Module 7 - Materials Management Configuration for Goods Receipts Reach.ucf.Edu

7/30/2019 Module 7 - Materials Management Configuration for Goods Receipts Reach.ucf.Edu

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Module 7: Materials Management Configuration

for Goods Receipt

With the accounts and vendors configured, more configuration activities are required in the

Materials Management module before purchasing transactions can be completed. First, default

values and tolerance limits must be set.

7.1 Default Values for Inventory Management Reservations

To set up the default values for inventory management reservations, follow the menu path:

Materials Management Inventory Management and Physical Inventory

Plant Parameters (click clock icon )

which will produce the following screen:

Click on the New entries icon ( ), which will produce the following screen:

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Enter your plant (##PT), then enter/select the following:

Create Sloc. Automat.: CheckedThis option allows automatic creation of the storage location data in the materialmaster record at the time of the first goods receipt.

Del. compl. Default: Checked

If this indicator is set, the system suggests the "delivery completed" indicator as adefault value when a goods receipt is posted with reference to a purchase order or

order (provided that the quantity delivered falls within the under/over delivery

tolerances). The delivery completed indicator denotes a closed purchase orderitem for which no more goods receipts are expected.

Reservations

Movement allowed: CheckedDays mvt. allowed: 30Retention period: 30

A reservation is a request to the warehouse to keep a material ready for issue at a future

date for a certain purpose. The purpose of a reservation is to ensure that a material is

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Enter plant ##PTCheck these items

Enter 30 in both Reservations fields


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available when required. A material can be reserved for a cost center, an asset, or an

order for example. The Days mvt. allowedparameter sets the number of days before the

reservation data that material can be moved. If the requirement date of a reservation itemis further in the future than the number of days specified here, no movements are yet

allowed in respect of this item. For example, if the current date is 6/1/2004 and the Daysmvt. allowed is set to 30, then material with a reservation date of 7/1/2004 or earlier can

be moved. The Retention period indicates the time in days during which a reservationitem resides in the system before being deleted by the reservation management program.

If the "date required" of a reservation item is older than the current date minus the

number of days specified here, the system sets the deletion indicator in the reservationitem.

When you have made the appropriate entries, click on save icon ( ), then click on the back

icon ( ) and verify that your plant is now listed, then click on the back icon ( ) one more

time to exit to the IMG.

7.2 Maintain Purchase Price and Discount Tolerance Limits

These settings decide how much deviation from the data in the purchase order that will be

allowed. To set the purchasing tolerance limits, follow the menu path:

Materials Management Purchasing Purchase Order Set Tolerance Limits for

Price Variance (click clock icon )


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EnterPE for the Tolerance key, ##FS for the Company code, select Check limit for the

percentage tolerance limits and enter 5% for the value. Click on the next entry icon ( ),

which will give you an empty version of this screen:

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EnterPE (price variance: purchasing) for

Tolerance key, ##FS for company codeCheck and enter5 for percentage limits


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EnterSE for the Tolerance key, ##FS for the Company code, select Check limit for the

percentage tolerance limits and enter 10% for the value. Click on the save icon ( ), followed

by the back icon ( ). Verify that both tolerance keys (PE and SE) are now listed for your

company code, then click on the back icon ( ) two more time to return to the IMG.

7.3 Maintain Goods Receipt Tolerance Limits

Next, we can set the Goods Receipt Tolerance Limits to decide how much variation from thedata in a purchase or production order will be allowed at goods receipt. To do this, follow the

menu path:

Materials Management Inventory Management and Physical Inventory Goods

Receipt Set Tolerance Limits (click clock icon )


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EnterSE (maximum. cash discount deduction: purchasing)

for the Tolerance key, ##FS for company code, check andenter10 for percentage limits


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EnterB1 for Tolerance key

##FS for Company Code

Enter 5 for lower and upper


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EnterB1 for the Tolerance key, ##FS for the Company code, select Check limit for the

percentage tolerance limits and enter 5% for the value. Tolerance key B1 determines the level

where a warning message will be displayed. A warning message merely informsit will still let

you complete the transactions. Click on the next entry icon ( ), which will give you an

empty version of this screen:

EnterB2 for the Tolerance key, ##FS for the Company code, select Check limit for the

percentage tolerance limits and enter 10% for the value. Tolerance key B2 determines the levelwhere an error message will be displayed. An error message will not let you complete the

transaction. Click on the next entry icon ( ) which will give you another empty version of

this screen:

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EnterB2 for Tolerance key

##FS for Company Code

Enter 10 for lower and upper limits


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EnterVP for the Tolerance key, ##FS for the Company code, select Do not checkfor all entries.The VP tolerance key checks the moving average price in the material master to the purchase

order price. As the moving average valuation is a complicated process in SAP, we will choose

here to avoid problems by not checking for this variance. Click on the save icon ( )

followed by the back icon ( ). Verify that three tolerance keys (B1, B2 and VP) are now

listed for your company code, then click on the back icon ( ) two more time to return to the

IMG.

7.4 Maintain Invoice Receipt Tolerance Limits

We also need to set tolerance limits for invoices to determine how much variation from the

purchase order will be allowed. To do this, follow the menu path:

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EnterVP for Tolerance key

##FS for Company CodeSelect Do not checkfor all options


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Materials Management Logistics Invoice Verification Invoice Block Set

Tolerance Limits (click clock icon )


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There are a number of tolerance keys that need to be set. Using the same procedure as before,

set the following tolerance keys for invoice receipts:

Lower Limit Upper Limit

ToleranceKey

Comp.Code Absolute Percentage Absolute Percentage

AN ##FS Do not check Check limit: 5% Do not check Check limit: 5%

AP ##FS Do not check Check limit: 5% Do not check Check limit: 5%

BD ##FS Do not check Do not check Do not check Do not check

BR ##FS Do not check Do not check Do not check Do not check

BW ##FS Do not check Do not check Do not check Do not check

DQ ##FS Do not check Do not check Do not check Do not check

KW ##FS Do not check Do not check Do not check Do not check

PP ##FS Do not check Check limit: 5% Do not check Check limit: 5%

PS ##FS Do not check Do not check Do not check Do not check

ST ##FS Do not check Do not check Do not check Do not check

After each tolerance key entry, use the next entry icon ( ) to get a blank screen. When all

tolerance keys are entered, click on the save icon ( ) to save the tolerance keys.

7.5 Confirm Qty and Value Updating in Material Type for Plant

In cost accounting, it is important to have a correct value for the cost of material used in

production. The R/3 system can be configured to collect information on material movements

(such as goods receipts and invoice receipts) in each period at historical exchange rates. Thisdata is used during material price determination to calculate new valuation prices for the

material. Then, the material stock account is reconciled in multiple currencies with the accounts

in Financial Accounting. To allow for automatic updating of material values for the material

types we are using, follow the menu path:

Logistics General Material Master Basic Settings Material Types

Define attributes of material types (click clock icon )


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Select material type FERT, then double-click on Quantity/value updating. This will bring

up the following screen:

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Select FERT, then double-click

on Quantity/value updating

CheckQty. updating and Value upd.

for your plant, then click on the saveicon


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Check the Qty. updating and Value upd. options for your plant (##PT), then click on the save

icon ( ).

Click on the back icon ( ), then repeat the process for material types

HALB and ROH.

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Documents

Module 7 - Materials Management Configuration for Goods Receipts Reach.ucf.Edu