Definitions of Enterprises Structure

Term Definition Example

Client

A client is an independent organizational unit.A client is considered synonym for a group.A client is self-contained technical unit.General data & tables used for several organization structure are stored at client level.Client is positioned in the highest level in Enterprise Structure.Several company code can be uniquely assigned to a client.

Tata Group

CompanyCompany is the topmost organizational unit after client which incorporates individual financial accounting statements of several company codes. A company can have many company codes. In SAP it is optional to create company.

1. Tata Motors2. Tata Power3. Tata Communication

Company Code

A Company Code is a legal entity & independent accounting unit.Balance Sheet & Profit & loss account are created at Company Code level.Company Code is organizational unit prepared by FI.Several Company Code can be uniquely assigned to a Client.Several Company Code under same client can have same chart of accounts.

1. Tata Motors - TMCL2. Tata Power - TPCL3. Tata Communication - TCCL

Plant

Plant is an organizational unit within a company where activities take place. A plant will produce goods and makes goods available for the company.

1. Generation Plant - GPCL2. Transmission Plant - TPCL3. Distribution Plant - DPCL

Storage Locations

Storage location is an organizational unit which actually differentiates between different material stocks in a Plant. Storage location is a place where stock is kept physically. Plant can be consisting of multiple storage location. All data is stored at storage location level for a particular storage location.

1. Mechanical - MEC2. Electrical - ELE3. General - GEN4. Civil - CIV

Purchasing Organization

Purchasing Organization is an organizational unit under company or plant which is responsible for procurement activities according to requirements. It is responsible for external Procurement. Purchasing organization can be specific to plant or company.

1. Central Pur Org - CPOG

Standard Purchasing Org

Standard purchasing organization is the default purchasing organization. We can sometimes assign standard purchasing organization to some specific plant if we want to have default purchasing organization for that plant.

Chart of Accounts

Chart of Account is the list of all G/L account used by one or several Company Code.COA are of three types: 1. Operational COA - The operational Chart of accounts contains the G/L accounts that are used for posting in the company code during the daily activities. Financial Accounting and Controlling use this Chart of Account. We have to assign “Operational COA “to each company code.2. Group COA - Contains the G/L that are used by the entire Corporate group. This allows the company to provide report of the entire corporate group.3. Country Specific COA - It contains the G/L needed to meet the Country’s Legal requirementT Code OB13 enter group COA for operational COA. After doing this, when you create GL account in FS00 group account Number will be required field. You have to enter group account number for all GL account.T code OB62 enter country COA for the company code and operation COA. When you create GL account (FS00) in control Tab >>> you can enter alternate account number, which is GL account number of country COA..Note: Operating COA and country COA have one to one relation i.e. one GL account number of country COA can assign to only operating GL account number.

1. TPCL Chart of Account - TPCL

Account Groups

The account group is a summary of accounts based on criteria that effects how master records are created.The account group determines: The number interval from which the account number is selected when a G/L account is created. The screen layout for creating G/L accounts in the company code-specific area

1. Liabilities - 12. Assets - 23. Income - 34. Expenditure - 4

Retained Earnings Account

Within the balance carry forward, the P+L accounts are carried forward to the retained earnings accounts on the balance sheet (definition in Transaction OB53). No documents are created. The balance carry forward can therefore not be carried out via the line item display.The opening balance on a retained earnings account consists of: Opening balance = Closing balance of the previous year + Retained earnings from the P+L accountsConsequently, the opening balance on a retained earnings account does not correspond to the closing balance of the previous year.

1. Retained Earnings A/C - 100100

Fiscal Year Variant

In SAP the fiscal year is assigned as a variant. Posting periods can further be defined in each fiscal year variant. SAP allows a maximum of 16 posting periods in each fiscal year. It consists of 12 regular posting periods and 4 special periods which can be used for audit or tax adjustments to already closed periods.

1. Fiscal Year Variant - K4 / V3

Reconciliation Account

When you post items to a subsidiary ledger, the SAP system automatically posts the same data to the general ledger at the same time. Each subsidiary ledger has one or more reconciliation accounts in the general ledger. These reconciliation accounts ensure that the balance of G/L accounts is always zero.

