1. Sap Mm Guide (PART3)

7/27/2019 1. Sap Mm Guide (PART3)

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Materials Management User Manual For Duro Shox Pvt Limited Versio1.0

2.3 Release Purchase Order

2.3.1 Procedure

1. Access the transaction choosing one of the following navigation options:

SAP R/3 menu LogisticsMaterials ManagementPurchasingPurchase

OrderReleaseIndividual Release

Transaction code ME29N

Confidential Page 159 of 316

Click Other Purchase Order

Enter PO No


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Click This Icon to Release PR


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Click This Icon to Release

Click This Icon to Save


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2.4Message Output

2.4.1 Use

A Purchase Order needs to be printed for transmitting to vendor.

2.4.2 Procedure



OrderMessagesPrint/Transmit

Transaction code ME9F

9. On the Message Outputscreen, make the following entries

10. Choose to Execute.



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11. On screen Message Outputselect the appropriate Document number and perform the following:

Choose Output Message and/orChoose Display Message and/orChoose Message Detailand/orChoose Trial Printout.



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2.5 CAPTURING BILL OF ENTRY

2.5.1 Use

In this process of Logistics Invoice Verification all the Incoming Invoices are verified in terms of theircontent, prices and arithmetic. When the invoice is posted, the invoice data is saved in the system. Th

system updates the data saved in the invoice documents in Materials Management and FinancialAccounting.

2.5.2 Procedure


SAP R/3 menu Logistics Materials Management Logistics invoice

Verification Document Entry Enter Invoice

Transaction code MIRO

8. If you are opening for the first time this transaction, system will ask forCompany Code, please give 1000go in side the transaction.

9. On the Enter Incoming Invoice: Company Code 1000 screen, make the following entries:


Choose Planned Delivery Costs


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Enter the Amounts of the Customs Duties Manually in the Amount Column with referring to PO .



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Field name Description R/O/C User action and values Comment

Transaction Invoice R Select Invoice from dropdown list

Header Data Header data of Invoice R Defaulted by system

Basic tab Basic information tab R Select basic information tabto give initial information

Invoice Date Invoice Date R Enter the Vendor invoicedate

Reference Invoice reference O Enter the vendor invoicereference

For Example

USERMANUAL

Posting date Posting Date R Enter the posting date of document

System will givecurrent date asdefault

Amount Invoice Amount R Enter invoice gross amountincluding taxes and duties

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Amountmentioned isonly an example

Currency R Enter the currency in whichthe bill is presented byvendor, if not entered byuser system will default thedocument currency frompurchase order

USD

Calculate tax Check box calculatetax

O Check this tick box, systemwill calculate tax amount

Tax code R Select the tax code fromdrop down list

V0

Bus.place/sectn

Business place orsection code

R Enter section code if Taxdeduction for source isactive for this vendor

Leave blank forthis process

Text Text O Enter text if required for reference

Payment tab Payment tab R Select payment details tab

BaselineDt Base line date for

payment

R Enter the base line date for

payment

Will be defaulted

if payment termsentered in PO

Pmnt terms Payment terms O Payment terms of document, if entered will bedefaulted from purchaseorder

Due on Payment due on O Will be calculated by Grayed out



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system

Discount Cash discount O Enter if cash discount isoffered by vendor

Purchase order /Schedule Agreement

R Select Purchase order /Schedule Agreement in the

reference documentcategory from drop downlist

Defaulted foruser

Purchase ordernumber

R Enter the first purchaseorder number generatedabove

Planned DeliveryCosts

R Select Planned DeliveryCosts in indicator fromdrop down list

Layout Layout of invoiceverification

R Select All information fromdrop down list

Choose Enter

10. Choose Enterto complete the document feeding part.

11. To check the document credit and debit is balanced on the top right corner of your screen a traffic light isdisplayed. Beside that Balance of the document is displayed.

Ensure that the Balance is ZERO before posting the document and the traffic light is green or yellow colo

12. If you want to see the accounting postings in simulation mode, Choose Simulation on middle of fourth rowof your screen.



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13. Choose Display Currency which will lead to small pop-up window having the company code currency andDocument Currency, position the cursor on the INR to convert to Document Currency and press the detailbutton.



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8. Choose Save / Post, forposting the document.

2.5.3 Result

Logistics Invoice verification document is posted.

