Proc. of Stock Materials-Revised-2

7/27/2019 Proc. of Stock Materials-Revised-2

1/119

Materials Management

User manual

Procurement Of Stock Materials

Procurement

OfStock Materials

Prepared By

M.Ramesh Kanna


2/119

Materials ManagementUser manual


Confidential Page 1

Icons

Icon Meaning

Caution

Example

Note

Recommendation

Syntax

Typographic Conventions

Type Style Description

Example text Words or characters that appear on the screen. These include field names,screen titles, pushbuttons as well as menu names, paths and options.

Cross-references to other documentation.

Example text Emphasized words or phrases in body text, titles of graphics and tables.

EXAMPLE TEXT Names of elements in the system. These include report names, program names,

transaction codes, table names, and individual key words of a programming

language, when surrounded by body text, for example, SELECT andINCLUDE.

Example text Screen output. This includes file and directory names and their paths,messages, source code, names of variables and parameters as well as names ofinstallation, upgrade and database tools.

EXAMPLE TEXT Keys on the keyboard, for example, function keys (such as F2) or the ENTERkey.

Example text Exact user entry. These are words or characters that you enter in the systemexactly as they appear in the documentation.

Variable user entry. Pointed brackets indicate that you replace these words andcharacters with appropriate entries.


3/119



Confidential Page 2

Abbreviations

R Required entry field

(used in the end-user procedures)

O Optional entry field


C Conditional field



4/119



Confidential Page 3

ContentsProcurement of Stock Materials ........................................................................................................... 6

1 Procurement of Stock Materials Raw Material Local / Return.......................................................... 6

Purpose ..................................................................................................................................... 6

Prerequisites .............................................................................................................................. 6

1.1 Request for Quotation (RFQ) .................................................................................................47

Use ..........................................................................................................................................47

Procedure .................................................................................................................................47

Result.......................................................................................................................................56

Example ...................................................................................................................................56

1.2 Message output: RFQ............................................................................................................57

Use ..........................................................................................................................................57

Procedure .................................................................................................................................57

1.3 Maintaining Quotation ..........................................................................................................60

Use ..........................................................................................................................................60

Procedure .................................................................................................................................60

Result.......................................................................................................................................66

Example ...................................................................................................................................66

1.4 Price Comparison .................................................................................................................67

Use ..........................................................................................................................................67

Procedure .................................................................................................................................67

1.7 Creating Purchase Requisition ................................................................................................71Use ..........................................................................................................................................71

Procedure .................................................................................................................................71

Result.......................................................................................................................................74

Example ...................................................................................................................................74

1.8 Purchase Order.....................................................................................................................75

Use ..........................................................................................................................................75

Procedure .................................................................................................................................75

Result.......................................................................................................................................79

Example ...................................................................................................................................80

1.9 Message Output....................................................................................................................80

Use ..........................................................................................................................................80

Procedure .................................................................................................................................80

1.10 Goods Receipt for Purchase Order.........................................................................................83

Use ..........................................................................................................................................83

Prerequisites .............................................................................................................................83

Procedure .................................................................................................................................83


5/119



Confidential Page 4

Result.......................................................................................................................................87

Example ...................................................................................................................................87

1.13 Logistics Invoice Verification...............................................................................................88

Use ..........................................................................................................................................88

Procedure .................................................................................................................................88

Result.......................................................................................................................................92

Example ...................................................................................................................................92

1.14 Returning Delivery..............................................................................................................92

Use ..........................................................................................................................................92

Procedure .................................................................................................................................92

Result.......................................................................................................................................97

Example ...................................................................................................................................97

1.15 Excise Invoice Other Movements..........................................................................................97

Use ..........................................................................................................................................97

Procedure .................................................................................................................................97

Result.....................................................................................................................................100

Example .................................................................................................................................100

1.16 Posting and Printing the Excise Invoice................................................................................101

Use ........................................................................................................................................101

Prerequisites ...........................................................................................................................101

Procedure ...............................................................................................................................101

Result.....................................................................................................................................104

1.17 Credit Memo....................................................................................................................105

Use ........................................................................................................................................105

Prerequisites ...........................................................................................................................105

Procedure ...............................................................................................................................105

Result.....................................................................................................................................109

Example .................................................................................................................................109

2 Procurement of Stock Materials from SSI Vendor............................... Error! Bookmark not defined.

Purpose ....................................................................................... Error! Bookmark not defined.

2.1 Master Data Maintenance for SSI Vendors .................................. Error! Bookmark not defined.

Use ............................................................................................. Error! Bookmark not defined.

2.3 Purchase Order........................................................................ Error! Bookmark not defined.

Use ............................................................................................. Error! Bookmark not defined.Procedure .................................................................................... Error! Bookmark not defined.

Result.......................................................................................... Error! Bookmark not defined.

Example ...................................................................................... Error! Bookmark not defined.

2.4 Message Output....................................................................... Error! Bookmark not defined.



6/119



Confidential Page 5

Procedure .................................................................................... Error! Bookmark not defined.

2.5 Goods Receipt for Purchase Order............................................. Error! Bookmark not defined.





2.6 Logistics Invoice Verification.................................................... Error! Bookmark not defined.





Procurement of Stock Materials for Depot......................................... Error! Bookmark not defined.

Purpose ....................................................................................... Error! Bookmark not defined.

