Unit 12 Materials Management Transactions

7/30/2019 Unit 12 Materials Management Transactions

1/33

Unit 12

Materials Management(MM)- Transactions -

MELJUN

CORTES


2/33

January 2008 SAP AG - University 2

Business Process Integration

MM

Transactions


3/33


Transaction Data

Includes internal and externalexchanges that describe businessactivities

Unlike master data, aggregatetransactional data is dynamic eachtransaction is unique


4/33


R/3

FIFinancialAccounting

COControlling

PSProjectSystemWF

WorkflowISIndustry

Solutions

MMMaterialsMgmt.

HRHuman

Resources

SDSales andDistribution

PPProductionPlanning

QMQualityMgmt.

PMPlant Maintenance

SMServiceMgmt.

Client / ServerIntegrated BusinessSolution

ECEnterpriseControlling

AMFixed AssetsMgmt.

Materials Management (MM)


5/33


Procurement Process(Procure-to-Pay)

PurchaseRequisition

Paymentto Vendor

NotifyVendor

VendorShipment

InvoiceReceipt

GoodsReceipt

PurchaseOrder

3-

WayMatch


6/33


Basic Procurement Process

Requirements Determination -Purchase Requisition

Vendor Selection Order Processing - Purchase Order

Order Tracking

Goods Receipt and InventoryManagement

Invoice Verification


7/33


Purchase Requisitions

Internal document

Requesting a certain quantity of

material or service on a certain date Can be created:

Manually

Automatically (Materials RequirementsPlanning (MRP), sales orders, etc.)

Release approval procedures are

optional


8/33



Sources Manually created by user department Office supplies

Projects

Prototype materials

Automatically created by

Planning (Material RequirementsPlanning (MRP), Master ProductionSchedule (MPS))

Plant Maintenance

Production Orders


9/33



Processing Create purchase requisition(manually or automatically)

Determine source of supply Release procedure (optional)

Assign vendor and process


10/33



Creating Default data for line items Delivery dates, plants, purchasing

groups, etc.

Maintain line item data Materials, quantities, delivery dates, etc.

Maintain account assignment (if

required) Cost center, General Ledger accounts,

project number, etc.

Check data


11/33


Purchase Orders

Purchase Orders are: A formal request to a vendor to provide

materials or services

An internal planning and tracking tool Purchase Orders identify:

Vendor

Material and/or service Quantity and price

Delivery dates

Terms of payment


12/33


Purchase Order Structure

Header Header - information specific to theentire purchase order

Vendor

Currency

Payment terms


13/33


Purchase Order StructureLine Items

Line item details

Account assignment

Delivery schedule Materials or services quantity

Price

Description

Item category


14/33


Purchase Order

Request for Quotations

Purchase Order

Order Acknowledgment


15/33


Purchase Order Output

Format Printed and mailed E-mail

Electronic Data Interchange (EDI) Faxed (hardcopy or electronic)

eXtensible Markup Language (XML)


16/33


Goods Receipt

Goods receipt with reference to apurchase order

Copy data from purchase order

Delivery notification

Invoice verification

Updates purchase order history Inventory update

Automatic update of General Ledger

(G/L) accounts


17/33


Goods Receipt (continued)

You can search for the purchaseorder number with

Material number, vendor number, etc.


18/33


Goods Receipt

Destinations Stock - given a storage location, canbe posted to three different stockstatuses Unrestricted-use Quality inspection

Blocked stock (valuated)

Consumption - can be assigned arecipient or unloading point

Goods receipt for blocked stock -

updates inventory, but material is


19/33


Goods Receipt Movement

Types Movement types - stock transactions Goods receipt

Goods issue Stock transfer

Movement type determines which

Quantity fields are updated

Stock types are updated

General Ledger (G/L) stock orconsum tion accounts are u dated


20/33


Goods Receipt Movement

Types (continued) 101 - goods receipt for purchaseorder into warehouse/stores

102 - reversal of goods receipt forpurchase order intowarehouse/stores

122 - return delivery to vendor 501 - receipt w/o purchase order into

unrestricted-use stock


21/33


Goods Receipt Account

Postings Inventory account is debited atstandard price

Goods Receipt/Inventory Receipt(GR/IR) clearing account is creditedat purchase order price

Price difference account is debited(credited) with difference betweenstandard price and purchase orderprice


22/33


Goods Receipt Effects

Purchase Order (PO) history andPurchase Order (PO) updated

Material Master - stock and valueupdated

Notification of goods receipt issued

(optional) Transfer request to Warehouse

Management system (if active)


23/33


Goods Receipt Effects

(continued) Material and financial documentscreated and/or updated

Stock and consumption accountsupdated

Inspection notification in Quality

Management (QM) - if active


24/33


Invoice Verification

Matches the vendors invoice to thepurchase order and the goodsreceipt (3rd part of 3-way match)

Matches price and quantity

Updates the purchase order and its

history Updates accounting information


25/33


Invoice Payment

Selects invoices for payment basedon the payment terms in the vendormaster or purchase order

Generates payment for releasedinvoices

Updates accounting information


26/33


3-Way Match for Payment

PurchaseOrder

GoodsReceipt

InvoiceReceipt

Debit Credit

PaymentProgram

Verification


27/33


Accounts Payable

Settlement Process Determines: Open items to be paid

When they will be paid Bank from which payment will be made

Payment medium

Who will get paid

Payment process creates a financialaccounting document to record the

transaction

G d R i t / I i


28/33


Goods Receipt/ InvoiceReceipt

Reconciliation AccountPurchase requisition

Purchase orderMaterials Management

(MM) and FinancialAccounting (FI)via automatic accountassignment

Goods receipt

No impact onFinancial Accounting (FI)

Dr Cr

Inventory

$100

Dr Cr

GR / IR

$100

Goods Receipt / Invoice Receipt


29/33


Goods Receipt / Invoice ReceiptReconciliation Account

Amount owed isassigned and transferredtovendor account payable

Invoice receipt

Dr Cr

Vendor A/P

$100

Dr Cr

GR / IR

$100


30/33


Vendor Payment

Amount owed is paid tovendor and accountpayable is reduced

Bank

Dr Cr

Vendor A/P

$100

Dr Cr

Bank

$100

(FI MM) I t ti


31/33


(FI MM) IntegrationPoints

InvoiceReceipt

PaymentProgram

GoodsReceipt

AP(Vendor)DrCr

GR / IR

$100

Bank

DrCr

Inventory

$100 $100

$100

DrCr

DrCr

$100

$100

A t ti A t


32/33


Automatic AccountAssignment

Debit posting$100

BSX - inventoryposting totrading goods

inventoryaccount201XXX

Credit posting$100

WRX goodsreceipt posting toGR/IR account

310XXX

U it 12 E i


33/33

January 2008 SAP AG University 33

Unit 12 Exercises

100. Create Purchase Order for Slick Pens

101. Create Purchase Order for Premier Pens

102. Create Purchase Order for Promotions,Ltd.

103. Create Goods Receipts for PurchaseOrders

104. Create Invoice Receipts from Vendors

105. Post Payment to Vendors

106. Display Vendor Line Items

Documents

Unit 12 Materials Management Transactions