1. Sundry Creditors A/C2. Sundry Debtors A/C

Field Status Group

Field Status: While posting the transactions we need to input many fields like cost center, profit center, plant. Etc.In some scenarios cost center will be required (for expense posting), in some plant will be required (inventory postings), value date in Bank accounting ....etc.It will be cumbersome to input all the filed in all the scenarios .so we can make the input of the filed as Required ( which need to be given to post the transaction ), Optional ( we can enter those or we can leave ) , Display ( we cannot the edit the filed ) and suppressed ( will not be displayed while posting ).SO we can set the status of the filed as R/O/D/S.Variant : Variant is the tool which is provided by SAP which help in assigning same set of properties for more than one object .Example we define fiscal year Variant and can be assigned to the more than one company code .if a filed status variant is assigned to more than one company code same set of screen filed will be displayed while posting those company fields.

1. TPCL Field Status Group - TPCL

Number Ranges Number Ranges are used to give number to the documents in MM, FI, etc……

Tolerance KeyTolerance will be on upper limit or lower limit provided in document limit.

Purchasing Group

Purchasing group is an organizational unit which is responsible for everyday procurement activities within an organization.

1. Chef - C01

Material Groups

Material group is a wider range of material type. Materials with some common attributes are taken together and they are assigned to material group. For Example: Suppose we have some materials which need packaging, so there material type can be electrical or food products but we can group these material types and put them in packaged material group.

1. Steel - 1012. Cable - 102

Vendor Account Groups

Vendors are categorized according to requirements and some of the vendors having similar characteristics are grouped together and placed in one category. For Example: All local vendors can be placed under one account group.

1. Domestic Vendors - DOM2. Import Vendors - IMP

Purchasing Info Record

SAP R/3 works on all real time data that include material master and vendor master. Material and vendor master are separate data records for keeping information of materials and vendors from which material is procured. The combined information of material and vendor altogether is kept in a record that we call as purchase info record. The key points about purchase info record are as follows Purchasing info record stores information on material and vendor supplying that material. For Example: Vendors current price of a particular material is stored in info record.Purchase info record can be maintained at plant level or at purchasing organization level.Info record can be maintained for four procurement types which are as follows:Standard: Standard info record has information on standard orders (orders include details of vendor and material). This info record will include vendor’s price for supplying the particular material.Subcontracting: Subcontracting info record has information on subcontract orders. This info record will include price for assembling the raw material that is supplied by the ordering party.Pipeline: Pipeline info record has information on material that is provided by vendor through pipes. For Example: like water, electricity.Consignment: Consignment info record has information on material that is kept at ordering party premises. This info record contains vendor’s price that is to be paid for withdrawing material from consignment stock.

Source List

The combined information of material and vendor altogether is kept in a record that is known as purchase info record. But a particular material can be ordered from different vendors in different time intervals. This information can be maintained in a list that is called as source list. The key points about source list are as follows: Source list include list of possible sources of supply for a material over a given framework of time. Source list specifies the time period of ordering of a particular material from a given vendor. Source list can be copied from one plant to another plant.Source list can be created by following two ways: Automatically Manually

Define Enterprise Structure of FI & MM

Define Company – OX15

Define Company Code – OX02

Define Plant – OX10

Define Storage Location – OX09

Define Purchasing Organization – OX08

Assignment of Company to Company Code – OX16

Assignment of Plant to Company Code – OX18

Assignment of Purchasing Org to Company Code – OX01

Assignment of Purchasing Org to Plant – OX17

Enterprise Structure View – EC01

Update Qty & Value for Material Type for Plant – OMS2

Define Chart of Accounts – OB13

Define Chart of Accounts to Company Code – OB62

Define Account Groups with Number Ranges – OBD4

Define Retained Earnings Account – OB53

Define Fiscal Year Variant – OB29 (We are using standard fiscal year variant K4 & V3)

Assign Fiscal Year Variant to Company Code – OB37

Define Posting Period Variant – OBBO

Assignment of Posting Period Variant to Company Code – OBBP

Open & Close Posting Periods – OB52

Define Field Status Group – OBC4

Assignment of Field Status Group to Company Code – OBC5

Check Global Parameters of Company – OBY6

Maintain Company Code for Material Management: OMSY

Maintain Valuation Grouping Code to link valuation area to chart of Accounts – OMWD

MM Detailed Processes

1. Material Master

Material Type Definitions:

Material Description Material Type Definitions

Raw Material ROH

It is material on which no process is done...which is totally raw...For eg..in the cement industry, limestone is a raw material.. Raw materials are always procured externally and then processed. A material master record of this type contains purchasing data, but not sales data since they cannot be sold.

Spare Parts Material ERSA Spare parts are used to replace defective parts. They may be kept in stock. A material master record of this material type can contain purchasing data, but not sales data.

Finished Material FERT

The material on which all the process are done. For eg cement is finished product....Finished products are produced in-house. Since they cannot be ordered by Purchasing, a material master record of this material type does not contain purchasing data, only sales data.