3.1 Master Data Maintenance for Depot ........................................... Error! Bookmark not defined.



3.3 Purchase Order........................................................................ Error! Bookmark not defined.





3.4 Message Output....................................................................... Error! Bookmark not defined.



3.5 Goods Receipt for Purchase Order............................................. Error! Bookmark not defined.





3.6 Logistics Invoice Verification.................................................... Error! Bookmark not defined.






7/119



Confidential Page 6

Procurement of Stock Materials

1 Procurement of Stock Materials Raw Material Local / Return

PurposeThis process describes the procurement process of raw materials from indigenous source of supply withCountry Version India (CIN) relevant process like processing of Excise Duty (ED) and Sales Tax (ST) process.

PrerequisitesThe following scenario specific master data must be created for operation of this building block.

1. Material Master Record

2. Vendor Master Record3. CIN Master Data

Material Master record

Menu Path Logistics Materials ManagementMaterial MasterMaterial Create (General)

T Code

MM01 Create

MM02 ChangeMM03 Display


8/119



Confidential Page 7

Creation of Material Master

Transaction Code: MM01

Press Enter to see the pop-up window.

Enter the Industry Sector

Enter the Material Type

Material No. has to given


9/119



Confidential Page 8

Select the required views and press Enter to input the organizational levels.

This selection of Views differs from each material type, for Eg. Sales View are required for Trading goods


10/119



Confidential Page 9


11/119



Confidential Page 10

Press Enter to input the details of the Material.


12/119




Enter Material Description

Material Group as classified

Base unit of Measurement

If you have old material No. ,

you can use it


13/119




Enter Purchasing Group

If material has to be used as MPN,

then choose ZMPN profile

If manufacturer is required,enter manufacturers name


14/119




Note:MRP views are required for materials which are under BOM

Put MRP type PD

Choose 100 for 1000 Plant

Put EX for lot size


15/119




Proc. Type F- used for buying itemsE- used for Produced in-house

X- both proc. types

Put always 000

Procurement Lead-time for material in

days


16/119




Put 10- Make to stock

Put always 02


17/119





18/119




If unit of issue differs from base

unit of measure, enter relevant unit

Enter max. Shelf life period ifit is managed

Time unit of shelf life period


19/119




Enter Profit Center as1000-for Genus overseas

2000- For Genus Innovation


20/119




Note: Refer QM user manual for doing this activity

If Material is relevant,

Inspection setup has to be

done


21/119




Important Note

Please refer the sheet given below and use only related Valuation class as recommended by us.

If Raw material is Imported use Valuation class-3001

Raw Material is Local use Valuation class-3000

Enter relevant

valuation Class for

each material type

Enter moving average

price for material


22/119




Material Types - External Numbers

Disc. Of material type Material

Type

Description Valuated/Non

ValuatedValuation Class

1 Electrical Raw MaterialROH

Electrical Raw MaterialValuated

3000/3001

2 Electronics Raw MaterialZERM

Electronics Raw MaterialValuated

3000/3001

3 Mechanical Raw materialZMRM

Mechanical Raw materialValuated

3000/3001

4 Sheet Metal Raw MaterialZSMM

Sheet Metal Raw MaterialValuated

3000/3001

5 Rubber Raw materialZRRM

Rubber Raw materialValuated

3000/3001

6 Plastics MaterialZPRM

PlasticsValuated

3000/3001

7 Packing Material-GenusZPAK Packing Material Valuated

3000/3001

8Final Packing MaterialVERB Final packing material Valuated

3050

9 Production ConsumableZPCO Production Consumable Valuated

3002/3003

10Production Resources ToolsFHMI

Production Resources ToolsValuated

3020

11Other ConsumablesZOCO

Other ConsumablesValuated

3003

12Printing and Stationery ItemsZPSI

Printing and Stationery ItemsValuated

3001/3002

13SparesERSA Engineering Spares - Valuated Valuated

3040

14Trading GoodsHAWA

Trading Goods-ProjectValuated

3110

15UtilitiesZUTL Utilities Valuated

3004

16Returnable Packing MaterialLEIH

Returnable Packing MaterialNon-Valuated

Nil

17Scrap MaterialsZSCP Non-Valuated Non-Valuated

Nil

18AssetZASS Non Valuated Non-Valuated

Nil

19Semi Finished-Mech.Assembly HALB Semi Finished-Mech.Assembly Valuated 7900

20Operating SuppliesHIBE

Tools used as aid for ProductionValuated

3300

21Semi Finished-Elec.AssemblyZESF

Semi Finished-Elec.AssemblyValuated

7900

22Finished GoodsFERT

Finished GoodsValuated

7920


23/119





24/119




After entering all the details, press to save the Material.


25/119




System message of Material

Successfully Created


26/119




Vendor Master record

Menu Path Logistics Materials Management PurchasingMaster Data Vendor Central

T Code

XK01 Create

XK02 ChangeXK03 Display

Press Enter to input the details of the vendor.

Vendor No will be generated automatically

Enter Company Code

Enter Account Group

Enter Purchasing Organization


27/119





28/119




Note:

For Domestic Vendors- 13110000

For Import Vendors - 13111000

Click here to enter Excise related

Entries

Enter reconciliation account

for Domestic


29/119





30/119




Press to save the Vendor master and the no is generated automatically.

Note:

For Domestic Vendors Use ZD

For Import Vendors- Use ZI

Put tick inGR based invoiceverification

& Automatic PO

Put tick, if vendor is

Service Vendor


31/119




System message of

successfully creation of

vendor master


32/119




CIN Master Data

To maintain Chapter Ids

Transaction Code: J1ID

Select Chapter ID and Press


33/119




Press New Entries to go to the next screen.

