Procurement
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Procurement cycle
1. Requirement Manually or
MRP
2. Determine source of supply
( RFQ request for quotation
send requirement for
suppliers
3. Select vendor based on replay
( for RFQ)
4. Purchase order ( Manually or
Auto) & send to vendor
5. PO monitoring ( Delays &
Receiving)
6. GRN
7. Invoice Payment after GRN
8. Payment
STO stock transport order one company Goods send form one plant to
another Plant
Subcontracting - send RM and get a finished product FG or SFG
Subcontracting
1. Purchasing POV Raise a subcontracting purchase order ( sent to
contractor )
2. Inventory mgt POV- Send in the components (RM) - & get FG finished
materials goods receipt
3. Invoice verification POV invoice created for payment process
Vendor Consignment
Vendor keeps their goods in Company premises ( Keep vendor stock at
Manufactures premises)
Vendor responsible for this RM stock
When Manufacture comp needs 10 pcs RM company raise PO for 10pcs and
consume that 10pcs
1. Purchasing POV Consignment info Record + Purchase Order raise to
consume the items
2. Inventory mgt POV- Receive consignment stock (no invoicing but GRN
as consignment)
Withdrawal from stock & Keeping Liability stock
3. Invoice verification POV- what have consumed raise PO & do invoicing
Org Levels
Client
Company code req dif finance statements
Plant logistics ( SD- place goods sent cx) (MM- Stock kept) (PP- production)
Storage Loc inside a plant
Purchase org - division of the company by the procurement process ( have central
or decentralize based on req)
MIGO
MIRO
(Create purchase order with reference Pur Req/ /Contract) or can be created with
No reference
in purchase order creation screen ME21N
Purchase Order Output is how the Purchase order is sent to the vendor
o ME21N Messages click to see which mode Print or Email etc..
o Have to set up the mode for each type vendors
When traffic lights are green Can Click on POST to confirm the goods
receipt
Material document number will be created
Document flow
User
Item
o
o
Master Data
Video 3
Types of Users
End Users
Power Users 1st level of support
SAP consultant 1-3rd level support
Types of Data
Master data
Transaction data
Customizing data
Vendor master
MK01 : Material
XK01 : Centrally create vendor
Mainly
General Data
Company Code Data - Finance FICO
Purchase Org Purchasing related data
Copying a Vendor Always Name & Address is not copied ( these couldnt be
changed)
Material Master
Different views available can define a default view for a specific user.
MM01
Material Group Trading / Semi finished / Finished Good / service etc. this
depends on what type processing takes place. ( Trading no manufacturing
assembly process , FG need BOM Production orders etc)
Industry AFS Need grids etc.
Main Fields Description / Base Unit of Measure / Material Group *Reporting/
Weight / AFS Flag
Sales MOQ / Minimum Deliver Quantity / Deliver Unit ( if case is 30 pcs) only
30,60,90,..possible/ Tax (country tax)
Purchasing Value Key - ????????????
MRP Type (PD.) / Controller / Lot Size ?????????? MRP
Procurement Inhouse prod / External Pro /or Both X / Days for Deliver /
MRP AFS Flag
Additional Data Unit of Measure ( 1 Pcs = 1 Pcs / 6 pcs 1 Carton / 60 pcs
1 pallet )
Entry Aids
Settings
Reference Materials
(MMD1) MRP Profile If Same MRP info need to copy for materials created
without entering repeatedly
Default data for MRP view MRP 1,2,3,4 data ( Select default or fixed values
for profile -> data tabs enter the data)
(In Org Data Entering screen get input field MRP profile ) -> MRP tabs will
auto filled
MMSC
MASS Transaction -
Master
With MM02 for 100 Materials need to access one by one
Mass Maintenance at one can change that field needs the
change.
Exercise
1. MM01- Additional data -> Unit of
Carton 4 Pcs & 1 Pallet 16
measure tab
Cartons
MMD1
MMSC
MASS
1.