Semi-Finished Material HALB

Semi-finished material is the material on which few process is done for eg, clinker is an example in cement industry…Semi-finished products can be procured externally and manufactured in-house. They are then processed by the company. A material master record of this material type can contain both purchasing and work scheduling data

Non Valuated Material UNBW This UBNW is non-valuated material so value wouldn't be captured in the SAP but quantity is maintained.

Non Stock Material NLAG If you want to have neither quantity nor value to be captured in inventory than use NLAG non- stock material.

Pipeline Material PIPE

A pipeline material is a material that enters the production process directly from a pipeline (for example, oil), from a pipe (for example, mains water), or via a cable (for example, electricity), and can be consumed. Pipeline materials are represented by the material type PIPE.

Packaging Material VERP

Packaging materials are intended to enclose or hold together the materials that are to be packed. In other words, the material that is to be packed can be packed into or onto the packaging material. The packaging material can be a load carrier. The most important packaging materials include crates, boxes, containers, wire baskets, and pallets.

Returnable Packaging Material LEIH

Returnable packaging consists of materials that are stored at the customer location but which remain the property of your company. The customer is only required to pay you for the returnable packaging if he does not return it to you by a specified time. Using this function you can, for example, process euro-pallets. You can also use it to resell returnable packaging to a third party. Since stocks of returnable packaging form part of your valuated stock even when they are at the customer site, you must manage them in your system.

Operating Supplies HIBE

Operating supplies are procured externally and required for the manufacture of other products. A material master record of this material type can contain purchasing data, but not sales data. We will use operating supplies for consumables items which are consumed during using raw material to converting it as finished product.

Manufacturer Parts HERS

Trading Goods HAWA

Trading goods are movable goods intended for commercial exchange. Examples of trading goods are market goods, consumption goods and durable goods. Trading goods are always bought and re-sold by your company. The material master record for trading goods therefore always contains purchasing data and sales data. Trading goods are managed in the SAP System using the key HAWA.

Production Resources & Tools FHMI

Services DIEN

Selling Service you can go for creating sales order with material with material type (DIEN material type) and sale it. You can record time and expense, approve time and transfer to FI/CO W.R.T. sales Order. For DIEN material type used for scenarios like time & material (which mainly used for resource related billing), milestone billing where you have different sales order document type.

Waste ABF This material type is used for waste management.

Material Types:

Material Description Material Type Standard Valuation ClassRaw Material ROH 3000Spare Parts Material ERSA 3040Finished Material FERT 7920Semi-Finished Material HALB 7900Non Valuated Material UNBW 3300Non Stock Material NLAG 10Pipeline Material PIPE Packaging Material VERP Returnable Packaging Material LEIH 3050Operating Supplies HIBE 3030Manufacturer Parts HERS Trading Goods HAWA 3100Production Resources & Tools FHMI 7900

Services DIEN 3200Waste ABF 3300Samples AEM 3100

Valuation Class Creation and linking with Material Types: OMSK

Creation of Material Group – OMSF

Creation of Purchasing Group – OME4

Creation of Material Master – MM01

Change of Material Master – MM02

Display of Material Master – MM03Same as previous Screens

Mass maintenance of Material Master – MM17 / MASS

Extending of Material – MM01

Material Master List : MM60

Create Number Ranges for Material – MMNR

2. Vendor Master Creation of Vendor Master : XK01

Change in Vendor – XK02 Display in Vendor – XK03 Mass maintenance – MASS Extended – XK01

3. Reference Purchasing Organization - 4. Consumption Based Planning MRP5. Account Group for Vendor : SPRO->IMG->FA New->A/C Receivables & A/C Payables->Vendor

Accounts->Master Data->Preparation for Creating Vendor Master Data->Define Account Group with Screen Layouts

Create Number Ranges for Vendor Accounts – Same Path

6. Creation of Reconciliation account in Vendor – FS00

7. Purchase Requisition Create Purchase Requisition : ME51N

Change purchase requisition : ME52N

Display Purchase Requisition : ME53N

List of Purchase Requisition : ME5A

8. Stock Purchase Order with Reference to Purchase Requisition : Create Purchase Order – ME21N

Change Purchase Order – ME22N

Click on this button to change the PO Number-

Display Purchase Order – ME23N

List of Purchase Order Numbers : ME2N

9. Goods Receipt against Purchase Order : MIGOEnter your PO No.

Enter Storage Location and Click on Item OK Check Box

Then Click on Check button on the top and click on Post

How to saw Accounting Document – MIGO - > Display

Click on Execute

Go to Document Info – Click on FI Document

10. Invoice Verification : MIRO

Enter PO No.

