the basic list to the drilldownby vendor.

a) Choose View → Basic List to return to the basic list of the analysis.

b) Choose View → Switch drilldown... .

c) Choose the Vendor in the Switch Drilldown dialog box.

Now all vendors are displayed in the list.

d) Position the cursor on the PO value column and choose Edit → ABCAnalysis... .

e) Choose the analysis Total PO Value (%) and confirm your choice withEnter.

f) Adopt the suggested segment sizes.

g) In the graphic displayed, choose the Total list button to show thecomplete list of the ABC analysis.

8. Display the selection log




To understand the result of your analysis, it is important to know the selectioncriteria used for it. You should therefore take a look at the selection log forthe purchasing group analysis. What is the key and description of the infostructure for this analysis?

Info structure: _______________________________

a) Choose (Exit), to exit the list for the ABC analysis and to displaythe original list..

b) Then choose Extras → Selection Log... . A dialog box with theselection values appears.

The info structure is S011 – purchasing groups

Task 2: Analysis of Storage LocationYou wish to use Inventory Controlling to analyze your storage location stocks andtransfer any materials that do not belong there to another location. Check whichstocks are located in storage location 0001 of plant 1000.

1. Standard analysis of storage location

Call up the standard analysis for storage location 0001 of plant 1000 for theperiod current month - 12 months up to and including the current month.

a) Choose Logistics → Logistics Controlling → Inventory Controlling →Standard Analyses → Storage Location (MCBC).

b) Enter the following values on the selection screen:

Plant 1000

Storage location 0001

Period to analyze <Current month - 12months> to <Current month>


The basic list of the storage location analysis is displayed accordingto your selection values.

2. Drilldown by material group




Choose drilldown by material groups. Display the receipt quantity permaterial group as a graphic.

a) Choose View → Switch drilldown... .

b) Choose the Material Group in the Switch drilldown dialog box.

Now material groups are displayed in the list.

c) Choose Goto → Graphic... .

d) In the Graphic: Choose Key Figures dialog box select the key figureVal. stock receipts. Confirm your input with Enter.

3. Sort the material groups in descending order according to quantity received.Then expand the material group with the largest quantity received to showindividual months and display the relevant materials for the month in whichthe largest quantity was received.

Hint: Close the graphic before working on this task.

a) Position the cursor on the Receipt Quantity column and choose(Sort in Descending Order).

b) Position the cursor on the first entry (= the materials group with thelargest receipt quantity) and choose View → Breakdown by → Month.

c) Position the cursor on the Receipt Quantity column and choose(Sort in Descending Order).

d) Position the cursor on the first entry (= the month with the largestreceipt quantity) and choose View → Breakdown by → Material.



Lesson Summary

You should now be able to:• Describe the basic features of the Logistics Information System• Perform standard analyses in the Logistics Information System

Related InformationFor more information on the LIS, refer to the SAP Library. (SAP ERP CentralComponent → Logistics → Logistics General (LO) → Logistics InformationSystem (LO-LIS).


Unit Summary TSCM50

Unit SummaryYou should now be able to:• Use standard reports and analyses in purchasing• Search for material documents using the material document list• Display a list of your manually created invoices• Name the most important functions of the SAP List Viewer and the SAP

Grid Control• Describe the basic features of the Logistics Information System• Perform standard analyses in the Logistics Information System



Test Your Knowledge

1. What are the names of the two SAP tools for presenting lists? Name somefunctions of these tools.

2. The scope-of-list parameter determines which purchasing documents areanalyzed by the report.Determine whether this statement is true or false.□ True□ False

3. List some analyses of stocks (inventories) and documents within inventorymanagement.

4. The invoice overview enables you to display a list of invoices. Whenselecting documents, you can restrict the volume of data with the data entrytype. Which of the following data entry types are possible?Choose the correct answer(s).□ A Evaluated receipt settlement□ B Online entry□ C Blocked□ D Parked□ E Partially entered□ F Delivery costs only□ G EDI

5. What are the three types of information that an info structure contains?



6. In a standard analysis, you can perform an ABC analysis.Determine whether this statement is true or false.□ True□ False



Answers

1. What are the names of the two SAP tools for presenting lists? Name somefunctions of these tools.

Answer: SAP List Viewer and ALV Grid ControlFunctions provided by these tools include, sorting, totalling, subtotals,filtering, and layout.

2. The scope-of-list parameter determines which purchasing documents areanalyzed by the report.

Answer: False

The selection parameter determines which purchasing documents areanalyzed. The scope-of-list parameter determines which data is outputted inthe list for the selected documents.

3. List some analyses of stocks (inventories) and documents within inventorymanagement.

Answer: Stock overview, stock/requirements list, storage location stock, listof material documents, cancelled material documents

4. The invoice overview enables you to display a list of invoices. Whenselecting documents, you can restrict the volume of data with the data entrytype. Which of the following data entry types are possible?

Answer: A, B, D, G

The following data entry types are possible: Background, invoices postedonline (manual), EDI, BAPI, ERS (automatic GR settlement), invoicingplan, cancellation/reversal, held/parked.

5. What are the three types of information that an info structure contains?

Answer: Characteristics, period, and key figures

6. In a standard analysis, you can perform an ABC analysis.

Answer: True

To do so, choose Edit → ABC Analysis ... in the analysis.


Unit 7Basics of Consumption-Based

Planning

Unit OverviewThis unit provides an overview of the complete material requirements planningprocess. You will learn about the basic prerequisites that you need to useconsumption-based planning in your company. The MRP data in the materialmaster record and the material master maintenance are explained here. The mostimportant differences between consumption-based and material requirementsplanning are discussed. You will gain a brief insight into the different MRPprocedures of consumption-based planning. The manual reorder point planningprocedure is covered in detail in this unit.


• Describe the overall process of MRP• Name the planning levels in consumption-based planning• Describe the prerequisites for executing consumption-based planning.• Differentiate between consumption-based planning and material

requirements planning (MRP)• Name the MRP procedures of consumption-based planning• Define MRP types in the system• Create material master records and explain the MRP data• Describe the functions of a MRP profile and create own MRP profiles• Explain the meaning of the material status• Explain the principle of reorder point planning and its process• Describe the meaning of the reorder point and safety stock• Comprehend net requirements calculation for materials planned with reorder

point planning• Explain how materials planned with reorder point planning are scheduled.


Unit 7: Basics of Consumption-Based Planning TSCM50

Unit ContentsLesson: Overview of Material Requirements Planning ... . . . . . . . . . . . . . . . . .441Lesson: Overview of MRP Procedures ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .447Lesson: Material Master Record ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .454

Exercise 21: Material Master Record Maintenance ... . . . . . . . . . . . . . . . .459Lesson: Reorder Point Planning ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .470

Exercise 22: Reorder Point Planning ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .475


TSCM50 Lesson: Overview of Material Requirements Planning

Lesson: Overview of Material Requirements Planning

Lesson OverviewIn this lesson, you will gain an overview of the overall process of materialrequirements planning and learn about the basic prerequisites so that you can useconsumption-based planning in your company. You will also learn about thepossible planning levels of consumption-based planning in the SAP system.


• Describe the overall process of MRP• Name the planning levels in consumption-based planning• Describe the prerequisites for executing consumption-based planning.

Business ExampleIDES Ltd wants to use material requirements planning to optimize its logisticalprocesses. First, check whether consumption-based planning is to be used andwhich settings therefore need to be made.

Overview of Material Requirements PlanningThe main function of material requirements planning is to ensure materialavailability, that is, to procure the requirement quantities for in-house productionand sale on schedule. MRP helps monitor the stocks and automatically generatesprocurement proposals for Purchasing and Production. This goal is achieved byusing different MRP methods that, in turn, include different procedures.



Figure 165: Overall Procedure

MRP supports and helps the MRP controller in the task areas. These tasksinclude determining type, quantity and time of the requirement, and schedulingcorresponding procurement elements. The automatic planning run for MRPdetermines shortage situations and generates the corresponding procurementelements. Possible procurement elements of MRP are planned orders, purchaserequisitions and scheduling agreement schedule lines. The planned orderand purchase requisition are internal planning elements that can be changed,rescheduled or deleted at almost any time.

In in-house production, the system creates planned orders for planning productionquantities. When planning has finished, the system converts the planned ordersinto production orders. The system then converts the dependent requirements inthe planned order into reservations in the production order.

In external procurement, the system either creates a planned order or a purchaserequisition for direct planning of external procurement quantities. Whetherpurchase requisitions are created for direct planning, or planned orders are createdfirst, you can use the creation indicator for purchase requisitions/MRP groups inthe material master record on the initial screen of the planning run. When planninghas finished, the planned order must be converted to a purchase requisition, whichis subsequently converted to a purchase order. The advantage of creating a plannedorder first is the additional procurement proposal check that is executed by theMRP controllers. Purchasing can only order the material when the MRP controllerhas checked the planned order and converted it into a purchase requisition.Otherwise, the procurement proposal is immediately available for Purchasing.

If a scheduling agreement exists for a material and it is indicated as MRP-relevantin the source list, it is also possible to create scheduling agreement schedule linesdirectly during the requirements planning run. Unlike the planned order and



purchase requisition, scheduling agreement schedule lines are fixed, mandatoryelements; in the broader sense, they belong to the procurement proposals. Thecreation indicator for scheduling agreement schedule lines in the initial screen ofthe planning run, or the plant parameters or MRP groups control whether or notdirect scheduling agreement schedule lines are created.

Note: The procurement types that are permitted are defined inCustomizing for Material Types. You can decide whether in-houseproduction only, external procurement only, or both are possible.

Planning Levels of Consumption-Based PlanningRequirements planning takes place at plant level. In other words, the entirestock that exists in the plant is considered in planning. However, the stocks ofindividual storage locations can be excluded from MRP or planned independently.These stocks are then not included in MRP at plant level. You can also executerequirements planning for individual MRP areas. You can define the MRP areasyourself. This means that several storage locations can be grouped together forone MRP area and that requirements planning can be executed separately fromthe plant for these MRP areas. MRP areas enable a differentiation of materialrequirements planning within a plant. (MRP areas include the function of storagelocations that are planned separately for materials requirements.)

Figure 166: Planning Levels

MRP areas are optional. You can carry out material requirements planning withoutusing MRP areas.



There are three different types of MRP areas:

1. Plant MRP areas (obligatory) that are automatically created by activatingplanning with MRP areas. Their numbers match the number of the plant. Ifno more MRP areas are defined, the plant MRP area covers the entire plant.

2. Storage location MRP areas that are defined by the storage locations assignedto them.

3. Subcontractor MRP areas that provide planning of the requirement of thematerial provided for a subcontractor and are defined by the assignmentof this subcontractor.Note: Many settings for controlling materials planning can be madeseparately for each plant or for each MRP area. The actual planningprocess, however, is exactly the same.

Prerequisites for Consumption-Based PlanningTo be able to use consumption-based planning at all, you need to make certainsettings.

Figure 167: Prerequisites for Materials Planning

If material requirements planning is carried out at plant level, the system addstogether available stocks from all of the individual storage locations to determineshortages.



The following prerequisites must have been fulfilled in order to carry outrequirements planning for a plant:

• Requirements planning for the corresponding plant must be activated inCustomizing forMaterials Management under Consumption-Based Planning→ Planning → Activate Material Requirements Planning.

• The plant parameters for the corresponding plant must be activatedin Customizing for Materials Management under Consumption-BasedPlanning → Plant Parameters → Carry Out Overall Maintenance of PlantParameters.

• In the material master record, you have to maintain the MRP data of thematerials that are subject to automatic planning.

Note: Automatically planned materials are not assigned the material typeND (= not planned).



Lesson Summary

You should now be able to:• Describe the overall process of MRP• Name the planning levels in consumption-based planning• Describe the prerequisites for executing consumption-based planning.


TSCM50 Lesson: Overview of MRP Procedures

Lesson: Overview of MRP Procedures

Lesson OverviewThis lesson shows the most important differences between consumption-basedplanning and material requirements planning, and provides a brief description ofthe different MRP procedures in consumption-based planning.

Use the MRP type to control which procedure you use to plan a material. In thislesson, you will learn about the most important parameters of a MRP type.


• Differentiate between consumption-based planning and materialrequirements planning (MRP)

• Name the MRP procedures of consumption-based planning• Define MRP types in the system

Business ExampleAs an employee in MRP, you decide which materials use material requirementsplanning, and which use consumption-based planning. For consumption-basedplanning, also check which MRP procedures are to be used in IDES Ltd.

MRP ProceduresAs opposed to MRP, consumption-based planning procedures are only basedon previous material consumption. External requirements such as sales orders,planned independent requirements, and reservations, are generally not relevant toplanning. However, to guarantee the MRP controllers with information about thecurrent issues at the same time, sales orders, dependent and manual reservations,and so on, display in the current stock/requirements list. The planning proceduresin consumption-based planning are easy-to-use methods of requirements planningthat assist in achieving certain aims with relatively little effort. The use ofthese MRP procedures is preferable in areas without in-house production or inmanufacturing plants to plan B and C materials and operating supplies.



Figure 168: Selecting the Appropriate MRP Procedure

The above graphic shows the help options available when you do not know whichMRP procedure to use for a material.

Low value material and constant consumption is best served by aconsumption-based planning, whereas high value material with very fluctuatingconsumption is best served by MRP.

The following are planned directly as requirements in MRP: sales orders, plannedindependent requirements, reservations, and so on. MRP is especially usefulfor planning finished products and important assembly groups and components(A materials).



Figure 169: Overview of MRP Procedures

The following MRP procedures are available in consumption-based planning:

• Reorder point planning• Forecast-based planning• Time-phased planning

In reorder point planning, checks are run to discover whether the planned availablestock (total from plant stock and fixed receipts) falls short of the reorder pointdetermined for the material in the master record. If it does, procurement mustbe triggered. The reorder point should cover the expected average materialrequirements during the replenishment lead time. You can differentiate betweenmanual reorder point planning, where the MRP controller determines the reorderpoint manually, and automatic reorder point planning, where the system calculatesthe reorder point using the forecast.

Forecast-based planning uses historical values in the material forecast to estimatefuture requirements. These requirements are forecast requirements and areimmediately available in planning. The system executes the forecast calculation atregular intervals.

Time-phased planning also uses historical values in the material forecast toestimate future requirements. However, in this procedure, the planning run is onlyexecuted according to predefined intervals in a particular rhythm. It may be usefulto plan the material in the same rhythm, shifted according to the delivery time, if avendor always delivers a material on a particular weekday.

The MRP procedure is defined in the material master record for each material andplant (or MRP area). Therefore, the same material can be planned in differentplants using different MRP procedures.



Figure 170: Material Requirements Planning / Consumption-Based Planning

Material requirements planning is based on current and future requirements. Theplanned requirement quantities trigger requirements calculation. In MRP, therequirement elements include sales orders, planned independent requirements,material reservations, as well as the dependent requirements and safety stockthat BOM explosion generates.

Consumption-based planning, generally based on historical values, usesmaterial forecasts or statistical procedures to determine future requirements.Consumption-based planning procedures do not refer to the production plan; inother words, net requirements calculation is not triggered by independent ordependent requirements. Net requirements calculation is either triggered by theavailable stock level falling below the reorder point or by forecast requirementscalculated from historical data.

Prerequisites for the introduction of consumption-based planning:

• You need an efficient, up-to-date inventory management.• If you are working with forecast requirements, the material should be

consumed in accordance with a particular principle and only show lowfluctuations.



Figure 171: Considering External Requirements

As a rule, only the shortfall of the reorder point causes a planning file entryduring reorder point planning, and this then triggers net requirements calculation.To avoid overplanning, sales orders, dependent requirements, reservations, andso on, are not generally included in the net requirements calculation, as thesefuture requirements have already been covered with the reorder point. Undercertain circumstances, you must also consider particular external requirementsduring reorder point planning in net requirements calculation. In Customizing forMaterials Management under Consumption-Based Planning → Master Data →Check MRP Types, use the Include ext. reqmnts indicator for the MRP type inreorder point planning to determine whether external requirements (sales ordersand manual reservations) are considered. You can also take other requirementssuch as order reservations and purchase requisition releases into consideration.

You can decide whether these external requirements are to be included in thecomplete planning horizon or only within the replenishment lead time.

Hint: This course deals with the procedure without external requirements(MRP type VB).

For a procedure that includes external requirements, you can choose MRPtype V1 for manual reorder point planning and V2 for automatic reorderpoint planning.



Figure 172: Setting MRP Types

You define MRP types in Customizing for Materials Management underConsumption-Based Planning → Master Data → Check MRP Types. The MRPtype is a key you use to determine the procedure for planning a material and theMRP parameters that can/must be entered during maintenance of the materialmaster record. The MRP type is part of the plant data (MRP area data of amaterial). You enter it in the material master record.

You can adjust the parameters for the MRP types delivered in the SAP standardsystem to meet your requirements. You can also add new MRP types.

For requirements planning, different MRP type parameters are relevant. Use theMRP procedure to control whether consumption-based or material requirementsplanning is concerned here and which MRP procedures are to be used for planning.With the forecast indicator, you determine whether the forecast results are tobe used in planning. The consumption indicator for the forecast determines thehistorical values that are to be used for the forecast: unplanned consumption ortotal consumption. The MRP indicator for the forecast determines whether theforecast values in the net requirements calculation are to be considered, and if so,whether as total requirements or as unplanned requirements. You can also specifywhether reorder point and safety stock are to be automatically calculated .



Lesson Summary

You should now be able to:• Differentiate between consumption-based planning and material

requirements planning (MRP)• Name the MRP procedures of consumption-based planning• Define MRP types in the system



Lesson: Material Master Record

Lesson OverviewThis lesson provides an overview of the most important MRP data in the materialmaster record. You will learn about the MRP profile that serves as an entry aidfor creating and changing the MRP data in the material master record, thereforeeasing the MRP data management. This lesson also covers the material statuswhere you can restrict the usability of a material.


• Create material master records and explain the MRP data• Describe the functions of a MRP profile and create own MRP profiles• Explain the meaning of the material status

Business ExampleAs an employee in MRP, you are responsible in the IDES Ltd. for the maintenanceof the MRP data in the material master records. For fast entry, use the MRP profileyou created especially for your company.

Material Master RecordThe material master contains information about all materials that a companyprocures, produces, stores or sells. The material master is the central source of acompany for calling material-specific data. This data is saved in the individualmaterial master records.



Figure 173: MRP Data in the Material Master Record

MRP-relevant data is stored at plant level in the material master record. Make therelevant settings for storage location MRP at storage location level in the materialmaster record (MRP 4). The function for separate storage location MRP planningallows for a more flexible display with MRP areas. Maintain settings for MRPareas in the material master record (MRP 1 view).

MRP data in the material master record can be subdivided into the followingcategories:

• General data that you must/can always define for a planning material• Data dependent on MRP procedure• Data required for scheduling• Data required for lot-size calculation

To create the MRP views in the material master record, choose from the SAPEasy Access screen: Logistics → Materials Management → Material Master →Material → Create (General) → Immediately (MM01).

MRP ProfileYou can maintain MRP parameters with MRP profiles. The MRP profile is a keyin which you can store MRP parameters that do not depend on the material masterrecord. A profile is a collection of fields for the configuration of material masterrecords. The information determined in the profile is standard information thatis needed again and again in a similar combination when maintaining differentmaterials. A profile simplifies maintenance and administration of MRP data.



Figure 174: MRP profile

Specify the following in a MRP profile:

• Which fields are to be completed when entering MRP data in the materialmaster record

• Which values are to be entered in these fields• Which of these values in the material master record can be overwritten

(default values) and which cannot (fixed values)

To create an MRP profile, go to the SAP Easy Access screen and choose: Logistics→ Materials Management → Material Master → Profile → MRP Profile →Create.