2.5.4 Example

Document no. 5105600121created



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2.6 Goods Receipt for Imported Purchase Order

2.6.1 Use

Goods are received from the Vendor as a result of a Purchase Order at the receiving plant. A goomovement is entered into the system referencing this PO and a goods receipt material document

posted. Appropriate general ledger accounts are also posted and stocks are updated.

2.6.2 Procedure


SAP R/3 menu Logistics Materials Management Inventory Management

Goods Movement Goods Receipt For Purchase OrderPO Number Known

Transaction code MIGO

2. On the Goods Receipt Purchase Orderscreen, make the following entries:


GoodsReceipt

Goods Receipt R Select from drop down listfor action

InboundDelivery

Purchase Order R Enter the Purchase Order No.generated above

3100000000

MovementType

101

Enter

Since this is imported purchase order and you have already done invoice verification forplanned delivery cost. System will give a new popup Excise Invoice item numberscreen (whichis not there in normal other process) asking forCommercial invoice numberand year.

Please enter the invoice verification document number which you have done in above 5105600792and year2006.



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3. Choose Enter where a small pop-up window will prompt to enter the Commercial Invoice No. and Year(i.the Invoice Verification posted for Bill of Entry)

4. After pressing Enter system will fetch all the data from the Purchase Order as shown below:


Enter the No generated for the posting of Bill of Entry


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5. System defaults the balance quantity in Purchase Order.


Whichever material is in Blue those detail will be seenin the Item detail


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Enter the storagelocation


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GoodsReceipt Goods Receipt R Select from drop down listfor action

InboundDelivery

Purchase Order R input the Purchase Order number which generatedabove

4500000059

MovementType

101

Enter

DocumentDate

Document Date R Enter document date

Delivery Note in Header O Delivery Number fromVendor

Vendor Vendor R Defaulted from purchaseorder

Grayed out

Posting Date Posting date R Enter posting date

Bill of lading Bill of lading O Enter bill of lading


Select Item Ok and Press Enter and the Excise tabwill appear both in Header and Item Level


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Header text Header text O Enter header text

Close Header Detail data to enlarge the Detail data.

Select Material tab at Detailed Data.

Material Material tab R Defaulted from Inbound

Delivery

Grayed out

Select Quantitytab in Detail data.

Qty in unit ofentry

Quantity in unit ofentry

R Enter the quantity you havereceived from vendor. As adefault system will givepurchase order quantity

Quantitydefaulted fromPurchase Order

Qty indelivery note

Quantity in deliverynote

O Enter the quantity as per vendor delivery challan

Select Where tab in Detail data.

Movementtype

Movement type R Defaulted from header

screen

Stock type Stock type R Defaulted from materialmaster or purchase order

Plant Plant R Defaulted from purchaseorder1000

Storagelocation

Storage location R Defaulted from Inbounddelivery if entered1010

GoodsRecipient

Goods Recipient O Enter the name of personwho received goods

Unloadingpoint

Unloading point O

Text Text O Enter the text if required

Select Purchase Ordertab in Detail data.

PurchaseOrder

Purchase Order R Defaulted from header data Grayed out

Del.completedind.

Delivery completionindicator

O Defaulted by system if POQty = GR Qty

Select Partnertab in Detail data.

Vendor Vendor name O Grayed out

For this material batch management is not active. Just for reference purpose the followingdata is given.

Select Batch tab in Detail data.



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This tab will come only if material is managed in batches.

Proceed with the following steps if material is batch managed only.

Batch Batch number R Enter batch number as datefor batch managedmaterials

Vendor batch Vendor batch O Enter vendor batch numberfor reference

7. Select the Check box Item OK, after entering all the data.

You will get Excise Invoice tab at Header Data for capturing vendor excise invoice details and for postingPart I and Part II.

8. On the Excise Invoice tab at Header Data make the following entries.



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Capture &Post Exciseinvoice

Capture & Post ExciseInvoice on Excise

Action

R Choose Capture & PostExcise Invoice from dropdown list

Defaulted

Excise Group Excise Group R Defaulted by the system

ExciseInvoice

Excise invoice R Enter the vendor ExciseInvoice number

For example:

4500000059

Excise Inv.Date

Excise Invoice Date R Enter the excise invoicedate of vendor

BED Basic Excise Duty R Defaulted from purchaseorder

Grayed out

AED Additional Excise Duty R Defaulted form purchaseorder

Grayed out

SED Special Excise Duty R Defaulted from purchaseorder

Grayed out

NCCD NCCD R Defaulted from purchaseorder

Grayed out

ECS Education Cess R Defaulted from purchaseorder

Grayed out


Select Excise Item tab at Detailed Data (at the last).

