Mm-Guide 1

Materials Management User Manual For Duro Shox Pvt Limited
1.0
Version
USER PROCEDURE MANUAL

TABLE OF CONTENTS
Duro Shox Pvt Limited________________________________________________1
1 Procurement of Stock Materials .............................................................................................................10

1.1
Procurement of Stock Materials Raw Material Local / Return___________10
1.1.1 Purpose.....................................................................................................................................................10
1.1.2 Prerequisites .............................................................................................................................................10
1.1.3 Material Master Record..............................................................................................................................10
1.1.4 Vendor Master Record...............................................................................................................................24
1.1.5 Purchasing Info Record.............................................................................................................................35
1.1.6 Source List.................................................................................................................................................41
1.1.7 CIN Master Data........................................................................................................................................43
1.1.8 Excise Condition Record............................................................................................................................53
1.2
Request for Quotation (RFQ)_______________________________________56
1.2.1 Use............................................................................................................................................................56
1.2.2 Procedure..................................................................................................................................................56
1.2.3 Result.........................................................................................................................................................61
1.2.4 Example ....................................................................................................................................................61
1.3
Message output: RFQ_____________________________________________61
1.3.1 Use............................................................................................................................................................61
1.3.2 Procedure..................................................................................................................................................61
1.4
Maintaining Quotation ____________________________________________64
1.4.1 Use............................................................................................................................................................64
1.4.2 Procedure..................................................................................................................................................64
1.4.3 Result ........................................................................................................................................................66
1.4.4 Example ....................................................................................................................................................66
1.5
Price Comparison ________________________________________________67
1.5.1 Use............................................................................................................................................................67
1.5.2 Procedure..................................................................................................................................................67
1.5.3 Result ........................................................................................................................................................69
1.6
Creating Purchase Requisition _____________________________________69
1.6.1 Use............................................................................................................................................................69
1.6.2 Procedure..................................................................................................................................................69
1.6.3 Result ........................................................................................................................................................70
1.6.4 Example.....................................................................................................................................................70
1.7
Release Purchase Requisition______________________________________70
1.7.1 Procedure..................................................................................................................................................71
1.8.
Assign and Process Purchase Requisition___________________________74
1.8.1 Use...........................................................................................................................................................74
1.8.2 Procedure..................................................................................................................................................74
1.8.3 Result ........................................................................................................................................................76
1.9
Purchase Order__________________________________________________77
1.9.1 Use............................................................................................................................................................77
1.9.2 Procedure..................................................................................................................................................77
1.9.3 Result ........................................................................................................................................................82
1.9.4 Example ....................................................................................................................................................82
Confidential Page 3 of 316

1.0
Version
1.10. Release Purchase Order_________________________________________83

1.10.1. Procedure............................................................................................................................................83
1.11Message Output_________________________________________________87
1.11.1 Use.........................................................................................................................................................87
1.11.2 Procedure................................................................................................................................................87
1.12
Goods Receipt for Purchase Order_________________________________89
1.12.1 Use..........................................................................................................................................................89
1.12.2 Prerequisites ...........................................................................................................................................89
1.12.3 Procedure................................................................................................................................................89
1.12.4 Result ......................................................................................................................................................99
Material document 5000000009 posted...............................................................................................99
1.12.5 Example ..................................................................................................................................................99
1.13
Logistics Invoice Verification____________________________________100
1.13.1 Use........................................................................................................................................................100
1.13.2 Procedure..............................................................................................................................................100
1.13.3 Result ....................................................................................................................................................105
1.13.4 Example ................................................................................................................................................105
1.14
Returning Delivery _____________________________________________106
1.14.1 Use........................................................................................................................................................106
1.14.2 Procedure..............................................................................................................................................106
1.14.3 Result ....................................................................................................................................................113
Return Delivery document created..................................................................................................................113
1.14.4 Example ................................................................................................................................................113
1.15
Excise Invoice Other Movements__________________________________114
1.15.1 Procedure..............................................................................................................................................114
1.15.2 Result ....................................................................................................................................................116
1.15.3 Example ................................................................................................................................................116
1.16
Posting and Printing the Excise Invoice____________________________117
1.16.1 Use........................................................................................................................................................117
1.16.2 Prerequisites .........................................................................................................................................117
1.16.3 Procedure..............................................................................................................................................117
1.16.4 Result ....................................................................................................................................................120
1.17
Credit Memo___________________________________________________121
1.17.1 Use........................................................................................................................................................121
1.17.2 Prerequisites .........................................................................................................................................121
1.17.3 Procedure..............................................................................................................................................121
1.17.4 Result ....................................................................................................................................................127
1.17.5 Example ................................................................................................................................................127
1.18
Reversals / Cancellation of Invoice or Credit Memo __________________127
1.18.1 Use........................................................................................................................................................127
1.18.2 Prerequisites..........................................................................................................................................128
1.18.3 Procedure..............................................................................................................................................128
1.18.4 Result.....................................................................................................................................................133
1.18.5 Example.................................................................................................................................................133
1.19
Reversals / Cancellation of Goods Receipt (GR) _____________________134
1.19.1 Use........................................................................................................................................................134
1.19.2 Prerequisites..........................................................................................................................................134
1.19.3 Procedure..............................................................................................................................................134
1.19.4 Result ....................................................................................................................................................139