When creating material master records, enter a profile to make an assignmentbetween the material master record and the profile. This assignment means thatthe fixed values, copied from the profile in the data screen, cannot be changed inthe material master records. However, you can overwrite the copied proposalvalues. When you save the material master records, the values are written to thematerial master record.

Hint: If you subsequently assign a profile to a material master record,only the fixed values are copied from the profile into the master record.

When changing a profile, the system not only updates the changed values in theprofile, but also creates a background job (PROFILE) that updates all materialmaster records allocated to a changed profile. For all materials with changes,a change document is automatically created. The time at which the batch jobPROFILE is started is defined in the system administration in Customizing for



Logistics - General under Material Master → Tools → Define Start Time ofBackground Jobs. You can also start the program RMMM0001 manually from themenu by choosing System → Services → Reporting (SA38).

Hint: During the updating of the values in the material master recordwhen changing a profile, the system only considers changes that affect thefixed values in the profile.

You can list the material master records that use the same MRP profile. To do this,go to the SAP Easy Access menu and choose: Logistics → Materials Management→ Material Master → Profile → MRP Profile → Usage (MMD7).

As well as using MRP profiles, you can also use forecast profiles to manageforecast data. The processing of forecast profiles follows the same principle asthat for MRP profiles.

Material StatusThe material status limits the usability of a material. It determines for whichfunctions in Materials Management and Production Planning and Control awarning or error message is output. You can determine the business applicationsof the material by assigning a material status to it. This assignment is frequentlydone for a limited period of time, for example, in the construction or change phaseof a material.

Figure 175: Material Status



You determine the material status and its controlling characteristics in Customizingfor Logistics - General underMaterial Master → Settings for Key Fields → DefineMaterial Statuses. You can assign a material status to a material in the materialmaster record either at plant level (MRP 1 view) or cross-plant (Basic data 1view). It is also possible to assign material status values in advance across theplant in material type.



Exercise 21: Material Master RecordMaintenance

Exercise ObjectivesAfter completing this exercise, you will be able to:• Maintain a material master for materials planning• Use MRP profiles

Business ExampleYou are going to use a new raw material in plant 1000. The new material is to beplanned using consumption-based planning.

Task 1:You are going to use a new raw material in plant 1000. When creating the materialmaster record, use the existing MRP profile ZVB1 as an entry aid. You can accessmaterial master record maintenance from the SAP Easy Access menu by choosing:Logistics → Materials Management → Material Master → Material → Create(General) → Immediately (MM01).

1. Create a new material master record with the following data:

Material Number: T-M525A##

Industry Sector: Mechanical engineering

Material Type: Raw material

Views: Purchasing, MRP 1, MRP 2, Accounting 1

Plant: 1000


MRP Profile: ZVB1

Purchasing View:

Short Text: Raw material T-M525A##

Base Unit of Measure: PC (pieces)

Purchasing Group: 001

Material Group: 001

Accounting view:

Valuation Class: 3000




Moving Price: EUR 10.00

Before saving your material, go back to the MRP 1 view, check the MRPdata, and enter the consumption values.

2. Where do the default values for the MRP Type, Reorder Point and MRPController fields come from?

__________________________________________________

3. Can you change the lot size? Why not?

____________________________________________________

4. On the MRP 1 view, change the proposed reorder point to 50 and deletethe safety stock in the MRP 2 view.

5. You have been using a similar raw material for a long time, but no materialmaster record exists. In order to use the forecast at a later time, store theconsumption values of this material in the material master record of yournewly created raw material.

Go to the additional data level. Choose the Consumption tab. Consumptionis to be managed monthly. Set the corresponding period indicator. Thenenter the following total consumption values:

Previous month 430

Previous month 1 400










Task 2:Check the MRP profiles ZVB1 and ZVB2 in plant 1000.

1. Check the use of the MRP profile ZVB1 in plant 1000. How many materialsis this MRP profile assigned to?

________________________________________________________




2. Display the MRP profile ZVB2. Which values in this MRP profile aredefault values, and which values are fixed values that you cannot overwrite?Complete the following table.

Description Value? Fixed value? Default value?

MRP Type

MRP Controller

Planned Delivery Time inDays

Scheduling Margin Key

Safety Stock

Reorder Point

Lot Size

Fixed Lot Size

Task 3:You have discovered that the settings of the MRP profile ZVB2 are moreappropriate for your material T-M525A## than the values of the profile you haveallocated to it.

1. Change the material master record and assign MRP profile ZVB2. Thechange takes effect immediately. (Note: In one of the MRP views, choosefrom the menu bar Edit → MRP profile....)

2. Check the change by examining the Lot Size field. After assigning MRPprofile ZVB2, what is the value in the Lot Size field and what is thecharacteristic (ready for input/not ready for input) of this field? (Note: theLot Size field is in the MRP 1 view.)

________________________________________________

3. Check the change by examining the Planned Delivery Time field. What valueand what characteristic (ready for input/not ready for input) does the fieldhave after assigning the profile ZVB2? (Note: the Planned Delivery Timefield is in the MRP 2 view.)

________________________________________________

4. Was the safety stock from profile ZVB2 transferred to the material master?(Note: the Safety Stock field is in the MRP 2 view.)

________________________

5. Save your change.




6. Display the change document.

Task 4:Optional: Create a new MRP profile

1. Create a new MRP profile ZV##. To do this, use the MRP profile ZVB1 asa template.

In the new MRP profile you want to define the reorder point as a fixed value.You also want to include the fields Goods Receipt Processing Time withthe value 2 and Purchasing Group with the value T## (as the default valuein each case) in the profile.



Solution 21: Material Master RecordMaintenanceTask 1:You are going to use a new raw material in plant 1000. When creating the materialmaster record, use the existing MRP profile ZVB1 as an entry aid. You can accessmaterial master record maintenance from the SAP Easy Access menu by choosing:Logistics → Materials Management → Material Master → Material → Create(General) → Immediately (MM01).

1. Create a new material master record with the following data:

Material Number: T-M525A##

Industry Sector: Mechanical engineering

Material Type: Raw material

Views: Purchasing, MRP 1, MRP 2, Accounting 1

Plant: 1000


MRP Profile: ZVB1

Purchasing View:

Short Text: Raw material T-M525A##

Base Unit of Measure: PC (pieces)

Purchasing Group: 001

Material Group: 001

Accounting view:

Valuation Class: 3000

Moving Price: EUR 10.00




Before saving your material, go back to the MRP 1 view, check the MRPdata, and enter the consumption values.

a) To create a material master record, go to the SAP Easy Access menuand choose: Logistics → Materials Management → Material Master→ Material → Create (General) → Immediately (MM01).

b) Enter the material number T-M525A##, mechanical engineering as theindustry, and raw material as the material type. Confirm your entryand choose Enter.

Select the Purchasing, MRP 1, MRP 2 and Accounting 1 views andchoose Enter.

Enter plant 1000, storage location 0001 and MRP profile ZVB1.Confirm your entry and choose Enter.

Enter the corresponding values manually in the Purchasing andAccounting views. The values for the MRP views automatically fillwith the data from the MRP profile ZVB1.

2. Where do the default values for the MRP Type, Reorder Point and MRPController fields come from?

__________________________________________________

a) The default values for the MRP Type, Reorder Point and MRPController fields come from the MRP profile ZVB1.

3. Can you change the lot size? Why not?

____________________________________________________

a) The Lot size field cannot be changed because this field is defined in theMRP profile as a fixed value (cannot be overwritten).

4. On the MRP 1 view, change the proposed reorder point to 50 and deletethe safety stock in the MRP 2 view.

a) Overwrite the reorder point in the MRP 1 view and delete the safetystock in the MRP 2 view.

5. You have been using a similar raw material for a long time, but no materialmaster record exists. In order to use the forecast at a later time, store theconsumption values of this material in the material master record of yournewly created raw material.

Go to the additional data level. Choose the Consumption tab. Consumptionis to be managed monthly. Set the corresponding period indicator. Thenenter the following total consumption values:




Previous month 430











a) Choose Additional data to get to the additional data level. Branchto the Consumption tab page. Enter period indicator M. Maintain theconsumption values for the past months in the Total Consumptioncolumn.

Choose Save to save the material master record.

Task 2:Check the MRP profiles ZVB1 and ZVB2 in plant 1000.

1. Check the use of the MRP profile ZVB1 in plant 1000. How many materialsis this MRP profile assigned to?

________________________________________________________

a) To check the usage of MRP profiles, go to the SAP Easy Access menuand choose: Logistics → Materials Management → Material Master→ Profile → MRP Profile → Usage (MMD7).

b) Enter the MRP profile ZVB1 and plant 1000. Check your entry andchoose Execute.

The materials are listed that have MRP profile ZVB1 assigned to them.(All materials that were created by you and the other participants beforeare displayed.)

2. Display the MRP profile ZVB2. Which values in this MRP profile aredefault values, and which values are fixed values that you cannot overwrite?Complete the following table.




Description Value? Fixed value? Default value?

MRP Type VB X

MRP Controller 025 X

Planned Delivery Time inDays

2 X

Scheduling Margin Key 001 X

Safety Stock 30 X

Reorder Point 80 X

Lot Size FX X

Fixed Lot Size 400 X

a) To display the data for the MRP profile, go to the SAP Easy Accessmenu and choose: Logistics → Materials Management → MaterialMaster → Profile → MRP Profile → Display (MMD3).

Enter the MRP profile number (ZVB2) and choose Enter.

On the first screen, you see the fields with fixed values, and those withdefault values.

Choose Data screen 1 to display the defined values.

Task 3:You have discovered that the settings of the MRP profile ZVB2 are moreappropriate for your material T-M525A## than the values of the profile you haveallocated to it.

1. Change the material master record and assign MRP profile ZVB2. Thechange takes effect immediately. (Note: In one of the MRP views, choosefrom the menu bar Edit → MRP profile....)

a) To change the material master record, go to the SAP Easy Access menuand choose: Logistics → Materials Management → Material Master→ Material → Change → Immediately (MM02).

Enter material number T-M525A##. Confirm your entry and chooseEnter.

Select the MRP 1 view and choose Enter.

Enter Plant 1000. Confirm your entry with Enter.

b) From the menu bar, choose Edit → MRP profile... and overwrite thecurrent assigned MRP profile ZVB1 with profile ZVB2.

Confirm your entry and choose Enter.Continued on next page



2. Check the change by examining the Lot Size field. After assigning MRPprofile ZVB2, what is the value in the Lot Size field and what is thecharacteristic (ready for input/not ready for input) of this field? (Note: theLot Size field is in the MRP 1 view.)

________________________________________________

a) The Lot Size field still has value FX after the assignment of profileZVB2, but is now ready for input.

3. Check the change by examining the Planned Delivery Time field. What valueand what characteristic (ready for input/not ready for input) does the fieldhave after assigning the profile ZVB2? (Note: the Planned Delivery Timefield is in the MRP 2 view.)

________________________________________________

a) The Planned Delivery Time field has the value 2 after the assignment ofprofile ZVB2, and is not ready for input.

4. Was the safety stock from profile ZVB2 transferred to the material master?(Note: the Safety Stock field is in the MRP 2 view.)

________________________

a) The safety stock was not copied because it is only defined as a defaultvalue in the subsequently assigned MRP profile.

5. Save your change.

a) Choose Save.

6. Display the change document.

a) Go to the SAP Easy Access menu and choose: Logistics → MaterialsManagement → Material Master → Material → Display Changes →Active Changes (MM04).

Enter T-M525A##, plant 1000 and choose Execute.

Double-click on the first line to display the last change document.

b) You can also display change documents for a material directly fromthe display of the material master record. From the menu bar, chooseEnvironment → Display Changes.

Task 4:Optional: Create a new MRP profile

1. Create a new MRP profile ZV##. To do this, use the MRP profile ZVB1 asa template.




In the new MRP profile you want to define the reorder point as a fixed value.You also want to include the fields Goods Receipt Processing Time withthe value 2 and Purchasing Group with the value T## (as the default valuein each case) in the profile.

a) From the SAP Easy Access menu, choose: Logistics → MaterialsManagement → Material Master → Profile → MRP Profile → Create(MMD1).

Enter ZV## as the MRP profile and ZVB1 as the template and chooseEnter.

b) Enter any description for your profile. Change the indicator for theReorder Point field from default value to fixed value.

Select default value for the Goods Receipt Processing Time andPurchasing Group.

Then choose Data screen 1.

c) Enter the values T## for the Purchasing Group and 2 for the GoodsReceipt Processing Time. Leave the value for the reorder point and theother values unchanged.

Save the new profile by choosing Save.



Lesson Summary

You should now be able to:• Create material master records and explain the MRP data• Describe the functions of a MRP profile and create own MRP profiles• Explain the meaning of the material status



Lesson: Reorder Point Planning

Lesson OverviewThis lesson provides detailed information about reorder point planning. You willlearn about the general principle of reorder point planning, net requirementscalculation, and scheduling during reorder point planning.


• Explain the principle of reorder point planning and its process• Describe the meaning of the reorder point and safety stock• Comprehend net requirements calculation for materials planned with reorder


Business ExampleIDES Ltd. procures particular materials using safety stock and reorder points.For each material, you must enter the corresponding MRP data. You want tocheck whether it is better to define the reorder point and safety stock manually orautomatically by the system.

Principle of Reorder Point PlanningThe basis of reorder point planning is the comparison of the available MRPstock (total from plant stock and the fixed receipts) with the reorder point. If theavailable stock is less than the reorder point, then procurement is triggered.


TSCM50 Lesson: Reorder Point Planning

Figure 176: Reorder Point Planning

The reorder point should cover the expected average material requirementsduring the replenishment lead time.

The safety stock should cover any excess material consumption that may occurduring the replenishment lead time as well as the normal requirements whendeliveries are delayed. The safety stock is therefore part of the reorder point.

The reorder point is composed of the expected material requirements during thereplenishment lead time and the safety stock. You must therefore consider thefollowing points when defining the reorder point:

• Safety stock• Previous consumption or future requirements• Replenishment lead time

During automatic reorder point planning, you determine the reorder point and thesafety stock in the material master. During automatic reorder point planning, theintegrated forecast program determines the reorder point and safety stock.

The reorder point is calculated as follows: reorder point = safety stock + dailyrequirement * replenishment lead time.

Inventory management continuously monitors the plant stock during reorderpoint planning. At each material withdrawal, the system checks whether thewithdrawal falls short of the reorder point. If this is the case, an entry is created inthe planning file for the next planning run. In the same way, the system checkswhether the plant stock still falls short of the reorder point during a material return.



If so, a planning flag is created so that the planning run can delete superfluousprocurement proposals. If return deliveries make fixed scheduled receiptssuperfluous, the planning run proposes that these receipts are deleted.

The system calculates net requirements during the planning run.

Figure 177: Net Requirements Calculation for Reorder Point Planning

During reorder point planning, the available MRP warehouse stock is a result of:

Warehouse stock + on-order stock

The on-order stock is composed of fixed and firm receipt elements (purchaseorders, firm planned orders, firm purchase requisitions). The plant stock alsoincludes the safety stock.

Hint: Receipt elements are not included if their receipt due date liesoutside the planning horizon.

There will be a material shortage if the available warehouse stock level is lowerthan the reorder point.

The shortage quantity is the difference between the reorder point and the availablewarehouse stock. The purchase order quantity is created from the lot-sizingprocedure in the material master record.

After the net requirements calculation and the lot-size calculation, the systemschedules the procurement proposal during the planning run. It calculates the dateon which the purchase order has to be sent and the date on which the vendormust deliver the corresponding quantity.



Figure 178: Forward Scheduling for External Procurement

The shortage quantity date for materials planned using reorder points is the dateof the planning run. If the reorder point is fallen short of, then procurement iscarried out immediately. During scheduling, the system defines the date on whichthe material will be available, starting from the date of the planning run. Thisprocedure is called forward scheduling.

Forward scheduling starts on the MRP date. This date specifies the order startdate for planned orders and the release date for purchase requisitions (Release inthis context means the release of the purchase requisition for conversion into apurchase order as a result of Purchasing). The purchasing department processingtime is calculated in workdays, and the planned delivery time in calendar days.The delivery date therefore stands firm (for planned orders, this means the orderfinish date). Finally, the goods receipt processing time is calculated in workdayswith the delivery date and thus the availability date is known.

The purchasing department processing time is the time available in working daysfor the buyer to convert a purchase requisition into a purchase order. You determinethis in Customizing for Materials Management under Consumption-BasedPlanning → Plant Parameters → Carry Out Overall Maintenance of PlantParameters.

The planned delivery time is the number of calendar days required to procure thematerial through external procurement.

The goods receipt processing time is the timeframe in working days betweenreceiving the material and the receipt in the warehouse. It is required forunpacking, checking, and storing material, for example.



The planned delivery time and the goods receipt processing time are storedin the material master record. You can store the planned delivery time in theoutline agreement or purchasing info record by vendor too, and the goods receiptprocessing time in the outline agreement.

Hint: The planning run determines the planned delivery time and goodsreceipt processing time from the purchasing info record or the outlineagreement if these are entered in the source list as relevant for MRP.



Exercise 22: Reorder Point Planning

Exercise ObjectivesAfter completing this exercise, you will be able to:• Discuss the settings in the material master record of a material planned with

reorder point planning• Set the different times for calculating the availability date during forward

scheduling

Business ExampleIn your company, some materials are planned with reorder point planning. Checkthe settings in the material master record for one of these materials. Calculate theavailability date of the material if you were to start a planning run today.

Task 1:Display the material master record.

1. Display the material master record for material T-M525A## in plant 1000.

What procedure is used to plan the material?

__________________________________________

What is the planned delivery time maintained for the material in the masterrecord?

__________________________________________

What is the GR processing time maintained for the material in the masterrecord?

__________________________________________

Task 2:Determine the availability date.

1. Calculate the availability date for material T-M525A## in plant 1000.

What is the purchasing processing time entered for plant 1000 inCustomizing?

__________________________________________

Is the purchasing processing time determined on a workday basis or ona calendar day basis?

__________________________________________




What are the times considered when determining the availability date?

__________________________________________

Based on today's date, determine the availability date for materialT-M525A##.

__________________________________________

Task 3:Optional: Check the MRP types

1. Determine in Customizing the MRP types that include external requirements.To do this, check all MRP types that begin with V.

MRP types:________________________________



Solution 22: Reorder Point PlanningTask 1:Display the material master record.

1. Display the material master record for material T-M525A## in plant 1000.

What procedure is used to plan the material?

__________________________________________

What is the planned delivery time maintained for the material in the masterrecord?

__________________________________________

What is the GR processing time maintained for the material in the masterrecord?

__________________________________________

a) Or choose from the SAP Easy Access screen: Logistics → MaterialsManagement → Material Master → Material → Display → DisplayCurrent (MM03).

Select the MRP 1 and MRP 2 views. Choose Continue (Enter).

Enter plant 1000 and choose Enter.

b) The following values are entered in the material master record:

MRP procedure: Manual reorder point planning (VB)

Planned delivery time: 2 days

GR processing time: 0 days

Task 2:Determine the availability date.

1. Calculate the availability date for material T-M525A## in plant 1000.

What is the purchasing processing time entered for plant 1000 inCustomizing?

__________________________________________

Is the purchasing processing time determined on a workday basis or ona calendar day basis?

__________________________________________

What are the times considered when determining the availability date?




__________________________________________

Based on today's date, determine the availability date for materialT-M525A##.

__________________________________________

a)

Hint: You can access Customizing from the SAP Easy Accessmenu by choosing Tools → Customizing → IMG → ExecuteProject (SPRO). Choose SAP Reference IMG.

In all the solutions for this course, the menu paths inCustomizing commence from this point.