Chapter ID Chapter ID of material R Defaulted by the system

No action required

EI Quantity Excise InvoiceQuantity

R Defaulted by the systemfrom Goods Receiptquantity

Base Value Base value of material R Defaulted by the system

BED Basic Excise Duty R Defaulted by the system

AED Additional Excise Duty O Defaulted by the system

NCCD NCCD O Defaulted by the system

SED Special Excise Duty O Defaulted by the system

ECS Education Cess O Defaulted by the system

Please cross check the BED, ECS (CVD in this case) amount of item as per the bill of lading,legally you can not avail more than what mentioned in Vendor Excise Invoice.

In case of imported purchase order in normal case system will default CVD and ECess (invoiceverification made on commissioner of customs) amount as BED and ECS i.e. CENVAT amount.



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12. Choose Checkat the top of screen.

13. Choose Postto post the document.



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2.6.3 Result

Material document posted.

2.6.4 Example

Material document 5000000021 posted

You can see account posting here



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2.7 Logistics Invoice Verification for the Materials

2.7.1 Use

In this process of Logistics Invoice Verification all the Incoming Invoices are verified in terms of theircontent, prices and arithmetic. When the invoice is posted, the invoice data is saved in the system. Thsystem updates the data saved in the invoice documents in Materials Management and Financial

Accounting.

2.7.2 Procedure









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For Example

1000

Posting date Posting Date R Enter the posting date of document

System will givecurrent date asdefault


Select Goods/Service Items


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100


Currency R Enter the currency in whichthe bill is presented by

vendor, if not entered byuser system will default thedocument currency frompurchase order

USD

Calculate tax Check box calculatetax

O Check this tick box, systemwill calculate tax amount

Tax code R Select the tax code fromdrop down list

V0

Bus.place/se

ctn

Business place or

section code

R Enter section code if Tax

deduction for source isactive for this vendor

Leave blank for

this process



BaselineDt Base line date forpayment

R Enter the base line date for payment

Will be defaultedif payment termsentered in PO

Pmnt terms Payment terms O Payment terms of document, if entered will bedefaulted from purchase

orderDue on Payment due on O Will be calculated by

systemGrayed out


Hide Header data for getting full screen of items if required.


R Select Purchase order /Schedule Agreement in thereference documentcategory from drop downlist

Defaulted foruser



Goods / service items R Select Goods / Serviceitems in indicator from dropdown list

Defaulted



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Choose Enter






Choose Display Currency to change in INR


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7. Choose Display Currency which will lead to small pop-up window having the company code currency andDocument Currency, position the cursor on the INR to convert to Document Currency and press the detailbutton.



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2.7.3 Result


2.7.4 Example

Document no. 5105600122created



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3 Procurement of Subcontracting Materials Business Process Procedure

3.1Procurement of Subcontracting Materials

3.1.1 Purpose

In Indian subcontracting process when you issue materials to a subcontractor, you need to ketrack of what materials you have issued and when they have to be returned by subcontractor. Treason for this close monitoring has to do with Indian tax law. Under excise law 57AC, when yosend materials to a subcontractor for processing, you are not required to pay any excise duty, evthough the materials have left your premises. However, if the materials have not been returned you within 180 days specified by the law, you will have to reverse any excise credit that you postwhen you have purchased the materials. When you send material out of your factory premises yneed to send with 57F4 Challan. In this process you are going to do the same.

3.1.2 Prerequisites

The following scenario specific master data must be created for operation of this building block asubsequent dependent building blocks.

Material Master record (Refer User Manual Procurement of Stock Materials (Domestic))

Vendor Master record (Refer User Manual Procurement of Stock Materials (Domestic))

Purchasing Info Record (Optional)

Ensure that Sub-Contracting as Info Category.(Refer User Manual Procurement of Stock Materials (Domestic))

CIN Master Data (Refer User Manual Procurement of Stock Materials (Domestic))

o Chapter IDs

o Material ID and chapter ID combination (Ensure Sub-Contract check box is selected f

the Materials that provided to vendor)o CENVAT Determination

o Vendor Excise Details

o Excise Indicator for Plants

o Excise Indicator for Plant and Vendor

o Excise Tax Rates



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3.2Creation of Subcontracting Purchase Order

3.2.1 Use

A purchase order is a legal document used to record an individual purchase with the vendor. It alprovides the vendor with a reference document to link to goods receipt and invoice verificatiprocesses. The purchase order is a commitment to a vendor for a given subcontracting activity, inspecified quantity at a predetermined price and delivery date.

