LO020 Processes in Procurement 4.6C.pdf

LO020 Processes in Procurement 4.6C mySAP Product Lifecycle Management

Date Training Center Instructors Education Website

Instructor Handbook

Course Version: 2001 Q4 Course Duration: 5 Day(s) Material Number: 50040958 Owner: Michael Schmidt (D027146)

An SAP Compass course - use it to learn, reference it for work

Copyright Copyright © 2003 SAP AG. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.

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SAP, SAP Logo, R/2, RIVA, R/3, SAP ArchiveLink, SAP Business Workflow, WebFlow, SAP EarlyWatch, BAPI, SAPPHIRE, Management Cockpit, mySAP.com Logo and mySAP.com are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other products mentioned are trademarks or registered trademarks of their respective companies.

Disclaimer THESE MATERIALS ARE PROVIDED BY SAP ON AN "AS IS" BASIS, AND SAP EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES, EXPRESS OR APPLIED, INCLUDING WITHOUT LIMITATION WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, WITH RESPECT TO THESE MATERIALS AND THE SERVICE, INFORMATION, TEXT, GRAPHICS, LINKS, OR ANY OTHER MATERIALS AND PRODUCTS CONTAINED HEREIN. IN NO EVENT SHALL SAP BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES OF ANY KIND WHATSOEVER, INCLUDING WITHOUT LIMITATION LOST REVENUES OR LOST PROFITS, WHICH MAY RESULT FROM THE USE OF THESE MATERIALS OR INCLUDED SOFTWARE COMPONENTS.

About This Handbook This handbook is intended to complement the instructor-led presentation of this course, and serve as a source of reference. It is not suitable for self-study.

Typographic Conventions American English is the standard used in this handbook. The following typographic conventions are also used. Type Style

Description

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Words or characters that appear on the screen. These include field names, screen titles, pushbuttons as well as menu names, paths, and options. Also used for cross-references to other documentation both internal (in this documentation) and external (in other locations, such as SAPNet).

November 2001

Example text

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© 2003 SAP AG. All rights reserved.

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About This Handbook

LO020

Icons in Body Text The following icons are used in this handbook. Icon

Meaning For more information, tips, or background Note or further explanation of previous point Exception or caution Procedures

Indicates that the item is displayed in the instructor’s presentation.

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Contents Course Overview ......................................................... vii Course Goals ...........................................................vii Course Objectives ..................................................... ix

Unit 1: Navigation.......................................................... 1 Navigation................................................................3

Unit 2: Basics of the Procurement Process ....................... 37 Organizational Elements ............................................. 39 Purchase Order Basics............................................... 56 Goods Receipts Basics .............................................. 85 Invoice Verification Basics ..........................................108

Unit 3: Master Data ..................................................... 137 Material Master Records ............................................139 Vendor Master Records .............................................187

Unit 4: Procurement of Stock Material ............................. 223 Requests for Quotation (RFQ) .....................................225 Purchasing Information Records...................................261 Purchase Orders for Stock Material ...............................291 Stocks, Valuation, and Goods Receipt ............................305 Invoice Verification for Stock Materials............................338

Unit 5: Procurement of Consumable Material .................... 361 Purchase Requisitions ..............................................363 The Procurement Process for Consumable Materials ..........393 Blanket Purchase Orders ...........................................417

Unit 6: Procurement of External Services......................... 447 The Procurement Process and Master Data in External Services ...........................................................449

Unit 7: Automated Procurement..................................... 485 Automated Procurement, Master Data and Contracts ..........487 Material Requirements Planning and Generation of Purchase Orders .............................................................517 Shipping Notification and Goods Receipt.........................541 Evaluated Receipt Settlement (ERS)..............................551

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Contents

LO020

Unit 8: Reporting in Materials Management ...................... 571 Transaction-Based Reporting ......................................573 Reporting with Logistics Information System.....................582

Unit 9: mySAP.com Implementation ................................ 611 mySAP.com Implementation........................................612

Unit 10: Supplemental Materials .................................... 635 Business Process Review ..........................................636

Appendix 1: Frequently-used Menu Paths

..................... 655

Glossary................................................................... 661 Index ....................................................................... 685

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Course Overview This course is designed to prepare the participant to perform the basic functions of the procurement process in the R/3 System. Stock material and consumable material processing are used as examples. One unit addresses the procurement of external services. The specific areas addressed are material and vendor masters, the creation of various purchasing documents, examination of the financial and valuation effect of basic procurement transactions, and reporting on transactions that have been executed.

Target Audience This course is intended for the following audiences: • •

Project managers Project teams

Course Prerequisites Required Knowledge • • •

Basic procurement knowledge and experience Good working knowledge of Windows operating environment (SAP01) SAP Overview

Course Duration Details Unit 1: Navigation Navigation Exercise 1: Exercise 2: Exercise 3: Exercise 4: List

Logging On to SAP Systems Navigating Menus Personalizing the System Creating Web Site Links in the Favorites

Minutes

Unit 2: Basics of the Procurement Process Organizational Elements Purchase Order Basics Exercise 5: Purchase Order Basics Goods Receipts Basics Exercise 6: Goods Receipts Basics Invoice Verification Basics

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30 Minutes Minutes Minutes Minutes


45 Minutes 1.5 Hours Minutes 60 Minutes Minutes 45 Minutes

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Course Overview

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Exercise 7: Invoice Verification Basics Unit 3: Master Data Material Master Records Exercise 8: Create Material Master Vendor Master Records Exercise 9: Create Vendor Master Record Unit 4: Procurement of Stock Material Requests for Quotation (RFQ) Exercise 10: Request for Quotation (RFQ) Purchasing Information Records Exercise 11: Purchasing Information Records Purchase Orders for Stock Material Exercise 12: Purchase Orders for Stock Material Stocks, Valuation, and Goods Receipt Exercise 13: Posting Goods Receipts into Quality Inspection Invoice Verification for Stock Materials Exercise 14: Invoice Verification for Stock Materials Unit 5: Procurement of Consumable Material Purchase Requisitions Exercise 15: Purchase Requisitions The Procurement Process for Consumable Materials Exercise 16: Purchase Order with Reference to Purchase Requisition Exercise 17: Goods Receipt Exercise 18: Invoice Verification Blanket Purchase Orders Exercise 19: Blanket Purchase Orders Unit 6: Procurement of External Services The Procurement Process and Master Data in External Services Exercise 20: External Services Purchase Order and Service Entry Sheets Unit 7: Automated Procurement Automated Procurement, Master Data and Contracts Exercise 21: Master Data and Contracts Material Requirements Planning and Generation of Purchase Orders Exercise 22: Single-Item Planning and Automatic Generation of Purchase Orders Shipping Notification and Goods Receipt

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Minutes 2 Hours Minutes 60 Minutes Minutes 60 Minutes Minutes 2.5 Hours Minutes 60 Minutes Minutes 60 Minutes Minutes 30 Minutes Minutes 1.5 Hours Minutes 60 Minutes Minutes Minutes Minutes 60 Minutes Minutes

2 Hours Minutes

1.5 Hours Minutes 60 Minutes Minutes 45 Minutes

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LO020

Course Overview

Exercise 23: Shipping Notification and Goods Receipt Evaluated Receipt Settlement (ERS) Exercise 24: Evaluated Receipt Settlement Unit 8: Reporting in Materials Management Transaction-Based Reporting Exercise 25: Transaction-based Reporting Reporting with Logistics Information System Exercise 26: Reporting with Logistics Information System

Minutes 30 Minutes Minutes 45 Minutes Minutes 60 Minutes Minutes

Unit 9: mySAP.com Implementation mySAP.com Implementation Exercise 27: Creating a New Plant Exercise 28: Assigning a Plant to a Company Code

20 Minutes Minutes Minutes

Unit 10: Supplemental Materials Business Process Review Exercise 29: Business Processes

Minutes Minutes

Course Goals This course will prepare you to: • •

Understand the purpose and function of procurement processes Use the basic procurement process functionality of the SAP System

Course Objectives After completing this course, you will be able to: • • • • • • • • •

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Identify and use the log on, navigation, personalization, and help features of the SAP System Define the basic steps of the procurement process Create, display and maintain material and vendor masters, and list the required organizational levels Create, display and maintain purchase requisitions, requests for quotation, contracts, and purchase orders Process goods receipts and basic receipt-related stock transfers Explain the financial and valuation effect of basic procurement transactions Display stock balances Post vendor invoices Generate purchasing list displays and basic LIS standard analyses


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Course Overview

• •

LO020

Explain the SAP methodology of support for the SAP product life cycle Identify where additional procurement information can be found in documentation and subsequent training

SAP Software Component Information The information in this course pertains to the following SAP Software Components and releases:

Contacts In Walldorf: Michael Schmidt, Global Owner; Corina Duerholt, EME In North America: Kelley Webb-Lamour, NA Owner; Mark Tarallo, EPM Revisions to Previous Instructor Guide This Instructor Guide is an amended and updated version of the 4.6B Instructor Guide to accommodate changes as of R/3 4.6C. The major change is that the Arbortext Epic Editor has been used to integrate the instructor guide with the student manuals. The Instructor Notes are dispersed throughout the instructor’s manual, but they are not printed in the student’s manual. Some slides have been removed from the lessons, and some have been changed to a different place in the presentation. Screen captures and procedures are now printed in the student manuals. At the end of each lesson, in addition to the exercises, there are sample discussion questions with answers in the appendix section of the manual. Exercises and solutions are placed at the end of each appropriate lesson. (We now use the term lesson instead of topic.) Course Details Duration: This course is designed to last 5 days. What’s new in LO020 Arbortext (Compass) version

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LO020

Course Overview

The new Arbortext version of LO020 includes these new features for the Instructor: • • • • • • •

Course Duration Details An “About this Handbook” section defining icons and course contents Table of Contents with page numbers. · Instructor “Hints” to guide the instructor during demos and lecture Instructor “Notes” designed to address possible “pit-falls” during class A name and an e-mail address of the SAP employee who designed the each Lesson Lesson Duration times

The new Arbortext version of LO020 changed: • • • • • •

•

November 2001

The course is no longer held in a SAPShow format. It is pulled from the Web The old PowerPoint slide to introduce the class is not included in the Web version Overall concepts are no longer introduced in each unit, instead logical ideas are grouped together as lessons and introduced separately A Course Content slide; this is now a “Table of Contents” with page numbers to reference each Unit Units are broken in to logical topics called “Lessons” Each Lesson include its own set of Prerequisites, Objectives, Overview, and Business Example. · Business Scenarios are now called “Business Examples” but no slide is included in the presentation of the class, so instructors should encourage students to read the examples or read the examples together as a group as each lesson begins. Student handbook pages will not match Instructor handbook pages do to the added contents in the Instructor’s guide


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Course Overview

LO020

The new Arbortext version of LO020 added: • • • • • • • • • •

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Screen prints of application transaction from R/3· Generic procedures detailing and including icon reference for each application transactions An Index for reference A Glossary “Test Your Knowledge” questions with detailed answers design to challenge the theoretical understanding of the student Solutions following each exercise showing menu paths and icon details An Appendix of frequently-used Material Management Menu Paths A Unit of Supplemental Materials A “related information” area in each lesson· More reference text per topic for student reference


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LO020

Course Overview

Summary of changes by unit: • •

•

•

•

•

•

•

• •

Old LO020 Chapter 1 class introduction– this chapter is gone The new LO020 begins with: Unit 1 - Navigation: This unit is a little different Unit 2 - Basic of the Procurement Process: This is chapter 3 in the old version of LO020. The only major change to this Unit is the Unit breaks the Procurement Cycle (purchase order, goods receipt, and logistic invoice verification) and the Organization Elements into separate lessons. The slides have been re-arranged to facilitate the separation of ideas. Unit 3 - Master Data: This is chapter 4 in the old version of LO020. The old chapter in LO020 used to introduce both the Material Master and the Vendor Master together. The new Unit introduces two separate lessons, Material Master and Vendor Master. The slides have been re-arranged to facilitate the separation of ideas Unit 4 – Procurement of Stock Material: This is chapter 5 in the old version of LO020. RFQ, Information records, creation of purchase orders with reference, goods receipt, and logistics invoice verification are all introduced as separate lessons Unit 5- Procurement of Consumable Material: This is chapter 6 in the old version of LO020. Creation of purchase requisitions and the following handling of purchase requisitions are divided into two separate lessons. The blanket order concept is moved to the end of the unit and introduced as a separate concept/lesson. The slides have been re-arranged to facilitate the separation of ideas Unit 6- Procurement of External Services: This is chapter 7 in the old version of LO020. The purchase order history slide was moved to fall after the service specifications slide. Unit 7- Automatic Procurement: This is chapter 8 in the old version of LO020. Master data requirements, creation of contracts, and creation of source list have been pulled together to create one lesson. MRP and creation of purchase orders is now grouped into one lesson. Shipping notice and good receipt is one lesson. ERS is it’s own lesson. The slides have been re-arranged to facilitate the separation of ideas Unit 8- Reporting in Materials Management: This unit defines the standard reports within its own lesson called Transaction-Based Reporting. The LIS reports are broken into their own lesson. The exercise is broken into two parts so the student works on standard reports in one exercise and LIS report in another exercise. Unit 9- mySAP.com- This unit is different. It includes an exercise. Unit 10- Supplemental Materials- This unit is completely new. It includes an exercise designed to address all of the concepts learned from the other units

Other comments:

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Course Overview

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Although the basic contents of LO020 did not change, it is important to note the teaching style of the course did change. Instructors should spend time introducing the contents of the book. Explain the book was designed to be a reference tool. Point out the new features: the screen prints, the glossary, the index, and the generic application processes. Course Materials and other Materials • • •

SAP System, including the link to online documentation installed on every participant’s PC Overhead slides Participant handbook

Course Instructor Profiles; Level of Knowledge Required The instructor should have a good knowledge of the procurement process, particularly purchasing, inventory management, and invoice verification. Knowledge of Financial Accounting is beneficial. The instructor should also have a basic knowledge of Customizing for Materials Management. Courses Recommended as Preparation • • • • •

LO510 Inventory Management LO515 Invoice Verification LO520 Optimization of the Purchasing Process LO540 Procurement of External Services LO550 Cross-application Customizing in MM

Online Help Recommended as Preparation Read the online help on MM Purchasing, MM Inventory Management, MM Invoice Verification and Material Valuation, and MM Logistics Invoice Verification, as well as MM External Services. Hints on Preparing This Course • • • • • • •

Attend the course first. Make notes on your copy of the participant handbook. Carefully read the instructor notes for each slide. Carry out and practice all the exercises in the system. Detailed solutions are available, with the menu paths. Practice your entire presentation. Practice all demonstrations. If possible, co-teach your first time with a seasoned instructor.

Training System

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LO020

Course Overview

The demonstrations and exercises for LO020 run on a weekly copy of the IDES system, ID3. It will be your responsibility to look up the specific system that is assigned to your class. To find your assignment, log on to your SAP Web page and go to Temself via the tab Aliases.

Figure Training Online Registration

After clicking on the word instructor, you should get the Temself display of your courses and system assignments.

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Course Overview

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Figure Common Training Information Lounge

Caution: If you do any setup work in your assigned system during the week before your scheduled class, it will be gone after the weekly Friday night refresh. Data Required Materials and vendors from IDES are used for the exercises and SAP System demonstrations. The participants create most of the data during the course. The remaining data has been created in ID3, client 400.

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Fields

Data in Training System

Company Code

1000

Vendors

1000, T-K12A##, T-K12C##, T-K12D##

Purchasing Organization

1000

Purchasing Groups

T## (01–30)

Plants

1000, 1200

Storage Location

0001

Materials

T-RM1##, T-RM3##, T-HM1##

Info Records

Vendor T-K12A##, Material T-RM1##


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LO020

Course Overview

Since there is rarely the need to assign more than 16 logons to a class, recommend that the instructor use data that ends in 20 wherever you see the ## group indicator. User ID and Passwords for Course Participants The standard format for User IDs is the course ID, followed by the group number. Use transaction ZUSR to copy these User IDs from the reference User ID LO020-99. Please consider and instruct the participants accordingly. The standard procedure is: • • • • •

Copy from: LO020-99 Course name: LO020 Number of exercise groups: 20 Initial password: INIT Country of training location:

Preparation in the System In the training system, rename the following organizational units if you wish: Company code 1000 “IDES AG 1000”: Change description to IDES using transaction OX02. Purchasing organization 1000 “IDES Deutschland”: Change description to IDES using transaction OX08. Hint: For training purposes the transaction ME21N was included in activity group SAP-MM-BUYER. The descriptions are available in German and English only. Example ABAPs If required, run ABAP program ZDEBLAN with transaction SE38 in the training system. This program changes the language in vendor masters from German to any other valid IDES language (currently English, French, Spanish, Portuguese, and Japanese). If you work with a language other than German, make sure that your material master records have their descriptions translated to your vendors’ language, otherwise you will run into errors when creating purchase orders. CATTs

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Course Overview

LO020

There are CATTs for compiling the data, which have already been processed in ID3, 400 (and therefore do not have to be started again before the start of the course). The CATTs created for course LO020 include: • • • • •

ZT_LO020_01 Master Data ZT_LO020_02 Transaction Data ZT_LO020_03 Master Data ZTR_LO020_01 Translation CATT Groups: 01 – 20

Master Data (## = Group number): • • •

Materials: T-RM1## (Reference material T-RM2) T-RM3## (Reference material 400-141) T-HM1## (Reference material LB-1000)

Vendors: • • •

T-K12A## (Reference vendor: 1000) T-K12C## (Reference vendor: 1000) T-K12D## (Reference vendor: 1000)

Info Records: •

Vendor T-K12A##, Material T-RM1##

You should not have to run these prior to class. However, should it be necessary to teach the course at a customer site with a customer IDES, you may have to check if the above data is there or usable. Plan time for doing this beforehand. The following CATTs might have to be executed: • • • • •

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ZT_LO020_01 Master Data ZT_LO020_02 Transaction Data ZT_LO020_03 Master Data ZTR_LO020_01 Translation Groups 00-20


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LO020

Course Overview

Course Schedule Hint: The course schedule is approximate. But these tables are here if you plan to teach the entire course and need some guidelines for timing. The breaks indicated in these tables might not come right at the end of a lesson as implied. You have to make some judgments about when the students need a break. Also, some units may take longer than you expect. Remember, you have more time on Friday if you feel you’re getting behind. Day One Approximate Duration

Content: Units and Lessons

Activities: Instructor and Participant

30 min.

Starting the course

Instructor and participants introduce themselves, Instructor asks participants what are their goals in attending this course, etc.

• • 30 minutes

Introduction Training center logistics

Unit – Navigation

Instructor: Slide presentation, System demos Participants: 4 exercises Together: Assessments

15 minutes

Break

45 minutes

Unit – Basics of the Procurement Process

Instructor: Slide presentation, System demos

Lesson- Organizational Elements 1.5 hours

1 hour

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Instructor: Slide presentation System demo

Lesson – Purchase Order Basics

Participants: One Exercise

Lunch Break

(Usually staggered, so the lunch hour will vary)

Together: Assessments


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Course Overview

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Approximate Duration



1 hour


Instructor Slide presentation, System demo

Lesson – Goods Receipt Participants: One Exercise Basics Together: Assessments 25 minutes


Instructor Slide presentation System demo

Lesson – Invoice Verification Basics 15 minutes

Break

20 minutes

Unit – Basics of the Procurement Process Lesson – Invoice Verification Basics

Participants: One Exercise Together: Assessments

6 hours 30 Total time – day one, minutes including breaks Additional notes: Breaks can be combined with exercises. Try to have breaks after a maximum of 1 hour 20 minutes. Day Two Approximate Duration



2 hours

Unit – Master Data

Instructor: Slide presentation, System demo

Lesson – Material Master Records


15 minutes

Break

1 hour

Unit – Master Data


Lesson – Vendor Master Records Participants: Exercise


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Course Overview



1 hour

Lunch Break

1 hour

Unit – Procurement of Stock Material


Lesson – Requests for Quotation (RFQ)




15 minutes

Break

2.5 hours



Lesson – Purchasing Information Records


8 hours


Total time – day two, including breaks

Additional notes: Breaks can be combined with exercises. Try to have breaks after a max. of 1 hour 20 minutes. Day Three Approximate Duration



1 hour


Instructor: Slide presentation

Lesson –Purchase Orders for Stock Material


15 minutes Break 1 hour

Unit – Procurement of Stock Material Lesson — Stocks, Valuation, and Goods Receipt

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Instructor: System demo Participants: One Exercise Together: Assessments


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Course Overview

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30 minutes Unit – Procurement of Stock Material Lesson – Invoice Verification for Stock Materials 1 hour

Lunch Break

1.5 hours

Unit – Procurement of Consumable Material Lesson – Purchase Requisitions

Activities: Instructor and Participant Instructor Slide presentation System demo Participants: One Exercise Together: Assessments

Instructor: Slide presentation, System demo Participants: One Exercise Together: Assessments

15 minute

Break

1 hour

Unit – Procurement of Consumable Material Lesson – The Procurement Process for Consumable Materials

1 hour

Unit – Procurement of Consumable Material Lesson – Blanket Purchase Orders

Instructor: Slide presentation, System demo Participants: Three Exercises Together: Assessments Instructor: Slide presentation, System demo Participants: One Exercise Together: Assessments

7 hours 30 minutes

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Total time – day three, including breaks


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Course Overview

Day Four Approximate Duration


2 hours

Unit – Procurement of External Services Lesson — The Procurement Process and Master Data in External Services

15 min

Break

2 hours

Unit – Automated Procurement Lesson - Automated Procurement, Master Data and Contracts

1 hour

Lunch Break

1 hour

Unit – Automated Procurement Lesson- Material Requirements Planning and Generation of Purchase Orders

Activities: Instructor and Participant Instructor: Slide presentation, System demo Participants: One Exercise Together: Assessments



15 minutes Break

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30 minutes Unit – Automated Procurement Lesson — Shipping Notification and Goods Receipt 30 minutes Unit- Automated Procurement Lesson — Evaluated Receipt Settlement (ERS) 7 hours 30 minutes

Activities: Instructor and Participant Instructor: Slide presentation, System demo Participants: One Exercise Together: Assessments Instructor: Slide presentation, System demo Participants: One Exercise Together: Assessments

Total time – day four, including breaks

Day Five Approximate Duration


1 hour

Unit – Reporting in Materials Management Lesson - Transactionbased Reporting

Activities: Instructor and


1 hour

Unit – Reporting in Material Management Lesson - Reporting with the Logistics Information System


15 minutes Break

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Course Overview



20 minutes mySAP Implementation Lesson - mySAP Implementation

Activities: Instructor and

Instructor: Slide presentation, System demo Participants: Two Exercises Together: Assessments

optional

Lunch break if anyone stays

2 hours 35 minutes

Total time – day five, including breaks

Note that sometimes the course will go over the estimated times, and lunch break must be considered on Friday.

Additional notes: Breaks can be combined with exercises. Try to have breaks after a maximum of 1 hour 20 minutes. Inform the students that you will be going through all the basic steps of the procurement process more than once. The first PO, GR, and Invoice will be very simple and basic in order for the students to get a feel for the process. After that, there will be added complexity and knowledge as the course progresses.

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Course Overview

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LO020


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Unit 1 Navigation

1

For many students, this is the first SAP class they have taken. For some it is even their first exposure to the SAP system. This unit is important for them so that they will feel comfortable doing the subsequent units. Try to be aware of anyone who is struggling with this, as your presentation of the unit will be their first impression of the class, and of SAP in general.

Unit Overview The Navigation unit is designed to help the participant feel comfortable with the windows of the SAP system, navigation in the SAP system, and individualizing the SAP system using personal settings.

Unit Objectives After completing this unit, you will be able to: • • •

Log on to the SAP system Navigate a basic path and personalize an SAP system Search for information and obtain help using the different help methods in the SAP system

Unit Contents Lesson: Navigation ................................................................3 Demonstration: Logging on to the SAP System...........................5 Demonstration: Navigation: Accessing Transactions.....................6 Demonstration: Creating Favorites........................................ 10 Demonstration: Role-Based User Menus ................................ 11 Demonstration: Creating a New Session................................. 13 Demonstration: System-Level Help Options ............................. 16 Demonstration: Field-Level Help Options ................................ 18 Exercise 1: Logging On to SAP Systems ................................ 19 Exercise 2: Navigating Menus ............................................. 23 Exercise 3: Personalizing the System .................................... 27

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1

Unit 1: Navigation

LO020

Exercise 4: Creating Web Site Links in the Favorites List ............. 29

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LO020

Lesson: 2

Lesson: Navigation

Navigation Lesson Duration: 30 Minutes

Lesson Overview This lesson explains and demonstrates how to log on to the SAP system, and allows you to become familiar with the layout and navigation of the system. It also discusses some of the options available for personalizing the system based on your requirements or preferences. Lastly, it introduces the various types of online help available in the SAP system and develops an understanding of how to search for information.

Lesson Objectives After completing this lesson, you will be able to: • • •

Log on to the SAP system Navigate a basic path and personalize an SAP system Search for information and obtain help using the different help methods in the SAP system

The Navigation unit will be the first exposure to a SAP System for many, if not all, of the participants. Therefore, the main focus of this lesson is to explain how to log on and navigate within the system. You should consider this one of the main objectives of this course; therefore, ensure that participants are comfortable with the overall layout and navigation before moving on. You should also discuss how to limit the complete range of services provided by SAP to those specifically required by the user.

Business Example You are a new user. In order to efficiently use the SAP system, you need to familiarize yourself with the screens and navigation in the SAP system. You also need to define your own personal settings based on your own individual business requirements.

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Unit 1: Navigation

LO020

Logon Process This section explains the logon process and prepares participants to log on to the system. Establish that the SAP system is a client system. Define the client within the SAP system as a separate entity with its own master data, configuration, transactions, and databases. Note: Users can have up to six sessions open at a time, but caution participants about leaving documents open and blocking out other users’ access. Before you log on for the first time, your system administrator will give you an initial password. During the logon process, you should create a new password, one that you alone will know. After that, use your own password whenever you log on. (These procedures may differ somewhat at your company. For more information, contact your system administrator.)

Figure 1: Logging in to a SAP System

The SAP logon icon now appears in both the task bar (together with the SAP Release number) and the system tray (that is, the bottom right-hand corner of your desktop). When you select the tab key after you have entered data in a field, the cursor moves to the beginning of the next field. However, if you enter the maximum number of characters possible in a field, you do not have to

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LO020

Lesson: Navigation

press the tab key. For example, the maximum number of characters you can enter in the Client field is three. If you enter 001 in the Client field, the cursor automatically moves to the beginning of the next field. If there are system-wide messages, the System Messages dialog box appears. After you have read the messages, choose Continue (or choose Enter) to close the dialog box.

Demonstration: Logging on to the SAP System Purpose Demonstrate and guide the participants through logging on to a SAP system.

System Data System: R/3 Standard Training System required Client: 400–404 User ID: training Password: monthly instructor password Set up instructions: This demo will run on any standard SAP R/3 training system. 1. Demo the Exercise Logging on to SAP Systems Refer to the Solution Logging on to SAP Systems for the required steps and data.

Layout, Navigation, and Personalization In this section, you will familiarize the participants with the navigation of the SAP system and the options available for personalizing the system to the participants’ requirements or preferences. Explain that the SAP Easy Access screen is the system default screen after logging on. This default can be changed to any desired start transaction using Extras → Set start transaction. Explain navigation in SAP using the SAP standard menu, the menu bar, and the command field (transaction codes). Point out that transaction codes can be found by selecting System → status. Menus allow you to find a specific transaction when you do not know the transaction code. The menu is organized according to the task you are performing in the SAP System.

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5

Unit 1: Navigation

LO020

The menus are drop down; therefore, when you choose a menu item, further options appear. Sometimes not all of the available menus fit on one line in the menu bar. In this case, they wrap to the next line. The dropdown principle stays the same.

Figure 2: General Screen Layout

Demonstration: Navigation: Accessing Transactions Purpose Demonstrate how to navigate the SAP standard menu and explain the principles of the screen structure. Assume the role of an accounts receivable accountant and display a Customer master record using the SAP standard menu.

System Data System: R/3 Standard Training System required Client: 400–404 User ID: training Password: monthly instructor password Set up instructions: This demo will run on any standard SAP R/ 3 training system. 1. Access a Customer Master Record by selecting: Accounting →Financial accounting → Accounts receivable → Master records → Display

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LO020

Lesson: Navigation

2.

Enter Customer: 1000

3.

Enter Company Code: 1000

4.

Select

5.

Explain the layout of the screen structure

Continue or Enter

System Function – User Profile You can use the menu option System → User profile → Own data to set your own personal profile. You can choose between the Address, Default and Parameters tabs.

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Figure 3: Maintaining a User Profile

•

• •

Address: You can create and maintain personal data here, for example, name, function, room number, telephone number, e-mail addresses, and so on. Defaults: Defaults include the date display format, the decimal notation format, the default printer, the log on language, and so on. Parameters: Use this to assign entries to commonly used fields. This is only available for input fields that have been allocated a parameter ID. Procedure for finding out a field’s parameter ID: – –

Go to the input field to which you want to assign a value. Choose F1 and then the Technical Info button. This opens a window that displays the corresponding parameter ID (if one has been allocated to the field) in the Field data section.

The User Profile menu also contains, among others, the following options: Hold data, Set data and Delete data. Use Hold data to keep data values that you have entered in fields in an application for the duration of a user session. When you call up the application again, you can overwrite these values. Once you have Set data, you can no longer overwrite these values and have to use Delete data if you want to enter different values.

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November 2001

LO020

Lesson: Navigation

Demonstrate some Default settings, especially the decimal notation and date format. Participants will be asked to do this in the exercise.

Navigation Tree Discuss the option of creating and maintaining personal favorites (frequently used transactions, files, and Web addresses) using the Favorites menu. Explain that these are items you wish to access in one step versus having to navigate through a menu path. In SAP Easy Access, you can create a favorites list containing: • • •

Transactions Files Web addresses

Figure 4: Navigation Tree

November 2001


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Unit 1: Navigation

LO020

Demonstration: Creating Favorites Purpose Demonstrate to the participants how to create a Favorites menu.

System Data System: R/3 Standard Training System required Client: 400–404 User ID: training Password: monthly instructor password Set up instructions: This demo will run on any standard SAP R/ 3 training system. 1. Demo the exercise Create Favorites Using the Menu Bar and Create Website Links in the Favorites List. Refer to the exercises and solutions, Create Favorites Using the Menu Bar and Create Website Links in the Favorites List, for the required steps and data.

Role-Based Menus Explain that role-based menus allow for limiting the wide range of functionality provided by SAP to the user’s own requirements – corresponding to the user’s role. Point out that when a user is assigned a role, they are assigned not only the menu, but also the authorizations they require to access the information. Point out that users can be assigned to multiple roles. Note: Favorites can still be maintained with role-based menus. Note: Mention that SAP currently delivers over 1200 predefined roles. Roles or user menus are collections of activities used in business scenarios. Users access the transactions, reports, or Web-based applications through user menus. Users can change aspects of assigned roles, for example, by creating their own favorites list.

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Lesson: Navigation

When assigned a role, users are assigned not only the menu, but also the authorizations they require to access the information, ensuring that the business data is always secure. Authorization profiles are generated according to the activities contained in the role, thus restricting the authorizations of each user in the SAP system to only those activities. In the mySAP.com Workplace, the user uses a Web browser to view and execute the required tasks and activities. Roles can be assigned here as well. The system administrator can tailor the user menu to the personal requirements of each user by adding or deleting menu entries.

Figure 5: Role-Based Menus

Demonstration: Role-Based User Menus Purpose Demonstrate how to access and use the role-based user menus.

System Data System: Client: User ID: Password: Set up instructions: training system.

November 2001

R/3 Standard Training System required 400–404 training monthly instructor password This demo will run on any standard SAP R/ 3


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Unit 1: Navigation

LO020

1.

From the SAP Easy Access menu, select Other menu.

2.

Use the Find function and search for Activity group name *accounts receivable*.

3.

Select the Accounts Receivables Accountant activity group.

4.

Display the Customer Master record again using the role-based menu: Account Master Data → Display Customer. Emphasize the simpler navigation and quicker access of the role-based menu.

5.

Demonstrate how to return to the SAP standard menu by selecting SAP standard menu.

Multiple Sessions Note: Users can have up to six sessions open at a time, but this can impact system resources so the system administrator can limit the number of sessions per user. Also, caution the participants about leaving documents open and blocking out other users’ access. You can create a session at any time and you do not lose any data in sessions that are already open. You can create up to six sessions. Each session is independent of the others. For example, closing the first session does not cause the other sessions to close. Too many open sessions can result in slower system performance. For this reason, your system administrator may limit the number of sessions you can create to fewer than six. You can move between sessions as often as you like without losing any data. As long as you remain logged on to the SAP System, you can leave a session open for as long as you like. Moving to a different session is like putting a telephone call on hold: You can resume the call whenever you are ready.

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Lesson: Navigation

Figure 6: Multiple Sessions

To move between sessions, click any part of the window that contains the session you want to use (or use the keys ALT + TAB). The window you choose becomes the active window by moving in front of all the other windows on your screen. If you have several sessions open, you can minimize the sessions you are not using. When you need to use one of these sessions later, you can restore it by selecting the appropriate symbol in the status bar, making it the active session. By minimizing the sessions you are not using, you can significantly reduce the system load. After you are done using a session, it is a good idea to end it. Each session uses system resources that can affect how fast the SAP System responds to your requests. Before you end a session, save any data you want to keep. When you end a session, the system does NOT prompt you to save your data.

Demonstration: Creating a New Session Purpose Demonstrate how to create multiple sessions once the user has initially logged on.

System Data System:

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R/3 Standard Training System required


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Unit 1: Navigation

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Client: 400–404 User ID: training Password: monthly instructor password Set up instructions: This demo will run on any standard SAP R/ 3 training system. 1. Create multiple sessions using the Standard toolbar by selecting the Creates a new session icon on the Standard toolbar 2.

Create multiple sessions using the menu path System → Create Session

3.

Create multiple sessions using the transaction box and typing /o

Status Bar The status bar provides general information on the SAP system and the transaction or task on which you are working. At the left of the status bar, system messages are displayed. The right end of the status bar contains three fields: one with server information, the other two with status information.

Figure 7: Status Bar

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LO020

Lesson: Navigation

Discuss and demonstrate the location of the different types of information available on the status bar. Explain the difference between the following types of system messages: informational, warning, and error. • •

• •

Left end of status bar: Error and other system messages are displayed here. First status field: – System – Client – User – Program – Transaction – Response time Second status field: This field tells you what server you are connected to. Third status field: This field displays the data entry mode. Choose this field to switch between Insert (INS) and Overwrite (OVR) modes. Note: To hide the status fields, choose to their left; to display them, choose to their right.

Help Features This section introduces the participants to the various types of online help available in SAP. You will distinguish between system-level help (Application Help, SAP Library, Glossary) and field-level help (F1, F4). Point out that the Help menu is available on the menu bar of every screen. The R/3 System provides comprehensive online help. You can display the help from any screen in the system. You can always request help using the Help menu or using the relevant icon. The Help menu contains the following options: Application help Displays comprehensive help for the current application. Selecting this menu option in the initial screen displays help on getting started with R/3. SAP Library All online documentation can be found here.

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Glossary Allows a search for definitions of terms. Release notes Describe functional changes that occur between R/3 releases. SAPNet Enables you to log on to SAPNet. Feedback Enables you to send a message to the SAPNet R/3 front-end, SAP’s service system. Settings Enables you to select settings for help.

Figure 8: Getting Help

Demonstration: System-Level Help Options Purpose Demonstrate the various system-level help options.

System Data System:

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R/3 Standard Training System required


November 2001

LO020

Lesson: Navigation

Client: 400–404 User ID: training Password: monthly instructor password Set up instructions: This demo will run on any standard SAP R/ 3 training system. 1. Access the Help menu and demonstrate each of the various types of help available.

Use F1 for help on fields, menus, functions and messages. F1 help also provides technical information on the relevant field including, for example, the parameter ID, which you can use to assign values to the field for your user. Use F4 for information on what values you can enter. You can also access F4 help for a selected field using the button immediately to the right of that field. If input fields are marked with a small icon with a checkmark, then you can continue in that application only by entering a permitted value. You can flag many fields in an application to make them either required entry fields or optional entry fields. You can also hide fields using transaction or screen variants or Customizing.

Figure 9: Field Help – Using F1 and F4

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Unit 1: Navigation

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Demonstration: Field-Level Help Options Purpose Demonstrate the field-level help options available (F1 and F4).

System Data System: R/3 Standard Training System required Client: 400–404 User ID: training Password: monthly instructor password Set up instructions: This demo will run on any standard SAP R/ 3 training system. 1. Access the Customer Master Display transaction by selecting: Accounting → Financial Accounting → Accounts Receivable → Master records → Display 2.

Place the cursor on the Customer field and select F1 Note: F1 provides information about the field.

3.

Choose Technical info. Note the technical information available for that particular field.

4.

Place the cursor on the Company code field, choose F4, and choose Start search. Demonstrate the use of the F4 help option. Note: F4 provides a list of field values or an option to search for the information in the case of an extensive list.

5.

Place the cursor on the Customer field and select F4. Select the tab, Customers (by company code). Enter Company code 1000 and Name Start search. Becker 20. Choose Demonstrate the use of the search functionality.

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13

Lesson: Navigation

Exercise 1: Logging On to SAP Systems Exercise Duration: Minutes

Exercise Objectives After completing this exercise, you will be able to: • Understand the basics of creating a log on entry • Log on to a SAP System

Business Example As an employee of a company that manages its business with SAP, you need to gain access to an SAP system to do your daily business transactions.

System Data System: Client: User ID: Password:

For Future Use. For Future Use. For Future Use. For Future Use.

Do not modify this line. Do not modify this line. Do not modify this line. Do not modify this line.

CATT: [If a CATT is required, enter the CATT name. Delete this tag if not used.] Set up instructions: 1.

[Enter all instructions necessary for the maintenance of this exercise.]

Task: In this exercise, you will first create a logon entry to identify which system you would like to gain access to. You will then access that system with the appropriate client, user ID and password. Note: In the classroom, the logon entry may have already been created for you. Your instructor can tell you whether or not you need to do Step 1. 1.

Create an entry in the SAP GUI logon screen based upon the information provided by the instructor. Field

Information

Description

LO020 Class

Client Continued on next page

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Field

Information

Application Server SAP Router String System Number 2.

You have now created a logon entry. You will use this entry to gain access to the SAP system you have identified with the information provided. Field

Information

User

Password

Client

Language

EN

New Password

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LO020

Lesson: Navigation

Solution 1: Logging On to SAP Systems Task: In this exercise, you will first create a logon entry to identify which system you would like to gain access to. You will then access that system with the appropriate client, user ID and password. Note: In the classroom, the logon entry may have already been created for you. Your instructor can tell you whether or not you need to do Step 1. 1.

Create an entry in the SAP GUI logon screen based upon the information provided by the instructor. Field

Information

Description

LO020 Class

Client Application Server SAP Router String System Number a)

Locate the SAP Logon program from your desktop. There are a variety of ways to find it and a variety of places it could reside on your desktop. These variables depend on how the GUI software was installed. Consult your technical support if you cannot find the application.

b) c) d)

Choose New. Enter Description: LO020 Class. Enter Application Server: . Enter SAP Router String: . Choose R/3 as the SAP system. Enter System Number: .

e) f) g) h) 2.

Choose

OK.

You have now created a logon entry. You will use this entry to gain access to the SAP system you have identified with the information provided. Continued on next page

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Unit 1: Navigation

LO020

Field

Information

User

Password

Client

Language

EN

New Password a) b) c) d) e) f)

Choose the entry you created in the above exercise step. Choose Log on. Enter Client: . Enter Password: . Enter Language: . Select Enter. Note: You might be asked to change your password, if so, continue with the following steps. If you are not asked, skip to solution step J. Note: A password change dialog box displays.

g) h) i) j)

22

Enter New Password: . Enter Repeat Password: . Select Enter. Enter as many times as needed reading any system messages that might be displayed until you get to the SAP Easy Access screen.


November 2001

LO020

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Lesson: Navigation

Exercise 2: Navigating Menus Exercise Duration: Minutes

Exercise Objectives After completing this exercise, you will be able to: • Locate specific folders in the SAP Easy Access Menu • Navigate the SAP Easy Access Menu to locate specific transaction

Business Example As a new user working on a SAP system, you need to locate the specific transactions in the SAP System that you will need to use for your job.






Task: In this exercise, you will locate example transactions by navigating the SAP Easy Access Menu. 1.

What are the names of the transactions that are located under the Order in Sales and Distribution? folder FIELD

TRANSACTION NAME

Transaction Transaction Transaction 2.

What are the names of the transactions that are located under the Document Entry in General Ledger? folder Continued on next page

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Unit 1: Navigation

LO020

FIELD

TRANSACTION NAME

Transaction Transaction Transaction Transaction Transaction Transaction Transaction Transaction

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Lesson: Navigation

Solution 2: Navigating Menus Task: In this exercise, you will locate example transactions by navigating the SAP Easy Access Menu. 1.

What are the names of the transactions that are located under the Order in Sales and Distribution? folder FIELD

TRANSACTION NAME

Transaction Transaction Transaction a) b) c) d) e) f)

2.

Choose SAP Standard Menu (the triangle to the left of the SAP Menu folder). Choose Logistics (the triangle to the left of the logistics folder). Sales and Distribution (the triangle to the left of the Choose Sales and Distribution folder). Choose Sales (the triangle to the left of the Sales folder). Choose Order (the triangle to the left of the Order folder). Record your results: FIELD

TRANSACTION NAME

Transaction

Create

Transaction

Change

Transaction

Display

What are the names of the transactions that are located under the folder Document Entry in General Ledger? FIELD

TRANSACTION NAME

Transaction Transaction Transaction Transaction Transaction Continued on next page

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Unit 1: Navigation

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Transaction Transaction Transaction a) b) c) d) e)

26

Choose Accounting (the triangle to the left of the Accounting folder). Choose Financial Accounting (the triangle to the left of the Financial Accounting folder). Choose General Ledger (the triangle to the left of the General Ledger folder). Document Entry (the triangle to the left of the Choose Document Entry folder). Record your results: FIELD

TRANSACTION NAME

Transaction

Enter G/L Account Document

Transaction

Cash Journal Posting

Transaction

Edit or Park G/L document

Transaction

Post with Clearing

Transaction

Incoming Payments

Transaction

Outgoing Payments

Transaction

Valuate Foreign Currency

Transaction

General Posting


November 2001

LO020

21

Lesson: Navigation

Exercise 3: Personalizing the System Exercise Duration: Minutes

Exercise Objectives After completing this exercise, you will be able to: • Navigate to transactions you would like to save as favorites • Use the Menu bar to create and store a favorite transaction

Business Example As an SAP user, you will have specific transactions, files, or Web sites that you access frequently. In addition, you will likely desire to make personal settings.






Task: In this exercise, you will create two sample transactions as favorites that will appear on your SAP Easy Access menu. You will also make settings in your user profile.

November 2001

1.

Create a favorite for the transaction Post Incoming Payment in Accounts Receivable. This is transaction code F-28.

2.

Create a favorite for the transaction Display Vendor (Centrally) in Materials Management. This is transaction code XK03.

3.

In your user profile, set the decimal notation and date format that you desire.


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Unit 1: Navigation

LO020

Solution 3: Personalizing the System Task: In this exercise, you will create two sample transactions as favorites that will appear on your SAP Easy Access menu. You will also make settings in your user profile. 1.

Create a favorite for the transaction Post Incoming Payment in Accounts Receivable. This is transaction code F-28. a) b) c)

Choose Accounting → Financial Accounting → Accounts Receivable → Document Entry Incoming Payment Choose Choose Favorites → Add Note: This Menu path is at the top of your window.

2.

Create a favorite for the transaction Display Vendor (Centrally) in Materials Management. This is transaction code XK03. a) b) c)

Choose Logistics → Materials Management → Purchasing → Master Data → Vendor → Central → Display Choose Display Choose Favorites → Add Note: This menu path is at the top of your window.

3.

In your user profile, set the decimal notation and date format that you desire. a) b) c)

28

Choose System → User profile → Own data. Choose the Defaults tab. Set the decimal notation and the date format you desire by choosing the correct radio buttons.


November 2001

LO020

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Lesson: Navigation

Exercise 4: Creating Web Site Links in the Favorites List Exercise Duration: Minutes

Exercise Objectives After completing this exercise, you will be able to: • Understand how to create Websites as favorites • Create and store three favorite Websites in your favorites list

Business Example Periodically you need to access Web sites as part of your job functions. You would like to be able to store the Web sites as favorites for quick access right from your SAP system.






Task: You will create and save two Web sites as favorites in the navigation area of your SAP system.

November 2001

1.

Create as a favorite a link to www.sap.com

2.

Create as a favorite a link to www.yahoo.com


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Unit 1: Navigation

LO020

Solution 4: Creating Web Site Links in the Favorites List Task: You will create and save two Web sites as favorites in the navigation area of your SAP system. 1.

Create as a favorite a link to www.sap.com a) b) c) d) e) f)

2.

Create as a favorite a link to www.yahoo.com a) b) c) d) e) f)

30

Choose Favorites → Add Other Objects Choose Web address or file Choose Enter Enter Text: sap Enter Web address or file: http://www.sap.com Enter Choose Choose Favorites → Add Other Objects Choose Web address or file Choose Enter Enter Text: yahoo Enter Web address or file: http://www.yahoo.com Enter Choose


November 2001

LO020

Lesson: Navigation

Lesson Summary You should now be able to: • Log on to the SAP system • Navigate a basic path and personalize an SAP system • Search for information and obtain help using the different help methods in the SAP system

Related Information http://help.sap.com

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Unit Summary

LO020

Unit Summary You should now be able to: • Log on to the SAP system • Navigate a basic path and personalize an SAP system • Search for information and obtain help using the different help methods in the SAP system

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Test Your Knowledge

27

Test Your Knowledge Direct the learners to complete the following self-assessment.

1.

You can have only one SAP R/3 session open at a time. Determine whether this statement is true or false.

□ □ 2.

True False

Which of the following is not part of the information required to log on to the SAP system? Choose the correct answer(s).

□ □ □ □ 3.

A B C D

Enter a specific client number Enter your User ID Enter your password Customize your settings

What menus are standard on all SAP screens? Choose the correct answer(s).

□ □ □ □ 4.

A B C D

System Help Both A and B None of the above

Which of the following provides general information on the SAP system and transaction or task you are working on? Choose the correct answer(s).

□ □ □ □

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A B C D

Status Bar Menu Path Role Bar None of the above


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Test Your Knowledge

5.

LO020

In the SAP Easy Access menu, you can create a favorites list containing: Choose the correct answer(s).

□ □ □ □ 6.

34

A B C D

Web addresses Transactions Files All of the above

List three different types of online help that are available in the SAP system.


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LO020

Test Your Knowledge

29

Answers 1.

You can have only one SAP R/3 session open at a time. Answer: False You can create up to six sessions. Each session you create is as if you logged on to the system again. Each session is independent of the others.

2.

Which of the following is not part of the information required to log on to the SAP system? Answer: D You do not customize your settings until you are already logged on to the SAP system.

3.

What menus are standard on all SAP screens? Answer: C The System menu contains functions that affect the system as a whole, such as Create session, User profile, and Log off. The Help menu provides various forms of online help.

4.

Which of the following provides general information on the SAP system and transaction or task you are working on? Answer: A The Status bar contains information on system messages, as well as system information such as client, user, transaction codes, and response time.

5.

In the SAP Easy Access menu, you can create a favorites list containing: Answer: D Favorites can consist of URL Web links, standard and customer transaction codes, and links to other files such as Word documents or Power Point files.

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Test Your Knowledge

6.

LO020

List three different types of online help that are available in the SAP system. Answer: Following are the types of system-level help that are available in the SAP system: Application help: Displays comprehensive help on the current application; selecting this menu option in the initial screen displays help on getting started with R/3 SAP Library: This is where all online documentation can be found Glossary: Enables you to search for definitions of terms Release notes: Displays notes that describe functional changes that occur between R/3 releases SAPNet: Enables you to log on to SAPNet Feedback: Enables you to send a message to the SAPNet R/3 front-end, SAP’s service system Settings: Enables you to select settings for help F1: Field level help-Provides information about the field F4: Field level help-Provides a list of field values or an option to search for the information if the list is extensive

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Unit 2 Basics of the Procurement Process

31

SAP terminology for the elements of the R/3 organizational structure might not match what our customers currently use. Therefore, it is important to provide clear glossary definitions and clear visual relationships for the elements used in the procurement process.

Unit Overview This unit will introduce the concept of organizational levels in a business enterprise and their importance in both master data and in transaction documents. The basic steps of the procurement cycle will also be presented.

Unit Objectives After completing this unit, you will be able to: • • • • • • • • • • •

November 2001

List the organizational levels in the R/3 System that are relevant to the procurement process Explain the relationship between these organizational levels Identify the basic procurement process Create and process a purchase order Display the purchase order and purchase order output Explain the purpose and function of a goods receipt and its relationship to goods movement List the most important effects of a goods receipt for a purchase order in the R/3 System Post a goods receipt with reference to a purchase order Explain and demonstrate the document concept at goods receipt Explain and demonstrate the use of Logistics Invoice Verification (LIV) to post a vendor invoice Explain the effects of Logistics Invoice Verification (LIV) on the purchase order


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Unit 2: Basics of the Procurement Process

LO020

Unit Contents Lesson: Organizational Elements ............................................. 39 Lesson: Purchase Order Basics ............................................... 56 Procedure: Creating a Standard Purchase Order ...................... 64 Procedure: Displaying the Purchase Order ............................. 66 Procedure: Message Output for Purchase Order ....................... 70 Demonstration: Create a Standard Purchase Order.................... 71 Demonstration: Display a Purchase Order............................... 73 Demonstration: Update Favorites ......................................... 75 Exercise 5: Purchase Order Basics ....................................... 77 Lesson: Goods Receipts Basics ............................................... 85 Procedure: Goods Receipt ................................................. 94 Procedure: Display Material Document .................................. 95 Demonstration: Goods Receipt............................................ 96 Demonstration: Display Material Document for Goods Receipt....... 97 Demonstration: Maintain Favorites list ................................... 98 Exercise 6: Goods Receipts Basics....................................... 99 Lesson: Invoice Verification Basics...........................................108 Procedure: Logistics Invoice Verification ................................ 117 Demonstration: Post a Logistics Invoice Verification .................. 119 Exercise 7: Invoice Verification Basics ..................................121

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LO020

Lesson: 33

Lesson: Organizational Elements

Organizational Elements Lesson Duration: 45 Minutes

Lesson Overview In this lesson participants will familiarize themselves with the organizational levels essential to the procurement process and obtain an insight into the organizational structure of the IDES company.

Lesson Objectives After completing this lesson, you will be able to: • •

List the organizational levels in the R/3 System that are relevant to the procurement process Explain the relationship between these organizational levels

In this lesson participants will familiarize themselves with the organizational levels essential to the procurement process and obtain an insight into the organizational structure of that IDES company. Explain the IDES is the training company. It is important not to use abbreviations when explaining SAP concepts to students. Normally, this class is a student’s first or second exposure to SAP, so be sensitive to using abbreviations during lecture. During this lesson, encourage students to think about their corporate structure and how it relates to the R/3 environment. Create the organizational structure on the board as you discuss this lesson. Make the drawing resemble the organizational graphic: Organizational Levels in Inventory Management. Leave this drawing on the board to refer to in other lessons.

Business Example In your company the responsibilities of purchasing, goods receipt, and invoice verification are organized by regional and functional considerations. The project team is testing how it can map this enterprise structure in the R/3 System, using the relevant organizational levels.

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LO020

Organizational Levels in the Procurement Process This is an overview graphic. The following graphics give more details for each level. Explain that organizational elements are the building blocks of the R/3 System. Each organizational level must be defined and assigned in the Implementation Guide (IMG). Explain the define and assign process as you explain each level of the MM organizational structure. Every module uses organizational element to define its structure. Application processes use organizational levels in their processing. Defining and assigning organizational levels are one of the first steps when implementing R/3. Explain the importance of defining and assigning the organizational levels correctly during implementation. Encourage the students to think about their own company’s structure and relate its structure to the levels in R/3.

Figure 10: Organizational Levels in the Procurement Process

In the SAP R/3 System, organizational levels are structures that represent the legal or organizational views of a company. Defining organizational levels is an essential step in your project and is vital for all subsequent activities.

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LO020


Analyze the organizational structures and process structures in your company and match them with SAP structures. Once you have decided on an organizational structure, it can be changed only with a great deal of effort. Organizational levels are defined and assigned in the Implementation Guide (IMG).

Client Begin drawing an organizational diagram on the board. In commercial, organizational, and technical terms the client is a self-contained unit in an R/3 System with separate master records. Often the students think the client is the hardware; this is incorrect. Explain that it is possible to have systems with multiple clients. Examples of multiple clients during implementation are: testing, development, and production. Explain that users using different clients (for example, one user is using client 400 and the other user is using client 401) are not seeing the same master data records. Give the students examples for the kinds of data held at a client level, for example, user logons. Note: There are Application Link Enabling (ALE) processes to synchronize clients.

Figure 11: Client

The client is a commercial, organizational unit within the R/3 System, with its own data and master records. From a business perspective, the client forms a corporate group.

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LO020

Examples of client-specific data includes: • • •

User master data - such as parameters, authorization, and user groups Customizing data - such as organizational units, assignments, and document types Application data - such as business transaction data and material master data

A client is assigned a unique three-character alphabetic, alphanumeric, or numeric key.

Company Code Add two company codes to the organizational diagram you are creating on the white board. Name them company 0001 and 0002. The company code is the smallest organizational unit for which a complete self-contained set of accounts can be drawn up for purposes of external reporting. Normally the FI group defines the company code. The company code is important to the Materials Management group because the inventory value can be assigned at a company code level. SAP recommends the inventory value be assigned at the plant level. Assignment of inventory value at the plant level allows more flexibility. A company code represents a separate legal entity within a client, or corporate group. Accounts are balanced and Profit and Loss statements are carried out at company code level. Example: A group of companies may have several company codes in the different countries in which it operates. There can be more than one company code in a client.

Figure 12: Company Code

The company code is the smallest organizational unit for which you can have an independent Accounting department for the purposes of external Accounting. A company code represents an independent accounting unit, for example, a company within a corporate group (client). Balance sheets and Profit and Loss statements, required by law, are created at company code level.

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You can set up several company codes in one client in order to manage various separate legal entities simultaneously, each with their own balanced set of financial books. You can use a special Customizing function in the Implementation Guide (IMG) to copy a company code. This copies the company code specifications to your new company code. A defined company code must be assigned to a client to be used in application processes. A company code is assigned a unique four-character alphabetic, alphanumeric, or numeric key.

Plant Add plants to the organizational diagram you are creating on the white board. Add two plants to company code 0001, name them 1000 and 1100 and one plant to company code 0002, name it 2000. Add one plant to company code 0002, name it 2000. As the next organizational level within R/3 after client and company code, the plant is especially relevant for logistics. A plant can belong to only one company code. A plant is a place where either materials are produced, or goods and services are provided. Planning either MRP or MSP takes place at the plant level. A plant does not have to be a warehouse or a factory. Any location where materials planning takes place can be defined as a plant. It is not necessarily a production facility, although the name may suggest this. Point out that a plant can also be a sales office, or a central delivery unit, or a corporate headquarters, depending on the need of the individual customer. Value-based inventory transactions take place at plant level.

Figure 13: Plant

A plant is an organizational logistics unit that structures the enterprise from the perspective of production, procurement, plant maintenance, and materials planning.

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A plant can be one of the following locations: • • • • •

Central delivery warehouse Regional sales office Manufacturing facility Corporate headquarters Maintenance plant

A plant has the following attributes: • • •

A plant has an address. A plant has a language. A plant belongs to a country.

The plant plays an important role in the following areas: •

• •

Material Valuation: If the valuation level is the plant, the material stocks are valuated at plant level. If the valuation level is the plant, you can define the material prices for each plant. Each plant can have its own account determination. Inventory Management: The material stocks are managed within a plant. MRP: Material requirements are planned for each plant. Each plant has its own MRP data. Analyses for materials planning can be made across plants.

The plant is an operating area or branch within a company. The plant is embedded in the organizational structure as follows: • • •

The plant is assigned to a single company code. A company code can have several plants. Several storage locations in which material stocks are managed can belong to a plant. A plant can be defined as a maintenance planning plant.

When creating a new plant, you can use the plant copying function within the Implementation Guide (IMG). When you use this function, the system processes the entry in the plant table and in all dependent Customizing and system tables in which the plant is included as a key. A unique four-character alphabetic, alphanumeric, or numeric key is assigned to a plant.

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Storage Location Add storage locations to the organizational diagram. Add two storage locations to plant 1000, name them 0001 and 0002; add three storage locations to plant 1100, name them 0001, 0002, and 0003. Multiple storage locations can be defined for a plant. Physical inventory is carried out at storage location level. Materials Management uses this organizational level. Warehouse Management allows for another organizational level not defined in Materials Management, the storage bins. The R/3 System does not automatically create storage locations. A storage location must be assigned to a plant before it can be used.

Figure 14: Storage Location

The storage location is an organizational unit allowing the differentiation of material stocks within a plant. A storage location has the following attributes: • • • • • •

Physical inventory is carried out at storage location level. There may be one or more storage locations within a plant. A storage location has a description and at least one address. It is possible to store material data specific to a storage location. Stocks are managed on a quantity basis only and not on a value basis at storage location level. Storage locations are always created for a plant.

A unique four-character alphabetic, alphanumeric, or numeric key is assigned to the storage location.

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Organizational Levels in Inventory Management If you have been creating an organization diagram on the white board, your diagram should resemble this graphic. Explain how the R/3 System allows unique keys to be assigned to each level of the structure. Note that some of the names can be re-used in the org. levels (that is the storage location names). Point out the 1-to-n relationship between the organizational levels, client, company code, plant, and storage location.

Figure 15: Organizational Levels in Inventory Management

The client is uniquely defined in the system by a three-character alphabetic, alphanumeric, or numeric key. A unique four-character alphabetic, alphanumeric, or numeric key defines the organizational levels: company code and plant. A unique four-digit alpha , alphanumeric, or numeric key uniquely defines the storage location. Organizational structures are assigned to each other in the Implementation Guide (IMG). For example, several plants may be assigned to one company code. However, a plant can be assigned to one company code only in the R/3 System.

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Purchasing Organization and Group Add the purchasing org. 1000 to your diagram on the white board. The purchasing organization is the highest level of aggregation (after the organizational unit client) for purchasing statistics. The purchasing organization negotiates conditions for one or more plants. It is legally responsible for concluding contracts. The purchasing organization serves as a possible selection criterion for lists of all purchasing documents. From the Materials Management and Purchasing view, the purchasing organization is responsible for all purchasing activities (including the processing of requests for quotations and purchase orders). A purchasing organization can be divided into several purchasing groups that are responsible for different operational areas allowing: • • •

Each purchasing organization to have its own info records and conditions for pricing Each purchasing organization to have its own vendor master data Each purchasing organization to evaluate its own vendors using MM Vendor Evaluation.

Authorizations for processing purchasing transactions can be assigned to each purchasing organization. The purchasing group is a defined list of the buyer or group of buyer names and/or assigned buyer numbers. The list is maintained in the IMG. A purchasing group is responsible for purchasing operations for one or more purchasing organizations, and consists of one or more purchasers. The way a purchase organization is assigned in the organizational structure will depend on the customer’s business processes. Explain the three ways a purchasing organization can be assigned to an organization’s structure.

Figure 16: Purchasing Organization and Purchasing Group

A purchasing organization is an organizational level that negotiates conditions of purchase with vendors for one or more plants. It is legally responsible for completing purchasing contracts. A purchasing organization is assigned a unique four-character alphabetic, alphanumeric, or numeric key.

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A purchasing group is the business defined key for a buyer or group of buyers responsible for certain purchasing activities. Internally, the purchasing group is responsible for the procurement of a material or a class of materials. Externally, it is the medium through which contacts with the vendor are maintained. The purchasing organization is responsible for the company’s purchasing requirements. You can incorporate purchasing into the company structure by assigning the purchasing organization to company codes and plants. This means that you can determine whether purchasing is organized centrally or decentrally in your company. You can have a combination of centralized and decentralized purchasing organizations. You can organize your purchasing function in the following ways: corporate group-wide purchasing, company-specific purchasing, or plant-specific purchasing. All of these forms can co-exist within a single client.

Plant-Specific Purchasing Organization A plant-specific purchasing organization buys for only one plant. The plant and purchasing organization are assigned to the same company code. Example: You have two plants, one in Dallas, Texas, and one in Seymour, Connecticut. Each plant is independent and buys products and services for itself.

Figure 17: Plant-Specific Purchasing Organization

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In plant-specific procurement, a purchasing organization is responsible for procuring materials for one plant only. In this case, you assign the plant and the company code of the plant to the purchasing organization.

Cross-Plant Purchasing Organization A cross-plant purchasing organization buys for several plants within a company code. Example: You have two plants, one in Dallas, Texas, and one in Seymour, Connecticut. They have products and services they use in common such as coaxial cable. Both plants are assigned to the same purchasing organization so contracts for the common products and services can be negotiated together.

Figure 18: Cross-Plant Purchasing Organization

You can set up a cross-plant purchasing organization for each company code. This purchasing organization procures material and services for all plants assigned to the company code. In this case, you assign a company code to the purchasing organization.

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Cross-Company Code Purchasing Organization A cross-company code purchasing organization can buy for several plants in different company codes. In this case it is important that the purchasing organization is not assigned to a company code in Customizing practice, there are various ways of organizing purchasing organizations. A mixture of organizations and responsibilities is also possible using references between purchasing organizations. In this way, certain purchasing organizations can access more advantageous terms and conditions. Example: You have three plants and three company codes. A plant in Texas, a plant in Mexico, and a plant in Canada. The purchasing organization negotiates the contracts for all plants and companies, for example coaxial cable is purchased for all three plants from the same supplier. Advantage: price of the product. If you buy 200 feet of coaxial cable for one plant versus 200,000 feet of coaxial cable for all three plants. The way a customer assigns purchasing organizations depends on their business needs.

Figure 19: Cross-Company Code Purchasing Organization

If you want to organize purchasing on a cross-company code basis, you do not assign a company code to the purchasing organization in Customizing. When you create a purchase order, for example, the system asks you to enter the company code for which you want to procure the material. In this

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case, you do not assign a company code to the purchasing organization, but specify the company code concerned for each individual purchasing transaction.

Organizational Levels at IDES Explain the training system using the student’s bullet points to aid you in your explanation.

Figure 20: Organizational Levels at IDES

IDES is the R/3 International Demo and Education System. The IDES group comprises several model companies that map the business processes of the R/3 System. The example of the IDES group structure shows you how the organizational levels relevant to procurement processes can be mapped in the R/3 System. The IDES system is delivered along with the standard R/3 System. It contains sample data that you can use for internal and external training.

IDES: Overview Explain the organizational structure the students will be using in their lessons. Suggest they use this graphic as a reference for their exercises. All of the organizational levels are already configured for this class, the students will not need to set up any organizational levels to complete the exercises. Explain: The class is assigned to company code 1000, Deutschland. The class will be using the organizational levels assigned to company code 1000 during their application processes. Make sure the students understand the organizational structure of the IDES company. Subsequent exercises will assume an understanding of the IDES organizational structure.

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Figure 21: IDES Overview

IDES is a multinational group, with companies in Europe, Asia, and North America. In Europe, IDES has companies in Germany and Great Britain. Due to different legal regulations concerning the balancing of accounts and Profit and Loss statements, IDES needs two company codes in Europe. IDES has five manufacturing plants in Germany. The motor bikes are assembled in the Hamburg plant, the Berlin plant manufactures the crankcases, the Dresden plant manufactures the gearboxes, the Frankfurt plant is responsible for producing the brake systems, and the electric components are made in the Stuttgart plant. IDES has four storage locations in its Hamburg plant. These enable the plant to differentiate its material stocks.

Purchasing at IDES Explain how the purchasing organization is assigned in the training system.