Press New Entries to Create New Cha ter ID


34/119




Press to save the data.

Enter the Chapter ID

Enter the Description as per law


35/119




Material ID and chapter ID combination

Select Material and Chapter ID Combination and Press

Select the Material and Chapter-Id Combination


36/119




Press New Entries to Create New Material Number and Chapter ID Combination


37/119


38/119




Vendor Excise Details


Select Material and Chapter ID Combination and Press

Note: If you have already maintained in Vendor Master Data in Tab CIN details, you need not to do this

activity

Select the Vendor Excise Details


39/119




Press to save the data.Note:

1.Enter EXCISE details, put excise indicator 1 always

Press New Entries to Create Vendor Master Excise Details


40/119




Maintaining SSI Rates:


Select SSI Rates and Press

Select the SSI Rates


41/119




Note: This is need not to do, its one time activity.


Press New Entries to Create Vendor Master Excise Details


42/119




o Excise Indicator for Plants

Select Excise Indicator for Plant and Press

Select the Excise Indicator for Plant


43/119





Press New Entries to Create Plant Excise Details


44/119




Maintaining Tax conditions Records

Transaction code: FV11

Purpose: To capture taxes in Purchase order for excise duty & Sales taxes

Warning:

Pl. Dont use Vendor Key combination for any of Tax condition records

Enter Tax conditions. For Eg.JMOP- Excise duty

JMX1-Setoff on Exciseduty paid

Combination for Tax

records


45/119




Then click Save Icon, to save conditions records


Plant Code

Vendor code

Enter material code

Enter Excise duty of material


46/119




Tax conditions for Inward Materials(For CENVAT Credit)

Conditions Description of Tax Conditions Example

JSVD IN: Service tax debit Service tax for Cenvat 10

JEC3 IN: ECS ST setoff % Ecess on Service Tax for cenvat 2

JSV2 IN: Serv.tax InputNVV Service tax for Non-Cenvat

JEC4 IN: ECS ST Invent. % Ecess on Service Tax for Non-Cenvat

JMOP IN: BED setoff % Basic Excise duty of Material -Percentage basis 16%

JMOQ IN: BED setoff Qty Basic Excise duty of Material -Quantity basis Rs.0.46/Nos

JAOP IN: AED setoff % Addit ional Excise duty of Material -Percentage basis

JAOQ IN: AED setoff Qty Additional Excise duty of Material -Quantity basis

JSOP IN: SED setoff % Special Excise duty of Material -Percentage basis

JSOQ IN: SED setoff Qty Special Excise duty of Material -Quantity basisJMX1 IN: A/P BED setoff Credit on BED paid in % 100%

JEC1 IN: ECESS Setoff % Ecess 2%

JEX1 IN: A/P ECS setoff Credit on Ecess paid in % 100%

JIPC IN C Sales tax inv. Central Sales Tax 4%

JVRD A/P VAT RM Deductible VAT for Raw Materials with VAT credit 12.50%

JVRN A/P VAT RM Non-Deduct VAT for Raw Materials without VAT credit

JVCD A/P VAT CG Deductible VAT for Capital Materials with VAT credit 12.50%

JVCN A/P VAT CG Non Deduct VAT for Capital Materials without VAT credit

JIPL IN L Sales tax inv. Local Sales Tax 8%

Note: Each Excise Condition Has to be Maintained for Combination of Plant/Vendor/ Material

Service Taxes shall be maintained for Plant / Vendor combination


47/119




This is required for Haridwar Plant

Tax conditions for Inward Materials(Without CENVAT Credit)

Conditions Description of Tax Conditions Example

JSV2 IN: Serv.tax InputNVV Service tax for Non-Cenvat

JEC4 IN: ECS ST Invent. % Ecess on Service Tax f or Non-Cenvat

JMIP IN: BED inventory % Basic Excise duty of Material -Percentage basis 16%

JMIQ IN: BED inventory Qt Basic Excise duty of Material -Quantity basis Rs.0.46/Nos

JAIP IN AED inventory % Additional Excise duty of Material -Percentage basis

JAIQ IN AED inventory Qty Additional Excise duty of Material -Quantity basis

JSIP IN SED inventory % Special Excise duty of Material -Percentage basis

JSIQ IN SED inventory Qty Special Excise duty of Material -Quantity basis

JMX2 IN: A/P BED inventor Credit on BED paid in % 100%

JAX2 IN: A/P AED inventor Credit on BED paid in %

JSX2 IN: A/P SED inventor Credit on BED paid in %

JEC2 IN: ECESS Inv setoff% Ecess 2%

JEX2 IN: A/P ECS inventory Credit on Ecess paid in % 100%

JIPC IN C Sales tax inv. Central Sales Tax 4%

JVRD A/P VAT RM Deduct ible VAT for Raw Materials with VAT credit 12.50%

JVRN A/P VAT RM Non-Deduct VAT for Raw Materials without VAT credit

JVCD A/P VAT CG Deduct ible VAT for Capital Materials with VAT credit 12.50%

JVCN A/P VAT CG Non Deduct VAT for Capital Materials without VAT credit

JIPL IN L Sales tax inv. Local Sales Tax 8%

Note: Each Excise Condition Has to be Maintained for Combination of Plant/Vendor/ Material

Service Taxes shall be maintained for Plant / Vendor combination


48/119




1.1 Request for Quotation (RFQ)

UseRequest for Quotation is used to float enquiries in market to obtain quotations from prospective vendors.

This transaction is optional for the process.

