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Unit 12
Materials Management(MM)- Transactions -
MELJUN
CORTES
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Business Process Integration
MM
Transactions
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Transaction Data
Includes internal and externalexchanges that describe businessactivities
Unlike master data, aggregatetransactional data is dynamic eachtransaction is unique
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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)
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Procurement Process(Procure-to-Pay)
PurchaseRequisition
Paymentto Vendor
NotifyVendor
VendorShipment
InvoiceReceipt
GoodsReceipt
PurchaseOrder
3-
WayMatch
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Basic Procurement Process
Requirements Determination -Purchase Requisition
Vendor Selection Order Processing - Purchase Order
Order Tracking
Goods Receipt and InventoryManagement
Invoice Verification
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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
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Purchase Requisitions
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
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Purchase Requisitions
Processing Create purchase requisition(manually or automatically)
Determine source of supply Release procedure (optional)
Assign vendor and process
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Purchase Requisitions
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
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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
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Purchase Order Structure
Header Header - information specific to theentire purchase order
Vendor
Currency
Payment terms
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Purchase Order StructureLine Items
Line item details
Account assignment
Delivery schedule Materials or services quantity
Price
Description
Item category
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Purchase Order
Request for Quotations
Purchase Order
Order Acknowledgment
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Purchase Order Output
Format Printed and mailed E-mail
Electronic Data Interchange (EDI) Faxed (hardcopy or electronic)
eXtensible Markup Language (XML)
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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
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Goods Receipt (continued)
You can search for the purchaseorder number with
Material number, vendor number, etc.
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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
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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
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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
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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
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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)
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Goods Receipt Effects
(continued) Material and financial documentscreated and/or updated
Stock and consumption accountsupdated
Inspection notification in Quality
Management (QM) - if active
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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
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Invoice Payment
Selects invoices for payment basedon the payment terms in the vendormaster or purchase order
Generates payment for releasedinvoices
Updates accounting information
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3-Way Match for Payment
PurchaseOrder
GoodsReceipt
InvoiceReceipt
Debit Credit
PaymentProgram
Verification
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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
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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
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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
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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
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(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
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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
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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