You determine the purchasing processing time for each plant inCustomizing for Materials Management under Consumption-BasedPlanning → Plant Parameters → Carry Out Overall Maintenance ofPlant Parameters.

Choose Maintain and enter plant 1000. Confirm your entries andchoose Maintain again.

Choose External procurement to display the purchasing departmentprocessing time for plant 1000.

b) The purchasing processing time for plant 1000 is 1 day.

The purchasing processing time is determined in workdays.

Starting with today's date, the availability date is calculated as follows:

Purchasing processing time + planned delivery time + GRprocessing time.

Hint: The calculation is done separately for each of the threetime segments, and the results are added together. If a date fallson a day that is not defined as a working day in the factorycalendar, the calculation proceeds from the next working day.This also applies to planned delivery time.

Task 3:Optional: Check the MRP types

1. Determine in Customizing the MRP types that include external requirements.To do this, check all MRP types that begin with V.




MRP types:________________________________

a) You can find the MRP types in Customizing forMaterials Managementunder Consumption-Based Planning → Master Data → Check MRPTypes.

b) Select all the MRP types that begin with V and choose Details.

c) External requirements are included with MRP types V1 and V2 (chooseNext Entry to get to the next entry).



Lesson Summary

You should now be able to:• Explain the principle of reorder point planning and its process• Describe the meaning of the reorder point and safety stock• Comprehend net requirements calculation for materials planned with reorder



TSCM50 Unit Summary

Unit SummaryYou should now be able to:• Describe the overall process of MRP• Name the planning levels in consumption-based planning• Describe the prerequisites for executing consumption-based planning.• Differentiate between consumption-based planning and material

requirements planning (MRP)• Name the MRP procedures of consumption-based planning• Define MRP types in the system• Create material master records and explain the MRP data• Describe the functions of a MRP profile and create own MRP profiles• Explain the meaning of the material status• Explain the principle of reorder point planning and its process• Describe the meaning of the reorder point and safety stock• Comprehend net requirements calculation for materials planned with reorder



Unit Summary TSCM50



Test Your Knowledge

1. Which MRP elements can be created for a material procured externally by arequirements planning run?Choose the correct answer(s).□ A Production order□ B Planned order□ C Sales order□ D Purchase requisition□ E Purchase order□ F Outline agreement

2. Name the possible planning levels of consumption-based planning.

3. The consumption-based planning procedures are normally only based on theprevious consumption of the material.Determine whether this statement is true or false.□ True□ False

4. In forecast-based planning, you can consider external requirements.Determine whether this statement is true or false.□ True□ False

5. What is the function of a MRP profile?



6. What is the function of the material status?

7. Outline the principle of reorder point planning.

8. The safety stock should clear errors made by the MRP controllers.Determine whether this statement is true or false.□ True□ False

9. During net requirements calculation of a material planned with reorderpoint planning, the warehouse stock available for MRP results from theplant stock and the on-order stock. Which of the documents below belong toon-order stock?Choose the correct answer(s).□ A Purchase requisitions□ B Purchase orders□ C Sales orders□ D Firm planned orders□ E Fixed purchase requisitions□ F Planned orders

10. How do you schedule a material planned with reorder point planning?



Answers

1. Which MRP elements can be created for a material procured externally by arequirements planning run?

Answer: B, D

For a material with procurement type F for external procurement, a plannedorder or purchase requisition can be created during a planning run as aprocurement proposal.It is therefore also possible to create direct scheduling agreement schedulelines. Unlike the planned order and purchase requisition, schedulingagreement schedule lines are fixed, mandatory elements; in the broadersense, they belong to the procurement proposals.The purchase order is actually a purchasing document, but cannot be createddirectly by a planning run. You must convert the created purchase requisitioninto a purchase order in a second step.

2. Name the possible planning levels of consumption-based planning.

Answer:

• The plant• A separately planned storage location• MRP areasNote: As of ERP 6.0 you can also carry out MRP according to vendors. Todo this, you use the transaction MDW1. This was previously only availablein Retail systems. For more information about the Retail functions that arenow available in the standard ERP system, see the release notes.

3. The consumption-based planning procedures are normally only based on theprevious consumption of the material.

Answer: True

As opposed to MRP, consumption-based planning procedures are onlybased on material consumption. External requirements such as sales orders,planned independent requirements, and reservations, are generally notrelevant to planning.



4. In forecast-based planning, you can consider external requirements.

Answer: False

In consumption-based planning, it is only possible to consider externalrequirements in reorder point planning and time-phased planning.As a rule, only the shortfall of the reorder point causes a planning fileentry during reorder point planning; this then triggers net requirementscalculation. Under certain circumstances, you must consider particularexternal requirements during reorder point planning in net requirementscalculation. In Customizing, you can indicate the MRP type in reorder pointplanning that external requirements are to be taken into consideration.

5. What is the function of a MRP profile?

Answer: A profile is a collection of information for the configurationof material master records. The information determined in the profile isstandard information that is needed again and again in a similar combinationwhen maintaining different materials. A profile simplifies maintenance andadministration of MRP data.

6. What is the function of the material status?

Answer: The material status restricts the usability of a material anddetermines which functions in Materials Management or ProductionPlanning and Control result in a warning or an error message. In other words,with the assignment of a material status, you determine for which businessusages the material is intended.

7. Outline the principle of reorder point planning.

Answer: In reorder point planningMRP procedure, procurement is alwaystriggered when the sum of plant stock and fixed receipts falls short of thereorder point.The reorder point should include the expected average material requirementsduring the replenishment lead time.

8. The safety stock should clear errors made by the MRP controllers.

Answer: False

The safety stock should cover both excess material consumption during thereplenishment lead time and the additional consumption caused by delayeddeliveries. The safety stock is therefore part of the reorder point.



9. During net requirements calculation of a material planned with reorderpoint planning, the warehouse stock available for MRP results from theplant stock and the on-order stock. Which of the documents below belong toon-order stock?

Answer: B, D, E

During reorder point planning, the available stock at plant level (includingthe safety stock) with the scheduled fixed and firm receipts is comparedwith the reorder point. The fixed and firm receipt elements are also calledon-order stock. Procurement is always triggered when the sum of plant stockand fixed receipts falls short of the reorder point.

10. How do you schedule a material planned with reorder point planning?

Answer: Forward scheduling. During scheduling, the system defines thedate on which the material will be available, starting from the date of theplanning run.The availability date is calculated as follows: Starting from the date of theplanning run, add the purchasing department processing time (in workdays),planned delivery time (in calendar days) and the GR processing time (inworking days).


Unit 8Planning run

Unit OverviewIn this unit, you will learn about the different ways of executing a planning run inthe SAP system and the control parameters for requirements planning. This unitprovides an overview of the different subprocesses that the system runs during aplanning run. The unit also covers the evaluation methods of the planning results.


• Name the different options for a planning run• Describe the planning file and explain its functions• Describe the individual subprocesses of a planning run• Explain the meaning of the low-level code.• Name the different control parameters for MRP• Differentiate between the different planning process types and creation

indicators for the requirements planning run• Execute requirements planning.• Describe the structure of the MRP lists• Name the ways of converting a planned order.• Explain the differences between the MRP list and the current

stock/requirements list• Describe the differences between the individual and collective lists• Use the various functions for evaluating the planning result• Make the most important Customizing settings for evaluations.• Explain the different static and period lot-sizing procedures• Describe additional restrictions for the lot size.

Unit ContentsLesson: Basics of the Planning Run ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .491Lesson: Executing the Planning Run... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .499

Exercise 23: Planning Run ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .507


Unit 8: Planning run TSCM50

Lesson: Planning Result . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .514Exercise 24: Planning Result . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .519

Lesson: Planning Evaluation ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .525Exercise 25: Evaluating and Processing the Planning Result . . . . . . . .537

Lesson: Lot-Size Calculation ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .546Exercise 26: Optional: Lot-Sizing ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .553


TSCM50 Lesson: Basics of the Planning Run

Lesson: Basics of the Planning Run

Lesson OverviewIn this lesson, you will learn about the different ways of executing a planning runin the SAP system. The lesson provides an overview of the different subprocessesthat the system runs during a planning run. You will become familiar with theplanning file that contains all materials relevant for a planning run.


• Name the different options for a planning run• Describe the planning file and explain its functions• Describe the individual subprocesses of a planning run• Explain the meaning of the low-level code.

Business ExampleIn the IDES Ltd., the planning run should be executed regularly for the entireplant, and only separately for individual materials in exceptional cases. You mustdecide whether total planning is to be executed in the background or online.

Executing the Planning RunTo determine the shortage situations of the individual materials, start a planningrun in the SAP system. There are different ways of executing a planning run.Generally, you decide between total planning and single-item planning.



Figure 179: Executing the Planning Run

You can carry out the planning run as a total planning run for one specific plant(or MRP area). This procedure involves the planning of all materials that arerelevant for planning for a particular plant, and includes BOM explosion for BOMmaterials.

To execute total planning, go to the SAP Easy Access menu and choose Logistics→ Materials Management → Material Requirements Planning (MRP) → MRP→Planning → Total Planning (MD01).

The total planning run can be carried out either online or in the backgroundprocessing mode. You can schedule a total planning run either once orperiodically. If you have selected Schedule once, the total planning run executesonce on the date you specified, with the control parameters that you define in thevariant. If you have selected Schedule periodically, the total planning run runs atregular intervals.

Upon completion of the planning run, you will receive statistics with informationabout scope of planning, exceptional situations, and terminations. You can alsosee how much time was needed for the planning run in total, and for planning theindividual materials. If you choose to have the total planning run running in thebackground, you can print the log and the results.

You can use the scope of planning function when you execute total planning forseveral plants and/or MRP areas, one after another. In Customizing for MaterialsManagement, you can define as many scope of planning groups as you like, underConsumption-Based Planning → Planning → Define Scope of Planning for TotalPlanning. For each planning scope, enter a counter to specify the sequence of



the individual MRP levels (plants or MRP areas). This counter determines thesequence for planning. In a planning scope you can indicate plants or one or moreMRP areas and thus restrict the overall planning run to this/these level(s).

Note: You need to set parallel processing first to plan using a scope ofplanning. For more information, see the documentation for the IMGactivity Materials Management → Consumption-Based Planning →Define Parallel Processing in MRP.

You can carry out the requirements planning run as single-item planning for anindividual material. Either a single or multi-level planning run is carried out forone particular material. In single-level, single-item planning, the system onlyplans the BOM level for the selected material. In multi-level, single-item planning,the system plans the level of the selected material plus all the lower BOM levels.

To execute single-item , single-level planning, go to the SAP Easy Access menuand choose Logistics → Materials Management → Material RequirementsPlanning (MRP) → MRP → Planning → Single-Item, Single-Level (MD03).

Note: You can also use interactive single-item planning. Interactiveplanning, a single-level simulative planning, allows you to check theplanning result in great detail, and to execute a fine-tuning. Therefore,this planning particularly is particularly suited for materials that urgentlyrequire a check, especially master schedule items. It enables the planningresult to be checked especially carefully and fine adjustments to bemade. During interactive planning, the system first displays the currentstock/requirements list, but does not actually plan directly. You can usethis stock/requirements list to then manually trigger the planning andsimulation functions. To execute interactive planning, go to the SAP EasyAccess menu and choose: Logistics → Production → MRP → Planning→ Single-Item Planning, Interactive (MD43).

Hint: As of ERP 6.0 you can perform the planning run for each vendortoo. To do this, go to the SAP Easy Access menu and call the MRP areamenu by enteringWDIS in the command field.

Planning File EntryThe system executes different subprocesses during a planning run. The planningfile entry check is the first process that runs in MRP.



Figure 180: Planning File Entry

Basically, the planning file contains all materials relevant for a planning run.As soon as you create a material master with MRP views and valid MRP types(everything except ND for No MRP), this material is automatically included in theplanning file, as long as you activate MRP for the plant in Customizing.

The planning file controls the planning run and scope of planning, in other words,the materials that are to be taken into account in the different types of planningrun are determined.

The system automatically indicates materials that have undergone anMRP-relevant change (such as the creation of a purchase order) in the planningfile, with a corresponding planning file entry (NETCH indicator). If changesrelevant to planning become effective within the planning horizon, anotherindicator is set (file entry NETPL). The system checks in a planning run whetherthe particular material is marked for planning, in other words, whether the materialnumber exists in the planning file and whether the NETCH indicator (net changeplanning) or the NETPL indicator (net change planning in the planning horizon) isset. Only materials that have been changed (an indicator is entered in the planningfile) are considered in a planning run.



Changes relevant to planning can be:

• Changes in stocks, as long as they alter the stock and requirements situationof the material

• The addition of purchase requisitions, purchase orders, planned orders, salesrequirements, forecast requirements, dependent requirements or reservations

• Changes to fields relevant to the planning of these goods receipts or issues orof the material master record

• The deletion of goods receipts or goods issues.

The planning horizon is defined in Customizing for Materials Managementunder Consumption-Based Planning, either in the Overall Maintenance of PlantParameters for each plant, or in the Overall Maintenance of MRP Groups foreach MRP group.

Hint: If materials were created before MRP was activated for a plant,you must generate an entry in the planning file for all MRP-relevantmaterials in this plant. You set up the planning file either in Customizingfor Materials Management under Consumption-Based Planning →Planning → Activate Material Requirements Planning, or from the SAPEasy Access menu by choosing Logistics → Materials Management→ Material Requirements Planning (MRP) → MRP → Planning →Planning File Entry → Set Up in Background.

Because the entries in the planning file are permanent, you must regularlycheck their MRP-relevance. For example, if a plant is subsequentlyexcluded from MRP, the materials in this plant are still included in theplanning file. The same goes for materials that are subsequently assignedMRP type ND (No MRP) and therefore, excluded completely from MRP.In these cases, delete the entries in the planning file. You therefore needto execute a consistency check at regular intervals in Customizing forMaterials Management under Consumption-Based Planning → Planning→ Activate Material Requirements Planning. Alternatively, go to theSAP Easy Access menu and choose: Logistics → Materials Management→ Material Requirements Planning (MRP) → MRP → Planning →Planning File Entry → Consistency Check (MDRE).

Process of Consumption-Based PlanningThe automatic planning run for MRP determines shortage situations and generatesthe corresponding procurement elements. The planning run consists of severalsub-processes



Figure 181: Process of Consumption-Based Planning

The system checks the planning file entries to see whether a material has beenchanged in some way relevant to MRP and should therefore be included in theplanning run.

Next the system carries out a net requirements calculation for every material.Here, the system checks to see whether the requirement quantity is covered byavailable warehouse stock and fixed receipts from Purchasing or production. If therequirement quantity is not covered, the system creates a procurement proposal.

Subsequently, the system executes the lot-size calculation. This calculationconsiders the lot-sizing procedures and any further restrictions like roundingdefined in the material master record.

The process continues with the scheduling. The system calculates release anddelivery dates for purchase requisitions and start and end dates for planned orders.When scheduling externally-acquired materials, replenishment lead time is used asa basis. During forecast-based planning, the dates are determined using backwardscheduling, and during reorder point planning, they are determined using forwardsscheduling.

After scheduling, the system determines the type of the procurement proposals.The procurement type is checked in the material master record; in other words,the system checks whether the receipt is to take place as a result of in-houseproduction or external procurement. If it is in-house production, the system createsplanned orders. In the case of external procurement, the system creates plannedorders, purchase requisitions or schedule lines according to the settings. Whenusing a source list or quota arrangement, the system attempts to calculate a sourceof supply and allocate this to the procurement proposal.



After the planning run, the MRP controllers can check and edit the newprocurement elements. The evaluations available for this are discussed in lessonsPlanning Result and Planning Evaluation.

Figure 182: Planning Sequence

BOMs are created for the materials that are to be produced and planned. A materialcan appear in several products and on several manufacturing levels of a product.The low-level code is the lowest level at which a material appears in all BOMs.

The low-level code determines the sequence in which the materials are planned:The system first plans all materials with level 0, then all with level 1, and so on.The lower the low-level code, the higher the number assigned to the level.

During BOM maintenance, the low-level code is automatically defined in thematerial master and entered in the planning file.

Hint: If a material is not included in a BOM, the highest level (999) isset automatically (999 or blank).



Lesson Summary

You should now be able to:• Name the different options for a planning run• Describe the planning file and explain its functions• Describe the individual subprocesses of a planning run• Explain the meaning of the low-level code.


TSCM50 Lesson: Executing the Planning Run

Lesson: Executing the Planning Run

Lesson OverviewThe following control parameters are available for requirements planning; youcan select them on the initial screen of the planning run. In this lesson, you willreceive an overview of these control parameters and learn about the differentplanning process types as well as their advantages and disadvantages. The lessonalso covers the plant parameters and MRP groups that you set in Customizing tocontrol requirements planning.


• Name the different control parameters for MRP• Differentiate between the different planning process types and creation

indicators for the requirements planning run• Execute requirements planning.

Business ExampleYou are an employee in MRP and are responsible for executing the requirementsplanning run. You need to compare the types of planning runs available. You alsoneed to compare the procurement elements that can be created during a planningrun and define the corresponding creation indicator in Customizing.

Planning Run TypesThe planning run type enables you to determine the scope of the materials to beplanned and which materials are to be taken into account during a planning run.Define the planning run type using the Processing key field on the initial screen.



Figure 183: Planning Run Types

There are three different types of planning run:

• Regenerative planning: processing key NEUPL• Net change planning in the total horizon: processing key NETCH• Net change planning in the planning horizon: processing key NETPL.

Planning with the processing key NEUPL is for regenerative planning. Withthis processing key, the system plans all materials included in the planning file,irrespective of the indicators.

If you change settings in Customizing for requirements planning, such as thesettings for an MRP type, a lot-sizing procedure or the purchasing processing time,none of the materials in the planning file have an indicator. It is therefore a goodidea to start a planning run with the processing key NEUPL after such changes, sothat the changes made in Customizing can take effect in requirements planning.

In regenerative planning, change indicators NETCH and NETPL are reset in theplanning file.

The disadvantage of regenerative planning is the high burden placed on thesystem, since all materials are planned, including those that are not changed as aresult of planning.

During net change planning in the total horizon with processing key NETCH,only materials where the indicator NETCH has been set in the planning file areplanned.



The following changes lead to an entry being made in the planning file:

• Changes to stock, providing these change the stock / requirements situationfor the material (with consumption-based materials, however, only if thestock level falls short of or exceeds the reorder point).

• Additions, changes or deletions of purchase requisitions, purchase orders,planned orders, sales requirements, forecast requirements, dependentrequirements or reservations of material

• Changes to MRP-relevant fields of the material master set

In net change planning in the total horizon, the indicators NETCH and NETPLare reset in the planning file.

During net change planning in the planning horizon with processing keyNETPL, only materials where the indicator NETPL has been set in the planningfile are planned. The scope of planning or number of materials to be planned isrestricted even further, which reduces the runtime of the planning run.

During net change planning in the planning horizon, the NETPL indicator only isreset in the planning file.

The planning horizon is defined in Customizing for Materials Managementunder Consumption-Based Planning, either in the Overall Maintenance of PlantParameters according to the plant, or in the Overall Maintenance of MRP Groupsaccording to MRP group.

Note: In single-item planning, you can choose between net changeplanning (NETCH) and net change planning in the planning horizon(NETPL). Regenerative planning (NEUPL) is not useful because thematerial is already assigned and does not have to be determined first whenevaluating the planning file.

Figure 184: Planning in the Planning Horizon



In order to speed up requirements planning, it can be limited to a certain planninghorizon using the processing key NETPL. Only those requirements that are withinthe planning horizon are then covered by receipts.