Procedure

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

SAP R/3 menu LogisticsMaterial ManagementPurchasingRFQ/quotationRequest for Quotation Create

Transaction code ME41

2. On the Create RFQ: Initial Screen, make the following entries:


49/119




Field name Description R/O/C User action and values CommentRFQ Type Default is AN -

standard RFQR Enter RFQ type

RFQ Date Default is creation date R May be changed if required The RFQ can becreated for future

issuance. Note

that SAP willrelease it on that

date without

notification.

Quotation

Deadline

The due date for vendor

quotations

R Enter the due date in the date

format assigned in the system

If the deadline is

stated as a date

after the required

delivery date, theuser will be given

an error message

when the deliverydate is entered.

RFQ Externally numbered

RFQ numbers

C If allowed, user can assign

RFQ number. Note: each

vendors RFQ is assigned a

separate number.

Not

recommended.

Collective

number of

subsequent screen

is an effectivemeans to capture

and track RFQs.

PurchasingOrg.

Purchasing Organizationresponsible for RFQ

R Enter or select PurchasingOrg. from table

GOPO

Purchasinggroup

Buyer or Buying groupIdentifier

R Enter or select Purchasinggroup number from table

Item Category Key defining how the

procurement of amaterial or service itemis controlled.

R Leave it blank for this scenario

Delivery Date Date on which the goods

are to be delivered or the

service is to beperformed.

O Enter delivery date

Plant Key for a productionfacility or branch officewithin the company (that

is, company code).

O Enter Plant or select fromtable

Storage

Location

Number of the storage

location where the

material is stored. A

O Enter Storage Location or

select from table.


50/119




plant may contain one or

more storage locations.

Material

Group

Key that you use to

group together several

materials or services

with the same attributes,

and to assign them to a

particular material

group.

O Enter material group or use

match code

Defaulted from

material master

record

Requirement

Trackingnumber

Number that facilitates

monitoring of theprocurement process for

required materials or

services. This number

can relate to an external

"need note" (notice ofrequirements) that was

not generated in the

system.

O Enter requirement tracking

number

Press Enter to go to the next screen.


51/119




3. On screen Create RFQ: Item Overview, enter information in the fields as specified in the table


52/119




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

Item Number that uniquelyidentifies an item within

the RFQ

R Defaults - Line items aredefined by the system inincrements of 10.

No User Action

I Item Category -

determines if standard

purchase or other such

as Sub-Contracting

Order, etc.

R Enter or select from table.

Default is

blank - standard purchase

No User Action

Material Material Number R Enter material number

100PG1All stock material

must have materialnumbers

Short Text Short Description ofMaterial

N/A Defaulted in from materialmaster

RFQ Quantity Quantity of Material

requested for quotation

R Must be numeric

10

C Category of delivery

date (indicates whether

the date format is day,week or month)

R Select from the drop-down

list

Delivery Date Date required if ordered R Must be in correct date

format

Material

Group

Group of material

which this material

belongs

N/A Defaulted in from material

master

Plant Plant where material is

required

O Enter or select Plant from

table.

Note: the material master

must exist for that plant.

Sloc Storage Location where

material will

be delivered and storedif ordered

O Enter Storage Location or

select from table

Strictly optional.

Storage Location

may be enteredlater at the time ofP.O. creation


53/119




4. Choose (header details icon) on the toolbar, then on screen Create RFQ: Header Data, enter

information in the fields as specified in the table below:


54/119





RFQ RFQ number R System will display saved

document number unless

externally assigned

Grayed out

Company

code

Company code R Defaulted by the system Grayed out

Purchasinggroup

Purchasing group R Supplied from initial screen Grayed out

RFQ type RFQ type R Supplied from initial screen Grayed out

Purch. Org Purchase organization R Supplied from initial screen Grayed outVendor Vendor number C Will be displayed if vendor

number was added before this

step.

Grayed out

RFQ date RFQ date R Supplied from initial screen Grayed out

Item interval Item interval R Supplied by system

Coll. No. Collective number O Enter a number to track

vendors of the same RFQ

Language Language R Supplied from initial screen

Qout. Dead. Quotation deadline R Supplied from initial screen

Validity start Validity start O Enter date quotation will start

Validity end Validity end O Enter date quotation will end.

Applic. By Application date O Enter closing date of Bids

Warranty Warranty O Enter warranty information

Bindg. Per. Binding period O Enter date period is binding

Target val Target Value O Enter total value of all

materials that can be released.

Your

reference

Your reference O Enter Vendors reference

number/name

Salesperson Salesperson O Enter Salesperson name

Our reference Our reference O Enter your reference

number/name

Telephone Telephone O Enter telephone #


55/119




5. Choose (vendor address button) on the toolbar, then on screen Create RFQ: Vendor Address, enter

information in the fields as specified in the table below:


56/119


57/119




6. Press to Save the RFQ. This will refresh the Create RFQ: Vendor Address screen to allow creation

of the same RFQ data to a new vendor by following the steps outlined above.

Result

The system will display the message RFQ Created under the number.

ExampleRFQ created under the number600000005


58/119




1.2 Message output: RFQ

UseA RFQ needs to be printed for transmitting to vendor.This transaction is optional for the process.

Procedure


SAP R/3 menu LogisticsMaterials ManagementPurchasingRFQ/QuotationRequest for QuotationMessagesPrint/Transmit

Transaction code ME9A

2. On theMessage Outputscreen, make the following entries:


59/119





Purch. Doc.