1.0
Version
1.19.5 Example ................................................................................................................................................139
1.20
Reversing CENVAT Postings _____________________________________140
1.20.1 Purpose.................................................................................................................................................140
1.20.2 Prerequisites .........................................................................................................................................140
1.20.3 Procedure..............................................................................................................................................140
1.20.4 Result.....................................................................................................................................................144
1.20.5 Example.................................................................................................................................................144
1.21
Canceling Excise Invoices _______________________________________145
1.21.1 Purpose.................................................................................................................................................145
1.21.2 Prerequisites .........................................................................................................................................145
1.21.3 Procedure..............................................................................................................................................145
1.21.4 Result.....................................................................................................................................................150
1.21.5 Example.................................................................................................................................................150
2 Procurement of Imported Materials Business Process Procedure....................................................151

2.1 Procurement of Imported Materials________________________________151
2.1.1 Purpose..................................................................................................................................................151
2.1.2 Prerequisites ...........................................................................................................................................151
2.2 Creating Purchase Order ________________________________________152

2.2.1 Use.........................................................................................................................................................152
2.2.2 Prerequisites ...........................................................................................................................................152
2.2.3 Procedure................................................................................................................................................152
2.2.4 Result ......................................................................................................................................................158
2.2.5 Example ..................................................................................................................................................158
2.3
Release Purchase Order__________________________________________159
2.3.1 Procedure................................................................................................................................................159
2.4
Message Output_________________________________________________162
2.4.1 Use..........................................................................................................................................................162
2.4.2 Procedure................................................................................................................................................162
2.5
CAPTURING BILL OF ENTRY_____________________________________164
2.5.1 Use..........................................................................................................................................................164
2.5.2 Procedure................................................................................................................................................164
2.5.3 Result ......................................................................................................................................................171
2.5.4 Example ..................................................................................................................................................171
2.6
Goods Receipt for Imported Purchase Order_________________________172
2.6.1 Use..........................................................................................................................................................172
2.6.2 Procedure................................................................................................................................................172
2.6.3 Result ......................................................................................................................................................183
2.6.4 Example ..................................................................................................................................................183
2.7
Logistics Invoice Verification for the Materials_______________________184
2.7.1 Use..........................................................................................................................................................184
2.7.2 Procedure................................................................................................................................................184
2.7.3 Result ......................................................................................................................................................190
2.7.4 Example ..................................................................................................................................................190
3 Procurement of Subcontracting Materials Business Process Procedure..........................................191

3.1
Procurement of Subcontracting Materials___________________________191
3.1.1 Purpose...................................................................................................................................................191
3.1.2 Prerequisites ...........................................................................................................................................191

1.0
3.2
Version
Creation of Subcontracting Purchase Order__________________________192
3.2.1 Use..........................................................................................................................................................192
3.2.2 Prerequisites ...........................................................................................................................................192
3.2.3 Procedure................................................................................................................................................192
3.2.4 Result ......................................................................................................................................................196
3.2.5 Example ..................................................................................................................................................196
3.3
Message Output_________________________________________________197
3.3.1 Use..........................................................................................................................................................197
3.3.2 Procedure................................................................................................................................................197
3.4
Transfer of Components to Subcontractor___________________________199
3.4.1 Use..........................................................................................................................................................199
3.4.2 Prerequisites ...........................................................................................................................................199
3.4.3 Procedure................................................................................................................................................199
3.4.4 Result ......................................................................................................................................................201
3.4.5 Example ..................................................................................................................................................202
3.5
Creation of Subcontracting Challan_________________________________202
3.5.1 Use..........................................................................................................................................................202
3.5.2 Prerequisites............................................................................................................................................202
3.5.3 Procedure................................................................................................................................................202
3.5.4 Result ......................................................................................................................................................204
3.5.5 Example ..................................................................................................................................................204
3.6 Printing of Subcontracting Challan________________________________205