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Figure 22: Purchasing at IDES

IDES Germany has centralized purchasing for tires, steel, electronics, accessories, and equipment. The central Purchasing department is based in Hamburg and is responsible for procuring all the above materials for all of the company’s plants in Germany. Each plant also has its own local Purchasing organization. This local, decentralized purchasing organization is responsible for procuring office equipment and goods for which central procurement would not be economical (for example, due to transportation costs).

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Facilitated Discussion Reemphasize the importance of organizational structures in the R/3 environment.

Discussion Questions Use the following questions to engage the participants in the discussion.Feel free to use your own additional questions. How is your company structured?

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Lesson Summary You should now be able to: • List the organizational levels in the R/3 System that are relevant to the procurement process • Explain the relationship between these organizational levels


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Lesson: 45

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Purchase Order Basics Lesson Duration: 1.5 Hours

Lesson Overview In this lesson you will gain an understanding of the procurement cycle with a focus on the purchase order process and the data required to create and issue a purchase order.


Identify the basic procurement process Create and process a purchase order Display the purchase order and purchase order output

Most students will have an understanding of a procurement cycle but this might be their first exposure to the R/3 processes. Explain the training environment has been configured with a basic procurement process. This lesson discusses the whole procurement cycle, then discusses each step in more detail.

Business Example You need to use the procurement process at your company. The procurement process at your company for a stock material generally includes creating a purchase order, posting the goods receipt, and processing the vendor invoice.

Procurement Cycle Discuss each step in the procurement cycle. Re-create the process cycle on the board as you discuss for reference for other lessons. The following lessons will focus on steps 4, 6, and 7. Note: Some students will express concern that the R/3 cycle does not reflect their current purchasing cycle. If there is concern explain that the cycle presented in this lesson reflects a basic R/3 cycle. The R/3 process can be configured to incorporate other cycle needs, such as bar coding.

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Lesson: Purchase Order Basics

Figure 23: Procurement Cycle

The typical procurement cycle for a service or material consists of eight phases: 1.

2.

3.

4.

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Determination of requirements: Materials requirements are identified either in the user departments or via materials planning and control. (This can cover both MRP proper and the demand-based approach to inventory control. The regular checking of stock levels of materials defined by master records, use of the order-point method, and forecasting on the basis of past usage are important aspects of the latter.) You can enter purchase requisitions yourself, or they can be generated automatically by the materials planning and control system. A purchase requisition is a request or instruction to Purchasing to procure a certain quantity of a material or a service so that it is available at a certain point in time. Determination of the source of supply: The R/3 System helps the buyer determine possible sources of supply. You can use determination of the source of supply to create requests for quotation (RFQs) and then enter the quotations. You can also access existing purchase orders and conditions in the system. Vendor selection: The system simplifies the selection of vendors by making price comparisons between the various quotations. It automatically sends rejection letters. Purchase order processing: The system facilitates data entry by providing entry aids when you are entering purchase orders. The Purchasing system adopts information from the requisition and the quotation to help you create a purchase order. As with


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6.

7.

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purchase requisitions, you can generate POs yourself or have the system generate them automatically. Vendor scheduling agreements and contracts (in the SAP System, types of longer-term purchase agreement) are also supported. Purchase order monitoring: The buyer can monitor the processing status of the purchase order online at any time and can determine whether goods or an invoice have been received for the relevant purchase order item. The system also supports reminder procedures. Goods receipt: The system compares the goods receipt quantity with the purchase order quantity. Goods receiving personnel can confirm the receipt of goods simply by entering the PO number. By specifying permissible tolerances, buyers can limit over- and underdeliveries of ordered goods. Invoice verification: Vendor invoices are checked for accuracy of prices and contents. The system supports the checking and matching of invoices. The accounts payable clerk is notified of quantity and price variances because the system has access to PO and goods receipt data. This speeds the process of auditing and clearing invoices for payment. Payment processing: Financial Accounting normally deals with vendor payments.

Purchase Order Discuss where data can be obtained from in the R/3 System. A requisition or an RFQ contains the quantity and delivery date of the material to be supplied or the quantity of the service to be performed and can be used as reference for creating the purchase order. The quantity and requested dates are copied into the purchase order when the purchase order is created with reference to a requisition or an RFQ. Master data: such as the vendor master record payment data is also populated in the copy process. The purchase order is being created for an external vendor or to sell the product to another plant.

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Figure 24: Purchase Order

A purchase order is a formal request to a vendor to supply certain goods or services under the stated conditions. The buying entity’s request or instruction to a vendor (external supplier) to supply certain materials or render or perform certain services or works formalizes a purchase transaction. You can create purchase orders without reference or with reference to a purchase requisition, a request for quotation, or another purchase order. When you enter the purchase order data, the system suggests default values. For example, it suggests the ordering address, as well as the terms of payment and freight (incoterms) from the vendor master record. If you have maintained a material master for a given material in the R/3 System, the system suggests the material short text or the material group, for example. If a purchasing info record already exists in the system, the system copies a price proposal to the purchase order. You either send the purchase order to a vendor or you carry out a stock transport order in another plant belonging to your company or group. With a stock transport order, you can take into account the associated freight costs in the purchase order. Note: For more information about stock transport orders, refer to the Materials Management documentation on the topic of Inventory Management: Special Stocks and Special Forms of Procurement in Materials Management.

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Purchase Order Creation Discuss the different ways one can place a purchase order in the system. If you create a purchase order with reference to a RFQ, a requisition, or a purchase order, the data you entered on the initial screen of reference documents is also adopted in the document being created. If you create a purchase order with reference to a RFQ, the RFQ document number will be captured and referenced in the purchase order. This allows the system to build a document history for each item referenced on another document. You can also create a purchase order on the system without a reference to another document. The system also supports receipt and invoice history for each item. This history gives the user access to detailed information about each item on a document. This information includes: the type of transaction, the time of the transaction, the user who processed the transaction, and the quantity and value of the transaction. A question that is often asked (you may want to discuss this with your students at this point) is: Does the price from the material master record copy into the purchase order document? The answer is no, the price from the material master does not copy into the purchase order document. R/3 will obtain the price of the material on a purchase order from one of the following (depending on the programming in the IGM): the RFQ, a contract, another purchase order, or an information record. Later in the class you will discuss information records so you might want to discuss prices on purchase orders when you discuss information records.

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Figure 25: Purchase Order

A purchase order is a formal request to a vendor to supply you with goods or services at the conditions stated in the purchase order. You specify in the purchase order whether the material is delivered for stock or for direct consumption (for example, cost center, asset or project). The goods receipt and invoice verification are usually carried out on the basis of the purchase order. You can minimize data-entry time by creating purchase order items with reference to an existing purchase requisition, RFQ or purchase order. You can also enter a purchase order without reference to preceding documents in the system. If you want assistance choosing a vendor when you create the purchase order, you can use the source determination function in the R/3 System. The system suggests possible vendors on the basis of the defined sources of supply (outline agreements, info records) and, if required, on the basis of other master data (source list entries, quota arrangements). You can determine the current processing status for each purchase order item. For example, you can determine whether goods receipts or invoice receipts have already been posted for an item. You can display the follow-on documents (material document and invoice document) from the purchase order history screen. Note: In version 4.6 the purchase order history tab is not displayed until a goods receipt or invoice process has been posted.

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Figure 26: Purchase Order Screen

Purchase Order Format You can maintain all relevant data on one central screen. This single screen is divided into three parts: Header Here you can enter all the data that affects the entire requisition or purchase order (e.g. the partner roles your vendor can assume, texts, or conditions). Item overview Here you can enter your items with the most important data (for example: material, services, material group, quantity, ordering plant). Item Details Here you can enter additional data on a particular item (for account assignment and expediting data or limits and individual services). You can expand and collapse all three screen areas individually, thereby also influencing their size.

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Purchase orders as well as other purchasing documents can be programmed to require a release strategy. Release strategies are discussed in class LO520.

Figure 27: Purchase Order Format

Like other purchasing documents in the R/3 System, the purchase order consists of a document header and one or more items. You can procure materials or services for all plants attached to your purchasing organization. The document header contains information that refers to the entire purchase order. Examples of this include the document currency, the document date, the terms of payment, and the purchasing organization. In the item overview area you can enter the items with the most important data relating to them (for example: material, services, material group, order quantity, and ordering plant). The item details of the document contain data describing the materials or services ordered. You can maintain additional information for each item (for example, delivery schedules or item-based text).

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51

Creating a Standard Purchase Order 1.

Logistics → Materials Management → Purchasing → Purchase Order → Create → Vendor/Supplying Plant Known.

2.

Enter the following data: • •

Vendor Document date Enter.

3.

Choose

4.

To open the item header area, choose Header.

5.

On the Org. data tab page in the header data area, use the F4 input help to enter the following data: • • •

Purchasing org. Purchasing group Company code

6.

To open the item overview area, choose Item overview.

7.

Enter the following data: • • • • •

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Material PO quantity Delivery date Plant Storage location

8.

Choose

Enter.

9.

Choose

Save.


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Figure 28: Example: Purchase order creation

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Displaying the Purchase Order 1.

Choose Logistics → Materials Management → Purchasing → Purchase Order → Display. Caution: If your purchase order is not displayed on the Standard PO XXX Created by User screen, choose Other Object. In the Select Purchase Order dialog box, enter your PO number, then choose Other document.

3.

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Choose

Back to return to the overview tree.


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Item Categories Item categories are introduced as part of this lesson to aid the student’s understanding of a Standard or Blank item category. Discuss the different types of item categories. Note: You will use item category again in more detail in the consumable lessons. The item category determines whether the material defined in a purchase order: • • • •

Requires a material number Requires an account assignment Is to be managed as a stock item Requires a goods receipt (GR) or an invoice receipt (IR)

We are going to use the Blank or Standard item category type when creating our purchase order in this lesson.

Figure 29: Item Category

The item category defines whether an item requires or can have a material number, account assignment, goods receipt, or invoice receipt. The item categories displayed depend on the document type. In Customizing, you can define which item categories are allowed for which documents.

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The item categories that are defined include the following: • •

•

• •

Standard: Used for materials that are to be procured externally. Subcontracting: The finished product is ordered from a vendor. The components that the vendor needs to manufacture the finished product are entered as material to be provided items. Consignment: The vendor makes material available, which you then manage as consignment stock. A liability arises only when material is withdrawn from consignment stock, not when the stock is placed in the consignment stores. Stock transport orders: The material is transferred from one plant to another. Third-party order: The ordered material should be delivered directly to a third party (for example, a customer). The vendor sends your company an invoice for the material. Note: Subcontracting, consignment, stock transfer orders and third-party orders are covered in the Materials Management documentation on Inventory Management: Special Stocks and Special Forms of Procurement in Materials Management.

Issuing Messages In MM Purchasing, the term message is used within the context of communication between a buying entity and its vendors. A message is a document in output format, allowing transmission of the information contained therein to vendors via various media (printer, e-mail, EDI, or fax, for example). (This type of message should not be confused with error, warning, or informatory messages issued by the SAP system in response to user activities, which are properly termed system messages.)

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Figure 30: Issuing Messages

You can issue purchase orders, changes to purchase orders, and order acknowledgements as messages via printer, fax, EDI or e-mail. You can configure which header texts and item-based texts the system issues. The header text is printed at the top of the purchase order and contains general information. Item texts describe a purchase order item in more detail. You can also include and issue standard texts. The layout of a printed document is determined by SAPscript. You can display the print preview directly from within the purchase order currently being processed. This also applies to documents that have not yet been released. You can use the print preview only when you first print a PO, and when you use the media fax or printout. Note: You will find more detailed information about printing purchasing documents in the Materials Management documentation on Purchasing: Entering Texts, Print Functions and Information Transmission.

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Message Output for Purchase Order 1. 2.

Choose Logistics → Materials Management → Purchasing → Purchase order → Messages → Print/Transmit. Enter the following data: • • •

3.

Document number Purchasing Organization Purchasing Group

Choose

Execute.

The system lists all of the documents found for your selection that still have messages to be processed. Your PO document is now displayed according to the PO number. Caution: Steps 4 to 8 are optional. 4.

Select your document item, then choose Message Detail. The system displays all the message records for the selected purchasing document.

5.

Select your message record, then choose Communication method. You could also change the print parameters at this point. Use the settings entered in the previous activity.

6.

Check the following data: Field

Data

Logical destination

Name of your printer

Number of messages

1

Print immediately

Select

Release after output

Select

7.

Choose

Back.

8.

Choose

Save.

Continued on next page

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9.

Select your item, then choose Display message. The system displays your print form. Check that the data and the item are correct for the: • • • •

Header text Material PO text PO Info text Item text

If required, use the scroll bar or the , your form. 10. Choose

icons to scroll within

Back.

symbol appears 11. Select your item, then choose Output message. The to the left of the item to confirm the message output. The message is now printed out on the printer assigned to your workplace. 12. Choose

Back until the overview tree appears.

Message determination represents the classic interface to business partners. It is used across applications in Materials Management (Purchasing, Inventory Management, Invoice Verification), Sales and Distribution (Shipping, Delivery, Picking), Production Planning and Control, Plant Maintenance, Project System (Order Confirmation), and Financial Accounting (Document Printing). In addition to print output with subsequent dispatch, which we describe here, you can also transfer requirements to vendors via fax, EDI or SAPOffice.

Demonstration: Create a Standard Purchase Order Purpose Create a standard purchase order for a material master. Important. This is the first materials management demo of the class so it is important to lay the ground work for all the other demos. Encourage the students to watch you while you present the demo. Tell them they will have time to practice the procedure presented in the demo in the exercise. Express to the students the importance of understanding the procedure. Let them know they will have other opportunities to create documents during the class.

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Caution: Allowing students to attempt to follow you while you are demoing a procedure is highly discouraged. Note: Use role menu LO020_Buyer to demo this lesson. Please be aware that the design and name of some buttons in the document overview have changed from 4.6B to 4.6C. Note: Approximate time of this demo: 20 minutes

System Data System: Client: User ID: Password: Set up instructions: 1. Choose LO020_Buyer → Purchase Order → Create / Change / Display Purchase Order. 2.

3.

Enter the following: Field

Data

Vendor

1000

Document date

Today’s date

In the Header area in the Org. Data, tab enter the following: Field

Data

Purchasing org.

1000

Purch. group

T20

Company code

1000

4. Note: The students’ exercise has them choose the to move between the screens or to have data automatically appear as default value. For consistency you may wish to use the when are moving between screens. 5.

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In the Item overview, area enter the following:


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Field

Data

Material

M-01

PO quantity

10

Plant

1000

Storage Location

0001

The price and the delivery date will appear as default values from system master records . 6.

Save the purchase order . Write down the purchase order number as you will use it in other demos.

To reduce the amount of data you have to key in, you can make entries in certain fields in the Default data area of the item overview or by using the personal setting button. You can enter the receiving plant and storage location or the delivery date, for example, if they are the same for most or all items in the purchase order. The system automatically adopts these entries in all items on the subsequent PO item overview. You may wish to demo setting defaults within the purchase order document.

Demonstration: Display a Purchase Order Purpose To show the different ways in which a purchase order can be displayed To briefly explain how a purchase order is structured Note: Use role menu LO020_Buyer to demo this lesson. Approximate time for demo is 10 minutes.

System Data System: Client: User ID: Password: Set up instructions: 1. The students’ exercise has them display a purchase order using the Document Overview. LO020_Buyer → Purchase Order → Create / Change / Display Purchase Order.

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2.

Select the Document Overview button from the Application toolbar.

3.

Select the Selection variant icon.

4.

Select from the list My purchase orders.

5.

Select the purchase order you created from the last demo by double-clicking on it.

6.

Within the Header details area: •

7.

Select the Delivery/invoice; tab point out the payment conditions and incoterms. • Point up in the Title bar who entered the purchase order. • Select the Status tab and point out statistics of the purchase order. Within the Item details area: •

8. 9.

Select the Quantities/weight tab. Show how the system automatically calculated the weights. • Select the Conditions tab. Discuss from where the default value for the cash discount came. • Select the Purchase Order History tab. Discuss why the tab is not available. The tab will appear when the first goods receipt is posted. • Select the Print Preview button from the Application toolbar. Display the output of the purchase order. Demo the second way one can display a purchase order by selecting icon from the Applications toolbar. the The purchase order number from the last demo will appear automatically in the purchase order field. Demonstrate how to find a purchase order number using the F4 help.

10. Select from the F4 choices Purchasing Documents per Vendor and enter the following: Field

Data

Vendor

1000

Purchasing group

T20

11. Select Enter. Double click on the purchase order number to pull the number back into the purchase order Select document dialog box. 12. Select the Other document button within the Select document dialog box.

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Demonstration: Update Favorites Purpose Create a favorite for the new purchase order transaction ME21N. Show the options to create a favorites list.

System Data System: Client: User ID: Password: Set up instructions: 1. For details on how to demonstrate a favorites list, refer to the demo in the navigation unit, Unit 1.

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Exercise 5: Purchase Order Basics Exercise Duration: Minutes

Exercise Objectives After completing this exercise, you will be able to: • Create and process a purchase order • Display and output the purchase order

Business Example For stock material, the procurement process at your company generally includes creating a purchase order, posting the goods receipt, and processing the vendor invoice. The Purchasing department is responsible for procuring the materials. Familiarize yourself with purchase order processing for stock material.






Task 1: Create a Purchase Order Use the Purchasing composite role LO020_Buyer for the tasks below. When you use this role, the system provides only the menu entries relevant to Purchasing. 1.

Order 100 pieces of the standard taillight-## material master T-RM1## for immediate delivery from vendor T-K12A## Motolux GmbH Gr.##. Hint: The Purchase Order screen is divided into three areas: the Header, the Item overview, and the Item Details. Each of these areas require separate data entry. The Item Details area will not open or be available for data entry until there is data in the Item overview area. Continued on next page

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2.

You have determined the purchase order is for Purchasing Organization 1000, Purchasing group T##, and Company code 1000. Enter the relevant organizational levels in your purchase order in the Org data tab.

3.

The purchase order is for material master T-RM1##. 100 pieces of this material have been requested for this order. The Hamburg plant has requested immediate delivery of the taillights. The warehouse has requested the product be stored in storage location 0001. Note: The description, the unit of measure, the delivery date, the price, and the material group will appear as default value in the purchase order from system master data records.

4.

Save the Purchase Order. Write down the Purchase Order number for further use. Field:

Data:

Purchase Order Number

Task 2: Display the Purchase Order 1.

Using the document overview for your purchasing group, display the purchase order you created in Task 1. Confirm you entered the data requested in Task 1 correctly. Data:

Field: PO quantity Plant Storage Location

Hint: When the document overview is open, you must use the icons within the overview section to open the requested purchase order lists.

Task 3: Issue a Message 1.

Using the Document overview, display the Print Preview for your purchase order from Task 1.


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Task 4: Maintain a List of Favorites Since you work with the purchase orders frequently, include the purchase order transaction in your list of favorites. Note: The formatted text within your favorites list will vary depending on the procedure you choose to populate your favorites list. 1.

Maintain your favorites list.

2.

Change the description of the purchase order transaction within your favorites list to read Create Purchase Order.

Task 5: Return to the Main SAP Menu 1.

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Since you work with several groups within the SAP system, you need access to the Main SAP Easy Access menu. Leave the LO020_Buyer menu and return to the Main SAP Easy Access menu.


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Solution 5: Purchase Order Basics Task 1: Create a Purchase Order Use the Purchasing composite role LO020_Buyer for the tasks below. When you use this role, the system provides only the menu entries relevant to Purchasing. 1.

Order 100 pieces of the standard taillight-## material master T-RM1## for immediate delivery from vendor T-K12A## Motolux GmbH Gr.##. Hint: The Purchase Order screen is divided into three areas: the Header, the Item overview, and the Item Details. Each of these areas require separate data entry. The Item Details area will not open or be available for data entry until there is data in the Item overview area. a)

b) c)

2.

Select the Other menu button from the Applications toolbar, Select from the choices within the role list LO020_Buyer role buyer for LO020. Select Role LO020_Buyer → Purchase Order → Create/Change/Display/Purchase Order. Enter the vendor master number: Field:

Data:

Vendor

T-K12A##

You have determined the purchase order is for Purchasing Organization 1000, Purchasing group T##, and Company code 1000. Enter the relevant organizational levels in your purchase order in the Org data tab. a)

Within the Header area of the purchase order, select the Org. data tab. Fill in the required data: Field:

Data:

Purchasing org.

1000 IDES Deutschland

Purch. group

T## (LO020–##)

Company code

1000 IDES AG 1000


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3.

The purchase order is for material master T-RM1##. 100 pieces of this material have been requested for this order. The Hamburg plant has requested immediate delivery of the taillights. The warehouse has requested the product be stored in storage location 0001. Note: The description, the unit of measure, the delivery date, the price, and the material group will appear as default value in the purchase order from system master data records. a)

b)

4.

Within the Item Overview area, Enter the requested data: Field:

Data:

Material

T-RM1## standard taillight

PO quantity

100

Plant

1000 Plant Hamburg

Stor. loc

0001 Material Warehouse

After you have entered the requested data, choose the Green Check Mark from the Options toolbar so the default data from the system master records will populate.

Save the Purchase Order. Write down the Purchase Order number for further use. Data:

Field: Purchase Order Number a)

Save your purchase order by choosing the the Options toolbar.

Save icon from

Task 2: Display the Purchase Order 1.

Using the document overview for your purchasing group, display the purchase order you created in Task 1. Confirm you entered the data requested in Task 1 correctly.


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Data:

Field: PO quantity Plant Storage Location

Hint: When the document overview is open, you must use the icons within the overview section to open the requested purchase order lists. a) b) c) d) e)

f)

Select Role LO020_Buyer → Purchase Order → Create/Change/Display/Purchase Order. Select the Document overview on button from the Applications toolbar. Select the Selection variant icon. From the list select My Purchase Order. A list of purchase order(s) created for your purchasing group will appear in the Document overview area. Select the correct purchase order number from list created in Task 1. Confirm you correctly entered the data requested from Task 1.

Task 3: Issue a Message 1.

Using the Document overview, display the Print Preview for your purchase order from Task 1. a) b) c) d) e)

f) g) h)

Select Role LO020_Buyer → Purchase Order → Create/Change/Display/Purchase Order. Select the Document overview on button from the Applications toolbar. Select the Selection variant icon. From the list select My Purchase Order. A list of purchase order(s) created for your purchasing group will appear in the Document overview area. Select the correct purchase order number from list created in Task 1. Select the Print Preview button from the Applications toolbar. Display the print preview. Use the Green Arrow button from the Options toolbar to return to the purchase order screen.


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Task 4: Maintain a List of Favorites Since you work with the purchase orders frequently, include the purchase order transaction in your list of favorites. Note: The formatted text within your favorites list will vary depending on the procedure you choose to populate your favorites list. 1.

Maintain your favorites list. a)

2.

You can maintain a favorites list either by: •

Drag and Drop: Select the purchase order transaction. Holding the left mouse button down, drag the transaction up and into the Favorites folder.

•

Right mouse click: Select the purchase order transaction. Click the right mouse button. Select add to favorites.

•

Using the Add to favorites icon: Select the purchase order transaction. Select the Add to favorites icon from the Applications toolbar. Click on the icon to move the purchase order transaction into the favorites list.

•

Using the Menu Bar: Select the purchase order transaction. Select from the Menu Bar Favorites /Add.

Change the description of the purchase order transaction within your favorites list to read Create Purchase Order. a) b) c)

Select the purchase order transaction. Select the Change Favorites icon from the Applications toolbar. A Text screen will open. Type the new name of your purchase order Create Purchase Order in the Text field. Green Check Mark within the Text dialog box. Select the


Since you work with several groups within the SAP system, you need access to the Main SAP Easy Access menu. Leave the LO020_Buyer menu and return to the Main SAP Easy Access menu. a)

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Select the SAP menu icon from the Applications toolbar.


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Lesson Summary You should now be able to: • Identify the basic procurement process • Create and process a purchase order • Display the purchase order and purchase order output

Related Information •

For more information detailing purchasing documents and their processing, refer to the SAP Library.

http://help.sap.com

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Lesson: 66

Lesson: Goods Receipts Basics

Goods Receipts Basics Lesson Duration: 60 Minutes

Lesson Overview In this lesson you will gain an understanding of the basic goods receipt process and its related effects.

Lesson Objectives After completing this lesson, you will be able to: • • • •

Explain the purpose and function of a goods receipt and its relationship to goods movement List the most important effects of a goods receipt for a purchase order in the R/3 System Post a goods receipt with reference to a purchase order Explain and demonstrate the document concept at goods receipt

Refer back to the procurement process cycle so the participants can see where they are in the process. The goods receipt process normally is a warehouse function. We address goods receipt as part of the procurement process because of its effect on inventory levels.

Business Example As an employee in the warehouse, you are responsible for entering goods receipts. You enter the goods receipt with reference to a purchase order so that you can check whether the delivery matches the purchase order. The goods delivered are posted to the plant’s valuated stock material.

Goods Receipt Emphasize the importance of referencing a purchase order when posting goods receipts. Explain the effects of the goods receipt on invoice verification and the purchase order history. Point out that during the goods receipt process R/3 creates two different documents: the material document records the quantity received into stock, while the accounting document records the value posted to the G/L accounts. The goods receiving clerk will see the material document displayed in the status bar when posting is processed. The accounting document will be created at the same time but the document number will not be displayed.

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Figure 31: Goods Receipt

All transactions that bring about a change in stock are entered real time in R/3. Stock is updated real time at the time of posting of a goods receipt. Posting a goods receipt to stock with reference to a purchase order has a number of advantages for you, including: •

•

•

•

•

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The goods receiving point can check whether the delivery is the same as the purchase order data; that is, whether the goods that were ordered have been delivered. The system suggests data from the purchase order when you enter the goods receipt (for example, items and quantities). This makes it easier to enter the goods receipt and check overdeliveries and underdeliveries when goods arrive. Among other things, the purchase order history is automatically updated as a result of the deliveries. The Purchasing department can send a reminder about late deliveries. When you post a goods receipt to the warehouse, the system creates a material document containing information such as the material delivered and the quantity delivered. The system also records the storage location in which you place the material into stock in the plant concerned. In transactions relevant for material valuation, the system creates at least one accounting document, which records the effects of the goods movement on the value of the stock.


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Goods receipts are processed against the open purchase order quantity. The open purchase order quantity is the quantity still to be delivered for an ordered item. It is calculated as the difference between the quantity ordered and the quantity delivered to date. If the entire order quantity or more has already been delivered, the open purchase order quantity equals zero. The open purchase order quantity is automatically adjusted whenever goods are received for an order item or when the order item is changed. The Delivery Completed indicator specifies whether a purchase order item is considered closed. This means that no more goods receipts are expected for this item. If the Delivery Completed indicator is set, the open purchase order quantity becomes zero, even if the full quantity has not been delivered. It is still possible to post goods receipts of remaining quantities, but these no longer change the open purchase order quantity.

Goods Receipt for Stock Material This lesson explains receiving materials with reference to a purchase order using the new receipt transaction screens, MIGO. As of release 4.6 you can post goods receipts in EnjoySAP transaction MIGO. MIGO replaces these transactions: MB01, MB0A, MBRL, MBSF, MBNL, MBST, MB02, MB03. Explain to students that receiving can be done for non-stock material using the same transaction. There are advantages to receiving materials with reference to a purchase order as the system will update data automatically. Explain what type of data is automatically updated. See the student bullet points for details. In release 4.6 the option to print a Goods receipt slip is new. The GR slip number can be assigned externally as well as internally. You can define different number ranges for each plant, storage location, and movement type.

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Figure 32: Goods Receipt for Stock Material

If you entered a purchase order to procure a material, you have to reference the purchase order when you enter the goods receipt. The system can check, for example, whether the material delivered is the same as the material ordered, whether the order quantity matches the goods receipt quantity, or whether the shelf life is still guaranteed for highly perishable goods (when the shelf life expiration date check is active for the relevant material). The purchase order history for a purchasing document item is also updated when a goods receipt is posted with reference to a purchase order. This allows the buyer to send the vendor a reminder about outstanding deliveries, for example. Several goods receipt items can be entered for a purchase order item in one operation. This is advisable if, for example, the material is delivered in batches or is distributed among several storage locations. You enter the goods receipt data in a single material document. If the delivery note accompanying the goods receipt does not contain a purchase order number, you can use the material number or the vendor number to search for the corresponding purchase order number. As of release 4.6, you can print goods receipt slips to facilitate physical movements and monitor the individual stocks in the warehouse.

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A goods receipt could have the following results in the system: • •

•

•

• •

•

•

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When you post a goods receipt, the system automatically creates a material document, which serves as proof of the goods movement. Parallel to the material document, the system creates an accounting document. The accounting document contains the posting lines (for the corresponding accounts) that are necessary for the movement. When you enter the goods receipt, you can print the goods receipt or goods issue slip (for example, goods receipt slip or pallet note) at the same time. This is new as of release 4.6. If the GR message indicator has been set in the purchase order, the buyer automatically receives a message that the delivery has been made. This does not tell the buyer what line was received. This is located in the Header area of the purchase order document. Stock consumption is updated in the material master record depending on the destination of the goods. When the goods receipt is posted, the system automatically updates the G/L accounts by the value of the goods receipt. Updates can also occur in other related applications. In the case of a goods receipt to consumption, for example, the account assignment object (such as a cost center, order, asset) is debited. When a goods receipt is posted, a purchase order history record is automatically created. If the Delivery Completed indicator is set in the material document, the order item is considered closed, and the open purchase order quantity is set to zero. Depending on the characteristics of the material, movement, and components used, additional updates are carried out in other components: vendor evaluation data in Purchasing , inspection lots in Quality Management, and transfer requirements and quantaties in the Warehouse Management System.


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Figure 33: Goods receipt screen example

Movement Types Goods movement type 101 is used to receive product into stock. It can also be used to receive product into quality stock or blocked stock. Goods movement 122 is a return to vendor goods movement type. This movement type is used to return product that has already been received into stock using the 101 or other goods receipt movement. Movement type 102 is a cancel or reversal movement for 101. Movements of type 102 show in R/3 as if you never received the product. Movement types can be customized in the IMG, if deemed necessary. Each movement type has its respective cancellation movement type, which corresponds to the number of the movement type + 1. If you are going to customize movement types, SAP recommends the new movement type begin with a “9”. Note: LO510 explains goods movement in detail. If a student has an interest in obtaining more detailed insight, suggest they attend LO510. Write several movement types on the board and explain to the students how they affect both the inventory and the accounting. Make a determination from the class interest as to which movement you should discuss. Listed below are some of the more common movement types.

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For detailed information on each movement type, refer to the help in the IMG: Tools → AcceleratedSAP → Customizing → SPRO - Edit Project → SAP Reference IMG → Materials Management → Inventory Management and Physical Inventory → Movement Types → Copy, Change Movement Types. Choose the IMG activity document icon. 101 Goods receipt for purchase order or order: •

• •

If the purchase order or order has not been assigned to an account, a stock type (unrestricted-use stock, stock in quality inspection, blocked stock) can be entered during goods receipt. If the purchase order or order has been assigned to an account, the goods receipt is not posted to the warehouse, but to consumption. In the case of non-valuated materials, the goods receipt is posted to the warehouse, although the purchase order has not been assigned to an account.

201 Goods issue for a cost center: The goods can be withdrawn from unrestricted-use stock only. 301 Transfer posting plant to plant in one step. 551 Scrapping from unrestricted-use stock. 561 Initial entry of unrestricted-use stock. During initial entry of stock balances, when the R/3 System is active, you enter the physical warehouse stock figures or the book inventory from your old system into R/3 Materials Management . This data entry usually takes place by means of batch input. Movement types can be configured to require the user to enter a reason code, for example, defective.

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Figure 34: Movement Type: Examples

The movement type is a three-digit key used to differentiate between goods movements in the R/3 System. Examples of these goods movements are goods receipts, goods issues or transfer posting. For each goods movement a document is created which is used by the system to update quantities and values and serves as proof of goods movements. The movement type has important control functions in Inventory Management. It plays a central role in automatic account determination in the R/3 System. Together with other influencing factors, the movement type determines which stock or consumption accounts are updated in Financial Accounting. The movement type also determines the format of the screen when you enter documents and how the quantity fields are updated. The movement type also has important control functions in Inventory Management. For example, the movement type plays an important role in the following: • • •

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Updating of quantity fields. Updating of stock and consumption accounts. Determining which fields are displayed during entry of a document in the system


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When you enter a goods movement, you start the following chain of events in the system: •

• • •

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A material document is generated, which is used as proof of the movement and as a source of information for any other applications involved. If the movement is relevant for Financial Accounting, one or more accounting documents are generated. The stock quantities of the material are updated. The stock values in the material master record are updated, as are the stock and consumption accounts.


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Goods Receipt 1.

From the Inventory Management menu, choose Logistics → Material Management → Inventory management → Goods movement → Goods receipt → For purchase order → MIGO_GR - GR for Purchase Order (MIGO). This takes you to the initial screen for this function.

2.

Enter the data on the initial screen: • • •

Enter the header data. Select the movement type. Enter the purchase order number. In addition, you can enter the plant and a purchase order item, in order to restrict selection of the purchase order items.

If the quantity delivered is intended for the warehouse or for consumption or usage, select Movement type 101, PO to warehouse. The item selection list is displayed. This list contains all of the purchase order items that satisfy the criteria entered.

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3.

Select the purchase order items to be copied. If necessary, you can change data in the selected items on this screen.

4.

Check the Item OK button by placing a

5.

Post

in the box.

the document.


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Display Material Document 1.

From the Inventory Management menu, choose Logistics → Material Management → Inventory management → Goods movement → Goods receipt → For purchase order → MIGO_GR - GR for Purchase Order (MIGO). This takes you to the initial screen for this function.

2.

Select Display from the goods receipt pull-down menu. The system will display the last material document for you, otherwise, you can display the list of material documents for a material by choosing Logistics → Materials Management → Inventory Management → Environment → List Displays → Material Documents.

3.

Select the

Green Check Mark.


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Demonstration: Goods Receipt Purpose A goods receipt is posted for the material ordered. The goods delivered are posted to the plant’s valuated stock material. Enter the goods receipt.

System Data System: Client: User ID: Password: Set up instructions: 1. Post the goods receipt with reference to the purchase order created in the Purchase Order lesson. Select Role LO020_GOODS_RECEIPT → MIGO - Goods Movement (MIGO). •

Enter the purchase order number in the purchase order field Hint: Do not use the document overview in the goods receipt; turn it off.

•

2.

Select the so the data from the purchase order fills automatically. Point out the details in the tabs within the Detail data area of the goods receipt. • • •

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Select the WK tab from the Detail data area. Point out to the participants the significance of the movement type. Within the WK tab, select the Stock Overview icon. Explain Stock overview. Select the PO data tab. Select the History icon. Explain History icon. Note: There will not be history until you save the goods receipt posting.

3.

Point out the OK field, which is used to post the goods receipt. It can be preset for all items of a PO.

4.

Post the

goods receipt.


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Demonstration: Display Material Document for Goods Receipt Purpose To display the material document created by the goods receipt process and to explain the effect of the update to other R/3 documents.

System Data System: Client: User ID: Password: Set up instructions: 1. Select Role LO020_GOODS_RECEIPT → MIGO - Goods Movement (MIGO) Note: Approximate timing of this demo – 10 mins. Hint: You do not need to back out of the goods receipt screen to display the material document number. 2.

Select Display. You can use this function if you know the number of the material document you want to display. The system will display the last material document for you, otherwise, you can display the list of material documents for a material by choosing Environment → List Displays → Material Documents.

3.

Select the

4.

Select the Doc. info in the header area. Point out the Entered by, Entered on, and Transaction code field within the tab.

5.

Show the location of the FI document within the Doc. info tab and explain the system created the accounting documents during the goods receipt posting.

so the data from the goods receipt will fill automatically.

Note: If you wish to demo executing the FI Document function in the goods receipt, you experience a system delay or clocking while the system loads the required FI tables in the system buffer. To avoid this, execute the FI Document function before the demo. 6.

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Select the PO data tab.


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7.

Select the History icon within the PO data tab. Explain the PO history update.

8.

Select the WK tab. Point out the storage location, the plant, and the movement type.

Demonstration: Maintain Favorites list Purpose You may want to demo adding the MIGO receiving transaction to the favorites list.

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Exercise 6: Goods Receipts Basics Exercise Duration: Minutes

Exercise Objectives After completing this exercise, you will be able to: • Check that the purchase order was updated as a result of the goods receipt • Enter goods receipts for existing purchase orders

Business Example As an employee in the warehouse, you are responsible for entering goods receipts in the R/3 System. You enter the goods receipt with reference to a purchase order so that you can check whether the delivery matches the purchase order. When you enter the goods receipt, the system updates the purchase order history, thus allowing the buyer to get information on the status of the delivery directly from the purchase order document.






Task 1: Post the Goods Receipt Use the warehouse composite role LO020_Goods_Receipt for the tasks below. When you use this role, the system provides only the menu entries needed for Inventory Management. 1.

The standard taillights you ordered for the Hamburg plant are delivered complete and undamaged. Post the goods receipt with reference to the purchase order you created in the last exercise 450000####. Post the purchase order into unrestriced-use stock into storage location 0001.


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Using the delivery note provided, enter the delivery note number LS-A1##, post the goods receipt, and write down the material document number. Field:

Data:

Material Document Number

Figure 35:

Task 2: Display the Material Document Hint: You can display the material documents from the same transaction (MIGO) as you can post a goods issue by changing the pull-down default to display. 1.

Display the material document created as a result of the goods receipt.

Task 3: Display the Purchase Order History 1.

Using the same display material document function from Task 2, display the purchase order history resulting from the goods receipt. Write down the quantity received and the value resulting from the receipt.


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Task 4: Maintain a List of Favorites 1.

Add the goods receipt transaction MIGO to your list of favorites. Note: The formatted text within your favorites list will vary depending on the procedure you choose to populate your favorites list.

2.

Change the description of the goods receipt transaction within your favorites list to read Goods Receipt.


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Since you work with several groups within the SAP system, you need access to the Main SAP Easy Access menu. Leave the LO020_Goods Receipt menu and return to the Main SAP Easy Access menu.


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Solution 6: Goods Receipts Basics Task 1: Post the Goods Receipt Use the warehouse composite role LO020_Goods_Receipt for the tasks below. When you use this role, the system provides only the menu entries needed for Inventory Management. 1.

The standard taillights you ordered for the Hamburg plant are delivered complete and undamaged. Post the goods receipt with reference to the purchase order you created in the last exercise 450000####. Post the purchase order into unrestriced-use stock into storage location 0001. Using the delivery note provided, enter the delivery note number LS-A1##, post the goods receipt, and write down the material document number. Field:

Data:

Material Document Number


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Figure 36:

a) b) c)

Select the Other menu button from the Applications toolbar, and Select LO020_Goods_Receipt from the role menus list. Select LO020_Goods_Receipt → Goods Movement (MIGO). Type the purchase order number you created in the prior exercise (450000####) in the purchase order number field. Hint: Your cursor will already be in the correct field by system default. The field will be highlighted in yellow.

d) e)

f) g) h)

Select the Green Check Mark from the Options toolbar. Type the delivery note number provided from the delivery note: Field:

Data:

Delivery note

LS-A1##

Enter a check mark in the Item OK field located at the bottom of the Goods receipt screen. Save icon from the Save your goods posting by selecting the Options toolbar. Make note of your material document number.


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Task 2: Display the Material Document Hint: You can display the material documents from the same transaction (MIGO) as you can post a goods issue by changing the pull-down default to display. 1.

Display the material document created as a result of the goods receipt. a) b)

Select LO020_Goods_Receipt → Goods Movement (MIGO). Select the Goods receipt pull-down within the goods receipt transaction. Click on goods receipt. Hint: The pull-down is located just below the Hold icon on the Applications toolbar.

c)

Using the Scroll bar within the pull-down, scroll up until you find Display and click on display. Note: The system will display the number of the last material document in the material document number field.

d)

Verify that the material document number in the material document field is the same document number created in Task 1. Select the Green Check Mark from the Options toolbar.


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Task 3: Display the Purchase Order History 1.

Using the same display material document function from Task 2, display the purchase order history resulting from the goods receipt. Write down the quantity received and the value resulting from the receipt. a) b)

c)

Select LO020_Goods_Receipt → Goods Movement (MIGO). Select the Goods receipt pull-down within the goods receipt transaction by moving your mouse into the field and clicking the left mouse button once. Using the Scroll bar within the pull-down, scroll up until you find Display and click on display. Note: The system will display the number of the last material document in the material document number field.

d) e) f) g)

Select the PO Data tab within the Detail Data section of the goods receipt. Select the History icon located within the PO Data tab. Click on the icon. Note the quantity and value. Select the Cancel button in the dialog box to return to the goods receipt screen.


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Add the goods receipt transaction MIGO to your list of favorites. Note: The formatted text within your favorites list will vary depending on the procedure you choose to populate your favorites list. a)

2.


Drag and Drop: Select the goods receipt transaction. Holding the left mouse button down, drag the transaction up and into the Favorites folder.

•

Right mouse click: Select the goods receipt transaction. Click the right mouse button. Select add to favorites.

•

Using the add to favorites icon: Select the goods receipt transaction. Select the Add to favorites icon from the Applications toolbar. Click on the icon to move the transaction into the favorites list.

•

Using the Menu Bar: Select the goods receipt transaction. Select Favorites/Add from the menu bar.

Change the description of the goods receipt transaction within your favorites list to read Goods Receipt. a) b) c)

Select the goods receipt transaction. Select the Change Favorites icon from the Applications toolbar. A text dialog box will open. Enter the new name of your goods receipt in the Text field. Green Check Mark within the dialog box. Select the


Since you work with several groups within the SAP system, you need access to the Main SAP Easy Access menu. Leave the LO020_Goods Receipt menu and return to the Main SAP Easy Access menu. a)

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Lesson Summary You should now be able to: • Explain the purpose and function of a goods receipt and its relationship to goods movement • List the most important effects of a goods receipt for a purchase order in the R/3 System • Post a goods receipt with reference to a purchase order • Explain and demonstrate the document concept at goods receipt

Related Information For more detailed information on movement types, refer to the Implementation Guide: Tools → AcceleratedSAP → Customizing → SPRO - Edit Project → SAP Reference IMG → Materials Management → Inventory Management and Physical Inventory → Movement Types → Copy, Change Movement Types. Choose the IMG activity document icon. http://help.sap.com

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Lesson: 84

LO020

Invoice Verification Basics Lesson Duration: 45 Minutes

Lesson Overview In this lesson you will learn the basic process for posting an invoice verification and the effects of the posting on other R/3 documents.


Explain and demonstrate the use of Logistics Invoice Verification (LIV) to post a vendor invoice Explain the effects of Logistics Invoice Verification (LIV) on the purchase order

This lesson should give the participants a basic understanding of the Logistics Invoice Verification process. Logistics Invoice Verification was developed to take into account requirements that were technically not possible in the conventional Invoice Verification component, such as distributing MM and FI to separate systems. Logistics Invoice Verification is closely integrated with Financial Accounting (FI) and Controlling (CO). It passes on the relevant information about payments or invoice analyses to these components. In Materials Management, Logistics Invoice Verification has the following features: • • •

It completes the material procurement process, which started with the purchase requisition and resulted in a goods receipt. It allows invoices that do not originate in materials procurement (such as services, expenses, course costs) to be processed. It allows credit memos to be processed, either as invoice reversals or return deliveries.

The process step of verifying an invoice can be replaced with the Evaluated Receipt Settlement (ERS). Introduce the idea of ERS here, ERS is discussed in detail in a later lesson.

Business Example The final step in a typical procurement process is to enter the vendor invoices for the material. In doing so, you check the invoiced items against the purchase order and the goods receipt.

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Lesson: Invoice Verification Basics

Hint: Often participants might not understand why invoice verification is part of MM. You may want to discuss this concept.

Invoice Processing In Logistics Invoice Verification – as in other applications – the SAP system often needs to retrieve stored data at many points, change this data where necessary, or add new information. Depending on the type of information, the data in the SAP system is stored in different master records, such as the material master record or the vendor master record. This central data storage function avoids redundant data and ensures that different departments use the most up-to-date information from various functions (Material Requirements Planning, Purchasing, Inventory Management, Quality Management, Logistics Invoice Verification, and so on). The important data for Invoice Verification is: master data and transaction data. Discuss the importance of each kind of data required to post an invoice verification.

Figure 37: Invoice Processing

Logistics Invoice Verification is a part of Materials Management (MM). It is situated at the end of the logistics supply chain that includes Purchasing, Inventory Management, and Invoice Verification. In Logistics Invoice

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Verification incoming invoices are verified in terms of content, prices, and arithmetic. When the invoice is posted, the invoice data is saved in the system. The system updates the data saved in the invoice documents in Materials Management and Financial Accounting. In Materials Management, the procurement process is concluded by the invoice verification process, during which invoices and credit memos are entered and the contents and prices are checked for accuracy. However, payment and evaluation of invoices is not part of Invoice Verification; the appropriate information for these tasks is passed on to other departments. Invoice Verification therefore creates a link between Materials Management and external or internal accounting. When you enter an invoice with reference to a purchase order, the system suggests data from the purchase order and the goods receipts for the purchase order (for example, vendor, material, quantity still to be invoiced, terms of payment, and so on). In Logistics Invoice Verification – as in other applications – the SAP system often needs to retrieve stored data at many points, change this data where necessary, or add new information. Depending on the type of information, the data in the SAP system is stored in different master records, such as the material master record or the vendor master record. This central data storage function avoids redundant data and ensures that the different departments use the most up-to-date information from various functions (Material Requirements Planning, Purchasing, Inventory Management, Quality Management, Logistics Invoice Verification, and so on). The important data for Invoice Verification is: master data and transaction data. Master data includes: •

•

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Material data: Information on the materials bought by or produced in the company. This includes the material number, material name, units of measure, stock data, overdelivery and underdelivery tolerances, reminder keys, price control data, and prices. Different departments in Materials Management maintain material data. Vendor data: Information on the suppliers that a company deals with. Vendor data includes the address, bank data, possibly also the name of the bank head office, the currency of the vendor, as well as the terms of payment and terms of delivery. The Purchasing department and Accounting department maintain vendor data.


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Transaction data includes: •

•

•

Purchasing document: A purchasing document contains information such as the vendor number, the purchase order date, the terms of delivery, the material number, and the order quantity. Material document: A material document is created when a goods receipt is posted. It includes the posting date, the quantity delivered, and perhaps also the delivery note number and the purchase order number that the goods receipt refers to. It documents the quantity-based changes. Accounting document: An accounting document is created when a goods receipt (unless the goods receipt is not valuated) or an invoice is posted. It contains details of the individual posting with the account number, posting key, and the amount. It documents the value-based changes.

If there are discrepancies between the purchase order or goods receipt and the invoice, the system warns the user, and depending on how the system is configured, blocks the invoice for payment. The posting of the invoice completes the invoice verification process. The system updates the purchase order history and Financial Accounting initiates payment for the open invoice items. Invoice Verification creates a link between Materials Management and external or internal accounting.

Information in an Invoice An invoice document from an invoicing party contains the payments to be made based on business transactions performed in Purchasing and Inventory Management. An invoice contains various information, such as: • • •

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Who issued the invoice? See the Vendor master record. Which transaction does the invoice refer to? See the Purchase order number. How much tax do you have to pay? Such as on training (1I).


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One of the basic questions is the invoice reference, which enables you to clearly allocate the invoice to a business transaction. If such a reference exists, the system uses information that it already has and proposes the appropriate values when verifying the invoice, for example: • • •

Agreed terms of payment pulled from the vendor master record. Quantities to be invoiced pulled from the goods receipt documents. Amounts expected for each item pulled from the purchase order documents.

Figure 38: Information in an Invoice

In Invoice Verification, you enter all the relevant data for the vendor invoice (for example; gross amount, tax, invoice date). The system checks this data in subsequent processing steps and compares it with data that already exists in the system, such as the purchase order document and the goods receipt document. The invoice document can be optically archived and sent via workflow to the department responsible for invoice verification. This is an important step towards realization of the paperless office. The Logistics Invoice Verification interface has been reduced to a single screen. Features of the Logistics Invoice Verification screen include: Transaction, Header Data, Balance, Allocation, Vendor Data, Invoice items, and Messages.

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Figure 39: Parts of the LIV entry screen

Invoice Verification with Reference to PO Where possible, invoices should be posted with reference to a purchase order. The advantage of this procedure is that the system suggests the order prices from the order document and the goods receipt quantities from the GR documents for the purchase order.

Figure 40: Invoice Verification with Reference to PO

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You can also assign the invoice items to a purchase order using the number of the delivery note or bill of lading, provided that these numbers were entered at goods receipt. The new Logistics Invoice Verification screens allow you to determine the type of invoice based in the transaction. You choose whether the transaction is an invoice, a credit memo, or a subsequent debit or credit.

Reference to Purchase Order In this part of the lesson, discuss the effects of goods receipt-based invoice verification. The buyer can decide at the time of order if an item level requires an activated goods receipt-based Invoice Verification or not. If goods receipt-based Invoice Verification is active for a particular order item, each invoice item can then be matched up uniquely with the goods receipt item. It makes sense to work with goods receipt-based Invoice Verification when you expect a delivery to be made and posted in several parts. The effect of goods receipt-based Invoice Verification on Invoice Allocation (if an allocation was made via purchase order) is an item that is created on the item list for every goods receipt for the order item. If several goods receipts were posted for one purchase order item, the same purchase order item appears more than once on the item list. You may choose to discuss this with the students: In goods receipt-based (GR-based) invoice verification, the invoice relates not to the purchase order, but to individual deliveries. That is to say, the reference document for the invoice is not the PO but the delivery note or the goods receipt document. Whether you use this approach depends on your billing arrangement with the vendor. This method can be advantageous, for example, when you know the order will be fulfilled by means of many partial deliveries. Prerequisites: Before you can use GR-based invoice verification, the following prerequisites must be satisfied: •

•

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The indicator for GR-based invoice verification (GR-based IV) must be selected for the relevant item in the purchase order (item detail screen). A goods receipt must occur before the invoice is entered in the system.


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Figure 41: Reference to Purchase Order

If the indicator for goods receipt-based Invoice Verification was not set in the purchase order, the vendor invoice can be entered before or after the goods are received. If the invoice is entered with reference to a purchase order, only the amount that has already been delivered but not yet invoiced appears on the selection screen as the default value if you are working with standard settings. You can overwrite the default value and consequently settle the entire purchase order quantity when partial deliveries have been received. The system automatically blocks the invoice for payment if tolerances defined in the system are exceeded (for example, if the invoice price varies greatly from the purchase order price). With goods receipt-based Invoice Verification, invoice entry is based on the goods receipts. If you have entered several partial deliveries for an order item, the system displays them as separate invoice items. Invoices for quantities greater than the goods receipt quantity cannot be posted. You must set this type of Invoice Verification in the purchase order.

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Figure 42: The LIV entry screen

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Logistics Invoice Verification 1.

Enter the Header Data. Select Logistics → Materials Management → Logistics Invoice Verification → Document Entry → Enter Invoice.

2.

Enter the required document header data on the tab pages listed below: •

•

• •

•

• •

Basic data: On this tab page, you enter information such as the document date, the posting date, the gross invoice amount, and the tax information. Payment: On this tab page, you enter information such as the baseline date for payment, the terms of payment, and the bank details. Details: On this tab page, you enter information such as unplanned delivery costs and a different invoicing party. Tax: On this tab page, you enter information such as the tax amounts and the tax code or you select Calculate tax. If you select Calculate tax, the system calculates the tax amount based on the tax codes in the invoice items. Contacts: After you have allocated the invoice, the system determines the processors of (or who performed) the business transactions that have taken place so far. Note: On this tab page, you can enter a memo that could be useful for further processing of the invoice. Amount split: You can divide up the final amount of an invoice or credit memo here, for example, according to different payment methods or terms of payment. If you have entered a payment method here, this entry takes priority over the payment method in the terms of payment. Maintain the settings for amount splitting in the Implementation Guide (IMG) for Financial Accounting under the Financial Accounting Global Settings → Company Code → Enter Global Parameters.

3.

Enter the Allocation data. In this screen area, you allocate a purchasing transaction to the invoice so the system suggests the invoice items to be processed.

4.

. The system proposes the default data from the Select the purchase order and the purchase order history. The system updates the purchase order history when you post the invoice.

5.

Verify that the balance area has a green light . In this screen area, the system displays the document balance and the corresponding invoice status, for example, if an invoice can be posted. Continued on next page

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The traffic light icon beside the Balance field shows whether the invoice document can be posted. •

Red — The invoice document contains errors and cannot be posted.

•

Yellow — The invoice document is correct, but is blocked for payment.

•

Green — The invoice document is correct and is posted.

•

Choose the Post

icon.

Note: You can display the Help beside the application. Help contains instructions and short explanations of the user interface for the applications Enter Invoice, Park Invoice, Enter Invoice for Invoice Verification in the Background, and the Invoice Overview. Use Help to familiarize yourself with the layout of the user interface. It explains the following elements of the user interface: • • • •

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Screen areas Application toolbar buttons Menu functions More functions in Logistics Invoice Verification


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Demonstration: Post a Logistics Invoice Verification Purpose Post the vendor invoice for your material using the Logistics Invoice Verification. Note: Approximate time for Demo is 15 minutes. Note: Use the role menu LO020_INVOICE_VERIFICATION for this demo. Hint: The dollar amounts in this demo depend on the Purchase order used. Before the demo, determine the dollar amount you will be invoicing. Hint: With 4.6C only the Logistics Invoice Verification is left; the “old” Invoice Verification is no longer included in the easy access menu, but is still accessible via transaction code (MR01).

System Data System: Client: User ID: Password: Set up instructions: 1. Select Role LO020_INVOICE_VERIFICATION → MIRO - Enter Invoice. Note: You may have to enter the company code: 1000.

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2.

Enter today’s date.

3.

Enter reference data RE-A##. This is an open text field so you can type any information. What kind of information will depend on the customer’s business processes.

4.

Enter the total amount from the purchase order including the taxes.


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Enter the tax amount or check the calculate tax box. Explain the difference in the choices to the students. Choosing between entering the tax or allowing the system to calculate the tax is a business process decision. Hint: Make sure the Tax entry is 1I (input tax training) and the tax is 10% if you enter the tax amount. You can not enter a tax amount and check the calculate tax box. You must select either entering the tax amount or checking the tax box.

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6.

Enter the purchase order number. This field is located in the center part of the MIRO transaction.

7.

Select the Green check mark

8.

. Select the Simulate Note if the balance field has a green light button from the Applications toolbar. Explain the different postings being made by the system.

9.

Choose the Post the invoice.

icon.

icon in the dialog box to post the verification of


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Exercise 7: Invoice Verification Basics Exercise Duration: Minutes

Exercise Objectives After completing this exercise, you will be able to: • Use Logistics Invoice Verification to enter an invoice and check that it is correct. • Explain the effects of invoice verification on the purchase order data

Business Example In Invoice Verification, you enter the invoice you have received from the vendor. In doing so, you compare the invoice price with the purchase order price, and the invoiced quantity with the quantity already delivered.





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Task 1: Enter the Vendor Invoice Use the Invoice Verification composite role LO020_Invoice_Verification for the exercises below. The system provides the menus relevant to Invoice Verification. The vendor T-K12A## invoices you for the delivery of the standard taillights T-RM1##. Using the Logistics Invoice Verification, enter the invoice with today’s date for Company code 1000. Review the copy of the vendor’s invoice below. Use the information provided on the vendor’s invoice to process the invoice.

Figure 43:

1.

Enter the vendor’s invoice. Compare the invoice price and the invoice quantity with the data the system proposes from the purchase order and goods receipt. Write down the invoice document number. Field:

Data:

Invoice Document Number


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Task 2: Display the Invoice Document 1.

Display the invoice document created as a result of posting the invoice. Analyze the purchase order history. Verify the invoicing has been updated in the history.


Add the Logistics Invoice Verification transaction MIRO to your list of favorites. Note: The formatted text within your favorites list will vary depending on the procedure you choose to populate your favorites list.

2.

Change the description of the invoice transaction within your favorites list to read Logistics Invoice Verification.


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Since you work with several groups within the SAP system, you need access to the Main SAP Easy Access menu. Leave the LO020_Invoice_Verification menu and return to the Main SAP Easy Access menu.


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Solution 7: Invoice Verification Basics Task 1: Enter the Vendor Invoice Use the Invoice Verification composite role LO020_Invoice_Verification for the exercises below. The system provides the menus relevant to Invoice Verification. The vendor T-K12A## invoices you for the delivery of the standard taillights T-RM1##. Using the Logistics Invoice Verification, enter the invoice with today’s date for Company code 1000. Review the copy of the vendor’s invoice below. Use the information provided on the vendor’s invoice to process the invoice.

Figure 44:

1.

Enter the vendor’s invoice. Compare the invoice price and the invoice quantity with the data the system proposes from the purchase order and goods receipt. Write down the invoice document number.


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Data:

Field: Invoice Document Number a)

b) c)

Select the Other Menu button from the Applications toolbar. Select LO020_Invoice_Verification role invoice verification for LO020 from the role list. Select Role LO020_Invoice_Verification → Enter Invoice Type the following information: Field:

Data:

Invoice date

Today’s Date

Reference

RE-A1##

Amount

5500

Tax amount

500

Caution: Verify that the tax type is 1I (input tax (training)10%). If the tax is not 10% change it to 10% before moving on. d)

Type the purchase order number from the prior exercise (450000####) in the purchase order number field. Hint: This field is located in the middle of the screen next to the Purchase order/scheduling agreement field.

e)

f) g) h)

i)

Select the Green Check Mark from the Options toolbar. This will pull in the information from the purchase order and the goods receipt. Verify the information. Verify there is a Green light in the Balance field. Select the Simulate button from the Applications toolbar. A Simulation dialog box will open showing the different General Ledger accounts. Choose the Post button within the dialog box. Note: The Post button is located at the bottom of the dialog box. Note the invoice document created by the system.


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Task 2: Display the Invoice Document 1.

Display the invoice document created as a result of posting the invoice. Analyze the purchase order history. Verify the invoicing has been updated in the history. a) b)

Select LO020_Invoice_Verification → Further Processing → Display Invoice. Type the invoicing document number 51######in the Invoice doc. number field. Type the current year in the Fiscal year field. Hint: The last document number created will display in the Invoice doc. field.

c) d) e)

f)

Select the Green Check Mark from the Options toolbar. Select the Purchase order field. Double click on the purchase order number. Click on the Purchase order history tab within the Item details section of the purchase order. Verify the invoice information was updated in the history of the purchase order. Select the Green Arrow from the Options toolbar to return to the invoice screen.


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Add the Logistics Invoice Verification transaction MIRO to your list of favorites. Note: The formatted text within your favorites list will vary depending on the procedure you choose to populate your favorites list. a)

2.


Drag and Drop: Select the invoice transaction. Holding the left mouse button down, drag the transaction up and into the Favorites folder.

•

Right mouse click: Select the invoice transaction. Click the right mouse button. Select Add to favorites.

•

Using the add to favorites icon: Select the invoice transaction. Select the Add to favorites icon from the Applications toolbar. Click on the icon to move the transaction into the favorites list.

•

Using the Menu Bar: Select the invoice transaction. Select Favorites /Add from the menu bar.

Change the description of the invoice transaction within your favorites list to read Logistics Invoice Verification. a) b) c)

Select the invoice transaction. Select the Change Favorites icon from the Applications toolbar. A Text dialog box will open. Type the new name of your Logistics Invoice Verification in the Text field. Green Check Mark within the Text dialog box. Select the


Since you work with several groups within the SAP system, you need access to the Main SAP Easy Access menu. Leave the LO020_Invoice_Verification menu and return to the Main SAP Easy Access menu. a)

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Lesson Summary You should now be able to: • Explain and demonstrate the use of Logistics Invoice Verification (LIV) to post a vendor invoice • Explain the effects of Logistics Invoice Verification (LIV) on the purchase order

Related Information Refer to the SAP Library under the topic: Logistics Invoice Verification (MM-IV-LIV) for more detailed information. http://help.sap.com

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Unit Summary

Unit Summary You should now be able to: • List the organizational levels in the R/3 System that are relevant to the procurement process • Explain the relationship between these organizational levels • Identify the basic procurement process • Create and process a purchase order • Display the purchase order and purchase order output • Explain the purpose and function of a goods receipt and its relationship to goods movement • List the most important effects of a goods receipt for a purchase order in the R/3 System • Post a goods receipt with reference to a purchase order • Explain and demonstrate the document concept at goods receipt • Explain and demonstrate the use of Logistics Invoice Verification (LIV) to post a vendor invoice • Explain the effects of Logistics Invoice Verification (LIV) on the purchase order

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Test Your Knowledge

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Test Your Knowledge 1.

Name at least three of the procurement organizational levels.

2.

You can set up several company codes in one client. Determine whether this statement is true or false.

□ □ 3.

True False

Physical inventory is carried out at the organizational level. Fill in the blanks to complete the sentence.

4.

A plant can be one of the following types of locations: Choose the correct answer(s).

□ □ □ □ □ 5.

A B C D E

Central delivery warehouse Regional sales office Manufacturing facility Corporate headquarters All of the above

Can you create purchase orders with reference to a purchase requisition? Determine whether this statement is true or false.

□ □ 6.

True False

A supply goods or services.

is a formal request to a vendor to

Fill in the blanks to complete the sentence.

7.

and are two ways the R/3 System allows for the purchase order to be output or issued. Fill in the blanks to complete the sentence.

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When a goods receipt is posted with reference to a purchase order, the purchase order history is updated at the time of receiving. Determine whether this statement is true or false.

□ □ 9.

True False

The plays a central role in automatic account determination in the R/3 System. Fill in the blanks to complete the sentence.

10. When you post a goods receipt for a valuated material, what two types of documents are created in the R/3 System?

11. When you enter an invoice with reference to a purchase order, the system suggests data from the and . the Fill in the blanks to complete the sentence.

12. The system can not display partial deliveries as separate invoice items. Determine whether this statement is true or false.

□ □

True False

13. Whenever possible, invoices should be posted with reference to purchase orders. Determine whether this statement is true or false.

□ □

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True False


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Answers 1.

Name at least three of the procurement organizational levels. Answer: The client, the company code, the plant, the storage location, and the purchasing organization are all considered to be procurement organizational levels.

2.

You can set up several company codes in one client. Answer: True Since the company code is the smallest organizational unit for which you can have independent accounting, you can have more than one company code in a client.

3.

Physical inventory is carried out at the storage location organizational level. Answer: storage location The storage location is an organizational unit that allows the differentiation of material stocks within a plant. The physical inventory is carried out at the storage location level.

4.

A plant can be one of the following types of locations: Answer: E The plant is the organizational level unit in which materials planning takes place; therefore, a plant can be any location were planning for materials takes place.

5.

Can you create purchase orders with reference to a purchase requisition? Answer: True You can create purchase orders with reference to purchase requisitions as well as with reference to a request for quotation and an another purchase order. You can determine which document types are allowed as reference to other document types in the Implementation Guide (IMG).

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A purchase order is a formal request to a vendor to supply goods or services. Answer: purchase order A purchase order is a formal request for the purchase of goods or services. The purchase order can be used for a variety of procurement purposes. You can procure materials for direct consumption or for stock. You can also procure services. The purchase order can detail the quantities requested, the delivery dates, the shipping method, and the pricing conditions.

7.

Printing and EDI are two ways the R/3 System allows for the purchase order to be output or issued. Answer: Printing, EDI There are several methods you can use to output or issue a purchase order document: printer, telefax, EDI, or E-mail. The automatic issuing message types should be configured in the Implementation Guide.

8.

When a goods receipt is posted with reference to a purchase order, the purchase order history is updated at the time of receiving. Answer: True The purchase order history for a purchase order item is updated when a goods receipt is posted with reference to a purchase order.

9.

The Movement type plays a central role in automatic account determination in the R/3 System. Answer: Movement type Together with other influencing factors, the movement type determines which stock or consumption accounts are updated in Financial Accounting.