Data

Document

Number

RFQ # O Choose from drop down

menu

60000000##

Vendor Vendor # O Choose from drop down

menuPurchasing

Organization

Purchasing Organization

#

O Choose from drop down

menu

1000

Purchasing

Group

Purchasing Group # O Choose from drop down

menu

PG1

Document

Type

Identifier allowing

differentiation between

the various kinds of

purchasing document inthe SAP system


menu

AN

Document

Date

Date on which the

purchasing documentwas created.

O Enter Document date or

choose from drop down menu

Message Data

Application Subdivides the usage of

a condition for the use in

different application

areas

R EA defaults for RFQ

Message type Specifies the kind of

output


menu

NEU

Transmission

time-spot

You can process the

message immediately or

at a later time. If

processing later youmust use report programRSNASST00


menu

Processing

status

Indicates the status-

1 indicates the processwas successful.

2 indicates an error

C Default is 0


60/119




0 indicates the process

has not yet started

Creation date Date the message is

create

O Enter date or choose the drop

down menu

Time created Displays the time the

message was created

C Defaults to time started

3. Choose toExecute.

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

Choose Output Message and/or

ChooseDisplay Message and/or

ChooseMessage Detailand/or

Choose Trial Printout

Select the Check Box corresponding to the Document No.


61/119




1.3 Maintaining Quotation

UseThis transaction is used to maintain the quotation, which is submitted by vendors. Vendor communicates price

for material and as a result the RFQ (Request for Quotation) needs to be updated.


Procedure


SAP R/3 menu LogisticsMaterials ManagementPurchasingRFQ/quotation QuotationMaintain


2. On theMaintain Quotation: Initial Screen, make the following entries:


62/119


63/119




5. Enter information in the fields as specified in the table below. Some fields will not be available for input,

as they are reference fields only.

1. Press to select the line item

2. Press to enter the conditions


64/119


65/119




entered in the purchasing

document is fixed.

Exchange Rate

Fix

Indicator: if you fix the

exchange rate, the PO

currency and exchange

rate cannot be changed

during Invoice

Verification.

O Check to fix exchange rate if

appropriate.

Incoterms Commonly-used trading

terms that comply withthe standards established

by the International

Chamber of Commerce

(ICC).

O Enter appropriate value if

necessary.

Match code (F4)

search help can beused to locate the

appropriate value.

Target Value Total value of all

materials to be releasedagainst the contract.

O Enter appropriate value if

necessary.

If the value

entered isexceeded, the user

will receive a

system message

when creating a

contract release

order.

ReferenceData:

Quotation

Date

Date quotation submitted O Enter date if desired.

Quotation Number of vendorsquotation

O Enter number if desired.

Your reference Your reference O Enter Vendors reference

number/name

Salesperson Salesperson O Enter Salesperson name

Our reference Our reference O Enter your reference

number/name

Telephone Telephone O Enter telephone #


66/119




6. Once all necessary header data has been maintained, the user can then enter the price information in one of

two fashions:

a. Enter the price in theNet Price field on theMaintain Quotation: Item Overview screen by

Choosing overview icon on toolbar.b. To enter more detailed information in addition to the net price, select the line item and

choose the Item Details icon. Choose the green Back arrow to return to the Overview

screen once data has been maintained.

i. A vendors quoted price can be entered in one of two ways.

Enter the Conditions iven b vendor.


67/119




ii. Enter the net price per unit in the Net price field. This price includes the vendor's

normal discounts and surcharges only. Cash discounts (for prompt payment) and

taxes are calculated separately.

iii. Enter the gross price in the Net price field, and maintain the conditions for the item.

Then the system automatically replaces the entered gross price with the calculated

net price. If the net price for an item is entered for which pricing conditions havebeen maintained, the system always replaces the price entered with the calculated

net price.

iv. Enter the Tax Code for any relevant taxes (for example, Excise Duty, Sales Taxes

etc.) in the Tax code field. If a purchase order is created by referencing an RFQ, this

code facilitates the determination of the tax amount when the invoice is entered in

the system.

v. After entering tax code, after choosing this system may give an information

message showing the effective price, Choose Enter to continue.

7. Once all quotation information has been successfully entered, save the data by Choosing on the Save

button, or Choose the keys. A message will be displayed that the data has been saved.

ResultQuotation is maintained.

ExampleQuotation for RFQ 600000009 maintained.


68/119




1.4 Price Comparison

UseRequired to compare prices from all quotations received as a result of a competitive bidding process.


Procedure


SAP R/3 menu LogisticsMaterials ManagementPurchasingRFQ/Quotation QuotationPrice Comparison


2. On thePrice Comparison Listscreen, make the following entries:


69/119





Purch Org. Organization unit thatnegotiates the general

conditions of purchase

for several plants or a

single plant

R Enter Purchasing OrgGOPO / GIPO

Quotation Purchasing document

number

R Choose either quotation or

collective RFQ number in

combination with Purchasing

Org

Coll.RFQ Call for bid number or

bid invitation number

R Choose either quotation or

collective RFQ number in

combination with Purchasing

Org

Number which

you might have

maintained in

RFQ

Vendor Vendor Number O Enter vendor number if

Parameters included for Comparison

Enter the Purchasin Or anization

Enter the Quotations to be compared


70/119




applicable

Material Material Number O Enter material # if applicable

Maximum # of

Quotations perpage

Shows the maximum

amount of quotationsthat are displayed next to

each other.