As time passes, requirements may fall in the planning horizon even though theyhave not yet been covered by receipts. If no other changes relevant to planningoccur, these requirements will only be covered during the next planning run overthe entire time frame (with processing key NETCH or NEUPL). To enable theserequirements to be taken into consideration, you should execute a net changeplan according to the net change procedure at greater time intervals using theNETCH processing key.

It is also possible to set the indicator Plan Regularly in Customizing for thecorresponding MRP types. This indicator ensures that materials where it is setare also planned at regular intervals, even when no changes relevant to planninghave been made. The maximum MRP time interval for which the correspondingmaterials are to be taken into account is defined in Customizing for each MRPgroup.

Control Parameters for the Planning RunFor requirements planning, the following control parameters are available;you can set them on the initial screen of the planning run. You can use theseparameters to determine how the planning run is to be executed and what theresults should be. As well as the processing key (planning process type), thecontrol paramteres include the creation indicator for procurement proposals forexternally-procured materials, the creation indicator for MRP lists, the planningmode, and the scheduling.



Figure 185: Control Parameter Planning Run

Use the processing key to determine the planning type as regenerative planning(NEUPL), net change planning in the total horizon (NETCH), or net changeplanning in the planning horizon (NETPL).

The creation indicator for purchase requisitions for externally-procuredmaterials, controls whether direct purchase requisitions or first planned orders areto be created for externally-procured materials.

You use the creation indicator for scheduling agreement schedule lines todecide whether direct scheduling agreement schedule lines are to be created forexternally-procured materials. In order for requirements planning to automaticallycreate scheduling agreement schedule lines, you need to create a schedulingagreement for the material and mark this in the source list as MRP-relevant.

You use the creation indicator for MRP lists to determine whether the planningrun should create MRP lists. It is also possible to create MRP lists that depend oncertain exception messages appearing. The exception messages that lead to thecreation of an MRP list can be defined in Customizing for Materials Managementunder Consumption-Based Planning → Evaluation → Exception Messages →Define and Group Exception Messages.

Note: Even if you do not save MRP lists, the procurement proposalscreated by the system are stored in the database. You then carry outpostprocessing with the current stock/requirements list, not with the MRPlist.



The planning mode specifies how non-fixed procurement proposals from thelast planning run are to be handled in the next planning run. Fixed procurementproposals essentially remain the same. The following options are available:

• Adjust existing planning data (planning mode 1)• Trigger BOMs again after BOM changes (planning mode 2)• Delete all planning data and re-create procurement proposals (planning

mode 3).

Hint: The planning mode can be specified for each planning run on theinitial planning screen. The planning mode is also set automatically inthe planning file. When planning a material, the planning mode with thehighest numerical value has priority: planning mode 2 (trigger BOMsagain) overrides planning mode 1 (adjust planning data), planning mode3 (delete and re-create planning data) overrides planning mode 1 (adjustplanning data) and planning mode 2 (trigger BOMs again). As a rule, it issufficient to set planning mode 1 on the initial screen of the planning run.If the material does actually have to be planned with another planningmode, then a corresponding planning file entry is automatically set inthe planning file and then evaluated in the planning run. It is importantto set planning mode 2 or 3 on the initial screen of the planning runif changes have been made in Customizing, as planning file entriesare not automatically created for the affected materials. To find outwhen a particular planning mode is set in the planning file, see the SAPLibrary under SAP ERP Central Component → Logistics → MaterialsManagement → Consumption-Based Planning → Planning Processes →Checking the Planning File → Planning Mode.

You can also define the creation indicator for scheduling agreement schedule linesin Customizing under the plant parameters. The creation indicators for purchaserequisitions, schedule lines and MRP lists can also be set in Customizing in theMRP group. The materials assigned to this MRP group are planned accordingly inthe total planning run.

Hint: You can save the parameters in the planning run in transactionsMD01 and MD03. To do this, go to the menu and choose Settings → Save.

Plant Parameters and MRP GroupsPlant parameters are control parameters for requirements planning and aredetermined for each plant in Customizing for Materials Management underConsumption-Based Planning → Plant Parameters → Carry out OverallMaintenance of Plant Parameters.



The MRP group is an organizational object used to allocate certain controlparameters for MRP to a group of materials. You can maintain MRP groups andthe corresponding parameters in Customizing for Materials Management underConsumption-Based Planning →MRP Groups → Carry Out Overall Maintenanceof Plant Parameters if you need more control over planning for each plant andwant to assign control parameters that are different from the plant definition toparticular material groups.

Figure 186: Plant Parameters / MRP Group Parameters

You can maintain different plant parameters, such as the creation indicator forscheduling agreement schedule lines, the purchasing processing time and theplanning horizon.

In the MRP groups, you can also maintain different parameters such as the creationindicator for purchase requisitions, schedule lines and MRP lists, maximum MRPinterval and the planning horizon.

The MRP group is assigned to the relevant master record according to the material.

A MRP can be suggested as default due to the material type in the materialmaster record, if you have defined the corresponding settings in Customizing forMaterials Management under Consumption-Based Planning → MRP Groups →Define MRP Group for Each Material Type.

In total planning, the system checks with each material whether the material hasbeen allocated an MRP group. If no MRP group is allocated for the material, thematerial is planned using plant parameters.

In single-item planning, parameters entered on the initial screen are always usedfor planning.



Figure 187: Settings in Materials Planning

If setting is possible on several levels, the setting in the MRP group that is assignedto the material has priority over the setting in the plant parameters.



Exercise 23: Planning Run

Exercise ObjectivesAfter completing this exercise, you will be able to:• Display the planning file• Carry out requirements planning as single-item planning.

Business ExampleFor the requirements planning run, you need to consider how the planning runis to be executed, how the number of materials to be planned can be limitedappropriately, and what the result of the planning run should be.

Task 1:Display the planning file entry for your material T-M525A## in plant 1000.

1. What low-level code is your material allocated to?

__________________

2. Which flags (change indicators) are set for your material in the planning file?

__________________________________________

Task 2:Carry out single-level, single-item planning for your material T-M525A## inplant 1000.

1. Choose the planning process type for Net change planning for total horizon.What processing key do you use?

__________________________________________

2. Make sure that the requirements planning run creates planned orders. Whatcreation indicator do you use for purchase requisitions?

__________________________________________

3. The result of the planning run should immediately display. Select Displayresults before they are saved.

4. Now check the planning result. Did the system create a planned order foryour material?

____________

How do you explain the receipt quantity of the planned order?




_______________________________________________

Save your planning result.

Task 3:Display the planning file entry again for your material T-M525A## in plant 1000.

1. Which planning indicators (change indicators) are set for your material?

_______________________________

Task 4:Display the MRP data for your material T-M525A## in the material master record.

1. What MRP group is allocated to your material?

____________________

2. Where does this allocation originate?

__________________________________________________

Task 5:Display the control parameters for MRP group 0000.

1. Display the control parameters for the MRP group of your material in plant1000. In Customizing, choose Carry Out Overall Maintenance of MRPGroups. What planning horizon is specified for the MRP group of yourmaterial in plant 1000?

____________________

Task 6:Display the control parameters for plant 1000.

1. What planning horizon is defined for plant 1000?

____________________

2. What planning horizon is relevant for planning material T-M525A## andwhy?

__________________________________________________



Solution 23: Planning RunTask 1:Display the planning file entry for your material T-M525A## in plant 1000.

1. What low-level code is your material allocated to?

__________________

a) Go to the SAP Easy Access menu and choose: Logistics → MaterialsManagement → Material Requirements Planning (MRP) → MRP →Planning → Planning File Entry → Display (MD21).

Enter material number T-M525A## and plant 1000 and chooseExecute.

b) Your material is assigned to low-level code 999.

2. Which flags (change indicators) are set for your material in the planning file?

__________________________________________

a) Indicators NETCH and NETPL are set for the material.

Hint: The “Reset Procurement Proposals” indicatorcorresponds to planning mode 3 on the initial screen of theplanning run.

Task 2:Carry out single-level, single-item planning for your material T-M525A## inplant 1000.

1. Choose the planning process type for Net change planning for total horizon.What processing key do you use?

__________________________________________

a) Go to the SAP Easy Access menu and choose: Logistics → MaterialsManagement → Material Requirements Planning (MRP) → MRP →Planning → Single-Item, Single-Level (MD03).

b) For net change planning for total horizon, use processing key NETCH.

2. Make sure that the requirements planning run creates planned orders. Whatcreation indicator do you use for purchase requisitions?

__________________________________________

a) So that planned orders are created, enter value 3 for the creationindicator for purchase requisitions.




3. The result of the planning run should immediately display. Select Displayresults before they are saved.

a) Select the Display results before they are saved indicator.

b) Choose Enter to start the planning run.

Confirm the warning message and choose Enter.

4. Now check the planning result. Did the system create a planned order foryour material?

____________

How do you explain the receipt quantity of the planned order?

_______________________________________________

Save your planning result.

a) A planned order of over 500 pieces was created, as a fixed lot size of500 pieces was entered in the material master.

b) Choose Save to save the planning result.

Task 3:Display the planning file entry again for your material T-M525A## in plant 1000.

1. Which planning indicators (change indicators) are set for your material?

_______________________________

a) Go to the SAP Easy Access menu and choose: Logistics → MaterialsManagement → Material Requirements Planning (MRP) → MRP →Planning → Planning File Entry → Display (MD21).

b) No indicators are set for the material.

Task 4:Display the MRP data for your material T-M525A## in the material master record.

1. What MRP group is allocated to your material?




____________________

a) Go to the SAP Easy Access menu and choose: Logistics → MaterialsManagement → Material Master → Material → Display → DisplayCurrent (MM03).

Enter material number T-M525A## and choose

Enter.

Select the MRP 1 view and choose Enter.

Enter plant 1000 and choose Enter.

b) The MRP Group field is under the General Data area.

The material is assigned to MRP group 0000.

2. Where does this allocation originate?

__________________________________________________

a) This assignment comes from the material type ROH (raw material) thatis assigned to the material.

b) The assignment of the MRP group for each material type is made inCustomizing for Materials Management under Consumption-BasedPlanning → MRP Groups → Define MRP Group For Each MaterialType.

Go to the line with the material type ROH and plant 1000 to find theassigned MRP group 0000.

Task 5:Display the control parameters for MRP group 0000.

1. Display the control parameters for the MRP group of your material in plant1000. In Customizing, choose Carry Out Overall Maintenance of MRPGroups. What planning horizon is specified for the MRP group of yourmaterial in plant 1000?

____________________

a) Maintain the control parameters for the MRP groups in Customizingfor Materials Management under Consumption-Based Planning →MRP Groups → Carry Out Overall Maintenance of MRP Groups.

Enter plant 1000 and choose Maintain.

Enter MRP group 0000 and choose Maintain again.

b) Choose Planning Horizon. No planning horizon is defined for MRPgroup 0000.




Task 6:Display the control parameters for plant 1000.

1. What planning horizon is defined for plant 1000?

____________________

a) Maintain the plant parameters in Customizing for MaterialsManagement under Consumption-Based Planning → Plant Parameters→ Carry Out Overall Maintenance of Plant Parameters.

Choose Maintain and enter plant 1000. Choose Maintain again.

b) 100 days (workdays) has been specified as the planning horizon forplant 1000.

2. What planning horizon is relevant for planning material T-M525A## andwhy?

__________________________________________________

a) The MRP group assigned to the material has a higher priority than theplant parameter. However, because no horizon has been defined in theMRP group, the planning horizon defined at plant level is valid.



Lesson Summary

You should now be able to:• Name the different control parameters for MRP• Differentiate between the different planning process types and creation

indicators for the requirements planning run• Execute requirements planning.



Lesson: Planning Result

Lesson OverviewIn a planning run, the system creates the corresponding procurement proposals ifthere is a shortage situation. The system also creates MRP lists depending on thecreation indicator. Planning run results are covered in this lesson. You will alsolearn about the different ways of converting a planned order.


• Describe the structure of the MRP lists• Name the ways of converting a planned order.

Business ExampleAfter requirements planning has been performed, you are responsible forconverting planned orders created by the system for externally-acquired materialsinto a purchase requisition. You first display the created procurement proposals inthe MRP list.

Planning ResultYou can execute requirements planning as individual or overall planning. Theplanning run type determines the scope of the materials to be planned. You canspecify the planning run type in the Processing key field on the initial screen.Depending on the selected processing key, the system reads the materials to beplanned from the planning file, and deletes the corresponding indicator (NETCHand/or NETPL).


TSCM50 Lesson: Planning Result

Figure 188: Planning Result

The results of the planning run are both procurement elements (planned orders,purchase requisitions and schedule lines) and optional MRP lists.

MRP lists contain the planning results for the material. The MRP list alwaysdisplays the stock/requirements status at the time of the last planning run, andprovides a work basis for the MRP controller. Any changes made after theplanning date are not considered. The list is static.

Each MRP list is divided into a header section and an item section. In the MRPlist header, material data is recorded, for example, the material number, the plant,and MRP parameters. The items contain information on the individual MRPelements (planned orders, purchase orders, reservations, sales orders, and so on).You can also show the material tree in the MRP list.

Hint: You can change the names of the MRP elements.

To do this, go to Customizing for Materials Management and chooseMaterials Management → Consumption-Based Planning → Evaluation→ Check Texts for the MRP Elements.

The MRP list is stored in the system until it is either manually deleted, or replacedby a new list from a subsequent planning run.



Converting Planned OrdersA planned order is an internal document used by the MRP controller, specifyinghow much of a material is needed, and when. A planned order is only used withinthe company and it is not binding.

Planned orders can be created manually, but are usually generated automaticallywith a requirements planning run.

A planned order has the following characteristics:

• It is a procurement proposal in material requirements planning forrequirement coverage, an internal planning element. It is not binding so doesnot trigger procurement directly, just helps with planning.

• It can be changed or deleted at any time.• It is still undecided as to whether the material is later procured with in-house

production or external procurement.• For in-house produced materials, it is the requirements object for the

secondary requirement. It can be used in capacity calculation.• For in-house produced materials, it determines the basic dates for the

production.

Figure 189: Converting a Planned Order

For in-house production, the planned order can be converted into a productionorder. For external procurement, the planned order can be converted into apurchase requisition.



You have two ways of converting the planned orders into purchase requisitions:

• Individual conversion• Collective conversion

In individual conversion, you can decide whether you want to convert the plannedorder quantity in total, or only partially. Partial conversion is an advantage whenthe demand situation has changed, or if you want to use in-house production forpart of the planned order.

To convert a planned order individually, go to the SAP Easy Access menu andchoose: Logistics → Materials Management → Material Requirements Planning→ MRP → Planned Order → Convert to Pur. Req. → Individual Conversion(MD14).. You can also convert a planned order directly from the MRP list orcurrent stock/requirements list.

In collective conversion, you can select specific planned orders that have startdates within the opening horizon.

The opening horizon is the time available for the MRP controller to convert aplanned order into a purchase requisition or a production order. The horizon keyin the material master record controls the opening horizon.

Collective conversion is also possible in the background. To convert plannedorders into purchase requisitions collectively, go to the SAP Easy Access menuand choose: Logistics → Materials Management → Material RequirementsPlanning → MRP → Planned Order → Convert to Pur. Req. → CollectiveConversion (MD15).

All purchase requisitions that were created by converting a planned order are fixedautomatically. They are not changed by later planning runs.



Exercise 24: Planning Result

Exercise ObjectivesAfter completing this exercise, you will be able to:• Display and process MRP lists• Convert planned orders to purchase requisitions

Business ExampleAfter executing a planning run, the planning result has to be evaluated and revised.If the system creates planned orders during the planning run, these orders have tobe converted into purchase requisitions or production orders. To do this, the MRPcontroller for the material T-M525A## works with the MRP list.

Task 1:Display the result of the last planning run. To do this, go to the requirementsplanning evaluations and choose MRP List - Collective Display.

1. Select all MRP lists for plant 1000, MRP controller 025, procurement type Fand MRP type VB. Is there an MRP list for material T-M525A##?

________________

2. Go to the individual display of the MRP list for material T-M525A##. Is theprocessing indicator set for this MRP list?

_______________

3. Change the planned order, by calling the order from the list. Increase thequantity of the planned order by 100 pieces.

Task 2:After you have changed the planned order, take a look at the MRP list.

1. Why can you not see the quantity change you made in the planned orderin this list?

________________________________________________

2. Convert your changed planned order from the list into a purchase requisition.Ensure that the changed quantity in the planned order is copied into thepurchase requisition, and save the purchase requisition.

Then set the processing indicator for your material T-M525A## in the MRPlist.




Task 3:Call the collective display for MRP lists again.

1. Select all unprocessed MRP lists for plant 1000, MRP controller 025,procurement type F and MRP type VB. Is there an entry for your materialT-M525A##?

_________________



Solution 24: Planning ResultTask 1:Display the result of the last planning run. To do this, go to the requirementsplanning evaluations and choose MRP List - Collective Display.

1. Select all MRP lists for plant 1000, MRP controller 025, procurement type Fand MRP type VB. Is there an MRP list for material T-M525A##?

________________

a) To call the MRP list with collective access, go to the SAP Easy Accessmenu and choose: Logistics → Materials Management → MaterialRequirements Planning (MRP) → MRP → Evaluations → MRP List -Coll. Displ. (MD06).

Enter plant 1000 and MRP controller 025. You can maintainprocurement type F and MRP type VB on the Material Data tab page.Choose Continue (Enter).

b) All materials that were selected with your criteria and that have anMRP list are displayed in the collective display. There is a list formaterial T-M525A##.

2. Go to the individual display of the MRP list for material T-M525A##. Is theprocessing indicator set for this MRP list?

_______________

a) To branch to the individual display of the MRP lists, select thecorresponding lines and choose Selected MRP Lists.

b) You can see if the processing indicator is set in the header of the MRPlist on the Special MRP List Data tab page.

The MRP controller has to set the processing indicator manually, assoon as the processing of the MRP list has been completed. At themoment, the processing indicator is therefore not set.

c) First exit the individual display, then the collective display of the MRPlists. To do this, select Back. Confirm the message on the Exitmaterial list dialog screen with Yes.




3. Change the planned order, by calling the order from the list. Increase thequantity of the planned order by 100 pieces.

a) To change the planned order, first branch to the detail screen of theplanned order. Choose Details of Element.

b) Choose Change Element to branch to the planned order.

Overwrite the quantity and save your changes.

Leave the MRP list open for the next task.

Task 2:After you have changed the planned order, take a look at the MRP list.

1. Why can you not see the quantity change you made in the planned orderin this list?

________________________________________________

a) You cannot see the quantity change in the MRP list since the list isstatic. It only shows the result of the last planning run, and is updatedwith the next planning run.

2. Convert your changed planned order from the list into a purchase requisition.Ensure that the changed quantity in the planned order is copied into thepurchase requisition, and save the purchase requisition.

Then set the processing indicator for your material T-M525A## in the MRPlist.

a) To convert the planned order into a purchase requisition, first branchto the detail screen of the planned order. To do this, select Detailsof Element.

Choose -> Purchase Requisition. Check the quantity in the ConvertedQuantity field. The purchase requisition is created with the changedquantity. Save your entries.

To do this, select Save.

b) You set the processing indicator in the list header. To do this, selectProcessing indicator on.

Task 3:Call the collective display for MRP lists again.

1. Select all unprocessed MRP lists for plant 1000, MRP controller 025,procurement type F and MRP type VB. Is there an entry for your materialT-M525A##?




_________________

a) To call the MRP list with collective access, go to the SAP Easy Accessmenu and choose: Logistics → Materials Management → MaterialRequirements Planning (MRP) → MRP → Evaluations → MRP List -Coll. Displ. (MD06).

Enter plant 1000 and MRP controller 025. On the Processing indicatortab, select Only unprocessed MRP lists. You can maintain procurementtype F and MRP type VB on the Material Data tab page.