3.6.1 Use.........................................................................................................................................................205
3.6.2 Procedure................................................................................................................................................205
3.7
Goods Receipt for Purchase Order _________________________________209
3.7.1 Use..........................................................................................................................................................209
3.7.2 Prerequisites ...........................................................................................................................................209
3.7.3 Procedure................................................................................................................................................209
3.7.4 Result ......................................................................................................................................................217
3.7.5 Example ..................................................................................................................................................217
3.8
Reconciling Subcontracting Challan________________________________218
3.8.1 Use..........................................................................................................................................................218
3.8.2 Procedure................................................................................................................................................218
3.8.3 Result ......................................................................................................................................................220
3.8.4 Example ..................................................................................................................................................220
3.9
Completing/Reversal/Re-credit Subcontracting Challan________________221
3.9.1 Use..........................................................................................................................................................221
3.9.2 Procedure................................................................................................................................................221
3.9.3 Result ......................................................................................................................................................222
3.9.4 Example ..................................................................................................................................................222
3.10
Logistics Invoice Verification for Subcontracting Material_____________222
3.10.1 Use........................................................................................................................................................222
3.10.2 Procedure..............................................................................................................................................222
3.10.3 Result ....................................................................................................................................................226
3.10.4 Example ................................................................................................................................................226
5. Procurement of External Services: Business Process Procedure.......................................................227

5.1
Procurement of External Services Procurement Process_____________227
5.1.1 Purpose...................................................................................................................................................227
5.1.2 Prerequisites ...........................................................................................................................................227

1.0
5.2
Version
Creating Service Master__________________________________________228
5.2.1 Use..........................................................................................................................................................228
5.2.2 Procedure................................................................................................................................................228
5.2.3 Result ......................................................................................................................................................229
5.3
Creating Purchase Requisition ____________________________________230
5.3.1 Use..........................................................................................................................................................230
5.3.2 Procedure................................................................................................................................................230
5.3.3 Result ......................................................................................................................................................235
5.3.4 Example...................................................................................................................................................235
5.4
Assign and Process Purchase Requisition___________________________236
5.4.1 Use..........................................................................................................................................................236
5.4.2 Procedure................................................................................................................................................236
5.4.3 Result ......................................................................................................................................................239
5.6 Purchase Order_________________________________________________239

5.6.1 Use.........................................................................................................................................................239
5.6.2 Prerequisites ...........................................................................................................................................240
5.6.3 Procedure................................................................................................................................................240
5.6.4 Result ......................................................................................................................................................242
5.6.5 Example ..................................................................................................................................................243
5.7
For Releasing Purchase Order Refer User Manual of Stock Procurement_243
5.8
Message Output_________________________________________________243
5.8.1 Use..........................................................................................................................................................243
5.8.2 Procedure................................................................................................................................................243
5.9
Creation and Acceptance of Service Entry Sheet _____________________245
5.9.1 Use..........................................................................................................................................................245
5.9.2 Procedure................................................................................................................................................246
5.9.3 Result ......................................................................................................................................................256
5.9.4 Example ..................................................................................................................................................256
5.10
Logistics Invoice Verification_____________________________________257
5.10.1 Use........................................................................................................................................................257
5.10.2 Procedure..............................................................................................................................................257
5.10.3 Result ....................................................................................................................................................261
5.10.4 Example ................................................................................................................................................261
6 Asset Procurement Business Process Procedure...............................................................................262

6.1
Purchase Order_________________________________________________262
6.1.1 Use..........................................................................................................................................................262
6.1.2 Procedure................................................................................................................................................262
6.1.3 Result.......................................................................................................................................................266
6.2
Release of Purchase Order _______________________________________266
6.2.1 Procedure................................................................................................................................................266
6.3
Goods Receipt for Purchase Order_________________________________267
6.3.2 Use..........................................................................................................................................................267
6.3.3 Prerequisites ...........................................................................................................................................267
6.3.4 Procedure................................................................................................................................................267
6.2.3 Result.......................................................................................................................................................269
6.4
Post Excise Invoice______________________________________________269
6.4.1 Procedure...............................................................................................................................................269

1.0
Version
6.4.2 Result......................................................................................................................................................271
6.5
Logistics Invoice Verification______________________________________272
6.5.1 Use..........................................................................................................................................................272
6.5.2 Procedure................................................................................................................................................272
6.5.3 Result.......................................................................................................................................................275
7 Excise Periodic Processing Business Process Procedure..................................................................276

7.1
Excise Periodic Processing _______________________________________276
7.1.1 Purpose...................................................................................................................................................276
7.1.2 Prerequisites............................................................................................................................................276
7.2
Excise Report - CENVAT Register __________________________________277
7.2.1 Use..........................................................................................................................................................277
7.2.2 Prerequisites............................................................................................................................................277
7.2.3 Procedure................................................................................................................................................277
7.2.4 Result ......................................................................................................................................................279
7.3 Excise Register Updation....................................................................................................................280