R Defaults to 12, change if necessary.

a. Choose the comparison values to be used:

i. Reference quotation: You can compare the quotations within the list with a samplequotation. The system displays the percentage deviation between each quotation in the

list and the sample quotation.

ii. Mean/minimum value quotation: The price comparison list can also display a "fictitious"

quotation reflecting the average or minimum value of all quotations. Select either the

"Mean value" or "Minimum value" quotation field to choose the type of fictitious

quotation.iii. Percentage basis: The price comparison list displays the percentage of each item in

relation to the maximum, minimum, or average price. To determine the display type,

enter one of the following:

+: The highest value for each item is the 100% value

-: The lowest value for each item is the 100% value

_: The mean value for each item is the 100% value

b. Select the desired price computations:

i. Select the appropriate field to determine which of the following should be included in

the determination of the comparison price:

i. Include cash discounts

ii. Include delivery costsiii. Determine effective price

3. Once all entries have been made, Choose the Execute.

4. On screen Price Comparison List in Currency INR, view the Price Comparison list.


71/119




5. To view any of the following information for a particular quote included in the comparison, Choose the

RFQ number with the mouse to select it, then Choose the appropriate icon/button on the menu toolbar:

6. Display Material: Allows the user to view the purchasing data in the material master record.

7. Display Vendor: Allows the user to view the vendor master record.

8. Additional Info: Allows the user to view payment terms, bid dates, currency information for all the

vendor quotations in the list.

9. If any information has been modified through the comparison list, save the RFQ before exiting. If changeshave been made and the user attempts to exit without saving, the system will return a message to verify

action.

10. To exit the transaction, choose the green Back arrow, the yellow Exit arrow, or Choose the F3 button.

ResultPrice Comparison List in Currency INR is displayed on the screen.

Rank is

generated

Mean and

Effective Price is


72/119




1.7 Creating Purchase Requisition

UseA Purchase Requisition is created to indicate purchase department to procure materials or services with details

like how much quantity is required, when required. In this process Purchase Requisition is created against

Quantity Contract created in above step 1.1.4 with exact delivery / requirement date.


Procedure1. Access the transaction choosing one of the following navigation options:

SAP R/3 menu LogisticsMaterials ManagementPurchasingPurchaseRequisition Create

Transaction code ME51N

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

Enter Material No. Enter required

Quantity

Enter required

Plant


73/119





Shopping cartsymbol

Document Type R System defaults in StandardPurchase Reqisition. Use

pull down to change if

necessary

Purchase

requisition

Number that uniquely

identifies a requisition

O Leave blank. Number

assigned by system.

Source

determi-

nation

Flag that determines

whether automatic

sourcing of materials

from a vendor is to beused

O

Item Overview Icon

Item Serialized item numbers R Leave blank, systemdefaulted.

Accountassignment

key specifying whetheraccounting for an item is

to be effected via an

auxiliary Account

O Leave blank for

this process

Item Category Denotes specific featuresof an item (example -

material is consignment)

O

Material Name or number that

uniquely identifies a

material

R Enter material code

100PG10

Short Text Description of Material O Required for materials with no

material master

Defaulted from

material master

Quantity Quantity requisitioned R Enter number of unitsrequired

100

Unit Unit of measure in which

the requested material isto be ordered

R Defaults from material master

C Category of deliverydate (indicates whether

the date format is day,

week or month)

R Select from the drop-downlist

Defaulted by the

system

Delivery date Date on which the goodsare to be delivered. If

R Enter the date on which

material is required


74/119


75/119




3. To assign the source of supply ChooseItem Details icon or Choose Control + F4 and select Source ofsupply tab on it.

4. Here ChooseAssign source of supply on this tab and system will automatically assign source to this

purchase requisition.

5. Choose to Save or Choose Control + S.

ResultPurchase Requisition with reference to contract is created,

Example

Purchase requisition number1000000##created.


76/119


77/119




2. If you want create purchase order with reference to the purchase requisition, on item details screen enterthe purchase requisition number and item number atPurch. Req. field. System will automatically adopt

all the data from requisition.

Click the

Purchasing

Requisitionsand Press Adopt


78/119


79/119




Group

Company

Code

Company code for

purchase

R Enter if not defaulted in from

purchasing org or group

1000 / 2000

SelectDelivery / Invoice tab on Header data.

Payment

Terms

Payment Terms of

Vendor

O 0001 This field is

important to getbase line date in

Invoice

Verification.

Item Overview Item Overview

Item number Item number withindocument

R Will default by system

Acct.

assignmentcategory

Account where costs are

allocatedFor a consumablematerial. For a stockmaterial it is not required

C Leave blank

Item category Type of purchase C Leave blank

Material Material number R 1000001 External

numbering is

used.

Short text Text from the material

master record

R Default from master record

PO Quantity Required units / quantity R 10

Unit of

measure

Unit that good or service

is purchased

R Enter unit of measure Defaulted from

material master

Category ofdelivery date

Indicates whether thedelivery date is to be

entered and displayed as

a calendar day, week or

month.

R default

Delivery Date Date material is required R Enter delivery date

Net Price Vendor selling price for

good or service

R Enter price

Currency Currency used for plant R Defaulted from vendor master

Per Price per unit R Default

Order unit The unit of measure for

which material is

purchased

R Default

Material group Grouping together of

materials by

characteristics

R Enter material group Defaulted from

material master

Plant Facility where goods or

services are produced orsold.

R Enter plant or select from the

table


80/119




Storage

Location

Location where stock is

stored

R Enter storage location or select

from the table

Required for stock

item

tracking

number

Number that facilitates

monitoring of the

procurement of required

materials

O Enter if known Can be used in

List display to list

all POs created

by a certain buyer.

