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MM – ConfigurationPurchasing

Objective

To understand

Purchase OrderContractsScheduling agreementsConditionPartner Function

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PURCHASE ORDER

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Purchase Order

PO is the legal document asking vendor to supply material or services with agreed conditions.

PO can be controlled with header level release procedure.

Item category and account assignment are important in PO like PR.

CreatePurchaseRequisition

RFQ

ReferencePO

OutlineAgreement

Vendor/One-Time

Vendor

PurchasingInfo Rec

PriceConditions

Purchase Order

Processing Purchase Orders

POHeader

PO Overview

Texts

AdditionalData

DeliverySchedules

Account Assignment

PricingConditions

Contents in Purchase Order

ChangesServices

OrderHistoryPURCHASE

ORDER

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Account assignment in PO

Every item in PO is assigned to an account.

One item can be assigned with more than one accounts also.

E.g. Procurement of certain project related items has to be accounted with two cost center.

Purchase OrderDesc Qty

Pur Req 1Chair 2CostCentre 2200

Pur Req 3Chair 4CostCentre 3200

Pur Req 2Chair 6CostCentre 2100

Pur Req 4Desk 1CostCentre 7211

1. Swivel Chair 122. Desk 01

Multiple Account Assignment

Item CategoryNormal ItemConsignmentThird Party

Account Assignment= Mandatory when material Consumable= Optional when material Stocked= Not Allowed when Consignment

Purchase Order

Item Category in Purchase Order

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CONTRACTS

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ContractsContracts are of two types

Quantity contractValue contract

It can be created with reference torequisitionRFQ another contract

Ordirectly

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Contracts cont..

Contracts does not contain Delivery date

Release order created with reference to contract will have the delivery date.

Contract has the validity period

Create

Vendor/One-Time

Vendor

PurchasingInfo Rec

PriceConditions

PurchaseRequisition

RFQ

ReferenceContract

Contract

StocksStocks

ReleaseOrder

1 2 3 4 5 6

7 8 9 10 11 12 13

14 15 16 17 18 19 20

21 22 23 24 25 26 27

28 29 30 31

March 2000

Processing Contracts

Item Category Standard ItemK ConsignmentM Material UnknownW Material Group

Account Assignment= Mandatory when material Consumable= Optional when material Stocked= Not Allowed when Consignment

Contract

Item Category in Contract

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Contract item categoryUse M item category for unknown material

If contracts specifies target value for all material, use material group W (only in value contract)

Release Order

UnknownUXX All Auxiliary Account AssignmentAll Auxiliary Account Assignment

Account Assignment Category

AA AssetAssetCC Sales OrderSales OrderKK Cost CentreCost Centre

Create Contract

AssetSales OrderCost Centre

All Auxiliary Account Assignment

ACK

XUU UnknownUnknown

Account Assignment Category

Account Assignment Category

ContractRelease Order

Qty DatePurchasing

DataCopied

Open Target“Qty”

Release Orders

Contract

PurchaseOrg.

COMN

Plant

PO

Purch. Org. 2100

Plant : MIND6

PO

Purch. Org. 2100

Plant : IND7

PO

Purch. Org. 2300

Plant : 9100

Centrally Agreed Contract

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SCHEDULING AGREEMENT

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Scheduling agreementIt specifies

Order quantityPricespecific period to supply

There is a delivery schedule for each scheduling agreement

Helps to reduce paper work

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Types of Scheduling agreement

Scheduling agreement can be

With release procedure

Without release procedure

DeliverySchedule

2/243/245/26

VendorSchedulingAgreement

Processing Scheduling Agreements

PurchaseRequest

Reference RFQ

Reference SchedulingAgreement

Vendor-----------------------

-----------------------

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CONDITION

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Pricing Condition

Pricing describes the price and cost

Pricing is controlled with condition technique

Let’s discuss about condition technique before we go to pricing.

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Condition TechniqueIt is used across all modules in SAP

output determination

Work flow

Batch determination

Partner determination

Condition technique is used to determine total cost of purchase in MM

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Condition Technique cont..

Following are the three important component

Condition Table / condition type

Access sequence

Condition record

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Condition TableCondition table specifies the fields combination.

System searches through predefined tables in a sequence.

It is defined in the configuration.

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Condition TypeCondition type is the four letter key controls

Calculation type

Type of changes allowed

Scale basis

Condition type contains access sequence

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Access SequenceThere can be more than one table used to define different field combination

It is required to search more than one table to fetch a record.

Defining the sequence in which these tables are to be accessed is known as access sequence.

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Condition Record

Condition records is the master data.

Maintaining values for the condition table is known as condition record.

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PARTNER FUNCTION

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Partner Function

Defines the responsibilities of people involved in the business.

Example in MM are:

a. Ordering address

b. Supplier of goods

c. Invoicing party

d. Different payee

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Partner Function Contd..

Many business partners can be defined as partner in SAP.

E.g. Vendors, Carriers

Roles of each partner can be defined. E.g. Certain vendors are only for ordering and not for invoicing.

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Summary

You must have understood

Purchase OrderContractsScheduling agreementsConditionPartner Function