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10. When you post a goods receipt for a valuated material, what two types of documents are created in the R/3 System? Answer: When you post a goods receipt to the warehouse, the system creates a material document containing information such as the material delivered and the quantity delivered. In transactions relevant for material valuation, the system creates at least one accounting document, which records the effects of the goods movement on the value of the stock. 11. When you enter an invoice with reference to a purchase order, the system suggests data from the purchase order and the goods receipt. Answer: purchase order, goods receipt When you enter an invoice with reference to a purchase order the system suggests data (for example; vendor, material, quantity, term of payment). This data is derived from the purchase order and the goods receipt documents. 12. The system can not display partial deliveries as separate invoice items. Answer: False If you have entered several partial deliveries for an order item, the system will display them as separate invoice items. 13. Whenever possible, invoices should be posted with reference to purchase orders. Answer: True The advantage of posting invoices with reference to a purchase order is the system suggests the order prices from the order document and the goods receipt quantities from the GR documents for the purchase order.

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Unit 3 Master Data

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Even though the purchasing info record is not introduced in this unit, one slide shows it along with the material master and the vendor master. Be prepared to talk about it briefly (perhaps as a record of the relationship between a specific material and a specific vendor in order to set up unique pricing.) More detail comes in later units.

Unit Overview The focus of this unit will be the maintenance of the material and vendor masters, with emphasis on the impact of organizational levels on the individual records.

Unit Objectives After completing this unit, you will be able to: • • • • • •

Explain the significance of the material master Create and maintain material master records Explain the impact of organizational levels on material masters Create and maintain a vendor master record Explain the impact of organizational levels on vendor masters Explain the concept of partner roles in the vendor master

Unit Contents Lesson: Material Master Records ............................................139 Procedure: Create Material Master ......................................152 Procedure: Displaying a Material Master Record ......................153 Procedure: Changing a Material Master Record ......................154 Demonstration: Create Material Master .................................154 Demonstration: Display Material Master ................................157 Procedure: Extending Material Master Records .......................160 Demonstration: Extend Material Master by adding a new view ......160 Demonstration: Extend the Material Master to a New Plant ..........162

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Demonstration: Change accounting view for plant 1200 ..............163 Demonstration: Display Change Documents for Material .............164 Demonstration: Enter Material Data for Several Storage Locations .167 Demonstration: Materials List.............................................168 Exercise 8: Create Material Master ......................................169 Lesson: Vendor Master Records..............................................187 Procedure: Create Vendor Master Record ..............................197 Procedure: Change Vendor Master Record ............................199 Procedure: Display List of Vendors .....................................200 Demonstration: Create Vendor Master ..................................201 Demonstration: Change Vendor Master .................................203 Exercise 9: Create Vendor Master Record..............................205

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Lesson: 110

Lesson: Material Master Records

Material Master Records Lesson Duration: 2 Hours

Lesson Overview In this lesson you will obtain an understanding of the basic material master structure.


Explain the significance of the material master Create and maintain material master records Explain the impact of organizational levels on material masters

It is important that the students understand the organizational levels in R/3. You might want to create a basic organizational structure the board as a reference while discussing the material master record: client/company code/plant. This unit aims to inform about the master data relevant to the procurement process and used in the documents for procurement.

Business Example Your company has decentralized responsibilities affecting the material master. You need to add and maintain records for a new material.

Master Data in the Procurement Process The material master and vendor master records are important master data in the procurement process. Without these you would not be able to procure stock material. Information from the master records appear as default values in the purchasing documents. Also, depending on the info update key, they can be used to create purchasing info records in order to store information on vendor-material combinations, for example, conditions for a certain material from a certain vendor. The concept of info records will be discussed in another unit in more detail. Introduce the info record here as master data allowing the system to join the material master record and the vendor master record. Without

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an info record or another reference document, the system will not display a default price into the purchase order. The system will not pull the price from the material master record for use in the purchase order. Note: There are other types of master data within the procurement process. For example: Source list, Quota arrangement, Conditions and Vendor evaluation. Source list will be discussed in another lesson.

Figure 45: Master Data in the Procurement Process

Master data contains data records that are stored in the database for a long period of time. These are stored centrally and used and processed on a cross-application basis. This prevents the multiple storage (redundancy) of data. The material master record and vendor master record are the most important master data in the procurement process. When you create purchasing documents, the R/3 System facilitates data entry by copying the data from existing master records as default values into the purchasing documents. The R/3 System also copies data such as units of measure and material short texts from the material master record. The data in the vendor master record includes addresses and payment data. You can store data for a particular material (for example, delivery time and purchase price) on a vendor basis in info records.

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Info record is short for information record. You use an info record if you want to store information on a vendor and a material as master data at purchasing organization or plant level. The info record contains concise information about a vendor and a material that Purchasing already procures from that vendor. An info record thus represents a material-vendor relationship. For example, the info record indicates the units of measure in which materials are ordered from the vendor and the applicable reminder levels. It also shows price changes affecting the material in question. This information can be useful in the process of evaluating quotations to determine the successful bidder.

Material Master Data Material master data contains information on the materials the company uses. Each department, based on the customer’s business process, can be responsible for maintaining its own view, thus preventing data redundancy. Material master maintenance can also be centralized. Each user department in the company is interested in different data in the material master and is responsible for maintaining it. However, each view of the material master record can contain data at various organizational levels. Note: This slide is a combination of two former slides, Material Master and Material Master Views. Explain the different views and the kind of data populated in each. Ask the students to give examples of what kinds of data they think is held in each view. The basic data view is a required view. The system will not allow you to setup a material master record without basic data.

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Figure 46: Material Master Data

The material master record is a company’s main source of material-specific data. It is used by all components in the R/3 Logistics system. The integration of all material data in a single database object prevents the problem of data redundancy. The Material Master in the R/3 System consists of a number of components that are completely integrated with one another. This integration allows the various departments and units of an enterprise to share and maintain the same information. The views within the Material Master record allow the integration of the material master record in the various departments. The data contained in the material master record is required for many functions within the R/3 Logistics system, for example: • • • •

Purchasing data for ordering Inventory management data for posting goods movements and managing physical inventory Accounting data for material valuation MRP data for Material Requirements Planning

Since materials are processed by various user departments within a company and each department stores different information for the materials, the material master is subdivided into information grouped by user departments. Each user department has a different view of the material master record and is responsible for maintaining the data to support its function.

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The data maintained within a view may be valid for more than one organizational level.

Material Master: Organizational Levels Explain how the material master is organized. Its structure ensures the material master can be managed centrally, thus preventing multiple storage of data. Company information or basic data is held at a client level. Changes made to this kind of data will effect all the users within a client. Plant and storage level data will depend on the views selected for population within the material.

Figure 47: Material Master: Organizational Levels

Some material data is valid for all organizational levels, while some is valid for certain levels only. The material master is designed to reflect the structure of your enterprise so you can manage the material data in your enterprise centrally, without overloading your datasets with redundant information. Data at client level: General material data that is valid for the whole company is stored at client level. Data at plant level: All data that is valid within a plant, and for all storage locations in it, is stored at plant level. Data at storage location level: All data that is valid for a particular storage location is stored at storage location level.

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Maintaining a Material Master Record: Screens Explain the data required in each dialog box during the creation of a material master. Note the views chosen from the first dialog box will dictate the data requested in the second dialog box. It is possible to customize the look of the material master record in the IMG. The system can be set to default required organizational level data as well as required views. These defaults can be set at the user level.

Figure 48: Maintaining a Material Master Record: Screens

When editing material master data, you go through a number of screens. From the initial screen, you go to two successive dialog boxes. In the first dialog box, you specify the views you want to process. In the second, you specify the relevant organizational levels. You then go to the data screens. You can change the standard screen sequence by changing the default values. Some screens are not integrated in the standard screen sequence. You can access these screens only by specifically choosing them from the menu bar.

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Figure 49: The Select Views dialog box

Material Type The material type is a key element of the material master record. It determines a variety of attributes of the material master record. Discuss with the class each area determined by the material type. Material types can be customized in the IMG. Often customers will customize raw material (ROH) to allow for Sales views. Write several material types on the board and discuss how each one is used in the system. Ask the class which views they think will be proposed for each material type. Material types can aid users in reporting. A material master record can not be created without a material type. Once a material master record is created changing the material type is very difficult.

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Figure 50: Material Type

You can assign materials with the same characteristics to the same material type. Material types include raw materials, semi-finished products, and finished products, for example. The material type controls: • • • • • •

The type of number assignment (internal or external) Whether the material is intended for a specific purpose, for example, as a configurable material or process material The permitted number range interval Which screens are displayed and in which order Which user-department-specific data (view) is suggested for entry Which procurement type is permitted for a material; that is, whether the material is produced in-house, procured externally, or whether both options are allowed

Along with the plant, the material type determines a material’s inventory management requirement; that is, whether the system updates quantity changes in the material master record or updates changes in value in the stock accounts in Financial Accounting. The material type also determines which accounts are posted when a material is posted to stock or leaves the warehouse. Various material types are provided in the standard SAP R/3 System. If your company needs additional material types, you can define these in Customizing according to your requirements.

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Among others, the standard R/3 System comes with the following material types. The ID used to identify the material type internally appears in parentheses. It is sometimes necessary to know this ID, for example, when defining the attributes of material types. •

• •

•

•

Finished products (FERT): 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. Nonvaluated materials (UNBW): Nonvaluated materials are managed on a quantity basis, but not by value. 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. Raw materials (ROH): 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. Trading goods (HAWA): Trading goods are always procured externally and then sold. A material master record of this material type can contain purchasing data and sales data.

SAP recommends using internal number assignment. Since you can use matchcodes to select materials according to any desired criteria, it is not normally necessary to use a mnemonic external number. However, external number assignment can be advantageous if you want to use your materials not only in the SAP R/3 System.

Industry Sector The industry sectors can be customized in the IMG. They can determine the screens displayed to a user as well as the required fields. Industry sectors can be used in reporting of materials.

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Figure 51: Industry Sector

Like the material type, the industry sector has a control function in the R/3 System. When you create a material master record, the industry sector defines: • •

Which screens are displayed and in which order Which industry-specific fields are displayed on each screen

The industry sector you assign to a material cannot be changed later. In Customizing, you can define new industry sectors and maintain the field reference for field selection control according to your company-specific requirements. The industry sector groups together companies according to their activities (for example, plant engineering and construction, mechanical engineering, the chemical industry, and the pharmaceutical industry). The standard SAP R/3 System comes, for example, with the following industry sectors: • • • •

A for plant engineering and construction C for the chemical industry M for mechanical engineering P for pharmaceuticals

You can change the name of the industry sector (plant engineering and construction, and so on) and, if necessary, the field input control too (via the field reference).

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Figure 52: Create Material Master: Initial screen

Data Screens in Material Master Maintenance In the initial level of the material master record, the user enters the material master number, the material type, and the industry sector. These are required fields. Dialog boxes in the initial level require selection of views and population of organizational data. The views selected determine the tabs displayed in the main work area. The main work area is where departmental information is stored. Each department, depending on the type of material master, populates data related to their department’s needs, for example, sales tax data. In the additional data level, data related to the material master at a client level is populated, for example, material descriptions in alternative languages. Data in the additional data level can be used by all users within a client.

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Figure 53: Data Screens in Material Master Maintenance

The data screens used in processing material master records can be subdivided into the following types of screens: • •

Main work level: These screens are for each user department, such as basic data, materials planning, and so on. Additional data level: These screens are used to maintain additional information, such as units of measure, material descriptions, consumption values, and forecasting data.

Most data in the material master record can be maintained directly by the user. But some information is automatically updated by the system. When you enter goods movements, for example, the system updates the stock and consumption data. Via the Information on material icon, you can call up statistical information (for example, the date on which the data was first created and when it was last changed). Some data in the material master is used for information purposes only (for example, description, size, and dimensions). Other types of material data have a controlling function in an application. For example, the MRP type controls the MRP procedure, and the price control indicator determines which material valuation procedure is used.

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Figure 54: Example of the additional data level: Units of measure tab

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Create Material Master 1.

Before creating a material master record, you need the following information: the material type and industry sector; the units of measure, such as the base unit (stockkeeping unit) and the order unit; the purchasing group (buyer group) responsible for the material Accounting data, such as the valuation class, price control, and standard or moving average price.

2.

Choose Logistics → Materials Management → Material Master → Material → Create (general) → Immediately.

3.

Enter the material, industry sector, and material type in the dialog box: Material: 001; Industry sector: mechanical engineering; Material type: finished product. Caution: Make sure that the industry sector and material type you enter are known in the receiving system. Otherwise, errors will occur when you post the material in the receiving system.

152

4.

Choose Select view and then within the dialog box choose the requested/required views.

5.

Enter the data required for your material master in the appropriate view, for examply, on the Basic data view enter material short text, material description, base unit of measure, and material group.

6.

Save

the material.


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Displaying a Material Master Record 1.

Choose Logistics → Materials management → Material Master → Material → Display → Display current.

2.

Enter the material number in the Material field. If you do not know the material number, use the Possible entries F4 function to search for the desired material via matchcode.

3.

Select the

4.

Select the views you wish to display.

5.

Select the box.

6.

Enter the required organizational levels.

7.

Choose the dialog box.

8.

The requested data will display.

Green Check Mark.

Green Check Mark located within the Select View(s) dialog

Green Check Mark located within the organizational level

Note: You can also display a material master record from the item overview of any purchasing document. To do so, choose Environment → Material from the menu bar.

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Changing a Material Master Record 1.

When you change a material master record, the system records the change, the name of the user, and the time of the change. This provides an audit trail of changes to material master records.

2.

Choose Logistics → Materials Management → Material Master → Material → Change.

3.

Enter the material number in the Material field.

4.

Select the

5.

Select the views you wish to change.

6.

Select the box.

7.

Enter the required organizational levels.

8.


9.

Make the required change(s) to the view(s) selected.

Green Check Mark.



10. Save your material master record by selecting the Save the Options toolbar.

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Demonstration: Create Material Master Purpose Note: This demo takes approximately 20 minutes. You will use this material master in the next Unit. The purpose of this demo is to create a new material master record and to explain the relationship between each tabbed area to the organizational levels within R/3. Remind the students that they can use the F1 function if they do not know the meaning of a field. Students need to complete the exercise for use in another lesson.

System Data System: Client: User ID: Password: Set up instructions:

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1.

Create a material master record. Select Logistics → Materials Management → Material Master → Material → Create (general) → Immediately. Explain the difference in the menu paths Create (special) and Create (general). Note: You will be extending the material master into the Accounting view in the next Demo so be sure not to set up the Accounting view in the demo. As you are setting up the material master, explain to the students each tab and what organizational level it affects.

2.

Enter the following information on the Initial Screen: Initial screen Field:

Data:

Material:

T-RM2##

Industry Sector:

Mechanical Engineering

Material Type:

Raw Material

This data is held at a client level. Changes to this area will affect all users within a client. 3.

Choose the Select View(s) button from the Applications toolbar and select following material master views: Basic Data 1, Purchasing, Purchase Order Text, and General Plant Data/Storage 1.

4.

Select the box.

5.

Fill in the following organizational levels:


Organizational Levels Field:

Data:

Plant

1000 (Hamburg)

Stor. location

0001 (Materiallager)

6.



7.

Select the Basic data 1 tab. Enter the following basic data:

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Field:

Data:

Material T-RM2## Description

headlamp extra bright-##

Base unit of measure

PC (piece(s))

Material group

003 (bulbs)

Gross weight

4

Net weight

3.8

Weight unit

kg kilogram

Explain to students that fields in the material master record can be configured in the IMG to be required. Data in this tab is held at the client level. 8.

Select the Additional data button from the Applications toolbar.

9.

Select the Description tab. Enter the following within the Language table: Field:

Data:

Language

DE (German)

Material description

headlamp extra bright-## German

Explain the other additional data tabs in this area. Point out the Units of Measure. Explain the material master record can have alternative units of measure. If you use this function, the goods receipt clerk can receive messages for alternative units during the time of receipt. 10. Select the Main data button from the Applications toolbar to go back to the Basic data tab. 11. Select the Purchasing tab. Enter the following purchasing information: Field:

Data:

Purchasing group

T##

Purchasing value key

1

Hint: Enter through the warning messages about the Purchasing value key. Check the data for the purchasing value key by choosing Enter.

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Field:

Data:

GR processing time

1 day

Data within this tab is held at the plant level. 12. Select the Purchase order text tab. Enter the following text in the open text area: The delivered material must meet our technical specification number 65432.

Hint: This tab requires you to select the Green Check Mark from the Options toolbar to leave the table. The text will copy into other related R/3 documents. 13. Select the Plant data/stor.1 tab. Enter the following information: Field:

Data:

Storage bin

BL-01

Point out that the system uses bins only if you are using Warehouse Management in R/3. Also, explain that you do not have to enter the storage location here because you defined it as part of the organizational structure. 14. Save your material master record by selecting the Save the Options toolbar.

icon from

Demonstration: Display Material Master Purpose To display the material master record and verify data integrity Note: This demo takes approximately 10 minutes.

System Data System: Client: User ID:

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Password: Set up instructions: 1. Select Logistics → Materials Management → Material Master → Material → Display → Display Current. 2.

Select Select View(s) button from the Applications toolbar. Explain why the system proposed more views then originally created.

3.

Select the views created in the create material master demo. Basic Data 1, Purchasing, Purchase Order Text, and General Plant Data/Storage 1. Point out the icon on each tab showing the user they selected the tab from the organization dialog box.

Extending the Material Master Record: Example The idea of having to extend a material master record is often a difficult concept for the students to understand. Extending a material master record requires the user to create the new data. Students often want to change the material master record. Explain why the R/3 System requires the user to create new data when extending a material master record. You extend a material master record in the following cases: •

•

If a material master record exists for a particular material, but the master data for your user department is missing. In this case, you extend the material master record. If a material master record exists for a particular material and the master data for your user department has been entered, but not at the appropriate organizational level (for example, if it has been entered for a different plant). In this case, you extend the material master record.

How you extend a material master record will determine the kind of data required in the organizational dialog boxes. You will demo both ways to extend a material master record and explain why the system prompts for different organizational data.

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Figure 55: Extending the Material Master Record: Example

Once a department has created data for a material, a material master record is created for it in the database. If someone from another department then wants to enter data, he or she has to extend (add) the information from his or her department. The system also extends a material master record when data for a material is saved for other organizational levels. You can add the missing views or organizational levels to the material master by choosing the transaction Create material master record. You can only change the data for views and organizational levels that have already been maintained by choosing the transaction Change material master. Any changes (creation or change) you make to data in the material master record are saved in a change document. This means you can check the change history at any time. You can also activate engineering change management for materials.

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Extending Material Master Records 1.

Select Logistics → Materials Management → Material Master → Other → Extend Material View(s).

2.

Enter the material number and choose Execute. An overview appears of the user departments (indicated by the maintenance status) that still need to extend the material master record.

3.

Select the user department(s) for which you want to enter data and choose Maintain materials. The first user department screen appears, where you can enter your data. You can also define other selection criteria, such as the date created, organizational levels, material type, and so on. The system selects those records that satisfy all your selection criteria. If you want the system to select those records that satisfy one of your selection criteria, set the relevant indicator.

4.

your data. The initial screen for maintaining material master Save data appears because you have not finished maintaining the material master record. To access the next screen you selected in the overview, choose the Green Check Mark.

5.

Repeat step 4 until you have entered all the data for the material and have returned to the overview.

Demonstration: Extend Material Master by adding a new view Purpose Note: This demo takes approximately 10 minutes. You need to create the accounting view for the material master record created in the creation demo by extending the material master record. Note: This demo does not show the same process as the students’ procedure. If there is a question why the demo and the procedure do not match, explain there are several ways to extend a material master. The procedure is from the SAP Library and shows a very basic way to extend a material master.


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Password: Set up instructions: 1. Select Logistics → Materials Management → Material Master → Material → Create (General)→ Immediately. Enter the following information: Initial screen Field:

Data:

Material:

T-RM2##

Industry Sector:


Material Type:

Raw Material

Note the Industry sector and the Material Type will appear as default values. The material master and the industry sector are very difficult to change once you have created the material master record. 2.

Choose the Select view(s) button from the Application toolbar.

3.

Select the Accounting 1 view in the dialog box. If you were to choose a view where data was already created, the system would issue a warning message. Choose the Purchasing view to show the issuing of a message. Green Check Mark located in the Select View(s) dialog box.

4.

Select the

5.

Enter the organizational level, Plant 1000, within the dialog box. There is no need to enter a value in the Valuation type field; leave the field blank. Valuation type if used for split valuation. You will discuss split valuation in detail in another chapter.

6.

Enter the following information within the Accounting 1 view: Field:

Data:

Valuation class

3000 Raw Material 1

Price control

V moving average price

Mov. avg. price

80 uni

The Valuation class allows determination of automatic posting to G/L accounts. Price control allows the difference in valuation of inventory. Both of these concepts will be discussed in detail in another chapter. Explain both concepts at a high level. The UNI is a dummy currency created for the training system.

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Caution: Use the dummy currency created for the training system. Tell the students to do the same. 7.

Save your material master record by selecting the Save the Options toolbar.

icon from

Demonstration: Extend the Material Master to a New Plant Purpose Note: This demo takes approximately 10 minutes. You need to create the views for the material master record created in the creation demo in another plant by extending the material master record into the other plant.

System Data System: Client: User ID: Password: Set up instructions: 1. Select Logistics → Materials Management → Material Master → Material → Create (General)→ Immediately. 2.

Choose the following views: Select View(s) Basic Data 1 Purchasing Purchase Order Text General Plant Data/Storage 1 Accounting 1

3.

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Fill in the following organizational levels:


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Organizational Levels Field:

Data:

Copy from:

Data:

Plant

1200

Plant

1000

Stor.location

0001

Stor.location

0001

Caution: You must view each view of the material master record for it to populate to the new plant. Be sure to enter through each tab so data will be copied. 4.

Save your material master record by selecting the Save the Options toolbar.

icon from

Demonstration: Change accounting view for plant 1200 Purpose Change the accounting view of the material master record for plant 1200. Explain to the students that changing the valuation class and the price control allows the system to post to different G/L accounts. The students’ exercise will require they make changes to both the purchase and the accounting view. Demo changing the account view and explain that other views can be changed by using the same process. Note: Approx time for demo - 10 mins

System Data System: Client: User ID: Password: Set up instructions: 1. Select Logistics → Materials Management → Material Master → Material → Change → Immediately. Enter the following information:

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Initial screen Field:

Data:

Material

T-RM2##

2.

Choose the Select view(s) button from the Applications toolbar.

3.

Select the Accounting 1 views. Make the changes to the Accounting view by entering the following:

4.

Field:

Data:

Valuation class

3001 Raw material 2

Price control

S standard price

Standard price

80uni

Save your material master record by selecting the Save the Options.

icon from

Demonstration: Display Change Documents for Material Purpose When you change a material master record, the system records the change, the name of the user, and the time of the change. This provides an audit trail of changes to material master records. Note: Approx time for demo - 10 mins

System Data System: Client: User ID: Password: Set up instructions: 1. Choose Logistics → Materials Management → Material Master → Material → Display Changes → Active Changes. 2.

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Enter the following:


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Display Changes: Initial screen

3.

Field:

Data:

Material

T-RM2##

Plant

1200

Select the

Execute icon from the Applications toolbar.

Explain the changes made to the material master. Select each change to display the details of the data changes.

Entry Aids in Material Master Maintenance The way a customer uses entry aids will depend on their business processes. Discuss the different ways SAP aids a user in setting up a material master record.

Figure 56: Entry Aids in Material Master Maintenance

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The following entry aids facilitate material master maintenance: •

• • • •

Settings: Quicker data entry by presetting the organizational levels and views most often used. These default values are user-specific, and you can overwrite them. Reference material: Quicker data entry by copying the relevant data from existing material master records. Profiles: Quicker data entry by copying data from the materials planning or forecast profile to the relevant views. Collective entry of storage location data: Creation of several storage locations in one step significantly reduces data entry time. Mass maintenance: Changes data in several material master records in one procedure.

At most companies, material master records are created in one of the following ways: •

•

Centrally: A central body enters a minimum amount of all user department data. Users in the individual departments add to this data in Change mode. For the central body to create data for all departments, it must be authorized to process all user department data. Decentrally: Each department creates its own material master records. Users are authorized to process data for one or more departments as required.

You can also create scheduled material master records with reference to a change number. For more information, see Special Features for Materials in the SAP library documentation, LO Engineering Change Management. Using a special cross-application tool, you can extend several material master records at the same time. However, this tool must be used only by experienced users. For more information, see the SAP library documentation, CA Cross-Application Mass Maintenance.

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Demonstration: Enter Material Data for Several Storage Locations Purpose • •

To allow the material master record to be used in other storage locations To create alternative storage locations Note: Approx time for demo – 10 mins Note: The storage locations must already be defined for the plant. The system does not automatically create storage locations for a plant.

System Data System: Client: User ID: Password: Set up instructions: 1. Choose Logistics → Materials Management → Material Master → Other → Enter Storage Locations. 2.

Enter the following: Enter Storage Locations Collectively: Initial Screen Data:

Material

T-RM2##

Plant

1200

3.

Select the

4.

Enter the following information:

5.

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Field:

Green Check Mark from the Options.

Field:

Data:

Field:

Data:

SLoc

0002

Bin

BL-02

SLoc

0003

Bin

From-10

Save your new storage locations by selecting the Save the Options toolbar.


icon from

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Demonstration: Materials List Purpose To demo how material master records can be displayed for more than one organizational level, such as two plants Note: Approx time for demo - 5 mins

System Data System: Client: User ID: Password: Set up instructions: 1. Select Logistics → Materials Management → Material Master → Other → Material List. 2.

Enter the following: Materials List

3.

Field:

Data:

Material

T-RM2##

Plant

1000 to 1200

Select the Execute

icon from the Applications toolbar.

Explain each field in the report.

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129


Exercise 8: Create Material Master Exercise Duration: Minutes

Exercise Objectives After completing this exercise, you will be able to: • Create and maintain a raw material master record. • Explain the impact of organizational levels on material masters records.

Business Example You are responsible for creating and maintaining raw material master records within your company. Create a material master record for a new headlamp.




CATT: [If a CATT is required, enter the CATT name. Delete this tag if not used.]

Task 1: Create Raw Material Master Record Coordinating with the other company departments you are asked to create raw material master records. The materials are to be used in plant 1000. 1.

Create a new mechanical engineering raw material master record T-RM2##.

2.

The new material master record will be used by several areas within your company: company wide, purchasing, and the plant. You will need to create the required material master views: Basic Data 1, Purchasing, Purchase Order Text, and General Plant Data/Storage 1 for the organizational levels Plant 1000 and storage location 0001. Note: There are successive dialog boxes within the material master. When there is an open dialog box, one must work within the box. There are two dialog boxes, Select Views and Organization Levels, within the material master record. Continued on next page

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You have been asked to create the Basic Data 1 view of the material master. The Material description is Headlamp extra bright-##. Piece is the base unit of measure. The headlamp is assigned to material group 003 bulbs. The gross weight is 4 kg and the net weight is 3.8 kg.

4.

Because you use the headlamp material master in more than one country, you are required to create the material description in more than one language.

5.

The purchasing group T## is responsible for procuring the headlamp. Urging letters about undeliverable goods should be sent after 10, 20, and 30 days. Under- or overdeliveries are not accepted. Choose the relevant purchasing value key 1. It takes 1 day to process goods receipts for this material. Hint: There are four ways to move between the tabs within the material master record: • • • •

Enter on the keyboard. Select the desired tab and click on the tab. Select the left/right arrow buttons located to the right of the tabs. Select the index icon located to the far right of the arrow buttons.

6.

The purchasing group has requested text be included for this material master. Create the requested text, “The delivered material must meet our technical specification number 65432”.

7.

The headlamp is to be stored in storage location 0001, storage bin BL-01.

8.

Save your material master record.

Task 2: Display Material Master Task 3: Extend Material Master Record 1.

The accounting department has requested they be able to use material master T-RM2## in their processes for plant 1000. Create an accounting view for this material master record by extending the master record into the Accounting 1 view. The material is assigned to the valuation class raw materials 1 and is valuated using the moving average price procedure. The valuation price is 80 UNI. Continued on next page

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2.


Task 4: Copy Material Master Record 1.

Material T-RM2## is also to be used in plant 1200, storage location 0001. Create a new material master record for plant 1200. Use the data from material T-RM2## in plant 1000 as a reference. Copy your material master into plant 1200. Maintain these views for your new material: Basic Data 1, Purchasing, Purchase Order Text, Accounting 1, and General Plant Data/Storage. Hint: You have to Enter through each view before saving the material to make sure all of the data has been copied from the reference material.

2.


Task 5: Change Material Master Record 1.

Change the purchasing and accounting data for material T-RM2## in Plant 1200. In plant 1200, the system should always propose the material be posted to quality inspection stock. The valuation class for plant 1200 is 3001 and the material is valuated using standard price of 80 UNI. These changes should take effect immediately.

2.


Task 6: Display Change Documents for Material 1.

Find out when the accounting data for material T-RM2## in plant 1200 was last changed. Record the data of the first line within the list: Date:

Time:

Changed by:

Change number:

TCode

Note: To see the details of the changes made to the material master record, select the line you wish to view by placing your cursor on the line then select the choose icon from the Applications toolbar.


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Task 7: Enter Material Data for Several Storage Locations 1.

You store material T-RM2## in plant 1200 in several storage locations storage location 0002, bin BL-02 and storage location 0003, bin From-10. Enter the additional storage locations using collective entry.

2.

Save your new storage locations.

Task 8: Materials List 1.

Check whether your material master T-RM2## is available for both plants 1000 and 1200 by displaying the material list. It is particularly important you verify the valuation data is consistent with the information from the previous task 3 and task 5. Hint: Try to limit as much as possible the information you specify in the materials list, so the system does not have to search too many data records.

Task 9: Optional: Add to List of Favorites Add to your list of favorites the most important transactions for working with material master master records. Note: The formatted text within your favorites list will vary depending on the procedure you choose to populate your favorites list. 1.

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Solution 8: Create Material Master Task 1: Create Raw Material Master Record Coordinating with the other company departments you are asked to create raw material master records. The materials are to be used in plant 1000. 1.

Create a new mechanical engineering raw material master record T-RM2##. a)

Select Logistics → Materials Management → Material Master → Material → Create (General) → Immediately. Initial screen

2.

Field:

Data:

Material:

T-RM2##

Industry Sector:


Material Type:

Raw Material

The new material master record will be used by several areas within your company: company wide, purchasing, and the plant. You will need to create the required material master views: Basic Data 1,


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Purchasing, Purchase Order Text, and General Plant Data/Storage 1 for the organizational levels Plant 1000 and storage location 0001. Note: There are successive dialog boxes within the material master. When there is an open dialog box, one must work within the box. There are two dialog boxes, Select Views and Organization Levels, within the material master record. a) b)

Choose the Select View(s) button from the Applications toolbar. Choose the following views: Select View(s) Basic Data 1 Purchasing Purchase Order Text General Plant Data/Storage 1

c) d)

Select the Green Check Mark located within the Select View(s) dialog box. The Organizational level dialog box will appear. Fill in the following organizational levels: Organizational Levels

e) 3.

Field:

Data:

Plant

1000 (Hamburg)

Stor. location

0001 (Materiallager)

Choose the Green Check Mark located within the organizational level dialog box.

You have been asked to create the Basic Data 1 view of the material master. The Material description is Headlamp extra bright-##. Piece is the base unit of measure.


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The headlamp is assigned to material group 003 bulbs. The gross weight is 4 kg and the net weight is 3.8 kg. a) b)

4.

Select the Basic data 1 tab. Enter the following basic data: Field:

Data:

Material T-RM2## Description

headlamp extra bright-##

Base unit of measure

PC (piece(s))

Material group

003 (bulbs)

Gross weight

4

Net weight

3.8

Weight unit

kg kilogram

Because you use the headlamp material master in more than one country, you are required to create the material description in more than one language. a) b) c)

d)

Select the Additional data button from the Applications toolbar. Select the Description tab. Enter the following within the Language table: Field:

Data:

Language

DE (German)

Material description

headlamp extra bright-## German

Select the Main data button from the Applications toolbar to go back to the Basic data tab.


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The purchasing group T## is responsible for procuring the headlamp. Urging letters about undeliverable goods should be sent after 10, 20, and 30 days. Under- or overdeliveries are not accepted. Choose the relevant purchasing value key 1. It takes 1 day to process goods receipts for this material. Hint: There are four ways to move between the tabs within the material master record: • • • • a) b)

Enter on the keyboard. Select the desired tab and click on the tab. Select the left/right arrow buttons located to the right of the tabs. Select the index icon located to the far right of the arrow buttons.

Select the Purchasing tab. Enter the following purchasing information: Field:

Data:

Purchasing group

T##

Purchasing value key

1

Hint: Enter through the warning messages you will receive about the Purchasing value key by selecting Enter on your keyboard. Field:

Data:

GR processing time

1 day


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6.

The purchasing group has requested text be included for this material master. Create the requested text, “The delivered material must meet our technical specification number 65432”. a) b)

Select the Purchase order text tab. Enter the following text in the open text area: The delivered material must meet our technical specification number 65432.

Hint: : This tab requires you select the Green Check Mark from the Options toolbar to leave the table. 7.

The headlamp is to be stored in storage location 0001, storage bin BL-01. a) b)

8.

Select the Plant data/stor.1 tab. Enter the following information: Field:

Data:

Storage bin

BL-01

Save your material master record. a)

Save your material master record by selecting the Save from the Options toolbar.

icon

Task 2: Display Material Master Task 3: Extend Material Master Record 1.

The accounting department has requested they be able to use material master T-RM2## in their processes for plant 1000. Create an accounting view for this material master record by extending the


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master record into the Accounting 1 view. The material is assigned to the valuation class raw materials 1 and is valuated using the moving average price procedure. The valuation price is 80 UNI. a) b)

Select Logistics → Materials Management → Material Master → Material → Create (General)→ Immediately. Enter the following information: Initial screen

c) d)

Field:

Data:

Material:

T-RM2##

Industry Sector:


Material Type:

Raw Material

Choose the Select view(s) button from the Applications toolbar. Select the Accounting 1 view. Hint: Remember to work within the dialog boxes.

e) f)

2.

Enter the organizational level Plant 1000. There is no need to enter a value in the valuation type field. Enter the following information within the Accounting 1 view: Field:

Data:

Valuation class

3000 Raw Material 1

Price control

V moving average price

Mov. avg. price

80 UNI



icon

Task 4: Copy Material Master Record 1.

Material T-RM2## is also to be used in plant 1200, storage location 0001. Create a new material master record for plant 1200. Use the data from material T-RM2## in plant 1000 as a reference. Copy your material master into plant 1200.


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Maintain these views for your new material: Basic Data 1, Purchasing, Purchase Order Text, Accounting 1, and General Plant Data/Storage. Hint: You have to Enter through each view before saving the material to make sure all of the data has been copied from the reference material. a) b)

Select Logistics → Materials Management → Material Master → Material → Create (General) → Immediately. Enter the following information: Initial screen

c)

Field:

Data:

Material:

T-RM2##

Industry Sector:


Material Type:

Raw Material

Copy from...Material

T-RM2##

Choose the following views: Select View(s) Basic Data 1 Purchasing Purchase Order Text General Plant Data/Storage 1 Accounting 1

d)

Fill in the following organizational levels: Organizational Levels Field:

Data:

Copy from:

Data:

Plant

1200

Plant

1000

Stor.location

0001

Stor.location

0001


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icon

Task 5: Change Material Master Record 1.

Change the purchasing and accounting data for material T-RM2## in Plant 1200. In plant 1200, the system should always propose the material be posted to quality inspection stock. The


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valuation class for plant 1200 is 3001 and the material is valuated using standard price of 80 UNI. These changes should take effect immediately. a) b)

Select Logistics → Materials Management → Material Master → Material → Change → Immediately. Enter the following information: Initial screen

c) d) e) f)

g)

Field:

Data:

Material

T-RM2##

Choose the Select view(s) button from the Applications toolbar. Select the Purchasing and Accounting 1 views. Enter the organizational level, Plant 1200. There is no need to enter a value in the Valuation type field. Make the requested change to the Purchasing view, enter the following: Field:

Data:

Post to insp.stock

check mark

Move to the Accounting 1 view. Make the requested changes to the Accounting view; enter the following: Field:

Data:

Valuation class

3001 Raw material 2

Price control

S standard price

Standard price

80uni

Hint: The system will recalculate the price for this material master; go through the message by selecting Enter on your keyboard. 2.


Save your material master record by selecting the Save from the Options.

icon


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Task 6: Display Change Documents for Material 1.

Find out when the accounting data for material T-RM2## in plant 1200 was last changed. Record the data of the first line within the list: Date:

Time:

Changed by:

Change number:

TCode

Note: To see the details of the changes made to the material master record, select the line you wish to view by placing your cursor on the line then select the choose icon from the Applications toolbar. a) b)

Select Logistics → Materials Management → Material Master → Material → Display Changes → Active Changes. Enter the following: Display Changes: Initial screen

c)

Field:

Data:

Material

T-RM2##

Plant

1200

Select the

Execute icon from the Applications toolbar.


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Task 7: Enter Material Data for Several Storage Locations 1.

You store material T-RM2## in plant 1200 in several storage locations storage location 0002, bin BL-02 and storage location 0003, bin From-10. Enter the additional storage locations using collective entry. a) b)

Select Logistics → Materials Management → Material Master → Material → Other → Enter Storage Locations. Enter the following: Enter Storage Locations Collectively: Initial Screen Field:

Data:

Material

T-RM2##

Plant

1200

Leave all other information as defaulted. Select the Check Mark from the Options toolbar. c)

2.

Green

Enter the following information: Field:

Data:

Field:

Data:

SLoc

0002

Bin

BL-02

SLoc

0003

Bin

From-10

Save your new storage locations. a)

Save your new storage locations by selecting the Save from the Options toolbar.

icon


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Task 8: Materials List 1.

Check whether your material master T-RM2## is available for both plants 1000 and 1200 by displaying the material list. It is particularly important you verify the valuation data is consistent with the information from the previous task 3 and task 5. Hint: Try to limit as much as possible the information you specify in the materials list, so the system does not have to search too many data records. a) b)

Select Logistics → Materials Management → Material Master → Material → Other → Material List. Enter the following: Materials List

c)

Field:

Data:

Material

T-RM2##

Plant

1000 to 1200

Select the Execute

icon from the Applications toolbar.


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Task 9: Optional: Add to List of Favorites Add to your list of favorites the most important transactions for working with material master master records. Note: The formatted text within your favorites list will vary depending on the procedure you choose to populate your favorites list. 1.


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Drag and Drop: Select the Material Master transaction. Holding the left mouse button down, drag the transaction up and into the Favorites folder.

•

Right mouse click: Select the Material Master transaction. Click the right mouse button. Select add to favorites.

•

Using the add to favorites icon: Select the Material icon from Master transaction. Select the Add to favorites the Applications toolbar. Click on the icon to move the transaction into the favorites list.

•

Using the Menu Bar: Select the Material Master transaction. Select Favorites /Add from the menu bar.


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Lesson Summary You should now be able to: • Explain the significance of the material master • Create and maintain material master records • Explain the impact of organizational levels on material masters

Related Information For more information on creating, displaying, or changing a material master record, refer to the SAP Library under Purchasing (MM-PUR), Purchasing Documents, Material Master Data, Maintaining Purchasing Data in Mat. Master Record. http://help.sap.com

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Lesson: 147

Lesson: Vendor Master Records

Vendor Master Records Lesson Duration: 60 Minutes

Lesson Overview In this lesson you will gain an understanding of the structure of the vendor master record.


Create and maintain a vendor master record Explain the impact of organizational levels on vendor masters Explain the concept of partner roles in the vendor master

The vendor master record is influenced by organizational levels. Explain the structure of the vendor master record.

Business Example Your company has a business relationship with a new vendor. To enable you to order from this vendor, you have to create a new vendor master record in the R/3 System.

Vendor Master Record: Organizational Levels The vendor record contains data on a company’s external vendors. This is an overview graphic. Which department sets up which level of the vendor master record will depend on the customer’s business processes. You must set up the vendor master record as complete if you want to use the master record in a procurement process: purchase, receive goods, and invoice.

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Figure 57: Vendor Master Record: Organizational Levels

In Accounting, the vendor is regarded as the company’s crediting business partner. The vendor master record is therefore maintained by Accounting and Purchasing. You can use the R/3 System authorization concept to define how data maintenance should be organized in the vendor master record. Each user department can maintain both general data and Purchasing and Accounting-specific data centrally or decentrally. In addition, Purchasing often maintains data at corporate group level.

Vendor Master Data Explain how the vendor master is organized and give examples of data at each organizational level.

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Figure 58: Vendor Master Data

Data in the vendor master record is subdivided into three categories: • •

•

General data: This includes the vendor’s address and bank details, for example. This data is valid for the whole client. Purchasing data: This includes the purchase order currency, incoterms, and the vendor’s tax data. This data is maintained for each purchasing organization. You can also maintain different data on a plant-dependent basis or for vendor sub-ranges. Accounting data: This comprises data such as the number of the reconciliation account and the payment methods for automatic payment transactions. This is maintained at company code level.

You can block a vendor master record, for example, if the quality of the vendor’s products is poor. You can block a vendor for an individual material via the source list.

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Figure 59:

Vendor Master Record: Account Group The Account group of the vendor master record works like the material type, explain the controlling functions of the account group in more detail: The Account group defines allowed number ranges, internal/external number assignment, and is used for controls screens and field selection. One-time vendor: Term for a collective vendor master record used for the processing of transactions involving miscellaneous vendors that are not included among a customer’s regular suppliers. This type of vendor has only an address screen. If a PO is sent to a one-time vendor, the vendor data must be entered manually. You will not be able to post a liability to this vendor master record. Explain a one-time vendor master record here as you will be using a one-time vendor master record in the RFQ lesson.

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When creating a vendor master record, you have to enter an account group. The account group has controlling characteristics. The account group determines: •

• • • •

The type of number assignment and the number range from which the account number used by the system to identify the vendor is assigned. The number can be assigned internally by the system or by the user (that is, externally) when a master record is created. For external number assignment, alphanumeric numbers are also allowed. The system ensures that the numbers are always unique. With internal number assignment, the system assigns numbers consecutively from a given range. With external number assignment, it prevents an already used number from being reused. Whether or not a one-time vendor is involved. Which fields the screens of the vendor master record contain and whether entries in these fields are mandatory or optional. Which data retention levels below the purchasing organization are allowed (for example, vendor sub-range). Which partner determination schemes are valid.

Figure 60: Vendor Master Record: Account Group

Unlike the material type, the vendor account group can be changed easily. You can change the account group of an existing vendor master record by selecting: Logistics → Materials Management → Master Data → Vendor → Central → Account Group Change.

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You can create special master records for vendors from whom you procure a material only once or very rarely. These are called one-time vendor master records and, in contrast to other master records, you can use a vendor master record for several vendors. Therefore, no vendor-specific data is stored for one-time vendors. You can control this using the relevant field selection for account groups for one-time vendors. When creating a purchasing document or accounting document with a one-time vendor, the system automatically goes to an additional data screen. This is where you enter specific data, such as the vendor’s name, address, or bank details. Like all other master records, you can display, block, or delete one-time vendor master records. Each vendor master record for one-time accounts must have its own account group.

Reconciliation Account for Vendor Master Record Explain the function of the control account. You use this field to indicate G/L accounts as being reconciliation accounts. For each subledger account , you must keep at least one reconciliation account in the general ledger. When you post to an account in the subledger, the system automatically posts to the corresponding reconciliation account.

Figure 61: Reconciliation Account for Vendor Master Record

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When you create a vendor master record, you need a unique number for the vendor. Depending on the account group, the system assigns this automatically or the person responsible assigns it manually. The vendor number is also used as the subledger number in Financial Accounting. In subledger accounting, the total liabilities are updated per vendor. When you create a vendor master record, you have to maintain a reconciliation account. The reconciliation account is a G/L account in G/L accounting. It maps a company’s liabilities towards several vendors in G/L accounting. When entering invoices, you enter the vendor and the system uses the reconciliation account from the vendor master record. Using the reconciliation account procedure, it is possible to create a balance sheet and a profit and loss statement at any time because the amounts posted to subledger accounts are also posted automatically in the general ledger. You define reconciliation accounts by specifying in the G/L account master record the account type (such as fixed assets, vendor or customer) for which the account is to be used. In this way, the account can be assigned only to accounts in the corresponding subledger. You set the assignment of the subledger account to a reconciliation account in the master record of the subledger account. You cannot post to reconciliation accounts manually.

Partner Roles Partner Roles are highly configurable. Their usage will vary depending on the business environment. Explain the concept of partner roles in the vendor master. Point out to the participants that only the role of VD, or vendor (English language system), is required in order to allow for purchasing with a vendor record. The partners you can store in the vendor master record in the Partner Roles view apply to a certain purchasing organization. In addition to the partners that are valid at purchasing organization level, you can maintain different partners for individual plants or vendor sub-ranges. In this case, the system will determine a different ordering address in a purchase order for your Atlanta plant than the one determined in a purchase order for your Minneapolis plant, for example.

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The data in Partner roles is used in the association downstream of logistics and accounting functions. These partner roles influence downstream logistics and accounting functions: •

•

•

Ordering address: If you define another partner for this partner role, a standard PO or release order will not be sent to the address of the vendor but to the ordering address of the partner. Goods supplier: If you define a partner from another member state of the EU for this partner role, standard POs or release orders will be taken into account when Intrastate declarations are created. Invoicing party: If you define another partner for this partner role, the invoicing party’s account will be charged instead of the vendor’s.

Figure 62: Partner Roles

When working with partner roles separate vendor master records must exist for all the partners of a vendor that are to be entered in that vendor’s master record. The vendor can have various functions in its interaction with your company. For example, during the procurement transaction the vendor is the order recipient, then the supplier of goods, the invoicing party, and finally, the payee. By maintaining partner roles in the vendor master record, you can distribute one or more of these roles among different vendor master records.

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You can determine which of the partner roles are optional and which are mandatory via the Customizing functions. If no other roles have been maintained, the data of the Vendor role applies. This data is used in the associated downstream logistics and accounting functions.

Figure 63:

Creating a Vendor Master Record with Reference Explain how to create a vendor with reference to another one.

To help you create a vendor master record, you can use an existing vendor as a reference. The system prompts you to maintain the data (for example, address). The control data is copied from the reference, but you can overwrite it.

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Figure 64: Creating a Vendor Master Record with Reference

You can block the vendor master record (for example, for vendors who deliver products of poor quality). Once you have set the block indicator, you can no longer place purchase orders with this vendor. Note: In the source list, you can block a vendor for a single material.

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155

Create Vendor Master Record 1.

Choose Logistics → Materials Management → Purchasing → Master Data → Vendor → Central → Create.

2.

Enter the Vendor master number (the vendor master number assignment can be configured to allow either internal assignment or external assignment of numbers) purchasing organization, the company code, and the account group. If you want to use another vendor master record as a reference, enter the account number of that vendor in the Vendor (creditor) field (under Reference).

3.

Select the

4.

The Create Vendor: Address screen appears. Enter the Vendor name and address.

5.

Select the

6.

The Create Vendor: Control screen appears. On this screen, enter the accounting data needed by the payment and dunning program, and data for declarations to the tax authorities. Also populate the debtor (customer) field where necessary (the data in this field is needed in the case of deliveries to the vendor in connection with returns and subcontracting components).

7.

Select the

8.

Enter the necessary data on the subsequent screens that appear. Required data will be determined by your business processes.

9.

Select the toolbar.

Green Check Mark from the Options toolbar.



Green Check Mark for each screen from the Options

10. The Create Vendor: Accounting information Accounting screen appears. Enter the Reconciliation account number. 11. Select the


12. Enter the necessary data on the subsequent screens that appear. Required data will be determined by your business processes. 13. Select the toolbar.

Green Check Mark for each screen from the Options


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14. On the Purchasing Data screen, enter purchasing-specific data such as the order currency or the key for the terms of payment . Note: You can record the Terms of Payment that you agree on with a vendor in the vendor master record. They automatically appear as default values in any purchase orders created for the vendor in question; however, you can change them as needed. Terms of payment can also be entered in the vendor’s invoice. These are then applied by the payment program. 15. The Create Vendor: Partner Roles (partner functions) screen appears. Maintain the necessary partner roles on this screen. 16. Select the


17. Save your vendor master record by selecting toolbar.

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Change Vendor Master Record 1.

Choose Logistics → Materials Management → Purchasing → Master Data → Vendor → Central → Change.

2.

Enter the vendor number, the company code, and the purchasing organization. Select the area of the data you wish to change by placing a in the appropriate box.

3.

Select the

4.

Enter your changes.

5.

Save your vendor master record by selecting toolbar.




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Display List of Vendors 1.

Choose Logistics → Materials Management → Purchasing → Master Data → Vendor → List Displays → Purchasing List .

2.

Enter your selection criteria, example purchasing organization. Note: You can execute this report to show one selected criteria or a range of selected criteria.

3.

200

Select

Execute from the Applications toolbar.


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Demonstration: Create Vendor Master Purpose To create a complete vendor master record. Explain the difference in creating a vendor master using the central menu path versus using the purchasing menu path. There will be a number of fields that will not be used or populated in this demo, this often concerns the students. Explain each screen even if data entry is not required. Remind the students that they can use the F1 function to get field level help. Note: Approximate time for this demo is 15 minutes. You will use this vendor master in the next Unit.

System Data System: Client: User ID: Password: Set up instructions: 1. Choose Logistics → Materials Management → Purchasing → Master Data → Vendor → Central → Create. Explain to create a complete vendor master record you need to know the company code and the purchasing organization. 2.

Enter the following data: Create Vendor: Initial Screen Field:

Data:

Vendor

T-K12B##

Company code

1000 IDES AG 1000

Puch. organization


Account group

LIEF Vendor

Explain the Account Group LIEF. Show from the F4 list the one time vendor accounting group.

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3.

Select the

4.

Enter client-level address information for your vendor master:



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Create Vendor: Address Field:

Data:

Title

Company

Name

Rasch Gr.## KFZ-Zubehor

Search term 1/2

LO020–##

Street/House number

Daimlerstrasse Street 127 House Number

Postal code/City

69134 Heidelberg

Country

DE Germany

Region

08 Baden-Wurttemberg

Language

English

Note: Use the Green check mark to move to each screen. Point out that the Enter key on the keyboard or the arrow icons also allow movement between screens. 5.

Enter the correct reconciliation account number in the relevant field. Create Vendor: Accounting Information Accounting

6.

Field:

Data:

Recon. Account

160000 Trade Payables — domestic

Enter the correct Payment Transaction information in the relevant field. Create Vendor: Payment Transaction Accounting Field:

Data:

Payment Methods

S Scheck/Check U Bankuberweisung/Bank Transfer

Note: This table is still in German so you may want to write the S/U on the board for reference during the exercise. 7.

202

Enter the correct payment condition and incoterms in the relevant fields.


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Field:

Data:

Order currency

UNI

Terms of paymnt

0002

Incoterms

FOB Free on board Mannheim

Caution: Do not demo the partner roles function unless you know another vendor master record, such as vendor master 1000 . 8.

Save your vendor master record by selecting toolbar.


Demonstration: Change Vendor Master Purpose Change the accounting data on the vendor master created in the Create Vendor Master demo. Approximate time for demo is 5 minutes.

System Data System: Client: User ID: Password: Set up instructions: 1. Choose Logistics → Materials Management → Purchasing → Master Data → Vendor → Change. 2.

Enter the relevant payment conditions in the Company code data field in the Payment Transaction Accounting view. Change Vendor: Initial screen Field:

Data:

Vendor

T-K12B##

Company Code

1000 IDES AG 1000

Purch. organization


Company Code Data

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Enter the payment terms: Change Vendor: Payment transaction Accounting

4.

204

Field:

Data:

Payment terms

0002

Save the changes you made to your vendor master record by choosing Save from the Options toolbar.


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159


Exercise 9: Create Vendor Master Record Exercise Duration: Minutes

Exercise Objectives After completing this exercise, you will be able to: • Create and maintain vendor master records.

Business Example Your company has a business relationship with a new vendor. To enable you to order from this vendor, you have to create a new vendor master record in the R/3 System.






Task 1: Create Vendor Master Record You already have the Purchasing and Accounting data for a new vendor. From the perspective of head office, create a vendor master record. 1.

Create a vendor master record T-K12B## for company code 1000, purchasing organization 1000, and account group LIEF. Hint: Leave the remaining fields blank.

2.

Enter client level address information for your vendor master: Create Vendor: Address Field:

Data:

Title

Company

Name

Rasch Gr.## KFZ-Zubehor Continued on next page

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Field:

Data:

Search term 1/2

LO020–##

Street/House number


Postal code/City

69134 Heidelberg

Country

DE Germany

Region


Language

English

Hint: You do not have to enter data in these views: Control and Payment transactions. Enter past these screens. 3.

The reconciliation account in G/L accounting has the description Trade Payables – domestic. Use your F4 input help to determine the number of the reconciliation account. Enter the correct reconciliation account number in the relevant field.

4.

Automatic payment transactions can be carried out for this vendor via a check or bank transfer. Enter the correct Payment Transaction information in the relevant field. Note: More than one type of payment transaction can be entered in the payment methods field.

5.

The purchase order currency used for the vendor is a UNI. Enter the currency in the relevant field. Purchasing has agreed on the terms of payments: within 14 days 3% cash discount, within 30 days 2% cash, within 45 days due net. Use your F4 input help to assist you in determining the relevant payment term. Enter the correct payment terms in the relevant field. The freight and shipping conditions are FOB/Mannheim. Enter the incoterms in the relevant fields. Hint: You do not need to enter data in the Partner functions view. Enter through this view.

6.

Save your vendor master record.


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Task 2: Change Vendor Master Record The payment conditions for vendor T-K12B## agreed by Purchasing are also valid for accounting transactions. You have also arranged with the vendor that purchase requisitions can be converted automatically into purchase orders for some materials. Enable the system to allow automatic conversion of purchase requisitions to purchase orders by setting the required indicator in the Purchasing screen. 1.

The payment conditions 0002 for your vendor T-K12B## are valid for accounting transactions. Enter the relevant payment conditions on the Payment Transaction Accounting view.

2.

Save the changes you made to your vendor master record.

3.

The vendor’s purchase requisitions can be converted automatically into purchase orders for some materials. Enable the system to allow automatic conversion by setting the required indicator. Enter the relevant purchasing indicator on the Purchasing view.

4.

Save the changes you made to your vendor master record.

Task 3: Optional: Add to List of Favorites Add to your list of favorites the most important transactions for working with vendor master records. Note: The formatted text within your favorites list will vary depending on the procedure you choose to populate your favorites list. 1.

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Solution 9: Create Vendor Master Record Task 1: Create Vendor Master Record You already have the Purchasing and Accounting data for a new vendor. From the perspective of head office, create a vendor master record. 1.

Create a vendor master record T-K12B## for company code 1000, purchasing organization 1000, and account group LIEF. Hint: Leave the remaining fields blank. a) b)

Choose Logistics → Materials Management → Purchasing → Master Data → Vendor → Central → Create. Enter the following data: Create Vendor: Initial Screen

c) 2.

Field:

Data:

Vendor

T-K12B##

Company code

1000 IDES AG 1000

Puch. organization


Account group

LIEF Vendor

Select the


Enter client level address information for your vendor master: Create Vendor: Address Field:

Data:

Title

Company

Name

Rasch Gr.## KFZ-Zubehor

Search term 1/2

LO020–##

Street/House number


Postal code/City

69134 Heidelberg


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Field:

Data:

Country

DE Germany

Region


Language

English

Hint: You do not have to enter data in these views: Control and Payment transactions. Enter past these screens. a) 3.

Select the Green Check Mark from the Options toolbar to advance to the next screen.

The reconciliation account in G/L accounting has the description Trade Payables – domestic. Use your F4 input help to determine the number of the reconciliation account. Enter the correct reconciliation account number in the relevant field. a)

Enter the correct reconciliation account number in the relevant field. Create Vendor: Accounting Information Accounting

b)

Field:

Data:

Recon. Account

160000 Trade Payables — domestic



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Automatic payment transactions can be carried out for this vendor via a check or bank transfer. Enter the correct Payment Transaction information in the relevant field. Note: More than one type of payment transaction can be entered in the payment methods field. a)

Enter the correct Payment Transaction information in the relevant field. Create Vendor: Payment Transaction Accounting

b) 5.

Field:

Data:

Payment Methods

S Scheck/Check U Bankuberweisung/Bank Transfer


The purchase order currency used for the vendor is a UNI. Enter the currency in the relevant field. Purchasing has agreed on the terms of payments: within 14 days 3% cash discount, within 30 days 2% cash, within 45 days due net. Use your F4 input help to assist you in determining the relevant payment term.


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Enter the correct payment terms in the relevant field. The freight and shipping conditions are FOB/Mannheim. Enter the incoterms in the relevant fields. Hint: You do not need to enter data in the Partner functions view. Enter through this view. a)

b)

Enter the correct payment condition and incoterms in the relevant fields. Field:

Data:

Order currency

UNI

Terms of paymnt

0002

Incoterms

FOB Free on board Mannheim

Select the Green Check Mark from the Options toolbar to advance to the next screen. Hint: You do not need to enter data in the Partner functions view; Enter through the view.

6.

Save your vendor master record. a)

Save your vendor master record by selecting Options toolbar.

Save from the


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Unit 3: Master Data

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Task 2: Change Vendor Master Record The payment conditions for vendor T-K12B## agreed by Purchasing are also valid for accounting transactions. You have also arranged with the vendor that purchase requisitions can be converted automatically into purchase orders for some materials. Enable the system to allow automatic conversion of purchase requisitions to purchase orders by setting the required indicator in the Purchasing screen. 1.

The payment conditions 0002 for your vendor T-K12B## are valid for accounting transactions. Enter the relevant payment conditions on the Payment Transaction Accounting view. a) b)

Choose Logistics → Materials Management → Purchasing → Master Data → Vendor →Central → Change. Enter the relevant payment conditions on the Company code data field in the Payment Transaction Accounting view. Change Vendor: Initial screen Field:

Data:

Vendor

T-K12B##

Company Code

1000IDES AG 1000

Purch. organization

1000IDES Deutschland

Company Code Data c) d)

Payment Transaction

Select the Green Check Mark from the Options toolbar. Enter the payment terms: Change Vendor: Payment transaction Accounting

2.

Field:

Data:

Payment terms

0002

Save the changes you made to your vendor master record. a)

Save the changes you made to your vendor master record by Save from the Options toolbar. choosing


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3.

The vendor’s purchase requisitions can be converted automatically into purchase orders for some materials. Enable the system to allow automatic conversion by setting the required indicator. Enter the relevant purchasing indicator on the Purchasing view. a) b)

Choose Logistics → Materials Management → Purchasing → Master Data → Vendor → Change. Enter the relevant purchasing indicator on the Purchasing view. Change Vendor: Initial screen Field:

Data:

Vendor

T-K12B##

Company Code

1000 IDES AG 1000

Purch. organization


Purchasing organization data c) d)

Purchasing Data

Select the Green Check Mark from the Options toolbar. Enter Automatic purchase order. Note: This field requires only a check mark.

4.

Save the changes you made to your vendor master record. a)

Save the changes you made to your vendor master record by choosing Save from the Options toolbar.


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Task 3: Optional: Add to List of Favorites Add to your list of favorites the most important transactions for working with vendor master records. Note: The formatted text within your favorites list will vary depending on the procedure you choose to populate your favorites list. 1.


214


Drag and Drop: Select the Vendor Master transaction. Holding the left mouse button down, drag the transaction up and into the Favorites folder.

•

Right mouse click: Select the Vendor Master transaction. Click the right mouse button. Select add to favorites.

•

Using the Add to favorites icon: Select the Vendor Master transaction. Select the Add to favorites icon from the Applications toolbar. Click on the icon to move the transaction into the favorites list.

•

Using the Menu Bar: Select the Vendor Master transaction. Select Favorites /Add from the menu bar.


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Lesson Summary You should now be able to: • Create and maintain a vendor master record • Explain the impact of organizational levels on vendor masters • Explain the concept of partner roles in the vendor master

Related Information For more detailed information about vendor master record, refer to the SAP Library online at http://help.sap.com. http://help.sap.com

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Unit Summary

LO020

Unit Summary You should now be able to: • Explain the significance of the material master • Create and maintain material master records • Explain the impact of organizational levels on material masters • Create and maintain a vendor master record • Explain the impact of organizational levels on vendor masters • Explain the concept of partner roles in the vendor master

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Test Your Knowledge

171


The material master record is a company’s main source of material specific data. Determine whether this statement is true or false.

□ □ 2.

True False

The data maintained within a view may be valid for more than one organizational level. Determine whether this statement is true or false.

□ □ 3.

True False

The integration of all material data in a single database object prevents . the problem of data Fill in the blanks to complete the sentence.

4.

and are two examples of organizational levels where material master data can be stored. Fill in the blanks to complete the sentence.

5.

When creating a material master record, remember that the material type is the primary controlling function in the R/3 System. The material type can determine: Choose the correct answer(s).

□ □ □ □ 6.

A B C D

The type of number assignment The number range interval The views suggested for entry All of the above

If a new view for a material master is requested, the new view is added to the R/3 System by changing the material master record. Determine whether this statement is true or false.

□ □

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True False


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Test Your Knowledge

7.

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The industry sector you assign to a material master record during creation can be changed at a later date. Determine whether this statement is true or false.

□ □

True False

8.

List three organizational levels where data within a vendor master can be stored.

9.

When creating a vendor master record you do not have to enter an account group. Determine whether this statement is true or false.

□ □

True False

10. When creating a vendor master record, you have to maintain a reconciliation account. Determine whether this statement is true or false.

□ □ 11.

True False

in the vendor master record allow the distribution of multiple roles among different vendor master records. Fill in the blanks to complete the sentence.

12.

and

are examples

of Partner Roles. Fill in the blanks to complete the sentence.

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Test Your Knowledge

173

Answers 1.

The material master record is a company’s main source of material specific data. Answer: True The material master record is the main source of material specific data as it is used by all components of the R/3 Logistics system.

2.

The data maintained within a view may be valid for more than one organizational level. Answer: True The data maintained within the Basic Data view is maintained at a client level; therefore, the data maintained within this view is valid for all organizational levels within the client.

3.

The integration of all material data in a single database object prevents the problem of data redundancy. Answer: redundancy Some material data is valid for all organizational levels, while some is valid for certain levels only. The material master is designed to reflect the structure of your enterprise so you can manage the material data in your enterprise centrally, without overloading your datasets with redundant information.

4.

Client and Plant are two examples of organizational levels where material master data can be stored. Answer: Client, Plant Data at client level: General material data that is valid for the whole company is stored at client level. Data at plant level: All data that is valid within a plant, and for all storage locations in it, is stored at plant level. Data at storage location level: All data that is valid for a particular storage location is stored at storage location level.

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Test Your Knowledge

5.

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When creating a material master record, remember that the material type is the primary controlling function in the R/3 System. The material type can determine: Answer: D Material types in the SAP standard version are, for example, raw materials, trading goods, semi-finished products, finished products, or services. The material type represents certain features of materials in the system, and has important control functions: the material type is used, among other things, to group field selection functions for a material or to define the screen sequence, the type of number assignment and number ranges during material master record maintenance. Depending on the material type, company areas maintain different data screens. This screen selection applying specifically to an application is called a view.

6.

If a new view for a material master is requested, the new view is added to the R/3 System by changing the material master record. Answer: False If a new view is requested from another department, the material master must be extended and the view added to the material master record via Create material master.

7.

The industry sector you assign to a material master record during creation can be changed at a later date. Answer: False The industry sector assigned to a material master record at the time of creation cannot be changed.

8.

List three organizational levels where data within a vendor master can be stored. Answer: Data within a vendor master record can be stored in: General data – this is data valid for the whole client; Purchasing data – this is plant-dependent data; and Accounting data– this is company-dependent data.

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Test Your Knowledge

9.

When creating a vendor master record you do not have to enter an account group. Answer: False When creating a vendor master record you do have to enter an account group. The account group determines a number of variables required to enter a vendor master record.

10. When creating a vendor master record, you have to maintain a reconciliation account. Answer: True When creating a vendor master record you have to maintain a reconciliation account. The account records a company’s liabilities to a vendor in G/L accounting. 11. Partner Roles in the vendor master record allow the distribution of multiple roles among different vendor master records. Answer: Partner Roles 12. Supplier and Invoicing Party are examples of Partner Roles. Answer: Supplier, Invoicing Party Order recipient, Supplier, Invoicing party, and Payee are all examples of possible partner roles for a vendor master record. Partner Roles can be configured in the Implementation Guide.