Potential entry is

employee number.

Requisitioner To whom material or

service is ordered

O

Info Record Purchasing information

record informal priceagreement that may be

updated with each

purchase

O Default if goods was purchase

from vendor previously or inforecord created by system

Purchase req Reference documentnumber

C Input the purchasingrequisities number which

generated above

Use tool barbutton to

reference other

purchasing

documents

Requisn. Item Purchase requisition item

no

C 10

Outline

Agreement

Reference document

number

C Enter contract number if you

want create Release Order.

Use tool bar

button to

reference other

purchasing

documents

Agreement

Item

Item number C Enter contract line item

number for Release Order

Item number

within purchasingdocument

Item Details Item Details

Select Invoicetab

Tax code Enter Tax code R V8

Since the procurement is for1000 Mfg. Plant, which is located in Bangalore, Karnataka State and the Vendoris located in Hyderabad, Andhra Pradesh. This transaction attracts Central Sales Tax (CST) because this is

inter state transaction. That is the reason it is advised to create condition record for central sales tax.

GR-based IV Goods receipt based

invoice verification

O Tick this check box

4. The Purchase Order may be posted by Choosing on the Save button or Choose Control + S for saving.

ResultA message will be displayed stating that the purchase order was saved, with the purchase order number,


81/119


82/119





Purch. Doc.

Data

DocumentNumber

Purchase Order # O Choose from drop downmenu

4500000270

Vendor Vendor # O Choose from drop downmenu

Purchasing

Organization

Purchasing Organization

#


menuGOPO / GIPO

PurchasingGroup

Purchasing Group # O Choose from drop downmenu

Document

Type

Identifier allowing

differentiation betweenthe various kinds of

purchasing document in

the SAP system


menu

Document

Date

Date on which the

purchasing document

was created.

O Enter Document date or

choose from drop down menu

Message Data

Application Subdivides the usage ofa condition for the use in

different application

areas

R EF defaults for PurchaseOrder

Message type Specifies the kind of

output


menu

NEU

Transmission

time-spot

You can process the

message immediately or

at a later time. Ifprocessing later you

must use report program

RSNASST00


menu

Processingstatus

Indicates the status-1 indicates the process

was successful.

2 indicates an error0 indicates the process

has not yet started

C Default is 0

Creation date Date the message is O Enter date or choose the drop


83/119




create down menu

Time created Displays the time the

message was created

C Defaults to time started

3. Choose toExecute.

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

Choose Output M essage

Then go to Spool request, to take print out.


84/119




1.10 Goods Receipt for Purchase Order

UseGoods are received from the Vendor as a result of a Purchase Order at the receiving plant. A goods movement

is entered into the system referencing this PO and a goods receipt material document is posted. Appropriate

general ledger accounts are also posted and stocks are updated.

Prerequisites

Purchase Order

Procedure


SAP R/3 menu LogisticsMaterials Management Inventory ManagementGoods Movement Goods Receipt For Purchase Order PO

Number Known

Transaction code MIGO

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

Check this tick, to take print out


85/119


86/119




Delivery Note in Header O Delivery Number from

VendorVendor Vendor R Defaulted from purchase order 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

Close Header Detail data to enlarge the Detail data.

SelectMaterial tab at Detailed Data.

Material Material tab R Defaulted from PurchaseOrder

Grayed out

Select Quantity tab in Detail data.

Qty in unit ofentry

Quantity in unit of entry R Enter the quantity you havereceived from vendor. As a

default system will give

purchase order quantity

Quantity defaultedfrom Purchase

Order

Qty in deliverynote

Quantity in delivery note 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 material

master or purchase order

Plant Plant R Defaulted from purchase order

1000

Storagelocation

Storage location R Defaulted from purchase order

if enteredRM01

GoodsRecipient

Goods Recipient O Enter the name of person whoreceived goods

Unloading

point

Unloading point O

Text Text O Enter the text if required

SelectPurchase Ordertab in Detail data.

PurchaseOrder

Purchase Order R Defaulted from header data Grayed out

Del. completed Delivery completion O Defaulted by system if PO Qty


87/119




ind. indicator = GR Qty

SelectPartnertab 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.

SelectBatch 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.

Batch Batch number R Enter batch number as date for

batch managed materials

Vendor batch Vendor batch O Enter vendor batch number for

reference

3. Select the Check boxItem OK, after entering all the data.

You will getExcise Invoice tab at Header Data for capturing vendor excise invoice details and for

posting Part I and Part II.

4. On theExcise Invoice tab at Header Data make the following entries.


Capture &Post Excise

invoice

Capture & Post ExciseInvoice on Excise Action

R Choose Capture & PostExcise Invoice from drop

down list

Defaulted

Excise Group Excise Group R Defaulted by the system

Excise Invoice Excise invoice R Enter the vendor ExciseInvoice number

For example:

APG1

Excise Inv.Date

Excise Invoice Date R Enter the excise invoice dateof vendor

BED Basic Excise Duty R Defaulted from purchase order Grayed out

AED Additional Excise Duty R Defaulted form purchase order Grayed out


88/119


89/119




1.13 Logistics Invoice Verification

UseIn 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. The system updatesthe data saved in the invoice documents in Materials Management and Financial Accounting.

Procedure


SAP R/3 menu LogisticsMaterials Management Logistics invoice Verification

Document Entry

Enter InvoiceTransaction code MIRO

2. If you are opening for the first time this transaction, system will ask forCompany Code,please give 1000 /

2000 to go in side the transaction.