Choose Continue (Enter).

b) There is no entry in the collective display for material T-M525A##,since you set the processing indicator in the individual list and selectedOnly unprocessed MRP lists as a selection criterion in the collectiveaccess.



Lesson Summary

You should now be able to:• Describe the structure of the MRP lists• Name the ways of converting a planned order.


TSCM50 Lesson: Planning Evaluation

Lesson: Planning Evaluation

Lesson OverviewVarious lists are available in the SAP system to evaluate planning results. In thislesson, you will receive detailed information about the MRP list and the currentstock/requirements list. The differences between the two lists will also be pointedout. You will learn about the possibility of individual access and collective accessto the lists. The most important Customizing settings for the evaluation optionsare also part of this lesson. Here you will learn about exception messages that arecreated during the planning run and make the MRP controllers aware of particularsituations that have arisen.


• Explain the differences between the MRP list and the currentstock/requirements list

• Describe the differences between the individual and collective lists• Use the various functions for evaluating the planning result• Make the most important Customizing settings for evaluations.

Business ExampleAfter the planning order that was generated in the planning run has beenconverted to a purchase requisition, you want to check the result in the currentstock/requirements list again.

If an exception situation exists for your material, this is displayed in the form of anexception message. You would like to gain an overview of this in Customizing.

Current Stock/Requirements List and MRP ListAfter the regular requirements planning run, check the stock/requirementssituation of the planned materials, execute any necessary changes and save theavailability of the materials. The MRP list and current stock/requirements list areavailable for evaluation of planning results. You can only differentiate betweenthe individual access if you want to display the stock/requirements situation fora single material in a list, and the collective access, if you want to display thestock/requirements situation for a range of materials.



Figure 190: Stock/requirements List and MRP List

The system creates MRP lists during the planning run depending on theMRP listscreation indicator. These lists contain the planning results for the material. TheMRP list always displays the stock/requirements situation at the time of thelast planning run and also provides a work basis for the MRP controller. Anychanges made after the planning date are not considered. The list is static.

The MRP list is stored in the system until it is either deleted manually, or replacedby a new list from a subsequent planning run.

The current stock/requirements list displays the most up-to-date stocksand requirements . The main difference between the MRP list and thestock/requirements list is that each time the stock/requirements list is called, thesystem re-reads the various MRP elements and displays the most up-to-datesituation. As a result, you always see the most recent availability situation for thematerial in the stock/requirements list. Changes made after the planning date aredisplayed directly. The list is dynamic.

The lists contain exactly the same information directly after the planning run. Assoon as a MRP-relevant change is made, the information in the stock/requirementslist updates.

The basic structure of both lists is the same:

• Links (optional) are in the form of a tree in the MRP controller's worklist.• The top of the list contains the header with the material number. The header

details display more information.• The list contains the individual MRP elements and the corresponding

available quantities.



Layout and Functions of the MRP ListsThe individual lists have a large number of display options.

Figure 191: Layout and Functions of the MRP Lists

You can display different dates (availability date or goods receipt or deliverydate).

You can use filters. There is a distinction between selection rules and displayfilters. With selection rules, you determine which MRP elements and which stocksare to be included in the quantity and stock calculation. You define your ownbusiness views. With display filters, you determine which MRP elements andMRP segments display. In this way, you reduce the information displayed so youhave a clear selection.

Hint: From a materials management perspective, 2 selection rules areimportant:

• SAP VB with dependent requirements also displays dependentrequirements for materials planned using consumption-basedplanning. These are otherwise invisible with MRP type VB (manualreorder point planning). The dependent requirements neverthelesshave no influence on MRP.

• SAP SA releases instead of delivery schedules are useful forscheduling agreements with release documentation. You can usethem to see where releases have been created and sent for vendordelivery schedules.



The period totals are a display variant where the planning results are periodicallysummarized. The individual periodicities display in the period totals display ondifferent tab pages. This form of display gives you a quick overview of the timedevelopment of the material availability.

If you want to compare the MRP list with the stock/requirements list, use thecompare functions. This means that you can compare the situation at the time ofthe last planning run with the current stock/requirement situation.

The header details show an overview of master and transaction data for eachmaterial. This data is grouped together according to topic in individual screens.The MRP type controls which screens are displayed in the requirements planningevaluations. For this, the screen sequences have a key that is then assigned to theMRP type. It is therefore possible to display master data for the evaluation ofconsumption-based materials that is different to that displayed for MRP plannedmaterials.

The items contain information on the individual MRP elements (planned orders,purchase orders, reservations, sales orders, and so on). You can process individualMRP elements from the list.

User-specific settings enable you to adjust the lists to your personal requirements.These settings apply to both lists.

The user-specific configurations include:

• Definition of settings to access the lists• Definition of user-specific transaction calls• Configuration of columns in the lists• Navigation between materials with material tree• Definition of the traffic light values• Saving the selection parameters for collective access into the MRP list.

To show the MRP list for a particular material, go to the SAP Easy Access menuand choose: Logistics → Materials Management → Material RequirementsPlanning (MRP) → MRP → Evaluations → MRP List - Material (MD05). Toshow the current stock/requirements list for a particular material, go to the SAPEasy Access menu and choose: Logistics → Materials Management → MaterialRequirements Planning (MRP) → MRP → Evaluations → Stock/Reqmts List(MD04).

Collective ListsCollective access is possible with a large number of selection criteria, where thecriteria for accessing the current stock/requirements list with collective accessdifferentiate from those in the MRP list.



Figure 192: Collective Access to Current Stock/Requirements List

During the collective access, a material overview first displays with all selectedmaterials. If you accessed with the indicator Structure lists first, you haveorientation help. Traffic light values (red, yellow, green) display how urgentmaterial processing is; the criteria for the display can be user specific. The days'supply and exception groups control the traffic light display. There are varioussort and search functions available in the overview and in the individual lists.With the search function, you can specifically select materials according toparticular exception messages. You can use the sort functions to determine that thematerials listed in the material list after the collective access are sorted accordingto certain criteria. In collective access, you can also use the graphical display todisplay the changes to the stock situation of one or several materials.



From the overview, go to the individual lists and process the materials. If, forexample, you have selected several lists for processing, you can go from one listdirectly to the next selected list.

Hint: As of ERP 6.0 Enhancement Package 3 you can also set the trafficlights for the stock/requirements list and the MRP list in conjunction withthe particular material.

To do this, you can define evaluation profiles in Customizing forconsumption-based planning.

To define evaluation profiles, choose SAP Customizing ImplementationGuide: Materials Management → Consumption-Based Planning →Evaluation → Define Evaluation Profile for Range-of-Cover Data.

You assign these profiles to the MRP groups that can in turn be entered inthe material master record in the MRP 1 view.

To assign evaluation profiles, choose SAP Customizing ImplementationGuide: Production → Material Requirements Planning → MRP Groups→ Carry Out Overall Maintenance of MRP Groups

You can assign your evaluation profiles here, dependent on the plant /MRP group combination.

To call the current stock/requirements list for collective access, go to the SAPEasy Access menu and choose: Logistics → Materials Management → MaterialRequirements Planning (MRP) → MRP → Evaluations → Stock/Requirements:Collective Display (MD07).

Figure 193: Collective Access to MRP Lists

The selection criteria for collective access in the MRP lists are not the same asthose in the current stock/requirements lists. You can use the MRP or processingdate and/or the processing indicator for the selection here, for example.



The orientation guides in the material overview correspond with the currentstock/requirements list. It is also possible to search for processing indicators ornew exceptions.

To call the MRP list for collective access, go to the SAP Easy Access menu andchoose: Logistics → Materials Management → Material Requirements Planning(MRP) → MRP → Evaluations → MRP List - Coll. Displ. (MD06).

Material TreeThe material tree is a structure tree that you can show in the MRP list and in thecurrent stock/requirements list. You can specify in the user settings whether or notyou want to display the material tree.

Certain materials are automatically included in the material tree:

• All materials that you have selected during collective access to the MRPlist or current stock/requirements list

• All materials for which you have called up the MRP list or currentstock/requirements list during a session

If you leave this transaction, the material selection will be lost.

Figure 194: Material Tree



You can change the layout of the tree and display the following:

• Worklist tree: All materials in the current session are displayed (in particularwhen the initial access is via collective access).

• Order tree: All components and assemblies of a selected MRP element aredisplayed according to the order report.

• Product group tree: All materials of a product group (only if usingcollective access via a product group) are displayed.

If you double-click on a material number in the material tree, the number isdisplayed in the overview.

For the worklist tree and order tree, you can set which fields will display in whatorder. Choose Define Fields and Sequence.

Navigation ProfileTo simplify your work with the MRP list and current stock/requirements lists,there are navigation profiles and user-specific transaction calls (Own Favorites)available in the SAP system.

Figure 195: Navigation Profile

A navigation profile contains transaction calls for transactions that can be calleddirectly from the current stock/requirements list, or the MRP list. The transactionsare either general (actions on a material level) or refer to a particular MRPelement. You can reach these transactions using buttons with icons and/or textwithout having to leave the displayed list.



You can define a navigation profile in Customizing for Materials Managementunder Consumption-Based Planning → Evaluation → Define Navigation Profiles.Each user can assign themselves a profile. To do this, select Environment →Navigation Profile → Assign from the menu bar, enter the required navigationprofile and save your entry.

In a navigation profile, you can determine any number of transaction calls. Thelist display is limited to five general transaction calls and two transaction calls foreach MRP element. However, only the first five or the first two transaction callsrelevant for the particular context appear.

You can preassign three parameters for each transaction call for the initial screenof this transaction. You can also link the possibility of offering a transaction callto the following parameters from the material master record: procurement type,material type, MRP group, MRP type.

User-specific transaction calls (Own Favorites) complete the general navigationprofiles. In your own favorites, you define transaction calls for the transactionsyou want to branch to, from the lists. As with navigation profiles, you can haveboth general and specific transaction calls for each MRP element.

From the menu bar Environment → Own Favorites → Maintain, you can activateup to five general user-specific transaction calls.

Exception MessagesException messages depend on the procedure and indicate exceptional situationsthat have to be considered (for example, start date in the past, stock level fallingbelow safety stock).

Figure 196: Exception Messages



Exception messages are created during the planning run for situations that need tobe checked by the MRP controller. These exception messages can therefore alsobe used to monitor the planning results. In this way, the MRP controller is able tofilter materials out of the planning results that require immediate processing.

An exception message refers to an individual MRP element.

The number of exception messages displayed in both lists is basically the same.The only difference is that in the stock/requirements list, exception messages fornewly scheduled MRP elements cannot be issued.

In Customizing for Materials Management under Consumption-Based Planning→ Evaluation → Exception Messages → Define and Group Exception Messages,you can determine:

• Whether an exception message should be created• The priority of the exception messages, if several exception messages were

created during the planning run for an MRP element• The exception messages that are to be grouped together into an exception

group• The exception messages that lead to the creation of a MRP list if you set the

creation indicator Create MRP list depending on exception messages.

Figure 197: Customizing of the Evaluations

The period totals are a display form in the MRP list and current stock/requirementslist in which the planning results are periodically grouped together. The SAPstandard system displays the period totals with the period splits represented on a



standard, daily, weekly, and monthly basis. You can define new period splits inCustomizing for Materials Management under Consumption-Based Planning →Evaluation → Period Totals → Define Individual Period Split for Period Totals.

Traffic light values (red, yellow, green) in the lists display how urgent theprocessing of materials is. The days' supply and exception groups control thetraffic light display. The days' supply shows the number of days a material will last,taking the current plant stock into account. The receipt day's supply also containsother receipt elements in addition to the plant stock. You can set which receiptelements are to be taken into account in Customizing for Materials Managementunder Consumption-Based Planning → Evaluation → Define Receipt Elementsfor Receipt Days' Supply. You can define two receipt days' supplies.

The header details show an overview of master and transaction data for eachmaterial. This data is grouped together according to topic in individual screens.You can call up the screens in the MRP list and stock/requirements list byselecting the relevant tab page. The MRP type controls which screens display inthe requirements planning evaluations. You can define screen sequences thatare then assigned to the MRP type in Customizing for Materials Managementunder Consumption-Based Planning → Evaluation → Define Screen Sequence forHeader Details. It is therefore possible to display master data for the evaluation ofconsumption-based materials that differs from that displayed for MRP plannedmaterials.



Exercise 25: Evaluating and Processingthe Planning Result

Exercise ObjectivesAfter completing this exercise, you will be able to:• Revise the planning results• Set the current stock/requirements list and MRP list according to user needs

Business ExampleAfter the planned order has been converted, you check the currentstock/requirements situation for your materials on a regular basis. To do this, youwant to use the main evaluation options.

Task 1:Display the current stock/requirements list for material T-M525A## in plant 1000.

1. Is the firming indicator set for the purchase requisition?

_______________

2. Change the purchase requisition by calling it from the list. Increase thequantity of the purchase requisition by 100 pieces.

3. What does this firming indicator mean?

___________________________________________________

Task 2:You control the personal settings and determine, according to user needs, theappearance of the current stock/requirements list and the MRP list, and makethe settings if necessary.

1. From the requirements planning menu, call the current stock/requirementslist of material T-M525A## in plant 1000. Display the default settings foryour user in the list. The data for the settings is organized according to topicon several tab pages. What are the names of the tab pages?

__________________

__________________

__________________

__________________

__________________




2. In the list, do you see the availability date or the goods receipt date as thedate of a MRP element (Deadlines tab page)?

__________________________________________________

3. Return to the user-specific settings on Display tab page and select the Withheader details for material field. Press Enter to return to the list. Do theheader details now display?

_____________________

In the header details, which MRP controller is specified in the materialmaster record?

_____________________

Close the header details.

4. Position the cursor on the Material field at the head of the list anddouble-click. What displays?

_____________________________

Return to the current stock/requirements list.

Task 3:You want to call frequently-used transactions directly from the currentstock/requirements list.

1. Assign the navigation profile NAVSCM525 so that you can call upthe transaction calls defined in the profile directly from the currentstock/requirements list and the MRP list without having to leave the list.

2. Which transaction calls now display on the application toolbar?

__________________

__________________

__________________

__________________

3. You decide to permanently copy this setting into your personal settings.

4. Leave the current stock/requirements list and call the list again. Do thetransaction calls display?

_________________




Task 4:Execute requirements planning with the help of the transaction calls that displayin the current stock/requirements list:

1. Execute a single-level, single-item planning from the list. Does the planningrun generate new procurement elements?

___________________

Task 5:Display the overview tree in the current stock/requirements overview.

1. What materials display in the material tree?

_________________________________________________

2. Change to the stock/requirements list of material T-M525C##, by enteringthe corresponding material number in theMaterial field in the list header andconfirming your change. What materials now display in the material tree?

_________________________________________________

3. Is it possible to individually define the display of the traffic lights in thematerial tree, depending on the different exception groups?

________________________________________

4. Use the material tree to return to material T-M525A##.



Solution 25: Evaluating and Processingthe Planning ResultTask 1:Display the current stock/requirements list for material T-M525A## in plant 1000.

1. Is the firming indicator set for the purchase requisition?

_______________

a) To show the current stock/requirements list for a material, go to the SAPEasy Access menu and choose: Logistics → Materials Management →Material Requirements Planning (MRP) → MRP → Evaluations →Stock/Reqmts List (MD04).

Enter material number T-M525A## and plant 1000. Confirm yourentries and choose Enter.

b) The firming indicator for the purchase requisition is set.

2. Change the purchase requisition by calling it from the list. Increase thequantity of the purchase requisition by 100 pieces.

a) To change the purchase requisition, first branch to the purchaserequisition detail screen. Choose Details of Element.

b) Choose Change Element to branch to the purchase requisition.

Overwrite the quantity and save your changes. Refresh the currentstock/requirements list. To do this, select Refresh.

3. What does this firming indicator mean?

___________________________________________________

a) By setting the firming indicator, dates and quantities cannot be changedfor this MRP element by a new MRP run. The MRP controller canstill only make manual changes.

Task 2:You control the personal settings and determine, according to user needs, theappearance of the current stock/requirements list and the MRP list, and makethe settings if necessary.

1. From the requirements planning menu, call the current stock/requirementslist of material T-M525A## in plant 1000. Display the default settings foryour user in the list. The data for the settings is organized according to topicon several tab pages. What are the names of the tab pages?




__________________

__________________

__________________

__________________

__________________

a) To show the current stock/requirements list, go to the SAP EasyAccess menu and choose: Logistics → Materials Management →Material Requirements Planning (MRP) → MRP → Evaluations →Stock/Reqmts List (MD04).

To define user-specific settings, go to the menu bar and choose Settings→ Settings.

b) The individual tab pages are:

• Display• Period totals• Dates• Filter• General settings

2. In the list, do you see the availability date or the goods receipt date as thedate of a MRP element (Deadlines tab page)?

__________________________________________________

a) The availability date displays.

3. Return to the user-specific settings on Display tab page and select the Withheader details for material field. Press Enter to return to the list. Do theheader details now display?

_____________________

In the header details, which MRP controller is specified in the materialmaster record?

_____________________




Close the header details.

a) To define user-specific settings, go to the menu bar and choose Settings→ Settings.

Branch to the Display tab page and select the With header details formaterial field.

Choose Continue to copy your changes to the list.

b) The header details are open according to the setting. MRP controller025 is assigned to the material.

c) Close the header details. To do this, select Collapse header details.

4. Position the cursor on the Material field at the head of the list anddouble-click. What displays?

_____________________________

Return to the current stock/requirements list.

a) Double-click on the material number that displays in the header of theMaterial field.

You will see the MRP views of the material master record.

b) Return to the current stock/requirements list. To do this, select Back.

Task 3:You want to call frequently-used transactions directly from the currentstock/requirements list.

1. Assign the navigation profile NAVSCM525 so that you can call upthe transaction calls defined in the profile directly from the currentstock/requirements list and the MRP list without having to leave the list.

a) In the current stock/requirements list, go to the menu bar and chooseEnvironment → Navigation Profile → Assign.

b) In the Navigation Profile field using the F4 help, choose the profilewith the key NAVSCM525 and description MRP controller SCM525.Copy the entry.

2. Which transaction calls now display on the application toolbar?

__________________

__________________

__________________




__________________

a) In the application toolbar, the transaction calls defined in the navigationprofile display:

• Single-Item, Single-Level• Display Source List• Maintain Source List• Display Planning File Entries

3. You decide to permanently copy this setting into your personal settings.

a) To define the navigation profile for your personal settings, go to themenu bar and choose Settings → Settings. Save the defined navigationprofile. To do this, select Save.

b) Confirm the info message with Enter.

4. Leave the current stock/requirements list and call the list again. Do thetransaction calls display?

_________________

a) Because you have saved the navigation profile as your user-specificsetting, the transaction calls are still offered.

Task 4:Execute requirements planning with the help of the transaction calls that displayin the current stock/requirements list:

1. Execute a single-level, single-item planning from the list. Does the planningrun generate new procurement elements?

___________________

a) To execute a single-item, single-level planning from the currentstock/requirements list, choose Single-item planning.

Do not change the control parameters. Choose Enter to executethe planning run.

Confirm the warning message with Enter.

Refresh the list. To do this, select Refresh.

b) No new procurement elements were generated because no shortagesituation arose.




Task 5:Display the overview tree in the current stock/requirements overview.

1. What materials display in the material tree?

_________________________________________________

a) To display the material tree, choose Show Overview Tree.

b) All materials that you processed in the current session display. If youaccessed the system for the first time with material T-M525A##, this isthe only material shown.

2. Change to the stock/requirements list of material T-M525C##, by enteringthe corresponding material number in theMaterial field in the list header andconfirming your change. What materials now display in the material tree?

_________________________________________________

a) In the header details, the Material field, enter the material numberT-M525C##.