7.3Updation of RG1 Register ________________________________________280
7.3.1 Use..........................................................................................................................................................280
7.3.2 Prerequisites............................................................................................................................................280
7.3.3 Procedure................................................................................................................................................280
7.3.4 Result ......................................................................................................................................................287
7.4
RG1 Register Extraction__________________________________________288
7.4.1 Use..........................................................................................................................................................288
7.4.2 Prerequisites............................................................................................................................................288
7.4.3 Procedure................................................................................................................................................288
7.4.4 Result ......................................................................................................................................................291
7.5
RG1 Register Print Utility_________________________________________292
7.5.1 Use..........................................................................................................................................................292
7.5.2 Prerequisites............................................................................................................................................292
7.5.3 Procedure................................................................................................................................................292
7.5.4 Result ......................................................................................................................................................295
8. PLA Register Extraction.......................................................................................................................295

8.1
PLA Register Extraction__________________________________________295
8.1.1 Use..........................................................................................................................................................295
8.1.2 Prerequisites............................................................................................................................................295
8.1.3 Procedure................................................................................................................................................295
8.1.4 Result ......................................................................................................................................................298
8.2
PLA Register Print Utility_________________________________________298
8.2.1 Use..........................................................................................................................................................298
8.2.2 Prerequisites............................................................................................................................................298
8.2.3 Procedure................................................................................................................................................298
8.2.4 Result ......................................................................................................................................................300
9. Reports .................................................................................................................................................301
7.1
Purchasing____________________________________________________301
7.1.1 Purchasing Documents per Vendor (ME2L)............................................................................................301

7.1.2 Purchasing Documents per Material (ME2M)..........................................................................................302
7.1.3 Source List for Material (ME0M)..............................................................................................................303
7.1.4 Purchase Info Record per Material (ME1M).............................................................................................303

1.0
Version
7.1.5 Purchasing Values(MC$G)......................................................................................................................305
9.2
Inventory_______________________________________________________307
9.2.1 Material Document List (MB51)...............................................................................................................307

9.2.2 Diplay Warehouse Stock (MB52).............................................................................................................309
9.3.3 Stock on Posting Date (MB5B)...............................................................................................................310
9.3.4 Stock Overview (MMBE).........................................................................................................................313
9.3.5 Stock in Transit (MB5T)..........................................................................................................................314
9.3.6 Slow Moving Items (MC46).....................................................................................................................314
Icons
Icon
Meaning
Caution
Example
Note
Recommendation
Syntax
Abbreviations
R
Required entry field

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

Conditional field

1.0
Version
1 Procurement of Stock Materials

1.1 Procurement of Stock Materials Raw Material Local / Return
1.1.1
Purpose
This process describes the procurement process of raw materials from indigenous source of supply with Country
Version India (CIN) relevant process like processing of Excise Duty (ED) and Sales Tax (ST) process.
1.1.2
Prerequisites
The following scenario specific master data must be created for operation of this building block.
1.
2.
3.
4.
5.
6.
Material Master Record

Vendor Master Record
Purchase Info Record (Optional)
Source List (Optional)
CIN Master Data
Excise Condition Record (if Tax applicable for the Vendor-Material Combination)
1.1.3
Menu Path
T Code
Material Master Record

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

1.0
Internal Number
assignment .
Enter the Industry Sector
Enter the Material Type
Press Enter to see the pop-up window.
Version

1.0
Select the required views and press Enter to input the organizational levels.
Version

1.0
Press Enter to input the details of the Material.
1.1.3.1
Basic Data Views
Enter the Material

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

returnable packing as VERP and
non returnable packing as LEIH
Version

1.0
Version
Press Additional Data to

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

1.0
Press Main data to go to the next view
Version

1.0
1.1.3.2
Purchasing Views
Enter the Purchasing Group

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

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

1.0
Enter the PO Text normally

specification is maintained
Version

1.0
1.1.3.3
MRP Views
Enter the appropriate MRP

Type)
Version

1.0
Version

1.0
Work Scheduling View:
Version

1.0
1.1.3.4
Quality Management View
Version

1.0
1.1.3.5
Version
Accounting Views
Enter the appropriate Valuation

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

1.0
1.1.3.6
Version
Costing Views
Enter Respective Profit

Centre of Plant/Depot
After entering all the details, press
to save the Material.

1.0
1.1.4
Menu Path
T Code
Vendor Master Record

Logistics Materials Management Purchasing Master Data Vendor
Central
XK01 Create
XK02 Change
XK03 Display
Vendor Number to be put manually

Enter Company Code
Enter Purchasing Organisation
Enter Account Group (Various
Group given below)
Press Enter to input the details of the vendor.