3. On theEnter Incoming Invoice: Company Code 1000 / 2000 screen, make the following entries:


90/119





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 tab togive initial information

Invoice Date Invoice Date R Enter the Vendor invoice date

Reference Invoice reference O Enter the vendor invoicereference

For ExampleASTRA01

Posting date Posting Date R Enter the posting date ofdocument

System will givecurrent date as

default

Amount Invoice Amount R Enter invoice gross amount Amount


91/119


92/119




Layout Layout of invoice

verification

R Select All information from

drop down listChoose Enter

4. ChooseEnterto complete the document feeding part.

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

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

color.

6. If you want to see the accounting postings in simulation mode, Choose Simulation on middle of fourth row

of your screen.

8. Choose Saveposting the document.


93/119


94/119


95/119


96/119


97/119




externally maintained by you

or system will allocate batch

number

Vendor batch Vendor batch O Enter vendor batch number for

reference

4. Select the Check boxItem OK, after entering all the data.

To getExcise Invoice tab at Header Data Choose Checkpush button at third row at the top of thescreen.

5. On theExcise Invoice tab at Header Data make the following entries.

Choose No excise entry


98/119




6. Choose Checkat the top of screen.

7. ChoosePostto post the document.

ResultMaterial document posted

ExampleMaterial document 5000000422 posted

1.15 Excise Invoice Other Movements

UseIf the material returned to vendor is subject to Excise Duty, it is the legal requirement to in India to send the

same with Excise Invoice.

Procedure


SAP CIN R/3

User menu

Indirect taxes Sales / Outbound Movements Excise Invoice For

Other Movements Excise Invoice for Other Movements

Transaction code J1IS

2. On theExcise Invoice Other Movements

Main Menu screen, make the following entries:

3. Choose Create Excise Invoice icon to start the transaction


99/119





Reference

Ref.doc.type Reference Document Type R Enter MATDfor this process

Doc Number Document Number R Enter the return delivery documentnumber which you have created in

above step

5000000422

Doc Year Document year R Enter the year of document created

Example: 2005

Series Group Enter the Excise Series

Group

R Enter J1 for this transaction

Excise Group Excise Group R Enter P1for this transaction

Enter

System will get vendor code as a default, please check is it corrects vendor code or not.


100/119


101/119


102/119


103/119




5. To take printout, select Goto from the top main menu and selectPrint Documentfrom the list. Or ChooseControl + P to get the access ofExcise Invoice Printingscreen.

6. Choose Execute icon to get list of excise invoice ready to be printed.

Choose excise

invoice Number


104/119


105/119


106/119




1.17 Credit Memo

UseIn this process of Logistics Invoice Verification a credit memo is generated on vendor. Please be careful that

during the total process after making logistics invoice verification you have made return delivery to vendor.To recover that money you need to do this credit memo transaction.

Prerequisites

Logistic Invoice Verification is already made

Procedure


SAP R/3 menu LogisticsMaterials Management Logistics invoice VerificationDocument Entry Enter Invoice

Transaction code MIRO

2. If you are opening for the first time this transaction, system will ask forCompany Code,please give 1000 /

2000 to go in side the transaction.

3. On theEnter Incoming Invoice: Company Code 1000 screen, make the following entries:


107/119





108/119


109/119




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

Purchase order /

Schedule Agreement

R Select Purchase order /

Schedule Agreement in the

reference document category

from drop down list

Defaulted for user

Purchase order number R Enter the purchase ordernumber

Goods / service items R Select Goods / Service itemsin indicator from drop down

list

Defaulted

Layout Layout of invoiceverification

R Select All information fromdrop down list

Choose Enter

4. ChooseEnterto complete the document feeding part.

5. To check the document credit and debit is balanced on the top right corner of your screen a traffic light is

displayed. Beside thatBalance of the document is displayed.

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

color.


110/119




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

7. Choose Saveposting the document.

ResultLogistics Invoice verification document is posted.

ExampleDocument no. 5105600055 created


111/119


112/119




6.Enter Material Code you want to transfer and quantity also.

7.Enter Receiving storage Location8.Enter Recipient name

Then enter..

9.Finally click save icon.

Result:Material is transferred from ERM SL to MRM SL

Note: In case of material transfer from one SL to another SL with

reference, procedure is like this.

1. Enter transaction Code MB1B2. PUT Movement type 311(Optional), then choose Reservation in Tool Bar3. New pop up will appear, enter reservation number of material then choose

Adopt+Details4. System will defaults all details of a reservation items

5. Check the items & then enter receiving Storage location

6. Then enter & Save


113/119


114/119




3.Then choose from list

4.Select Reservation line item (s) then clickAdopt

5.System will copy all values of selected Reservation(s)

6.Then Click , then will copy


115/119


116/119




Creation of Reservation (Manually)Transaction code- MR21

In initial Screen enter details1. Enter transaction code MR21

2. Enter Movement type- 201(For Goods Issue Request & Reservation)3. Enter Plant For E.g. 1000

Then Press Enter

5.Enter the relevant cost center, this vary based on dept. For E.G. 1201- for Purchasing

6..Enter material code you want do reservation and quantity7.Recipient name


117/119




7.Press enter and Save

8.Result ofNote: if you want to create Reservation w.r.t. Reservation, put reservation in initial screen

itself and system will default all details of reference as shown below.


118/119


119/119



It is necessary that stock type should be in same form of GR when material document

Documents

Proc. of Stock Materials-Revised-2