Choose Enter to confirm your entry.

b) Material T-M525C## is also displayed in the material tree.

3. Is it possible to individually define the display of the traffic lights in thematerial tree, depending on the different exception groups?

________________________________________

a) You can set the traffic light values individually in the material tree.

b) To set the traffic light values in the overview tree, choose DefineTraffic Light.

Do not make any changes. Close the Define traffic light dialog box andchoose Copy settings.

4. Use the material tree to return to material T-M525A##.

a) Double-click in the material tree on the corresponding material numberto display the current stock/requirements list for this material.



Lesson Summary

You should now be able to:• Explain the differences between the MRP list and the current

stock/requirements list• Describe the differences between the individual and collective lists• Use the various functions for evaluating the planning result• Make the most important Customizing settings for evaluations.



Lesson: Lot-Size Calculation

Lesson OverviewDuring the planning run, the system determines shortage quantities that must becovered by receipt elements. The system calculates the receipt quantity in thelot-size calculation that is carried out during the planning run. The lot-sizingprocedure entered in the material master record determines how the lot sizes arecalculated. In this lesson, you will learn about the different static and periodlot-sizing procedures, and about additional restrictions in the material masterrecord that you can use to determine the lot size.


• Explain the different static and period lot-sizing procedures• Describe additional restrictions for the lot size.

Business ExampleAs an employee in MRP, you must maintain the MRP views in the material masterrecord for the individual materials. You must also decide which lot size data todefine for this particular material. Both the MRP procedure and material-specificfeatures are important here.

Overview of Lot-Sizing ProceduresThe system determines material shortages for requirement dates in the netrequirements calculation. These shortage quantities must now be covered byreceipts. The system calculates the receipt quantity in the lot-size calculation,which is carried out during a planning run. You specify how the system is todetermine the lot sizes by selecting one of the lot-sizing procedures in materialmaster record maintenance.


TSCM50 Lesson: Lot-Size Calculation

Figure 198: Overview of Lot-Sizing Procedures

Three groups of procedures exist for calculating the lot size:

• Static lot-sizing procedures• Period lot-sizing procedures• Optimizing lot-sizing procedures

The result of the lot-sizing calculation is the amount of a material for productionor acquisition.

Define lot-sizing procedures in Customizing for Materials Management underConsumption-Based Planning → Planning → Lot-Size Calculation → DefineLot-Sizing Procedure.



Figure 199: Static Lot-Sizing Procedure

In the static lot-sizing procedure, the procurement quantity is calculated usingonly the entered quantities in the material master record.

If you select the lot-for-lot order quantity, an order proposal is created forthe shortage quantity. If there are several issues on one day and they cannotbe covered, the system still only creates one order proposal covering the totalshortage quantity on this particular day. Exact lot size means the difference to thereorder point is proposed for reorder point planning. For this reason, this methodis only suitable for certain cases (e.g. for spare parts).

Time-phased materials planning is an exception. Here, only the exact lot sizedelivers the required result (for further information, see the lesson “Time-phasedmaterials planning” in unit 3 of the course SCM525..

If you select fixed order quantity, the system creates an order proposal for thefixed lot size in the case of a material shortage. If this is not sufficient to coverthe shortage quantity, the system creates several order proposals for the same dateuntil the shortage is covered.

With Replenish to maximum stock level, an order proposal is made in caseof materials shortage that is equal to the difference of the available stock to thespecified maximum stock level.



Figure 200: Periodic Lot-Sizing

In periodic lot-sizing procedures, the system groups several requirementquantities within a time interval together to form a lot. The time period lengthscan be either days, weeks, months or a period of flexible length equal to postingperiods, as well as freely definable periods according to a planning calendar.

Daily lot size: All requirement quantities that fall within a day or within a specificnumber of days (that you have determined) are grouped together to form a lot.

Weekly lot size: All requirement quantities that fall within a week or withina specific number of weeks (that you have determined) are grouped together toform a lot.

Monthly lot size: All requirement quantities that fall within a month or withina specific number of months (that you have determined) are grouped togetherto form a lot.

Lot size with flexible period length: All requirement quantities within oneor several flexible definable periods are grouped together to form a lot. Youdetermine the period lengths according to the accounting periods. This lot sizeis also called period lot size.

Periodic procedures are suitable in consumption-based MRP for forecast-basedplanning only.

The system default is to create the availability date for period lot-sizing procedureon the first requirements date of the period. You can also determine whether theavailability date is to lie at the start or end of the period.



Alternatively you can use a planning calendar to define certain delivery dates.In SAP standard you will find lot-sizing procedure PK for this. The planningcalender is maintained on the MRP2 view in the material master.

Note: The optimum lot-sizing procedure groups requirements fromseveral periods together to form a lot, whereby an optimum cost ratio isdetermined between lot size independent costs and storage costs. Price/ quantity scales are not taken into account however. You can find moreinformation about optimizing procedures in the SAP library under thesection Requirements Planning (PP-MRP).

Additional Restrictions for Lot-Size CalculationWhen maintaining the material master record, you can specify additionalrestrictions that are to be taken into account during lot-size calculation. Thisincludes lot size rounding and the minimum and maximum lot size.

Figure 201: Lot Size Rounding

With rounding, you can adjust the procurement quantities of delivery, packing, andtransport units of measure. This may be useful, for example, if purchase ordersare only delivered in containers of X pieces, or if produced quantities can only bepacked and transported in entire pallets. There are two rounding options available:

• Rounding value (value that is rounded to)• Rounding profile (staggered roundings)



By specifying a rounding value, the system will determine during lot-sizecalculation that the lot size quantity is a multiple of an order unit (for example,pallet size if the material is only delivered in entire pallets).

In addition to that, you can use rounding profiles. With a rounding profile youcan define rounding in a way that takes full advantage of price / quantity scales,for example.

You can define several combinations of threshold and rounding values for arounding profile.

Example: The vendor of a particular material offers you the following scale prices:

Quantity Price / pc

1 EUR 100

100 EUR 80

1000 EUR 68

On the basis of these prices, you can calculate that with a quantity in excess of 80pieces, it is worthwhile rounding up to 100 pieces (80 x 100 / 1000), and in excessof 850 pieces it makes sense to round up to 1000 (68 x 1000 / 80).

Rounding profiles are defined in Customizing for Materials Management underConsumption-Based Planning → Planning → Lot-Size Calculation → MaintainRounding Profile. They consist of the threshold value and the rounding value. Thethreshold value is the value from which the system rounds the value of the nextdeliverable unit up to. The rounding value is the value from which the systemshould round up to as soon as the threshold value is exceeded.

You can enter the rounding profile in the material master record. It is then includedin material requirements planning.

You can also enter the rounding profile in the purchasing info record. In thiscase, rounding is first taken into account when you convert a purchase requisitionor create a purchase order manually.



Figure 202: Minimum and Maximum Lot Sizes

You can enter a minimum and maximum lot size in the material master recordas a limit value. These limit values are taken into consideration during lot-sizecalculation, whereas the minimum lot size determines the minimum quantity, andthe maximum lot size determines the maximum quantity for the procurementproposal. The system then rounds up to the minimum lot size, thus preventing aroundup over the maximum lot size.



Exercise 26: Optional: Lot-Sizing

Exercise ObjectivesAfter completing this exercise, you will be able to:• Understand the results of the planning run with different lot-sizing procedures

Business ExampleYou want to discover the results of planning runs with different lot-sizingprocedures.

Task:Test the lot-sizing procedure in the planning run.

1. Create a new material T-M525L## as a copy of the material T-M525A## .In doing so, copy the Purchasing, MRP 1 and 2 and Accounting views.

2. Reset the MRP profile and save the material master record.

3. Change the MRP data in accordance with the following table and executea planning run after each change. Display the results and enter the resultin the table.

MRP lotsize

EX EX EX EX HB HB

Min. lotsize

100

Max. lotsize

50 50

Roundingvalue

50

Max. stocklevel

800 900

Roundingprofile

0001

Result

4. How can you make sure that the lot size takes the best possible advantage ofthe following price / quantity scale in the planning run?




PO Quantity Price per Piece

1 100

100 80

1000 68

5. Set up a static rounding profile in Customizing that contains the data fromsubtask 4. Name this profile Z0##.



Solution 26: Optional: Lot-SizingTask:Test the lot-sizing procedure in the planning run.

1. Create a new material T-M525L## as a copy of the material T-M525A## .In doing so, copy the Purchasing, MRP 1 and 2 and Accounting views.

a) To create the material master record, go to the SAP Easy Access menuand choose: Logistics → Materials Management → Material Master→ Material → Create (General) → Immediately (MM01).

b) Enter the material number T-M525L##, mechanical engineering asthe industry sector, and raw material as the material type. Enter thereference material T-M525A## too. Confirm your entry and choose

Enter.

Select the Purchasing, MRP 1, MRP 2, and Accounting 1 views andchoose (Continue) Enter.

Enter plant 1000 and save it as a default value. Confirm your entryand choose Enter.

2. Reset the MRP profile and save the material master record.

a) From the MRP 1 view, choose the menu item Edit → MRP Profile...and remove the entry.

Save the new material master record.

3. Change the MRP data in accordance with the following table and executea planning run after each change. Display the results and enter the resultin the table.

MRP lotsize

EX EX EX EX HB HB

Min. lotsize

100

Max. lotsize

50 50

Roundingvalue

50




Max. stocklevel

800 900

Roundingprofile

0001

Result

a) To simulate the planning run, go to the SAP Easy Access menu andchoose Logistics → Materials Management → Material RequirementsPlanning (MRP) → MRP → Planning → Single-Item, Single-Level(MD03).

Enter the material T-M525L## , select the “Display results before theyare saved” field and choose Continue (Enter). Confirm the messagethat follows. Enter the result in the table and return to the initial screen.

Now change the material master data and repeat the procedure.

MRP lotsize

EX EX EX EX HB HB

Min. lotsize

100

Max. lotsize

50 50

Roundingvalue

50

Max.stock level

800 900

Roundingprofile

0001

Result A pur-chaserequi-sitionwithquan-tity 80

A pur-chaserequi-sitionwithquan-tity 100

A pur-chaserequi-sitionwithquan-tity 50andan-otherwithquan-tity 30

Twopur-chaserequi-sitionswithquan-tity 50

A pur-chaserequi-sitionwithquan-tity800

A pur-chaserequi-sitionwithquan-tity1000




4. How can you make sure that the lot size takes the best possible advantage ofthe following price / quantity scale in the planning run?

PO Quantity Price per Piece

1 100

100 80

1000 68

a) You can achieve this with a rounding profile.

Hint: You will find the calculation of the threshold values inthe lesson.




5. Set up a static rounding profile in Customizing that contains the data fromsubtask 4. Name this profile Z0##.

a) You can define the rounding profile in Customizing for MaterialsManagement under Consumption-Based Planning → Planning →Lot-Size Calculation → Maintain Rounding Profile.

b) Enter Z0## in the Rounding Profile field and choose Create Statically.

Hint: You can also define rounding profiles in conjunctionwith a plant. For the purpose of this exercise, however, youshould leave the Plant field empty.

c) Enter Rounding Profile Z0## as the name of your profile and fill thetable as follows:

Threshold value Rounding value

80 100

850 1000

Save the profile by choosing Save.

Hint: If you want to test the profile, proceed as described insubtask 3. Use the following settings:

MRP lot size: HB

Max. stock level: 80

Rounding profile: Z0##

This should result in a purchase requisition with a quantity of100 being generated in the planning run.



Lesson Summary

You should now be able to:• Explain the different static and period lot-sizing procedures• Describe additional restrictions for the lot size.


Unit Summary TSCM50

Unit SummaryYou should now be able to:• Name the different options for a planning run• Describe the planning file and explain its functions• Describe the individual subprocesses of a planning run• Explain the meaning of the low-level code.• Name the different control parameters for MRP• Differentiate between the different planning process types and creation

indicators for the requirements planning run• Execute requirements planning.• Describe the structure of the MRP lists• Name the ways of converting a planned order.• Explain the differences between the MRP list and the current

stock/requirements list• Describe the differences between the individual and collective lists• Use the various functions for evaluating the planning result• Make the most important Customizing settings for evaluations.• Explain the different static and period lot-sizing procedures• Describe additional restrictions for the lot size.



Test Your Knowledge

1. What options are there in the SAP system for executing a planning run?

2. Name the individual subprocesses of a planning run.

3. The low-level code is the lowest level in which a material appears in allBOMs.Determine whether this statement is true or false.□ True□ False

4. Name the possible planning process types in a total planning run.

5. The plant parameters have higher priority than the MRP groups.Determine whether this statement is true or false.□ True□ False

6. In which screen areas can you break down a MRP list?Choose the correct answer(s).□ A Header□ B Footer□ C Items with information about the MRP elements□ D Material tree□ E Favorites□ F Help area



7. What are the options for converting a planned order into a purchaserequisition?

8. Changes made after the planning date are not considered in the MRP list.Determine whether this statement is true or false.□ True□ False

9. What settings can you define in Customizing for Consumption-BasedPlanning for the exception messages?

10. Which of the following procedures belong to the static lot-sizing procedure?Choose the correct answer(s).□ A Replenish to maximum stock level□ B Monthly lot size□ C Daily lot size□ D Lot-for-lot order quantity□ E Fixed lot size□ F Least unit cost procedure

11. Aside from the lot-sizing procedure, name other ways of influencing a lotsize in the material master record.

12. Describe the function of a rounding value.



Answers

1. What options are there in the SAP system for executing a planning run?

Answer:

• Single-item planning (single-level or multi-level)• Total planning online• Total planning in background processing

2. Name the individual subprocesses of a planning run.

Answer:

1. Check the planning file2. Net requirements calculation3. Lot-size calculation4. Scheduling5. Type of procurement proposalsWith the corresponding settings, the system determines a source of supplyduring a planning run for externally procured materials, and assigns themdirectly to the procurement proposal.

3. The low-level code is the lowest level in which a material appears in allBOMs.

Answer: True

The low-level code is the lowest level in which a material appears withinall BOMs. The code determines the sequence in which the materials areplanned: First, the system plans all materials with level 0, then all withlevel 1, and so on. The lower the low-level code is, the higher the numberassigned to the level.

4. Name the possible planning process types in a total planning run.

Answer: The following planning process types are available in totalplanning:

• NEUPL for regenerative planning• NETCH for net change planning in the total horizon• NETPL for net change planning only within the planning horizon.



5. The plant parameters have higher priority than the MRP groups.

Answer: False

If a setting is possible on several levels, the setting in the MRP group that isassigned to the material has priority over the setting in the plant parameters.In total planning, the system checks for each material whether the materialwas allocated a MRP group. If no MRP group is allocated for the material,the material is planned using plant parameters. If a MRP group is allocatedto the material, the material is planned using MRP group parameters.

6. In which screen areas can you break down a MRP list?

Answer: A, C, D

Each MRP list is divided into a header section and an item section. In theMRP list header, material data is recorded, for example, the material number,the plant, and MRP parameters. The item section contains information on theindividual MRP elements (purchase requisitions, planned orders, purchaseorders, and so on). In the left-hand tree in the MRP list, there is a materialtree that you can choose to either show or hide.

7. What are the options for converting a planned order into a purchaserequisition?

Answer:

• Individual conversion• Collective conversionThere is a difference between collective conversion online and collectiveconversion in background processing.



8. Changes made after the planning date are not considered in the MRP list.

Answer: True

The system creates MRP lists during the planning run depending on thecreation indicator MRP lists. These lists contain the planning results for thematerial. The MRP list always displays the stock/requirements situation atthe time of the last planning run, and provides a work basis for the MRPcontroller. Any changes made after the planning date are not considered.The list is static.In the current stock/requirements list, the most up-to-date development ofstocks and requirements displays. The main difference between the MRP listand the stock/requirements list is that each time the stock/requirements list iscalled, the system re-reads the various MRP elements and displays the mostup-to-date situation. As a result, you always see the most recent availabilitysituation for the material in the stock/requirements list. Changes made afterthe planning date are displayed directly. The list is dynamic.

9. What settings can you define in Customizing for Consumption-BasedPlanning for the exception messages?

Answer: Define the following settings in Customizing forConsumption-Based Planning for the exception messages:

• Whether an exception message should be created• The priority of the exception messages, if several exception messages

were created during the planning run for an MRP element• Which exception messages are to be grouped together into an exception

group• Which exception messages lead to the creation of a MRP list if you

set the creation indicator Create MRP list depending on exceptionmessages

• The exception message text can be changed

10. Which of the following procedures belong to the static lot-sizing procedure?

Answer: A, D, E

The following belong to the static lot-sizing procedure:

• Lot-for-lot order quantity• Fixed lot size• Replenish to maximum stock level.



11. Aside from the lot-sizing procedure, name other ways of influencing a lotsize in the material master record.

Answer: Other lot size data in the material master record that influencesthe procurement quantity includes:

• Rounding value• Rounding profile• Minimum lot size• Maximum lot size

12. Describe the function of a rounding value.

Answer: If you specify a rounding value in the material master record, thismeans that the procurement quantity includes the multiple of a purchaseorder unit during lot-size calculation. This may be useful if rounding up tothe next pallet size, as pallets are only delivered if they are complete.


Unit 9Optional: Mini Case Study

Unit OverviewThe SAP system offers a variety of options for simplifying the procurementprocess through the automation of functions. If necessary, purchase requisitionsare created automatically via material requirements planning. When purchasingis preset correctly, purchase requisitions can be converted into purchase ordersautomatically. Invoice verification also has an option to simplify the settlementstep by automating certain functions.

You will then use this process during a final task to test and consolidate theknowledge that you have acquired during the week. This unit also provides aninsight into the topics covered by the second week of the training course.


• Start an individual planning run and evaluate the result• Explain automatic source determination• Create purchase orders automatically• Settle goods receipts automatically

Unit ContentsLesson: Automated Procurement Process ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .568

Exercise 27: Automation – Preparation ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .573Exercise 28: Automation – Process... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .585


Unit 9: Optional: Mini Case Study TSCM50

Lesson: Automated Procurement Process

Lesson OverviewThis lesson describes in detail the steps that are required to convert the procurementprocess. In the exercise, the procurement process is then converted and tested.


• Start an individual planning run and evaluate the result• Explain automatic source determination• Create purchase orders automatically• Settle goods receipts automatically

Business ExampleTo save costs, your company wants to automate as many steps as possible in theprocurement process. First, create an outline of the required process. In addition,determine the prerequisites that are necessary for automation and maintain themaster data accordingly.

Afterwards, perform the actual conversion. Make the settings that are required inthe system for a chosen material then test the entire process.

Process OptimizationThe procurement cycle can be simplified at different points by automating theindividual steps.


TSCM50 Lesson: Automated Procurement Process

Figure 203: Automated Procurement Process

In a first step, the material requirements can be determined via materialrequirements planning. This relieves the burden on user departments, sincepurchase requisitions do not have to be created manually for requirements. Aprerequisite is that you define the relevant data in the material master record ofthe material whose requirements are to be planned.

The source of supply can also be determined during the material requirementsplanning run. When this is done, you receive a purchase requisition with anassigned source of supply as the planning result.

Note: A source of supply can be both a vendor (external supplier) andone of your enterprise's own plants. External sources are represented bypurchasing info records and outline agreement items. For these sources,the vendor and the price of the material can be taken from the relevantrecord or document.

However, the system can assign a source of supply automatically only if the sourceof supply in question can be determined uniquely. The source list for a materialis used for this purpose. In the source list, you define a source of supply forthe material as the source of supply that is valid for a certain period and that isrelevant for material requirements planning.



Figure 204: Requirements Planning with Source Determination

In a second step, a special program can be used to convert the purchase requisitioninto a purchase order automatically.