Vendor Account Groups:
VDOM
Domestic Vendors
VIMP
Import Vendors
VSRV
Service Vendors
Version

1.0
1.1.4.1
General Data
Version

1.0
Click on the CIN Details to enter the

Vendor Excise and Sales Tax details
Version

1.0
Enter all the details in the respective fields
Excise Indicator for Vendor as 1

100% Taxable
Version

1.0
Enter all the details in the respective fields
Version

1.0
Enter the detail in the respective field
Enter whether this vendor is approved or on Probation
Version

1.0
No need to enter in the below screen.
Version

1.0
1.1.4.2
Accounting Data
Enter the appropriate Reconciliation

Accounts (Various Accounts given below)
Reconciliation Accounts:
Version

1.0
Version
Enter the appropriate Payment Terms and

Select the Chk double inv
Enter the appropriate Payment Methods
C Cheque, E Cash Payment, T Bank Transfer
The below screen is explained in detail in FI User Manual:

1.0
1.1.4.3
Version
Purchasing Data
Enter the Order Currency, Terms of

Payment and Incoterms
Enter the appropriate Schema group, Vendor

(Various groups given below)
1. Select GR-based Inv. Verf if Invoice

verification is done after GR
2.. Select the Srv-based Inv. Verf if Invoice
Verification is done after Service Entry sheet.
Schema group, Vendor:

DM
IM
Domestic Schema
Import Schema

1.0
Version
Enter the Partner for the appropriate Partner

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

1.0
1.1.5
Menu Path
T Code
Version
Purchasing Info Record

SAP Easy Access Logistics Materials Management Purchasing Master
Data Info Record Create
ME11 Create
ME12 Change
ME13 - Display
You use this component if you wish to store information on a vendor and a material as master data at purchasing
organization or plant level. You can create purchasing info records for different procurement types (standard,
subcontracting, pipeline, consignment).
Enter the Info Category as

1. Standard For normal Procurement (Domestic, Import, etc)
2. Sub-Contracting For Sub-Contracting
Press enter the details in the Purchasing Info Record.

1.0
If the message is displayed like this,

intimate the Quality Person to maintain
the QM Info Record (TCode: QI01)
Version

1.0
Version
No need to enter anything in the below screen as it copies all the data from the Vendor Master.

1.0
It is defaulted from the Material Master

but change for this Vendor-Material
combination if different.
Enter the Standard Quantity
Enter the appropriate Tax Code
Enter the Net Price
Version

1.0

Version

1.0
1.1.5.1
Result
Purchasing Info Record is created
1.1.5.2
Example
Purchasing Info Record 5300000384 is created.
Version

1.0
1.1.6
Menu Path
T Code
Source List
SAP Easy Access Logistics Materials Management Purchasing Master
Data Source List Maintain
ME01 Maintain
ME03 Display
ME04 - Changes
Enter the Material No. and Plant
Version

1.0
Select if the
Vendor is fixed
Version
Select if the Vendor is blocked for

Procurement for this particular
material alone
Enter 1 to be included
in MRP Run
Maintain the Validity
Period till until which you
will procure this material
from this vendor
Enter the Vendor and

Purchasing Organisation
Result: Source List changed.

1.0
1.1.7
Menu Path
T Code
1.1.7.1
CIN Master Data

J1ILN SAP Menu Indirect Taxes Master Data Excise Rate Maintenance
J1ID
Chapter IDs
Select Chapter ID and Press
Version

1.0
Press New Entries to Create New Chapter ID
Press New Entries to go to the next screen.
Version

1.0
Enter the Chapter ID
Enter the Description as per

law
Press
to save the data.
Version

1.0
1.1.7.2
Material ID and chapter ID combination
Select the Material and Chapter-Id Combination
Select Material and Chapter ID Combination and Press
Version

1.0
Press New Entries to Create New Material Number and Chapter ID

Combination
Version

1.0
Enter the Material No. and Chapter ID Combination
Enter the material type based on

the Material Nature
Press
to save the data.
Version

1.0
1.1.7.3
Vendor Excise Details
Either you can maintain here or else in Vendor Master.
Select the Vendor Excise Details
Version

1.0
Press New Entries to Create Vendor Master Excise

Details
Press
to save the data.
Version

1.0
1.1.7.4
Excise Indicator for Plants
Select the Excise Indicator for Plant
Select Excise Indicator for Plant and Press
Version

1.0
Press New Entries to Create Plant Excise

Details
Press
to save the data.
Version

1.0
1.1.8
1.1.8.1
Excise Condition Record
Use
When you enter a purchasing document, for example, a purchase order, the R/3 System
automatically calculates the applicable excise duties using the condition technique.
1.1.8.2
Procedure
1. Access the transaction choosing one of the following navigation options:
SAP R/3 menu
No Menu path available for this transaction
Transaction code
FV11
2. Enter the appropriate Condition type (various condition types given in next page) and maintain the
respective values.
Enter the appropriate condition type
Version

1.0
Various combinations to maintain the

condition record
For Raw Material / Packing Material maintain the Plant/Vendor/Material Combination.