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Unit 4 Procurement of Stock Material

177

This is probably the most important unit in the course. Not only do the students go through the complete procurement cycle (except for requisitions), but they are also introduced to many new concepts. Be sure to allow plenty of time for questions and for exercises.

Unit Overview A key unit in this course, Procurement of Stock Material will introduce the creation and maintenance of requests for quotations. The unit also presents the establishment of purchasing info records with focus on pricing and conditions. The progression of creating a purchase order, receiving the material into the plant, and finally entering the invoice will be done at a basic level.

Unit Objectives After completing this unit, you will be able to: • • • • • • • • • •

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Create a request for quotation Enter and compare vendor quotations Process and create purchasing info records Create an info record with reference to an RFQ Enter prices into info records and enter vendor discounts Create a purchase order with reference to a quotation Explain the purpose of documents for goods movements Perform Stock Overview displays Analyze the valuation effect from a goods receipt on both standard and moving average materials Post a goods receipt into quality inspection stock and release the quality inspection stock


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•

•

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Explain and demonstrate the use of Logistics Invoice Verification (LIV) functionality for invoice posting with both planned and unplanned delivery costs Display the accounting document and material document associated with LIV invoice posting

Unit Contents Lesson: Requests for Quotation (RFQ) ......................................225 Procedure: Creating an RFQ Manually..................................227 Procedure: Entering a Quotation Against an RFQ .....................232 Procedure: Comparing Quotations ......................................235 Demonstration: RFQ / Quotation Processing ...........................246 Exercise 10: Request for Quotation (RFQ) .............................249 Lesson: Purchasing Information Records ...................................261 Demonstration: Demonstration of Info Record Structure..............262 Demonstration: Info Record Maintenance ..............................263 Demonstration: Automatic Info Record Creation .......................264 Demonstration: Demonstration of Condition Maintenance in Info Records ......................................................................272 Procedure: Creating Info Record for Material with Master Record.......................................................................274 Procedure: Creating Info Record for Material without Master Record ................................................................................279 Exercise 11: Purchasing Information Records..........................283 Lesson: Purchase Orders for Stock Material................................291 Demonstration: Purchase Order Creation with Reference to a Quotation ....................................................................291 Procedure: Creating a PO by Copying or Referencing ................294 Exercise 12: Purchase Orders for Stock Material ......................297 Lesson: Stocks, Valuation, and Goods Receipt.............................305 Demonstration: Valuation Data in the Material Master Record .......314 Demonstration: Goods Receipt Into Quality Inspection Stock........320 Demonstration: Transfer Posting .........................................324 Procedure: Goods Receipt ................................................325 Exercise 13: Posting Goods Receipts into Quality Inspection........327 Lesson: Invoice Verification for Stock Materials ............................338 Demonstration: Optional – Invoice Processing (planned delivery costs) ................................................................................342 Demonstration: Entering Unplanned Delivery Costs ..................342 Procedure: Invoice Posting Procedure .................................344 Procedure: Entering Invoices with Purchase Order Reference ......345 Exercise 14: Invoice Verification for Stock Materials ..................347

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Lesson: 179

Lesson: Requests for Quotation (RFQ)

Requests for Quotation (RFQ) Lesson Duration: 60 Minutes

Lesson Overview This unit discusses the procurement process for a stock material. We demonstrate how the Request for Quotation (RFQ) process works and is used to determine which vendor we should buy from. We look at the use of info records to capture conditions and prices which facilitate creating the PO. We will review the valuation decision we must make for each stock material and its impact in accounting. We will add several other modifications of the basic steps and another inventory transaction, the stock transfer.


Create a request for quotation Enter and compare vendor quotations

We already introduced the basic purchasing process and the main prerequisites for the purchasing process, that is, organizational structure and master data. This unit goes deeper into the procurement process for a stock material. We expand the basics by demonstrating how the Request for Quotation (RFQ) process works and is used to determine to which vendor we will send the PO. We look at the use of Info records to capture conditions and prices which facilitate creating the PO and at the valuation decisions we must make for stock materials and the impact in of this choice, in accounting, when we buy them. We add several other modifications to each of the basic steps and another inventory transaction, the stock transfer.

Business Example You need to research vendors for a material your company needs to procure. You use the RFQ functionality to assist with this task.

The Request for Quotation (RFQ/Quotation) Process After establishing that a material or service is required, the Purchasing department needs to convert the purchase requisition into a purchase order. The R/3 System supports the Purchasing department using requests for quotation in the source determination process.

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Figure 65: RFQ/Quotation

First, you create a request for quotation for the relevant material or the required service. You can enter the request for quotation manually or with reference to a purchase requisition. The second option has the advantage that the information already in the purchase requisition is copied directly to the request for quotation. Then you send it to selected vendors. When you enter the vendor’s name, the system retrieves the address from the data in the vendor’s master record. You send the RFQs to the chosen vendors, who then send back their quotations. In Purchasing, the RFQ and the quotation form a single document. Prices and conditions quoted by vendors are entered in the original RFQ. You can determine the most favorable items or overall quotation by means of a quotation comparison. You also can save the price and conditions of every quotation you are interested in as a purchasing info record.

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181

Creating an RFQ Manually Prerequisites 1. 2. 3.

4.

Vendors: Do you have a list of suitable vendors for the RFQ? The vendor numbers must be available. Deadlines: What are the important deadlines for bidding, if any (for example, the deadline for submission of quotations)? Number assignment: If your company uses external number assignment, then you need an RFQ number that falls within the valid number range. Collective number: SAP recommends that you assign the RFQ a collective number. You enter this number once and the system copies it into each RFQ you create within a competitive bidding process. This number enables you to easily track all RFQs. The number can be alphanumeric and up to 10 characters long. You enter it in the header data of the RFQ.

Procedure 1.

Procedure


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Figure 66:

1.

Choose RFQ/quotation using the path Request For Quotation → Create. The initial screen appears.

2.

Enter the deadline for submission of quotations, the purchasing organization, and the purchasing group. •

Document data RFQ type: In the standard system, the default value for the RFQ type is AN (RFQ). It is the value we assume in class examples. Quotation deadline: The date by which all vendors must have sent in their quotes. RFQ [number]: Enter a number only if you use external number assignment. If you leave the field blank, the system will assign a number automatically.

•

Organizational data Enter the key code for your purchasing organization and purchasing group.

•

Default data If you make an entry in any of these fields, the value becomes the default value in each item. For example, if you enter the delivery date, then this date is suggested in each item. You can change this value at any time.

3.

Press Enter. Note: If you make the Collective number mandatory, the system will take you to the appropriate screen now. Enter the collective number and press Enter to go on to the next screen.


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Figure 67:

Note: If Collective Number is not mandatory, you will be taken to the overview screen.


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Figure 68:

The item overview screen appears. For each item, enter: •

The number of the material; if the material has a material master record. If the material does not have a master record, then leave the field for the material number blank. However, in this case, entry of the short text, material group, and order unitbecomes mandatory.

• •

4.

5.

The quantity requested. The delivery date (day, week, or month - enter the corresponding date category). • The number of the receiving plant and that of the storage location, if known. To review the detailed information for an item, first select the item. Then choose Item → Details. To review header information such as the important deadlines for the RFQ, choose Header → Details. You can also enter the collective number on this screen. Choose Header → Vendor address. Continued on next page

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Enter the vendor number and press the Enter key. The system will then take the address data from the vendor master record. If you enter the number of a one-time vendor, you must enter the complete address manually. Note: You may need several one-time vendor records (templates). They can be set up to differentiate vendors from different countries, using different currencies, languages, terms and conditions, or when accounting wants to use a different reconciliation account. 6. 7.

Save the RFQ document so that the RFQ message is created for the relevant vendor. For each additional vendor to whom you want to send the RFQ, the document. enter the vendor number and Save

Result The RFQ document is created in the SAP system. In order for the information in the RFQ to be transmitted to the vendor, the system also generates a message. How to set up the system to automatically create and transmit the proper message to the vendor is described in the configuration course, LO550 — Cross-Functional Customizing in MM.

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Entering a Quotation Against an RFQ 1.

Choose RFQ/quotation → Quotation → Maintain. The initial screen for maintaining quotations appears.

Figure 69:

2.

Enter the number of the RFQ and select ENTER. The RFQ item overview screen appears. Enter all the data the vendor supplied in the quote. Price may not be the only data change.


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Figure 70:

Hint: If you don’t remember the number, you can search using either the reports function, RFQ/Quotation → RFQ → List displays, or by using the price comparison search function, RFQ/Quotation → Quotations → Price Comparison.


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3.

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You can enter the vendor’s price per item directly on the item overview screen or on the item detail screen (see step 4). Note: Entering Prices: You can enter a vendor’s quoted prices in either of two ways: •

•

You 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 (e.g. value-added tax) are calculated separately and result in the effective price.) Or, enter the gross price in the Net price field, and maintain the conditions for the item by choosing Item → conditions. Then the system automatically replaces the gross price you entered with the calculated net price (see Help files on Maintaining Conditions). If you enter the net price for an item for which pricing conditions have been maintained, the system always replaces the price you enter with the calculated net price. A warning message draws your attention to this fact, so that you can correct the price with which the system overwrote your input if necessary.

Hint: After you access the conditions screen, the system greys out the Net price field; it becomes display only. All future changes must be made through the conditions screen.

234

4.

Choose Item → Details to enter quotation data on the item detail screen. See Note above.

5.

Save

your data.


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189

Comparing Quotations Prerequisites Before you generate the price comparison list, you need to consider the following: •

If possible, each quotation should have pricing data for the same item(s). Only then is the correct interpretation of the mean and total values possible. If quotations 1 and 2 have pricing data for item A, but quotation 3 has price information for item B only, then the system does not have enough information to accurately compare the prices of all three quotations.

Procedure 1.

You can compare the prices from all quotations received as a result of a competitive bidding process using the Price comparison list. The comparison list ranks the quotations by item from lowest to highest price.

Figure 71:

1.

Choose RFQ/quotation → Quotation → Price comparison list. The selection screen for the price comparison list appears. Continued on next page

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2.

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Enter the selection criteria for the quotations that are to be compared. •

• •

•

•

You can enter either a range of quotation numbers or, by entering the collective number, select all quotations belonging to a certain competitive bidding process. It is also possible to select by vendor number and by material number. You must specify either a range of quotation numbers or the collective number. Choose the comparison values to be used. Reference quotation: You can compare the quotations within the list with a sample quotation (perhaps last years winning quote). The system displays the percentage deviation between each quotation in the list and the sample quotation. Mean/minimum value quotation: The price comparison list can also display a "fictitious" quotation reflecting the average or minimum value of all quotations. To type the fictitious quotation,set the √ indicator for either the Mean or Minimum value quotation field. 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: + Highest value for each item is the 100% value - Lowest value for each item is the 100% value "_" Mean value for each item is the 100% value

•

Price computations: Select √ the appropriate field to specify which of the following should be taken into account in determining the comparison price: Cash discount Delivery costs Effective price

3.

Choose Program → Execute. The price comparison list is generated. Note: The price comparison list displays the price per item in the base unit stored in the material master record.


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Further Information: From the price comparison list, you can do the following: • • • • •

Display additional information about the material master record for a particular material Display additional information on the quotations in the price comparison Display a certain quotation Display a vendor master record Invoke vendor evaluation functions If you position the cursor on: –

•

A vendor, only the latter’s evaluation is displayed (in relation to the materials he is able to supply). – A material, the system generates a ranking list of all vendors that have submitted a quotation. – The quotation data (e.g. price or rank), the system will carry out a comparison of evaluations. Save the Market Price: The market price is the basis for appraising the vendor’s price level for a material and is used for vendor evaluation purposes. A market price can apply to a material or a material group. You can store a price as the market price from within the price comparison list. Position the cursor on the price you want to save and choose Edit → Save market price. Note: The details of the vendor evaluation process are taught in the Purchasing Optimization course, LO520. To find more information about vendors’ price behavior on the basis of the market price, refer to the MM Vendor Evaluation documentation (sections: Calculating the Score for Price Level (Main Criterion "Price") and Calculating the Score for Price History (Main Criterion "Price").

Conditions, One-time Vendor, Collective Number and the RFQ/Quotation Conditions are used in purchase orders to determine net price.

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The following types of conditions are used in Purchasing: • •

•

Conditions in a contract apply to all contract release orders created with reference to this contract. Conditions in a purchasing info record apply to all purchase order items that specify the material and vendor contained in the purchasing info record. Extended conditions are included in the purchase order only if the item meets the extended condition criteria. For example, you can use extended conditions to define vendor discounts or include discounts for a material type. Extended conditions are more flexible than conditions in info records or contracts in that you can define which criteria must be met if the conditions are to apply to purchase orders.

Figure 72: Conditions

Conditions: Explain what conditions are, what types there are etc. Emphasize the fact that conditions have a validity period.

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Figure 73: One-Time Vendor

You can use a single one-time vendor master record to cover a number of vendors. You normally use one-time master records for vendors you don’t expect to use again. When you use one you will be required to type in the vendor’s name and address. When the invoice comes in for posting, the vendor’s banking information will also have to be typed in manually. One-Time Vendor: Bid invitations can also be carried out for vendors that do not yet have a vendor master record in the system. Explain briefly how procurement transactions are processed for a one-time vendor.

You can create special vendor master records for vendors from whom you procure goods only once or rarely called one-time vendor master records. For example, suppose you order goods from a vendor with whom you usually do not place orders because your main vendor was not able to supply the required items. In this case, you would use a one-time vendor master record. In contrast to other master records, a one-time vendor master record is used for several vendors. The purpose of this is to avoid the unnecessary creation of an excessive number of individual vendor master records. For this reason, you may not store any vendor-specific data in a one-time vendor master record.

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When creating a one-time vendor master record, you must assign a one-time account group. This account group determines that the vendor-specific fields are suppressed. You don’t need to enter the suppressed fields data until the time a purchasing document for example, a PO) is created. Like all other master records, you can display, block, or delete one-time vendor master records. Each time you use this type of master a sub-ledger account is created for the vendor under the umbrella of the Reconciliation account.

Figure 74: Collective Number

You can link a number of RFQs that belong together with the help of the collective number. You enter the collective number in the header data of the RFQ and the system assigns it to each message you send out. This means you have to remember only one number in order to retrieve all of your RFQs and quotations during price comparisons or other analyses. The collective number can have a maximum of ten characters and can be alphanumeric. Its use can be left optional or made required. Collective Number: A collective number at header level groups together several related RFQs/quotations and makes searching for the related RFQs easier. It can also be used to search for RFQs for which quotations have not been received.

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Options for Creating RFQs

Figure 75: Function Process: Creating RFQs

You can create RFQs with or without reference to a purchase requisition, another RFQ, or an outline agreement. You maintain the organizational levels and the deadline for submission of quotations on the initial screen. If you want a Collective number it is put on the Header data screen. Next you enter information about the items you want quoted. You can send an RFQ to vendors with a master record or to one-time vendors. With a one-time vendor, you must enter the address in the RFQ. Function Process: Creating RFQs Use the slide to explain the structure of an RFQ, as well as the procedure used to create RFQs. Explain the data that is contained at header and item level. Point out that the same RFQ content can be used to create multiple documents to be sent to multiple vendors. The buyer simply updates each vendor number and address and saves. Caution them not to exit the RFQ screen until they send out all the RFQs. If they do, they have to start over again to add additional vendors.

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Quotation Processing

Figure 76: Quotation Processing

A quotation is the vendor’s response to your RFQ. It legally binds them, for a period of time, to the pricing, delivery date, and quantity information they provided for the parts they are willing to supply. In R/3 Purchasing, RFQs and quotations are a single document. You enter the data given by the vendor into the original RFQ, which is hereafter referred to as a quotation (It keeps the same document number). You can compare quotation data by using the quotation price comparison list. The quotation price comparison list shows the most reasonable vendor for each item individually and also totaled for all items (that is, it shows the best price if you buy all the items from the same vendor). While in the quotation price comparison list, you can do several different things, including: • • • •

Save the quotation data as a purchasing info record; automatically if you set a valid Info update indicator. Set a rejection indicator for quotation items you are not interested in. This enables the system to issue rejection letters. Change the quotation data. Save the mean value of the quotations as the market price. Market price is used as the basis for valuating the price level of a vendor and is called up during vendor evaluation.

You can subsequently create a purchase order with reference to a quotation.

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Quotation Processing: Explain the process of quotation processing, from price comparison to follow-up activities (e.g. ordering, creating info records with conditions). A quotation is the vendor’s response to an RFQ and it is legally binding on the vendor for a certain period of time. It contains information about pricing, total quantities and delivery dates for those items they are offering to supply. An item of a quotation may contain a delivery schedule made up of a number of schedule lines in which the total quantity is broken down into smaller quantities to be delivered on the specified dates over a certain period. An item of the procurement type External service contains a set of service specifications. The latter can be hierarchically structured. The summary view of such a hierarchical structure is referred to as an outline. The outline comprises a number of levels, each representing a level of the service hierarchy. The quantities of the quotation are set out in service lines, representing individual jobs or activities. If services cannot be defined precisely, value limits are stipulated instead of service lines. Value limits can be set for certain contracts.

Figure 77: Conditions

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Conditions are stipulations agreed to with vendors, concerning prices, discounts, surcharges, and so on. The net price in purchase orders is determined on the basis of these conditions. You can automatically maintain conditions when you create quotations, info records, outline agreements, and purchase orders, or you can do it manually. If a vendor’s prices vary according to quantity, you can enter the pricing data in the form of a price/quantity scale. Conditions in info records, contracts, and extended conditions are time-dependent conditions, that is they are usually valid for a certain period of time, referred to as the validity period. Conditions in purchase orders are time-independent conditions because they are valid in that PO only. If you want to use time-dependent conditions for quotations and scheduling agreements, you must set the time-dependent conditions indicator for the document type in Customizing. There are other files in which you can enter additional conditions, conditions that are not specific to one part, but that may cross many parts. These are called extended conditions. They provide you with the option of specifying time-dependent conditions that are independent of outline agreements and info records. These may apply to an entire material group or to a specific subcategory, or the vendor may apply a discount to everything you buy during a period of time. You can enter conditions in the document header or in the item details. Item conditions apply to one item only. Header conditions apply to all the items in the document. Conditions: Explain what conditions are, what types there are etc. Emphasize the fact that conditions have a validity period.

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Figure 78: Calculation Schema

The calculation schema provides a framework for price determination. The calculation schema defines: • • • •

Which condition types are permitted The order in which the condition types are taken into account during the calculation of the net price The condition types for which subtotals are calculated The reference step for percentage condition types

Condition types are used to describe conditions. They define how discounts or surcharges are calculated (for example, on a percentage basis or by amount). The reference magnitude for price scales is also defined via the condition type. The scale can refer to the quantity, the item value, or the freight charges. You can assign an access sequence to a condition type. The access sequence is a search strategy used to define the sequence in which condition records for a condition type are read. These tables are set up in the IMG. Note: Additional information about conditions and how to configure them can be found in the course, LO521 — Pricing in Purchasing.

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Conditions: Explain what conditions are, what types there are and so forth. Emphasize the fact that conditions have a validity period.

Demonstration: RFQ / Quotation Processing Purpose Note: Approximate time is 15 minutes. Note: Switch back to the role menu for LO020_Buyer.

System Data System: Client: User ID: Password: Set up instructions: 1. Create a RFQ Logistics → Materials Management → Purchasing → RFQ/Quotation → Request for Quotation → Create From the Initial Screen Enter Quotation deadline a Purchase Org. 1000, and a Purchase Group T##Don’t enter a plant . Enter From the Header Data screen: Enter Coll. to move to the next screen.

no.

GR##select Enter

From the Item Overview screen : Enter10 pieces of material T-RM2## for Delivery date one month from RFQ date Delivey Date. Use the Vendor Address icon form the Tool bar to access the Vendor Address screen. Enter Vendors: T-K12A##, T-K12B##, and 1950 (one-time vendor). . Save after each vendor input , the system will create seperate RFQ numbers for each vendor. When you have the three numbers use the Red X icon to leave the RFQ screens. Note: RFQ documents must be maintained separately so make note of the document number for each vendor. 2.

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Maintain the RFQ Logistics → Materials Management → Purchasing → RFQ/Quotation → Quotation → Maintain


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Enter the RFQ document numbers. Find your RFQ numbers by using the F4 matchcode help. Hint: Conditions screen must be accessed by using the Conditions icon from the Toolbar Vendor

Net Price

Conditions

T-K12A##

79

RA01/15%

T-K12B##

82

RA01/10%

1950

79

RA01/3%FRB1/100 uni

During the maintain of each RFQ look at the item details and point out the info record update field. Set the info update indicator to C Save your RFQ. Note: In release 4.6 the choice of info record update type (A, B, C) can be set in the IMG by plant. 3.

Execute a quotation price comparisonLogistics → Materials Management → Purchasing → RFQ/Quotation → Quotation → Price Comparison Enter your collective number GR## •

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Flag the √ Mean value quotation and the √ Determine effective price (deducts any cash discounts from vendor). Explain that the mean value can be saved as the market price, which is used to evaluate vendors according to price in vendor evaluation. Execute • Make changes to RFQ for Vendor T-K12A## by selecting the RFQ number and double clicking. Change the delivery date. • Reject the RFQ’s for Vendors T-K12B## and 1950 by double clicking on each RFQ and setting the Rejection indicator. Display Rejection Letter RFQ/Quotation → RFQ → Messages → Print/transmit Enter the RFQ number and Execute. Choose the RFQ number by entering a check mark in the box to the left of the ASBA. Click on the Radio button Display Message.


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Optional: Reject the most expensive vendor (by setting the rejection indicator on the item detail screen of the quotation) and display the rejection letter. Message type for rejection letters is ABSA. Note: Show the rejection indicator can also be set: globally using the path edit → Fast change to get the dialog box, then set the Rejection indicator mark √ and Enter press or in the Item overview screen in the column labelled ’R’ (you may have to scroll to the right to see it). Hint: If you get a warning that the message cannot be printed, check if a printer has been specified for the message record. Choose Purchasing → Master data → Messages → RFQ → Change. Output type NEU and key combination document type AN. Execute. Select line and click on communication. Enter output device. The same message may appear as you set the rejection indicator. The output type for that is ABSA, key combination document type AN. Enter an output device.

The students should now do the Exercise for RFQ/Quotation Processing. Allow approximately 20 minutes.

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Exercise 10: Request for Quotation (RFQ) Exercise Duration: Minutes

Exercise Objectives After completing this exercise, you will be able to: • Create a request for quotation • Enter and compare vendor quotations

Business Example Your company would like to procure material and use RFQ functionality to determine a suitable vendor.

System Data System: Client: User ID: Password: Set up instructions: 1.




Task 1: Create a Request for Quotation (RFQ) Create an RFQ using GR## for the Collective Number. Ask vendors for pricing and delivery on a base quantity of 100 pieces of material T-RM2##. You have heard of a prospective new vendor with whom you have never had any business dealings (one-time vendor)1950. You send the one-time vendor a RFQ. You send another RFQ to your previous main vendors T-K12A## and T-K12B##. 1.

Create the RFQ. Use the following information: Field Name

Data

RFQ date

Current date

Quotation deadline

Current date + 2 weeks

Purch. Organization

1000


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Field Name

Data

Purchasing Group

T## (LO020–##)

Delivery date

Current date + 1 month

Plant

(No Plant!!)

Hint: You should only specify a plant on a RFQ document if you do not intend to procure the items for more than one plant. 2.

Select the Vendor Address Icon from the Toolbar to access the Vendor Address screen. Enter the vendor address details:

Task 2: Display the RFQ Look at the standard layout of an RFQ and learn how to print it immediately. 1.

Display the RFQ for your main vendor T-K12A## as it would look if you could print it (Message) on your screen.

Task 3: Maintain Quotations You have received the quotations for your RFQs. Maintain the quotations in the system. Hint: Make sure that the info update indicator “C” is set on the detail screen for the quotation items. This ensures that an info record is created for each quotation. If an info record already exists for an item, you will update the info record based on the quotation conditions. 1.

Maintain the Vendor’s Data for your RFQ documents. You will need to maintain each RFQ document number separately. Listed below are the steps and the data required to maintain each of your RFQ documents. You will need to follow the all of the steps to maintain each Vendor’s RFQ document number. Remember to save after each document.

Task 4: Price Comparison Use the system tools to compare vendors’ quotes. 1.

Compare the prices of the quotations to determine the most reasonable supplier. Continued on next page

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2.

Select the quotations for comparison via the Collective number GR## and Purchasing organization 1000. Display the mean value quotation using the quotation price comparison list and choose the effective price by placing a check mark in these fields. Determine and record the most reasonable quotation Field name

Recorded values

Vendor Effective Price 3.

Vendor T-K12A## has just informed you that due to demand the delivery time is 6 weeks rather than 1 month.

4.

Set the rejection indicator √ for the two quotations you do not want to accept.

Task 5: Simulating the printing/sending of a rejection letter See the standard layout and process of printing a Rejection letter. 1.

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Send one of the two rejection letters. Look at the letter on the screen before you print it out. Is the letter marked as a rejection letter? That is, does it have the Message type: ABSA? If it is not, re-check the rejection indicator set in the Task 4: Compare prices, see above.


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Solution 10: Request for Quotation (RFQ) Task 1: Create a Request for Quotation (RFQ) Create an RFQ using GR## for the Collective Number. Ask vendors for pricing and delivery on a base quantity of 100 pieces of material T-RM2##. You have heard of a prospective new vendor with whom you have never had any business dealings (one-time vendor)1950. You send the one-time vendor a RFQ. You send another RFQ to your previous main vendors T-K12A## and T-K12B##. 1.

Create the RFQ. Use the following information: Field Name

Data

RFQ date

Current date

Quotation deadline


Purch. Organization

1000


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Field Name

Data

Purchasing Group

T## (LO020–##)

Delivery date


Plant

(No Plant!!)

Hint: You should only specify a plant on a RFQ document if you do not intend to procure the items for more than one plant. a)

Logistics → Materials Management → Purchasing → RFQ/Quotation → RFQ → Create Enter the following data: Initial Screen

b) c)

Field Name

Data

RFQ date

Current date (If needed, it usually defaults in.)

Quotation deadline


Purch. Organization

1000

Purchasing Group

T## (LO020–##)

Delivery date


Plant

(No Plant!!)

Enter Header Data Enter the following data: Header data Screen

d) e)

Field name

Data

Coll. no.

GR##

Enter Item Overview screen. Enter the following data: Item Overview Screen

f)

Field name

Data

Material

T-RM2##

RFQ quantity

100

Enter Continued on next page

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Select the Vendor Address Icon from the Toolbar to access the Vendor Address screen. Enter the vendor address details: a)

To enter the vendor addresses, use the path Header → Vendor address (or the address(letter) icon on the toolbar) to open a new screen. Hint: Do not exit the Vendor Address screen until after all three RFQ document number have been created. If you do exit, you will need to start over, going back through all of the RFQ create steps and using the same Collective number, to finish.

b)

Start with the one-time vendor. Enter the template number, 1950, in the Vendor field and select Enter. The system issues a message that you need to type in the Company Name and Address; it also opens the screen to allow you to do that. Type in the following data. One-time Vendor Address

c)

Title

Company

Company

Schmidt Beleuchtungswerke GmbH

Street/House Number.

Himmelgasse 7

Postal Code/City

67346 Speyer

Country/Region

DE/08

Save

Record your RFQ document number

Record RFQ document numbers RFQ document

Vendor

d) Hint: When you save a RFQ document, the system returns you to the Vendor Address screen so you can continue creating RFQ documents to other vendors.


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Enter vendor master T-K12A##. The system fills the data in from the Vendor Master record. Select Save and record the document number. Repeat this transaction for vendor masterT-K12B##Select Save and record the document number. Record RFQ document numbers RFQ document

e)

Vendor

Exit the RFQ Vendor Address Screen by using the Red X icon. When the system asks if you wish to save the document choose No.

Task 2: Display the RFQ Look at the standard layout of an RFQ and learn how to print it immediately. 1.

Display the RFQ for your main vendor T-K12A## as it would look if you could print it (Message) on your screen. a) b)

c)

RFQ/quotation → RFQ → Messages → Print/transmit In the search screen, enter the RFQ number for vendor T-K12A##. Select Execute the system will open the Message Output screen where documents are listed. To display the actual document, you must first put a √ check mark in the box at the far left of the line, then choose either Program → Display message or use the radio button Display message on the toolbar. Use the Back button to return to the Message Output screen, set the choice flag again and select Output message or use the path Program → Output message to print the RFQ. Note we are not hooked to a printer in the Training area.


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Task 3: Maintain Quotations You have received the quotations for your RFQs. Maintain the quotations in the system. Hint: Make sure that the info update indicator “C” is set on the detail screen for the quotation items. This ensures that an info record is created for each quotation. If an info record already exists for an item, you will update the info record based on the quotation conditions. 1.

Maintain the Vendor’s Data for your RFQ documents. You will need to maintain each RFQ document number separately. Listed below are the steps and the data required to maintain each of your RFQ


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documents. You will need to follow the all of the steps to maintain each Vendor’s RFQ document number. Remember to save after each document. a)

RFQ/quotation → Quotation → Maintain. Enter the RFQ document number. Enter. Note: RFQ documents must be maintained separately. You should complete all of the steps for each vendor individually.

b)

Maintain quotation: Item overview screen. Enter the gross price data from list below for each vendor. Maintain the info update indicator, select the item and use the path Item → Detail or Detail button. Check if the Info update indicator is set to C, set it if necessary. Enter the pricing conditions, select the relevant item and choose the path: Item → Conditions. Enter the Conditions.

c)

d)

RFQ data for the One-time Vendor 1950 Field name

Data

Gross price

79 UNI/pc

Condition Type RA01 (Discount from Gross)

3%

Condition Type: FRB1 (Absolute freight)

100 UNI

Delivery date

[Current date + 6 weeks]

RFQ for vendor T-K12A## (Motolux GmbH Gr.##) Field Name

Data

Gross price

90 UNI/pc

Condition type Type RA01 (Discount from Gross)

15%

RFQ for vendor T-K12B## (Rasch Gr.##) Field Name

Data

Gross price

82 UNI/pc

Condition type Type RA01 (Discount from Gross)

10%


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Task 4: Price Comparison Use the system tools to compare vendors’ quotes. 1.

Compare the prices of the quotations to determine the most reasonable supplier. a)

2.

RFQ/quotation → Quotation → Price comparison screen.

Select the quotations for comparison via the Collective number GR## and Purchasing organization 1000. Display the mean value quotation using the quotation price comparison list and choose the effective price by placing a check mark in these fields. Determine and record the most reasonable quotation Field name

Recorded values

Vendor Effective Price a)

Select Execute to generate a list. The most reasonable quotation is from: Vendor:

T-K12B##

Effective price:

71.59 UNI

Hint: If you get the same vendor but a little higher price, check that you are looking at the effective price, not the net price on your screen. 3.

Vendor T-K12A## has just informed you that due to demand the delivery time is 6 weeks rather than 1 month. a)

b)

Select the quote from this vendor and use the path Edit → Maintain quotation to access the original data screen (or choose Maintain quotation button or double-click on the quotation). Change the delivery date to the Current date + 6 weeks and Save. You are automatically returned to the Quotation price comparison screen.


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4.

Set the rejection indicator √ for the two quotations you do not want to accept. a)

You can set the rejection indicator in the item overview for any or all item(s) or on the detail screen for an item. Go directly from the quotation price comparison list to the quotations. Do not forget to Save the changes.

Task 5: Simulating the printing/sending of a rejection letter See the standard layout and process of printing a Rejection letter. 1.

Send one of the two rejection letters. Look at the letter on the screen before you print it out. Is the letter marked as a rejection letter? That is, does it have the Message type: ABSA? If it is not, re-check the rejection indicator set in the Task 4: Compare prices, see above. a)

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Same procedure as in Task 2, Display and print RFQ, above.


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Lesson Summary You should now be able to: • Create a request for quotation • Enter and compare vendor quotations

Related Information The method of configuring the field type in RFQ is taught in the course: LO550 — Cross-Functional Customizing in MM. For more information on RFQs, see http://help.sap.com

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Lesson: 211

Lesson: Purchasing Information Records

Purchasing Information Records Lesson Duration: 2.5 Hours

Lesson Overview Participants will check a previously created info record. If it doesn’t exist, they will have to create one. Then they will maintain the info record, adding scales to the pricing and other Purchasing Org. level data. Before presenting the theoretical part of this lesson, give a system demonstration. This should show participants that prices from the info record are included in subsequent purchase orders. However, you can also explain the theoretical aspects first and demo later.


Process and create purchasing info records Create an info record with reference to an RFQ Enter prices into info records and enter vendor discounts

Introduce lesson objectives and business example. Show and discuss info record. You can configure to have standard, subcontracting, pipeline, and consignment Info records. The data can be at the purchasing organization or plant level. Demonstrate how to create an info record with reference to a Quotation. Point out the pricing conditions will be in the Info record, not attached as when the record is created by a PO. Caution: Remind the participants not to try using the RFQ version document, there is no pricing data at that level and no Info Record update flag. Maintain the info record. Explain and demonstrate that an info record can be generated automatically by the SAP System when posting a PO. This demo can be made with the PO created in Unit 2, Basics of Procurement Process.

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Business Example Your Purchasing department maintains data on material-vendor relationships. This is necessary because a material can be procured from more than one vendor, and different vendors may have different conditions, freight costs, and discounts, and so forth. Your company has received information from a vendor about its prices and has to update the purchasing info records accordingly. As a member of the procurement team, you need to determine whether you can use the R/3 System to maintain vendor conditions by updating the purchasing info record.

Demonstration: Demonstration of Info Record Structure Purpose Display an info record from the list display and explain how it is structured. Point out to participants that there is general data at client level and data at purchasing organization level or purchasing organization/plant level. Note: Approximate time: 5 minutes

System Data System: Client: User ID: Password: Set up instructions: 1. Go to the List display screen, MM → Purchasing → Master data → List displays → by Material. Input your material number, T-RM2## and select execute to compile a list.

262

2.

Select an info record, perhaps the one for Vendor T-K12B##. Check √ the selection box on the left of the record, and use the Display button to see the record itself.

3.

Point out to participants that there is general data at client level (General data screen) and data at purchasing organization level is accessed by pressing the Purch. org. data 1 button. Note that there is a display field for Plant on the Purch. Organization Data 1 screen if you entered the data for a specific plant when creating the record. This is called Purchasing Organization/plant level data.


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4.

Press the Conditions button to show where the conditions are maintained. These are only relevant to the specific Purch. Org/Plant you are displaying.

5.

Show who created the info record and when. Use the path Extras → Administrative data to access the screen.

Demonstration: Info Record Maintenance Purpose Show how info records supply pricing data when creating a PO. Create a purchase order using a vendor and two materials, one with a standard price control and the other with moving average price control. Ensure that you choose the materials so that an info record exists for one material, but not for the other: Note: Approximate time 5 minutes

System Data System: Client: User ID: Password: Set up instructions: Check list display by materials for AM3–540. It should have a valid material master but may not have any Info records out there. Adjust demo accordingly. 1. Perform a list display MM → Purchasing → Master data → List displays → by Vendor of info records for vendor T-K12B##. 2.

Point out that pricing conditions have maintained for material T-RM2##

3.

Show that the price comes from the last purchase order. Vendor: T–K12B##; Material T-RM2##; (Standard price 0.30 UNI); 1000 pcs. Also T-RM2##; @ 0.50 UNI; 1000 pcs; Price defaults from info record. •

•

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While in the List display screen, select √ the info record and press button. Point out that there is no price in the Display Info record the Net price field and the Conditions button doesn’t do anything. There is no conditions pricing data inside the Info record! Show them the price comes from the last document; in this case a PO. While still in the Info Record screen use the path GoTo → Purchasing Org. Data 2 and you can see a PO number is listed. We can go one step further and select Environment → Order price history. Here we see the PO listed as the most recent document.


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Create a PO for vendor T-K12B##. Order two different parts. The first should be the one that doesn’t have an Info record; enter just the material number and a quantity, 1000 pcs. Then select Enter. The system will display a message: Net price must be greater than 0 This is because there is no info record from which to transfer the data. Enter a price; the material record price for T-RM2## is 0.30 UNI.

5.

Now enter the second item, one with an info record, and a 1000 pc. enter and the system will enter the price for you. quantity. Press Caution: Do NOT post the purchase order yet! Do it after you go through the slides.

6.

Show the students that the system links the Info record number to the item information in the PO. The path is different in the new mySAP screens and the older screens. Note: •

7.

In the transactions used in Release 4.6C screens, you go to the change/display screens (ME22N and ME23N) you scroll the item overview section to the right. There is a column which lists the Info record number.

Make it clear that you need an info record for price proposals and start presenting the slides in this unit.

Demonstration: Automatic Info Record Creation Purpose Note: Approximately 5 minutes

System Data System: Client: User ID: Password: Set up instructions: 1. Save the purchase order you created before.

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2.

Display the list of all info records for the vendor. If necessary, limit the selection so that only the two info records from the purchase order are displayed: Vendor: T–K12B##; purchasing org: 1000; plant: 1000; Purchasing group: 020.

3.

Switch from the list display to the purchase order (Environment → Purchase order) and show participants the info update indicator in the item details; or [Item details, Material data tab] in the new screens.

Figure 79: Purchasing Info Records

Purchasing info records contain concise information on a vendor and the material you procure from this vendor. It is therefore an important source of information for the buyer, enabling them to determine, via list displays, which vendors offer a particular material, or which materials can be procured from a particular vendor. They are also mandatory if you want to automate the input of pricing during PO creation.

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You can store and maintain the following data in info records: • • • •

Current and future prices and conditions (for example, freight and discounts) Delivery data (for example, planned delivery time and tolerances) Vendor data (for example, contacts) Texts, for both inhouse use and those which will be added to the messages sent to your vendors Hint: You can learn more about linking texts to message units in LO550 — Cross-Functional Customizing in MM.

When you create purchasing documents (for example, purchase orders or contracts), the system uses the data maintained in info records as default values.

Figure 80: Structure of the Purchasing Info Record

A purchasing info record contains general data that is valid for every purchasing organization or every plant. It also contains data (for example, prices and conditions) that is valid for the relevant purchasing organization or relevant plant only. You configure whether conditions are permitted at plant level. When you create a purchase order, the system searches for an info record for the purchasing organization/plant combination. If there is no such info record, the system searches for the purchasing organization only.

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In the standard system, the following type of texts are set in the purchasing info record: • •

Info record memo is an internal note or comment that shows up in the PO item but is not printed out to the vendor PO text in the purchasing info record used to describe the PO item. It is copied to the purchase order item and printed out.

You can configure other types of text. Explain the organizational levels at which the purchasing info record can be maintained. Point out that special arrangements, which are only valid for individual plants in a purchasing organization, are managed at purchasing organization/plant level. The SAP convention is to never link text boxes labelled “Notes” or “Memos” to an outbound document (message). Customers should establish some similar convention between the team members.

Figure 81: Options for Maintaining Info Records

You can maintain info records manually or automatically from quotations, purchase orders, or outline agreements.

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Explain how data is automatically updated when a purchase order is created. Examples: Conditions can be updated from quotations. The number of the last purchasing document is adopted from purchase orders and contracts.

Figure 82: Updating an Info Record Automatically

When you create or change quotations, contracts, and purchase orders, you can use the info update indicator to specify that the info record is to be created or updated. The system copies the conditions from the quotations into the info record. The document number from a purchase order or contract release order is updated as the last purchasing document. If no info record exists for the combination of vendor, material, and organizational level when you create or change a contract, the system creates an info record with the conditions from the contract. Explain that according to the settings in the system, info records can be created automatically from quotations or purchase orders.

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Figure 83: Info Update Indicator: Quotation, Outline Agreement

The info update indicator determines, whether the purchasing info record for this vendor and material is to refer to this PO item, and whether the item is to be valid for the entire purchasing organization or just for the plant. The different possible entries mean the following: A – If an info record exists for the plant level, the updating occurs at this level. Otherwise the update occurs at purchasing organization level. If no info record exists, the system creates one at purchasing organization level. B – Updating occurs at plant level if plant conditions are allowed for the plant. This means that the updating is also valid for the purchasing organization. C – Updating occurs at purchasing organization level (without plant) if it is not required that the plant has conditions. D – No updating of info records. Example: Suppose an info record has been defined at plant level (more specific than purchase organization level). You create a PO for this plant. The PO is based on the conditions in the plant info record and not on the conditions that apply to the purchasing organization. (In other words: The more specific information overrides the more general one.)

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Figure 84: Info Update Indicator: Purchase Order (ME21N)

In the 4.6 purchase order (SAP transactions ME21N, ME22N, and ME23N), the InfoUpdate indicator (found on the Material data tab in the details section) has only two possible values, on or off. The results are set in config, by plant. Here it determines whether an info record is updated or newly created. If the indicator is selected, the following cases are possible: • •

•

270

If just one info record (with or without a plant) exists, the record is updated. If no info record exists and Plant condition requirement has been specified in Customizing, an info record with a plant is created. Otherwise an info record without a plant is created. If two info records exist, one record with a plant and one without a plant, the info record with the plant is updated.


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The order price history is updated even if the InfoUpdate indicator is not set. As you see in these slides, values of the Info Update indicator vary according to the type of purchasing document in question. In quotations, contracts, scheduling agreements, and in the conventional purchase order (transactions ME21, ME22, and ME23), the InfoUpdate indicator (found on the Item details screen) can have one of four different values: • • • •

’_’ – The info record is not updated. ’A’ – If an info record exists at plant level, it is updated. Otherwise an info record at purchasing organization level is updated. ’B’ – If plant conditions are allowed for the plant, an info record at plant level is updated. ’C’ – If plant conditions are not necessary for the plant, an info record at purchasing organization level is updated.

Figure 85: Info Records and Prices

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Purchasing info records determine the prices suggested in purchasing documents in two ways: • •

Conditions: Conditions are included if they have been maintained for an info record manually or from a quotation. Last purchase order: If an info record does not contain any conditions, the system reads the number of the last purchasing document in the info record and then suggests the price from this document.

In the default values for buyers (Customizing), you can define how the system handles conditions from the last purchase order. •

•

You can define that the conditions from the last purchase order: – Are always copied – Are not copied when the price is entered manually – Are never copied IMG Menu path: MM → Purchasing → Environment data → Define default values for buyers

Demonstration: Demonstration of Condition Maintenance in Info Records Purpose Approximate time: 10 minutes.


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1.

Maintain the conditions for an info record. Include freight costs as delivery costs and maintain price scales. List displays: View info records by material T-RM2## • • • • •

Info record: T-RM2##/T-K12B##, Purchasing org. 1000 (conditions valid for all plants). Planned delivery time 5 days. Net price 30 UNI. Conditions: valid until end of year. Scale discount RA00: 40 %, > 500 pcs, 45 %, > 1000 pcs, 50 %.

•

Freight costs: FRB1 100 UNI per delivery.

List displays: •

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View info records by material T-RM2##


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Creating Info Record for Material with Master Record

Figure 86:

1.

On this screen enter the following: • • •

Vendor’s planned delivery time (used for scheduling) Responsible purchasing group Standard PO quantity (used for price determination in conjunction with price scales) Check the control data. The tolerance data and the responsible purchasing group are taken as default values from the material master record.


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Figure 87:

2.

Enter the following information on the initial screen: • • • •

Vendor number Material number Number of purchasing organization or plant Enter the number of the info record if external number assignment is used for info records. If you leave the corresponding field blank, the system assigns a number automatically. Press ENTER

and the general data screen appears.

Press ENTER and the screen showing the purchasing organization data is displayed.


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Figure 88:

3.

Enter the general data (data on vendor, order unit, origin data, supply option). You can enter the customs tariff number without a certificate category.


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Figure 89:

4.

Enter the net price. You have two options: •

•

You enter the net price per unit in the Net price field. This price includes the vendors normal discounts or surcharges only; vendor’s cash discounts for prompt payment, for example, are calculated separately. You enter the gross price in the Net price field and then maintain the pricing conditions. (To do this, choose Extras → Conditions.) The system automatically replaces the entered gross price with the calculated net price. (See also, Maintaining Conditions)


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Figure 90:

5.

Check the texts. Choose Goto → Texts to display the text overview. You can enter the info memo or the PO text. If the PO text is already defined in the material master record, it appears as a default value here. •

•

6.

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If you change the PO text from the material master record, your new text is stored directly in the info record. The changed text is suggested as the info record PO text when a purchase order is created, and can be adopted in the new PO. If you store the text in the info record unchanged, subsequent changes made to the PO text in the material master record will not be included in purchase orders. To do this, select the PO text, then choose Edit → Texts → Adopt text.

Save the info record.


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Creating Info Record for Material without Master Record Use If you wish to create an info record for a material without a master record, you must create the info record for a material group.

Procedure 1.

Choose Master data → Info record → Create. The initial screen is displayed.

2.

Enter the following information on the initial screen:

3.

Enter the vendor. Do not fill in the Material field Specify the following: •

•

To specify that the info record applies to a certain plant, enter the purchasing organization and plant or to specify that the info record is plant-independent, enter the purchasing organization only Enter the info record category; Standard, Pipeline, etc.

•

Select

ENTER and the general data screen appears.

Figure 91:


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Enter the general data (data on vendor, order unit, origin data, supply option) and also the following mandatory data: • • • •

Short description of the info record or material in the first entry field Material group to which the info record is assigned Order unit used for the material Sort string (key) which allows us to distinguish several info records that belong to a material group Enter the vendor data (if it is not already input by the system, taken from the vendor master record) the origin data, and the supply options.

5.

Select ENTER and the screen showing the purchasing organization data is displayed. You must enter the following data: • • •

Vendor’s planned delivery time (used for scheduling) Responsible purchasing group Standard PO quantity (used for price determination in conjunction with price scales) You can enter data such as tolerances allowed for underdeliveries and overdeliveries.


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Figure 92:

6.

Enter the net price. You have two options: •

•

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You enter the net price per unit in the Net price field. This price includes the vendors normal discounts or surcharges only – cash discounts for prompt payment, for example, are calculated separately. You enter the gross price in the Net price field and then maintain the pricing conditions. (To do this, choose Extras → Conditions.) The system automatically replaces the entered gross price with the calculated net price. (See Help files on Maintaining Conditions.)

7.

Check the texts. Choose Goto → Texts to display the text overview. You can enter the info memo or the PO text.

8.

Save the info record.


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Exercise 11: Purchasing Information Records Exercise Duration: Minutes

Exercise Objectives After completing this exercise, you will be able to: • · Create an Info Record with reference to an RFQ • · Create and process purchasing info records • · Enter prices into info records and enter vendor discounts

Business Example Your company has a received information from a vendor about its prices and has to update the purchasing info records accordingly. As a member of the procurement team, you need to determine whether you can use the R/3 System to maintain vendor conditions by updating the purchasing info record for the material.






Task 1: Display Info Record Look at an example info record to see the differences between records created from RFQs and those created from POs. 1.

The system automatically updated the relevant info records because you set the info update indicator when you maintained your quotations and created the purchase order. Display the Info record that was created for Material T-RM2## and Vendor T-K12B## for Purchasing organization 1000.


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Task 2: Info record list display 1.

Display all info records that are stored in the system for material T-RM2## and purchasing organization 1000. While doing so, determine the effective prices from the quotations and purchase order. Record the data here Vendor Origin of price Effective price

2.

Why was no info record created for the one-time vendor?

Task 3: Change info record 1.

The vendor T-K12A## sends you new purchasing data and conditions for material T-RM2##. Change the info record for this vendor and this material in accordance with this data. The average delivery time (planned delivery time) is 10 days. In addition, the vendor accepts only purchase orders for quantities above the minimum quantity of 50 pieces. As of today, the conditions will change as follows: Data

Date Value

Validity period:

1 year

Gross price:

85 UNI

Discount from Gross (RA01)

15% from 50 pieces upwards and 18% from 200 pieces upwards

Task 4: Questions 1.

What net price would you have to pay per piece if you wanted to order the following quantities of material T-RM2## from vendor T-K12A##?


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Fill in the Prices 20 pieces

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150 pieces


320 pieces

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Solution 11: Purchasing Information Records Task 1: Display Info Record Look at an example info record to see the differences between records created from RFQs and those created from POs. 1.

The system automatically updated the relevant info records because you set the info update indicator when you maintained your quotations and created the purchase order. Display the Info record that was created for Material T-RM2## and Vendor T-K12B## for Purchasing organization 1000. a) b)

Use the path Logistics → Materials Management → Purchasing → Master data → Info record → Display. Enter the following data on the Create Vendor: Initial Screen and then select Enter. Initial screen entries Field Name

Data

Vendor

T-K12B##

Material

T-RM2##

Purch. organization

1000

Task 2: Info record list display 1.

Display all info records that are stored in the system for material T-RM2## and purchasing organization 1000. While doing so, determine the effective prices from the quotations and purchase order.


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Record the data here Vendor Origin of price Effective price a)

2.

Use the path Master data → Info record → List displays → By material. Enter the number of the material T-RM2## and the purchasing organization 1000 on the selection screen. Select Execute button to run the report. Select the Price simulation button on the toolbar of the Purchasing Info Records for Material screen to determine the effective price. Vendor

T-K12A##

T-K12B##

T-K12B##

Origin of price

Quotation

Purchase order

Quotation

Effective price

73.44 UNI

69.84 UNI

71.59 UNI

Why was no info record created for the one-time vendor? Answer: The system does not create an info record because the one-time vendor master record is only a collective master record that is used for various one-time vendors.

Task 3: Change info record 1.

The vendor T-K12A## sends you new purchasing data and conditions for material T-RM2##. Change the info record for this vendor and this material in accordance with this data. The average delivery time (planned delivery time) is 10 days. In addition, the vendor accepts only purchase orders for quantities above the minimum quantity of 50 pieces. As of today, the conditions will change as follows:


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Data

Date Value

Validity period:

1 year

Gross price:

85 UNI

Discount from Gross (RA01)

15% from 50 pieces upwards and 18% from 200 pieces upwards

a)

Use the path Master data → Info record → Change to access the Info record in change mode. Enter the data in the following screen fields. Data for the Initial screen Vendor

T-K12A##

Material

T-RM2##

Purch. org.

1000

Data for Purchasing Organization data 1 screen Planned delivery time

10 days

Minimum quantity

50 pcs

Data for the Conditions screen Validity

Current date

To

Current date + 1 year

Condition type

Amount

PB00 gross price

85 UNI

RA01 % discount from gross

15%

To maintain the discount scale, select the condition type RA01 and choose the path Goto → Scales (or choose the Scales button). Scales for % discount from gross (RA01) Scale qty

Amount

50 pcs

15%

200 pcs

18%


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Task 4: Questions 1.

What net price would you have to pay per piece if you wanted to order the following quantities of material T-RM2## from vendor T-K12A##? Fill in the Prices 20 pieces

a)

50 pieces

150 pieces

320 pieces

You can determine the Net prices by using your PO and just changing the quantities, then select Enter. The system will calculate the price and display it in the PO. (Or you can go back to the Material List Display report and use the Simulation mode.) Net price per piece of material T-RM2## is based on the order quantity:

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50 pieces

150 pieces

320 pieces

85 UNI

72.25 UNI

72.25 UNI

69.70 UNI


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Lesson Summary You should now be able to: • Process and create purchasing info records • Create an info record with reference to an RFQ • Enter prices into info records and enter vendor discounts


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Lesson: 234

Lesson: Purchase Orders for Stock Material

Purchase Orders for Stock Material Lesson Duration: 60 Minutes

Lesson Overview This lesson will look at the creation of a PO with reference to a quotation. This will minimize errors and save overall processing time. Other topics include: ordering for different plants, monitoring POs, and maintaining change history.

Lesson Objectives After completing this lesson, you will be able to: •

Create a purchase order with reference to a quotation

There are no graphics for this section. We’ve chosen a winning quotation and will now demonstrate creating a purchase order with reference to that quotation. Do two materials on the PO, pick a material for the second one, which has an info record (we will use this later). Also demonstrate the revised document function, how the system monitors certain fields (set in the IMG) in documents already sent to the vendor and automatically creates a Revised PO message to the vendor if any of these fields are changed. In their exercise, the participants will also check if the system keeps a record of all changes made to the document.

Business Example The prices and conditions negotiated by purchasing, which are stored in purchasing info records, are displayed in a purchase order. You need to display these prices and conditions both in the PO in the system and the output of the PO that is sent to the vendor.

Demonstration: Purchase Order Creation with Reference to a Quotation Purpose Show how to create a PO with reference to a quotation and that the system monitors certain fields so it knows when to create and issue a Revised PO. These fields are selected in the IMG. Approximate time: 20 minutes. Note: Use the SAP Standard Menu.

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System Data System: Client: User ID: Password: Set up instructions: 1. Open one session and show the price comparison. Point out the most reasonable vendor (should be vendor 1001). Open a second session and show the screen where we will create a PO with reference. Follow this path to get to Trans: ME21N Materials Management → Purchasing → Purchase Order → Create → Vendor/Supplying plant known. 2.

Make sure the left column, Document Overview is open. ( If not, use the Document Overview on button.) Do a search for Requests for quotation (second line down in the dialog box). Your winning quote should be on the list that is brought up.

3.

Select your winning quote, drag and drop it from the document overview to the shopping cart. It will create one line, with a red light since there is no plant in the line. Add the plant, 1000. Hint: Point out to the students that they can drag the same line to the cart twice. That will create the two line items needed in their exercise. Then they should put in the two different plants. If the system won’t let them use one of the plant numbers, they probably made the RFQ for a specific plant. To recover, they can type the same info into a second line and order for a different plant.

4.

Type in a second item •

5.

Material AM3-540 (or another material with standard price control. This is important for later demos involving goods receipt). • Price 0.50 UNI • Discount 30% Display the purchase order and briefly explain how it is structured: •

•

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Display header details. Point out the payment conditions and incoterms. In the title of the PO screen you can see who entered the purchase order. Purchase order history: Does not exist yet (no GR or IR)


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6.

Stay in the ME21N screen and display an output (message) of the document. Use the toolbar button, Print Preview. •

•

•

•

•

Also show the yellow light indicating the message is not yet sent. Use the Messages button on the toolbar (just to the right of the Print Preview button). Send the printout to the vendor. You must return to the main screen and use the path PO → Messages → Print/transmit (Trans: ME9F). Select your document on the display list and select the Output message button. Return to the PO display screen and show the status has changed to green, indicating the message is sent. Use the message button or the pull down path Header → Messages. Convert to the PO change screen and change the quantity. Use the Message status to show that a second message was created and has a yellow light indicating it is waiting to be sent. Leave the PO screen and return to the Print/Transmit screen, look at the wording of the new message. It changed to a Revised PO, and also has notes of what was changed. Hint: If students don’t see a Revised PO during the exercise, they probably forgot to send the original.

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OPTIONAL: Switch to the general item data in the statistics and point out the reference to the quotation and the info record update flag! This is defaulting from the parameter ID EVO 04, which is maintained in configuration and can be assigned to Users by administration. Configuration of EVO 04 is in the IMG Purchasing → Environment data → Define default values for buyers.

8.

Make a new purchase order for material LO020-ROH: quantity 20 pieces. Display the printout of changes in the message output. PO → Messages → Print/transmit. Display the purchase order again to show the update of the changes at item level in the purchase order document. Select Environment → Item changes. Display the processing status in the purchase order header messages.


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Creating a PO by Copying or Referencing Use You can save time and effort when creating or changing a purchase order by copying an already existing one or adopting items from an existing requisition, RFQ, or contract.

Procedure 1.

Use the path Purchase order → Create → Vendor/Supplying plant known (ME21N). The initial screen appears.

Figure 93:

2.

If you know the item number and document number you want to reference you can just scroll the Item Overview section to the right until you find a column with that document name as its heading. ENTER. The system will retrieve Type the numbers in and select the information for you.

3.

If you don’t know the document number, you can look it up in the Document Overview section (left hand column) of the screen. Note: If it isn’t open, select the button on the left of the toolbar, which is labeled Document overview on. Continued on next page

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When the column is open: • • •

Click on the Selection variant icon on the left side of the Overview toolbar. Click on the category of document you want compiled to open the search screen. Enter the search criteria and select the Execute button. The system will compile a list and display it in the column.

Figure 94:

4.

Copy the individual items or entire PO into the PO. There are several ways to do this: •

Drag and Drop: Click on the Item or document and drag it into the shopping cart in the top left of the work screen.

•

Adopt: Highlight the item or document and select transfer the data.

Adopt to

5.

If required, change the individual items on the item detail or overview sections of the screen.

6.

Save

the document.


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The purchase order document is created in the SAP system. So that the information in the purchase order can be transmitted to the vendor, the system also generates a message for the PO. Hint: How to set up messages and to set up for automatic message determination is taught in LO550 — Cross-Functional Customizing in MM.

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Exercise 12: Purchase Orders for Stock Material Exercise Duration: Minutes

Exercise Objectives After completing this exercise, you will be able to: • Create a Purchase Order with reference to a Quotation

Business Example The prices and conditions negotiated by Purchasing, which are stored in purchasing info records, are displayed in a purchase order. This information should also be displayed in the output of the purchase order you send to the vendor.






Task 1: Create a purchase order with reference to RFQ Create a Purchase order with reference to an RFQ and test how the system notifies vendors of changes to the PO. 1.

For plants 1000 (Hamburg) and 1200 (Dresden), you need 100 pieces of the material T-RM2##, headlamp extra bright-##. With reference to the most reasonable quotation (T-K12B##), create a purchase order for the purchasing organization 1000 (IDES) and plant 1000 (Hamburg). The system proposes all the data contained in the quotation, such as the quantities and conditions.

2.

Change the second line.The quantity for plant 1200 (Dresden) to a quantity of 1000 pieces. The other data is the same as that used for item 10 (standard headlamp).

3.

Make sure that the Info update indicator is set for both order items. Continued on next page

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Now Save your purchase order. What document number is assigned? Document Type

Document number

Purchase Order

Task 2: Determine the status of the message 1.

Display the purchase order and determine whether it has already been issued as a message. If the message has not yet been sent, output the document and then check the status of the message again.

Task 3: Change the Purchase Order Change the Purchase Order to test how the system monitors change and automatically creates and sends a Revised PO. 1.

The sales employee responsible for this material has informed you by phone that the price has been reduced. The gross price for material T-RM2## in this purchase order is now 80 UNI. The remaining conditions are unchanged. Change your purchase order accordingly.

Task 4: Display the Purchase Order Display the purchase order and answer the following questions. 1.

Which user created the purchase order?

2.

Which user changed the order item?


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3.

When were the order items changed?

4.

What has been changed?

5.

Where in the system is the RFQ number linked with the purchase order item stored?

6.

Is there a purchase order history for both items? Give reasons for the result.

Task 5: Display the changed purchase order as a message

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Solution 12: Purchase Orders for Stock Material Task 1: Create a purchase order with reference to RFQ Create a Purchase order with reference to an RFQ and test how the system notifies vendors of changes to the PO. 1.

For plants 1000 (Hamburg) and 1200 (Dresden), you need 100 pieces of the material T-RM2##, headlamp extra bright-##. With reference to the most reasonable quotation (T-K12B##), create a purchase order for the purchasing organization 1000 (IDES) and plant 1000 (Hamburg). The system proposes all the data contained in the quotation, such as the quantities and conditions. a)

b) c)

d)

Use the path Logistics → Materials Management → Purchasing → Purchase Order → Create → Vendor/supplying plant known to open the screen. Open the left column by selecting Document Overview On button. button; it is the left Now we can choose the Selection variant most button in the Document Overview toolbar. Select it and you will get a dialog box listing the different types of documents we can pull up. Select Request for Quotations. The system will take you to a search screen. Enter your Purchasing group and select Execute. Click on the RFQ number that belongs to your winning quote and drag it to the shopping cart image in the top left of the work screen. The data will be transferred into the PO. You can do this twice, once for each plant. Hint: You should have a red light on each line, because there is no Plant number. If one line has no red light, you probably put a plant into the quotation and can’t enter the second plant here.

e)

Enter the plant number for each item. See below. Item Number

Plant

10

1000

20

1200


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2.

Change the second line.The quantity for plant 1200 (Dresden) to a quantity of 1000 pieces. The other data is the same as that used for item 10 (standard headlamp). a)

3.

Make sure that the Info update indicator is set for both order items. a)

4.

Change the qty. of 100 pieces, that appeared as a default value, to 1000. Check the rest of the data.

To check the Info Update indicator, we must look at the bottom section of the screen, Item detail, and pick the tab labeled Material data;

Now Save your purchase order. What document number is assigned? Document Type

Document number

Purchase Order

a)

Select Save for your Purchase Order. Then record the document number.

Task 2: Determine the status of the message 1.

Display the purchase order and determine whether it has already been issued as a message. If the message has not yet been sent, output the document and then check the status of the message again. a)

b)

c)

Use the path Purchase order → Display to open the display screen. Use the Document overview section and search for your purchase orders (My Purchase orders). To display the required document, double-click on the number. To find out whether your purchase order has already been sent as a message, refer to the Header data on the Status tab. In the upper left corner is a printer icon; the words next to it say Not sent or Sent. For more detailed information on the message processing, choose the path Goto → Messages (or choose the Messages button on the toolbar). If you want to display the purchase order as a message or if you need to send your message, use the Back button to return to the main screen. Choose the path Purchase order → Messages → Print/Transmit. In the overview, select your document and use the Output message button to send it.


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Task 3: Change the Purchase Order Change the Purchase Order to test how the system monitors change and automatically creates and sends a Revised PO. 1.

The sales employee responsible for this material has informed you by phone that the price has been reduced. The gross price for material T-RM2## in this purchase order is now 80 UNI. The remaining conditions are unchanged. Change your purchase order accordingly. a) b) c)

Use the path Purchase order → Change to access the proper screen. Choose the purchase order from the Document overview display by double-clicking on it. Change the price to 80 UNI. You will have to access the gross price of each item through the conditions table (Item details tab). Then Save.

Task 4: Display the Purchase Order Display the purchase order and answer the following questions. 1.

Which user created the purchase order? Answer: In the title bar, you can see which user created the purchase order.

2.

Which user changed the order item? Answer: If you need more information on the changes made to the order items, select the required item(s) and use the path Environment → Item changes. For information on the next item you have selected, use the Next item button (or the path Goto → Next item).

3.

When were the order items changed? Answer: Follow the directions above to access item details.

4.

What has been changed? Answer: Follow the directions above to access item details.

5.

Where in the system is the RFQ number linked with the purchase order item stored? Answer: The RFQ number is stored in the item overview.

6.

Is there a purchase order history for both items? Give reasons for the result. Answer: Since there have been no transactions against this purchase order, none of the items have a purchase order history. History starts being recorded when the first goods receipt or invoice is entered for a purchase order item. Continued on next page

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Task 5: Display the changed purchase order as a message

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Lesson Summary You should now be able to: • Create a purchase order with reference to a quotation


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Lesson: 247

Lesson: Stocks, Valuation, and Goods Receipt

Stocks, Valuation, and Goods Receipt Lesson Duration: 60 Minutes

Lesson Overview This lesson will explore where and how you can set up the system to send stock to inspection at goods receipt. You will also learn how to transfer material between unrestricted, blocked and quality. You will see how the general ledger account postings are handled for both standard valuated materials and moving average items and how the system satisfies the basic document concept required by standard accounting principles. You will also be exposed to more about the stock overview report.


Explain the purpose of documents for goods movements Perform Stock Overview displays Analyze the valuation effect from a goods receipt on both standard and moving average materials Post a goods receipt into quality inspection stock and release the quality inspection stock

Show the students the various levels at which we can set a default flag to have material sent to Inspection. Show them the Stock Overview report and how a goods receipt posting is handled by the Automatic Account Assignment system. Make sure they understand the Material/Accounting document concept.

Business Example Material delivered to your company is posted to quality inspection stock first. After it has been quality tested, it is released for use. As goods movements can affect the values of the stock accounts in Financial Accounting, you will need to test which of the valuation procedures the R/3 System supports is not appropriate for your company.

Introduction The document principle applies in IT-based Inventory Management. A document is proof that a transaction involving stock changes has taken place. It is stored in the system.