Click on Calculate Tax then system will take you on payment tab, enter Base line date here and enter invoice amount on basic data tab.

Click on Simulate

Click on POST11. To Check Vendor Balances – FBL1N

So Vendor Payment of Rs. 10000 is due that Finance need to pay.12. Vendor Payment : F-53

Enter following details: 1. Document Date2. Bank Account3. Invoice Amount that you want to clear4. Value Date5. Vendor Account No.

Select this check box which will select all items and then select this check box

which will deselect all items, Now double click on your invoice item and then simulate it thru task bar Document - > Simulate

Now Simulate -> Post

13. Down payment Request Creation – F-47

Save - 14. Down Payment Posting – F-48

Fill data mentioned in screenshot below

Click on request then system will show you all down payment requests, then select your request and click on create down payment

Then Save it -

15. How to Saw Down payment in Vendor Account – FBL1NSelect Special GL Transactions in this report

16. Transfer Down Payment from Special GL to Normal GL – F-54

17. Stock Checking18. Purchase Requisition with Batch Number19. Header Level Release Strategy in PR20. Item Level Release Strategy in PR21. Release Strategy with classification and Without Classification22. Purchase Requisition

Create Display Change Report

23. Request For Quotation Create Display Change Quotation Price Comparison

24. Release Strategy In RFQ25. Contract types

Create Display Change

26. Contract thru PR/RFQ27. Release Strategy for Contracts28. Quantity & Value Contract29. Scheduling Agreement

Create Display Change

30. Make Schedule lines31. Create Schedule Agreement via MRP32. Create PO with two different vendors (one for goods & one for freight)33. Create Consignment PO

Create Change Display

34. Create Info Record Standard Consignment Pipeline Subcontracting

35. Source List Create Display

Change36. Create BOM

Create Display Change

37. Subcontracting PO Create Display Change

38. Subcontracting PO with scrap in BOM39. Subcontracting PO with Rework Process40. Direct Consumption PO

Create Display Change

41. Asset Purchase Order Create Display Change

42. Loan Licensing PO Create Display Change

43. Service Purchase Order Create Display Change

44. Service Work Sheet Create Display Change

45. Split Valuation for Material46. Stock determination for Material47. Raw Material Excise Purchase Order

Create Display Change

48. Asset Excise Purchase Order Create Display Change

49. Goods Receipt for:

Standard Consignment Subcontracting Excise

50. Invoice Verification Goods & Planned Delivery Cost

51. Release Strategy for Purchase Order with change features52. Stock Transfer Order

Plant to Plant Storage Location to Storage Location Company Code to Company Code

53. Import Purchase Order Create Display Change

54. Invoicing Plan55. Valuation Code56. Account Determination:

Transaction/ Event Key Account Modifier Valuation Class G/L Account Rule Procedure

57. Pricing Procedure Condition Type Condition Category Accruals

58. Tax Procedure Account Determination- OB40

59. Difference Between TAXINN & TAXINJ60. Wrong GRN :

Normal Excise

61. Return Delivery: Normal Excise After a specific period

62. Excise JV63. Register:

Extraction Print

64. Registers Updating65. Monthly Utilization66. Create Outgoing Excise Invoice67. Return Delivery via delivery for STO68. Excise Scenario for STO69. Types of Physical Inventory70. Physical Inventory

Create Display Change

71. Physical Inventory Count72. Physical Inventory Difference Posting73. Recount Process of Physical Inventory74. Output Determination for PO75. Output determination for GR/GI76. Output types for:

Purchase Order GR GI

77. Valuation Class & Material Type Link78. MRP for Consignment Material79. Material Valuation through FIFO method80. Batch Determination81. Quota Arrangement82. Vendor Evaluation83. Scaling for PO84. MPN Functionality85. Serial Number Management86. Vendor Confirmation87. Source Inspection for Externally procured Material88. Movement type linking with G/L Account89. Goods Issue With FIFO method90. Quality Based invoice in SAP MM91. Tables In SAP MM92. Steps in Cut Over Strategy93. Transaction type in Excise94. How can we create Tax Code95. Excise Based Subcontracting Process96. Difference Between Non Stock And Non Valuated Material97. Subsequent Adjustment in Subcontracting process98. Credit Memo/ Debit Memo in invoicing99. How can we maintain free item in PO

100. Stock Types101. Data Migration with open data with GR & IV, Partial and consumption is also done102. Non Valuated Item PO with traceability of IN & OUT103. Pipeline104. Returnable Transport Packages