3.2.2 Prerequisites

Components stock should be available for providing to subcontracting vendor.

3.2.3 Procedure


SAP R/3 menu Logistics Materials Management Purchasing Purchase

OrderCreateVendor/Supplying Plant Known




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2. On the Create Purchase Orderscreen, make the following entries:


Click here to enter Bill of componentsthat are supplying to Subcontractor

Enter L as Item Category forSub-Contracting Procurement

Select ZSC Document Type forSubcontracting Order


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After filling the above data, choose on Material Data tab at item Details screen. There you will find a new iccalled Components, you have to choose on that icon to give the components list which you are likely to transpost to vendors and give the flowing inputs.

3. Click on the Components or Explode BOM and enter the materials that had to be sent:

4. Choose on Green Arrowor F3 to come back to main purchase order screen.

5. Ensure appropriate tax code have been entered for both the line items (V0 Nil Tax for Sub-ContractiItem)



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Ensure Taxcode V0 for Sub-Contracting Item andclick on the Taxes to view the tax calculation


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6. The Purchase Order may be posted by choosing on the Save icon.

3.2.4 Result

A message will be displayed stating that the purchase order was saved, with the purchase ordnumber.

3.2.5 Example

Standard PO created under the number2400000000



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3.3Message Output

3.3.1 Use

A Purchase Order needs to be printed for transmitting to vendor.

3.3.2 Procedure



OrderMessagesPrint/Transmit

Transaction code ME9F

2. On the Message Outputscreen, make the following entries

3. Choose to Execute.

4. On screen Message Outputselect the appropriate Document number and perform the following:



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Choose Output Message and/orChoose Display Message and/orChoose Message Detailand/orChoose Trial Printout.



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3.4Transfer of Components to Subcontractor

3.4.1 Use

The Nature of subcontracting purchase order is that company will provide components to subcontract

This process describes how to transfer post materials to subcontractor.

3.4.2 Prerequisites

Sufficient stocks of components should be available for making transfer posting.

3.4.3 Procedure


SAP R/3 menu LogisticsMaterials ManagementInventory Management

Goods MovementTransfer posting

Transaction codeMB1B

2. On the Enter Transfer Posting: Initial Screen, make the following entries:


DocumentDate

Document Date R Input date

Posting Date Posting Date R Input date

MovementType

Movement Type R 541

Plant Plant R 1000

StorageLocation

Storage location R 1010


Press To Purchase Order


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3. Choose on To Purchase Ordericon on the top of the screen or choose F9 on key board. System wgive new popup screen asking for purchase order number. Give the 45000000##purchase ordnumber and choose enter to continue.

4. System will display components from purchase order with quantities

5. Choose only the Material that you are sending and enter the Storage Location from which it hasbe issued.



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6. Choose onAdopt + Details icon or F6.

7. Choose Enter if required the quantity of components can be changed.

8. Choose Save icon or Control + S to post the document.

3.4.4 Result

A message will be displayed stating that the document posted.



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3.4.5 Example

Material document 4900000039 posted.

3.5Creation of Subcontracting Challan3.5.1 Use

It is statutory requirement to send the components to subcontractor with 57F4 Challan.

3.5.2 Prerequisites

Select the Sub-Contracting Material in Material and Chapter ID Combination of the ExciMaster (J1ID) for the sending Material.

Ensure that the details of the receiving Material maintained in the Excise Master (J1ID).

CENVAT Determination of the Excise Master (J1ID) Maintained for the both sending a

receiving Material. Ensure that the Assessable value for the sending material is maintained in the Excise Mast

(J1ID)

3.5.3 Procedure


SAP User menuCIN Menu

Indirect Taxes Procurement Subcontracting

Subcontracting ChallansCreate

Transaction code J1IF01



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2. On the Subcontracting Challan - Create, make the following entries:


Material Doc. Material document number R 4900000039

Mat. Doc. Year Material document year R 2006 Appropriate

Excise Group Excise Group R 10 Appropriate

Series Group Series Group R W3 Appropriate

3. Choose Enterto continue, system will take new Subcontracting Challan Create screen, make tfollowing entries:

Field name Description R/O/C User action and values CommentSelect Posting tab

Posting date & time Posting date andtime

R Input date and time of material removal

Print Immediately Print Immediately O Check this box if you wantchallan printout immediately.