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Figure 95: Documents for Goods Movements

What is IT-based Inventory Management? It seems to be an abbreviation of computer supported. The principle is expressed as: Even in a computer-supported inventory management system, the accepted accounting principle of no posting without a document applies. According to the document principle, a document must be generated and stored in the system for every transaction or event that causes a change in stock. When posting a goods movement in the SAP system, the following documents are created: Hint: Try to make the student aware of the principle because it is one of their questions at the end of the Lesson. Material document: In the Inventory Management system, when a goods movement is posted, a material document is generated that serves as proof of the movement and as a source of information for any applications that follow. A material document consists of a header and at least one item. The header contains general data about the movement (for example, its date). Each item describes one movement. Accounting document: If the movement is relevant for Financial Accounting (that is, if it leads to an update of the G/L accounts), an accounting document is created in parallel with the material document. In some cases, several accounting documents are created for a single material document. This might be the case, for example, if you have two material

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document items with different plants that belong to different company codes. The G/L accounts involved in a goods movement are updated through an automatic account assignment. Changing documents: Once you have posted a goods movement, you can no longer change the document. You can enter only additional information in the document, such as the reference to the original document, or a comment on the event. If you want to reverse the movement or change the quantity of material moved, you must enter a new document. A material document is created in the R/3 System as proof of a transaction involving stock changes. If the goods movement is relevant to valuation, the system creates at least one accounting document in addition to the material document. Goods movements (goods receipts, goods issues, or transfer postings) are relevant to valuation when your company’s Accounting Department is affected by them. For example, a goods receipt posting of a raw material usually results in an increase in the stock value of your current assets. If the raw material is transferred only within one plant, no postings are made in Financial Accounting. As soon as a goods movement is posted, the quantities, material, movement type, and organizational level can no longer be changed. You can make changes only to some text fields. If you want to correct errors, you have to create a new document. You have to cancel or reverse the incorrect document beforehand. The material stocks are displayed in the stock overview for each individual organizational level. Quantities posted for a particular stock type are totaled for each organizational unit.

Stock Overview You can display the stock overview for batches/valuation types and special stocks (for example, consignment material), as well as for the client, company code, plant, and storage location.

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Figure 96: Stock Overview

The stock overview is a static display of stocks. This means that you can view the current stock situation only. You cannot see future planned goods receipts and goods issues in this list.However, you can call up additional information functions via the menu bar. There are several display versions for stock overviews.Those versions vary in the way the stock types are listed and in the order they appear. In Customizing for Inventory Management, the system administrator defines which stocks are displayed in each column and the order in which they are displayed. The valuation area is the organizational level at which stock is valuated. Plant and company code are two possible valuation areas in the R/3 System. When stock is valuated at plant level, you can valuate a material in different plants at different prices. When you valuate stock at company code level, the valuation price of a material is the same in all of a company’s plants (that is, in a company code).

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Explain that the stock overview is the static display of stocks, showing the current stock situation. Explain how the stocks sum up from the storage location level all the way up to the client level. Note: For future planned goods receipts and goods issues, the system provides information in the stock/requirements list (a dynamic list). There are several variants in the Stock screen and the basic information can be changed in the IMG.

Valuation Areas

Figure 97: Valuation Area

SAP recommends that you valuate material at plant level. Valuation at plant level is mandatory if you want to use either of the Production Planning or Product Cost Accounting components, or if your system is a Retail system. Caution: Defining the valuation level in Customizing is a fundamental setting and is very difficult to reverse.

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Explain the difference between valuation at company code level or plant level. Emphasize the importance of how the valuation area is configured and that it cannot be reversed in the IMG alone. Make it clear that SAP recommends valuation at plant level and explain why. • •

Example: If you valuate materials at company code level, you cannot carry out product or job-order costing. Draw a diagram to explain valuation area at plant and company code level and the effect on pricing.

You can use the valuation class to combine materials for assigning to G/L accounts so that you do not have to manage a separate stock account for each material.

Figure 98: Valuation Class

You maintain the valuation class in the Accounting view of the material master record. The valuation class allowed for a material depends on the material type, and can be configured in Customizing. In automatic account determination, the R/3 System works with valuation classes. The valuation class is used to determine which stock account is to be updated upon goods movements.

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Explain the significance of the valuation class in automatic account determination and point out that this is set in the material master record and depends on the material type.

Material Valuation Valuation of goods receipts depends on the price control procedure you set in the material master record. In the R/3 System, material valuation can be carried out according to the moving average price procedure (V price) or the standard price procedure (S price).

Figure 99: Material Valuation Procedures

In the standard price procedure (price control “S”), the system carries out all stock postings at a price defined in the material master. Variances are posted to price difference accounts. In the moving average price procedure (price control “V”), the system valuates goods receipts with the purchase order price and goods issues with the current moving average price. The system automatically calculates the latter upon every goods movement by dividing the total value by the total stock quantity. Differences between the purchase order price and the invoice are posted directly to the relevant stock account if there is sufficient stock coverage.

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Explain briefly the difference between materials with moving average price control and standard price control. Moving average price: • •

The goods receipt is valuated at price from purchase order. Goods issues are valuated at current moving average price.

Standard price: •

The valuation price is fixed for a particular period of time. Hint: For Training in Latin America or other Inflationary Environments: Participants in high-inflation countries often think that the standard price procedure makes little sense. Explain that it does make sense in countries with low inflation indices, e.g. for low-value materials with little price variance over time. Especially when using the Actual Costing/Material Ledger it is required to use the standard price as a preliminary valuation during a period in order to calculate an average price based on actual costs at period-end. Hint: Instructor – price procedures. The following example can help you to explain the difference between the two procedures: Stock

312

Std. price Value

MA price

Value

Starting 100 pcs situation PO:100 pcs @ 2.40 UNI/pc

2 UNI/pc

200 UNI 2 UNI/pc 200 UNI

GR: 100pcs

2 UNI/pc

200 UNI 2.20 UNI

100 pcs


440 UNI

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The Document Concept

Figure 100: Material and Accounting Documents

The material document consists of a document header and at least one item. The header information includes the posting date and the name of the person who created the document. At item level, the material document records the quantity, the material, and the storage location to which the material is posted in the associated plant. The accounting document records the effects of goods movements on the accounts. The document header contains general data, such as the document date, posting date, posting period, and document currency. The G/L account numbers and the associated amount posted are recorded at item level. The material and accounting documents are independent documents. You can identify the material document by the material document number and the material document year. The accounting document can be clearly identified by the company code, accounting document number, and fiscal year. The company code in which the accounting document is posted is taken from the plant in which the goods movement takes place. Describe the differences between the information contained in material documents and accounting documents. You may want to prepare a flipchart or transparency for putting down the data of the following demo for materials LO020-ROH and AM3-540.

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Demonstration: Valuation Data in the Material Master Record Purpose Approximate time: 5 minutes

System Data System: Client: User ID: Password: Set up instructions: 1. Display the valuation data for the materials from the last purchase order created and make a note of the price control, stock quantity, and the stock value on a transparency. Put it on the overhead projector. •

Display the stock overview of materials T-RM2## and T-RM1##, plant 1000 before goods receipt.

Display the material master, accounting view, for the same materials. Write down stock value and price control.

You set the material valuation procedure you want to use in the accounting view of the material master record. In the R/3 System, you can carry out material valuation using the standard price procedure or moving average price procedure.

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Figure 101: Valuation of Goods Receipts

Irrespective of the valuation procedure set in the material master record, the system increases the stock quantity by the relevant goods receipt quantity when you post a goods receipt into stock. Explain the accounting effect of a goods receipt with S and V price materials.

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Figure 102: Example: Posting at Standard Price

The initial stock quantity and value are displayed in the Initial situation column. For statistical purposes, the system also calculates the moving average price for materials that are valuated at the standard price. This means that you can spot major differences between the current procurement price and the standard price and react accordingly. The system calculates the total stock value of materials with standard price control as follows: total value = standard price (per base unit of measure) x total stock qty. Give a detailed explanation of the postings to accounting caused by the different transactions with a material valuated according to the standard price procedure.

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The system updates the stock value and the stock quantity with the standard price. It updates the GR/IR clearing account with the purchase order price. It posts the difference between the purchase order price and the standard price to the price difference account. Give a detailed explanation of the postings to accounting caused by the different transactions with a material valuated according to the moving average price procedure.

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The system clears the GR/IR clearing account with the purchase order price. It updates the vendor account with the invoice price. It posts the difference between the purchase order price and the invoice price to the Income from price differences account. It does not change the total stock value.

Figure 105: Example: Posting at Moving Average Price

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The initial stock quantity and value are displayed in the Initial situation column.


The system updates the stock value, stock account, and GR/IR clearing account with the purchase order price. It recalculates the moving average price on the basis of the new stock value. Moving average price (per base unit of measure) = total value/total stock

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The system clears the GR/IR clearing account with the purchase order price and updates the vendor account with the invoice price. It posts the difference between the purchase order price and the invoice price to the stock account and recalculates the stock value based on the invoice price. The system redetermines the moving average price based on the new stock value. If the stock quantity is less than the invoice quantity, the system posts part of the difference to the Expenditure/income from price differences account instead of the stock account

Demonstration: Goods Receipt Into Quality Inspection Stock Purpose Use role LO020_GOODS_RECEIPT for the demos of this unit. Take the last purchase order created and post the goods receipt into quality inspection stock. Approximate time: 10 minutes


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Password: Set up instructions: 1. Select the item. On the tab Wk, select storage location 0002 and movement type Quality inspection. Evaluate the material document and accounting document and explain the posting lines. You should point out the provision accounts for the freight costs in particular and explain the difference between posting goods receipts for materials with standard price control and materials with moving average price control. Show the participants the stock overview for both materials and explain how the list is organized. •

2.

Display and explain material and accounting documents. Branch to stock overview, branch to material masters. • Display the valuation data for T-RM2## and T-RM1##. Write down stock quantities and values, and compare them with the situation prior to goods receipt. Display the purchase order history and PO item information. Internal Note for the Old GR Transaction: According to information provided by the developer, the following stock types (to be found in the F4 help of the Stock type indicator field) are identical: • • •

X and 2 S and 3 _ and F

Transfers You can post only withdrawals for consumption from unrestricted-use stock. From quality inspection stock and blocked stock, you can withdraw only a sample, scrap a quantity, or post an inventory difference. If you want to withdraw goods from blocked stock or quality inspection stock, you have to carry out a transfer posting into unrestricted-use stock first. This also applies to stock transfers. When you carry out a transfer posting, the stock type, batch number, or material number is changed. A transfer posting may also involve an actual physical stock transfer.

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Figure 108: Transfer Postings

The system creates a material document so that the transaction can be entered. The system only creates accounting documents if a change in valuation is involved (for example, stock transfer from plant to plant). You use the movement type to control the stock types involved in the transfer. For all withdrawals for consumption other than from unrestricted-use stock, a transfer posting is required. Example: Withdrawal from quality inspection to unrestricted-use stock. The movement type controls the transfer posting. Note that an accounting document is created in addition to a material document for transactions that affect valuation only, e.g. plant to plant.

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Effects of a Goods Receipt

Figure 109: Effects of a Goods Receipt

The diagram once again shows an overview of all the key effects of a goods receipt referencing a purchase order. Explain how stock quantities and values are updated in the material master record for materials with moving average price control. Explain how they are posted in the accounting view of the material master record. Summarize the main effects of goods receipt: • • • • •

A material document is created to show the goods movement. An accounting document is created for valuated goods movements. Stock quantities and values are updated. The price is updated in the material master record for materials with moving average price control. G/L accounts are updated (debit to stock account, credit to GR/IR clearing account). Since vendor invoices are not usually available at goods receipt, the GR/IR account shows the liability to the vendor that is expected at invoice receipt.

The purchase order history is updated.

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Demonstration: Transfer Posting Purpose Show how transfer postings are made. Show the Movement type path and point out the reverse transaction requires you to choose Reverse tfr. mvmt right at the start. Approximate time: 5 minutes. Hint: Check your stock levels before you demo.

System Data System: Client: User ID: Password: Set up instructions: 1. Display the stock overview for both materials again. 2.

3. 4.

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For each material, carry out a transfer posting for the complete quantity into unrestricted-use stock., MVMT MB1B. • Movement type: 321, plant 1000 • T—RM2## 1000 pcs from storage location 0002 -> 0001 • T—RM1## 1000 pcs from storage location 0002 -> 0001 Display the stock overview. Display the material document and point out to participants that the system did not create an accounting document. Ask them why.


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Goods Receipt 1.

From the Inventory Management menu, choose Logistics → Material Management → Inventory management → Goods movement → Goods receipt → For purchase order → GR for Purchase Order (MIGO). This takes you to the initial screen for this function:

Figure 110:


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2.

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Enter the data on the initial screen: • •

Enter the header data; for example, document note number. Select the movement type you want, if the standard system default, Movement type 101, is not what you want. You can enter movement type using the Distribute Qty. button. Note: If you want to do this using the basic default settings, it must be changed before entering the PO number because this change is not applied to the current screen activities, it takes effect on the next start. Enter the movement type in the field to the right of the PO number field. In Release 4.6 C you can change default of movement type through a new field at the right of the top line of data, across from the PO number entry field. Example: If the total quantity is to be posted to GR blocked stock, select Movement type 103 (PO to GR blocked stock).

•

Enter the purchase order number. In addition, you can enter the order item number to restrict selection of the purchase order items. Note: You can also search for your PO number if you don’t know it. Use F4 or the pull-down arrow to access the item selection list.

3.

Select the purchase order items to be copied, put a √ in the Items OK box. If necessary, you can change data in the selected items on this screen.

4.

If you use a Movement type that has different Stock type choices, select the one you want; for example, Unrestricted use, Quality Inspection, or blocked stock. Hint: It is also possible to split the quantity sending to different stock statuses.

5.

Enter the storage location to be used.

6.

Post

the document.

Students should now do the exercises for Goods Receipt Approximate time: 45 minutes.

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Exercise 13: Posting Goods Receipts into Quality Inspection Exercise Duration: Minutes

Exercise Objectives After completing this exercise, you will be able to: • Post a goods receipt into quality inspection stock and release the quality inspection stock. • Perform Stock Overview displays. • Analyze the valuation effect from a goods receipt on different valuation types (standard v. moving average). • Explain the material and financial document concept.

Business Example Various transactions in Materials Management are relevant to Financial Accounting and, therefore, particular goods movements affect the values of the stock accounts in Financial Accounting. The project team is testing which valuation procedures the R/3 System supports. Material delivered to your company is posted to quality inspection stock first. After it has been quality tested, it is released for use.






Task 1: Tables for the Exercises In the exercises in this section, you will make a note of, compare, and analyze the different data for the material stocks and valuation prices. Work through the exercises in order, using the tables on the next page to make your notes.


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Table (1): Stock overview T-RM2##

Plant 1000 Hamburg

Unrestr.- use

Quality insp.

Open order qty.

Plant 1200 (Dresden)

Unre- Quality Open str.- use: insp order qty

Task 2 (before GR) Task 11 (After GR) Task 13 (After trans. posting) Table (2): Accounting data T-RM2##, plant 1000 Price control: Moving avg. price

Standard price

Total stock

Total value

Task (before GR) Task (after GR)


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Table (3): Accounting data T-RM2##, plant 1200 Price control: Moving avg. price

Standard price

Total stock

Total value


Task 2: Stock Overview 1.

Analyze the Stock overview for the material T-RM2## in plants 1000 and 1200. Make a note of the stock levels for plants 1000 and 1200 in table (1) (Stock overview).

Task 3: Display material master record 1.

Display the view for Plant stock and the Accounting 1 view for material T-RM2## for plants 1000 and 1200.

2.

Compare the plant stock data with the data from the previous task.

3.

Use the data from the Accounting view to fill in tables (2) and (3): Accounting data for plant 1000 and plant 1200.

Task 4: Enter goods receipt for plant 1000 1.

In plant 1000, storage location 0001, unrestricted-use stock, enter a goods receipt for the purchase order from Exercise 12, Task 1. Enter the vendor’s Delivery Note number, for future reference. Refer to the delivery note for other data that is required. Ignore the goods receipt for plant 1200 (Dresden) for the time being. Write down the material document number:

____________________

Task 5: Display material document (1) 1.

Display the material document that was created as a result of the goods receipt. Choose the corresponding accounting document. Which accounts are updated for what amount?


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Item

Account

LO020

Amount

Account Short Text

1

2

2.

Exit the accounting document and go directly from the material document to the material master record. Choose the accounting view and add to Table (2) the current accounting data for plant 1000.


Now enter the goods receipt for plant 1200, storage location 0001, in accordance with the following delivery note. Make note of the material document number:

____________________


Display the material document that was created as a result of the goods receipt. Choose the corresponding accounting document. Which accounts were posted for what amount? Item

Account

Account Short Text

Amount

1

2

3


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Task 8: Compare posting results Task 9: Display purchase order Task 10: Stock overview Task 11: Transfer material to unrestricted-use stock Task 12: Display material document for transfer posting 1.

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Check also that the system has updated the stock overview correctly. You can also fill out table (1) if you wish.


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Solution 13: Posting Goods Receipts into Quality Inspection Task 1: Tables for the Exercises In the exercises in this section, you will make a note of, compare, and analyze the different data for the material stocks and valuation prices. Work through the exercises in order, using the tables on the next page to make your notes. Table (1): Stock overview T-RM2##

Plant 1000 Hamburg

Unrestr.- use

Quality insp.

Open order qty.

Plant 1200 (Dresden)

Unre- Quality Open str.- use: insp order qty

Task 2 (before GR) Task 11 (After GR) Task 13 (After trans. posting) Table (2): Accounting data T-RM2##, plant 1000 Price control: Moving avg. price

Standard price

Total stock

Total value

Task (before GR) Task (after GR) Continued on next page

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Table (3): Accounting data T-RM2##, plant 1200 Price control: Moving avg. price

Standard price

Total stock

Total value


Task 2: Stock Overview 1.

Analyze the Stock overview for the material T-RM2## in plants 1000 and 1200. Make a note of the stock levels for plants 1000 and 1200 in table (1) (Stock overview). a)

b)

Use the path Logistics → Materials Management → Inventory Management → Environment → Stock → Stock Overview to reach the Stock Overview selection screen. On the selection screen, first enter the material number T-RM2## and plants 1000 and 1200. Accept the defaults and use the Execute button to carry out the report. In table (1), make a note of the stock values. Hint: You will have to use the scroll arrows at the top of the screen to see all of the columns, for exemple, Open order qty. Many of these columns will have zero quantity since we are just starting to use this part in our exercises.

Task 3: Display material master record 1.

Display the view for Plant stock and the Accounting 1 view for material T-RM2## for plants 1000 and 1200. a)

2.

While in the stock overview, you can go directly to the material master record by placing the cursor on the line for plant 1000 or plant 1200 and choosing the pull down path Extras → Display material.

Compare the plant stock data with the data from the previous task. a)

Select the Plant stock view while you are in the material master file.


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3.

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Use the data from the Accounting view to fill in tables (2) and (3): Accounting data for plant 1000 and plant 1200. a)

Select the Accounting 1 view. Write down the price control procedure, moving average price, standard price, total stock, and total value for plant 1000 into (table 2) and plant 1200 into (table 3).


In plant 1000, storage location 0001, unrestricted-use stock, enter a goods receipt for the purchase order from Exercise 12, Task 1. Enter the vendor’s Delivery Note number, for future reference. Refer to the delivery note for other data that is required. Ignore the goods receipt for plant 1200 (Dresden) for the time being. Write down the material document number: a)

____________________

Use path Goods Movement → Goods Receipt → For Purchase Order → PO Number Known. Search for your PO number via F4 help, or, enter it manually. Copy only the first item from the purchase order. Under Header data, tab page General, enter the document date and the delivery note number. In the item overview, enter the storage location 0001.The Item details section must be closed to enter this data in the item overview.


Display the material document that was created as a result of the goods receipt. Choose the corresponding accounting document. Which accounts are updated for what amount?


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Item

Account

Amount

Account Short Text

1

2

a)

2.

Switch from the goods receipt entry screen to the display mode. Choose your material document from the document overview. The Docmt Info (Header data) tab page contains the FI documents button, which you use to go to the accounting document. Item

Account

Account Short Text

Amount

1

300000

Raw materials 1

7200

2

191100

GR/IR clearing account ext.

7200 (-)

Exit the accounting document and go directly from the material document to the material master record. Choose the accounting view and add to Table (2) the current accounting data for plant 1000. a)

To go to the material master record, select the Material field in the GR display screen, then enter plant number in the dialog box (if required). In table (2), make a note of the values that have changed in Financial Accounting.


Now enter the goods receipt for plant 1200, storage location 0001, in accordance with the following delivery note. Make note of the material document number: a)

____________________

Same procedure as Task 4, above.


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Display the material document that was created as a result of the goods receipt. Choose the corresponding accounting document. Which accounts were posted for what amount? Item

Account

Account Short Text

Amount

1

2

3 a)

Same procedure as Task 5, above. In Table (3), notice the values that have changed in Financial Accounting. Item

Account

Account Short Text

Amount

1

300010

Raw materials 2

8000

2

191100

GR/IR clearing account ext.

7200 (-)

3

281000

Amount from price diff. ext.

800 (-)

Task 8: Compare posting results Task 9: Display purchase order Task 10: Stock overview Task 11: Transfer material to unrestricted-use stock Task 12: Display material document for transfer posting 1.

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Check also that the system has updated the stock overview correctly. You can also fill out table (1) if you wish.


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Lesson Summary You should now be able to: • Explain the purpose of documents for goods movements • Perform Stock Overview displays • Analyze the valuation effect from a goods receipt on both standard and moving average materials • Post a goods receipt into quality inspection stock and release the quality inspection stock


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Lesson: 274

LO020

Invoice Verification for Stock Materials Lesson Duration: 30 Minutes

Lesson Overview In this lesson, you will post an invoice for a stock material using Logistics Invoice Verification functionality (LIV). You will also be introduced to processing unplanned delivery costs. You’ll explore the postings that are made in FI when using standard and moving average materials.


•

Explain and demonstrate the use of Logistics Invoice Verification (LIV) functionality for invoice posting with both planned and unplanned delivery costs Display the accounting document and material document associated with LIV invoice posting

Introduce lesson objectives and business example. Show and discuss Logistics Invoice Verification functionality, especially for those with a version prior to 4.0. Demonstrate Logistics Invoice Verification processing steps. Show how to post Unplanned delivery costs, and perhaps, show how to see if there are planned costs.

Business Example When an invoice is received, your company posts it with reference to the relevant purchase order. This procedure checks that the prices and quantities listed in the invoice are identical to the purchase order prices and quantities. Price differences for items with standard price control are then posted to a price difference account and items with moving average price control are posted to a stock account. As a member of the procurement team, you will check whether the R/3 System supports your requirements.

Introduction Logistics Invoice Verification creates a separate accounting document in addition to the invoice verification document. This is used in Financial Accounting to settle the invoice, but can also be processed by distributed systems or external systems.

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Lesson: Invoice Verification for Stock Materials

Figure 111: Logistics Invoice Verification

Note: For further information on Logistics Invoice Verification, refer to the Materials Management Help documentation on Invoice Verification, Logistics Invoice Verification.

Posting Delivery Costs The SAP system has functionality to work with planned and unplanned delivery costs. Explain the difference between both.

The R/3 System differentiates between planned and unplanned delivery costs. You arrange planned delivery costs in advance with the vendor, a carrier, or the customs office and enter them when creating the purchase order. At goods receipt, provisional accounts are posted, which are then cleared when the invoice is received. Unplanned delivery costs are delivery costs you do not know about when you are creating the purchase order. You do not enter these until you receive the invoice. If required, the valuation carried out at goods receipt is corrected.

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Figure 112: Delivery Costs

The advantage of planned delivery costs is that they are included in the valuation of a material at goods receipt or, for purchase orders with account assignment, the system can debit the account assignment object. The system carries out subsequent debits when the invoice is received only if the delivery costs in the invoice differ from those planned. Explain in detail which accounts are affected by the posting of planned delivery costs at goods receipt and invoice receipt.

The system clears the GR/IR clearing account with the purchase order price and updates the vendor account with the invoice price.

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Figure 113: Account Postings for Unplanned Delivery Costs

•

Material with moving average price control: –

•

The system posts the difference between the purchase order price and the invoice price to the stock account and recalculates the stock value based on the invoice price. – The system redetermines the moving average price based on the new stock value. – If the stock quantity is less than the invoice quantity, the system posts part of the difference to the Expenditure/income from price differences account instead of the stock account. Material with standard price control: –

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The system posts the difference between the purchase order price and the invoice price to an Expenditure/income from price differences account.


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Demonstration: Optional – Invoice Processing (planned delivery costs) Purpose Post the vendor invoice in Logistics Invoice Verification with reference to the purchase order used in the demonstration of purchase order processing. Enter the planned delivery costs for the vendor, along with the material items. Note: Approximately 15 minutes

System Data System: Client: User ID: Password: Set up instructions: 1. Transaction MIGO • • •

• • •

Gross amount: Amounts depend on your PO. Use tax code 1I 10%. Enter selection vendor: 1001 on the Extras tab and the PO document number. Invoice Verification: When retrieving the Item details for your reference document, change the selection in the Indicator field to either 3 item cost and planned delivery costs, or just 2 Planned delivery costs. Press enter. If costs were planned they will appear on the item detail. View the item list and explain the material costs and delivery costs per line item as planned in PO. Evaluate the invoice verification document or accounting document. Check the purchase order history.

Demonstration: Entering Unplanned Delivery Costs Purpose Post the invoice for your PO, including unplanned delivery costs for a different freight supplier (that is, different freight supplier from the supplier in the purchase order).

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Approximate time: 10 minutes

System Data System: Client: User ID: Password: Set up instructions: 1. In Logistics Invoice Verification (Trans: MIRO), enter the document date and your purchase order number. 2.

Gross: Amounts depend on your PO – include an extra 220 UNI for freight in the amount field and an extra 20 UNI for the tax in the tax amount field (depends on amount used).

3.

On the Details tab, enter the amount of the unplanned freight without tax (200 UNI) • • •

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Select Enter to confirm. Simulate the document. Save when you’re done.


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Invoice Posting Procedure 1.

Choose Logistics → Materials Management → Logistics Invoice Verification → Document Entry → Enter Invoice. The Enter Invoice screen appears.

2.

Enter the required document header data on the tab pages listed below: •

•

• •

•

• •

Basic data: you enter information such as: – the document date – the posting date – the gross invoice amount – tax information Payment: On this tab page, you enter information such as the baseline date for payment, the terms of payment, and the bank details. Details: enter information such as unplanned delivery costs and a different invoicing party. Tax: enter information such as the tax amounts and the tax code or select Calculate tax. If you select Calculate tax, the system calculates the tax amount based on the tax codes in the invoice items. Contacts: After you have allocated the invoice, the system determines the processors of the business transactions that have taken place so far. Note: On this tab page, you can enter a memo that could be useful for further processing of the invoice. Amount split: You can divide up the final amount of an invoice or credit memo here, for example, according to different payment methods or terms of payment. If you have entered a payment method here, this entry takes priority over the payment method in the terms of payment. Note: Maintain the settings for amount splitting in the Implementation Guide (IMG) for Financial Accounting under the menu path Financial Accounting → Financial Accounting Global Settings → Company Code → Enter Global Parameters.

•

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Withholding Tax: You can find further information in the Implementation Guide (IMG) for Financial Accounting under the menu path Financial Accounting → Financial Accounting Global Settings → Withholding Tax.


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Entering Invoices with Purchase Order Reference 1.

Choose Logistics → Materials Management → Logistics Invoice Verification → Document Entry → Enter Invoice. The Enter Invoice screen appears.

2.

Enter the header data from the vendor invoice as required.

3.

Allocate the invoice. Choose what kind of document number you will enter. Choices include: • • • • •

Purchase order/scheduling agreement Delivery note Bill of lading Service entry sheet Vendor Transportation service agent

4.

Enter the document number in the next field (to the right) or if you allocate the invoice to a vendor or a transportation service provider, enter the vendor number.

5.

Enter data as required.

6.

Choose More allocation criteria if you are posting against several different documents.

7.

Choose

Execute.

The system displays the invoice items and vendor data that match the allocation. Note: You can overwrite incorrect entries, such as the purchase order number, without entering new header data or leaving the application. After entering the new purchase order number, choose Enter. The system updates the invoice items and vendor data to match the changed allocation.

Have students do the Exercises on Invoice Processing. Approximate time: 20 minutes

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Exercise 14: Invoice Verification for Stock Materials Exercise Duration: Minutes

Exercise Objectives After completing this exercise, you will be able to: • ·Post an invoice using Logistics Invoice Verification (LIV) functionality • ·Display the accounting document and material document • ·Post unplanned freight costs

Business Example When an invoice is received, your company posts it with reference to the relevant purchase order. This procedure checks that the prices and quantities listed in the invoice are identical to the purchase order prices and quantities. Price differences for items with standard price control are then posted to a price difference account and items with moving average price control are posted to a stock account. As a member of the procurement team, you will check whether the R/3 System supports your requirements.






Task 1: Enter an invoice 1.

Use Logistics Invoice Verification to enter the invoice for the purchase order for the headlamp extra bright-## with vendor T-K12B##. Use the following vendor invoice as a reference. Note that freight charges are shown on the invoice. Enter these as unplanned delivery costs. Hint: Enter unplanned delivery costs on the Detail tab page. Continued on next page

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2.

Choose your purchase order number for vendor T-K12B## via F4 Help or enter it directly.

3.

Post the invoice. Invoice Number:

__________________

Task 2: Display a material master record Task 3: Display the invoice document 1.

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Display the invoice document and go from there to the purchase order history by selecting the PO number. Or call up the purchase order directly, select the item and choose PO history tab.


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Solution 14: Invoice Verification for Stock Materials Task 1: Enter an invoice 1.

Use Logistics Invoice Verification to enter the invoice for the purchase order for the headlamp extra bright-## with vendor T-K12B##. Use the following vendor invoice as a reference. Note that freight charges are shown on the invoice. Enter these as unplanned delivery costs. Hint: Enter unplanned delivery costs on the Detail tab page. a)

b)

Use the path Logistics → Materials Management → Logistics Invoice Verification → Document Entry → Enter Invoice to access the LIV screen. Enter the following data: Basic data tab page Document date

Current date

Reference

RE-B1##

Amount

16060

Tax amount

1460

Detail tab page Unplanned delivery costs

200

2.

Choose your purchase order number for vendor T-K12B## via F4 Help or enter it directly.

3.

Post the invoice. Invoice Number: a)

Use the Save

__________________ or Post key.


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Task 2: Display a material master record Task 3: Display the invoice document 1.

350

Display the invoice document and go from there to the purchase order history by selecting the PO number. Or call up the purchase order directly, select the item and choose PO history tab.


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Lesson Summary You should now be able to: • Explain and demonstrate the use of Logistics Invoice Verification (LIV) functionality for invoice posting with both planned and unplanned delivery costs • Display the accounting document and material document associated with LIV invoice posting


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Unit Summary

LO020

Unit Summary You should now be able to: • Create a request for quotation • Enter and compare vendor quotations • Process and create purchasing info records • Create an info record with reference to an RFQ • Enter prices into info records and enter vendor discounts • Create a purchase order with reference to a quotation • Explain the purpose of documents for goods movements • Perform Stock Overview displays • Analyze the valuation effect from a goods receipt on both standard and moving average materials • Post a goods receipt into quality inspection stock and release the quality inspection stock • Explain and demonstrate the use of Logistics Invoice Verification (LIV) functionality for invoice posting with both planned and unplanned delivery costs • Display the accounting document and material document associated with LIV invoice posting

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Test Your Knowledge

287


What is the maximum number of vendors you can send an RFQ to?

2.

On which of the three screens we used to create an RFQ did we enter the Collective number? Choose the correct answer(s).

□ □ □ □

A B C D

First screen, Initial screen Second screen, Header data Third screen, Item Overview None of the above

3.

What are the most important functions of the purchasing info record?

4.

How are info records used during purchase order pricing?

5.

In the standard R/3 System you can have more than one info record for the same material vendor combination. Determine whether this statement is true or false.

□ □

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True False


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Test Your Knowledge

6.

LO020

In which of the following levels can we maintain pricing differences in an info record? Choose the correct answer(s).

□ □ □ □ □ □ 7.

A B C D E F

Client level Purchasing Organization level Plant level Storage Location level A, B, and C Only at B and C

The system will monitor changes to selected fields after a PO has been sent to the vendor, and automatically issue a revised PO if the data is changed. Determine whether this statement is true or false.

□ □ 8.

True False

If you don’t input a specific plant in an RFQ, you can use the quotation pricing to create a purchase order for any plant the purchasing organization is responsible for. Determine whether this statement is true or false.

□ □ 9.

True False

Which of the following can you not reference when creating a PO? Choose the correct answer(s).

□ □ □ □ □

A B C D E

Requisition Quotation Purchase order Information record Contract

10. You can set a flag in the master if that material should always be received into quality inspection. Fill in the blanks to complete the sentence.

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11. What is the material and financial document concept?

12. Which of the following stocks are not displayed in the standard Stock Overview? Choose the correct answer(s).

□ □ □ □ □

A B C D E

Stock in transfer (plant to plant) Unrestricted Quality Inspection Pipeline (PIPE) Consignment

13. At goods receipt, the Standard price valuated material value is posted to stock but might have a variance. Determine whether this statement is true or false.

□ □

True False

14. We can enter both

and delivery costs in R/3.

Fill in the blanks to complete the sentence.

15. The transaction code for LIV is MIGO. Determine whether this statement is true or false.

□ □

True False

16. How many Accounting documents are made by posting one Invoice for a PO with nine items on it? Choose the correct answer(s).

□ □ □ □

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A B C D

One Two None Nine


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Answers 1.

What is the maximum number of vendors you can send an RFQ to? Answer: There is no limit to how many you can send out.

2.

On which of the three screens we used to create an RFQ did we enter the Collective number? Answer: B In the training system, the Collective number field on the header screen, is mandatory.

3.

What are the most important functions of the purchasing info record? Answer: Info records hold data such as pricing, text, and delivery time for a specific material vendor combination. In addition, info records can be used to display lists of materials a vendor supplies, or vendors for a specific material, with the extra ability to compare both net or effective prices. If info records exist, a user can display purchase order price history.

4.

How are info records used during purchase order pricing? Answer: If a material has an info record, the system looks to see if any pricing conditions exist and copies them into the PO. If none are found in the info record, the system copies the material unit price from the last purchase order. If neither is found you will have to enter the price manually.

5.

In the standard R/3 System you can have more than one info record for the same material vendor combination. Answer: True You can set up in the IMG to use info records for buying stock parts, and also for Consignment, Pipeline or Subcontracting.

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Test Your Knowledge

6.

In which of the following levels can we maintain pricing differences in an info record? Answer: F Client level data exists in an info record but doesn’t include pricing. There is never any pricing listed at the Storage location level.

7.

The system will monitor changes to selected fields after a PO has been sent to the vendor, and automatically issue a revised PO if the data is changed. Answer: True Any changes made before the PO message is sent just change the document, but after sending, the change causes a revised message to be created and sent. The fields that are monitored are set up in the IMG.

8.

If you don’t input a specific plant in an RFQ, you can use the quotation pricing to create a purchase order for any plant the purchasing organization is responsible for. Answer: True Not entering a plant allows the buyer to create the PO item referencing the RFQ for any plant.

9.

Which of the following can you not reference when creating a PO? Answer: D An info record is not really referenced when creating a purchase order. However, the SAP system will copy pricing and other information from the info record automatically.

10. You can set a flag in the material master if that material should always be received into quality inspection. Answer: material We can set a flag in the material master if a particular material should always go to quality inspection.

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11. What is the material and financial document concept? Answer: It’s the accepted accounting principle that there should never be a posting without proper documents being created. According to that principle, a document must be generated and stored in the system for every transaction/event that causes a change in stock. In the SAP Inventory Management system, when a goods movement is posted, a material document is generated that serves as proof of the movement and as a source of information for any applications that follow. Furthermore; if the movement is relevant for Financial Accounting (that is, if it leads to an update of the G/L accounts), an accounting document is created in parallel to the material document. 12. Which of the following stocks are not displayed in the standard Stock Overview? Answer: D True Pipeline (PIPE) material can never be in Inventory. 13. At goods receipt, the Standard price valuated material value is posted to stock but might have a variance. Answer: True At goods receipt we use our PO pricing to determine total value to be posted and it could be a different price than the material master standard. 14. We can enter both Planned and Unplanned delivery costs in R/3. Answer: Planned, Unplanned Remember you have to change the display choice during the allocation process or you won’t know there are planned costs. 15. The transaction code for LIV is MIGO. Answer: False MIRO is the transaction for Logistics Invoice Verification. MIGO is the new transaction for posting a goods receipt.

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Test Your Knowledge

16. How many Accounting documents are made by posting one Invoice for a PO with nine items on it? Answer: A One is the answer here. The LIV invoice can have an almost infinite number of items on it. An invoice can sometimes have two accounting documents, but that is taught in LO515 Invoice Verification.

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Unit 5 Procurement of Consumable Material

295

Explain to the students that when consumables are purchased, the PO will be set up differently, the GR activity will behave differently, and the financial and accounting impact will be different.

Unit Overview Manual purchase requisitions are introduced in this unit. Manual purchase requisitions are converted into purchase orders, and the procurement cycle will be completed. The new unit introduces the new type of purchase order, especially for consumables.

Unit Objectives After completing this unit, you will be able to: • • • • • • • •

Describe the differences between the procurement of stock material and consumable material Create a purchase requisition for consumables Create a purchase order with reference to a purchase requisition Post a goods receipt for a consumable material with reference to the purchase order Explain the differences between stock and consumption statistics for goods receipts into stock and goods receipts into consumption Post invoices for a consumable material using Logistics Invoice Verification Create a blanket purchase order Enter an invoice for a blanket purchase order using Logistics Invoice Verification

Unit Contents Lesson: Purchase Requisitions ...............................................363 Demonstration: Purchase Requisitions..................................369

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Unit 5: Procurement of Consumable Material

LO020

Procedure: Creating a Purchase Requisition – Consumable Items .376 Procedure: Enter the estimated cost of an item without a Material Master ........................................................................383 Exercise 15: Purchase Requisitions .....................................385 Lesson: The Procurement Process for Consumable Materials ...........393 Demonstration: Purchase Order Creation with Reference to a Purchase Requisition...................................................................398 Demonstration: Goods Receipt ..........................................399 Demonstration: Logistics Invoice Verification ..........................400 Procedure: Creating a PO by Copying or Referencing ................402 Exercise 16: Purchase Order with Reference to Purchase Requisition...................................................................405 Exercise 17: Goods Receipt ..............................................409 Exercise 18: Invoice Verification.......................................... 411 Lesson: Blanket Purchase Orders............................................417 Demonstration: Blanket Purchase Orders ..............................421 Procedure: Create blanket purchase order .............................426 Procedure: Post an invoice against a Blanket PO using Logistics Invoice Verification .........................................................428 Exercise 19: Blanket Purchase Orders ..................................431

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Lesson: 297

Lesson: Purchase Requisitions

Purchase Requisitions Lesson Duration: 1.5 Hours

Lesson Overview In this lesson you will be introduced to the purchase requisition. Purchase requisitions are different from the other documents because they are for internal use. Since this unit also deals with the purchase of consumable materials, we will define that term and create the requisition for consumable materials.


Describe the differences between the procurement of stock material and consumable material Create a purchase requisition for consumables

This unit deals with the procurement process for consumption purposes. Participants should know how the procurement of consumable material differs from that of stock material in terms of how quantity and value are updated. In the procurement process, purchase requisitions are created (including those created manually), which Purchasing then has to convert into purchase orders. In Release 4.0, blanket purchase orders were introduced. This lesson details the significance of purchase requisitions and emphasizes that a purchase requisition is an internal request from a user department for materials or services. The Purchasing department then converts this into a purchase order. There are several procedures for converting purchase requisitions into purchase orders. For teaching purposes, this unit demonstrates how to manually convert a purchase requisition, as this demonstrates more clearly the individual steps involved. But you should still point out that you can also use list processing functions to convert purchase requisitions (this is dealt with in detail in LO520 — Purchasing Optimization).

Business Example You need to procure consumable materials for you company. These are materials that do not go into stock.

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Introduction Purchase requisitions are internal documents you use to request your Purchasing department to procure a particular quantity of a material or a service for a particular date.

Figure 114: Purchase Requisitions

Purchase requisitions are either created manually by the person or department responsible or automatically by MRP. When you create a purchase requisition for materials that have a material master record, the R/3 System supports you when you enter data by transferring data in the material master record into the purchase requisition. Purchasing converts the purchase requisition into a request for quotation (RFQ), purchase order, or outline agreement.

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Consumable Materials

Figure 115: Consumable Material

Consumable materials debit different account assignment objects depending on the account assignment category specified. The account assignment category determines which category of account assignment is to be debited and which account assignment data you have to prepare.

Figure 116: Account Assignment Objects

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If you choose the account assignment object K (cost center) in the purchase requisition when you procure consumable materials, the system requires the G/L account number of the consumption account and the cost center for which the material is to be charged. This data is entered on the account assignment data screen (Item details section of the document). In Customizing, you can set up to have the system automatically propose the number of the G/L account that is to be debited. If you choose the account assignment object A (asset) in the purchase requisition when you procure consumable materials, you have to enter the asset number on the account assignment data screen. The system automatically determines the G/L account to be debited from the asset number. You cannot enter it manually. When procuring consumable materials that do not have a material master record, you have to enter the following information, as well as the account assignment category: • • •

Short text (description) Material group Order unit

Figure 117: Procurement for Consumption

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Special material types have been set up for consumable materials. Requisitions and POs, and so forth, must have an account assignment entered since the value is not posted into Inventory at goods receipt time. The standard configuration of the R/3 System contains the following material types for consumable material: •

•

Non-valuated material (material type UNBW): This type of material is managed on a quantity basis, but not on a value basis. This is advisable for materials that are low in value, whose stocks have to be monitored (example: operating instructions). Non-stock material (material type NLAG): You cannot manage these goods either on a quantity basis or on a value basis. For consumable materials that are required frequently, you can store the information required to create purchasing documents (example: texts and units of measure).

Figure 118: Stock Material vs. Consumable Material

When the system creates a purchase requisition automatically, a user program (example: MRP or Order management) determines the material, purchase order quantity, and the delivery date. If required, the purchase requisition is automatically assigned to an account.

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Figure 119: Sources of Purchase Requisitions

Account assignment category U (unknown): If you do not know the account assignment object for which the material is being procured when the requirement coverage request is created, you can use account assignment category U in the purchase requisition. You do not have to enter any further account assignment details.

Figure 120: Creating a Purchase Requisition

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Purchase requisition items with material master record: When you create a purchase requisition item, the system takes the valuation price from the material master record if the material is valuated. You can use this valuation price for a value-related release procedure. If a release strategy has been defined, you cannot create a purchase order with reference to this purchase requisition until the latter has been released. Purchase requisition items without material master record: The system cannot suggest a valuation price for materials that do not have a material master record (or for consumable materials with a material master record). The person who creates the purchase requisition has to manually enter the valuation price.

Figure 121: Multiple Account Assignment (e.g. Cost Centers)

Demonstration: Purchase Requisitions Purpose Approximate time is 15 minutes.


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1.

LO020

Create a purchase requisition Document type: NB

Figure 122:

• •

Use transaction ME51N or path Purchasing → Purchase requisitions → create. Check the upper left corner of the work area and confirm that the screen is set for Purchase req. (NB type, first of the Purch. req. listings) Hint: If the NB is not displayed in the standard system, you can turn it on in the Customizing of local layout → Options → Expert tab.

2.

Show basic entry process by ordering a stock material for stock without account assignment. •

Enter Material:T-RM3##, 10 pcs, Plant: 1000 Note: Select Enter and the system will fill in the price data, and so forth. You can see that in the Item Details section, Valuation tab.

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Figure 123:

• •

Enter a Requirement tracking number. Exercise uses GR##. Enter the requisitioner’s name. Exercise uses IH##. Note: You can enter these in the item details, Contact person tab.

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LO020

Figure 124:

3.

The second item will show how to enter data for an item changed to Account assignment K, a charge to cost center. • •

4.

5.

372

Enter K in the account assignment column. Material 99-100, 10 Liters, (the system will bring in price of 2 UNI per liter). • Press enter and we will get a red light, indicating some data is missing. Click on the red light and show the system requires a cost center assignment. Enter cost center 1000 on the account assignment tab [which the system brings to the front of the Item details view]. You can point out the G/L account that was suggested by the system. A third item with multiple account assignment to cost centers 1000 or T-L## and with GR non-valuated, without material master, using material group 006. Now show an item with multiple cost assignment and no material master number.


November 2001

LO020


Account assignment

K

Item description

Photocopier

Unit of measure

Pc.

Material group

006

When you select Enter, the system will ask for an account assignment.

Figure 125:

•

Choose whether you will set the Distribution field to distribute by percent or quantity. The default is usually to distribute by quantity; use that in the demo. NOTE on Release 4.6 C. If you enter more than one account assignment item, you no longer need to enter the quantity. The system will automatically distribute the requested quantity (from the item overview line) equally among the lines you enter. If you subsequently change the requested quantity on the item overview, the quantity is modified in the associated account assignment lines. However, if you change the quantity or percentage of the account assignment items, the system can no longer perform the distribution automatically.

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For example, you have requested 90 office chairs that you have assigned equally to three cost centers. However, because you now require 120 office chairs, you change the requested quantity on the item overview. The system automatically changes the distribution so that 40 office chairs are now assigned to each cost center. But if you had set/changed the distribution from equal to some other, like 45 to one center, 10 to another and the balance, 35, to yet another, the system cannot do subsequent changes. It will, however, give you a warning that the quantity in the Item Overview line doesn’t match your distribution. •

You can enter the first cost center in the field or leave it until you’re in the Multiple accounting view. (Up through Release 4.6B you had to enter a cost center before going into the multi screen.) Select the Multiple acct. assignment screen button located several lines above the Cost center field. Note: After the screen opens the icon changes since it is single assignment. now used to go to

•

Enter the following data for the cost distribution of the photocopier: Cost center 1000 and T-L##. When you press Enter the system will divide the cost 50/50%

• •

• •

Enter a valuation price of 300 UNI per piece. Explain the functions of the indicators or buttons: – Multiple acct. Assignment / Single Account Assignment – Repeat on/off – Distribution indicator – Goods receipt, Invoice receipt, GR non-valuated Save the document and record the number. Display the document. Go to the Valuation tab and show that the flag for GR non-valuated has been set automatically by the system. Hint: You don’t have to leave the Create req. screen. Select the Other requisition button and check the requisition number there. It should be the one you just made. If so, press the Enter button. (If not, type in your number and press enter). It changes the screen into display mode and opens a button to switch to Change mode.

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6.

November 2001

While the requisition is on Display, show the statistical data on the Status tab in the item details. Point out the status is N Not processed and that the quantity ordered is 0.


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LO020

Creating a Purchase Requisition – Consumable Items 1.

Consumables require an Account Assignment to be entered for the item. Choose Purchasing → Requisition → Create (ME51N). The initial screen appears.

2.

Check the document type is set to Purchasing Requisition (NB document type), change it if necessary. Note: There are other types of requisitions you may want to use. Ex: You can specify that Purchasing is to enter into a longer-term purchase agreement with a vendor (these are referred to in the SAP System as outline agreements) on the basis of the purchase requisition. If you do so, Purchasing cannot issue a purchase order against the requisition: it can only set up such an agreement (a contract or scheduling agreement). To do this, select (RV) Outl. agmt. requisn. document type in the Order Type (Purchasing) field (located in the top left corner of the work area). Hint: The NB (or RV, and so forth) might not show on your screen. It depends on the settings made in Customizing of local layout → Options → Expert.


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Figure 126:

3.

Enter (or change) the personal and default settings data, if needed. Use the appropriate button to access your choices. Enter the relevant data, such as your Purchasing Group, Requisitioner, Requirement tracking number, Account assignment, and, any data you use regularly and would like to avoid typing each time.


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Figure 127:


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4.

On the Item Overview section, enter the required data for each item (sometimes you may want to change the default data for an item) in the appropriate column. • • • • •

Account Assignment category Number of the material to be ordered Purchasing group (buyer) responsible for ordering the material (Purch. Group) Requested quantity Delivery date Note: If Purchasing is to set up an outline agreement, you will not be able to specify a delivery date.

•

The number of the receiving plant (Plant column) and the storage location (if known).

•

Select

• •

Account Assignment category Name of the item/material to be ordered, entered in the short text field Unit of measure Purchasing group (buyer) responsible for ordering the material Requested quantity Delivery date The number of the receiving plant (Plant column) and the storage location (if known).

• • • • • • 5.

Select

Enter.

Enter.

signal will Since an account assignment was used, a red light display at the left of the line. Virtually every assignment category requires some additional information. In some cases you can set up (in the IMG) to have the G/L account number appear as a default value; usually you will still need to enter additional information. Example: In the case of items charged to a cost center you will need to enter the cost center(s). Other codes may require the Project number, Asset number, and so forth. Select the red light , or the Show messages button on the toolbar to see what problems exist. Enter the appropriate information.


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6.

LO020

Cost Center assignment-single cost center • • •

The system assigned the G/L account, 400000 (configured to the code K cost center). Several lines below the G/L field we see the Cost center field. Enter the cost center number in the field. Save the purchase requisition.

Figure 128:

7.

Cost Center assignment-multiple cost centers • •

The system assigned the G/L account, 400000 (which had been configured to the code K, cost center). Several lines above the Cost center field, there is a Multiple acct button, select it to open the split accounting assignment screen. Note: After the screen opens the icon changes since it is now used to go to single assignment.


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Figure 129:

•

You can enter the first cost center before or after you press the Multiple Assign button. In the Multiple assignment screen you enter: 1.

2.

Distribution type: Are you distributing the item by pieces or percents? Change the Distribution field setting if the default isn’t what you want. If you chose 1. Distrib. on quantity basis, you can enter each of the quantities and cost center numbers in the fields. You can also change open default field data like the G/L account number and so forth. Hint: If you are going to divide the item equally (by either quantity or percent) between the cost centers you don’t have to enter the quantities/percents – the system will do it for you. Furthermore, if you change the item overview quantity later, the system will redistribute the new quantity. But, if you create a non-equal distribution, the system can’t do the updating. It will give a warning message when changes are made. Continued on next page

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•

8.

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If you chose 2. Distribution by percentage, you can enter each of the percentages and cost center numbers in the fields. You can also change open default field data like the G/L account number and so forth.

Enter the estimated cost of items without a material master.


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311

Enter the estimated cost of an item without a Material Master 1.

You may want to use a release strategy (approval process) on the purchase requisition process, or want requestors to provide an estimate of the price of new items. For these reasons the standard R/3 System is set up to display the default price on the Accounting 1 view of items with material masters into the requisition. For items that don’t have master data, the system requires an estimated price. Note: This is a configuration item. If you don’t want the price to be required, you can change it. If the cost exceeds the level set in a strategy, the system blocks it from being processed until it is approved.

2.

If the system issues the message, Please enter Valuation price, you can enter the price on the Valuation tab of the item details.

Figure 130:

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LO020

Students should now do the exercises on Purchase Requisitions: Allow approximately 25 minutes.

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Exercise 15: Purchase Requisitions Exercise Duration: Minutes

Exercise Objectives After completing this exercise, you will be able to: • Create and process purchase requisitions for consumable material • Analyze the current processing status of the purchase requisitions

Business Example You work in internal Plant Maintenance and report material requirements to the Purchasing department via purchase requisitions. Purchasing processes your requisitions and initiates the steps required. Your department needs sensors and a special testing instrument. You have already maintained a material master record for the sensors because you require these on a regular basis. You have not created a material master record for the special testing instrument. You need to procure both materials are to be procured directly for cost center(s).





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Task 1: Create purchase requisitions for materials The Plant Maintenance department at IDES requires 5 pieces of the sensor-## T-RM3## and a Testing instrument-##, for which you have not created a material master record in the system. Both materials are to be procured for plant 1000 (Hamburg) and directly for cost centers. The requisitioner IH## uses the requirement tracking number GR##. Create a purchase requisition for the required materials. Use the following information for the materials. 1.

A material master record exists for material T-RM3##. Therefore, you have to enter only the material number and the required quantity. The system proposes the remaining data from the material master record. The sensors are to be procured for two different cost centers; that is, you have to use Multiple account assignment with distribution according to quantity: 3 pieces for cost center 4100 and 2 pieces for cost center 4110. Hint: To go from the single account assignment screen to the Multiple multiple account assignment screen, choose the account assignment button (upper left) on the account assignment screen. On the Account Assignment screen for this purchase order item, accept the G/L account that is suggested for the consumption posting and enter the cost center.

2.

For the second item, enter the description testing instrument-## in the material Short text field, the Purchasing group T## (LO020-##) and the material group for Miscellaneous. Schedule the delivery for the same date as the delivery of the sensors. The valuation price of the testing instrument is 525 UNI. Hint: You can define release procedures for purchase requisitions. Among other things, these can be based on item value. The item value is the product of the requested quantity and the valuation price in the material master. Therefore, you have to specify a valuation price for materials that do not have a master record. Accept the G/L account the system proposes. Cost center 4100 is debited for the costs of the tool. Write down the purchase requisition number. Continued on next page

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Requisition number

_________________

Task 2: Display purchase requisitions for a requirement tracking number 1.

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Display a list of the purchase requisitions for your requirement tracking number.


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Solution 15: Purchase Requisitions Task 1: Create purchase requisitions for materials The Plant Maintenance department at IDES requires 5 pieces of the sensor-## T-RM3## and a Testing instrument-##, for which you have not created a material master record in the system. Both materials are to be procured for plant 1000 (Hamburg) and directly for cost centers. The requisitioner IH## uses the requirement tracking number GR##. Create a purchase requisition for the required materials. Use the following information for the materials. 1.

A material master record exists for material T-RM3##. Therefore, you have to enter only the material number and the required quantity. The system proposes the remaining data from the material master record. The sensors are to be procured for two different cost centers; that is, you have to use Multiple account assignment with distribution according to quantity: 3 pieces for cost center 4100 and 2 pieces for cost center 4110. Hint: To go from the single account assignment screen to the Multiple multiple account assignment screen, choose the account assignment button (upper left) on the account assignment screen. On the Account Assignment screen for this purchase order item, accept the G/L account that is suggested for the consumption posting and enter the cost center. a)

Use the path Logistics → Materials Management → Purchasing → Purchase Requisition → Create. Check the screen is set to: Document Type:

Requisition [NB]

Select the Default values button on top of the item overview section and enter the following data to appear as default values in each line.


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Default data for items

b)

Field name

Data entry

Acct assgmt cat.

K

Plant

1000

Requisitioner

IH##

Req. tracking no.

GR##

Enter the following data for the first item, the Cost center will have to be entered in the Item Details (bottom of the page) section. Item 10

c)

Material

T-RM3##

Quantity

5 pcs

Cost center

4100

In the top left of the Account Assignment tab, there is a button labeled Multiple Account Assignment ; press it to change the display. Now fill in the two lines of data as listed below: Split the Account Assignment Field name

Data

Qty

3

Cost center

4100

G/L account

400000

Qty

2

Cost center

4110

G/L account

400000

Distribution indicator 1

Distribute on Qty. basis [1]

GR

√

GR non-valuated

√

IR

√


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LO020

For the second item, enter the description testing instrument-## in the material Short text field, the Purchasing group T## (LO020-##) and the material group for Miscellaneous. Schedule the delivery for the same date as the delivery of the sensors. The valuation price of the testing instrument is 525 UNI. Hint: You can define release procedures for purchase requisitions. Among other things, these can be based on item value. The item value is the product of the requested quantity and the valuation price in the material master. Therefore, you have to specify a valuation price for materials that do not have a master record. Accept the G/L account the system proposes. Cost center 4100 is debited for the costs of the tool. Write down the purchase requisition number. Requisition number a)

_________________

Continue entering data, as above. Item 20 Material description

Testing instrument-##

Qty

1 pc

Delivery date

Same as item 10

Purchasing group

Same as item 10

Material group

00107

Valuation price

525 UNI

G/L account

400000

Cost center

4100

Item Category

K


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Task 2: Display purchase requisitions for a requirement tracking number 1.

Display a list of the purchase requisitions for your requirement tracking number. a)

November 2001

Use the path Purchase Requisition → List Displays → General. Enter your requirement tracking number, GR##, and Execute the report. To display the purchase requisition, double-click on the requisition item or select the item and choose Environment → Display requisition.


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Lesson Summary You should now be able to: • Describe the differences between the procurement of stock material and consumable material • Create a purchase requisition for consumables


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Lesson: 320

Lesson: The Procurement Process for Consumable Materials

The Procurement Process for Consumable Materials Lesson Duration: 60 Minutes

Lesson Overview In the procurement process, purchase requisitions are created, which Purchasing then has to convert into purchase orders. You will test the process of creating a PO with reference to a purchase requisition for consumables. You’ll then run through the standard sequence of goods receipt and invoice posting to see what account posting differences occur. Finally, you’ll verify that the system keeps track of how much material is consumed.


Create a purchase order with reference to a purchase requisition Post a goods receipt for a consumable material with reference to the purchase order Explain the differences between stock and consumption statistics for goods receipts into stock and goods receipts into consumption Post invoices for a consumable material using Logistics Invoice Verification

This lesson deals with the procurement process of consumption materials, PO create, GR, and Invoice posting. Show the participants how the procurement of consumable material differs from that of stock material in terms of how quantity and value are updated. In previous versions we broke this process into several sections, now we consolidate the entire process into one smooth flow.

Business Example The Purchasing department now has the task of converting the purchase requisition for the consumable material into a purchase order. A goods receipt can also be entered for a consumable material, as well as an invoice.

Converting Purchase Requisitions The buyer responsible normally converts purchase requisitions into purchase orders.

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Figure 131: Converting Purchase Requisitions

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In the R/3 System, you can do the following: •

•

Create a purchase order with reference to a purchase requisition: If you have not yet entered a valid source of supply for the material in the system, you can create a purchase order with reference to the purchase requisition. You can make reference to the purchase requisition on the initial screen as well as on the item overview for purchase order entry. Convert a purchase requisition into a purchase order: Before converting the purchase requisition into a purchase order, you have to define sources of supply for the purchase requisition items. You can enter a valid info record or an outline agreement for each requisition item. The system can suggest all possible sources of supply if you do not know of any. By means of a price simulation, the system compares these sources of supply so that you can decide on the most reasonable one. You then convert the purchase requisition into a purchase order manually or the system converts it automatically. There are several procedures for converting purchase requisitions into purchase orders. For teaching purposes, this unit demonstrates how to manually convert a purchase requisition, as this demonstrates more clearly the individual steps involved in the conversion. But you should still point out that you can also use list processing functions to convert purchase requisitions (this is dealt with in detail in LO520). Think of the top method shown in this slide as the manual method we will use.

Figure 132: Processing Purchase Requisitions

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Purchase requisitions are either created manually by the requesting department or automatically (for example, via MRP). You can tell which procedure was used to create the purchase requisition from the creation indicator in the status tab display (Item details section) of the purchase requisition item. When creating a purchase requisition, the requester can specify a source of supply or preferred vendor for the relevant item. The Purchasing department is ultimately responsible for determining the source of supply and converting the purchase requisition into a purchase order or RFQ. The buyer first has to assign the purchase requisition; that is, choose a permitted source of supply. He or she then has to convert the requisition into a purchase order or request for quotation. You can automate the process for determining the source of supply (see the unit on automated procurement or the training course LO520). You can define release procedures for purchase requisitions to check the content of a purchase requisition and ensure that the specified account assignment and the source of supply are correct. You can define a release procedure very flexibly, according to various elements, such as item value, requester, account assignment, and so on. After the purchase requisition has been created, the subsequent steps are source determination and conversion of purchase requisition. These processes can also be automated. Optional: Mention possible follow-on steps (approval/release procedures), without going into the topic in detail. Point out that source determination and release procedures are covered in detail in LO520. Explain the structure of purchasing documents. All have a header and item level except for the requisition, which exists at item level only. Therefore, requisitions can have an approval strategy at item level.

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Figure 133: Converting Purchase Requisition Data to the PO

Account assignment category U: Although account assignment category U is allowed in the purchase requisition, it is not usually allowed in the purchase order. (Limit items and service items are exceptions.) When creating a purchase order, the buyer has to change the U to a valid account assignment object and enter all the account assignment details. Purchase requisition items with material master record: If an info record exists for the vendor and the material, the system suggests the purchase price from the info record when you create a purchase order with reference to a purchase requisition. If no info record exists, you have to enter the price manually. The list in the dialog box shows what account categories are permitted. The configuration of this linking process is taught in LO550. Price comes from info record if one exists. Even though we use the Material master price in the requisition so we can facilitate using release strategies, that price is never pulled into the PO. Purchase requisition items without material master record: If the system copies a purchase requisition item without a material master into the purchase order, the system suggests the valuation price from the purchase requisition as the purchase price. The buyer can change this to the purchase price that is currently valid.

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Note: With 4.6C you can decide if and how the price in the purchase requisition will be adopted into the purchase order by using the parameter EFB (Function Authorizations: PO). Details are covered in the LO520.

Demonstration: Purchase Order Creation with Reference to a Purchase Requisition Purpose Approximate time 10 minutes

System Data System: Client: User ID: Password: Set up instructions: 1. Use Trans ME21N or choose Materials Management → Purchasing → Purchase Order → Create → Vendor/Supplying plant known. 2.

Make sure the left column, Document Overview is open. Search for My Purchase Requisitions (near the bottom of the dialog box list). Your requisition should be on the list that is brought up.

3.

Drag your req. and drop it in the shopping cart. It will create three items. Clear any red light by entering the required data.

4.

Enter the Vendor number T-K12C##

5.

Go through the pricing of each item showing whether it comes from the estimate or Info record, or if no record exists. • • •

Item 10 – 0.3 UNI per pc (valuation price in requisition only) Item 20 – 10 UNI per liter (valuation price in requisition only) Item 30 – 300 UNI per pc (price manually entered in requisition and adopted in PO) System asks you to check.

6.

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Save the PO and record the number.


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7.

Display the general statistics for the purchase requisition and point out the status has changed from not processed to (B) PO created. Also there is a display of the PO number that was created from the requisition. •

8.

While still on the PO display screen, scroll to the right in the Item Overview until you find the req. number column. Double-click on the req. no. (or just double-click on the req. number in the left column, Document overview) • Now you are in the req. display. Select the Status tab in the Item Details section. Green arrow back and display the purchase order header status and item information. Point out that there is no purchase order history until a GR or IR have occurred.

Demonstration: Goods Receipt Purpose Approximate time: 20 minutes.

System Data System: Client: User ID: Password: Set up instructions: 1. Display the plant stock and consumption data for materials T-RM3## and 99-100. 2.

Post the goods receipt with reference to the first of the two purchase order items without account assignment into unrestricted use stock, in storage location 0001. • • •

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Post the goods receipt with reference to the second of the purchase order items (without storage location). This item is assigned to a cost center and is not going into stock. •

4.

5.

Display the plant stock and consumption data for material 99-100. Compare 1) with 2) • Display the material and the FI document. Which G/L accounts were updated? Post the goods receipt with reference to the third purchase order item (without storage location). Assigned to multiple cost centers. Display the material document. There is no accounting document. The GR for a purchase order item with multiple account assignment is not valuated. G/L accounts are not updated until invoice receipt. Display the purchase order history, which is now accessible via a tab in the item details of the PO.

Demonstration: Logistics Invoice Verification Purpose Approximate time: 10 minutes

System Data System: Client: User ID: Password: Set up instructions: 1. Using Logistics Invoice Verification, post the vendor invoice with reference to the purchase order used in the demonstration of purchase order processing. Demonstrate how to simulate it.

2.

400

• Gross amount 1,433.30 • Change tax code to 1I (10%) • Tax amount 130.30 Analyze the document. Explain how the costs for the photocopiers have been posted to the consumption account and distributed between the two cost centers specified in the PO.

3.

Display the account assignment data. Point out that there is only one document you can evaluate from the Logistics view as well as the Accounting view.

4.

Display the vendor’s open items.


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5.

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Check the purchase order history.