RFQ
The Process
o Purchase Requisition -> RFQ -> Quotations -> Purchase Order or
Rejection Letter
RFQ
o Collective Number assign ( Common Number Linked to the
requirement)
o Display / Print RFQ
ME9A
o Price received from vendor
o Maintain Quotation
ME47
o Price Compare
- ME 49
o Print rejection letter
ME9A
2. Purchasing
2.1
Standard
Subcontract
Pipeline
Consignment
- General Purchase
- 3rd Party Manu Process
- Gas / Electricity / Water
- Vendor Managed Stocks
2.2
Scale Price
o Ranges of Prices
o Upto 100 pcs Gross Price 8.90$
o 100-500 pcs Gross Price 7.90$
o 500 Up
7.50$
Same can be done for discount ranges
Minimum quantity
o
o
o
o
Till 100 2%
Min 100 2.5%
Min 500 2.75
Min 1000- 3%
2.3
2.4
No Info Records
Manually Prices Entered
No Pricing Maintain
If $30 Gross was proposed & User Enters $33 manually -> it Overwrites &
nxt PO propose 33$
To Make this Default ticked or Unticked
o SPRO > MM > Purchasing > Environment data > Default values for
Users
Create new profile or update currently using one
o SU01 (User profile)> Parameters > EVO - Assign the Profile
Parameters -> New Entry Evo assign profile name
Who created the Info Records ME12 Goto Menu -> Extras ->
Administrative Data
o ( User Created the Info Rec + Time + Date)
Valuation
3.1
Valuation Class
3.2
Pricing Control
S Standard Pricing
o Standard Price maintained at the MM01
o Value is set No Pcs * Value at MM01 Std Price
o (posting) Stock Account 200$ (standard price-mm01) but GR
could be $210 + Price difference ($10) posted as well
o Fixed Value
Master data Material X set to Standard Price : 2$ per pcs (in Master
data)
1. Receive 100 pcs @ 2$ per pc
2. Receive 100 pcs @ 2.40$ per pc
3: Invoice received @ 2.20$ per pc ( Stating that previous stated 2.40$
to be adjusted)
Postings are
1: Stock Account Posted 2*100 200$ (Debit - Left )
1: Good Receive Clearing Account - 200$ (Credit Right)
Master data Material X set to Moving Avg. Price : 2$ per pcs (in
Master data)
1. Receive 100 pcs @ 2$ per pc
2. Receive 100 pcs @ 2.40$ per pc
3: Invoice received @ 2.20$ per pc ( Stating that previous stated 2.40$
to be adjusted)
Postings are
1: Stock Account Posted 2*100 200$ (Debit - Left )
1: Good Receive Clearing Account - 200$ (Credit Right)
P : Std Price
- Stock account accounted based on the MM01
Standard Price * Units
V : Moving Avg. Price - Stock account accounted based on the
PO/Invoice Price * Units
3.3
Goods Receipt to
Unrestricted
Blocked
Quality
Via MIGO
Transfer Posting
Via MIGO - Codes
Triggered processes of a GR
3.4
Use PO ME23N -> Purchase Order History to view the material docs
If Only Goods Receipt Document is
available -> means no Invoicing done.
Enter Info
Save Doc Document number created and
blocked for payment
Delivery Costs
Planned
o Freight charges etc.. are defined in the purchase order
o Postings ( 130 $ goods & 20$ Freight )
Stock Account is updated with ( Goods Value + Freight ) 150$
GR Clearing Updated 130$
Freight Acc 20$
Unplanned
o Charges are not known until the receipt of the invoice.
o Postings ( 130 $ goods & 16$ Freight unplanned )
Stock Account is updated ( Goods Value only known at the time
of GR) 130$
GR Clearing Updated 130$
Later Upon Invoice receipt (Freight ) -16$ added
Freight Acc 16$
Others
PO ME21N
Document Overview Change Hierarchy
o
o
MB51
Go Back with Stock Info
By clicking the Material Doc numbers can redirect to the Issuing Docs (261)
movement type
Stop???
Vid 4 TIME 1.35.00
ME41
RFQ
ME11
ME47
Quotation
ME2N/M/L
Report Look in
ME15
SU01
User profile
ME31
Vendor Contracts
MIRO
Invoicing
Material Slides
Valuation Class
RM GL account
FG GL account
SPRO- MM- Valuation & Account define Account determination
If customers say for specific material type need seprate account make a account
FS00 and say valuation class to assign that specific material to that gl account
OMSK Define valuation classes (SPRO)
Posting Automatic Entry