Select Overview Tab

Preprinted no Preprinted number O Enter pre-printed number if you have



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4. Save challan by choosing on Save icon or Control + S.

3.5.4 Result

A message will be displayed stating that the document posted.

3.5.5 Example

Subcontracting Challan 000010001 2008; Series Group B1 successfully created.



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3.6 Printing of Subcontracting Challan

3.6.1 Use

It is statutory requirement to send the components to subcontractor with 57F4 Challan.

3.6.2 Procedure

Access the transaction choosing one of the following navigation options:



Subcontracting ChallansChange

Transaction codeJ1IF11



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Press Save Icon


Click the Print Immediately Tab


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Press Enter


Click the Print Immediately Tab


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Click the Icon to be the Print Preview of the Challan

Execute the Print to Get Print Out.



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3.7 Goods Receipt for Purchase Order

3.7.1 Use

Normally Goods are received from the Vendor as a result of a Purchase Order at the receiving plant

3.7.2 PrerequisitesPurchase Order

3.7.3 Procedure


SAP R/3 menu Logistics Materials Management Inventory Management

Goods Movement Goods Receipt For Purchase OrderPO Number Known

Transaction code MIGO

10. On the Goods Receipt Purchase Orderscreen, make the following entries:

11. After pressing Enter system will fetch all the data from the Purchase Order as shown below:


Enter the Purchase Order No and Press Enter


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12. First do the posting for the Sub-Contracting Material.

13. System defaults the balance quantity in PO, change the quantity to the received quantity if it is different fromdefaulted quantity:


Whichever material is in Blue those detail will be seenin the Item detail


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14. Ensure that the Movement Type is 101.



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Select Item Okand


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GoodsReceipt

Goods Receipt R Select from drop down listfor action

PurchaseOrder

Purchase Order R input the PO number whichgenerated above

4500000054

MovementType

101

Enter

DocumentDate

Document Date R Enter document date

Delivery Note in Header O Delivery Number fromVendor

Vendor Vendor R Defaulted from purchaseorder

Grayed out

Posting Date Posting date R Enter posting date

Bill of lading Bill of lading O Enter bill of lading

Header text Header text O Enter header text



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Select Material tab at Detailed Data.

Material Material tab R Defaulted from PurchaseOrder

Grayed out

Select Quantitytab in Detail data.

Qty in unit ofentry

Quantity in unit ofentry

R Enter the quantity you havereceived from vendor. As adefault system will givepurchase order quantity

Quantitydefaulted fromPurchase Order

Qty indelivery note

Quantity in deliverynote

O Enter the quantity as per vendor delivery challan

Select Where tab in Detail data.

Movementtype

Movement type R Defaulted from headerscreen

Stock type Stock type R Defaulted from materialmaster or purchase order

Plant Plant R Defaulted from purchaseorder1000

GoodsRecipient

Goods Recipient O Enter the name of personwho received goods

Unloadingpoint

Unloading point O

Text Text O Enter the text if required

Select Purchase Ordertab in Detail data.PurchaseOrder

Purchase Order R Defaulted from header data Grayed out

Del.completedind.

Delivery completionindicator

O Defaulted by system if POQty = GR Qty

Select Partnertab in Detail data.

Vendor Vendor name O Grayed out

For this material batch management is not active. Just for reference purpose the following

data is given.

Select Batch tab in Detail data.

This tab will come only if material is managed in batches.

Proceed with the following steps if material is batch managed only.



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Batch Batch number R Enter batch number as datefor batch managedmaterials

Vendor batch Vendor batch O Enter vendor batch numberfor reference

15. Select the Check box Item OK, after entering all the data.

NCCD NCCD O Defaulted by the system

SED Special Excise Duty O Defaulted by the system

ECS Education Cess O Defaulted by the system

Please cross check the BED, AED, SED, NCCD and ECS amount of item as per the VendorExcise Invoice, legally you cannot avail more than what mentioned in Vendor Excise Invoice. Allother information is defaulted by the system. Hence, no action required by the user.

5. Choose Checkat the top of screen.

6. Choose Postto post the document.



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3.7.4 Result

Material document posted.