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Creating a PO by Copying or Referencing Use You can save time and effort when creating or changing a purchase order by copying an already existing one or adopting items from an existing requisition, RFQ, or contract.

Procedure 1.

Use the path Purchase order → Create → Vendor/Supplying plant known or Trans ME21N. The initial screen appears.

2.

If you know the item number and document number you want to reference, you can just scroll the Item Overview section to the right until you find a column with that document name as its heading. Type the numbers in and press the Enter key. The system will retrieve the information for you.

3.

If you don’t know the document number, you can look it up in the Document Overview section (left hand column) of the screen. Note: If it isn’t open, press the button on the left of the toolbar which is labeled Document overview on. When the column is open; • • •

4.

on the left side of the Click on the Selection variant icon Overview toolbar. Click on the category of document you want compiled to open the search screen. Enter the search criteria and press the Execute button. The system will compile a list and display it in the column.

Change the individual items on the item detail screen. If you wish to adopt the selected items without first changing them, choose Edit → Adopt. The item overview for the newly created PO (with the items you adopted) appears. Save the purchase order. The purchase order is created in the SAP system. In order that the information in the purchase order can be transmitted to the vendor, the system generates a message for the PO. How to set up messages and to set up for automatic message determination is taught in LO550 — Cross-Functional Customizing in MM.

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Exercise for Purchase Order Processing (Exercise 16): 20 minutes Exercise on Goods Receipt (Exercise 17): 25 minutes Exercise for Invoice Verification (Exercise 18): 20 minutes

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Exercise 16: Purchase Order with Reference to Purchase Requisition Exercise Duration: Minutes

Exercise Objectives After completing this exercise, you will be able to: • Create a purchase order with reference to purchase requisition • Check the processing status of purchase requisitions

Business Example As a member of the central Purchasing department, you are responsible for processing purchase requisitions for the different departments in your company. Purchase requisitions for consumable materials are also part of your responsibilities.






Task 1: Create purchase order Create a PO with reference to a requisition, then process a GR and Invoice against it to see what the differences are when processing consumable materials. 1.

Create a purchase order for the sensors and the testing instrument. Reference the purchase requisition from Task 1, above. You have already used vendor T-K12C## (C.E.B Berlin Gr.##) for previous purchase orders. You are ordering for the purchasing organization IDES (1000) and your personal purchasing group T##. Display a document overview of the purchase requisitions for your purchasing group. Copy both requisition items. Continued on next page

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According to the vendor, the sensors cost 15 UNI per piece. The price of the testing instrument is consistent with the valuation price in the purchase requisition. Write down the purchase order number: PO number:

Task 2: Display purchase requisition 1.

What is the processing status of both purchase requisition items? Item 10:

_______________________

Item 20:

_______________________

Task 3: Display purchase order 1.

With which purchase requisition and which item is the purchase order for the testing instrument linked? Requisition number/item:

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_______________________


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Solution 16: Purchase Order with Reference to Purchase Requisition Task 1: Create purchase order Create a PO with reference to a requisition, then process a GR and Invoice against it to see what the differences are when processing consumable materials. 1.

Create a purchase order for the sensors and the testing instrument. Reference the purchase requisition from Task 1, above. You have already used vendor T-K12C## (C.E.B Berlin Gr.##) for previous purchase orders. You are ordering for the purchasing organization IDES (1000) and your personal purchasing group T##. Display a document overview of the purchase requisitions for your purchasing group. Copy both requisition items. According to the vendor, the sensors cost 15 UNI per piece. The price of the testing instrument is consistent with the valuation price in the purchase requisition. Write down the purchase order number: PO number:

a)

Use the path Logistics → Materials Management → Purchasing → Purchase Order → Create → Vendor/Supplying Plant Known. Display your purchase requisition in the document overview and convert it to a purchase order using the drag and drop function. As an alternative, you can enter the purchase requisition number and item directly in the item overview. Enter the data below: PO Data Vendor:

T-K12C##

Purchasing group:

T##

Purchase prices: Sensor-##:

15 UNI / pc

Testing instrument-##

Same as valuation price in purchase requisition


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Task 2: Display purchase requisition 1.

What is the processing status of both purchase requisition items? Item 10:

_______________________

Item 20:

_______________________

a)

Path Purchase Requisition → Display. You can see the processing status on the Status tab page in the item detail area. Item 10:

PO Created [B]

Item 20:

PO Created [B]


With which purchase requisition and which item is the purchase order for the testing instrument linked? Requisition number/item: a)

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_______________________

Path Purchase Order → Display. The item overview contains the purchase requisition number and item number for each PO item. You have to scroll to the right to see these fields.


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Exercise 17: Goods Receipt Exercise Duration: Minutes

Exercise Objectives After completing this exercise, you will be able to: • Post a goods receipt for consumable material • Track consumption in the material master record

Business Example The consumable materials you ordered are forwarded directly to the requesting department instead of being placed in storage.






Task 1: Enter goods receipt 1.

Enter the goods receipt for the purchase order from the previous exercise. Use the following delivery note as a reference. Record the GR document number: GR document number:

Task 2: Display material document Task 3: Display purchase order history

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Solution 17: Goods Receipt Task 1: Enter goods receipt 1.

Enter the goods receipt for the purchase order from the previous exercise. Use the following delivery note as a reference. Record the GR document number: GR document number: a)

b)

Choose Logistics → Materials Management → Inventory Management → Goods Movement → Goods Receipt → For Purchase Order → PO Number Known. Choose your PO number via F4 help, the search help, or enter it manually. Press the enter key to display the information. Use the information on the vendor’s Delivery note to fill in the required information on the GR. Enter the vendor’s delivery note number and set the item OK flags, if required. Save the document and record the number assigned by the computer.

Task 2: Display material document Task 3: Display purchase order history

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331


Exercise 18: Invoice Verification Exercise Duration: Minutes

Exercise Objectives After completing this exercise, you will be able to: • Carry out invoice verification for consumable materials

Business Example You check the invoice for the consumable materials and the postings that were generated in Financial Accounting.






Task 1: Enter invoice 1.

Use Logistics Invoice Verification to enter the invoice for the purchase order for the sensors-## and the testing instrument-## with vendor T-K12C##. Use the following vendor invoice as a reference: Record the invoice document number: Invoice document number:

____________

Task 2: Display purchase order history records 1.

Display the purchase order and check the purchase order history records of both items.

2.

Then, call up the invoice verification document via the purchase order history. Display the accounting document for your invoice and fill out the following table.


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Itm Account

Short text

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Material

Cost Center

Amt

1 2 3

4 5 6

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Solution 18: Invoice Verification Task 1: Enter invoice 1.

Use Logistics Invoice Verification to enter the invoice for the purchase order for the sensors-## and the testing instrument-## with vendor T-K12C##. Use the following vendor invoice as a reference: Record the invoice document number: Invoice document number: a)

____________

Choose Logistics → Materials Management → Logistics Invoice Verification → Document Entry → Enter Invoice to access the transaction. Enter the following data in the Enter Invoice screen. Invoice data

b)

Field name

data

Document date

Current date (defaults in)

Reference

RE-C1##

Amount

660

Tax amount

60 at a 10% rate

Choose the purchase order document for vendor T-K12C## via F4 help or manually enter the purchase order number. After entering the number, select Enter so the system will retrieve the PO data and compare it with your entries. You should see the green light at the top right of the page and the balance display should be zero.

c)

You can select Simulate to see what accounts will be posted when post the invoice. you save. When you’ve finished

Task 2: Display purchase order history records 1.

Display the purchase order and check the purchase order history records of both items. a)

Choose Logistics → Materials Management → Purchasing → Purchase Order → Display. Enter your purchase order number directly or use the document overview for your purchase orders. Display the purchase order histories of both items. Continued on next page

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Then, call up the invoice verification document via the purchase order history. Display the accounting document for your invoice and fill out the following table. Itm Account

Short text

Material

Cost Center

Amt

1 2 3


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Itm Account

Short text

Material

Cost Center

Amt

4 5 6 a)

To go to the invoice document, double-click on the invoice document number. In the Invoice screen, click on the Follow-on documents button to get the documents in accounting list. Select the Accounting document item, which is usually at the top of the list. Itm Account

Short text

Material

Cost Center

Amt

1

T-K12C## CEB Berlin

660 —

2

400000

Consumption Raw materials 1

T-RM3##

4100

45

3

400000

Consumption Raw materials 1

T-RM3##

4110

30

4

191100

GR/IR clearing (external)

Testing instrument

5

154000

Incoming tax

525 60

6

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Lesson Summary You should now be able to: • Create a purchase order with reference to a purchase requisition • Post a goods receipt for a consumable material with reference to the purchase order • Explain the differences between stock and consumption statistics for goods receipts into stock and goods receipts into consumption • Post invoices for a consumable material using Logistics Invoice Verification

Related Information For further information on purchasing document output, refer to the Materials Management Help documentation on Purchasing: Optimized Purchasing, or the R/3 training course, LO520 Purchasing Details and Optimization. http://help.sap.com

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Lesson: 336

Lesson: Blanket Purchase Orders

Blanket Purchase Orders Lesson Duration: 60 Minutes

Lesson Overview This lesson covers the blanket purchase order, which may be useful in your procurement of consumables.


Create a blanket purchase order Enter an invoice for a blanket purchase order using Logistics Invoice Verification

Introduce topic objectives and business scenario. Demonstrate Blanket PO.

Business Example Your company prefers to buy all its office supplies from one vendor. You do not need to monitor goods receipts of these materials. The project team therefore wants to test the extent to which you can use blanket purchase orders in the simplified procurement process for such areas.

Blanket Purchase Orders You can use blanket purchase orders to procure consumable materials or services for which it is not worth creating a separate purchase order for each procurement transaction. Blanket purchase orders are usually valid for a longer period of time. You can directly post the invoices for the materials and services procured for this blanket purchase order.

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Figure 134: Blanket Purchase Orders

In the standard procurement of consumable material, you have to create at least one purchase order for every procurement transaction. This purchase order is used as a basis for invoice verification.

Figure 135: Standard Procurement for Consumable Material

You usually enter goods receipts for each conventional purchase order.

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In some cases, there may be preceding documents, such as purchase requisitions or quotations. As of Release 4.0A, you can create a purchase order with an item-related value limit, which is valid for a longer period of time (for example, a year). You can use these blanket purchase orders to procure materials or services that you do not want to process individually (purchase order, goods receipt, and invoice receipt).

Figure 136: Blanket Purchase Orders

You can use the document type FO for these blanket purchase orders. In the standard system, this document type enables you to enter the validity period at PO header data level and use the item type for blanket purchase order items. (Limit items are sometimes called blanket items.) Invoice Verification checks whether the invoice lies within the validity period and whether the total limit will be exceeded when the invoice is posted. You do not have to define the account assignment when you create the blanket purchase order. You cannot use RFQs or contracts. You can create a purchase requisition (optional) and then a purchase order.

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Figure 137: Procurement Cycle for Blanket Purchase Orders

There is no goods receipt (for services, there is no service entry or service acceptance). Invoices are posted directly for the purchase order. Blanket purchase orders use the item category “B.” In addition, they use the document Framework Order (FO) instead of NB. Blanket purchase orders have the following characteristics: • • • • • • • • • •

420

New item category New order type (at field selection) Validity period in hearder of purchase order Limits in the item No material number No goods receipt or service entry sheet Account assignment type “unknown” is allowed Account data for the item suggested in invoices Additional or multiple account assignment possible for Invouce Verification Validity period and limit checked in Invoice Verification


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Blanket purchase orders offer the following advantages: • • • • • • • • •

They offer low transaction costs. They have a longer validity period. You do not require a purchase order for individual procurement transactions. No goods receipt or entry of services is performed. You do not have to specify a material number (material group instead). Account assignment can be defined in purchase order, but is not mandatory. Account assignment and multiple account assignment can be changed in Invoice Verification. Validity period and limilt are checked in Invoice Verification. They are linked with budget control.

Demonstration: Blanket Purchase Orders Purpose Approximate time: 30 minutes

System Data System: Client: User ID: Password: Set up instructions: 1. Create blanket purchase order: •

Go to the Create PO screen (ME21N) change the PO document type to (FO) Framework order. Then select Enter. Note:

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Figure 138:

The system should open the Additional data tab in the Header data section, so you can enter the Validity Start and End dates. •

Enter the Vendor number 1000. Enter, the system retrieves necessary When you next select data from the Vendor master and copies it into the Blanket order.

• • •

Enter a Validity Start and Validity End date. Go to the Item overview section. Enter the Account assignment category U (possibly add a second item with K). Enter a short text description, Office supplies. Note: When you select Enter after inputting the above items, the system fills in the quantity (1) and the unit of measure (AU), accounting unit.

•

Enter the Item category B Note: The Item cat. B is the key to creating a blanket order. Up to Release 4.6B you could also use the NB document type with Item B and still create a blanket order.

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• •

Scroll to the right to find the Material group column, enter # 006 for office materials. Total limit and expected value: 50000

SAVE to generate a document. Record the number. Select (Blanket PO uses the same range as standard PO, 450000xxxx) Enter invoice using Logistics Invoice Verification:

• 2.

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Figure 139:

• • •

• •

•

Use transaction MIRO to access the Logistics Invoice Verification screen. Make sure it’s set for the function, (1) Invoice. Enter the Invoice date, use today’s date. (F4 followed by F2 will enter today’s date.) Enter 16500 as the Amount total, 1500 of this total is entered in the Tax amount field. (Make sure it is set to Input tax (training) of 10%) Choose display variant Acct assignment – asset, order, select Enter to change the display You see the Balance is 15000 UNI and shows a Red light ; no data entry is possible in the quantity or dollar amount received fields (display only). This is because the costs have not yet been assigned to the different cost centers. In the item list, scroll to the right and double click the icon for Multi. account assignment in the column Acct. assignment. In the Account assignment dialog box enter the cost, G/L account, and cost center data: Cost amount #10000, G/L account 400000, cost center 1000 Cost amount #5000, G/L account 400000, cost center T-L## Caution: Don’t forget to scroll to the right and enter the tax code 1I ! Don’t forget to highlight the new line(s) before using Back.

•

424

Point out the balance is now zero, and there is a green light.


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Figure 140:

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3.

Enter other invoice(s) until limit is exceeded.

4.

Display purchase order history.


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Create blanket purchase order 1.

Create blanket purchase order: •

Go to the Create PO screen (ME21N): choose Purchasing → Purchase Order → Create → Vendor/Supplying plant known. Note:

Figure 141:

The system should open the Additional data tab in the Header data section so you can enter the Validity Start and End dates. • •

•

Change the PO document type to (FO) Framework order. Then select Enter. Enter the Vendor number. Note: When you next select Enter, the system retrieves necessary data from the Vendor master and copies it into the document. Enter a Validity Start and Validity End date . Continued on next page

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• • • • • •

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Go to the Item overview section. Enter the Account assignment category. Enter a short text description. Enter the Item category B. Scroll to the right to find the Material group column, enter the appropriate one. Enter a Total limit and Expected value. Select Save to generate a document. Record the number.


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Post an invoice against a Blanket PO using Logistics Invoice Verification 1.

Use transaction MIRO to access the Logistics Invoice Verification screen.


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Figure 142:

• • • •

• • •

•

Make sure it’s set for the function, (1) Invoice. Enter the Invoice date. Enter the Total amount (includes the taxes, and so forth) the vendor wants in the Amount field. Enter the tax amount in the Tax amount field. Verify that the tax amount that appeared as a default value matches the rate used by the vendor. Change it if necessary. Choose display variant Acct assignment – asset, order, and select Enter to change the display. You see the Balance field shows the total amount you entered and shows a: Red light. Also no data entry is possible in the quantity or dollar amount received fields. This is because the costs have not yet been assigned to the different cost centers. In the item list, scroll to the right and select the column for Multi. account assignment icon in the Acct. assignment column. In the Account assignment dialog box, enter the cost, G/L account, and cost center data: – –

•

Scroll to the right and enter the tax code. Don’t forget to highlight the new line(s) before using the Back button, or the data won’t be correct. The balance should now be zero in the Balance field and there should be a Green light indicating it is okay to post the document.


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Figure 143:

Students should now do the exercises on Blanket Purchase Orders, Approximate time: 30 minutes

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Exercise 19: Blanket Purchase Orders Exercise Duration: Minutes

Exercise Objectives After completing this exercise, you will be able to: • Create a blanket purchase order for consumable materials • Enter an invoice for a blanket purchase order

Business Example To help you to manage low-value consumable materials that are not required regularly, you are testing how you can procure consumable materials using a blanket purchase order. You then enter invoices for the blanket purchase order.





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Task 1: Create a blanket purchase order Your Purchasing department has reached an agreement with the office supplies company, Bürohandel Leifritz Gr.##, that plant 1000 (Hamburg) can procure office materials by fax. This arrangement applies immediately and is valid until the end of next year. Create a framework order for the vendor Bürohandel Leifritz Gr.##. What is the number of the vendor master record for this company? ______________ You are part of purchasing group T## (LO020-##) and purchasing organization IDES (1000). Choose the item category for blanket purchase orders (=__________). As this purchase order is used to procure office materials for different cost centers, you do not know the account assignment category when you place the order. Enter the relevant account assignment category (=___________). Enter office materials as a short text. You do not expect the value of the office materials to exceed 5000 UNI. Define the total limit for Invoice Verification as 6000 UNI. Choose the material group for office materials. Record the PO number: PO number: 1.

________________

Use the path Logistics → Materials Management → Purchasing → Purchase Order → Create → Vendor/Supplying Plant Known. Enter the following data. Document Settings PO type

Framework order

Vendor

T-K12D##

Header/Additional data tab Validity start

Today (F4 then F2)

Validity end


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Header/Org. data tab Purchasing organization

1000 (IDES)

Purchasing group

T## (LO020-##

Company code

1000 (IDES)

Item data: Item 10 Item category

B

Acct assgmt category

U

Short text

Office materials

Material group

006

Plant

1000

Select Enter and the system will issue a warning that you need to enter the limits. It will open the Item details section, Limits tab. Enter the following data: Tab: Limits

2.

Overall limit

6000

Expected value

5000

Select

Save and record the PO number.

Task 2: Enter an invoice for the blanket purchase order 1.

The Leifritz company sends you the invoice below. Use Logistics Invoice Verification to enter it.


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Figure 144:

Task 3: Display the Purchase order 1.

Display your blanket purchase order. What is the actual value of the purchase order? ______________________________________________

2.

Display the purchase order history. Select and display the invoice document. Go to the accounting document. Which G/L accounts were posted?

Task 4: Optional: Enter other invoices

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Solution 19: Blanket Purchase Orders Task 1: Create a blanket purchase order Your Purchasing department has reached an agreement with the office supplies company, Bürohandel Leifritz Gr.##, that plant 1000 (Hamburg) can procure office materials by fax. This arrangement applies immediately and is valid until the end of next year. Create a framework order for the vendor Bürohandel Leifritz Gr.##. What is the number of the vendor master record for this company? ______________ You are part of purchasing group T## (LO020-##) and purchasing organization IDES (1000). Choose the item category for blanket purchase orders (=__________). As this purchase order is used to procure office materials for different cost centers, you do not know the account assignment category when you place the order. Enter the relevant account assignment category (=___________). Enter office materials as a short text. You do not expect the value of the office materials to exceed 5000 UNI. Define the total limit for Invoice Verification as 6000 UNI. Choose the material group for office materials. Record the PO number: PO number: 1.

________________

Use the path Logistics → Materials Management → Purchasing → Purchase Order → Create → Vendor/Supplying Plant Known. Enter the following data. Document Settings PO type

Framework order

Vendor

T-K12D##

Header/Additional data tab Validity start

Today (F4 then F2)

Validity end

End of next year Continued on next page

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Header/Org. data tab Purchasing organization

1000 (IDES)

Purchasing group

T## (LO020-##

Company code

1000 (IDES)

Item data: Item 10 Item category

B

Acct assgmt category

U

Short text

Office materials

Material group

006

Plant

1000

Select Enter and the system will issue a warning that you need to enter the limits. It will open the Item details section, Limits tab. Enter the following data: Tab: Limits

2.

Overall limit

6000

Expected value

5000

Select

Save and record the PO number.

Task 2: Enter an invoice for the blanket purchase order 1.

The Leifritz company sends you the invoice below. Use Logistics Invoice Verification to enter it.


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Figure 145:

a)

b) c)

d)

Choose Logistics → Materials Management → Logistics Invoice Verification → Document Entry → Enter Invoice. Enter the following data: Invoice date

Current date

Reference

RE-D1##

Amount

550

Tax amount

50

Choose your purchase order document for vendor T-K12D## via F4 help, or manually enter the purchase order number. Choose the item for the office materials. Scroll to the right until you find the Account Assignment column. It will have a green band across it. Click on the band to get a dialog box. Post 100 UNI of the invoice cost to center T-L## and 400 UNI to T-HR7A## (use G/L account 476000 for both). Input the tax rate 1I on each line. Select (highlight) both lines and use the Adopt button to transfer it into the main document. Hint: Make sure you check the tax category entries and highlight both lines before trying to save. If you end up with ***** in the tax rate field on the main screen, the entries in the dialog box are wrong.

e) f)

Use the Simulate button to see what postings will be made. Save your document.

Task 3: Display the Purchase order 1.

Display your blanket purchase order. What is the actual value of the purchase order? ______________________________________________ a) b) c)

Use path Purchase order → display. Use the document overview to pull up your own personal purchase orders. Double click to display your document. The Limits tab page in the Item detail section contains the current actual value of the purchase order item. Continued on next page

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2.

Display the purchase order history. Select and display the invoice document. Go to the accounting document. Which G/L accounts were posted?

a) b)

Use the Purchase order history tab page to see the Invoice number. Select the invoice number to go to that document. Use Follow on documents button, then Accounting documents line in the dialog box to see accounting postings.

Task 4: Optional: Enter other invoices

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Lesson Summary You should now be able to: • Create a blanket purchase order • Enter an invoice for a blanket purchase order using Logistics Invoice Verification


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Unit Summary

Unit Summary You should now be able to: • Describe the differences between the procurement of stock material and consumable material • Create a purchase requisition for consumables • Create a purchase order with reference to a purchase requisition • Post a goods receipt for a consumable material with reference to the purchase order • Explain the differences between stock and consumption statistics for goods receipts into stock and goods receipts into consumption • Post invoices for a consumable material using Logistics Invoice Verification • Create a blanket purchase order • Enter an invoice for a blanket purchase order using Logistics Invoice Verification

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Unit Summary

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Test Your Knowledge

359


Consumable material and its value are put into stock. Determine whether this statement is true or false.

□ □ 2.

True False

Which of the following entries are not allowed in the account assignment field for a consumable material item listed in an NB Requisition? Choose the correct answer(s).

□ □ □ □ □

A B C D E

K A B U An empty account assignment field

3.

What is the advantage of being able to create purchasing documents by copying from a purchase requisition?

4.

You can split the costs of an item between several cost centers. Determine whether this statement is true or false.

□ □ 5.

True False

The blanket purchase order eliminates the need for a goods receipt. Determine whether this statement is true or false.

□ □

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True False


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Test Your Knowledge

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Which of the following items are not required entries in an invoice posting against a blanket PO that has account assignment category U? Choose the correct answer(s).

□ □ □ □ □

444

A B C D E

PO Number Account objects Total value (cost) Quantity Invoice date


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Test Your Knowledge

361

Answers 1.

Consumable material and its value are put into stock. Answer: False By definition, consumable material is not placed into stock.

2.

Which of the following entries are not allowed in the account assignment field for a consumable material item listed in an NB Requisition? Answer: E All of the above assignment categories are allowed in the standard NB document, with the exception of E.

3.

What is the advantage of being able to create purchasing documents by copying from a purchase requisition? Answer: It saves time and prevents human errors during the PO creation process. It also automatically links the documents so you can tell what requisition was satisfied by which PO.

4.

You can split the costs of an item between several cost centers. Answer: True You can also split costs for an item between cost centers and other account assignment objects, such as projects or assets.

5.

The blanket purchase order eliminates the need for a goods receipt. Answer: True The blanket purchase order functionality does not permit a goods receipt.

6.

Which of the following items are not required entries in an invoice posting against a blanket PO that has account assignment category U? Answer: D Quantity is not required. It could be entered as a comment, but there are no goods receipts to check it against.

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Unit 6 Procurement of External Services

363

This unit is designed to give all the lecture and demos before the students do their exercise. The exercise will go through the complete process, from master data to invoice entry. There are two reasons for this: One, this is a short unit. Two, this will give the students an uninterrupted opportunity to experience the complete cycle.

Unit Overview Some of the purchases that buyers make are not actually for “things.” Often it is necessary to purchase services, whether it is janitorial services, catering services, consulting services and so forth. This unit exclusively addresses the purchasing of services, including special master data records, specific purchase order setup, maintenance of service entry sheets, and invoice entry.

Unit Objectives After completing this unit, you will be able to: • • • • • • • •

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Describe the basic steps in the procurement of external services process Name the most important master data used in the procurement of external services Display a service master record Display service conditions for vendor Create a Purchase Order for a service item Apply value limits for unplanned services Create a Service Entry Sheet Post an invoice for external services using Logistics Invoice Verification (LIV)


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Unit 6: Procurement of External Services

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Unit Contents Lesson: The Procurement Process and Master Data in External Services ..........................................................................449 Demonstration: Displaying Master Data for Services..................456 Procedure: Maintaining Master Data for Services .....................458 Demonstration: Purchase Order for Services ..........................458 Demonstration: Service Entry Sheets ...................................460 Demonstration: Second Entry Sheet.....................................461 Procedure: Creating a Service Entry Sheet.............................463 Demonstration: Invoice Verification for Services .......................464 Exercise 20: External Services Purchase Order and Service Entry Sheets........................................................................467

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Lesson: 364

Lesson: The Procurement Process and Master Data in External Services

The Procurement Process and Master Data in External Services Lesson Duration: 2 Hours

Lesson Overview This lesson covers the master data involved in creating a service purchase order, creating the purchase order with unplanned value limits, creating service entry sheets, and entering an invoice for services.

Lesson Objectives After completing this lesson, you will be able to: • • • • • • • •

Describe the basic steps in the procurement of external services process Name the most important master data used in the procurement of external services Display a service master record Display service conditions for vendor Create a Purchase Order for a service item Apply value limits for unplanned services Create a Service Entry Sheet Post an invoice for external services using Logistics Invoice Verification (LIV)

This unit aims at giving the participants a brief overview of a procurement process for external services. It was decided to include this unit in order to transmit a basic understanding of the three key procurement cycle varieties supported by SAP. Further instruction is given in LO540.

Business Example Your company occasionally requires small maintenance tasks, such as changing defective lights, to be carried out by external contractors. You need to maintain a service master record and apply special pricing conditions for the external contractors. You will then create a purchase order for a service item. As you are unaware of the exact costs of some of these occasional maintenance tasks, you will want to apply a value limit for unplanned services.

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Finally the contractor invoices you for the services performed.

External Services The procurement cycle for external services is similar to the cycle for materials. There are some differences in procuring services, and these will be addressed in this lesson.

Figure 146: Procurement of External Services Cycle

Procurement of External Services Cycle • • • •

Walk through the cycle, describing each step with a simple example. Note the link to Plant Mainstream (PM) and Project System (PS). (See appendix for brief demos of PM and PS link to services.) Note there is no link to Production Planning (PP) . (Subcontract type PO is used for this purpose.) Point out that service specifications, service entry, and service acceptance are similar but not the same steps as in the material process.

A service master record contains a service description and a unit of measure, for example, hour.

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Figure 147: Service Master Record

You can assign a price to each service master record via the conditions. This data can be obtained from various SAP applications. Service Master Record Service masters are used to create requisitions in several applications. They are very simple compared to the material master and its multiple views.

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Figure 148: Defining Price via Master Conditions

There are several ways of storing long-term prices for services in the form of service conditions: • • •

At the service level (market price/own estimate) At the service and vendor level At the service, vendor, and plant level

Prices stored in the system are automatically proposed in service specifications. Defining Price via Master Conditions Master service conditions are prioritized from most specific (service, vendor, and plant) to most general (service). On the left side of the slide, service conditions appear as default values for requisitions. On the right side, conditions with service, vendor, and purchasing organization or service, vendor, purchasing organization, and plant appear as default values for a PO. Note: using Service Conditions → Other in the menu gives you additional choices, such as conditions for a service with or without a purchasing organization.

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Figure 149: Stock Material vs. Services

Stock materials are subject to inventory management, whereas services are procured for direct consumption. In addition to the other account assignment categories, you can use the account assignment category U (unknown) for service items, as the account assignment is often not yet definite when the services are ordered. When you procure materials, you already know a lot of information, such as the exact order quantity. When you procure services, however, you often do not yet know the exact service description or the order quantity (for example, when a printing press needs repair, you do not know whether the vendor just needs to adjust settings or whether he or she has to replace parts). You often do not know how long it will take or can only give an estimate. To control the costs, you can define value limits. Stock Material vs. Services The printing press example in the bullets is a good example of the differences between the measurable purchase of materials versus the unknown quantity and value of services and supplies. Give another example, such as ordering the lumber for a house versus paying a contractor an hourly rate to build it.

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Purchasing Document Layout Materials are procured at item level, but services are procured below item level. The item type D activates the service functions and controls or allows you to create service specifications.

Figure 150: Purchasing Document Layout

An item contains a short text, which is a general description of what you intend to procure. The service specifications are an exact description of the service. Purchasing Document Layout Emphasize that a major feature is the use of the sub-item level to enter any combination of: • • •

454

Service master records Outlines containing service master records Value limits if the service is not yet determined


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Figure 151: Service Specifications in the Purchasing Document

You can format complex service specifications clearly using outline levels. You can assign any number of service lines to each outline level. Work that is not contained in the outline or service lines cannot be covered with value limits for unplanned services. Service Specifications in the Purchasing Document This slide describes the four levels of outline and unplanned services. The notes are not repeated, so discuss them here. The next two steps of the process, which we will discuss later, are the service entry sheets and invoice verification.

Purchase Order History The purchase order history lists all the follow-on activities for a particular purchase order; that is, all services that have been performed, entered, and written off, and all invoices that have been entered.

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Figure 152: Purchase Order History

The purchase order history lists the service entry sheet apart from the resulting GRs. An accepted entry sheet is listed as GR.

Demonstration: Displaying Master Data for Services Purpose Display the required master data for use on an external services PO.

System Data System: Client: User ID: Password: Set up instructions: This part of the demo will take approximately 5 minutes. 1. Display service masters, T-LM120 and T-LM220. Choose Logistics → Materials Management → Service Master → Service → Service Master → Display. Show Basic Data and Long Text.

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2.

Display conditions for a vendor without plant. Choose Logistics → Materials Management → Service Master → Service → Service Conditions → For Vendor Without Plant → Display. Vendor T-K12E20 has conditions set up for these two services.

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Maintaining Master Data for Services 1.

Follow the menu path for creating a service master: Logistics → Materials Management → Service Master → Service → Service Master → Create .

2.

Fill in the required fields at the top of the screen.

Figure 153:

3.

Fill in the Basic Data tab and optionally the Long Text tabs.

4.

Save your new service.

Demonstration: Purchase Order for Services Purpose Demonstrate a service procurement purchase order using the service master just displayed.


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Set up instructions: This part of the demo should take approximately 10 minutes. 1. Use vendor T-K12E20. 2.

Put in the following data for the line item: • • •

Account Assignment = U Item Category = D Short text = Fluorescent light maintenance Everything else, including Material Group 007 should appear as default values.

3.

In the Item Detail section, point out the two new tabs: Services and Limits.

4.

In the Services tab, enter service number T-LM120, quantity 100, and T-LM220, quantity 100. The prices should appear as default values.

5.

In the Limits tab, set limits for unplanned services as 1000 UNI overall and 300 UNI as the expected value.

6.

Explain that the overall limit is the tolerance value. You cannot enter unplanned services beyond that amount in the service entry sheet without a warning or an error message. The expected value is used for approval limits and is added to the planned services to display in the line item net price above.

7.

Save the PO.

Service Entry and Acceptance The system stores services that have been performed in service entry sheets. The relevant postings are made in Financial Accounting and Cost Accounting when the service entry sheets are signed off. Service entry sheets can be entered and signed off in one transaction or in two steps. When entering services, you reference the purchase order. You can copy planned services directly from the purchase order into the service entry sheet. You do not give an exact description of unplanned services or their quantity and price details until you enter them. The system checks whether the unplanned services adhere to the limit defined in the purchase order. You can set up release procedures for service entry sheets.

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Figure 154: Service Entry and Acceptance

Service Entry and Acceptance If a release procedure does not apply, the service entry sheet needs to be accepted before the GR and accounting documents are created. This can be done at the same time you are creating the Service Entry document.

Demonstration: Service Entry Sheets Purpose Show the creation of a service entry sheet for a service item on the PO.

System Data System: Client: User ID: Password: Set up instructions: 1. Choose Logistics → Materials Management → Service Entry Sheet → Maintain.

460

2.

Select Other Purchase Order and choose your service PO.

3.

Select the Create

icon.


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4.

Enter header Short Text as Phase one of bulb maintenance.

5.

In the Basic Data tab, enter K for account assignment and any number for the External number.

6.

At the bottom of the screen, choose the Serv. Selection button. Your own PO should appear as a default value in the selection dialog box. Accept it.

7.

Choose only the first line item T-LM120 to copy to the service entry sheet.

8.

You will get a dialog box for the cost center. Use T-L20.

9.

Change the service quantity to 60.

10. Before saving, click the green acceptance flag icon.

The posting of invoices for external services is dependent upon the service being approved. Next we will input another service entry sheet for the same PO, this time with an unplanned service with no service master, and then enter an invoice to cover both entry sheets.

Demonstration: Second Entry Sheet Purpose Finish the work remaining on the PO, plus enter unplanned services that have no service master.

System Data System: Client: User ID: Password: Set up instructions: 1. Repeat the menu path to create a new entry sheet. Use your same purchase order number.

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2.

For the header short text, type Phase two of bulb maintenance.

3.

The Basic Data tab is the same as before.

4.

When you select services from your PO this time, select both lines.


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5.

Again use Cost Center T-L20. Click the Auto Rpt. on AA button, so that T-L20 will be copied to the next line items as well.

6.

Add a third line of services by writing in the Short Text Replace defective bulbs. Make the quantity 2, and the price 75 UNI.

7.

Approve and save, but stay in the maintenance screen.

8.

Display icon near Display your PO from the Entry Sheet via the your PO number at the top, and look at the history tab for item 10.

9.

Comment on the fact that the service entry sheets produce goods receipts for the effects of PO history. There is no financial posting (and no GR document) until the service entry sheets are accepted.


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372

Creating a Service Entry Sheet 1.

Choose Logistics → Materials Management → Service Entry Sheet → Maintain.

Figure 155:

2.

Select Other Purchase Order and choose your service PO.

3.

Select the Create

4.

Enter a short header text. (required)

5.

In the Basic Data tab, enter an account assignment and the External number.

6.

At the bottom of the screen, choose the Serv. Selection button. Your own PO should appear as default values in the selection pop-up. Accept it.

7.

Choose the desired line items and copy them to the service entry sheet.

8.

You will get a pop-up box for the cost center.

9.

Change the service quantity as necessary.

icon.


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10. Add unplanned services if there are any. Remember to use the short text description if there is no service master for this added service. 11. Approve and save, or if you do not have approval authority, simply save.

Figure 156: Invoice Verification for Entry Sheet

The invoice verification procedure is carried out with reference to the purchase order. This means that all service entry sheets accepted for this purchase order are suggested for invoice verification. The system compares the prices on the invoice with the prices from the service entry sheets. If there are no discrepancies, you can enter and post the invoice. If the system finds any discrepancies, it blocks the invoice for payment.

Demonstration: Invoice Verification for Services Purpose Show how to do Invoice Entry for services and point out the differences from Invoice Entry for materials.


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Password: Set up instructions: 1. Choose Logistics → Materials Management → Logistics Invoice Verification → Document Entry → Enter Invoice. 2.

The transaction is left at the default Invoice.

3.

Enter today’s date, any number for the reference to the vendor’s invoice, and an amount equal to 1650.00 UNI, tax 150.00 UNI.

4.

There is a choice to select the PO number or the Entry Sheets to be paid. If you plan to pay everything at once, it is most efficient to choose entering for the purchase order. If you plan to pay for only one Entry Sheet, for example, then choose the Service entry sheet type of document and select the one you want to pay. The short text search is a convenient way to find the right one.

5.

Choose the PO selection and pay for all the entry sheets at once.

6.

Display the PO once more and show the invoice document in PO history.

7.

Double-click on the invoice number, and show the resulting FI document via the Follow-on Documents button.

The students will now do an exercise that involves displaying the master data, creating a service PO, entering service entry sheets, and doing Invoice Entry. In this exercise they will do the entire cycle to get an uninterrupted feel for the procurement flow. Allow one hour for the exercise.

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375


Exercise 20: External Services Purchase Order and Service Entry Sheets Exercise Duration: Minutes

Exercise Objectives After completing this exercise, you will be able to: • Confirm the external services master data • Create an external services purchase order • Maintain and release a service entry sheet

Business Example Your company needs to purchase external services for changing defective lights throughout the plant. After an external contractor has performed a task, such as changing the defective lights, and confirmed that the work is complete, the work must be approved.






Task 1: Display a service master record 1.

Display the service master records T-LM1## (taking down of fluorescent tubes) and T-LM2## (delivering of new fluorescent tubes). Write what is in the long text for each of the services. In which unit of measure are the services managed?


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Task 2: Display conditions for vendor master records

Task 3: Create a purchase order 1.

Create a purchase order for plant 1000 with vendor T-K12E## for exchanging the lamp ballast. In the item overview, enter a relevant short text that generally describes your service specifications. Do not forget to choose the appropriate item category D and material group 007 for services. Because you do not know who will be debited for the goods when you order them, you use account assignment category U. Next maintain the services T-LM1## and T-LM2## on the Services tab in the item detail area of the screen. Maintain the limit on the Limits tab. Both services are required in plant 1000 in quantities of 100 pieces. Make sure to include an overall limit for unplanned services of 200 UNI. The expected value is the same as the amount of the overall limit. Write down the purchase order number.

Task 4: Service entry and acceptance 1.

The service provider T-K12E## sends you a service entry sheet for the first stage of work. In the service entry sheet, the vendor has specified that 60 pieces of each service have been performed. Maintain the service entry sheet in the system and reference your service purchase order from the previous task. Enter the following short text for the description of the service entry sheet: Service entry stage 1. Cost center T-L## will be debited for this procurement transaction. The number of the entry sheet from the service provider is 4700##. Create the service entry sheet and accept the service at the same time. Write down the document number.


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Task 5: Service entry and acceptance stage two 1.

After finishing stage two of the planned services, the contractor invoices you for the performed services #. First the service provider sends you the service entry sheet for the second stage. Enter the remaining 40 pieces of your planned services. The service entry sheet has the description Service entry stage 2. The external service provider manages the entry sheet under the number 4800##. The account assignment is the same as in Service acceptance stage 1. During the renovation work in the second stage, the service provider finds that two fluorescent tubes are defective and have to be replaced. After authorization from you, the damage is repaired. Enter the replacement of the two fluorescent tubes as unplanned services at a value of 75 UNI per piece. Hint: Note that a service master record has not been created for this service. Enter the unplanned service and create a short text for it, as there is no service master to use. Enter the planned services and accept the service entry sheet. Write down your document numbers. Document Numbers Data

Field Entry sheet doc. number Acceptance doc. number

Task 6: Enter the vendor invoice 1.

Enter the following invoice for your purchase order. Take data from the sample invoice printed. Note that you can choose only service entry sheets that have already been accepted. Post the document and write down the invoice document number.


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Figure 157:

Document Number Field

Data

Invoice doc. number

Task 7: Check follow-on activities for the purchase order 1.

Go to the purchase order history for your service item. How many service entry sheets already exist? Which of the service entry sheets have already been accepted? Is there an FI document for the service entry sheets that have been accepted?

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Solution 20: External Services Purchase Order and Service Entry Sheets Task 1: Display a service master record 1.

Display the service master records T-LM1## (taking down of fluorescent tubes) and T-LM2## (delivering of new fluorescent tubes). Write what is in the long text for each of the services. In which unit of measure are the services managed? a) b)

Follow the menu path Logistics → Materials Management → Service Master → Service → Service Master → Screen button Long Text. The first service has the long text “including correct waste disposal.”The second service has the long text “58 watts, color: warm white, including installation. ”Both services are managed in the unit of measure pc (piece).

Task 2: Display conditions for vendor master records

Task 3: Create a purchase order 1.

Create a purchase order for plant 1000 with vendor T-K12E## for exchanging the lamp ballast. In the item overview, enter a relevant short text that generally describes your service specifications. Do not forget to choose the appropriate item category D and material group 007 for services. Because you do not know who will be debited for the goods when you order them, you use account assignment category U. Next maintain the services T-LM1## and T-LM2## on the Services tab in the item detail area of the screen. Maintain the limit on the Limits tab. Both services are required in plant 1000 in quantities of 100 pieces. Make sure to include an overall limit for unplanned services of 200 UNI. The expected value is the same as the amount of the overall limit. Write down the purchase order number. Continued on next page

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a)

b)

LO020

Follow the menu path Logistics → Materials Management → Purchasing → Purchase Order → Create → Vendor/Supplying Plant Known. Enter the following data: Initial Entry Field

Data

Vendor

T-K12E##

Org. Data Field

Data

Purch. organization

1000

Purchasing group

T##

Item Overview Field

Data

Acct assgmt cat.

U

Item category

D

Short text

(any entry)

Material group

007

Plant

1000

Services Tab Field

Data

Line 10 Service no.

T-LM1##

Qty

100

Price

4.50 Uni

Line 20 Service no.

T-LM2##

Qty

100

Price

9.00 Uni


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Limits Tab Field

Data

Overall limit

200

Expected value

200

Field

Data

Document number

450000____

Task 4: Service entry and acceptance 1.

The service provider T-K12E## sends you a service entry sheet for the first stage of work. In the service entry sheet, the vendor has specified that 60 pieces of each service have been performed. Maintain the service entry sheet in the system and reference your service purchase order from the previous task. Enter the following short text for the description of the service entry sheet: Service entry stage 1. Cost center T-L## will be debited for this procurement transaction. The number of the entry sheet from the service provider is 4700##. Create the service entry sheet and accept the service at the same time. Write down the document number. a) b)

Logistics → Materials Management → Service Entry Sheet → Maintain Use the document preview to choose your service purchase order. The screen displays the PO document number. Field

Data

PO Document number

450000____

Choose Entry Sheet → Create → Empty Page, or use Create

.

Header Data Field

Data

Short text

Service entry stage 1 Continued on next page

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Basic Data Tab Field

Data

Acct assgmt cat.

K (cost center)

External number

4700##

Instead of entering service entry items manually, you can choose the copy function Serv. Selection button at the bottom of the screen to copy the required data directly from the purchase order. From the Service Selection dialog box, select your PO and select Enter. From the PO screen, Select Services as Reference, choose line items 10 and 20, then select the icon Services (adopt services). A dialog box will prompt you for the cost center to be charged for line 10. Fill in T-L##. The same thing will happen for line 20. Fill in T-L## again. Change the quantities for both lines 10 and 20 to 60 pcs per line. Choose the acceptance button, the green flag icon, and proceed. The stop light will change from red to yellow. After you save the document, it will change to green. Field

Data

Service doc. number

1000000__

Acceptance doc. number

50000000__

Task 5: Service entry and acceptance stage two 1.

After finishing stage two of the planned services, the contractor invoices you for the performed services #. First the service provider sends you the service entry sheet for the second stage. Enter the remaining 40 pieces of your planned services. The service entry sheet has the description Service entry stage 2. The external service provider manages the entry sheet under the number 4800##. The account assignment is the same as in Service acceptance stage 1.


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During the renovation work in the second stage, the service provider finds that two fluorescent tubes are defective and have to be replaced. After authorization from you, the damage is repaired. Enter the replacement of the two fluorescent tubes as unplanned services at a value of 75 UNI per piece. Hint: Note that a service master record has not been created for this service. Enter the unplanned service and create a short text for it, as there is no service master to use. Enter the planned services and accept the service entry sheet. Write down your document numbers. Document Numbers Data

Field Entry sheet doc. number Acceptance doc. number a) b) c)

d) e)

Proceed as you did in the first entry sheet. Change the quantity of the planned services to 40 pieces. Maintain a third line in the service entry sheet for the unplanned service with the short text “Exchange fluorescent tubes ”. The quantity is 2 pieces at 75 UNI per piece. Accept and save the service entry sheet. Make a note of the document numbers. Document Numbers Field

Data

Entry sheet doc. number

10000000__

Acceptance doc. number

50000000__

Task 6: Enter the vendor invoice 1.

Enter the following invoice for your purchase order. Take data from the sample invoice printed. Note that you can choose only service entry sheets that have already been accepted. Post the document and write down the invoice document number. Continued on next page

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Figure 158:


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Document Number Field

Data

Invoice doc. number a) b)

Logistics → Materials Management → Logistics Invoice Verification → Document Entry → Enter Invoice Enter the following on the Enter invoice screen: Enter Invoice Screen

c)

Field

Data

Document date

Current date

Posting date

Current date

Reference

RE-E1##

Amount

1650

Tax amount

150

Purchasing doc.

(PO number from your service PO creation)

Post the document and write down the document number. Document Number Field

Data

Document number

51056_____

Task 7: Check follow-on activities for the purchase order 1.

Go to the purchase order history for your service item. How many service entry sheets already exist? Which of the service entry sheets have already been accepted?


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Is there an FI document for the service entry sheets that have been accepted? a) b) c) d)

Two service entry sheets are under category LERF. There are two acceptance documents under category WE. Yes, there is one that separately references the two accepted line items under category RE-L. Logistics → Materials Management → Purchasing → Purchase Order → Display Item Details, Purchase Order History tab. There is an accounting document because the system updates the accounts in FI as a result of the service acceptance. The system also creates a controlling document that debits the account assignment object. Secondly, there is another accounting document when the invoice is entered.

e) f) g) h) i)

j)

k)

478

To see the documents involved, select the invoice receipt document in PO History. Now select the “Follow-on documents” button in the invoice document display. In the dialog box, select the “Accounting document” reference. This will show the FI document that was the result of this invoice. Now go back to PO History and select one of the category WE documents. In the Header data section of this document there is a tab called Doc. info. Choose this tab and then select the button for “FI docmts”. Select the “Accounting document” reference. This shows the FI document that resulted from service entry acceptance before the invoice was entered. Back out of the accounting document and take note of the “Cost accounting document” in the dialog box. This is the controlling document that debits the account assignment object, cost center T-L##.


November 2001

LO020


Lesson Summary You should now be able to: • Describe the basic steps in the procurement of external services process • Name the most important master data used in the procurement of external services • Display a service master record • Display service conditions for vendor • Create a Purchase Order for a service item • Apply value limits for unplanned services • Create a Service Entry Sheet • Post an invoice for external services using Logistics Invoice Verification (LIV)

Related Information LO540 will give you a more detailed understanding of what External Services Procurement can do in the R/3 System. For SAP documentation, refer to the following in the SAP Library. Go to http://help.sap.com, and follow the menu paths below: •

SAP R/3 → appropriate release → appropriate language → Logistics → Materials Management (MM) → External Services Management (MM-SRV) → Procurement of Services: Processes → Master Records from the ESM View → Service Master Record. Maintaining Service Specifications in Purchasing Documents: SAP R/3 → appropriate release → appropriate language → Logistics → Materials Management (MM) → External Services Management (MM-SRV) → Procurement of Services: Processes → Entry of Services Performed.

November 2001


479

Unit Summary

LO020

Unit Summary You should now be able to: • Describe the basic steps in the procurement of external services process • Name the most important master data used in the procurement of external services • Display a service master record • Display service conditions for vendor • Create a Purchase Order for a service item • Apply value limits for unplanned services • Create a Service Entry Sheet • Post an invoice for external services using Logistics Invoice Verification (LIV)

480


November 2001

LO020

Test Your Knowledge

389


Name three pricing levels available for setting up service conditions.

2.

Which of the following codes makes your PO uniquely a service PO? Choose the correct answer(s).

□ □ □ □ 3.

A B C D

Account Assignment U Document Type NB Item Category D Service-designated Vendor

The system will not allow you to pay more than the expected value on unplanned services. Determine whether this statement is true or false.

□ □ 4.

True False

You can enter an invoice for external services, even if the service entry sheet has not been approved. Determine whether this statement is true or false.

□ □ 5.

November 2001

True False

Name the two different internal documents you can reference during invoice entry.


481

Test Your Knowledge

6.

482

LO020

Once you have entered an invoice for an external services PO, what three types of documents will you find on the PO history tab?


November 2001

LO020

Test Your Knowledge

391

Answers 1.

Name three pricing levels available for setting up service conditions. Answer: No Vendor/No Plant, Vendor/No Plant, Both Vendor and Plant.

2.

Which of the following codes makes your PO uniquely a service PO? Answer: C Item category D alerts the system that this is a service PO. When you indicate a line item with category D, the system automatically adds two tabs, Services and Limits, to the item detail section of that line.

3.

The system will not allow you to pay more than the expected value on unplanned services. Answer: False The expected value limit is used for approval purposes. The overall value is for system control, depending on whether you have configured the threshold to give you a warning or an error.

4.

You can enter an invoice for external services, even if the service entry sheet has not been approved. Answer: False There must be approval, even if you do not have a formal approval process in place.

5.

Name the two different internal documents you can reference during invoice entry. Answer: You can reference either the purchase order or the service entry sheet.

6.

Once you have entered an invoice for an external services PO, what three types of documents will you find on the PO history tab? Answer: There are three types of documents that will always be present: a goods receipt document (type WE), a service entry document (type Lerf), and an invoice receipt document (type RE-L).

November 2001


483


484


LO020

November 2001

Unit 7 Automated Procurement

393

This unit is a “mini” view of LO520’s presentation of automated procurement. Most students should be encouraged to take LO520 in the near future.

Unit Overview Additional master data and the effect of contracts on automating the procurement process are highlighted in this unit. MRP uses this additional information to do automatic sourcing on MRP-generated requisitions. The automatic generation of purchase orders from these requisitions is demonstrated. For purposes of accuracy, shipping notifications can be issued by the vendor to update the system with the latest delivery dates and quantities. This unit shows how this effects both the stock/requirements list and the actual goods receipt. Finally, evaluated receipt settlement (ERS), which eliminates a great deal of manual paper work in invoice entry, will be presented.

Unit Objectives After completing this unit, you will be able to: • • • • • • •

November 2001

Enter the materials planning data for a material procured on a consumption-driven basis using reorder point planning Create a quantity contract and enter it in the source list as a fixed source of supply Display the current stock/requirements list for a material Carry out a single-item planning run for a material and display the result Create purchase orders automatically Enter a shipping notification for a purchase order Enter a goods receipt with reference to the shipping notification


485

Unit 7: Automated Procurement

• •

LO020

Start the program for evaluated receipt settlement online Identify how the entry of the invoice affects the purchase order history

Unit Contents Lesson: Automated Procurement, Master Data and Contracts...........487 Demonstration: Material Master and Vendor Master Data ............491 Demonstration: Contract Maintenance ..................................496 Procedure: Creating a Quantity Contract ...............................499 Exercise 21: Master Data and Contracts................................505 Lesson: Material Requirements Planning and Generation of Purchase Orders ............................................................................517 Demonstration: Requirements Planning with Source Determination 530 Exercise 22: Single-Item Planning and Automatic Generation of Purchase Orders............................................................533 Lesson: Shipping Notification and Goods Receipt .........................541 Demonstration: Shipping Notification and Goods Receipt ............543 Exercise 23: Shipping Notification and Goods Receipt ...............545 Lesson: Evaluated Receipt Settlement (ERS) ..............................551 Demonstration: Invoice Processing Using ERS ........................556 Exercise 24: Evaluated Receipt Settlement ............................559

486


November 2001

LO020

Lesson: 395

Lesson: Automated Procurement, Master Data and Contracts

Automated Procurement, Master Data and Contracts Lesson Duration: 1.5 Hours

Lesson Overview Automated Procurement focuses on the automation of the procurement process. It describes how purchase requisitions are created automatically by MRP and assigned to valid sources of supply via source list entries, being then automatically converted to purchase orders. The unit later explains the use of delivery notes for purchase orders and the subsequent creation of goods receipts with reference to delivery notes. The final lesson includes an invoice creation via automatic receipt settlement.


Enter the materials planning data for a material procured on a consumption-driven basis using reorder point planning Create a quantity contract and enter it in the source list as a fixed source of supply

For teaching purposes, the previous units focused on manually processing each step of the procurement process. However, participants should not get the impression that everything has to be done manually. This unit will enable participants to automate the procurement process. The unit does not aim to provide a complete overview of all the options available for simplifying and accelerating the procurement process. Based on selected examples, it demonstrates that there are ways of simplifying the process, although it does not cover all the alternatives nor explain in detail some of the individual functions that are used during the unit. You should make this clear to participants before starting the unit.

Business Example As a member of the project team, you need to identify ways of automating certain procurement processes. The project team needs to determine what control parameters for MRP are available in the R/3 System.

November 2001


487


LO020

Automated Procurement: Overview If the material master record has been maintained accordingly, Materials Planning can create purchase requisitions automatically. If source lists with valid sources of supply exist, the system automatically assigns sources of supply to the items in the purchase requisitions, based on the source list.

Figure 159: Automated Procurement: Overview

The system can automatically convert purchase requisitions to purchase orders if sources of supply are assigned to the requisitions. The Automatically generated purchase order indicator must also be set in the material master record and vendor master record. In the purchase order, you can enter that you expect an order acknowledgement or shipping notification from the vendor. If you have entered a shipping notification, you can reference it when you post the goods receipt. In evaluated receipt settlement (the ERS procedure), the vendor does not send invoices. Instead, the R/3 System creates the invoice from the data in the purchase order and the goods receipt. The vendor’s permission must be given to use the ERS procedure. The indicator to allow it is in the vendor master record.

488


November 2001

LO020


Automated Procurement: Overview To automatically convert purchase requisitions to purchase orders, the following criteria must be fulfilled: •

• •

You have to allow automatic purchase orders for each material and vendor. You therefore have to set the indicator for automatic purchase orders in the Purchasing view of the material master record and vendor master record. The items in the purchase requisition must have a valid source of supply. You can carry out the function online or in the background.

Acknowledgements are sent by the vendor to inform customers when ordered materials are expected to arrive (for example, order acknowledgements, loading or transport confirmations, and shipping notifications). If you do not use acknowledgements, Materials Planning can go only by the delivery dates and quantities in the purchase order. Acknowledgements enable you to plan more accurately by providing you with updated delivery dates and quantities. You cannot process planned delivery costs with the ERS procedure. In Logistics Invoice Verification, you can create a message for the vendor.

Master Data The materials planning view of your material must define the procedure you want to use to plan its requirements and other necessary MRP data.

November 2001


489


LO020

Figure 160: Material Master, MRP 1

Figure 161: Material Master, MRP2

490


November 2001

LO020


Demonstration: Material Master and Vendor Master Data Purpose Enter the appropriate planning data for material procured on a consumption-driven basis.

System Data System: Use the R/3 system assigned for this class. Client: Use the client assigned for this class. User ID: Instructor’s user ID, LO020–## (usually 20) Password: Create your own password. Set up instructions: Use the material and vendor you have used in class so far: Material T-HM120, and Vendor T-K12C20. (Alternately you can create a new material master , material type ROH, by copying LO020–ROH. Call the new material MRP-ROH.) Maintain views Purchasing, MRP 1, MRP 2, and Accounting 1 in plant 1000. Demo should take about 15 minutes.

November 2001

1.

If the MRP 1 and MRP 2 views are not yet created for T-HM120 , go to Material → Create → Immediately and choose those two screens for plant 1000.

2.

On MRP 1, fill in the following fields with the corresponding data:

3.

• MRP type = VB • Re-order point = 100 • MRP controller = 020 • Lot size key = FX • Fixed lot size = 500 On MRP 2, fill in the following fields with the corresponding data:

4.

• Scheduling margin key = 000 • Planned delivery time = 2 days After saving your material, go back into the material master in the change mode, choosing the Purchasing and the Accounting 1 views for plant 1000.

5.

In the Purchasing view, be sure the Automatic PO is selected.

6.

In the Accounting 1 view make sure the Valuation class, the Price control, and the appropriate price fields have been maintained.


491


7.

8.

LO020

Check the Vendor Master for vendor T-K12C20, Purchasing data view to see if all the appropriate fields have been selected for automated procurement. The following fields should be selected: • GR-based inv. verif. • AutoEvalGRSetmt.Del. (ERS) • Automatic purchase order Display the planning file entries for your material in plant 1000. Choose Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Planning → Planning File Entry → Display. Explain that your material is there because the MRP view of the material master has been maintained.

9.

Display the stock/requirements list for this material to see the current availability, before running MRP.

10. Carry out single-item, single-level planning (NECH, and create purchase requisitions). 11. Display the planning file entries and the stock/requirements list again once MRP has completed. Explain the result. 12. In the stock/requirements list, display the purchase requisition created, paying particular attention to the block for procurement options on the item detail screen. Point out that the system has not been able to assign a vendor because there is no source list, contract, or info record. The system will search for an appropriate vendor in the access sequence: • • • •

Quota arrangement Source list Outline agreement Purchasing info record

Mention that what we will do next is create a contract so that the system can do sourcing for our material.

Contracts Contracts are outline agreements. They do not contain details of the delivery dates for each of the items. To inform vendors of which quantities you need for which date, you enter contract release orders for a contract. A release order is a purchase order that references a contract.

492


November 2001

LO020


If an info record with conditions exists for the material and the vendor, the system automatically suggests the net price according to these conditions when you create the contract item.

Figure 162: Contracts

Types of Contract A contract is a long-term agreement with a vendor concerning the supply of material or performance of services. You can create contracts manually. When doing so, you can reference other contracts, purchase requisitions, and RFQs or quotations. One of the things you define in the contract header is the validity period. For each item in a quantity contract, you define the target quantity and purchase order conditions.

November 2001


493


LO020

Figure 163: Types of Contract

Types of Contract Explain the main differences between a value contract (WK) and a quantity contract (MK), with emphasis on the quantity contract.

Source List In the source list, you can define which sources of supply are allowed or not allowed for a material in a particular plant. You can also define fixed vendors or preferred outline agreements.

494


November 2001

LO020


Figure 164: Source List

Processing Source Lists Source lists contain information on which sources of supply are defined for a material in a plant within a particular period. A source of supply (vendor or outline agreement) can be selected as a fixed source of supply. You can also block a source of supply for a material. In the material master record, you can define that a material is procured only for sources of supply that are valid in the source list (source list requirement). Source list entries are taken into account in automatic source determination in Purchasing. You can also maintain source lists when updating info records or outline agreements.

November 2001


495


LO020

Figure 165: Processing Source Lists

Some tips on automatic processing of source lists follow: • • • • •

You can have the system automatically create a source list. This allows you to enter or update all of a material’s sources of supply. In this procedure, the system creates a source list record for each info record or outline agreement item. You can create a source list for several materials (collective procedure) or for an individual material (individual procedure). There is a preview function for creating source lists automatically. This allows you to simulate the effects of the source list creation. After update, the source lists can be restored to their original status.

Processing Source Lists When creating source lists automatically, a source list record is created for each info record and each outline agreement item for one or more materials.

Demonstration: Contract Maintenance Purpose This demo will show how to create a contract and how it will be used by the system.

496


November 2001

LO020


System Data System: Client: User ID: Password: Set up instructions: The data will be material T-HM120 and vendor T-K12C20 . Use purchasing organization 1000 and plant 1000. Demo should take approximately 15 minutes. 1.

Choose Logistics → Materials Management → Purchasing → Outline Agreement → Contract → Create.

2.

Create an MK contract for the material T-HM120 and vendor T-K12C20used in the previous demo. Use Purchasing Org. 1000 and Plant 1000. Backdate the validity start date to the first day of last month. Set the end date as the last day of this year. There will be a warning that the validity start period is in the past. Enter to accept the information. Select

3.

Go to the item overview screen, Overview, and set the target quantity at 10,000. Enter a net price of 10 UNI.

4.

Go to the item conditions via Goto, Scales.

5.

Maintain the source list for this material in plant 1000. You can do this while creating the contract by selecting the line item and changing screens via Item, Maintain Source List. Enter your contract as a fixed source of supply and set the source list record as relevant for materials planning (MRP indicator 1) . Backdate the validity start date to coincide with the contract.

6.

Point out that the line item number 10 has transferred over to the source list. Make sure the students understand that the contract number has not yet transferred to the source list because we will not have a system assigned number until we do a Save.

7.

Show an alternate way of creating a source list by going through the menu path and creating it manually. Choose Logistics → Materials Management → Purchasing → Master Data → Source List → Maintain.

Conditions and maintain a price scale

Using the material T-HM120 just added to the source list via the contract, point out that the contract is now referenced in the source list record. 8.

November 2001

Show the follow-on functions for the automatic generation of source lists via the menu path: Logistics → Materials Management → Purchasing → Master Data → Source List → Follow-On Functions → Generate.


497


9.

LO020

Display the stock/requirements list again for your material in plant 1000. If you haven’t already done so, close the purchase requisition from the earlier MRP run so you can run MRP again, this time with a source.

10. Carry out single-item, single-level planning for your material in plant 1000. Choose purchase requisitions in the control parameters. 11. Save the planning run and display the MRP list. Put the header on and explain that the only time the MRP list and stock requirements list are identical is immediately after MRP has been carried out. The MRP list is a snapshot of the stock situation at the time of the planning run, whereas the stock/requirements list is dynamic. 12. Double click on the requisition to see the fixed vendor. Select the Display icon to display the full requisition. In the item detail section under the tab, Source of supply, you can see the contract number assigned from the source list. 13. Explain the scheduling. The date displayed is the availability date of the material. To see the GR date, go to menu items: Settings,Settings, Deadln., Goods receipt date. Note how the column date changes depending on how many GR days are set in the Material Master for this material.

498


November 2001

LO020


401

Creating a Quantity Contract 1.

Logistics → Materials Management → Purchasing → Outline Agreement → Contract → Create

2.

Create a quantity contract by entering the appropriate vendor, agreement type MK, appropriate purchasing organization, purchasing group, and (if applicable) the plant on the initial screen. Select Enter .

Figure 166: Create Contract: Header Data

3.

On the Header Data screen you will automatically get an error message regarding required fields. The validity end date is the required field you need to maintain.

4.

Click the Overview

icon to get to the Item Overview screen.


November 2001


499


LO020

Figure 167: Create Contract: Item Overview

Input your material number, the target quantity, and a net price. If you need to add various condition types to the price, select the Conditions icon.


500


November 2001

LO020


Figure 168: Change Gross Price Condition (PB00): Condition Supplements

5.

On the conditions screen, the system will show as the Gross Price whatever you input as the Net Price on the item overview screen. To modify the Gross Price by adding discounts, surcharges, freight, and so forth, choose a condition type and enter it in a free row below the gross price. The system will prompt you for an amount or a percentage, depending upon the condition type you choose.

6.

To modify the Gross Price or any of the condition types based on quantities of scale, highlight the condition row to be modified, then click on the Scales icon (circled in the above screen).


November 2001


501


LO020

Figure 169: Change Gross Price Condition (PB00): Scales

7.

TheFrom column refers to the threshold quantity that applies to the rate. Here are two examples of using scales: 1. 2.

Gross Price — The more you buy, the lower the unit price. Often referred to as “quantity breaks.” See the above screen. Discount on Net — The more you buy, the higher the discount. See the screen below.


502


November 2001

LO020


Figure 170: Change Gross Price Condition (PB00): Scales Discount % on Net (RA00)

8.

Save your contract.

It is now time for the class to do the exercise on Master Data and Contracts. Running MRP will be done in the next lesson. Allow 40 minutes.

November 2001


503


504


LO020

November 2001

LO020

407


Exercise 21: Master Data and Contracts Exercise Duration: Minutes

Exercise Objectives After completing this exercise, you will be able to: • Enter the materials planning data for a material procured on a consumption-driven basis • Create a contract and enter it in the source list as a fixed source of supply

Business Example To optimize MRP, maintain the materials planning data for a material in the material master record. To make it easier to determine a source of supply, complete some contracts and define them in the system as fixed sources of supply.