For Service Tax /Assets maintain the Plant/Material Group Combination.
.
Version

1.0
Enter the Plant and Vendor
Enter the Material No.
Enter the Value / amount
3. Press Ctrl+S or
4.
1.1.8.3
Result
Condition records saved.
Version

1.0
Version
1.2 Request for Quotation (RFQ)

1.2.1
Use
Request for Quotation is used to float enquiries in market to obtain quotations from prospective vendors.
This transaction is optional for the process.
1.2.2
Procedure

SAP R/3 menu
Logistics Material Management Purchasing
RFQ/quotation Request for Quotation Create
Transaction code
ME41
2. RFQ can be created with reference to Purchase Requisition, Outline Agreement (Contract) and another
RFQ.
3. On the Create RFQ: Initial Screen, make the following entries:
1. Enter the RFQ type as AN

2. Enter the Quotation Deadline
3. Enter Purch. Organisation as 1101
4. Enter the respective Purchasing group

1.0
Version
Press this button to enter the Collective

No and Vendor Reference
Enter the Submission date
Enter the appropriate

Item category for SubContracting & Service
1. Enter the Material No

2. Enter the RFQ Quantity
3. Enter the Deliv. Date
4. Enter the Plant if it is Plant specific
4. Choose
(header details icon) on the toolbar, then on screen Create RFQ: Header Data, enter
information in the fields as specified in the table below:

1.0
Press this button to enter the vendor

code for which it has to be sent?
Enter the Collective No to have a track of

all RFQs related to particular instance
Enter the Your Reference if any

reference given by the vendor
Version

1.0
Version
5. Choose
(vendor address button) on the toolbar, then on screen Create RFQ: Vendor Address, enter
information in the fields as specified below:
After entering the vendor code and pressing enter the details of vendor will be displayed automatically.

1.0
Version
6. Press
to Save the RFQ. This will refresh the Create RFQ: Vendor Address screen to allow creation of
the same RFQ data to a new vendor by following the steps outlined above.

1.0
1.2.3
Version
Result
RFQ created
Similarly create for other vendor in the same screen and various RFQ Nos will be generated
1.2.4
Example
RFQ created under the number 6000000000.
1.3 Message output: RFQ

1.3.1
Use
A RFQ needs to be printed for transmitting to vendor. This transaction is optional for the process.
1.3.2
Procedure

SAP R/3 menu
Logistics Materials Management Purchasing

RFQ/Quotation Request for Quotation Messages
Print/Transmit
Transaction code
ME9A
2. On the Message Output screen, make the following entries:

1.0
Version
Enter the RFQ Nos to be printed

and Execute (F8)
Press this button to Execute
Select the check box
For Printout click

this button which
will create Spool
Request.
For Print Preview

click this button
For Direct Printout

click this button

1.0
You will see out put as
Version

1.0
Version
1.4 Maintaining Quotation

1.4.1
Use
This transaction is used to maintain the quotation, which is submitted by vendors. Vendor communicates
price for material and as a result the RFQ (Request for Quotation) needs to be updated.
1.4.2
Procedure

SAP R/3 menu
RFQ/quotation Quotation Maintain
Transaction code
ME47
2. On the Maintain Quotation: Initial Screen, make the following entries:
3. Choose the Enter key, or choose

green Enter icon to proceed.
4. View the screen Maintain Quotation: Header Data by Choosing on the Header data icon in the toolbar.

1.0
Version
5. Enter information in the fields as specified in the table below. Some fields will not be available for input, as they
are reference fields only.
2. Press to enter the conditions
1. Press to select the line
6. Once all necessary header data has been maintained, the user can then enter the price information in one
of two fashions:
Enter the Conditions given by vendor.
a. Enter the price in the Net Price field on the Maintain Quotation: Item Overview screen by
Choosing overview icon on toolbar.

1.0
Version
b. To enter more detailed information in addition to the net price, select the line item and choose
the Item Details icon. Choose the green Back arrow to return to the Overview screen once
data has been maintained.
i. A vendors quoted price can be entered in one of two ways.
ii. Enter the net price per unit in the Net price field. This price includes the vendor's
normal discounts and surcharges only. Cash discounts (for prompt payment) and taxes
are calculated separately.
iii. Enter the gross price in the Net price field, and maintain the conditions for the item.
Then the system automatically replaces the entered gross price with the calculated net
price. If the net price for an item is entered for which pricing conditions have been
maintained, the system always replaces the price entered with the calculated net price.
iv. Enter the Tax Code for any relevant taxes (for example, Excise Duty, Sales Taxes etc.)
in the Tax code field. If a purchase order is created by referencing an RFQ, this code
facilitates the determination of the tax amount when the invoice is entered in the
system.
v. After entering tax code, after choosing this system may give an information message
showing the effective price, Choose Enter to continue.
7. Once all quotation information has been successfully entered, save the data by Choosing on the Save
button, or Choose the <Ctrl + S> keys. A message will be displayed that the data has been saved.
1.4.3
Result
Quotation is maintained.
Maintain the same for other RFQs.
1.4.4
Example
Quotation for RFQ 6000000000 maintained.