However, you must ensure that a source of supply is assigned in the purchaserequisition. Only when this is the case is it known for which vendor and at whatprice the material should be procured.



Figure 205: Automatic Generation of Purchase Orders

In the third step, the material is delivered and the goods receipt is entered in thesystem.

In a final fourth step, the settlement document is created for the vendor on thebasis of the purchase order data and goods receipt data. Invoicing is no longerexpected from the vendor; instead, the invoice is generated automatically via asettlement program in the system. Consequently, no more effort is required forinvoice verification: there is no data entry, no variance check and no need forresolution of discrepancies. A message informs the vendor about the credit memoof the agreed amount.



Figure 206: Evaluated receipt settlement



Exercise 27: Automation – Preparation

Exercise ObjectivesAfter completing this exercise, you will be able to:• Prepare the master data for an automated procurement process.

Business ExampleIn the future, one of your materials is to be planned automatically using materialrequirements planning. A source of supply is to be determined during the MRPrun so that you can convert the purchase requisition into a purchase orderautomatically. You have also agreed with the vendor that you will use evaluatedreceipt settlement. Maintain the data that is necessary for this process.

Task 1: Prerequisites for the Automated ProcurementProcessThe following steps should be automated in the procurement process:

Determination of the material requirements via material requirements planning;determination of an info record as the source of supply for the material during theMRP run; automatic conversion of the purchase requisition into a purchase order;automatic settlement of the delivered materials (evaluated receipt settlement).

1. Find out which prerequisites and settings are required to automate yourprocurement process. Search the SAP documentation for information aboutthe various steps. Go to help.sap.com and choose the documentation forSAP ERP → SAP ERP Central Component → Logistics → MaterialsManagement.

The handbook for the second week of course TSCM50 also containsinformation about the topics.

2. Enter the fundamental prerequisites for the various automation steps in thefollowing list. This will give you an overview of the settings that need tobe made in the system. When doing this task, ask yourself which indicatorsand entries need to be maintained in the master data for the correspondingsub-step.

1) Determination of requirements using material requirements planning

2) Determination of the info record as the source of supply during the MRPrun

3) Automatic purchase order generation

4) Evaluated receipt settlement




Vendor Material Info Record Source list

1)

2)

3)

4)

Set up the automated procurement process for vendor T-K500C## andmaterial T-M500D##. Use your list to make the relevant settings directly inthe system.

If you are not confident about the conversion, you may work through thefollowing tasks. In these tasks, you are given exact specifications for thevalues to be entered.

Hint: If you maintain the master data without the help of thefollowing tasks, enter values of your choice for the relevantspecifications such as price or planned delivery time.

Task 2: Master Data Maintenance – MaterialIn task one, you made an overview of all relevant data and indicators for theautomated procurement process. This data is now to be implemented in thesystem. First, maintain the material master record.

1. Create the MRP data for material T-M500D## and plant 1000. The materialis to be planned according to the manual reorder point planning process.The reorder point for the material is 100 pieces and you need to procure afixed lot size of 300 pieces. The MRP controller responsible for the materialis 0##. The average delivery time is 7 days and a GR processing time of 1day applies to the putaway.




2. Check whether purchase requisitions can be converted automatically intopurchase orders for material T-M500D##. If necessary, change the settingsin the master record so that automation is possible.

Task 3: Master Data Maintenance – VendorYou plan to automate the procurement process as much as possible in purchasingorganization 1000 for the vendor T-K500C##. Purchase requisitions involvingthis vendor are to be converted automatically into purchase orders and the vendor'sdeliveries are to be settled automatically.

1. For the vendor T-K500C##, set all indicators that are necessary for theautomatic conversion of purchase requisitions into purchase orders and forautomatic settlement of the deliveries. Change the data in the vendor masterrecord for purchasing organization 1000.

What are the names of the indicators that have to be set?

______________________________________________________

______________________________________________________

______________________________________________________

2. The purchase order requires terms of payment for the evaluated receiptsettlement. Make sure that terms of payment can be proposed from the masterrecord for all purchase orders for the vendor T-K500C##. If there are noterms of payment in the master record, enter the terms of payment key ZB01.

Task 4: Master Data Maintenance – Info RecordYour purchasing organization has a long-term agreement with vendor T-K500C##concerning the purchase of material T-M500D##. Enter the agreed price and theother delivery conditions in an info record for purchasing organization 1000.

1. Create an info record agreement for the vendor T-K500C## and materialT-M500D## with the following data.

The average delivery time (planned delivery time) is five days and theresponsible purchasing group is T##.

The price of 9.85 EUR is valid from today for two years. The tax rateis 10 %.




Task 5: Master Data Maintenance – Source ListT-K500C## is your regular vendor for the material T-M500C##. The sourcelist must be maintained for the material so that the vendor can be determinedautomatically as the source of supply for the material.

1. In the source list, make an entry for the vendor T-K500C## and purchasingorganization 1000 for the material T-M500D## and the plant 1000. Thesource list record should be valid from today for two years and it shouldbe taken into account by material requirements planning. Maintain thecorresponding indicators.

Hint: In the transaction for maintaining the source list, you cangenerate the source list record manually by entering the vendorand purchasing organization. Alternatively, you can choosewith the quick info text Generate Records to generate the recordsautomatically.



Solution 27: Automation – PreparationTask 1: Prerequisites for the Automated ProcurementProcessThe following steps should be automated in the procurement process:

Determination of the material requirements via material requirements planning;determination of an info record as the source of supply for the material during theMRP run; automatic conversion of the purchase requisition into a purchase order;automatic settlement of the delivered materials (evaluated receipt settlement).

1. Find out which prerequisites and settings are required to automate yourprocurement process. Search the SAP documentation for information aboutthe various steps. Go to help.sap.com and choose the documentation forSAP ERP → SAP ERP Central Component → Logistics → MaterialsManagement.

The handbook for the second week of course TSCM50 also containsinformation about the topics.

a) Read the following subitems in the SAP documentation:

• Materials Management → Purchasing → Optimized Purchasing→ Source Determination → Source List

• Materials Management → Purchasing → Optimized Purchasing→ Automatic Generation of POs from Requisitions

• Materials Management → Logistics Invoice Verification →Logistics Invoice Verification → Automatic Settlements →Evaluated Receipt Settlement (ERS)

2. Enter the fundamental prerequisites for the various automation steps in thefollowing list. This will give you an overview of the settings that need tobe made in the system. When doing this task, ask yourself which indicatorsand entries need to be maintained in the master data for the correspondingsub-step.

1) Determination of requirements using material requirements planning

2) Determination of the info record as the source of supply during the MRPrun

3) Automatic purchase order generation

4) Evaluated receipt settlement




Vendor Material Info Record Source list

1) MRP Data

2) MRP Data Must be created Valid source listrecord for theinfo source

Indicator1(Recordrelevant toMRP)

3) IndicatorAutomaticpurchase order

IndicatorAutomaticpurchase order

4) Term ofpayment(Purchasingdata)

Taxcode

IndicatorAutoE-valGrsettlementdelivery

IndicatorGR-BasedInvoiceVerification

Set up the automated procurement process for vendor T-K500C## andmaterial T-M500D##. Use your list to make the relevant settings directly inthe system.




If you are not confident about the conversion, you may work through thefollowing tasks. In these tasks, you are given exact specifications for thevalues to be entered.

Hint: If you maintain the master data without the help of thefollowing tasks, enter values of your choice for the relevantspecifications such as price or planned delivery time.

a) –

Task 2: Master Data Maintenance – MaterialIn task one, you made an overview of all relevant data and indicators for theautomated procurement process. This data is now to be implemented in thesystem. First, maintain the material master record.

1. Create the MRP data for material T-M500D## and plant 1000. The materialis to be planned according to the manual reorder point planning process.The reorder point for the material is 100 pieces and you need to procure a




fixed lot size of 300 pieces. The MRP controller responsible for the materialis 0##. The average delivery time is 7 days and a GR processing time of 1day applies to the putaway.

a) Choose Logistics → Materials Management → Material Master →Material → Create (General) → Immediately (transaction MM01).

b) Enter the material number T-M500D## and choose Select View(s).You do not need to enter the material type and industry sector becausethey will be copied from the material master record. Confirm thecorresponding message.

c) In the Select View(s) dialog box, select MRP 1 and MRP 2. In theOrganizational Levels dialog box, enter plant 1000.

d) Enter the following data in the MRP views:

View MRP 1

MRP type VB

Reorder point 100

MRP controller 0##

MRP lot size FX

Fixed lot size 300

View MRP 2

Planned delivery time 7

GR processing time 1

2. Check whether purchase requisitions can be converted automatically intopurchase orders for material T-M500D##. If necessary, change the settingsin the master record so that automation is possible.

a) Choose Logistics → Materials Management → Material Master →Material → Change → Immediately (transaction MM02).

b) Enter the material number T-M500D##, choose Select view(s), andselect the Purchasing view.

c) Choose Organizational Levels and enter plant 1000.

d) In the purchasing data, you will see the Autom. PO indicator in theGeneral data area. The indicator is set.




Task 3: Master Data Maintenance – VendorYou plan to automate the procurement process as much as possible in purchasingorganization 1000 for the vendor T-K500C##. Purchase requisitions involvingthis vendor are to be converted automatically into purchase orders and the vendor'sdeliveries are to be settled automatically.

1. For the vendor T-K500C##, set all indicators that are necessary for theautomatic conversion of purchase requisitions into purchase orders and forautomatic settlement of the deliveries. Change the data in the vendor masterrecord for purchasing organization 1000.

What are the names of the indicators that have to be set?

______________________________________________________

______________________________________________________

______________________________________________________

a) Choose Logistics → Materials Management → Purchasing → MasterData → Vendor → Purchasing → Change (Current) (transactionMK02).

b) Enter T-K500C## in the Vendor field.

c) Enter purchasing organization 1000, select Purchasing data, andchooseEnter to confirm your entries.

d) Set the following indicators:GR-Based Inv.Verif.AutoEvalGrSetmt Del.Automatic purchase order

e) Save your entries.

2. The purchase order requires terms of payment for the evaluated receiptsettlement. Make sure that terms of payment can be proposed from the masterrecord for all purchase orders for the vendor T-K500C##. If there are noterms of payment in the master record, enter the terms of payment key ZB01.

a) Call the vendor's purchasing organization again.

b) Check whether the ZB01 terms of payment are entered. If they are not,enter the value and save the data.




Task 4: Master Data Maintenance – Info RecordYour purchasing organization has a long-term agreement with vendor T-K500C##concerning the purchase of material T-M500D##. Enter the agreed price and theother delivery conditions in an info record for purchasing organization 1000.

1. Create an info record agreement for the vendor T-K500C## and materialT-M500D## with the following data.

The average delivery time (planned delivery time) is five days and theresponsible purchasing group is T##.

The price of 9.85 EUR is valid from today for two years. The tax rateis 10 %.

a) Choose Logistics → Materials Management → Purchasing → MasterData → Info Record → Create (ME11).

b) Enter the following data then choose with quick-info text Enter.

Vendor T-K500C##

Material T-M500D##

Purchasing org. 1000

c) Choose Purch. Org. Data 1 and enter the following data:

Planned delivery time 5


Standard Qty 1

Tax code 1I

Net price 9,85

d) Choose Conditions.

e) Enter the following values:

Validity period <Today’s date>

To <Current date + 2years>

f) Choose Save.




Task 5: Master Data Maintenance – Source ListT-K500C## is your regular vendor for the material T-M500C##. The sourcelist must be maintained for the material so that the vendor can be determinedautomatically as the source of supply for the material.

1. In the source list, make an entry for the vendor T-K500C## and purchasingorganization 1000 for the material T-M500D## and the plant 1000. Thesource list record should be valid from today for two years and it shouldbe taken into account by material requirements planning. Maintain thecorresponding indicators.

Hint: In the transaction for maintaining the source list, you cangenerate the source list record manually by entering the vendorand purchasing organization. Alternatively, you can choosewith the quick info text Generate Records to generate the recordsautomatically.

a) Choose Logistics → Materials Management → Purchasing → MasterData → Source List → Maintain (transaction ME01) .


Initial screen

Material T-M500D##

Plant 1000

After entering this data, choose .

Overview screen

Valid from <Today’s date>

Valid to <Current date + 2 years>

Vendor <T-K500C##>

Purchasing org. 1000

MRP (Use in MaterialsPlanning)

1

c) Choose Save.



Exercise 28: Automation – Process

Exercise ObjectivesAfter completing this exercise, you will be able to:• Execute a manual individual planning run• Convert purchase requisitions into purchase orders automatically• Settle goods receipts automatically

Business ExampleIn the future, one of your materials is to be planned automatically using materialrequirements planning. A source of supply is to be determined during the MRPrun so that you can convert the purchase requisition into a purchase orderautomatically. You have also agreed with the vendor that you will use evaluatedreceipt settlement. After maintaining the master data for the process, you test itto ensure that no errors occur.

Task 1: Automatic Determination of Requirements andAutomatic Generation of Purchase OrdersYou determine the requirement for the ball bearing T-M500D## using MRP andthen immediately convert the created purchase requisition into a purchase order.To check the effects of these activities on the availability of the material, youview the current stock/requirements list.

1. Display the stock/requirements list

You require information on the availability of material T-M500D##. Call thestock/requirements list for this material in plant 1000.

Which MRP elements are displayed for this material and what is theavailable stock level?

Field Name Entry

MRP element

Available qty

2. Carry out a single-item planning run.

Carry out a one-step, single-item planning run for this material for plant1000 as a net change planning run using processing key NETCH. You wantto create purchase requisitions. You also want to create an MRP list todocument the result. Do not display the result.





Display the stock/requirements list for the material in plant 1000 again.Which MRP element is also displayed in the list?

________________________________________________________

Branch to the MRP element and make entries in the following table.

Field Name Entry

Quantity

Delivery date

Fixed vendor

4. Create a purchase order automatically

Carry out the function for automatically creating a purchase order forthis purchase requisition online. Select the purchase requisitions for yourpurchasing group T## that have been assigned to vendor T-K500C## inplant 1000. You require a detailed log with all messages. Converted purchaserequisitions should also always be marked as set.

Hint: The function for the automatic creation of purchaserequisitions is in the Purchasing menu under Purchase Order →Create → Automatically via Purchase Requisitions.

What message is displayed when the function is executed successfully?

_____________________________________________________________


Display the stock/requirements list for the material in plant 1000 again.Which procurement proposals does the system suggest?

________________________________________________________

Display the procurement element and make entries in the following table.

Field Name Entry

PO Quantity

Net price

Tax code

GR-based IV

ERS

What was the source of the price?Continued on next page



________________________________________________________

Task 2: Goods Receipt and Evaluated ReceiptSettlementThe ordered ball bearing T-M500D## has been delivered and you enter the goodsreceipt. Directly after that, you automatically settle the delivery.

1. Enter goods receipt

The vendor T-K500C## sends you the ordered material T-M500D##according to the purchase order. Enter the goods receipt in storage location0001 in plant 1000.

Material document number: ______________________________


Finally, check again the available stock for material T-M500D## in plant1000. What is the actual available quantity and which MRP elements doesthe list still contain?

________________________________________________________

3. Settle the goods receipt automatically

Settle the goods receipts you entered today for creditor T-K500C## incompany code 1000. You should create a separate invoice for each orderitem. Use the test mode first to make sure that you have selected the correctgoods receipts. Then execute automatic settlement and note the documentnumber.

Invoice document: ______________________________

Hint: Do not leave the list when this task finishes.

4. Display invoice document

Display the invoice document and the corresponding accounting document.Make a note of the vendor account number and the amount in liabilitiesincurred toward the vendor.

Account number: ______________________________

Amount: ______________________________


Finally, check the purchase order history of the order item. What transactionsare listed in the purchase order history?

________________________________________________________




________________________________________________________

________________________________________________________



Solution 28: Automation – ProcessTask 1: Automatic Determination of Requirements andAutomatic Generation of Purchase OrdersYou determine the requirement for the ball bearing T-M500D## using MRP andthen immediately convert the created purchase requisition into a purchase order.To check the effects of these activities on the availability of the material, youview the current stock/requirements list.


You require information on the availability of material T-M500D##. Call thestock/requirements list for this material in plant 1000.

Which MRP elements are displayed for this material and what is theavailable stock level?

Field Name Entry

MRP element Stock

Available qty 0

a) Choose Logistics → Materials Management → Material RequirementsPlanning (MRP) → MRP → Evaluations → Stock/Reqmts List(transaction MD04).

b) On the Individual access tab, enter material T-M500D## and plant1000.


c) Only MRP element Stock is displayed.

2. Carry out a single-item planning run.




Carry out a one-step, single-item planning run for this material for plant1000 as a net change planning run using processing key NETCH. You wantto create purchase requisitions. You also want to create an MRP list todocument the result. Do not display the result.

a) Choose Logistics → Materials Management → Material RequirementsPlanning (MRP) → MRP → Planning → Single Item, Single Level(transaction MD03).


Field Name Entry

Material T-M500D##

Plant 1000

Processing key NETCH

Create purchase requisition 1

Create MRP list 1

Display results before they aresaved

<No entry>

c) Confirm your entries twice with Enter to execute the planning run.


Display the stock/requirements list for the material in plant 1000 again.Which MRP element is also displayed in the list?

________________________________________________________

Branch to the MRP element and make entries in the following table.




Field Name Entry

Quantity 300 (pieces)

Delivery date <Current date + planned delivery time +purchasing department processing time

Fixed vendor T-K500C##




c) A second MRP element, PurRqs, is displayed in the list. This is apurchase requisition of 300 pieces of material T-M500D##.

d) Position the cursor on the MRP element and choose Display elementunder the list. The purchase requisition is displayed.

The fixed vendor is in the item details on the Source of supply tab.

4. Create a purchase order automatically

Carry out the function for automatically creating a purchase order forthis purchase requisition online. Select the purchase requisitions for yourpurchasing group T## that have been assigned to vendor T-K500C## inplant 1000. You require a detailed log with all messages. Converted purchaserequisitions should also always be marked as set.

Hint: The function for the automatic creation of purchaserequisitions is in the Purchasing menu under Purchase Order →Create → Automatically via Purchase Requisitions.

What message is displayed when the function is executed successfully?




_____________________________________________________________

a) Choose Logistics → Materials Management → Purchasing →Purchase Order → Create → Automatically via Purchase Requisitions(transaction ME59).

b) Enter the following data in the selection screen:

Field Name Entry


Vendor T-K500C##

Plant 1000

Detailed log 2

Set requisitions to closed 2

c) Choose Execute to start the program.

d) When the function is complete, the system issues the followingmessages: “Purchase order created successfully” and “Purchaserequisition converted successfully”.


Display the stock/requirements list for the material in plant 1000 again.Which procurement proposals does the system suggest?

________________________________________________________

Display the procurement element and make entries in the following table.

Field Name Entry

PO Quantity 300 (pieces)

Net price 9,85

Tax code 1I (10%)

GR-based IV

ERS

What was the source of the price?




________________________________________________________




c) As a result of the automatic conversion of the purchase requisition intoa purchase order, MRP element PurRqs is no longer displayed. Instead,POitem is displayed for the purchase order.

d) Position the cursor on the MRP element and choose Display elementunder the list. The purchase order is displayed.

In the item overview, you can see the entries for quantity and price. Theindicator is in the item detail data on the Invoice tab.

e) The price was transferred from the conditions of the info record.

Task 2: Goods Receipt and Evaluated ReceiptSettlementThe ordered ball bearing T-M500D## has been delivered and you enter the goodsreceipt. Directly after that, you automatically settle the delivery.

1. Enter goods receipt

The vendor T-K500C## sends you the ordered material T-M500D##according to the purchase order. Enter the goods receipt in storage location0001 in plant 1000.