Task 1: Maintain materials planning data for a material 1.

The material Ballbearing, cylindrical-## is used in production in plant 1000. Requirements of this material are determined automatically by MRP. Display this material. Determine the material number via F4 help. Also determine which views have already been maintained for this material in plant 1000.


November 2001


505


LO020

Display Material Field

Data

Material Number Created Views .................................. 2.

To which material type is this material assigned, and where do you see this information in the material master? Field

Data

Material type Where displayed You can identify the material type operating supplies from the title bar. Display the purchasing data for this material and determine whether the material is allowed for the “Automatically generated purchase order” function. On the Purchasing tab page, in the General data section, data field Auto. PO is checked √ , so yes, this material is allowed for the automatically generated PO. Create MRP data (MRP 1 and 2) for this material in plant 1000. Take into account the following information: Requirements are planned for the material using the manual reorder point procedure. MRP controller 0## is responsible for this material. The reorder point is 100 pieces. A fixed lot size of 300 pieces is procured as required. The standard delivery time is 7 days, and GR processing, which includes QI, takes 1 day. MRP1 Data Field

Data

MRP type MRP Controller


506


November 2001

LO020


Data

Field Reorder Point Lot size technique Fixed lot size quantity MRP2 Data

Data

Field Delivery time GR processing time

Task 2: Check the vendor master record 1.

In the future, your ballbearing is to be procured by contract from the company CEB Berlin GR.##. You have planned to automate the procurement process for this vendor and want to convert purchase requisitions into purchase orders automatically. You have also arranged with the vendor that you settle deliveries automatically. Ensure that the relevant control data has been maintained in the vendor master record for purchasing organization 1000. Record the relevant indicator fields and how your vendor is set. Vendor Master Purchasing Indicators Field

Data

Task 3: Create a contract 1.

Your Purchasing department has arranged a quantity contract with vendor CEB Berlin Gr.## (T-K12C##) for the material Ballbearing, cylindrical-## (T-HM1##). Create a contract for your material with this vendor using purchasing organization 1000, plant 1000, and purchasing group T##. The validity period for this contract begins the first day of the previous month and lasts till the end of next year. Continued on next page

November 2001


507


LO020

The target quantity is 100,000 pieces, for a price of 10 UNI per piece. On the detail screen for the contract item, enter the confirmation control key T-LA, the InfoUpdate code of C, and the Tax code 1I (Input tax 10%). Hint: Unlike the basic indicator for order acknowledgement requirement, the confirmation control key allows you to configure the types of order acknowledgements you expect and which rules are valid for each. The key T-LA in the training system is set up in such a way that you cannot post a goods receipt unless you have received a shipping notification. Document Number Field

Data

Contract number

Task 4: Maintain a source list 1.

You procure the material T-HM1## via contract release orders for your contract with vendor T-K12C##. Create a source list record for this contract and this material in plant 1000. In the source list record, enter the same validity period as that in the contract. The contract is to be the fixed source of supply for purchasing organization 1000. The contract should also be taken into account by Materials Planning. Save your data.

508


November 2001

LO020


Solution 21: Master Data and Contracts Task 1: Maintain materials planning data for a material 1.

The material Ballbearing, cylindrical-## is used in production in plant 1000. Requirements of this material are determined automatically by MRP. Display this material. Determine the material number via F4 help. Also determine which views have already been maintained for this material in plant 1000. Display Material Data

Field Material Number Created Views .................................. a) b)

Logistics → Materials Management → Material Master → Material Display → Display Current The screen displays the following data: Display Material

2.

Field

Data

Material Number

T-HM1##

Created Views

Basic data, Purchasing data, Accounting data, Plant Stock

To which material type is this material assigned, and where do you see this information in the material master? Data

Field Material type Where displayed

You can identify the material type operating supplies from the title bar. Continued on next page

November 2001


509


LO020

Display the purchasing data for this material and determine whether the material is allowed for the “Automatically generated purchase order” function. On the Purchasing tab page, in the General data section, data field Auto. PO is checked √ , so yes, this material is allowed for the automatically generated PO. Create MRP data (MRP 1 and 2) for this material in plant 1000. Take into account the following information: Requirements are planned for the material using the manual reorder point procedure. MRP controller 0## is responsible for this material. The reorder point is 100 pieces. A fixed lot size of 300 pieces is procured as required. The standard delivery time is 7 days, and GR processing, which includes QI, takes 1 day. MRP1 Data Field

Data

MRP type MRP Controller Reorder Point Lot size technique Fixed lot size quantity


510


November 2001

LO020


MRP2 Data Field

Data

Delivery time GR processing time a)

Logistics → Materials Management → Material Master → Material → Create (General) → Immediately.

b)

Enter your material on the initial screen, then select view MRP1 and MRP2. For organizational level, choose plant 1000 Enter the following data:

c)

MRP1 Data Field

Data

MRP type

VB (Manual reorder point planning)

MRP Controller

0##

Reorder Point

100

Lot size technique

FX

Fixed lot size quantity

300

MRP2 Data Field

Data

Delivery time

7

GR processing time

1

Task 2: Check the vendor master record 1.

In the future, your ballbearing is to be procured by contract from the company CEB Berlin GR.##. You have planned to automate the procurement process for this vendor and want to convert purchase requisitions into purchase orders automatically. You have also arranged with the vendor that you settle deliveries automatically. Ensure that the relevant control data has been maintained in the vendor master record for purchasing organization 1000. Record the relevant indicator fields and how your vendor is set.


November 2001


511


LO020

Vendor Master Purchasing Indicators Field

a) b) c)

Data

Logistics → Materials Management → Purchasing → Master Data → Vendor → Purchasing → Change (Current) On the initial screen, enter vendor T-K12C##, purchasing organization 1000, and check the Purchasing data screen. The indicators are in the Control data section of the screen: Vendor Master Purchasing Indicators Field

Data

GR-based inv. verif.

√

AutoEvalGRSetmt Del.

√

Automatic purchase order

√

Task 3: Create a contract 1.

Your Purchasing department has arranged a quantity contract with vendor CEB Berlin Gr.## (T-K12C##) for the material Ballbearing, cylindrical-## (T-HM1##). Create a contract for your material with this vendor using purchasing organization 1000, plant 1000, and purchasing group T##. The validity period for this contract begins the first day of the previous month and lasts till the end of next year. The target quantity is 100,000 pieces, for a price of 10 UNI per piece.


512


November 2001

LO020


On the detail screen for the contract item, enter the confirmation control key T-LA, the InfoUpdate code of C, and the Tax code 1I (Input tax 10%). Hint: Unlike the basic indicator for order acknowledgement requirement, the confirmation control key allows you to configure the types of order acknowledgements you expect and which rules are valid for each. The key T-LA in the training system is set up in such a way that you cannot post a goods receipt unless you have received a shipping notification. Document Number Field

Data

Contract number a) b)

Logistics → Materials Management → Purchasing → Outline Agreement → Contract → Create Enter the data as shown in the following tables: Create Contract: Initial Screen Field

Data

Vendor

T-K12C##

Agreement type

MK

Purch. organization

1000

Purchasing group

T##

Plant

1000

Header Data Field

Data

Validity period start date

First day of previous month

Validity period end date

12/31 of next year


November 2001


513


LO020

Item Overview Data Field

Data

Material

T-HM1##

Target quantity

100000

Net Price

10

Item Detail Data

c)

Field

Data

InfoUpdate

C

ConfContrK

T-LA

Tax code

1I

The system displays the contract number.

Task 4: Maintain a source list 1.

You procure the material T-HM1## via contract release orders for your contract with vendor T-K12C##. Create a source list record for this contract and this material in plant 1000. In the source list record, enter the same validity period as that in the contract. The contract is to be the fixed source of supply for purchasing organization 1000.


514


November 2001

LO020


The contract should also be taken into account by Materials Planning. Save your data. a)

Logistics → Materials Management → Purchasing → Master Data → Source List → Maintain

b) Maintain Source List: Initial Screen Field

Data

Material

T-HM1##

Plant

1000

Maintain Source List: Overview Screen

November 2001

Field

Data

Valid from

First day of previous month

Valid to

12/31 of next year

Agreement

Your contract number

Itm

10

Fixed

√

MRP

1


515


LO020

Lesson Summary You should now be able to: • Enter the materials planning data for a material procured on a consumption-driven basis using reorder point planning • Create a quantity contract and enter it in the source list as a fixed source of supply


For further information on contracts, go to the SAP Library. You will see the main menu for the SAP Portal. Use the following menu path after you have linked to the site below: SAP R/3 → appropriate release → appropriate language → Logistics → Materials Management (MM) → Purchasing (MM-PUR)→ Outline Purchase Agreements with Vendors

http://help.sap.com

516


November 2001

LO020

Lesson: 419

Lesson: Material Requirements Planning and Generation of Purchase Orders

Material Requirements Planning and Generation of Purchase Orders Lesson Duration: 60 Minutes

Lesson Overview After revisiting the stock/requirements list, the students will run a single-item, single-level planning run, and then analyze the results in the stock/requirements list. MRP should create purchase requisitions for each of the student’s materials. They will then run the Auto. PO program to see how purchase orders are created by the system when all the data is in place.


Display the current stock/requirements list for a material Carry out a single-item planning run for a material and display the result Create purchase orders automatically

We will be working exclusively with manual reorder point procedure in this lesson. Students should be made aware that there are other types of MRP planning available in the R/3 system.

Business Example The project team wants to test the following type of procurement scenario: For material requirements that are planned using the reorder point procedure, the MRP run checks whether stock of the material is lower than the reorder point and, therefore, whether an order proposal should be created. During this procedure, MRP carries out source determination. Purchase requisitions with a fixed source of supply can be converted automatically into purchase orders.

Material Requirements Planning You use the MRP type in the Materials Planning view to define the procedure you want to use to plan requirements of a material. You can define different materials planning procedures for the same material in different plants.

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The main procedures are: • • • • •

Reorder point planning Material requirements planning Forecast-based planning Master production scheduling Time-phased materials planning

Figure 171: Materials Planning Procedures

Material Planning Procedures For those who need to know more about the different consumption-based planning types, recommend LO525 and help them with the schedule off-line. If requirements for a material are planned automatically and MRP is active in the plant, the system automatically carries out planning file entries upon transactions relevant to materials planning (goods issues, reservations, change in a material’s planning data, execution of a forecast for material, etc.). You can also enter planning file entries manually. You can carry out materials requirements planning online or in the background. Planned orders are proposals used for requirements coverage. They can be converted to purchase requisitions in a single step.

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You can also create purchase requisitions directly instead of planned orders.

Figure 172: Overview of Materials Requirements Planning

To automatically convert purchase requisitions to purchase orders, the following criteria must be fulfilled: •

•

You have to allow the automatic purchase order for each material and vendor. You therefore have to set the indicator for automatic purchase orders in the Purchasing view of the material master record and in the Purchasing data view of the vendor master record. The items in the purchase requisition must have a valid source of supply.

You can carry out the function online or in the background.

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Figure 173: Automated Generation of Purchase Orders

Automated Generation of Purchase Orders This function enables you to create purchase orders automatically. You only have to intervene if an error occurs. This slide shows the prerequisites for using the function and the basics of generating purchase orders automatically. The manual reorder point procedure uses the MRP indicator VB. The reorder point procedure is based on a comparison between the warehouse stock and the reorder point. If the available warehouse stock is less than the reorder point, the system initiates requirements calculation. The reorder point comprises the expected average material requirements during the replenishment lead time and the safety stock. The following values have to be taken into account when the reorder point is defined: • • •

The safety stock Prior consumption or future requirements The replenishment lead time

The safety stock is used to cover unplanned excess consumption during the replenishment lead time and additional requirements in the case of delivery delays.

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Figure 174: Reorder Point Planning

Reorder Point Planning Explain the basics of reorder point planning without going into too much detail. It is covered further in LO525.

Reorder Point Planning In reorder point planning, the available warehouse stock is calculated from the following: Warehouse stock + order quantity (purchase orders, firm planned orders, and firm purchase requisitions). If the available warehouse stock is less than the reorder point, there is a shortage of materials. The shortage quantity is the difference between the reorder point and the available warehouse stock. The purchase order quantity is derived from the lot-sizing procedure in the material master record. The system bases the requirement date on the planning date.

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Figure 175: Net Requirements Calculation in Reorder Point Planning

Net Requirements Calculation in Reorder Point Planning Explain the basic netting calculation: first how MRP determines if there is a shortage, and if there is, how it then determines the purchase quantity.

Static Lot-Sizing Procedures In static lot-sizing procedures, the system does not take future shortages into account; that is, if it determines shortages, the system creates an order proposal for the quantity of the static lot size.

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Figure 176: Static Lot-Sizing Procedures

If you have specified that the exact lot size (lot-for-lot order quantity) is to be used, the system uses the exact shortage quantity as the order quantity in the case of a material shortfall. If there are several goods issues leading to a material shortfall in one day, the system groups the shortage quantity from this day in one order proposal, rather than creating an order proposal for each shortage. If you have specified that the fixed order quantity is to be used, the system uses the fixed lot size quantity as the order quantity in the case of a material shortfall. If this order quantity is not sufficient to cover the shortage, the system generates several order proposals for the same date until the shortage has been covered. If you have specified that the order quantity “replenishment up to maximum stock level” is to be used, the system creates an order proposal for the quantity that is required to reach the maximum stock level defined in the material master record.

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Figure 177: Materials Requirements Planning

Materials Requirements Planning Mention that the usual way that MRP is run is total planning in the background. However, in the classroom we will each be running MRP on our own materials with single-item, single-level processing.

Calculation of Deadlines From the date of the purchase requisition’s creation, the R/3 System calculates the material’s availability date by taking into account the three time components, purchasing processing time, planned delivery time, and goods receipt processing time.

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Figure 178: Calculation of Deadlines

The processing time for Purchasing is the time required to convert a purchase requisition into a purchase order and issue it. The time required is measured in working days according to the factory calendar. It is plant-dependent and set in Customizing for Materials Planning. The planned delivery time is the time from the issue of the purchase order to the receipt of the goods at the vendor. You enter this in calendar days in the material master, info record, and/or contract. The GR processing time is the time required from the goods receipt until the material is available. It is entered in the material master, and/or contract, in working days according to the factory calendar. Calculation of Deadlines This type of scheduling for reorder point planning is known as forward scheduling.

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Figure 179: Format of the Stock/Requirements List

A stock/requirements list informs you of the available quantity, based on the stock situation, requirements, and receipts. The stock/requirements list is dynamic; that is, every time you call up the function, the system redetermines the stock elements, receipt elements, and issue elements (for example, plant stock, purchase orders, and reservations). There is an individual display function and collective evaluation function for the stock/requirements list. The MRP list is another function used for evaluation in MRP. This document describes the status of a material at the time of the planning run. The MRP list is a static report whereas the stock/requirements list is a dynamic report.

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Figure 180: Stock/Requirements List

Format of the Stock Requirements List Briefly explain the difference between the stock/requirements list and the MRP list. Mention that you will be showing this difference in your next demo.

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Figure 181: Purchase Req. with Assigned Source of Supply

The system can carry out source determination in a planning run. Outline agreements or vendors with a purchasing info record are possible sources of supply for external procurement. If the system determines a clearly defined source of supply (for example, from a contract entered in the source list) and a purchase requisition is created, the block for procurement options on the detail screen for purchase requisition items contains the source of supply. If a contract has been entered as a procurement option in the purchase requisition item, you change this item to a contract release order. This copies the conditions from the contract to the contract release order. Note: Purchase requisition items that have been assigned a source of supply can be converted to purchase orders with the function for automatic purchase order generation, provided that this is defined in the material master and vendor master record.

Purchase Req. with Assigned Source of Supply Purchase requisition items with assigned sources of supply (outline agreements, info records) can be converted to purchase orders automatically.

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Figure 182: Release Documentation

Contract release orders are purchase orders that are created with reference to a contract. The release order documentation (for example, the quantity released until now, and the open quantity) is automatically updated when you create a contract release order. This is used for monitoring the contract. The release order documentation is contained in the statistics for a contract item. Note: You can enter contracts as a source of supply in the purchase requisition. This ensures that the outline agreement is referenced when the purchase requisition is converted into a purchase order. We would also call this a contract release order.

Release Documentation The statistics of a contract item contains information on release orders, for example: • •

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Quantity released thus far Open quantity


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Demonstration: Requirements Planning with Source Determination Purpose Create a purchase order automatically for your material online. Display the changes to the stock/requirements list, the requisition, and the contract as a result of this process. Allow approximately 20 minutes.

System Data System: Client: User ID: Password: Set up instructions: 1. Display the “before” stock/requirements list for your material in plant 1000. Point out the requisition number.

530

2.

Create a purchase order automatically for the material online. Logistics → Materials Management → Purchasing → Purchase Order → Create → Automatically via Purchase Requisitions

3.

Use your own purchasing group, T20 , purchasing org. 1000, and check Detailed log.

4.

Display the stock/requirements list to show the new purchase order.

5.

Click on the detail display of the purchase order. In the item overview portion of the PO, point out the info record number that was created, the reference to the requisition that MRP proposed, and the reference to the contract that served as the source assignment.

6.

In the item overview portion of the PO, double-click on the requisition number. In the requisition, choose the status tab in the item detail section of the requisition and show the link to the PO.

7.

Green arrow back to the PO and double-click on the contract number. Show the students that in the contract display, they can go to Item, Statistics, Release documentation to see the release history of the contract.


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For the exercise, allow 40 minutes.

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Exercise 22: Single-Item Planning and Automatic Generation of Purchase Orders Exercise Duration: Minutes

Exercise Objectives After completing this exercise, you will be able to: • The learner will be able to work with the stock/requirements list. • The learner will be able to carry out a manual single-item planning run for a material. • The learner will be able to generate purchase orders automatically via MRP.

Business Example You must familiarize yourself with the stock/requirements list so that you can improve the procurement process for your materials.




CATT: [If a CATT is required, enter the CATT name. Delete this tag if not used.] Set up instructions: 1. 2. 3. 4.

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Material T-HM1## must be created in the system with views MRP 1 and MRP2 completed in the material master. Vendor T-K12C## must be set up for automated processing in the vendor master. A contract and source list must be maintained for your vendor and material. All of these items should be completed in exercise one of this unit by the learners.


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Task 1: Display the stock/requirements list 1.

You need information on the availability of material T-HM1##. Display the stock/requirements list for this material in plant 1000. Also display the detail data for the header. What is the menu path? _________________________________________ What is the MRP type shown? ––––––––––––––––––––––––––––––––––––––––– What is the reorder point? ––––––––––––––––––––––––––––––––––––––––– Which lot size is procured? _________________________________________

Task 2: Carry out a single-item planning run 1.

Carry out a single-item, single-level planning run for your material for plant 1000 as a net change planning run (processing key NECH). You want to create purchase requisitions. You also want to create an MRP list to document the result, but you do not want to display the result before saving.

Task 3: Display the stock/requirements list and purchase requisition 1.

Display the stock/requirements list for your material in plant 1000 again. How has the available stock changed? ________________________________________ Which procurement proposals does the system suggest? ________________________________________

2.

Display the purchase requisition for your material. What is the delivery date? ______________________________________ Has a source of supply been entered? Continued on next page

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_________________________________________

Task 4: Create purchase orders automatically 1.

Carry out online the function for automatically creating a purchase order for your purchase requisition. Select only the purchase requisitions for your purchasing group T## that have been assigned to your vendor T-K12C## in plant 1000. There should be a new purchase order for each purchasing group. Request a detailed log before running the program, and set the closed indicator for the requisitions. Hint: This function is contained in the Purchasing menu under the follow-up functions for purchase requisitions. It can also be found under Purchase Order → Create.

2.

What message does the system display when the function is complete? ___________________________________________

Task 5: Display the stock/requirements list and the new purchase order

Result You should now have successfully run MRP and created an automatic purchase order.

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Solution 22: Single-Item Planning and Automatic Generation of Purchase Orders Task 1: Display the stock/requirements list 1.

You need information on the availability of material T-HM1##. Display the stock/requirements list for this material in plant 1000. Also display the detail data for the header. What is the menu path? _________________________________________ What is the MRP type shown? ––––––––––––––––––––––––––––––––––––––––– What is the reorder point? ––––––––––––––––––––––––––––––––––––––––– Which lot size is procured? _________________________________________ a) b)

Select the icon that looks like a funnel with a blue square attached to see the expanded header details. Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Evaluations → Stock/Reqmts list

c) Expanded Header Details Field

Data

MRP Type

VB

Reorder Point

100

Lot size

Fixed lot size:

300


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Task 2: Carry out a single-item planning run 1.

Carry out a single-item, single-level planning run for your material for plant 1000 as a net change planning run (processing key NECH). You want to create purchase requisitions. You also want to create an MRP list to document the result, but you do not want to display the result before saving. a) b)

Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Planning → Single-Item, Single Level Fill in the screen prompts as follows: Single-Item, Single-Level Field

Data

Material

T-HM1##

Plant

1000

Processing key

NETCH

Create pur. req.

1

Create MRP list

1

Display the results before you save.

(leave blank)

Task 3: Display the stock/requirements list and purchase requisition 1.

Display the stock/requirements list for your material in plant 1000 again. How has the available stock changed? ________________________________________ Which procurement proposals does the system suggest? ________________________________________ a) b) c)

2.

Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Evaluations → Stock/Reqmts List Availability has increased at the end of replenishment lead time. Based on a purchase requisition, a goods receipt of 300 (fixed lot size) is expected after the replenishment lead time.

Display the purchase requisition for your material. What is the delivery date? Continued on next page

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______________________________________ Has a source of supply been entered? _________________________________________ a) b)

c) d) e)

Choose the Add data for element (magnifying glass icon in first column of purchase requisition row). The delivery date is calculated as follows: Current date + replenishment lead time (RLT = purchasing procurement time (for the plant) + planned delivery time + GR processing time). A vendor has been selected. Your vendor T-K12C## on contract number “your contract number” should be indicated. The end of replenishment lead time. Yes.

Task 4: Create purchase orders automatically 1.

Carry out online the function for automatically creating a purchase order for your purchase requisition. Select only the purchase requisitions for your purchasing group T## that have been assigned to your vendor T-K12C## in plant 1000.


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There should be a new purchase order for each purchasing group. Request a detailed log before running the program, and set the closed indicator for the requisitions. Hint: This function is contained in the Purchasing menu under the follow-up functions for purchase requisitions. It can also be found under Purchase Order → Create. a)

b)

2.

Logistics → Materials Management → Purchasing → Requisition → Follow-On Functions → Create Purchase Order → Automatically via Purchase Requisitions or alternatively: Logistics → Materials Management → Purchasing → Purchase Order → Create → Automatically via Purchase Requisitions Enter data as follows: Field

Data

Purchasing Group

T## (LO020–##)

Vendor

T-K12C##

New Purchase order per purchasing group

√

Detailed log

√

Set purchase requisition to closed

1

What message does the system display when the function is complete? ___________________________________________ a)

Message after completion: Purchase Order 450000#### created. By checking the Detailed Log prompt before running this function, you will get the PO number.

Task 5: Display the stock/requirements list and the new purchase order

Result You should now have successfully run MRP and created an automatic purchase order.

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Lesson Summary You should now be able to: • Display the current stock/requirements list for a material • Carry out a single-item planning run for a material and display the result • Create purchase orders automatically

Related Information The following SAP Library sites will give more information on this topic. Follow the suggested menu paths after you have logged into http://help.sap.com: •

•

540

SAP R/3 → appropriate release → appropriate language → Logistics → Materials Management (MM) → Consumption-Based Planning (MM-CBP) → Consumption-Based Planning → MRP Procedures in Consumption-Based Planning → Reorder Point Planning → Reorder Point Planning Procedure SAP R/3 → appropriate release → appropriate language → Logistics → Materials Management (MM) → Purchasing (MM-PUR) → Optimized Purchasing → Automatic Generation of POs from Requisitions


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Lesson: 439

Lesson: Shipping Notification and Goods Receipt

Shipping Notification and Goods Receipt Lesson Duration: 45 Minutes

Lesson Overview Setting up shipping notifications in the purchasing document, maintaining notification correspondence from the vendor, and receiving against shipping notifications are discussed in this lesson.


Enter a shipping notification for a purchase order Enter a goods receipt with reference to the shipping notification

When timing and receiving a precise quantity are critical to your business, it is a good idea to set up shipping notifications with your vendor. Then the system won’t calculate from the purchase order for delivery date and quantity when circumstances change.

Business Example Your company uses shipment confirmation to plan receipts. Goods are received with reference to the confirmation.

Order Acknowledgements You can enter vendor acknowledgements for purchase orders or delivery schedules. Acknowledgements are sent by the vendor to inform customers when ordered materials are expected to arrive (for example, order acknowledgements, loading or transport confirmations, and shipping notifications).

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Figure 183: Order Acknowledgements

If you do not use acknowledgements, Materials Planning can only go by the delivery dates and quantities in the purchase order. Acknowledgements enable you to plan more accurately by providing you with the actual delivery dates and quantities. •

•

•

542

If you expect an order acknowledgement for your purchase order, you can set a confirmation control key in the purchase order item. You can configure which type of order acknowledgements you expect to receive and whether these are relevant to Materials Planning and goods receipt. You configure your system so that a particular type of order acknowledgement is referenced (for example, a shipping notification) at goods receipt. The goods receipt cannot be posted without an order acknowledgement. You can post a goods receipt with reference to a shipping notification or purchase order. If you enter the goods receipt with reference to the purchase order, the system recognizes from the confirmation control key whether one or more order acknowledgements are required, and whether acknowledgements have already been entered in the system. The goods receipt can be posted only for the quantities on the acknowledgement.


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Order Acknowledgements Shipping notifications are located within the Inbound delivery menu item. When doing the goods receipts, you have to select Inbound delivery in the list of documents for which you are going to perform the goods receipt.

Demonstration: Shipping Notification and Goods Receipt Purpose Show how to set up, maintain, and receive a purchase order using shipping notifications.

System Data System: Client: User ID: Password: Set up instructions: 1. In the Purchasing Implementation Guide, show the settings for the confirmation control key T-LA and its confirmation sequence. Explain the parameters. IMG → Materials Management → Purchasing → Confirmations → Set up confirmation control . Caution: If the participants are complete beginners, it may be better not to go into the IMG at this stage. 2.

Display your purchase order from vendor T-K12C20 for material T-HM120. On the item detail section show the confirmation control key T-LA and point out that the rest of the tab is empty. The key was copied from the contract that was referenced.

3.

Display the stock/requirements list to remind the class of the quantity and delivery date for this PO.

4.

Create a shipping notification for your purchase order, entering LO020-R as the External ID. Enter the delivery date for one week later. Logistics → Materials Management → Purchasing → Purchase Order → Inbound delivery → Create • •

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Enter a delivery date at least one week later than the PO delivery date. Enter LO020–R as the external ID.


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5.

Display the Confirmation tab on the PO again to show the new entry that resulted from the shipping notification.

6.

Display the stock/requirements list again to show the new entry for the shipping notification.

7.

Enter a goods receipt with reference to the shipping notification. Logistics → Materials Management → Inventory Management → Goods Movement → Goods Receipt → For Purchase Order → PO Number Unknown. Change the document type to Inbound delivery. Search the document number on the external ID LO020–R.

8.

Display the confirmation tab for your purchase order item. Explain the entries under “Quantity Reduced”.

The students should now do the exercise for Shipping Notification and Goods Receipt. Allow 40 minutes.

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Exercise 23: Shipping Notification and Goods Receipt Exercise Duration: Minutes

Exercise Objectives After completing this exercise, you will be able to: • Create a shipping notification with reference to a purchase order • Post a goods receipt with reference to a shipping notification

Business Example So that you are always informed of actual delivery dates, you have arranged with several vendors that they send you a shipping notification as well as an order acknowledgement. This ensures that production is not held up because of unexpected shortages.






Task 1: Enter shipping notification 1.

The vendor confirms that it will stage the complete ordered quantity one week late. The vendor’s identification for the shipping notification is LA1–##. Enter this shipping notification as an incoming delivery for your purchase order. Change the delivery date and enter the external identification number LA1–## for the shipping notification. Field

Data

Number of Shipping Notification Continued on next page

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Can you tell from the purchase order that a shipping notification has been entered for an item? If yes, where is this information stored, and which data for the shipping notification can be found in the purchase order?

Task 3: Display stock/requirements list 1.

Display the stock/requirements list for the material for plant 1000 again. How has the available stock changed? Which procurement proposals does the system suggest? Display the purchase order. What is the delivery date in the purchase order item?

Task 4: Enter goods receipt into stock 1.

The vendor sends the material you ordered as stated on the order acknowledgement. Post the goods receipt into storage location 0001 in plant 1000. Hint: You can reference the inbound delivery at goods receipt. You can search for your inbound delivery via the vendor or the external identification LA1–##. Field

Data

Material document number


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Finally, check again the available stock for material T-HM1## in plant 1000. What is the actual available quantity, and which MRP elements does the list still contain?


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Solution 23: Shipping Notification and Goods Receipt Task 1: Enter shipping notification 1.

The vendor confirms that it will stage the complete ordered quantity one week late. The vendor’s identification for the shipping notification is LA1–##. Enter this shipping notification as an incoming delivery for your purchase order. Change the delivery date and enter the external identification number LA1–## for the shipping notification. Field

Data

Number of Shipping Notification a) b)

Logistics → Materials Management → Purchasing → Purchase Order → Inbound Delivery → Create Enter the following data to create your shipping notification: Field

Data

Purchase Order

PO number from Exercise 22/Task 4/Step 2a

Delivery Date

Delivery Date + 1 week

Ext. Identification

LA1–##


Can you tell from the purchase order that a shipping notification has been entered for an item?


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If yes, where is this information stored, and which data for the shipping notification can be found in the purchase order? a)

Logistics → Materials Management → Purchasing → Purchase Order → Display

b) c)

Yes, the information is in Item detail — tab page: Confirmations. You can find the following data for the shipping notification in the purchase order: • • • • •

Delivery date Confirmed quantity External document number Date created Internal document number


Display the stock/requirements list for the material for plant 1000 again. How has the available stock changed? Which procurement proposals does the system suggest? Display the purchase order. What is the delivery date in the purchase order item? a) b)

c)

Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Evaluations → Stock/Reqmts List. The MRP element now displays ShipNt next to the Purchase Order in the stock/requirements list. The system now calculates the availability date from the delivery date specified in the shipping notification. The purchase order item still contains the original delivery date.

Task 4: Enter goods receipt into stock 1.

The vendor sends the material you ordered as stated on the order acknowledgement. Post the goods receipt into storage location 0001 in plant 1000. Hint: You can reference the inbound delivery at goods receipt. You can search for your inbound delivery via the vendor or the external identification LA1–##.


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Data

Field Material document number a)

b) c)

Logistics → Materials Management → Inventory Management → Goods Movement → Goods Receipt → For Purchase Order → PO Number Known. Enter the goods receipt into plant 1000, storage location 0001 for inbound delivery. To search for the shipping notification number via the external identification LA1–##, change the reference document to Inbound Delivery, then select the tabbed matchcode list for the document number prompt, and enter LA1–## in the External ID field.


Finally, check again the available stock for material T-HM1## in plant 1000. What is the actual available quantity, and which MRP elements does the list still contain? a) b)

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Logistics → Materials Management → Material Requirements Planning (MRP) → MRP → Evaluations → Stock/Reqmts List The screen displays the following data: Field

Data

Available Quantity

300 pcs

MRP Element

Available Stock


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Lesson Summary You should now be able to: • Enter a shipping notification for a purchase order • Enter a goods receipt with reference to the shipping notification


•

550

For more information on Shipping Notifications and Acknowledgements, check the following SAP Library address: SAP R/3 → appropriate release → appropriate language → Logistics → Materials Management (MM)→ Purchasing (MM-PUR)→ Vendor Confirmations → Procurement Using Vendor Confirmations http://help.sap.com


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Lesson: 447

Lesson: Evaluated Receipt Settlement (ERS)

Evaluated Receipt Settlement (ERS) Lesson Duration: 30 Minutes

Lesson Overview This lesson examines the streamlining of the invoicing procedure as part of the procurement cycle.


Start the program for evaluated receipt settlement online Identify how the entry of the invoice affects the purchase order history

Explain that this procedure is not necessarily for every material that is purchased. ERS works best when it involves a steady-priced, regularly ordered item.

Business Example Your company has agreed with the vendor that you will automatically settle delivered quantities at the conditions arranged in the purchase order.

Evaluated Receipt Settlement In evaluated receipt settlement (ERS), you arrange with the vendor that he or she does not create an invoice for a purchase order transaction. Instead, your system automatically posts the invoice document on the basis of the data from the purchase order and goods receipts. This ensures that there are no discrepancies between the goods invoiced and the goods received. The system determines the amount invoiced for this purchase order from the order prices in the PO, the payment conditions, tax information, and the delivery quantity entered at goods receipt.

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Figure 184: Evaluated Receipt Settlement

If you use the ERS procedure, the conditions arranged with the vendor must be clear and you have to continually update the purchase orders in the system. You cannot process planned delivery costs with the ERS procedure. In Logistics Invoice Verification, you can create a message for the vendor. Evaluated Receipt Settlement This slide shows that there will be no invoice receipt from the vendor. R/3 creates an internal invoice. Pricing is taken from the PO, and quantity received is taken from the GR material document. A message (notification) is then sent to the vendor.

Automatic Payment Program The automatic payment program will choose ERS invoices for payment in the same way it chooses regular invoices from the vendor.

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Figure 185: Automatic Payment Program

Automatic Payment Program The automatic payment program will not be run for this lesson, however, if you wish you can show Vendor Line Item Display, transaction code FBL1N after you have run ERS.

ERS Procedure: Prerequisites To enable you to settle goods receipts for a vendor automatically, the following prerequisites must be met: • •

•

In the vendor master record, you must set the indicator for ERS and for goods-receipt-based invoice verification. You also have to set the indicators for ERS and goods-receipt-based invoice verification in the purchase order item. Additionally, you must maintain a tax code for the item. You must enter the goods receipt with reference to the purchase order. Note: ERS cannot be carried out if the purchase order price for an item is only an estimated price (indicator in the purchase order item). Note: If you do not want to automatically settle a particular material for a vendor, you must exclude the vendor and the material from the ERS procedure in the info record.

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Figure 186: ERS Procedures: Prerequisites

ERS Procedure: Prerequisites Emphasize the importance of the prerequisite data in the vendor master and the info record “no ERS”indicator. The field that often gets overlooked is the tax code.

ERS Procedure: Execution In ERS, you have to determine which procedures are to be processed and the criteria according to which documents are created. You can carry out a test run before you carry out an actual settlement. The result of the test run is stored in a log informing you which transactions were settled and which were not.

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Figure 187: ERS Procedure: Execution

In Logistics Invoice Verification, the system creates a message in addition to the log and depending on how your system is configured, it sends a message to the vendors to inform them about the settlements. ERS Procedure: Execution Point out the options for selecting documents to be considered for the ERS run, and also the options on the format of the output for the run.

This slide explains the selection options of material documents for settlement via ERS. For example, you can run ERS • • • •

November 2001

By vendor By purchase order By purchase order item By goods receipt document


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Demonstration: Invoice Processing Using ERS Purpose Show the necessary setup for ERS and execute the automatic processing.

System Data System: Client: User ID: Password: Set up instructions: 1. Display the vendor master for your vendor T-K12C20, and point out the ERS indicator AutoEvalGRSettmtDel and the GR-based IV indicator. All material purchased from this vendor will now be based on the ERS process, unless we cancel the default in our purchasing documents, or unless we set an exception in an info record. 2.

Create an info record for your vendor T-K12C20 and a completely different material, such as M-20, which will not be subject to ERS processing. This material costs around $1000 for your net price. For almost everything else you can put whatever you want in the required fields. Just make sure you check No ERS on the Purchasing Data screen.

3.

Create a new PO from your previous contract. In the item detail section, show the invoice tab. Note that the ERS box and the GR-based IV box are already checked by default. Note also that the tax code 1I has defaulted from the contract (If you forgot to include it in the contract, be sure to do it now. ERS will not work without it!).

4.

Do an Inbound delivery that doesn’t change anything.

5.

Run ERS in test mode. Logistics → Materials Management → Logistics Invoice Verification → Automatic Settlement → Evaluated Receipt Settlement (ERS). Choose Company code 1000, Vendor T-K12C20, Document selection 3 , and check √ the Test run box.

6.

556

Run ERS a second time, only this time choose Document selection 4, and don’t use the test mode.


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LO020


7.

Discuss the documents displayed: •

8.

Ref. doc. is the material document. You can see it by double-clicking on the document number. • Purch. doc. is the purchase order. Double-click on it and observe the new PO history information, which includes the invoice just created. • Doc. no. is the invoice created by ERS. Double-click to see the actual invoice. While there, click on the Follow-on documents button to see the accounting entries that were made. Show a print preview of the message that is sent to the vendor. Logistics → Materials Management → Logistics Invoice Verification → Further Processing → Output Messages.

Figure 188: Evaluated Receipt Settlement (ERS) with LIV

The students will now do their exercise on ERS processing. Allow 15 minutes.

November 2001


557


558


LO020

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453


Exercise 24: Evaluated Receipt Settlement Exercise Duration: Minutes

Exercise Objectives After completing this exercise, you will be able to: • Settle a goods receipt automatically using evaluated receipt settlement • Interpret the information in standard analyses

Business Example You have agreed with the vendor that you will settle delivered quantities automatically using the conditions arranged in the purchase order.






Task 1: Settle a goods receipt automatically 1.

Settle the goods receipts you entered today and yesterday for vendor CEB Berlin Gr.## (T-K12C##) in company code 1000. You should create a separate invoice for each order item. Use the test mode first to check that you have selected the correct goods receipts. Data

Field Document Number


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LO020

Task 2: Display the invoice document 1.

Display the invoice document and the corresponding financial acccounting document. Write down of the vendor account number and the amount in liabilities incurred towards the vendor. Field

Data

Account No. Amount

Task 3: Display the purchase order

560


November 2001

LO020


Solution 24: Evaluated Receipt Settlement Task 1: Settle a goods receipt automatically 1.

Settle the goods receipts you entered today and yesterday for vendor CEB Berlin Gr.## (T-K12C##) in company code 1000. You should create a separate invoice for each order item. Use the test mode first to check that you have selected the correct goods receipts. Field

Data

Document Number a)

Logistics → Materials Management → Logistics Invoice Verification → Automatic Settlement → Evaluated Receipt Settlement.

b)

Enter the data from the following table: Field

Data

Company Code

1000

GR Posting Date

Yesterday through Today’s Date

Vendor

T-K12C##

Doc. Selection

3

Test Run

√

Once you have made the correct selections, carry out ERS again, but without doing a test run.

Task 2: Display the invoice document 1.

Display the invoice document and the corresponding financial acccounting document. Write down of the vendor account number and the amount in liabilities incurred towards the vendor.


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LO020

Data

Field Account No. Amount a)

Logistics → Materials Management → Logistics Invoice Verification → Further Processing → Display Invoice Document Hint: Alternative path: Display Purchase Order → Purchase Order History (tab) → Invoice Verification Document (double click)

b)

The screen will display the following data: Field

Data

Account No.

T-K12C##

Amount

3300 UNI

Task 3: Display the purchase order

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Lesson Summary You should now be able to: • Start the program for evaluated receipt settlement online • Identify how the entry of the invoice affects the purchase order history

Related Information Additional information on ERS can be found in our SAP Library by using the following menu path after linking to the URL below: SAP R/3 → appropriate release → appropriate language → Logistics → Materials Management (MM) → Logistics Invoice Verification → Automatic Settlement → Evaluated Receipt Settlement (ERS) http://help.sap.com

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Unit Summary

LO020

Unit Summary You should now be able to: • Enter the materials planning data for a material procured on a consumption-driven basis using reorder point planning • Create a quantity contract and enter it in the source list as a fixed source of supply • Display the current stock/requirements list for a material • Carry out a single-item planning run for a material and display the result • Create purchase orders automatically • Enter a shipping notification for a purchase order • Enter a goods receipt with reference to the shipping notification • Start the program for evaluated receipt settlement online • Identify how the entry of the invoice affects the purchase order history

564


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Test Your Knowledge

459

Test Your Knowledge These are questions for assessing student understanding of this lesson.

1.

Which of the following fields is essential to automatic PO creation? Choose the correct answer(s).

□ □ □ □ 2.

A B C D

GR-based inv. verif. in the Vendor Master Fixed vendor field in Source List Autom. PO in the Material Master MRP type in the Material Master

The time it takes to process a material from the time it is received until it is considered available to use in stock is time that is considered part of the total lead time for a purchased item. Determine whether this statement is true or false.

□ □

True False

3.

Name at least three characteristics of an MK type of contract.

4.

Reorder point planning takes future sales into consideration when calculating planned orders. Determine whether this statement is true or false.

□ □

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True False


565

Test Your Knowledge

5.

LO020

The net requirements calculation in reorder point planning uses all but one of the following figures in determining the planned order. Which item is NOT used? Choose the correct answer(s).

□ □ □ □ 6.

A B C D

Sales orders Available on-hand stock Lot size technique quantity Open purchase orders

MRP assigns vendors used by the automatic PO process based on Fill in the blanks to complete the sentence.

7.

In order to enter a shipping notification for a specific purchase order, what must first be done? Choose the correct answer(s).

8.

□

A

□ □ □

B C D

The material must have a shipping code in the material master. The PO must have a valid confirmation control code. The vendor must have a shipping code in the vendor master. There must be an existing info record for the vendor/material combination.

Once you have received a shipping notification and the information is in the purchase order, you can change the date or quantity right in the PO. Determine whether this statement is true or false.

□ □ 9.

True False

If you use shipping notifications on a PO, during goods receipts you can receive either by PO number or by Inbound Delivery number Determine whether this statement is true or false.

□ □

566

True False


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LO020

Test Your Knowledge

10. Identify where you must set up an ERS vendor.

11. What other field must be checked for ERS to work properly?

12. If a vendor is set up for ERS, everything you buy from that vendor must be subject to ERS processing. Determine whether this statement is true or false.

□ □

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True False


567

Test Your Knowledge

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LO020

Answers 1.

Which of the following fields is essential to automatic PO creation? Answer: C As long as both the vendor master and the material master are indicated for automatic PO’s, any requisition with an allocated vendor on it can be run through the automatic PO processing. Running MRP is not required, even though it is usually desired for an optimal procurement cycle.

2.

The time it takes to process a material from the time it is received until it is considered available to use in stock is time that is considered part of the total lead time for a purchased item. Answer: True For reorder point planning, the total lead time consists of purchasing processing time, planned delivery time, and goods receipt processing time.

3.

Name at least three characteristics of an MK type of contract. Answer: Any three of the following would be correct: It has a validity period; It has a target quantity to be purchased; It has pricing that will be used in the release documents; It can be referenced in the source list; It can be used by MRP for assigning a vendor to a requisition.

4.

Reorder point planning takes future sales into consideration when calculating planned orders. Answer: False Reorder point planning is based on prior consumption and replenishment lead time. The reorder point calculation is based on these two considerations.

568


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Test Your Knowledge

5.

The net requirements calculation in reorder point planning uses all but one of the following figures in determining the planned order. Which item is NOT used? Answer: A With straight reorder-point, future commitments such as sales orders are not considered in the netting calculation. There are some special reorder-point MRP types in R/3 that do consider external requirements in addition to the reorder-point level, but they were not used in this lesson.

6.

MRP assigns vendors used by the automatic PO process based on finding a suitable source for the material. Answer: finding a suitable source for the material. Suitable sources that MRP looks for include quota arrangements, source list fixed sources, and contract agreements.

7.

In order to enter a shipping notification for a specific purchase order, what must first be done? Answer: B Existing info records CAN have confirmation control codes, and these will default into the purchase order for you, but the bottom line is, you must have one in the PO whether it appeared there as a default value or you put it in manually.

8.

Once you have received a shipping notification and the information is in the purchase order, you can change the date or quantity right in the PO. Answer: False All changes to shipping notifications must be done in the Inbound Delivery function.

9.

If you use shipping notifications on a PO, during goods receipts you can receive either by PO number or by Inbound Delivery number Answer: True Either way is OK. The only thing you must remember is to indicate the correct document type in goods receipts.

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Test Your Knowledge

LO020

10. Identify where you must set up an ERS vendor. Answer: On the purchasing data screen of the vendor master, there is a check box for ERS. (AutoEvalGRSettmtDel) 11. What other field must be checked for ERS to work properly? Answer: The GR-based IV box. 12. If a vendor is set up for ERS, everything you buy from that vendor must be subject to ERS processing. Answer: False You can set up non-ERS materials in an info record with the ERS vendor, and check the box for No ERS. You can also manually uncheck the ERS indicator on the purchase order.

570


November 2001

Unit 8 465

Reporting in Materials Management

Summary information on the differences between the document detail lists and the summarized analyses are the most important concepts to emphasize. If you wish, there is an optional demo you can do in standard analysis using EWS. It is showy, and customers love it, but you may not have time. Plus it’s one of those things that should be set up ahead of time so you can just run it. To set up the demo ahead of time, here is what you need to do: Choose Logistics → Logistics Controlling → Purchasing Information System → Early Warning System → Exception → Create. Name the exception Demo, info structure S012. Click on the Characteristics button. Choose Characteristics Purchasing Org. , Vendor, and Month. Click on the Requirements button. Currency will be UNI, and number of periods will be 1, including the current month. The key figure will be Order Value, and the requirements will be Threshold val. anal.with an order value > 50,000 UNI (this will need to be checked the night before this lesson to see if any of the vendors actually achieved this amount, or conversely if all the vendors went over this amount. Adjust the figure if necessary so that only one or a few vendors will show an exception of going over a certain amount). Click on the Follow-up Processing button. Make one change to Color in list. Change it from 1 to 3 (red). Save for later use in the Optional Demo.

Unit Overview The two basic types of reporting are emphasized in this unit. They are the detailed list displays reported at the document level, and the summarized data that comes from the Logistics Information System (LIS).

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Unit 8: Reporting in Materials Management

LO020

The interactive nature of the selection criteria in R/3 reporting gives the end user many choices for creating the actual report that is run.

Unit Objectives After completing this unit, you will be able to: • • •

Create basic list displays for purchasing and stock movements Define the basics of the Logistics Information System Execute basic standard analysis reports using the purchasing information system

Unit Contents Lesson: Transaction-Based Reporting .......................................573 Demonstration: List Displays and Variants..............................576 Exercise 25: Transaction-based Reporting .............................577 Lesson: Reporting with Logistics Information System .....................582 Demonstration: Demonstration of Standard Analysis .................590 Demonstration: Optional Demonstration using EWS ..................590 Procedure: Choosing Key Figures within a Standard Analysis.......592 Exercise 26: Reporting with Logistics Information System ...........595

572


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LO020

Lesson: 466

Lesson: Transaction-Based Reporting

Transaction-Based Reporting Lesson Duration: 45 Minutes

Lesson Overview There will be an explanation of the differences between standard reporting and standard analysis. The basics of the Logistics Information System will be discussed.


Create basic list displays for purchasing and stock movements

This unit focuses on Reporting and Analysis in the Logistics Information System (LIS). Various list displays have been demonstrated throughout the course, some of which participants carried out by themselves. It is important here that the instructor explain the distinctions between standard list display reporting and standard analysis. Participants can acquire detailed information on LIS by taking course LO930.

Business Example The buyer needs to analyze activity that he has generated during a specific time period. Information is needed regarding purchase order activity and stock movements.

Standard Reporting In Purchasing, you enter a variety of documents. The R/3 System updates these documents and stores them in database tables. In the R/3 System, you can use Standard Reporting to analyze the information contained in the documents.

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LO020

As the employee responsible in Purchasing, you want to obtain an overview of your vendors and purchasing organizations. For example, you want to know: • • • • •

Which purchase orders were effected at a particular vendor for a particular period The number of purchase orders for which you have already received goods Whether a vendor complies with his or her delivery dates Whether a goods receipt and invoice receipt are correct The average value of each purchase order for a purchasing group

Figure 189: Standard Reporting

You can also carry out analyses for master data, as well as for documents. For example, you can output a list of all purchasing info records for a material or vendor, or you can obtain an overview of the material master records in your enterprise, based on particular criteria. The analyses in the R/3 System provide you with a quick and convenient overview, enabling you to act accordingly. Standard Reporting You can only carry out detailed reports of document data and master data while these records are stored in the system.

574


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LO020


If the documents have been deleted, you cannot obtain any information on them via List Displays or Standard Reporting.

Figure 190: Scope and List of Selection Parameters

Scope of list parameters determine which data is displayed for a document. You can decide whether you want a list in short form or whether it should contain more information (for example, lines for open purchase order quantity and value or the validity period of outline agreements). You can configure scope-of-list parameters in Customizing for Purchasing. The selection parameter determines which purchasing documents the report evaluates. In this example, the system will only evaluate purchasing documents for which you have still to receive an invoice. In Customizing, you can define your own selection parameters. If, at regular intervals, you carry out a particular list display using the same selections, it is worthwhile creating a variant. This reduces data entry time and prevents errors during entry. You can store your own variants or use existing ones. You can define any number of variants for a report. Scope of List and Selection Parameters Limits the documents to be analyzed. Selection Parameters and Scope of List can be configured in the IMG.

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LO020

IMG → Materials Management → Purchasing → Reporting → Maintain Purchasing Lists.

Demonstration: List Displays and Variants Purpose Display the purchasing documents for vendors T-K12A01 — T-K12D20 and demonstrate the selection parameters, scope of list, and variants.

System Data System: Client: User ID: Password: Set up instructions: 1. Choose Logistics → Materials Management → Purchasing → Purchase Order → List Displays → By Vendor. 2.

Vendors: T-K12A01 — T-K12D20.

3.

Scope of list: ALLES.

4.

Save the default settings as a variant.

5.

Vary the selection parameters and scope of list to show varying lists, for example, compare ALLES to Scope of List KURZ.

Allow 15 minutes for the exercise.

576


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469


Exercise 25: Transaction-based Reporting Exercise Duration: Minutes

Exercise Objectives After completing this exercise, you will be able to: • Create basic list displays for purchasing and stock

Business Example The buyer needs to analyze activity that was generated during a specific time period. Information is needed regarding purchase order activity and stock movements.






Task 1: Open goods receipts 1.

Display a list of all the purchase orders for purchasing organization 1000 and plant 1000 for which goods receipts are still open. Limit the search period to the last 24 months. Hint: To do this, choose the Document date field, and enter From: Current date minus 24 months, To: Current date. Optional: Define for yourself a variant for the purchase order document overview in accordance with these specifications.


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577


LO020

Task 2: Goods receipts that have been posted 1.

578

You want a list of all material documents for materials T-RM1## to T-RM4## that were placed into storage in plant 1000 using movement type 101 (goods receipt into unrestricted-use stock).


November 2001

LO020


Solution 25: Transaction-based Reporting Task 1: Open goods receipts 1.

Display a list of all the purchase orders for purchasing organization 1000 and plant 1000 for which goods receipts are still open. Limit the search period to the last 24 months. Hint: To do this, choose the Document date field, and enter From: Current date minus 24 months, To: Current date. Optional: Define for yourself a variant for the purchase order document overview in accordance with these specifications. a) b)

Follow the menu path: Logistics → Materials Management → Purchasing → purchase Order → List displays → By Vendor. Enter the following data in the fields: Field

Data

Vendor

(no entry)

Purchasing Organization

1000

Scope of List

BEST

Selection Parameter

WE101

Purchasing Group

(no entry)

Plant

1000

Document Date

Period within the last 24 months


November 2001


579


LO020

Task 2: Goods receipts that have been posted 1.

You want a list of all material documents for materials T-RM1## to T-RM4## that were placed into storage in plant 1000 using movement type 101 (goods receipt into unrestricted-use stock). a)

b)

580

Follow the menu path: Logistics → Materials Management → Inventory Management → Environment → List Displays → Material Documents. Enter the data from the table: Field

Data

Material

T-RM1## to T-RM4##

Plant

1000

Movement Type

101


November 2001

LO020


Lesson Summary You should now be able to: • Create basic list displays for purchasing and stock movements

Related Information For additional documentation, go to the SAP Library: For Purchasing Reporting —SAP R/3 → appropriate release → appropriate language → Logistics → Materials Management (MM)→ Purchasing (MM-PUR)→ Reporting in Purchasing For Materials Reporting — SAP R/3 → appropriate release → appropriate language → Logistics → Materials Management (MM)→Inventory Management (MM-IM) → Inventory Management and Physical Inventory (MM-IM) → Reporting in Inventory Management

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Lesson: 473

LO020

Reporting with Logistics Information System Lesson Duration: 60 Minutes

Lesson Overview We are going to execute basic standard analysis reports using the purchasing info system.


Define the basics of the Logistics Information System Execute basic standard analysis reports using the purchasing information system

Explain that this reporting is summarized data suitable for analysis. LIS reports do not typically list the document level of detail, but rather an aggregation of data by a specific period unit, such as week or month. Contrary to the transaction-based reports of the last lesson, you can still see LIS summary information even if the original documents have been deleted from the system.

Business Example The director of purchasing needs to analyze the top vendors by certain criteria.

Logistics Information System SAP Logistics offers a range of application-related information systems. All have a standard interface and similar basic functionality. All Logistics information systems have the same type of data retention. A range of special tools and ways of working emphasize the typical character of a data warehouse in the LIS.

582


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LO020

Lesson: Reporting with Logistics Information System

In Logistics, you can distinguish between the following information systems: • • • • • • • •

SIS: Sales Information System PURCHIS: Purchasing Information System INVCO: Inventory Controlling WMIS: Warehouse Management Information System PPIS: Shop Floor Information System QMIS: Quality Management Information System PMIS: Plant Maintenance Information System RIS: Retail Information System

Figure 191: Logistics Information System (LIS)

SAP Logistics Information System Explain what options the LIS offers and what information systems the R/3 System supports within Logistics.

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LO020

Figure 192: The Logistics Data Warehouse in the SAP System

The information systems in the LIS are continuously supplied with data from the transaction systems (Sales and Distribution, Purchasing, Production, Plant Maintenance, and so on). This level is also known as OLTP (Online Transaction Processing). The data can come from documents in the SAP R/2 or SAP R/3 System, or from non-SAP systems. Important information is stored in the Logistics Data Warehouse’s own database, which is maintained in parallel to the operational systems. As data is updated periodically, the data volume is reduced quantitatively and the information is reduced qualitatively to the sections relevant to statistics. Convenient analysis and reporting tools are available at OLAP level (Online Analytic Processing) for analyzing data. The Logistics Data Warehouse in the R/3 System The information systems in LIS are continually supplied with data from the operative applications (Sales, Purchasing, Production, Plant Maintenance, etc.). This level is also described as OLTP (Online Transaction Processing). Above the OLPT level is the Logistics Data Warehouse. When a business transaction is carried out in the operative application, important information is updated to the LIS statistical data basis. The Data Warehouse is supplied with the operative data from the OLTP level. This data flows into the information structures and forms the data basis of LIS. User-defined information structures enable you to add individual enhancements to the LIS information systems.

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Analysis and reporting tools for evaluating data are available at OLAP level (Online Analytic Processing), for example, Standard Analysis, Flexible Analysis.

Figure 193: Logistics Data Warehouse

The physical tables in the SAP Information Warehouse are information structures, or info structures for short. These have a typical structure. The objects to be analyzed in the real business world go into info structures as evaluation groups in the form of characteristics. Statistical information on characteristics, such as vendor, customer, or material is aggregated. Organizational elements, such as purchasing group, material group, valuation area, plant, or storage location are also used as characteristics in info structures. Time base is another option for aggregation. Data is not only aggregated per characteristic, but also by period. With regard to periodicity, you can aggregate data on a daily, weekly, monthly, or fiscal period basis. The system updates Logistics key figures for each characteristic combination and periodicity. This encompasses quantitative factors informing you of measurable subject matters. Key figures can be cumulated per evaluation group, for example, order quantity, or production order quantity. They can also be a single counter, for example, number of deliveries.

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LO020

The standard R/3 System contains various info structures for different application areas. You can use convenient tools to group characteristics and key figures into individual info structures to meet your requirements and use separate update programs to fill them with data. Logistics Data Warehouse Explain the terms information structure, characteristics, key figure, and period unit. Information Structures are database tables in which data coming from the OLTP systems are collected and compressed. They form the basis for analyses and evaluations. An information structure consists of : •

•

•

A period unit: this gives the structure a time reference. Example: Are the data to be updated daily, weekly monthly, or some fiscal posting period? Characteristic: object to be analyzed, such as an organizational level or specific master data. Examples: Purchasing Organization, Plant, Vendor, Material Key figures: information which is cumulated with reference to the characteristics. Key figures are mostly calculated values used for performance measurement. Examples: Order Value, Order Quantity, Invoiced Sales

Figure 194: From Document to Analysis

586


November 2001

LO020


When you post a document, as shown here using a purchase order, the system updates the key figures of the info structures for the relevant characteristic combinations. If there is no data record for the characteristic combination in the document, the system creates a new data record and enters the characteristics and key figures (example: vendor 1000, material M-01, month 05/98, purchase order value 11,000). If the characteristic combination already exists in the info structure, the system increases or decreases the key figures in the data line by the relevant values Example: vendor 1000, material M-02, month 05/98, purchase order value (old) 20,000 + purchase order value (document) 10,000 = purchase order value (new) 30,000. In the various analyses, lists can be created for all possible characteristic combinations on the basis of data in the info structures. From Document to Analysis Comment on the example from the update of the info structure to the analysis.

Figure 195: Reporting in the LIS

The standard analyses in LIS offer numerous ways of analyzing data. Standard analyses offer a multitude of functions that enable a detailed and specific analysis of data.

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LO020

In each standard analysis, you can use various selection options to determine the scope of data to be analyzed. You can preset the selection of key figures you want to analyze or it can be carried out interactively during the analysis. You can use the Early Warning System (EWS) to look for any unusual situations and react to and correct these in much earlier. Using flexible analyses, you can individually compile and compress key figures. You can also structure the layout of your report to meet your requirements. For reports, you can also define key figures composed of computing formulas from existing key figures. This means that you can multiply key figures or calculate the quotient of two key figures, for example. The data contained in the list can be converted into graphic format. The Logistics Data Warehouse is open and therefore allows you to carry out analyses using external programs, such as Microsoft Excel or native SQL. Reporting in the LIS Explain the information structures used for analysis in the LIS. Describe briefly how the EWS and flexible analyses work, though standard analyses are the main focus here. The Early Warning System (EWS) allows you to make decision-oriented selections and to check weak areas in Logistics, by enabling you to search for exceptional situations. This means that you can detect and rectify potential problems at an early stage. Flexible analyses allow you to tailor the way data is combined and consolidated to suit individual needs. Report Writer functionality enables you to create reports for a variety of applications. The Report Writer can also be used in extended general ledger and cost center accounting as a tool for creating reports. More information on LIS is covered in the course, LO930.

588


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LO020


Figure 196: Reporting in Standard Analyses

Standard analyses provide a wide range of functions for creating presentations and analyses for the data basis in the LIS. The data basis for a standard analysis is established when you determine an object to analyze (for example, purchasing group, vendor, material group) and make selections. This data is then organized and can be displayed in an initial list and a variety of drill-down lists. Each analysis can be archived. You can use the standard transactions in the application to display the complete master record or document information from the various drill-down levels of the list. A wide range of functions can be used to individually examine the key figures and characteristic values on which the analysis is based from a business perspective. All the functions for statistical analyses are graphically supported. Reporting in Standard Analysis Explain the various options on the slide without going into great detail. The demo will show some of the functionality.

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LO020

Demonstration: Demonstration of Standard Analysis Purpose In the Purchasing Information System, carry out a material analysis in plant 1000, purchasing organization 1000 in order to demonstrate some of the features of standard analysis.

System Data System: Client: User ID: Password: Set up instructions: 1. Choose Logistics → Logistics Controlling → Purchasing Information System → Standard Analyses → Material. 2.

Input selection criteria: Purch. Organization 1000, Material (blank), Plant 1000.

3.

Execute and visually compare the key figures, Order Value, Order Quantity, and GR Quantity at the Material level.

4.

Do a drill down, showing Vendor level, and then month. Then go back to the top.

5.

Change the characteristic display, first to key and description, then to key only.

6.

Do an ABC Analysis of the materials based on Order Value.

7.

Add and rearrange some new key figures.

8.

Show that the result can be exported or sent by mail.

Demonstration: Optional Demonstration using EWS Purpose This will give the students a glimpse of what can be done in Standard Analysis when applying an exception. Caution: You need to have created the exception before class in order to do this, as it is not a part of the standard class setup. See the instructor’s notes at the beginning of the unit, Reporting and Analysis in MM.

590


November 2001

LO020


System Data System: Client: User ID: Password: Set up instructions: 1. Choose Logistics → Logistics Controlling → Purchasing Information System → Standard Analysis → Vendor.

November 2001

2.

Input selection criteria: Purch. Organization 1000, Period to analyze current month only, Exception DEMO. All other selection fields are blank.

3.

Execute and point out how certain vendor(s) have a red line through their data. It is because they went over the threshold on order value in one month.

4.

Click on Extras, Display Exception, where you can see the criteria for the exception.


591


479

LO020

Choosing Key Figures within a Standard Analysis 1.

Bring up the standard analysis list and determine if the key figures shown are the ones you wish to analyze.

2.

To change the displayed key figures, choose Edit, Choose key figures:

Figure 197:

3.

Note the two columns of key figures in the dialog box. Those on the left represent the key figures that display in the standard analysis. Those on the right represent all the available key figures remaining in the info structure that you can add to the display column.


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LO020


Figure 198: Choose Key Figures

4.

To remove currently displayed key figures, highlight them and click the right-pointing arrow. To add key figures from the pool, highlight the ones you want and click the left-pointing arrow.

5.

If you want to move all key figures from one column, use the double arrows. Caution: Using new key figures on line in a standard analysis does not make them your permanent key figures. To set permanent key figures for yourself, create user-defined settings on the selection screen.

Allow 45 minutes for the exercise.

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593


594


LO020

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481


Exercise 26: Reporting with Logistics Information System Exercise Duration: Minutes

Exercise Objectives After completing this exercise, you will be able to: • Define the basics of Logistics Information System • Execute basic standard analyses reports using the purchasing information system and the inventory controlling system

Business Example The director of purchasing needs to analyze the top purchasing groups by certain criteria, and the materials manager needs to analyze aspects of the storage location stocks.






Task 1: Analyze purchasing values for purchasing groups 1.

You want to use the Purchasing Information System to determine a standard analysis for the scope of procurement for purchasing groups T01 to T18 for the purchasing organization 1000. Limit the analysis period from last month to the current month.

Task 2: Change characteristic display 1.

You want to display both the name of the purchasing group and the key for the characteristic. Choose the relevant characteristic display. Continued on next page

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595


LO020

Task 3: Add key figures 1.

You need information about the number of purchase order items and the number of deliveries. Add these two key figures to the standard analysis. Make a note of the total purchase order value and the total number of purchase order items for your purchasing group T##. Question

Answer

What is the total order value? What is the number of POs? What amount has already been settled?

Task 4: Display vendors for a purchasing group 1.

With which vendors have you effected purchase orders for purchasing group T##? Make a note of the number of vendors and the total order value for those vendors. Question

Data

Number of Vendors Order Value for these vendors

Task 5: Determine the top 5 purchasing groups 1.

Which purchasing groups had the five highest order values during the analysis period? Write down the total order value of the top purchasing group. Question

Answer

Top 5 purchasing groups Order value of the top purch. group


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Task 6: Perform an ABC analysis 1.

Determine the most important vendor in terms of order value for purchasing organization 1000 and the purchasing groups T01 to T18. To do this, carry out an ABC analysis for the key figure order value. Choose the percentage total of the order value. Segment A is 70%, segment B is 20%, and segment C is 10%. Look at the complete list of the ABC analysis of the order value. Which vendor has the highest order value? Hint: Before you perform the ABC analysis, make sure you start with the initial list (the purchasing groups). From the initial list, you must then switch the drill-down to the vendor in order to see all the vendors in the analysis. View → Switch drill-down → √ Vendor. Field

Data

Vendor

Task 7: Display the selection log 1.