1.0
Version
1.5 Price Comparison

1.5.1
Use
Required to compare prices from all quotations received as a result of a competitive bidding process.
1.5.2
Procedure

SAP R/3 menu
RFQ/Quotation Quotation Price Comparison
Transaction code
ME49
2. On the Price Comparison List screen, make the following entries:
Enter the Purchasing Organisation

Enter the Quotations to be compared or
the Collective RFQ
Parameters included for Comparison
a. Choose the comparison values to be used:

i. Reference quotation: You can compare the quotations within the list with a sample
quotation. The system displays the percentage deviation between each quotation in the list
and the sample quotation.
ii. Mean/minimum value quotation: The price comparison list can also display a "fictitious"
quotation reflecting the average or minimum value of all quotations. Select either the "Mean
value" or "Minimum value" quotation field to choose the type of fictitious quotation.
iii. Percentage basis: The price comparison list displays the percentage of each item in
relation to the maximum, minimum, or average price. To determine the display type, enter
one of the following:

1.0
Version
+: The highest value for each item is the 100% value

-: The lowest value for each item is the 100% value
_: The mean value for each item is the 100% value
b. Select the desired price computations:
i. Select the appropriate field to determine which of the following should be included in the
determination of the comparison price:
i. Include cash discounts
ii. Include delivery costs
iii. Determine effective price
3. Once all entries have been made, Choose the Execute.
4. On screen Price Comparison List in Currency INR, view the Price Comparison list.
Rank is
generated
automatically
Mean and
Effective Price is
highlighted
5. To view any of the following information for a particular quote included in the comparison, Choose the RFQ
number with the mouse to select it, then Choose the appropriate icon/button on the menu toolbar:
6. Display Material:
Allows the user to view the purchasing data in the material master record.
7. Display Vendor: Allows the user to view the vendor master record.
8. Additional Info: Allows the user to view payment terms, bid dates, currency information for all the vendor
quotations in the list.
9. If any information has been modified through the comparison list, save the RFQ before exiting. If changes
have been made and the user attempts to exit without saving, the system will return a message to verify
action.
10. To exit the transaction, choose the green Back arrow, the yellow Exit arrow, or Choose the F3 button.

1.0
1.5.3
Version
Result
Price Comparison List in Currency INR is displayed on the screen.
1.6 Creating Purchase Requisition

1.6.1
Use
A Purchase Requisition is created to indicate purchase department to procure materials or services with
details like how much quantity is required, when required. Generally it is created automatically for Raw
materials and Packing Materials through MRP Run and Spares and Service related to Plant
Maintenance Purchase Requisition is generated automatically from Plant maintenance Order.
1.6.2
Procedure

SAP R/3 menu
Logistics Materials Management Purchasing Purchase

Requisition Create
Transaction code
ME51N

1.0
2. On the Create Purchase Requisition screen, make the following entries:
Enter Material No.
Enter required
Quantity
Enter the Desired Vendor if Vendor is known to

the person who is creating PR
Press
or Ctrl+S to Save the Purchase Requisition.
1.6.3
Result
1.6.4
Example
Purchase requisition number 0010000000 created.
1.7
Release Purchase Requisition
Version

1.0
1.7.1 Procedure
SAP R/3 menu

Requisition Release Individual Release
Transaction code
ME51N
Click Other Purchase Requisition
Enter PR No.
Version

1.0
Version
Click This Icon to Release PR
Click This Icon to Release

1.0
Click This Icon to Save
Version

1.0
1.8.
Version
Assign and Process Purchase Requisition
1.8.1 Use
a) This section explains the functions provided by the SAP System for converting requisitions into
external purchasing documents (purchase orders, contract release orders, scheduling agreement
delivery schedules, RFQs), and the processing options thereby available to you:
Assigning means defining the desired source for each purchase requisition item
o Further processing involves generating lists of requisitions that have been assigned or flagged as
outlined above, and the subsequent creation of RFQs, purchase orders, or lines of delivery
schedules under scheduling agreements.
1.8.2 Procedure
SAP R/3 menu
Transaction code

Requisition Follow-On Functions Assign and Process
ME57

1.0
Version
3. The assignment of sources to and further processing of purchase requisitions are two distinct functions.
You can choose whether you wish to perform the functions in two separate steps or in just one.
4. Below are the Selection Parameters to restrict the process of PO from PR
1. Enter the appropriate

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

Requisition (For Spares PR
normally the End User may have
entered the Vendor in the PR)
2. Select the appropriate Check
boxes for Processing the PR
5. Press
or F8 to enter into the next screen.

