QM: Goods Receipt Inspection Vs Source Inspection in Procurement

Applies to:
ERP 4.6C (or) later Version to ECC Quality Management (QM) and Material Management (MM) Goods Receipt Inspection Vs Source Inspection in Procurement

Summary
Source inspections are performed upon request and with the participation of the customer generally in suppliers place. A source inspection can be executed by the receiver of the goods, the supplier in the presence of the receiver or by third party. Goods receipt inspections are performed after receiving the goods at customers place. Till the inspection process completes the goods will be under inspection stock. Once the inspection process completes and approves, the goods is moved to unrestricted stock. The system can automatically create an inspection lot when a goods receipt is posted in the system. A goods receipt can be posted internally (for example, from production to the warehouse) or from an external source (for example, from a vendor). In SAP Quality Management, Goods Receipt Inspection and Source Inspection for procurement have the below features: Inspection Lots are created either before goods receipt or after goods receipt. While processing the inspection lots the material will be in Quality inspection stock. After inspection lots accepted, the material is posted to unrestricted use Source inspection lots can be created using batch jobs Author: Venkata Duvvuri

Company: Intelligroup Created on: 29 Nov 2010

Author Bio
Venkata Duvvuri has over 8 years of SAP experience in MM/PP//QM/WM. He is a Senior Business Consultant with experience in Implementations / Upgrades and technical Support. He has delivered on many complex projects in High Tech, Pharmaceuticals and Consumer Products Industries.

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Table of Contents
Introduction to Quality Inspection ....................................................................................................................... 3 Basic Configurations for Quality Inspection in Procurement: ............................................................................. 4 Goods Receipt Inspection Scenarios demonstration: ........................................................................................ 7 Source Inspection Scenarios demonstration: ................................................................................................... 12 Related Content ................................................................................................................................................ 16 Disclaimer and Liability Notice .......................................................................................................................... 17

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Introduction to Quality Inspection

In Quality Management, the quality inspection is processed on the basis of inspection lots. Quality Inspection determines whether the required product meets the defined quality requirements. In quality inspection, we inspect a product using predefined specifications. This inspection can be carried out at customers place (goods receipt inspection) or at vendors place (source inspection) based on the requirements. Some of the important differences between Goods Receipt Inspection and Source Inspection are described below: Goods Receipt Inspection Source Inspection Performed after receiving the goods Performed before receiving the goods Performed at receivers/customers place Performed generally at suppliers place with customers participation Goods receipt for purchase order triggers the Quality info record triggers the inspection lot inspection lot creation creation. To trigger the lot open purchase order required for the Material, Plant and vendor combination Inspection lot is created after receiving the goods Inspection lot created before receiving the goods based on the lead time in Quality Info record. There is also option to create inspection lot after goods receipt (Quality info record)

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Basic Configurations for Quality Inspection in Procurement:

In Order to implement the Quality Inspection, the basic settings at plant level need to be maintained. Maintain Settings at plant level Manu Path: SPRO > Quality Management>Basic Settings>Maintain settings at plant level

At plant level we maintain control functions, Basic Data like Master inspection characteristics with history, Insp lot creation, Results recording, Inspection lot completion, and general settings

Define control key in procurement: Manu Path: SPRO > Quality Management>QM in Logistics>QM in procurement>Define control keys

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This control key is used to maintain different conditions in procurement (ex: vendor release required, quality certificate required along with the goods, document control etc.)

In this example we are using the control key for vendor release. It means the supply relationship must be released. (Supply relationship in procurement is Vendor Master record and quality info record) Maintain Inspection Types Manu Path: SPRO > Quality Management>Quality Inspection>Inspection Lot Creation>Maintain Inspection Types

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Inspection type 01 is for Goods receipt for Purchase orders which is predefined. An Inspection type is assigned to an inspection lot origin. We can assign more than one inspection type to a single inspection lot origin.

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Goods Receipt Inspection Scenarios demonstration:

The below described scenarios will help in understanding the execution mapping of goods receipt inspection, inspection lot creation, Inspection lot usage decision and stock movement a) In Material Master, Quality Management view Select QM Proc active in procurement data. b) Maintain QM Control key (This key determines what conditions are valid for QM at procurement. This key in material master is defined at plant level) c) Need to have vendor master record.

In Inspection Setup, enter inspection type 01 and select active Maintain inspection percentage (Since we are not using Inspection with Task list or material specification). Here we have 3 options, select sampling procedure or select 100% inspection or maintain inspection percentage.

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Maintain Quality Info record: Quality Management---Quality planningLogistics Master DataQuality Info record procurement Create. TCode: QI01

Enter release until date; this date is the latest date on which the material for the plant can be ordered from the vendor

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Select release quantity active check box, Enter Release quantity. Inspection Control Tab, Select Inspection active, If vendor is not certified for Insp control and Save

Goods Receipt for a Purchase Order: MIGO_GR. Once goods receipt is posted, inspection lot is created.

Display Inspection Lot: Quality Management Quality InspectionInspection LotProcessingDisplay. TCode: QA03

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The sample size is calculated based on the % which maintained in Material Master, Quality Management View. Stock Overview: MMBE

The stock is in Quality inspection. Record Usage Decision: Quality Management Quality InspectionInspection LotUsage Decision Record. TCode: QA11 Select the usage decision, save.

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The inspection lot is accepted and the stock is posted from inspection stock to unrestricted stock. Go to Stock Overview: MMBE

Now the stock is now posted to unrestricted use

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Source Inspection Scenarios demonstration:

In Quality info record, Insp.control tab: Enter Source Inspection and Lead time (in days). The lead time is deducted from the scheduled delivery date to perform the inspection. Make sure the same Inspection type is also maintained in Material Master. Select Source Insp no GR. If this is selected, the system does not create inspection lot at goods receipt for a purchase order which has undergone source inspection.

Create Purchase Order: ME21N

Work List of Source Inspection: QI07 Enter Vendor, Material, Plant, Delivery date and opening period then execute

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Displays the purchase orders which are ready for source inspection. Select the line item, press create inspection lot and save. The line disappears, the inspection lot is created.

Display Inspection lot: QA03

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Stock Overview: MMBE

The stock is in on order-stock Record Usage Decision: Quality Management Quality InspectionInspection LotUsage Decision Record. TCode: QA11 Select the usage decision, Save.

Post the goods receipt for the purchase order: MIGO_GR

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Record Usage Decision: Quality Management Quality InspectionInspection LotUsage Decision Record. TCode: QA11

Select the usage decision, save. Stock overview: MMBE

Now the stock is posted to unrestricted use

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Related Content
SAP Help http://help.sap.com/saphelp_46c/helpdata/en/a6/df293581dc1f79e10000009b38f889/frameset.htm http://help.sap.com/saphelp_46c/helpdata/en/c6/b9b3341a933f50e10000009b38f83b/frameset.htm

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Disclaimer and Liability Notice

This document may discuss sample coding or other information that does not include SAP official interfaces and therefore is not supported by SAP. Changes made based on this information are not supported and can be overwritten during an upgrade. SAP will not be held liable for any damages caused by using or misusing the information, code or methods suggested in this document, and anyone using these methods does so at his/her own risk. SAP offers no guarantees and assumes no responsibility or liability of any type with respect to the content of this technical article or code sample, including any liability resulting from incompatibility between the content within this document and the materials and services offered by SAP. You agree that you will not hold, or seek to hold, SAP responsible or liable with respect to the content of this document.

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