Material document number: ______________________________

a) Choose Logistics → Materials Management → Inventory Management→ Goods Movement → Goods Movement (MIGO).

b) Choose Goods Receipt as the transaction and Purchase Order as thereference.

c) Enter movement type 101 and confirm your entries with Enter.

d) Enter the purchase order number.

You can also search for the purchase order. Choose Search for POand enter vendor T-K500C## and material T-M500D##. Choose

Find to start the search. Double-click in the search result on thepurchase order to copy the data.

e) Set the OK indicator and enter storage location 0001 in the item.

f) Choose Post.


Finally, check again the available stock for material T-M500D## in plant1000. What is the actual available quantity and which MRP elements doesthe list still contain?

________________________________________________________




c) Only MRP element Stock is still displayed in the list. The availablestock is 300 pieces.

3. Settle the goods receipt automatically

Settle the goods receipts you entered today for creditor T-K500C## incompany code 1000. You should create a separate invoice for each orderitem. Use the test mode first to make sure that you have selected the correctgoods receipts. Then execute automatic settlement and note the documentnumber.




Invoice document: ______________________________

Hint: Do not leave the list when this task finishes.

a) Choose Logistics → Materials Management → Logistics InvoiceVerification → Automatic Settlement → Evaluated Receipt Settlement(ERS) (transaction MRRL).

b) Enter the following data on the initial screen.

Field Name Entry

Company code 1000

Posting date of goods receipt <Today>

Vendor T-K500C##

Document selection 3

Test run

c) Choose Execute.

An item is selected for settlement. From the overview, you can seethat the item can be posted.

d) Choose Back to return to the initial screen.

e) Deselect the Test run indicator.

f) Choose Execute to execute the settlement.

4. Display invoice document

Display the invoice document and the corresponding accounting document.Make a note of the vendor account number and the amount in liabilitiesincurred toward the vendor.

Account number: ______________________________




Amount: ______________________________

a) If you still have the result list of the ERS displayed, you can click onthe document numbers (DocNo and FI Document fields) to display theinvoice document and the accounting document.

Account number: T-K500C##

Amount: EUR 3250.50

b) Alternatively:

Choose Logistics → Materials Management → Logistics InvoiceVerification → Further Processing → Display Invoice Document(transaction MIR4).

Enter the invoice number from an earlier task and the document year,and confirm your entry with Enter. Choose Follow-on documents ... todisplay the accounting document.


Finally, check the purchase order history of the order item. What transactionsare listed in the purchase order history?

________________________________________________________

________________________________________________________

________________________________________________________

a) Choose Logistics → Materials Management → Purchasing →Purchase Order → Display (transaction ME23N).

b) Choose Other purchase order and enter the purchase order numberfrom task 1.4. Choose Other Document.

c) Choose the PO History tab page in the item details.

The purchase order history lists the goods receipt document and theinvoice verification document from the ERS settlement.



Lesson Summary

You should now be able to:• Start an individual planning run and evaluate the result• Explain automatic source determination• Create purchase orders automatically• Settle goods receipts automatically


Unit Summary TSCM50

Unit SummaryYou should now be able to:• Start an individual planning run and evaluate the result• Explain automatic source determination• Create purchase orders automatically• Settle goods receipts automatically



Test Your Knowledge

1. Which of the objects listed below are a source of supply in SAP ERP?Choose the correct answer(s).□ A Plant□ B Purchasing info record□ C Blanket Purchase Order□ D Source list□ E Outline agreement item

2. Which indicator must be set in the source list for a source of supply in orderfor this source to be taken into account in requirements planning?Choose the correct answer(s).□ A Deleted□ B Fixed□ C Blocked□ D MRP-relevant□ E Source list requirement

3. Name the necessary prerequisites to automatically convert a purchaserequisition item into a purchase order.

4. Invoices that were created by evaluated receipt settlement are generallyblocked for payment and are released automatically when the message isissued.Determine whether this statement is true or false.□ True□ False



5. For the evaluated receipt settlement, the following prerequisites must befulfilled:Choose the correct answer(s).□ A The purchase order must be created automatically.□ B The ERS delivery indicator must be set in the vendor master

record.□ C The ERS indicator must be set in the purchase order.□ D A tax code must be specified in the order item.□ E Freight conditions cannot be included in the PO price.□ F The GR-based IV indicator must be set in the purchase order item.



Answers

1. Which of the objects listed below are a source of supply in SAP ERP?

Answer: A, B, E

Outline agreement items can be divided into scheduling agreements andcontracts.

2. Which indicator must be set in the source list for a source of supply in orderfor this source to be taken into account in requirements planning?

Answer: D

3. Name the necessary prerequisites to automatically convert a purchaserequisition item into a purchase order.

Answer:

• The purchase requisition item must have a valid source of supplyassigned to it.

• The Automatic PO indicator must be set in the material master record.• The Automatic PO indicator must be set in the vendor master record.• During the conversion, no additional entries are necessary, such as

the tax code for the evaluated receipt settlement or entries for theaccount assignment for account assignment category U in the purchaserequisition item.

4. Invoices that were created by evaluated receipt settlement are generallyblocked for payment and are released automatically when the message isissued.

Answer: False



5. For the evaluated receipt settlement, the following prerequisites must befulfilled:

Answer: B, C, D, F

For A: How the purchase order was created is irrelevant for evaluated receiptsettlement.For B and C: The indicator can be set in a purchasing document only if it isalso set in the vendor master record.For E: Freight conditions are permitted, but they must be specified duringthe settlement or settled via a separate program.


TSCM50 Course Summary

Course SummaryYou should now be able to:

• Create, change and display material master records and vendor masterrecords

• Create, change, and display purchase requisitions, requests for quotations,contracts, and purchase orders

• Enter goods receipts and incoming invoices and display and analyze thedocuments generated when they are posted

• Distinguish between material valuation according to the moving averageprice procedure and valuation according to the standard price procedure

• Describe and understand the procurement process for services• Carry out simple evaluations in the SAP System• Perform and evaluate a planning run• Describe and perform simple automation of the procurement process

(optional)


Course Summary TSCM50


Appendix 1Important Menu Paths

Activity Menu path Transactioncode

Application (SAP Menu)

Creating RFQs Logistics → Materials Management→ Purchasing → RFQ/Quotation →Request for Quotation → Create

ME41

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

ME9A

Compare quotation(price comparison)

Logistics → Materials Management→ Purchasing → RFQ/Quotation →Quotation → Price Comparison

ME49

Maintain quotation Logistics → Materials Management→ Purchasing → RFQ/Quotation →Quotation → Maintain

ME47

Evaluated receiptsettlement

Logistics→ Materials Management→ Logistics Invoice Verification →Automatic Settlement → EvaluatedReceipt Settlement (ERS)

MRRL

Stock/requirementslist

Logistics → Materials Management→ Material Requirements Planning(MRP) → MRP → Evaluations →Stock/Reqmts List

MD04

Materialrequirementsplanning: single-item planning

Logistics → Materials Management→ Material Requirements Planning(MRP) → MRP → Planning →Single-Item, Single-Level

MD03


Appendix 1: Important Menu Paths TSCM50


Materialrequirementsplanning: Totalplanning

Logistics → Materials Management→ Material Requirements Planning(MRP) → MRP → Planning → TotalPlanning → Online

MD01

Stock overview Logistics → Materials Management→ Inventory Management →Environment → Stock → StockOverview

MMBE

Create a purchaserequisition

Logistics → Materials Management→ Purchasing → PurchaseRequisition → Create

ME51N

Change/displaypurchase requisition

Logistics → Materials Management→ Purchasing → PurchaseRequisition → Change (Display)

ME52N /ME53N

Create purchaseorder

Logistics → Materials Management→ Purchasing → Purchase Order →Create → Vendor/Supplying PlantKnown

ME21N

Change/displaypurchase order

Logistics → Materials Management→ Purchasing → Purchase Order →Change (Display)

ME22N /ME23N

Print purchase ordermessage

Logistics → Materials Management→ Purchasing → Purchase Order →Messages → Print/Transmit

ME9F

MRP list -individual display

Logistics → Materials Management→ Material Requirements Planning(MRP) → MRP → Evaluations →MRP List - Material

MD05

MRP list - collectivedisplay

Logistics → Materials Management→ Material Requirements Planning(MRP) → MRP → Evaluations →MRP List - Coll. Displ.

MD06

Create/change/dis-play MRP profile

Logistics → Materials Management→Material Master→ Profile→MRPProfile → Create (Change/Display)

MMD1 / MMD2/ MMD3

MRP profile:display usage

Logistics → Materials Management→ Material Master → Profile →MRP Profile → Usage

MMD7


TSCM50 Appendix 1: Important Menu Paths


Purchasing groupanalysis

Logistics → Logistics Controlling →Purchasing Information System →Standard Analyses → Purchasing →Purchasing Group

MCE1

Release blockedinvoices

Logistics → Materials Management→ Logistics Invoice Verification→ Further Processing → ReleaseBlocked Invoices

MRBR

Create/change/dis-play info record

Logistics → Materials Management→ Purchasing→Master Data→ InfoRecord → Create (Change/Display)

ME11 / ME12 /ME13

Display info recordsfor vendor/material

Logistics → Materials Management→ Purchasing → Master Data →Info Record → List Displays → ByVendor (By Material)

ME1L / ME1M

Analysis of storagelocation

Logistics → Logistics Controlling →Inventory Controlling → StandardAnalyses → Storage Location

MCBC

Create storagelocation data

Logistics → Materials Management→ Material Master → Other → EnterStorage Locations

MMSC

Maintain serviceentry

Logistics → Materials Management→ Service Entry Sheet → Maintain

ML81N

Create/change/dis-play service condi-tions by service

Logistics → Materials Management→ Service Master → Service →Service Conditions → For Service →Add (Change/Display)

ML45 / ML46 /ML47

Create/change/dis-play service con-ditions for vendor(without plant)

Logistics → Material Management →Service Master → Service → ServiceConditions → For Vendor WithoutPlant → Add (Change/Display)

ML39 / ML40 /ML41

Create/change/dis-play service con-ditions for vendor(with plant)

Logistics → Material Management →Service Master → Service → ServiceConditions → For Vendor with Plant→ Add (Change/Display)

ML33 / ML34 /ML35

Service master Logistics → Materials Management→ Service Master → Service →Service Master

AC03




Create/change/dis-play vendor masterrecord

Logistics → Materials Management→ Purchasing → Master Data→ Vendor → Central → Create(Change/Display)

XK01 / XK02 /XK03

List of RFQsby vendor/mate-rial/collective num-ber

Logistics → Materials Management→ Purchasing → RFQ/Quotation →RFQ → List Displays → By Vendor(By Material/By Collective Number)

ME4L / ME4M /ME4S

List of purchaserequisitions

Logistics → Materials Management→ Purchasing → PurchaseRequisition → List Displays →General

ME5A

List of purchaseorders forvendors/for material

Logistics → Materials Management→ Purchasing → Purchase Order→ List Displays → By Vendor (ByMaterial)

ME2L / ME2M

List of InvoiceDocuments

Logistics → Materials Management→ Logistics Invoice Verification →Further Processing → Display List ofInvoice Documents

MIR5

Display the materialdocument

Logistics → Materials Management→ Inventory Management → GoodsMovement → Goods Movement(MIGO).

MIGO

List of materialdocuments

Logistics → Materials Management→ Inventory Management →Environment → List Displays →Material Documents

MB51

Create materialmaster record

Logistics → Materials Management→ Material Master → Material →Create (General) → Immediately

MM01

Change materialmaster record

Logistics → Materials Management→ Material Master → Material →Change → Immediately

MM02

Display materialmaster record

Logistics → Materials Management→ Material Master → Material →Display → Display Current

MM03

Display materialmaster recordchanges

Logistics → Materials Management→ Material Master → Material →Display Changes → Active Changes

MM04




Materials list Logistics → Materials Management→ Material Master → Other →Materials List

MM60

Convert planned or-der (individual/col-lective conversion)

Logistics → Materials Management→ Material Requirements Planning(MRP) → MRP → Planned Order →Convert to Pur. Req. → IndividualConversion (Collective Conversion)

MD14 / MD15

Display planningfile entry

Logistics → Materials Management→ Material Requirements Planning(MRP) → MRP → Planning →Planning File Entry → Display

MD21

Enter Invoice Logistics → Materials Management→ Logistics Invoice Verification →Document Entry → Enter Invoice

MIRO

Display invoicedocument

Logistics → Materials Management→ Logistics Invoice Verification→ Further Processing → DisplayInvoice Document

MIR4

Output invoiceverificationmessage

Logistics → Materials Management→ Logistics Invoice Verification→ Further Processing → OutputMessages

MR90

Invoice overview Logistics → Materials Management→ Logistics Invoice Verification→ Further Processing → InvoiceOverview

MIR6

Enter transferposting

Logistics → Materials Management→ Inventory Management → GoodsMovement → Goods Movement(MIGO).

MIGO

Enter goods receipt Logistics → Materials Management→ Inventory Management → GoodsMovement → Goods Movement(MIGO)

MIGO

Customizing




Access toCustomizing

→ Tools → Customizing → IMG →Execute Project → SAP ReferenceIMG

SPRO

Define and groupexception messages

Materials Management →Consumption-Based Planning→ Evaluation → Exception Messages→ Define and Group ExceptionMessages

OMD3

Activate materialrequirementsplanning

Materials Management →Consumption-Based Planning→ Planning → Activate MaterialRequirements Planning

OMDU

Maintain MRPgroups

Materials Management →Consumption-Based Planning→MRP Groups → Carry Out OverallMaintenance of MRP Groups

OPPZ

Define MRP groupsfor each materialtype

Materials Management →Consumption-Based Planning→ MRP Groups → Define MRPGroup for Each Material Type

OMIG

Define MRPcharacteristics

Materials Management →Consumption-Based Planning→ Master Data → Check MRP Types

OMDQ

Define lot-sizingprocedures

Materials Management →Consumption-Based Planning→ Planning → Lot-Size Calculation→ Define Lot-Sizing Procedure

OMI4

Define materialstatus

Logistics - General → MaterialMaster → Settings for Key fields →Define Material Statuses

OMS4




Define navigationprofile

Materials Management →Consumption-Based Planning→ Evaluation → Define NavigationProfiles

OM0K

Define scope ofplanning for overallplanning

Materials Management →Consumption-Based Planning→ Planning → Define Scope ofPlanning for Total Planning

OM0E

Display plantparametersfor materialrequirementsplanning

Materials Management →Consumption-Based Planning→ Plant Parameters → CarryOut Overall Maintenance of PlantParameters

OMI8


IndexAaccess sequence, 142account assignment category,266, 270, 276unknown (U), 278, 294,333, 368

Account group, 79accounting document, 36,213–214, 237–238

ALV Grid Control, 400automatic accountdetermination, 37

Bblanket purchase order, 329,331

Ccalculation schema, 142Client, 10collective entry of storagelocation data, 112

Collective Number, 146Company code, 10Company structure, 10, 12condition type, 141conditions, 139

scales, 141time-dependent, 140time-independent, 140

confirmation control key, 296Consumable material, 265Current stock/requirementslist, 526

current stock/requirements listcollective access, 529

Current stock/requirementslist individual access, 527

DDays' supply, 535delivery costs, 239display variant, 401document overview, 21, 167

configure, 170layout, 169selection variant, 168

Eentry of services performed

transaction ML81N, 376evaluation profile, 530Exception messages, 533external service

limit for unplanned, 366procurement of, 354,365–366

FFilter, 527Fixed lot size

Fixed lot size, 548Forecast indicator, 452Forward scheduling, 473Framework order, 333Ggoods movement

transaction MIGO, 39goods receipt, 36

against purchase order, 36,41documents, 36, 213non-valuated, 308–309transaction MIGO, 39valuated, 308–309

Goods receipt processingtime, 473


Index TSCM50

IIndustry sector, 96–97info update indicator, 150, 185information structure,418–419

intelligent search help, 22invoice document, 237–238invoice overview, 407, see LIS

invoice verification, 52enter invoice, 56transaction MIRO, 54, see invoice verification

item category, 333limit (B), 333service (D), 368, see service

Llayout, 169, 401limit, 331, 366LIS, 416

basic structure, 417characteristic, 419key figure, 419

Logistics Data Warehouse,418

Lot-for-lot order quantity, 548Lot-size calculation, 496, 546Lot-sizing procedures, 547Low-level code, 497MMass maintenance, 124Master Data, 76material document, 36,213–214display, 43

material master recordaccounting data, 201additional data, 94collective entry of storagelocation data, 112create, 95entry aids, 110extend, 98main data, 94

profiles, 112reference material, 112view, 93

Material master record, 92material status, 458Material tree, 531Material type, 96material valuation, 199, 203

examples, 204procedure, 203

message, 25movement type, 37moving average price, 203MRP group, 505MRP list, 515, 526MRP list collective display,530

MRP list individual access,527

MRP procedures, 447MRP profile, 455MRP type, 452multiple account assignment,268, 277

NNavigation profile, 532Net requirements calculation,472, 496

non-stock material (NLAG),266

non-valuated material, 266OOne-Time Vendor, 80, 146online analytical processing(OLAP), 418

Online Transaction Processing(OLTP), 418

order acknowledgement, 295Order type, 333Organizational level, 9, 12overview tree, 39PPartner roles, 81Period totals, 528, 534


TSCM50 Index

periodic lot-sizing, 549Planned delivery time, 473Planned order, 516Planning file entry

Planning file, 494Planning horizon, 501Planning mode, 504Planning run types, 499Planning scope, 492Plant, 10Plant parameters, 504price comparison, 150Price determination, 183procedure

configure documentoverview, 170create purchase order, 24creating RFQs, 148display materialdocument, 43enter invoice, 56entering quotations, 151goods receipt againstpurchase order, 41issue message, 27service entry, 377

Procurement type, 496Profiles, 112purchase order, 18

create, 24create with reference, 166document overview, 21,167issue message, 27message, 25personal settings, 21transaction ME21N, 21

purchase requisition, 274convert to purchase order,293create, 275creation indicator, 280processing status, 280

Purchasing departmentprocessing time, 473

Purchasing group, 12

purchasing info recordmaintain, 184

Purchasing info record, 182purchasing organization

cross-company-code, 15cross-plant, 14plant-specific, 13

Purchasing organization, 12Qquotation, 146, 150

enter, 151quotation price comparisonlist, 150

RReconciliation account, 81rejection, 150Reorder point, 471Replenish to maximum stocklevel, 548

reports and analysesinventory management,405invoice verification, 407purchasing, 402

request for quotation (RFQ)create, 148

RFQ, 144Rounding value, 550SSafety stock, 471SAP List Viewer, 400scales, 141Scheduling, 496scope-of-list parameter, 404selection parameters, 403selection variant, 168, 402Service conditions, 357service entry, 374service entry sheet, 374

create and accept, 377service master record, 356

transaction AC03, 357service specification

outline, 368


Index TSCM50

service specifications, 367shipping notification, 295–296Single-item planning, 493single-screen transaction, 21,39, 54

Source of supply, 293standard analysis, 421standard price, 203standard report, 398static lot-sizing procedure,548

stock overview, 210stock type, 211Storage location, 11TTotal planning, 492transaction

transaction MIRO, 55

transaction ME21N, 21transaction MIGO, 39

overview tree, 39personal default values, 40transaction/event, 40

transaction MIRO, 54–55transaction, 55

transaction/eventtransaction MIGO, 40

transfer posting, 212Vvaluation area, 200valuation class, 202valuation price, 199vendor master record

entry aid, 109Vendor master record, 77

block, 82


FeedbackSAP AG has made every effort in the preparation of this course to ensure theaccuracy and completeness of the materials. If you have any corrections orsuggestions for improvement, please record them in the appropriate place in thecourse evaluation.