3.7.5 Example

Material document 5000000028posted, You can see accounting Entries



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3.8 Reconciling Subcontracting Challan

3.8.1 Use

After making Goods Receipt the GR has to be reconciled with the challan sent to subcontractor.

3.8.2 Procedure




Subcontracting ChallansReconcile Quantity

Transaction code J1IFQ

As we have refered challan During Goods receipt here we are getting following message, If you have not refrchallan during Gr following is the Process



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2. On the Quantity reconciliation for Subcontracting Challan screen, make the following entriees.

Field name Description R/O/C User action andvalues

Comment

Material Document Goods Receipt documentnumber

R 5000000344

Mat. Doc. Year Year of document R 2006

Year Subcontacting challan year R 2006

Chalan No Subcontacting challan No R 000000031

Choose on Reconcile icon or F8 to go reconciliation screen.

3. System will take you to new Quantity reconciliation for Subcontracting Challans.

4. Here on this you can see system display items from Goods Receipt at top and items from challan at bottoof screen.

5. Here you need to allocate the components consumed in GR stage are reconciled with challan to do thchoose onAllocate based on FIFO icon in the middle of screen with calculator icon.

6. Or you can do allocation by entering manually also in respective line items at bottom, where Assignquantityfiled is located in white color.



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7. After assignment save the document by choosing Save icon or choose Control + S

3.8.3 Result

Material document was successfully reconciled.

3.8.4 Example

Material Document 5000000028, 2008 was successfully reconciled.



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3.9 Completing/Reversal/Re-credit Subcontracting Challan

3.9.1 Use

This transaction is basically used to complete the challan if you have reconciled as stated above steThere may be cases subcontractor may not able to supply within stipulated 180 days limit then in th

case also same transaction is used for reversal of challan or re-crediting the amount.

3.9.2 Procedure




Subcontracting ChallansComplete/Reverse/Recredit

Transaction code J1IF13

2. On the Subcontracting Challan Complete/Reverse/Recreditscreen, make the following entries:


Chalan No Subcontacting challan No R 0000000031

Excise year Document year R 2006

3. Choose enter to go to inside the challan document.

4. Select the radio button CompleteChallan and.

5. Save the document by choosing Save icon or choose Control + S.



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3.9.3 Result

Subcontracting challan successfully completed.

3.9.4 Example

Subcontracting Challan 0000001 2008; Series Group B1 successfully completed.

3.10 Logistics Invoice Verification for Subcontracting Material

3.10.1 Use

In this process of Logistics Invoice Verification all the Incoming Invoices are verified in terms of their

content, prices and arithmetic. When the invoice is posted, the invoice data is saved in the system. Thsystem updates the data saved in the invoice documents in Materials Management and Financial

Accounting.

3.10.2 Procedure







4. Choose only the Subcontracting material to post the document:



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For Example

USERMANUAL

Posting date Posting Date R Enter the posting date of

document

System will give

current date asdefault


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Currency R Enter the currency in whichthe bill is presented byvendor, if not entered by



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user system will default thedocument currency frompurchase order

INR

Calculate tax Check box calculate

tax

O Check this tick box, system

will calculate tax amountTax code R Select the tax code from

drop down list

V0

Bus.place/sectn

Business place orsection code

R Enter section code if Taxdeduction for source isactive for this vendor

Leave blank forthis process



BaselineDt Base line date forpayment

R Enter the base line date for payment

Will be defaultedif payment termsentered in PO

Pmnt terms Payment terms O Payment terms of document, if entered will bedefaulted from purchaseorder

Due on Payment due on O Will be calculated bysystem

Grayed out


Hide Header data for getting full screen of items if required.


R Select Purchase order /Schedule Agreement in thereference documentcategory from drop downlist

Defaulted foruser



Goods / service items R Select Goods / Serviceitems in indicator from drop

down list

Defaulted



Choose Enter




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3.10.3 Result


3.10.4 Example

Document no. 5105600132created, Account postings are following



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5. Procurement of External Services: Business Process Procedure

5.1Procurement of External Services Procurement Process

5.1.1 Purpose

External Services Management is an application component within Materials Management Module. covers from creation of service master, bid invitation, order placements process, entering andaccepting services and finally invoice verification process.

5.1.2 Prerequisites

The following scenario specific master data must be created for operation of this building block andsubsequent dependent building blocks.