1.0
1. If Source List is
available click this button
1. Select the check boxes

required PR which are to
be converted in to Pos.
After assigning the source

click on to this button to
process the PO or else save
for the assignment of source
1. Since only one source is assigned in

Source list system assigns the source
automatically or else if more than one source
available a Pop-up window will be coming
where one vendor has to be selected.
6. O is explained in next chapter.
1.8.3 Result
The source is assigned to PR and can be processed for PO.
Version

1.0
Version
1.9 Purchase Order

1.9.1 Use
A purchase order is a legal document used to record an individual purchase with the vendor. It also
provides the vendor with a reference document to link to shipping (goods receipt) and invoicing (invoice
verification) processes. The purchase order is a commitment to a vendor for a given material, in a
specified quantity at a predetermined price and delivery date.
This transaction is mandatory for the process.
Please ensure that Purchase Order Value does not exceed specified value and if the purchase order value
crosses this limit a release procedure is applied on this purchase order. To release the Purchase Order go
to ME28 for collective release and ME29N for individual release.
1.9.2 Procedure
SAP R/3 menu
Order CreateVendor/Supplying Plant Known
Transaction code
ME21N

1.0
Version
2. If you want create purchase order with reference to the purchase requisition, on item details screen enter
the purchase requisition number and item number at Purch. Req. field. System will automatically adopt all
the data from requisition.
Click the
Purchasing
Requisitions
and Press
Adopt
Press this button to view

the Tax Calculation

1.0
Version

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Materials Management User Manual For Duro Shox Pvt Limited

USER PROCEDURE MANUAL

1 Procurement of Stock Materials .............................................................................................................10

Procurement of Stock Materials Raw Material Local / Return___________10

Request for Quotation (RFQ)_______________________________________56

Message output: RFQ_____________________________________________61

Maintaining Quotation ____________________________________________64

Price Comparison ________________________________________________67

Creating Purchase Requisition _____________________________________69

Release Purchase Requisition______________________________________70

Assign and Process Purchase Requisition___________________________74

Confidential Page 3 of 316

Materials Management User Manual For Duro Shox Pvt Limited

1.10. Release Purchase Order_________________________________________83

Goods Receipt for Purchase Order_________________________________89

Logistics Invoice Verification____________________________________100

Returning Delivery _____________________________________________106

Excise Invoice Other Movements__________________________________114

Posting and Printing the Excise Invoice____________________________117

Reversals / Cancellation of Invoice or Credit Memo __________________127

Reversals / Cancellation of Goods Receipt (GR) _____________________134

Confidential Page 4 of 316

Materials Management User Manual For Duro Shox Pvt Limited

1.19.5 Example ................................................................................................................................................139

Reversing CENVAT Postings _____________________________________140

Canceling Excise Invoices _______________________________________145

2 Procurement of Imported Materials Business Process Procedure....................................................151

2.2 Creating Purchase Order ________________________________________152

Release Purchase Order__________________________________________159

CAPTURING BILL OF ENTRY_____________________________________164

Goods Receipt for Imported Purchase Order_________________________172

Logistics Invoice Verification for the Materials_______________________184

3 Procurement of Subcontracting Materials Business Process Procedure..........................................191

Procurement of Subcontracting Materials___________________________191

Confidential Page 5 of 316

Materials Management User Manual For Duro Shox Pvt Limited

Creation of Subcontracting Purchase Order__________________________192

Transfer of Components to Subcontractor___________________________199

Creation of Subcontracting Challan_________________________________202

3.6 Printing of Subcontracting Challan________________________________205

Goods Receipt for Purchase Order _________________________________209

Reconciling Subcontracting Challan________________________________218

Completing/Reversal/Re-credit Subcontracting Challan________________221

Logistics Invoice Verification for Subcontracting Material_____________222

5. Procurement of External Services: Business Process Procedure.......................................................227

Procurement of External Services Procurement Process_____________227

Confidential Page 6 of 316

Materials Management User Manual For Duro Shox Pvt Limited

Creating Service Master__________________________________________228

Creating Purchase Requisition ____________________________________230

Assign and Process Purchase Requisition___________________________236

5.6 Purchase Order_________________________________________________239

For Releasing Purchase Order Refer User Manual of Stock Procurement_243

Creation and Acceptance of Service Entry Sheet _____________________245

Logistics Invoice Verification_____________________________________257

6 Asset Procurement Business Process Procedure...............................................................................262

Release of Purchase Order _______________________________________266

Goods Receipt for Purchase Order_________________________________267

Post Excise Invoice______________________________________________269

Confidential Page 7 of 316

Materials Management User Manual For Duro Shox Pvt Limited

Logistics Invoice Verification______________________________________272

7 Excise Periodic Processing Business Process Procedure..................................................................276

Excise Periodic Processing _______________________________________276