Service Master record

o AMC Charges for Testing Machine

Vendor Master record

Refer the document ofProcurement of Stock Materials



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5.2Creating Service Master

5.2.1 Use

The service master record counts as part of the master data within External Services Managemeand serves as a source of data for you to draw upon when creating services. This enables you save time and reduces the frequency of errors, since you need only enter the complete servicdescriptions in the service master record once.

5.2.2 Procedure


SAP R/3 Menu Logistics Materials ManagementService MasterService

Service Master

Transaction code AC03

9. On the Display Service screen, make the following entries:

10. Click on Create new service icon or press F5(white paper icon) to create new service master.

11. Then you will get Create Service Master Recordscreen, make the following entries:


Enter the Service Category andBase Unit of Measure accordingly

No Need to Enter as Internal No will begenerated and Enter the Short Text only


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ServiceNumber

Service master record(internally assigned)

R You can see %_1 will bedisplayed on this field,leave it as blank. Systemwill assign internal servicenumber

Leave blank

Service description R Annual Mait. Contract forTesting M/C.

Input the value

Service

Category

Service Category R Service:ALL complete Select from drop

down

Base unit ofMeasurement

Base unit ofMeasurement

R AUfor Activity Unit

Basic Data

Mat/srv.grp Material Group orService Group

R 91

Division Division O

Valuationclass

Valuation class R 3200

Long Text

This is free inputplace. You can fullyinput the servicespecification.

O Annual Maintenance Contractfor Testing Machine.

12. Press enter to complete the entries.

13. Press Save icon or Control + S to save the entries.

5.2.3 Result

Service Master Record is created.


Blocking of service procurement can bedone by entering appropriately here

Conversion can be maintained here


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5.3 Creating Purchase Requisition

5.3.1 Use

A Purchase Requisition is created to indicate purchase department to procure materials or services wdetails like how much quantity is required, when required. Generally it is created automatically for Ramaterials and Packing Materials through MRP Run and Spares and Service related to PlantMaintenance Purchase Requisition is generated automatically from Plant maintenance Order. In thisprocess Purchase Requisition is created against Quantity Contract created in above step 1.1.4 withexact delivery / requirement date.

This transaction is optional for the process.

5.3.2 Procedure


SAP R/3 menu LogisticsMaterials ManagementPurchasingPurchaseRequisitionCreate


3. On the Create Purchase Requisition screen, make the following entries:



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Enter the A/c Assignment Categoryas K for Cost center and ItemCategory D for Services

Enter theShort Text

Enter the appropriateMaterial Group Plant andPurchasing Group

When Item Category D is enterer one newtab in the Item Detail Services is generatedto enter the Service No.


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4. After pressing enter system shows a small pop-up window where respective G/L Account and Cost Centeto be entered.


Enter the Service No, Quantity and Gross

Price and press Enter


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Enter the appropriate G/LAccount and Cost Center


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5. Press or Ctrl+S to Save the Purchase Requisition.


Enter the Desired Vendor if Vendor is known tothe person who is creating PR


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5.3.3 Result

Purchase Requisition is created,

5.3.4 Example

Purchase requisition number0010000180created.



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5.4 Assign and Process Purchase Requisition

5.4.1 Use

c) This section explains the functions provided by the SAP System for converting requisitions intoexternal purchasing documents (purchase orders, contract release orders, scheduling agreementdelivery schedules, RFQs), and the processing options thereby available to you:

Assigning means defining the desired source for each purchase requisition itemo Further processing involves generating lists of requisitions that have been assigned or flagged a

outlined above, and the subsequent creation of RFQs, purchase orders, or lines of deliveryschedules under scheduling agreements.

5.4.2 Procedure


SAP R/3 menu Logistics Materials Management PurchasingPurchase

Requisition Follow-On FunctionsAssign and Process

Transaction code ME57

7. The assignment of sources to and further processing of purchase requisitions are two distinct functionYou can choose whether you wish to perform the functions in two separate steps or in just one.



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8. Below are the Selection Parameters to restrict the process of PO from PR

9. Press or F8 to enter into the next screen.

1. Enter the appropriatePurchasing Group2. Enter the Scope of List as B1 forPR generated through MRP Runand A for remaining PR3. Enter the appropriate Plant4. Enter the Item category as D

1. Select the Assigned PurchaseRequisition (For Spares PRnormally the End User may haveentered the Vendor in the PR)2. Select the appropriate Checkboxes for Processing the PR

Documents

1. Sap Mm Guide (PART3)