To interpret the result of your analysis correctly, it is important that you know the selection criteria used in the analysis. You should therefore look at the selection log for purchasing group analysis. What is the key and description of the info structure for this analysis? Field

Data

Info Structure Key Description

Task 8: Analysis of storage locations 1.

You want to use Inventory Controlling to analyze your storage location stocks and possibly transfer materials that are stored in the wrong place. Check which stocks are located in storage location 0001 of plant 1000. Continued on next page

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Analysis period: 12 months ago through the current month. Drill down by material group and display as a graphic the receipt quantities per material group. Choose the material group with the greatest receipt quantity and drill down by month. Display the materials for the month that has the greatest receipt quantity. Create a top-ten list in terms of the consumption quantities for these materials.

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Solution 26: Reporting with Logistics Information System Task 1: Analyze purchasing values for purchasing groups 1.

You want to use the Purchasing Information System to determine a standard analysis for the scope of procurement for purchasing groups T01 to T18 for the purchasing organization 1000. Limit the analysis period from last month to the current month. a)

b)

Follow the menu path: Logistics → Materials Management → Purchasing → Purchase Order → Reporting → Purchasing Information System → Standard Analyses → Purchasing Group. Alternatively: Logistics → Logistics Controlling → Purchasing Information System → Standard Analyses → Purchasing Group. Enter the following data: Field

Data

Purch. Organization

1000

Purchasing Group

T01 to T18

Analysis Period

(previous and current month)

Task 2: Change characteristic display 1.

You want to display both the name of the purchasing group and the key for the characteristic. Choose the relevant characteristic display. a)

Choose Settings → Char. Display → Key and Description. Hint: If the column width is not sufficient to display the characteristics, you can increase the width by double-clicking the relevant column and entering a higher value for the width.


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Task 3: Add key figures 1.

You need information about the number of purchase order items and the number of deliveries. Add these two key figures to the standard analysis. Make a note of the total purchase order value and the total number of purchase order items for your purchasing group T##. Question

Answer

What is the total order value? What is the number of POs? What amount has already been settled? a)

To answer these questions, choose Edit → Choose Key Figures.

Task 4: Display vendors for a purchasing group 1.

With which vendors have you effected purchase orders for purchasing group T##? Make a note of the number of vendors and the total order value for those vendors. Question

Data

Number of Vendors Order Value for these vendors a) b)

Select your purchasing group and expand it by vendor. To answer these questions, choose View → Drill-down By Vendor.

Task 5: Determine the top 5 purchasing groups 1.

Which purchasing groups had the five highest order values during the analysis period? Write down the total order value of the top purchasing group.


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Question

Answer

Top 5 purchasing groups Order value of the top purch. group a)

To answer these questions, navigate to the original list for all purchasing groups via View → Basic List. Select the column that shows the order value and choose the Top n... button. Restrict the number to 5 purchasing groups.

Task 6: Perform an ABC analysis 1.

Determine the most important vendor in terms of order value for purchasing organization 1000 and the purchasing groups T01 to T18. To do this, carry out an ABC analysis for the key figure order value. Choose the percentage total of the order value. Segment A is 70%, segment B is 20%, and segment C is 10%. Look at the complete list of the ABC analysis of the order value. Which vendor has the highest order value? Hint: Before you perform the ABC analysis, make sure you start with the initial list (the purchasing groups). From the initial list, you must then switch the drill-down to the vendor in order to see all the vendors in the analysis. View → Switch drill-down → √ Vendor. Field

Data

Vendor a) b) c)

To answer these questions, go to the basic list again, and then switch the drill-down to display by vendor. Select the Order Value column. Choose Edit → ABC Analysis, using Total order value strategy %. Accept the proposed segment sizes. In the graphic displayed, you can look at the segment overview or the individual segments in the list display.


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Task 7: Display the selection log 1.

To interpret the result of your analysis correctly, it is important that you know the selection criteria used in the analysis. You should therefore look at the selection log for purchasing group analysis. What is the key and description of the info structure for this analysis? Field

Data

Info Structure Key Description a)

To answer these questions, choose Extras → Selection Log. Field

Data

Info Structure Key

S011

Description

Purchasing Groups

Task 8: Analysis of storage locations 1.

You want to use Inventory Controlling to analyze your storage location stocks and possibly transfer materials that are stored in the wrong place. Check which stocks are located in storage location 0001 of plant 1000. Analysis period: 12 months ago through the current month. Drill down by material group and display as a graphic the receipt quantities per material group. Choose the material group with the greatest receipt quantity and drill down by month. Display the materials for the month that has the greatest receipt quantity.


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Create a top-ten list in terms of the consumption quantities for these materials. a)

Follow the menu path: Logistics → Materials Management → Inventory Management → Environment → Inventory Controlling → Standard Analyses → Storage Location. Alternatively: Logistics → Logistics Controlling → Inventory Controlling → Standard Analyses → Storage Location.

b)

c) d) e)

f) g)

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Enter the following data: Field Name

Data

Plant

1000

Storage Location

0001

Analysis Period

(the past 12 months including the current month)

Switch the drill-down selection by material group by choosing Switch Drill-down icon or View → Switch Drill-down. To go to the graphic display, choose the Graphics icon or Goto → Graphics. Select the group with the highest receipt quantity and expand it by month by choosing the Drill-down by icon or View → Drill-down by. Choose the month that has the greatest receipt quantity and expand it by material. Select the column that shows the Total Usage quantities and choose the Top n... button. In the number field, enter the value 10.


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Lesson Summary You should now be able to: • Define the basics of the Logistics Information System • Execute basic standard analysis reports using the purchasing information system


The following SAP Library address will give you more information on standard analysis in R/3. Follow the suggested menu path. SAP R/3 → appropriate release → appropriate language → Logistics → Logistics– General (LO)→ Logistics Information System (LO-LIS) → Logistics Information System (LO-LIS) → Standard Analysis → Basics

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Unit Summary

Unit Summary You should now be able to: • Create basic list displays for purchasing and stock movements • Define the basics of the Logistics Information System • Execute basic standard analysis reports using the purchasing information system

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Unit Summary

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LO020


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Test Your Knowledge

491


What is a variant?

2.

You can customize the Selection Parameters in the Purchasing List Displays. Determine whether this statement is true or false.

□ □ 3.

True False

Which of the following statements is true about the R/3 List Display? Choose the correct answer(s).

4.

□ □

A B

□

C

□

D

Information can be displayed only one way. Once documents are deleted, you can still see them on a List Display. You can choose by category where you want columns to total. It is interactive.

Which reporting tool should be used in the R/3 System to obtain an open purchase order report? Choose the correct answer(s).

□ □ □ □ 5.

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A B C D

The open purchase order report Material documents list Standard analysis by vendor Purchase order list display

What are the three main elements of an info structure?


607

Test Your Knowledge

6.

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The data displayed in standard analysis can be displayed in various graphics. Determine whether this statement is true or false.

□ □

608

True False


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Test Your Knowledge

493

Answers 1.

What is a variant? Answer: A variant is a saved list of inputs you can populate automatically into the fields of a selection screen.

2.

You can customize the Selection Parameters in the Purchasing List Displays. Answer: True The R/3 System comes with a number of Selection Parameters already defined. You can customize this list in the IMG.

3.

Which of the following statements is true about the R/3 List Display? Answer: D List displays are interactive in that you can choose the data to be displayed in your list. Once the list is displayed, you can double click on the document number in the list and go to the original document.

4.

Which reporting tool should be used in the R/3 System to obtain an open purchase order report? Answer: D There is no such thing as "The Open Purchase Order Report" in the R/3 System. The purchase order list display is used via its selection criteria to create a list of open purchase orders per the user’s requirements.

5.

What are the three main elements of an info structure? Answer: The three main elements are characteristics, key figures, and period unit.

6.

The data displayed in standard analysis can be displayed in various graphics. Answer: True This is one of the management features of standard analysis.

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November 2001

Unit 9 mySAP.com Implementation

495

By the time many students come to this class, their companies have already decided upon a methodology for implementing SAP® software. Therefore, this unit should stay at a very high level and be kept brief. The only tool that they will all have to deal with ultimately is the IMG.

Unit Overview The elements of the mySAP.com implementation methodology is summarized in this unit. The implementation roadmaps and major implementation tools are discussed.

Unit Objectives After completing this unit, you will be able to: • • • • • •

List the four key components of the ValueSAP framework that supports the customer’s SAP product life cycle Describe how business maps form a blueprint for an organization’s processes Describe how Accelerated SAP (ASAP) can be used to manage an SAP project implementation Create a plant and assign it to a company in the Implementation Guide Differentiate between ASAP and Global ASAP methodologies Explain how the Continuous Business Improvement tool assists in the execution of the actual operation of the implementation

Unit Contents Lesson: mySAP.com Implementation ........................................612 Demonstration: Demonstrating the Implementation Guide (IMG)....619 Exercise 27: Creating a New Plant.......................................625 Exercise 28: Assigning a Plant to a Company Code ..................629

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Unit 9: mySAP.com Implementation

Lesson: 496

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mySAP.com Implementation Lesson Duration: 20 Minutes

Lesson Overview This lesson introduces the ValueSAP framework, which outlines how SAP focuses its support to its customers as they proceed through their SAP product life cycle: Discovery and Evaluation, Implementation and Continuous Improvement. Emphasis is on understanding that the goal of SAP’s lifecycle approach is a cyclical review and adaptation of company strategy, business processes, and supporting technology that reflects an ever changing business environment.

Lesson Objectives After completing this lesson, you will be able to: • • • • • •

612

List the four key components of the ValueSAP framework that supports the customer’s SAP product life cycle Describe how business maps form a blueprint for an organization’s processes Describe how Accelerated SAP (ASAP) can be used to manage an SAP project implementation Create a plant and assign it to a company in the Implementation Guide Differentiate between ASAP and Global ASAP methodologies Explain how the Continuous Business Improvement tool assists in the execution of the actual operation of the implementation


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Lesson: mySAP.com Implementation

In this lesson, you will introduce the participants to the ValueSAP framework. Explain that this outlines how SAP focuses its support to its customers as they proceed through their SAP product life cycle. Point out that the ValueSAP approach is broken into the following three phases that will be discussed in more detail in the lesson: •

•

•

Discovery and Evaluation: This phase helps the customer determine their solution strategy and develop a solution map that represents their company’s business process requirements. Implementation: SAP provides implementation methodologies (ASAP and Global ASAP) and tools (Roadmap, Question & Answer Database, accelerators) to support the customer in completing their implementation efficiently and reducing the time to benefit. Continuous Improvement: Emphasize that this phase is ongoing after implementation; companies should continue to monitor performance against benchmarked key performance indicators and implement process and system changes as recommended.

Business Example As the newly assigned SAP Project Manager for your company, you have been directed to complete the implementation as efficiently and cost effectively as possible, while ensuring the incorporation of best business practices into your organization’s processes.

ValueSAP While working with SAP, you discover the best mySAP.com solution for your business, a solution that is specific to your industry, tuned to best-in-class business practices and one that delivers real value to your business now and in the future. Once you have discovered what you need, SAP can help you evaluate and map out the mix of mySAP.com software, technology, and services required for your business enterprise solution. The goal is to achieve a clear return on investment, lowest cost of ownership, and real value from your mySAP.com solution throughout its life.

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Figure 199: ValueSAP Framework

The ValueSAP framework contains a consistent set of tools, methodologies, content, and programs that all work together in each phase of the lifecycle to provide SAP’s current and future customers with the keys to unlock the potential of mySAP.com. Used to its full potential, the ValueSAP framework helps organizations use SAP enterprise applications to identify and adopt agile business practices and achieve the highest business value from their SAP solution. The ValueSAP framework supports the execution of the lifecycle concept. Used correctly, the ValueSAP framework helps organizations establish an environment for performance measurement and continuous improvement of business processes.

Discovery and Evaluation This is the first phase of the ValueSAP lifecycle approach. Briefly explain that the purpose of this phase is for SAP to work with the customer to discover the best mySAP.com® solution for their business and map out the mix of mySAP.com software, technology, and services required for their business enterprise solution. This solution will be specific to their industry, tuned to best-in-class business practices, and deliver real value to their business now and in the future. Emphasize that the goal is to achieve a clear return on investment, lowest cost of ownership, and real value from their mySAP.com solution throughout its life.

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SAP Solution Maps map out the business processes within an organization. They present a complete business solution of an industry in a process-oriented way. • • •

Coverage information shows, for example, whether SAP or partners support the processes. Link-to-product lists give further information about particular products. Link to relevant Collaborative Business Scenarios (CBS) is available.

Figure 200: Discovery and Evaluation

SAP Solution Maps Edition 2001 are now available.

Implementation The second phase of the ValueSAP framework contains SAP’s tried and tested methodologies, tools, and road maps that can help the customer quickly experience the benefits of a successful implementation. Explain that the customer should follow the Global ASAP methodology if they are doing a multi-site or multinational implementation. The slide provides an overview of the different components of the ASAP software with their function.

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SAP’s tried and tested methodologies, tools, and road maps can help you experience the benefits of a successful implementation quickly. You start by performing the following actions: •

•

•

•

Define an implementation plan using the industry-specific metrics and Key Performance Indicators (KPIs) to scope your implementation project and evaluate progress as the project proceeds. Employ total cost ownership modeling covering the evaluation of mySAP.com solutions through acquisition, operation, ongoing management and expansion. Roll key performance indicator data into the implementation project, linking KPIs to business processes to prioritize the implementation. KPIs also form the basis for solution review and ongoing evaluation of the implementation project. Tried and tested implementation methodologies and tools such as AcceleratedSAP help deliver results on time and to budget.

Figure 201: Implementation with ASAP

AcceleratedSAP AcceleratedSAP (ASAP) is SAP’s rapid implementation solution specifically designed to streamline and standardize the implementation process to achieve mission critical business functionality as soon as possible (asap). AcceleratedSAP optimizes time, quality, and efficient use of resources for your implementation. While allowing you to exploit the value of SAP as quickly as possible, ASAP also lays the foundation for continuous improvement. That’s why ASAP supports not only the entire life cycle but also the initial implementation. Even if you have not

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used ASAP for the implementation, ASAP can still help you implement additional business processes in SAP or optimize existing ones. Also, the special Roadmap of ASAP for Upgrades tells you exactly what to do and what to test, ensuring that you update your SAP system in the most efficient way. ASAP was released over three years ago, and has since been used in more than 1000 projects worldwide. More than 18,000 SAP or partner consultants have been trained in ASAP. Many of SAP’s implementation partners have either adopted ASAP as their standard methodology (AcceleratedSAP Partners) or have incorporated it into their own methodology (Powered by AcceleratedSAP Partners). Due to strong positive feedback from experienced consultants and the great successes, AcceleratedSAP has been established as SAP standard implementation approach. AcceleratedSAP has reached such a high level of maturity and functional richness that it should be considered by every SAP customer. Whether you follow the entire Roadmap or just use certain accelerators, you will save considerable time and improve quality and repeatability of your implementation activities. Most important, ASAP supports the entire team, both internal team members (customer) and external (consultants), as well as all aspects of a project implementation: project management, business process definition, organization change management, training and the technical areas.

Figure 202: ASAP Tools

Elements of AcceleratedSAP

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AcceleratedSAP is SAP’s implementation solution for efficient SAP projects. ASAP combines a proven methodology with powerful tools, services and quality reviews to optimize SAP implementations. The Roadmap is a methodology and project plan with detailed descriptions about what, why, and how certain activities are performed, and who performs them. The Roadmap ensures that nothing is left out and that project management plans well in advance for the execution of activities such as end-user training. On the technical side, the Roadmap addresses areas like interfaces and data conversion and of course the usage of Ready-To-Run R/3, SAPs preconfigured basis system to jump start your technical implementation. Wherever possible, ASAP provides examples, checklists, or templates. ASAP calls these documents Accelerators. They are used in any type of implementation, even when you do not use all ASAP elements. The Roadmap consists of five phases: • • • • •

Phase 1: Phase 2: Phase 3: Phase 4: Phase 5:

Project Preparation Business Blueprint Realization Final Preparation GoLive and Continuous Change

Tools include ASAP-specific tools to support project management, questionnaires to help define business process requirements, checklists and many other tools to simplify your implementation (Report Navigator, technical guidebooks and so forth). Many accelerator files are provided in Microsoft Project or other Microsoft Office products. ASAP provides the files, all you need is the software to use them. As of Release 4.6, you can also access all configuration tools such as the Implementation Guide directly from the ASAP tool. Moreover, you can visualize the processes of the Reference Model using specific viewers that are free-of-charge within ASAP software.

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Figure 203: Customizing Implementation Guide (IMG)

Service and Training includes all consulting, education, and support activities. EarlyWatch, remote upgrade, Quality reviews or GoingLive checks are just part of the service palette that ensures total quality and allows you to actively tune your SAP system. These services help to standardize certain consulting tasks to perform them as quickly as possible. Knowledge Management is also supported by ASAP. For instance, you can attach your own documents at every level within the Roadmap and the Question & Answer Database. Moreover, ASAP provides you with many predefined documentation templates (for example Business Process Procedures) and supports the role orientation throughout the life cycle including role-oriented training and user authorizations.

Demonstration: Demonstrating the Implementation Guide (IMG) Purpose Introduce participants to one of the implementation tools, the Implementation Guide (IMG). Demonstrate how to create a plan and then assign the plan to a company code in the IMG. The participants will be asked to complete the same task in the exercises at the end of this lesson.

System Data System:

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Client: 400–404 User ID: Training Password: Monthly Password Set up instructions: None Required 1. Follow the menu path Tools → AcceleratedSAP → Customizing → Edit Project. 2.

The required steps are detailed in the exercises/solutions entitled, Creating a New Plant and Assigning a Plant to a Company Code.

3.

Explain this is an example of simple configuration in the R/3 System.

Global ASAP Global AcceleratedSAP delivers a process-oriented, clear, and concise program plan, project plan, and methodology — the Global AcceleratedSAP Roadmap — to provide step-by-step direction throughout your global, multi-site SAP implementation. The Global ASAP Roadmap consists of four phases: • • • •

Phase 1: Phase 2: Phase 3: Phase 4:

Global Program Setup Global Business Blueprint Global Realization Global Maintenance & Support

Within those four Phases, Phase 1: Global Program Setup is the most important and crucial phase. Here you lay the foundation for your overall enterprise-wide implementation program.

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Figure 204: Implementation Strategy

Tools and Accelerators leverage the powerful configuration capabilities of the SAP system, providing a seemingly limitless toolbox with tools for modeling, implementation, continuous improvement, and documentation. Proven models and industry templates efficiently speed implementation along with a specially designed Global Question and Answer Database and Template Process Master List. SAP Project Team Training: A three-level approach integrates training into the implementation process and lets you build an efficient, comprehensive training program for faster learning and better retention throughout your organization. SAP Support and Services network can answer the questions that arise and support major project activities, both during your implementation and once your system has gone live. It is your in-flight assistance program, so you always have the security of an expert in the cockpit. Continuous Improvement with Global AcceleratedSAP Implementing and using your SAP system on a global basis gives you ongoing knowledge and expertise. This experience is a valuable asset that can be used to enhance your global business processes and implementation strategy. As you see what works best, you can update the Global Template System that is configured through Global AcceleratedSAP. You can also reevaluate your business processes at any time to continually optimize your enterprise and existing SAP systems by adding new SAP solutions for your changing business needs. Better yet, the Global AcceleratedSAP methodology can be used on an ongoing basis to keep your system

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and business process optimized, always flying at peak performance. Companies continually reap extraordinary benefits using this continuous improvement approach.

Continuous Business Improvement Emphasize that this phase is ongoing after implementation; companies should continue to monitor performance against benchmarked KPIs and implement process and system changes as recommended. The ValueSAP approach is a framework for performance tuning and business improvement to help customers optimize their investment in mySAP.com solutions. ValueSAP Continuous Business Improvement Services help evaluate a company’s current position, revisit their original business objectives, and define and exploit new business opportunities. To help you operate all the stages of implementation through to the ongoing performance of your enterprise solution, mySAP.com and SAP partners represent a powerful network of resources. Performance measurement and review, end-user training, and knowledge management together with a broad range of customer service and support all help to deliver a stable, high-value mySAP.com solution.

Figure 205: Continuous Business Improvement

How does continuous business improvement work?

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Continuous business improvement works by: •

• •

•

Monitoring progress before, during, and after GoLive, using the solution review techniques built into mySAP.com Implementation Roadmaps. Maintaining productivity with mySAP.com services such as Project Review, EarlyWatch, Remote Consulting. Building and maintaining skilled usage of your system with mySAP.com’s role-based training and knowledge management curriculum. The focus for this is provided by the key performance indicators (KPI) used to build the original business case. Using SAP Business Information Warehouse and SAP Strategic Enterprise Management to build and support knowledge management at every level in your organization. You can ensure ongoing monitoring of the performance of your mySAP.com solution against benchmarks and KPIs using techniques such as the balanced scorecard.

How can I continuously improve my business? Because business never stands still, ValueSAP can help you continue to adopt the best business practices and improve your enterprise system. By using industry benchmarks, a framework for performance tuning and business improvement helps you optimize your investment in ValueSAP Continuous Business Improvement Services help you evaluate your current position, revisit your original business objectives, and define and exploit new business opportunities. What is the continuous business improvement process? A four-phased continuous business improvement assessment: 1. 2. 3.

4.

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Identifies key areas for development and improvement Uses industry specific benchmarks and key performance indicators, to identify and define best practice in key business processes Determines recommendations based on a thorough analysis of organization, people, business processes, information technology, and business strategy Uses training, education, system design improvements, system optimization, and recommendations for new functionality to drive business agility, competitiveness, and profitability


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507


Exercise 27: Creating a New Plant Exercise Duration: Minutes

Exercise Objectives After completing this exercise, you will be able to: • Create a new plant in the SAP Implementation Guide

Business Example Since your North American division is growing, your company is planning on building a new plant. To account for all interaction from Financials, Sales, and Production, you need to create this new plant in your system.






Task: You will create a new plant using the SAP Implementation guide and create the associated address for the new plant. 1.

Create the Enterprise element Plant in the SAP Implementation Guide using the information provided. Field

Data

Plant

99##

Name

Group ## Plant

Street

East Main Street

House Number

90210

Postal Code

12306


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626

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Field

Data

City

Albany

Country

US

Region

NY


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Solution 27: Creating a New Plant Task: You will create a new plant using the SAP Implementation guide and create the associated address for the new plant. 1.

Create the Enterprise element Plant in the SAP Implementation Guide using the information provided. Field

Data

Plant

99##

Name

Group ## Plant

Street

East Main Street

House Number

90210

Postal Code

12306


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Field

Data

City

Albany

Country

US

Region

NY

a) b)

Choose Tools → AcceleratedSAP → Customizing Choose Edit Project

c) d) e) f)

Choose SAP Reference IMG Choose Enterprise Structure → Definition → Logistics General → define, copy, delete, check plant Choose Define plant Choose Execute

g)

Choose

h) i) j)

Choose Enter Plant: Choose

Choose New Entries 99##

Hint: A window appears where you maintain the address for the plant. k) l) m) n) o) p) q) r) s) t)

628

Enter Name: Group ## Enter Street/House number: East Main Street/90210 Enter Postal Code: 12306 Enter City: Albany Enter Country: US Enter Region: NY Choose Copy Enter Choose Back Back Choose Cancel Choose


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511


Exercise 28: Assigning a Plant to a Company Code Exercise Duration: Minutes

Exercise Objectives After completing this exercise, you will be able to: • You will assign a plant to a company code in customizing.

Business Example Once a plant has been created in the system, you can not use the plant in your day-to-day transactions until you associate this new plant to the corresponding company that is responsible for the plant from an accounting point of view.






Task: You need to assign the new plant to a corresponding company code in customizing. 1.

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Assign the plant you created in Exercise 1 (99##) to the following Company Code: 3000


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Solution 28: Assigning a Plant to a Company Code Task: You need to assign the new plant to a corresponding company code in customizing. 1.

630

Assign the plant you created in Exercise 1 (99##) to the following Company Code: 3000 a) b)

Choose Tools → AcceleratedSAP → Customizing Choose Edit Project

c) d) e) f)

Choose SAP Reference IMG Chose Enterprise Structure → Assignment → Logistics General → Assign plant to company code Execute Choose Choose company code: 3000 IDES US INC

g) h) i) j) k)

Choose Assign Choose Plant: 99## from the list of plants Choose Adopt Choose Choose Exit


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Lesson Summary You should now be able to: • List the four key components of the ValueSAP framework that supports the customer’s SAP product life cycle • Describe how business maps form a blueprint for an organization’s processes • Describe how Accelerated SAP (ASAP) can be used to manage an SAP project implementation • Create a plant and assign it to a company in the Implementation Guide • Differentiate between ASAP and Global ASAP methodologies • Explain how the Continuous Business Improvement tool assists in the execution of the actual operation of the implementation


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631

Unit Summary

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Unit Summary You should now be able to: • List the four key components of the ValueSAP framework that supports the customer’s SAP product life cycle • Describe how business maps form a blueprint for an organization’s processes • Describe how Accelerated SAP (ASAP) can be used to manage an SAP project implementation • Create a plant and assign it to a company in the Implementation Guide • Differentiate between ASAP and Global ASAP methodologies • Explain how the Continuous Business Improvement tool assists in the execution of the actual operation of the implementation

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Test Your Knowledge

515


Which element is not part of ValueSAP? Choose the correct answer(s).

□ □ □ □ 2.

A B C D

Operations and Continuous Business Improvement Implementation ReEngineering Discovery and Evaluation

SAP Solution Maps are used to map out the business processes within an organization. Determine whether this statement is true or false.

□ □ 3.

True False

AcceleratedSAP is a methodology to implement an SAP product. Determine whether this statement is true or false.

□ □ 4.

True False

Which of the following are tools of the ASAP methodology? Choose the correct answer(s).

□ □ □ □ □ □

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A B C D E F

Customer Message Wizard Implementation Assistant Question and Answer Database Online Service System B&C A&D


633

Test Your Knowledge

516

LO020

Answers 1.

Which element is not part of ValueSAP? Answer: C Reengineering might be something you do during the implementation of an SAP product but it is not a ValueSAP element.

2.

SAP Solution Maps are used to map out the business processes within an organization. Answer: True Solution Maps allow a company to customize how business processes will be implemented within a company. The Solution Map Composer allows a company to create its own solution map for its business.

3.

AcceleratedSAP is a methodology to implement an SAP product. Answer: True ASAP and Global ASAP are used as a road map guiding a business through an implementation.

4.

Which of the following are tools of the ASAP methodology? Answer: E Although the Online Service System and the Customer Message Wizard are tools to help support a customer, they are not part of the ASAP tool set.

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Unit 10 Supplemental Materials

517

This unit provides participants with an optional comprehensive exercise. There is nothing for the instructor to present in class.

Unit Overview This unit contains a comprehensive exercise that will allow you to review the basic procurement processes.

Unit Objectives After completing this unit, you will be able to: • •

Carry out the basic procurement process Determine your comprehension of the material presented in class by performing procurement transactions in the system

Unit Contents Lesson: Business Process Review ...........................................636 Exercise 29: Business Processes........................................637

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Unit 10: Supplemental Materials

Lesson: 518

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Business Process Review Lesson Duration: Minutes

Lesson Overview This lesson contains a comprehensive exercise that can be used to test your knowledge of the concepts presented in the class.


Carry out the basic procurement process Determine your comprehension of the material presented in class by performing procurement transactions in the system

This lesson contains a review exercise for the participants to complete, time permitting, in class. It can be used to test their understanding of the concepts taught in class.

Business Example After attending training, you’d like to test your knowledge of the procurement process in the SAP system.

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Lesson: Business Process Review

Exercise 29: Business Processes Exercise Duration: Minutes

Exercise Objectives After completing this exercise, you will be able to: • Review the business processes in the procurement cycle

Business Example You have various roles in the following business process scenario. Each task is labeled with the role you are to perform. Note: You may not have time to work through these exercises during the training course. You can use these documents to work through the exercises yourself after the course. The instructor will answer any questions. No solutions are provided for this exercise In this exercise — unlike the previous ones — you are provided only with the most important information you need to do the exercises. It is therefore essential that you read the scenarios thoroughly and use them in the correct business processes. You will find that it is up to you to provide much of the information and data. The knowledge you have acquired in the course is the only prerequisite for this exercise. Any extra requirements are marked. A functional business process is provided so that you can check whether you have completed the exercise successfully. If you have any problems during the exercises, we recommend that you look in the appropriate unit first and carry out the exercise step by step. Please make a note of the data and documents you create on this exercise sheet.




CATT: [If a CATT is required, enter the CATT name. Delete this tag if not used.]

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Set up instructions: 1.


Task 1: Basic Data You will need the following master data in this exercise. 1.

You are provided with information on all the required data and settings. Unless you are told otherwise, work with: Company code:

1000 (IDES)

Purchasing organization:

1000 (IDES)

Plant:

1000 (Hamburg)

Purchasing group:

LO020–## (T##)

MRP controller:

0##

Use only vendors T-K12A##, T-K12B##, and T-K12C## for your processes. This makes it easier for you to find any errors and will not affect the other groups.

Task 2: Engineering/Design Department You have just finished manufacturing a new product. To manufacture this product, you need a new component that has never been used before in your company. This component is to be managed under the number Teil-## in your company. Teil-## goes into full production and, in the future, will be available as a spare part for internal customers. 1.

In the Engineering/Design view, enter the data required. Which material type do you choose? ___________________________

2.

The description of the component is: ____________________

3.

Which view(s) do you create? ___________________________

4.

Which data do you enter? ______________________________________________________ Continued on next page

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______________________________________________________

Task 3: Purchasing The Engineering/Design department has informed you that a new material Teil-## has been created in the system. You are asked to find possible vendors for the component in the next few days. 1.

In your company, the buyer usually maintains the data relevant to accounting. As you do not yet know what the material costs, do not enter the accounting data until you know the prices of possible suppliers. Teil-## is relatively low in value and is not subject to short-term price fluctuations. You want to valuate it at a fixed price.

2.

Which view(s) do you create? ____________________________ Make a note of the most important data: ______________________________________________________ ______________________________________________________ ______________________________________________________

Task 4: Warehouse Make sure that Teil-## can be placed into storage. There are no particular requirements. 1.

Which view(s) do you create? ____________________________ Make a note of the most important data: ______________________________________________________ ______________________________________________________

Task 5: Purchasing You check in the system if price data for Teil-## has already been entered in another department. 1.

How do you do this (transaction)? Is there price data? ______________________________________________________ ______________________________________________________


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You send RFQs to three vendors (T-K12A##, T-K12B##, and T-K12C##). The amount in the RFQ is 10,000 in accordance with your expected annual requirements. As QI wants to check the parts before the vendor is released, inform your potential vendors in your RFQ that you will order 100 parts on the condition that they are given the order. RFQ numbers / vendor: ______________________________________________________ ______________________________________________________ ______________________________________________________

3.

You have received the quotations. T-K12A## offers Teil-## for 12 UNI / pc for quantities above 100 pcs with delivery free of charge. The delivery time is 5 days. T-K12B## can deliver Teil-## for 10 UNI / pc, but requires a flat-rate low-quantity surcharge of 250 UNI for quantities below 200 pcs. There is also a flat-rate freight charge of 150 UNI per delivery. The delivery time is 1 week. T-K12C## charges 14 UNI / pc, with no freight charge for quantities over 100 pieces and a 2% freight surcharge for quantities under 100 pieces. The delivery time is 10 days.

4.

According to the information from Production, you will order the material about 20 times per year; that is, you expect deliveries of 500 pieces a time. Analyze the quotations and reject those you do not want to include. Most reasonable vendor:_____________ Effective price / pc ________.

5.

Create an info record based on the most reasonable quotation.

6.

Extend the material master record of Teil-## with the data that is required for the purchase order and account management. Which view(s) do you maintain? ____________________________ Make a note of the most important data: ______________________________________________________ ______________________________________________________

7.

Order 100 pieces of the material with reference to the most reasonable quotation.


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Also order an inspection gauge for your cost center 4100 from the same vendor (material without a master record). The vendor informed you by telephone that the price is 200 UNI. As the buyer, you want to be kept informed of the status of your purchase orders. Configure the system so that it sends you a message when goods are received for a purchase order. Issue the purchase order as a message. PO number:____________________________________________ 8.

Shortly after you have issued the purchase order, you notice that you require another piece of material M-01. You therefore change the purchase order and add the monitor as a third item. The price is 1000 UNI. You send the changed purchase order to the vendor.

9.

The vendor calls you because he or she does not know anything about item 3, M-01. You discover that you have ordered the item from the wrong vendor and cancel it. To let the vendor know, you send him or her a message to this effect.

Task 6: Warehouse The vendor sends you 50 pieces of the ordered material plus the inspection gauge. 1.

Teil-## is inspected first.

2.

The QM department makes a positive usage decision. You therefore transfer Teil-##.

3.

The prototype production department requires 25 pieces to prepare the material for repetitive manufacturing. You issue the required quantity to the appropriate cost center (4110). Hint: Goods issue, Movement type: Consumption for cost center from warehouse

Task 7: Engineering/Design, Manufacturing, Materials Planning and Purchasing It is decided that the material does not have any defects and should be procured regularly from this vendor. It is also decided that the procurement process with regard to materials planning, purchasing, and invoice verification should be as simple and cheap as possible. 1.

As the MRP controller responsible, you work out an appropriate planning strategy. Continued on next page

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After consulting the warehouse and production, you decide that it is not advisable to keep more than 800 pieces of the material Teil-## in stock (=maximum stock level). As soon as the stock drops below 300 pieces, the replenishment of the material is automatically initiated. In this case, the stock level should be completely replenished. To cover possible risks and fluctuations, you plan to hold a safety stock of 50 pieces. According to the Purchasing Department, the vendor requires a delivery time of 5 days. As you also want to take future requirements into account in materials planning, you decide on an approporiate MRP procedure (choose MRP type V1). 2.

Which views and indicators do you maintain? Make a note of the appropriate parameters. ______________________________________________________ ______________________________________________________ ______________________________________________________ ______________________________________________________ ______________________________________________________

Task 8: Invoice Verification The vendor charges you for the complete quantity of the sample purchase order (100 pc). 1.

You enter and post the invoice. Can the Financial Accounting Department pay the invoice? Give a reason for your answer. ______________________________________________________ ______________________________________________________


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Task 9: Purchasing As you do not want to process every purchase requisition for the vendor and Teil-## manually, you configure the system so that the purchase requisitions are automatically assigned with sources of supply. 1.

These purchase requisitions are to be converted to purchase orders automatically via a report. The invoice verification process should also be as simple as possible. You have therefore arranged with the vendor that you settle his or her payments directly after the goods receipt is posted. Therefore, the vendor does not issue an invoice.

2.

Maintain all the data that is required to do this. Hint: Material master, vendor master, info record, and source list. Which entries are essential? ______________________________________________________ ______________________________________________________ ______________________________________________________ ______________________________________________________ ______________________________________________________

Task 10: Start of Production As the person responsible in Production, you require 200 pieces of Teil-## in 2 weeks. 1.

You therefore create a reservation to ensure that this component is available for the required date. Hint: ... → Inventory Management → Reservation → Create Base date:

Current date +2 weeks

Movement type:

201

Cost center:

4100

Teil-##:

200 pieces

Accept any messages and save


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As the MRP controller, you are currently checking the stock/requirements list for Teil-##. Are there any requirements and, if so, are these covered? ______________________________________________________ You carry out a planning run for Teil-## and save it. What is the result? ______________________________________________________

3.

In Purchasing, you are processing all purchase requisitions which have already been assigned sources of supply. Assign a source of supply for Teil-## and display the purchase order that is created. PO number:_______________________________________

4.

A delivery from vendor T-K12B-## arrives in goods receipt. It is the remaining 50 pieces from the sample purchase order and the ordered quantity from the reservation.

5.

Using the ERS procedure, the accounts payable clerk settles all the vendor’s invoices for Teil-##. Invoiced amount: ____________________________

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Solution 29: Business Processes Task 1: Basic Data You will need the following master data in this exercise. 1.

You are provided with information on all the required data and settings. Unless you are told otherwise, work with: Company code:

1000 (IDES)

Purchasing organization:

1000 (IDES)

Plant:

1000 (Hamburg)

Purchasing group:

LO020–## (T##)

MRP controller:

0##

Use only vendors T-K12A##, T-K12B##, and T-K12C## for your processes. This makes it easier for you to find any errors and will not affect the other groups.

Task 2: Engineering/Design Department You have just finished manufacturing a new product. To manufacture this product, you need a new component that has never been used before in your company. This component is to be managed under the number Teil-## in your company. Teil-## goes into full production and, in the future, will be available as a spare part for internal customers. 1.

In the Engineering/Design view, enter the data required. Which material type do you choose? ___________________________

2.

The description of the component is: ____________________

3.

Which view(s) do you create? ___________________________

4.

Which data do you enter? ______________________________________________________ ______________________________________________________ Continued on next page

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Task 3: Purchasing The Engineering/Design department has informed you that a new material Teil-## has been created in the system. You are asked to find possible vendors for the component in the next few days. 1.

In your company, the buyer usually maintains the data relevant to accounting. As you do not yet know what the material costs, do not enter the accounting data until you know the prices of possible suppliers. Teil-## is relatively low in value and is not subject to short-term price fluctuations. You want to valuate it at a fixed price.

2.

Which view(s) do you create? ____________________________ Make a note of the most important data: ______________________________________________________ ______________________________________________________ ______________________________________________________

Task 4: Warehouse Make sure that Teil-## can be placed into storage. There are no particular requirements. 1.

Which view(s) do you create? ____________________________ Make a note of the most important data: ______________________________________________________ ______________________________________________________

Task 5: Purchasing You check in the system if price data for Teil-## has already been entered in another department. 1.

How do you do this (transaction)? Is there price data? ______________________________________________________ ______________________________________________________

2.

You send RFQs to three vendors (T-K12A##, T-K12B##, and T-K12C##). The amount in the RFQ is 10,000 in accordance with your expected annual requirements. Continued on next page

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As QI wants to check the parts before the vendor is released, inform your potential vendors in your RFQ that you will order 100 parts on the condition that they are given the order. RFQ numbers / vendor: ______________________________________________________ ______________________________________________________ ______________________________________________________ 3.

You have received the quotations. T-K12A## offers Teil-## for 12 UNI / pc for quantities above 100 pcs with delivery free of charge. The delivery time is 5 days. T-K12B## can deliver Teil-## for 10 UNI / pc, but requires a flat-rate low-quantity surcharge of 250 UNI for quantities below 200 pcs. There is also a flat-rate freight charge of 150 UNI per delivery. The delivery time is 1 week. T-K12C## charges 14 UNI / pc, with no freight charge for quantities over 100 pieces and a 2% freight surcharge for quantities under 100 pieces. The delivery time is 10 days.

4.

According to the information from Production, you will order the material about 20 times per year; that is, you expect deliveries of 500 pieces a time. Analyze the quotations and reject those you do not want to include. Most reasonable vendor:_____________ Effective price / pc ________.

5.

Create an info record based on the most reasonable quotation.

6.

Extend the material master record of Teil-## with the data that is required for the purchase order and account management. Which view(s) do you maintain? ____________________________ Make a note of the most important data: ______________________________________________________ ______________________________________________________

7.

Order 100 pieces of the material with reference to the most reasonable quotation. Also order an inspection gauge for your cost center 4100 from the same vendor (material without a master record). The vendor informed you by telephone that the price is 200 UNI.


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As the buyer, you want to be kept informed of the status of your purchase orders. Configure the system so that it sends you a message when goods are received for a purchase order. Issue the purchase order as a message. PO number:____________________________________________ 8.

Shortly after you have issued the purchase order, you notice that you require another piece of material M-01. You therefore change the purchase order and add the monitor as a third item. The price is 1000 UNI. You send the changed purchase order to the vendor.

9.

The vendor calls you because he or she does not know anything about item 3, M-01. You discover that you have ordered the item from the wrong vendor and cancel it. To let the vendor know, you send him or her a message to this effect.

Task 6: Warehouse The vendor sends you 50 pieces of the ordered material plus the inspection gauge. 1.

Teil-## is inspected first.

2.

The QM department makes a positive usage decision. You therefore transfer Teil-##.

3.

The prototype production department requires 25 pieces to prepare the material for repetitive manufacturing. You issue the required quantity to the appropriate cost center (4110). Hint: Goods issue, Movement type: Consumption for cost center from warehouse

Task 7: Engineering/Design, Manufacturing, Materials Planning and Purchasing It is decided that the material does not have any defects and should be procured regularly from this vendor. It is also decided that the procurement process with regard to materials planning, purchasing, and invoice verification should be as simple and cheap as possible. 1.

As the MRP controller responsible, you work out an appropriate planning strategy. After consulting the warehouse and production, you decide that it is not advisable to keep more than 800 pieces of the material Teil-## in stock (=maximum stock level). Continued on next page

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As soon as the stock drops below 300 pieces, the replenishment of the material is automatically initiated. In this case, the stock level should be completely replenished. To cover possible risks and fluctuations, you plan to hold a safety stock of 50 pieces. According to the Purchasing Department, the vendor requires a delivery time of 5 days. As you also want to take future requirements into account in materials planning, you decide on an approporiate MRP procedure (choose MRP type V1). 2.

Which views and indicators do you maintain? Make a note of the appropriate parameters. ______________________________________________________ ______________________________________________________ ______________________________________________________ ______________________________________________________ ______________________________________________________

Task 8: Invoice Verification The vendor charges you for the complete quantity of the sample purchase order (100 pc). 1.

You enter and post the invoice. Can the Financial Accounting Department pay the invoice? Give a reason for your answer. ______________________________________________________ ______________________________________________________

Task 9: Purchasing As you do not want to process every purchase requisition for the vendor and Teil-## manually, you configure the system so that the purchase requisitions are automatically assigned with sources of supply. 1.

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These purchase requisitions are to be converted to purchase orders automatically via a report. The invoice verification process should also be as simple as possible. You have therefore arranged with the vendor that you settle his or her payments directly after the goods receipt is posted. Therefore, the vendor does not issue an invoice. Continued on next page


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Maintain all the data that is required to do this. Hint: Material master, vendor master, info record, and source list. Which entries are essential? ______________________________________________________ ______________________________________________________ ______________________________________________________ ______________________________________________________ ______________________________________________________

Task 10: Start of Production As the person responsible in Production, you require 200 pieces of Teil-## in 2 weeks. 1.

You therefore create a reservation to ensure that this component is available for the required date. Hint: ... → Inventory Management → Reservation → Create Base date:

Current date +2 weeks

Movement type:

201

Cost center:

4100

Teil-##:

200 pieces

Accept any messages and save 2.

As the MRP controller, you are currently checking the stock/requirements list for Teil-##. Are there any requirements and, if so, are these covered? ______________________________________________________ You carry out a planning run for Teil-## and save it. What is the result? ______________________________________________________


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3.

In Purchasing, you are processing all purchase requisitions which have already been assigned sources of supply. Assign a source of supply for Teil-## and display the purchase order that is created. PO number:_______________________________________

4.

A delivery from vendor T-K12B-## arrives in goods receipt. It is the remaining 50 pieces from the sample purchase order and the ordered quantity from the reservation.

5.

Using the ERS procedure, the accounts payable clerk settles all the vendor’s invoices for Teil-##. Invoiced amount: ____________________________

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Lesson Summary You should now be able to: • Carry out the basic procurement process • Determine your comprehension of the material presented in class by performing procurement transactions in the system

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Unit Summary

Unit Summary You should now be able to: • Carry out the basic procurement process • Determine your comprehension of the material presented in class by performing procurement transactions in the system

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Course Summary

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Course Summary You should now be able to: • • • • • • • • • • •

Identify and use the log on, navigation, personalization, and help features of the SAP System Define the basic steps of the procurement process Create, display and maintain material and vendor masters, and list the required organizational levels Create, display and maintain purchase requisitions, requests for quotation, contracts, and purchase orders Process goods receipts and basic receipt-related stock transfers Explain the financial and valuation effect of basic procurement transactions Display stock balances Post vendor invoices Generate purchasing list displays and basic LIS standard analyses Explain the SAP methodology of support for the SAP product life cycle Identify where additional procurement information can be found in documentation and subsequent training

Related Information

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Appendix 1 Frequently-used Menu Paths

Activity

Menu Path

Master Data:

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Material master: Create material

Logistics → Materials Management → Material Master → Material → Create (Special)

Material master: Create material (alternative)

Logistics → Materials Management → Material Master → Material → Create (General) → Immediately

Material master: Display material

Logistics → Materials Management → Material Master → Material → Display → Display Current

Material master: Change material

Logistics → Materials Management → Material Master → Material → Change → Immediately

Material master: Extend material view

Logistics → Materials Management → Material Master → Other → Extend Material View(s)

Material master: Enter storage locations collectively:

Logistics → Materials Management → Material Master → Other → Enter Storage Locations

Material master: Materials list

Logistics → Materials Management → Material Master → Other → Materials List

Material master: Change documents

Logistics → Materials Management → Material Master → Material → Display Changes → Active Changes


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Activity

Menu Path

Info record: Create / Change / Display

Logistics → Materials Management → Purchasing → Master Data → Info Record → …

Vendor (all data) Create / Change / Display

Logistics → Materials Management → Purchasing → Master Data → Vendor → Central → …

Vendor (purchasing data) Create / Change / Display

Logistics → Materials Management → Purchasing → Master Data → Vendor → Purchasing → …

Conditions by vendor

Logistics → Materials Management → Purchasing → Master Data → Conditions → Discounts/Surcharges → By Vendor

Service master

Logistics → Materials Management → Service Master → Service → Service Master

Service conditions for service

Logistics → Materials Management → Service Master → Service → Service Conditions → For Service → Display

Service conditions for vendor without plant

Logistics → Materials Management → Service Master → Service → Service Conditions → For Vendor Without Plant → Display

Service conditions for vendor with plant

Logistics → Materials Management → Service Master → Service → Service Conditions → For Vendor with Plant → Display

Documents:

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Purchase requisition: Create / Change / Display

Logistics → Materials Management → Purchasing → Purchase Requisition →…

RFQ: Create

Logistics → Materials Management → Purchasing → RFQ/Quotation → Request for Quotation → Create

Quotation: Maintain

Logistics → Materials Management → Purchasing → RFQ/Quotation → Quotation → Maintain

Price comparison

Logistics → Materials Management → Purchasing → RFQ/Quotation → Quotation → Price Comparison


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Activity

Menu Path

RFQ / Rejection: Issue message

Logistics → Materials Management → Purchasing RFQ/Quotation → Request for Quotation → Messages → Print/Transmit

Purchase order: Create / Change / Display

Logistics → Materials Management → Purchasing → Purchase Order → Create → Vendor/Supplying Plant Known

Purchase requisition / Purchase order: Assign and process

Logistics → Materials Management → Purchasing → Purchase Requisition → Follow-On Functions → Assign and Process

Create purchase order automatically

Logistics → Materials Management → Purchasing → Purchase Requistion → Follow-On Functions → Create Purchase Order → Automatically via Purchase Requisitions

Purchase order: Issue message

Logistics → Materials Management → Purchasing → Purchase Order → Messages → Print/Transmit

Contract: Create / Change / Display Logistics → Materials Management → Purchasing → Outline Agreement → Contract → ...

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Shipping notification: Create / Change / Display

Logistics → Materials Management → Purchasing → Purchase Order → Inbound Delivery → ...

Enter goods receipt

Logistics → Materials Management → Inventory Management → Goods Movement → Goods Receipt → For Purchase Order

Enter transfer posting

Logistics → Materials Management → Inventory Management → Goods Movement → Transfer Posting

Enter service

Logistics → Materials Management → Service Entry Sheet → Maintain

Enter invoice

Logistics → Materials Management → Invoice Verification → Logistics Invoice Verification → Document Entry → Enter Invoice


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Activity

Menu Path

Evaluated receipt settlement (ERS)

Logistics → Materials Management → Invoice Verification → Logistics Invoice Verification → Further Processing → Execute ERS

Single planning run

Logistics → Materials Management → Materials Requirements Planning (MRP) → MRP → Planning → Single-Item, Single-Level

List Displays, Reporting and Information:

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List display: Purchase requisitions

Logistics → Materials Management → Purchasing → Purchase Requisition → List Displays

List display: Purchase orders

Logistics → Materials Management → Purchasing → Purchase Order → List Displays

List display: RFQ / Quotation

Logistics → Materials Management → Purchasing → RFQ/Quotation → Request for Quotation → List Displays

List display: Info records

Logistics → Materials Management → Purchasing → Master Data → Info Record → List Displays → …

List display: Goods receipts

Logistics → Materials Management → Inventory Management → Environment → List Displays → Material Documents

Stock overview

Logistics → Materials Management → Inventory Management → Environment → Stock → Stock Overview


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Activity

Menu Path

Stock/requirements list

Logistics → Materials Management → Inventory Management → Environment → Stock → Stock/Requirements List

Purchasing group analysis

Logistics → Materials Management → Purchasing → Purchase Order → Reporting → Purchasing Information System → Standard analyses → Purchasing group

Analysis of storage location

Logistics → Materials Management → Inventory Management → Environment → Inventory Controlling → Standard analyses → Storage location


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Glossary ABAP Advanced Business Application Programming(ABAP): SAPs fourth generation programming language, which is specifically designed for integrated standards software applications. ABAP also supports all of the steps involved in improving the client/server solution, from prototyping through implementation and testing, to final optimization. The latest extens of ABAP is ABAP Objects. AcceleratedSAP (ASAP) Standard methodology for efficiently implementing and continually optimizing your SAP software. ASAP supports the implementation of the R/3 System and of mySAP.com Components and can also be used for upgrade projects. It provides a wide range of tools that helps you in all stages of your implementation project - from project planning to the continual improvement of your SAP System. The two key tools in ASAP are:The Implementation Assistant, which contains the ASAP Roadmap, and provides a structured framework for your implementation, optimization or upgrade project. The Question & Answer database (Q&Adb), which allows you to set your project scope and generate your Business Blueprint using the SAP Reference Structure as a basis. Acceptance of Services Performed Process of checking and confirming that services performed by a vendor (subcontractor) against a purchase order and recorded in a service entry sheet have been carried out correctly and properly. The service entry sheet contains a set of service specifications. Outline levels are used to structure these specifications, and service lines contain the service descriptions, quantities, and values that are to be checked. The service entry sheet can be processed further in Invoice Verification after acceptance. The costs can be distributed among various Controlling objects via the account assignment. Account Assingnment Category Key indicating whether an item is to be assigned to an auxiliary account (such as a cost center). The account assignment category determines which account assignment data (e.g. cost center, account number, etc.) is required for the item.

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Accounting Data Type of Vendor Master Data that describes the number of the reconciliation account and the payment methods for automatic payment transactions. This is maintained at company code level. Accounting Document Accounting documents record changes in values in a company code arising from accounting transactions. They consist of one or more line items (postings) each of which represents an individual transaction posted to an account. When posting an accounting document, the system updates the transaction figures in the accounts the document is posted to. An accounting document is a representation within the R/3 System of the document (an invoice for example) that triggered the posting. ALE Application Link Enabling(ALE): Expands use of the R/3 System within a company and within a companys business partners. It provides SAPs software products with distribution models and technologies for linking business applications across technically independent systems by enabling, among other things, multiple database servers to share transaction update information. APO Advanced Planner and Optimizer(APO): APO is a software solution that enables dynamic supply chain management. This solution provides applications for detailed planning, optimization, and scheduling, thus allowing the accurate and global monitoring and control of the supply chain even beyond enterprise boundaries. APO comprises the following modules: "Supply Chain Cockpit," "Demand Planning," "Supply Network Planning and Deployment," "Production Planning and Detailed Scheduling," and "Global Available-to-Promise",see also: Availability to promise. If SAP customers use APO in conjunction with the Business Information Warehouse,BW, they can optimize performance and costs throughout the entire supply chain. Application Help Context-sensitive help available in the menu Help. This function allows users to display documentation about the current transaction, program, or screen. The documentation to be displayed must be predefined explicitly in the Knowledge Warehouse. If no specific documentation has been defined, the SAP Library is displayed. From there, users can navigate to the relevant documentation. Automatic Reorder Point Planning Special procedure in consumption-based planning. If available stock falls below the reorder point, then an entry is made in the MRP file indicating that the material is to be included in the next planning

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Glossary

run. Then during the next planning run a procurement proposal is created. The reorder point and the safety stock level are automatically determined by the forecast program. Basic Data Description and specification of activities and measurement units, default values for operations, assignments to cost centers or labor resources, standard values. Blanket Purchase Order A purchase order with a validity period and limits for the simplified procurement of materials or services. A longer-term blanket purchase order enables you to procure different materials or services from a vendor up to a specified maximum value. The nature of the materials or services in question is generally such that the cost and administrative effort involved in processing individual purchase orders is regarded as disproportionately high in relation to their value. A blanket purchase order contains only a short text and a validity period. It does not contain specific materials or services. Blanket purchase orders have the item category B and document type FO. The account assignment of the individual requirements need not be known at the time of ordering. It can be entered during the invoice verification process. If account assignment data was maintained in the purchase order, it can be changed at the time of invoice verification (for example, single account assignment can be changed to multiple account assignment). Neither a goods receipt nor the entry and acceptance of services performed is necessary with regard to blanket purchase orders. Instead, invoices can be posted directly with reference to the PO provided that the value limit is not exceeded. BOM Bills of Management(BOM): A component used to store material lists or product structures using material numbers and document numbers as a reference to the object that they describe. CBS Collaborative BusinessScenarios(CBS): Cross-company, Internet-based business processes used by employees to fulfill different tasks and responsibilities with a common business objective. These blueprints for e-business define and clarify the connections between manufacturers, suppliers, customers, and other business partners that are necessary for integrated electronic processing of business transactions. Companies use a variety of software applications to exchange transaction data over the Internet. Characteristic Object to be analyzed such as an organizational level or specific master data. Examples: Purchasing Organization, Plant, Vendor, Material, ect.

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Chart of Accounts(FI) A classification scheme consisting of a group of general ledger (G/L) accounts. A chart of accounts provides a framework for the recording of values, in order to ensure an orderly rendering of accounting data. The G/L accounts they contain are used by one or more company codes. For each G/L account, the chart of accounts contains the account number, the account name and other, technical information. A chart of accounts must be assigned to each company code. This chart of accounts is the operative chart of accounts and is used in both financial accounting and cost accounting. Other charts of accounts include: Country-specific charts of accounts These are structured in accordance with legal requirements of the country in question Group chart of accounts This is structured in accordance with requirements pertaining to Consolidation. Client In commercial, organizational and technical terms, a self-contained unit in an R/3 System with separate master records and its own set of tables. Collective Number Number used to group together all the individual RFQs issued to potential bidders, or the quotations received from bidders, in connection with a certain proposed procurement of goods or services. Company Code Legal, independent accounting unit; the central organizational element of Financial Accounting. Complete Purchase Requisition Purchase requisition covering several materials that are needed at the same time and which are therefore requested together. The document type determines that the requisition can only be released in its entirety (that is, complete). If the requisition is subject to a release strategy, releasing one item simultaneously causes all the other items of the requisition to be released. Conditions Terms of payment (such as surcharges or discounts) that are negotiated with a vendor. The conditions determine how the system calculates the net price or effective price. Consumable Material Material or service that is the subject of procurement and whose value is recorded via the cost element accounts or fixed asset accounts. There are consumable materials: without a material master record, with a material master record without inventory management, and with a material master record with inventory management on a quantity basis only.

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Continuous Business Improvement The ValueSAP Roadmap used in the third phase Operations and Continuous Improvement. Contract Form of longer-term purchase agreement against which materials or services are released (ordered, or called off) according to need over a certain timeframe. Controlling (CO): Instrument that supports management’s decision-making processes. The various phases of controlling, such as planning, monitoring, reporting, consulting, informing, should be implemented company-wide in an integrated software solution for the individual controlling functions, including financial, controlling, investment controlling, cost and profitability controlling for all business functions (procurement, production, sales, and so on). CRM Customer Relationship Management(CRM): Set of methodologies, software, and usually Internet capabilities that help an enterprise manage customer relationships in an organized way. It includes all business processes in sales, marketing, and service that touch the customer. For example, an enterprise might build a database about its customers that describes relationships in sufficient detail so that management, salespeople, people providing service, and even the customer can access information, match customer needs with product plans and offerings, remind customers of service requirements, know what other products a customer has purchased, and so on. In contrast to customer care, Customer Relationship Management tends to be used to deal more specifically with the integration of all business functions with each other. SAP also provides applications for Customer Relationship Management under the SAP CRM initiative. Cross-Company-Code Purchasing Organization Organization responsible for purchasing activities for a number of different company codes. cXML Commerce eXtensible Markup Language. Delivery Costs Costs that are to be borne by the orderer in addition to pure material costs. Also referred to as incidental procurement costs. A distinction is made between: freight charges, duty costs, and miscellaneous delivery costs (e.g. packing, insurance, and similar). Discovery & Evaluation First phase of ValueSAP, during which a strategy is drawn up for implementing your SAP software. SAP Solution Maps provide a framework for selecting a range of components and services that are tailored to meet your enterprise’s specific needs. You can measure the

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Return on Investment using the Key Performance Indicators (KPIs) and benchmarks for each process of the relevant SAP Solution Map. Calculating the Total Cost of Ownership also constitutes part of this phase. Distribution Channel Channel through which saleable materials or services reach customers. Typical distribution channels include wholesale, retail and direct sales. You can assign a distribution channel to one or more sales organizations. Division An organizational unit based on responsibility for sales or profits from saleable materials or services. EB Enterprise Buyer(EB). EB Desktop Version Provides users with a business-wide self-service Web solution for catalog buying of indirect goods and basic procurement activities. EB Professional Version A functional superset of the Desktop Edition; enables indirect procurement and direct procurement, automating and integrating the business processes required for buying raw material, parts, and supplies, including bill of materials, materials management, contract buying, configured goods buying, plant maintenance, warehousing, and integration with business intelligence. EDI Electronic Data Interchange(EDI): The electronic communication of business transactions, such as orders, confirmations and invoices, between organizations. Third parties provide EDI services that enable organizations with different equipment to connect. Traditional EDI data formats include X12, EDIFACT and TRADACOMS. EnjoySAP With the EnjoySAP initiative, SAP has developed a holistic approach to designing user interfaces that are visual, interactive and personal. The three key facets that simplify software are: the visual aestethics of software that make its use obvious at first glance, the understanding of how people interact with the software for high-speed usability, and the personalization of software designed for each individuals needs. These new features and functions of SAP R/3 4.6 are accessible through Web browsers or traditional client/server connections to ensure maximum openness and flexibility.

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ERP Enterprise Resource Planning(ERP): An Enterprise Resource Planning system is a packaged business software system that allows a company to automate and integrate the majority of its business processes, to share common data and practices across the entire enterprise, and to produce and access information in a real-time environment. Evaluated Receipt Settlement (ERS) (ERS): A Procedure for automatic settlement of goods receipts. Evaluated receipt settlement involves an agreement between the vendor and the buying company that the former does not issue invoices for purchasing transactions. Instead, the invoice document is posted automatically in the buying company’s system based on data from the PO and goods receipts. Using this procedure precludes invoice variances (for example, the charging of too high a price by the vendor). EWS Early Warning System(EWS): Component which allow user to make decision-oriented selections and to check weak areas in Logistics, by enabling them to search for exceptional situations. This means that the user can detect and rectify potential problems at an early stage. F1 Field level help-Provides information about the field. F4 Field level help-Provides information about the field values or an option to search for the information in the case of an extensive list. Finished Products Finished Products (FERT): Finished products are produced in-house. They cannot be ordered by Purchasing, therefore a material master record of this material type does not contain purchasing data. Flexible Analyses Component that allows user to tailor the way data is combined and consolidated to suit individual needs. General Data Type of Vendor Master Data that includes the vendor’s address and bank details, for example. This data is valid for the whole client. General Ledger A ledger designed to present the values used in creating financial statements. It records values at company code level. Go Live & Support Phase 5 of the ASAP Roadmap. The purpose of this phase is to move from a pre-production environment to live production operation, to set up a Help Desk to provide long-term support for end users and

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optimize overall system performance and the technical environment. You also use this phase to plan follow-up training, upgrades and ways to continually optimize the R/3 System. Goods Receipt (GR) (GR): Term from the field of inventory management denoting a physical inward movement of goods or materials. The SAP System differentiates between the following kinds of goods receipt: goods receipt with reference to a purchase order, goods receipt with reference to a production order, and other goods receipts (without reference). GUI Graphical User Interface(GUI): refers to the display of software on a screen using graphics, symbols and icons rather than text alone. An example of a GUI is Microsofts "windows" format. Within the EnjoySAP initiative SAP has developed a holistic approach to designing user interfaces that are visual, interactive and personal. This initiative includes a user friendly GUI. Web browsers have now emerged as the standard GUI throughout the Internet. Browsers are a key enabler of mySAP.com, and SAP will make all SAP business functionality available in browser applications. Header Information about a folder, distribution list, or document. The header contains information which is used to identify and describe a folder, distribution list, or document. IDES International Demonstration and Educations System; IDES contains several sample companies that typify relevant business processes. It has simple user guidance and varied master and transaction data, so extensive scenarios can be enacted. IDES is the basis system for internal and external training. IMG Tool for configuring the SAP System to meet customer requirements. The Implementation Guide (IMG) explains all the steps in the implementation process, tells you the SAP standard (factory) Customizing settings and describes the system configuration activities. The hierarchical structure of the IMG is based on the application component hierarchy and lists all the documentation which is relevant for implementing the SAP System. The main component of the Implementation Guide is the IMG activities which go to Customizing, where the relevant system settings are made. You can also document projects in the IMG. The SAP Reference IMG contains all IMG activities, sorted by application component and into General settings and Enterprise structure. The Enterprise IMG is a subset of the SAP Reference IMG containing only the IMG activities required for the application component to be implemented. (Note:

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The Enterprise IMG no longer exists after R/3 Release 4.6A.) The Project IMG is a subset of the Enterprise IMG (until Release 4.5B) or the SAP Reference IMG (from Release 4.6A) containing the IMG activities required for the application component to be implemented in a specified Customizing project. Project views can be based on a Project IMG and specified attributes, for use in Release Customizing (Delta Customizing or Upgrade Customizing). Implementation Implementation (ValueSAP) The second of three phases of ValueSAP, containing the AcceleratedSAP implementation methodology, Roadmap and tools. Implementation Strategy Plan for installing and configuring the R/3 System. Based on a long-term outlook, it covers all of the planned measures involved in an SAP implementation. Preparing the strategy is an essential part of project preparation, and has a considerable influence on the sequence of the project, paticularly in the case of a global implementation. There are different implementation strategies - Big bang (in which all applications go live at the same time), a phased approach (in which a few applications or business processes are implemented in each step), or implementation by plant, department, or other organizational units. Inbound Delivery Process of receiving an inbound delivery of goods at a receiving area. This process also includes the subsequent putaway and the actual increase in stock quantity. The inbound delivery process begins with staging the goods at the vendor’s shipping point and ends when the goods receipt posting is made by the goods recipient (ship-to party). In the SAP System, this operation is represented by the inbound delivery document, which is generated with reference to a: Purchase order, Shipping notification, or Customer return. Industry Solutions Many customers want SAP software to support business processes specific to the industry sector in which they are active. For this reason, SAP has founded some 13 Industry Business Units,IBUs, since 1997. These IBUs are responsible for the 17 industry solutions to date. These industry solutions are based on the R/3 System, and are constantly being enhanced in close cooperation with customers and partners. One outcome of this cooperation has been the drawing up of so-called "solution maps" for the business processes in specific sectors. These solution maps facilitate the systematic implementation of complex IT solutions derived from standard and industry-specific components. In its strategic targeting of industry sectors, SAP has managed to meet market requirements regarding the individuality and integration capabilities of software solutions.

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Information Structure Structure in which data is collected in the Logistics Information System. An information structure defines a group of fields. It is used for the collection and reduction of data from an operative application (for example, sales or purchasing). Data relating to events in the operative applications (such as purchase orders or sales orders) is updated periodically in the information structures. Information structures form the basis for analyses and evaluations. An information structure consists of: a period unit: this gives the structure a time reference, characteristics: information (for example, purchasing organization or sales organization) with reference to which other information is cumulated, and key figures: information (for example, invoiced sales or invoice value) which is cumulated with reference to c characteristics. Information Systems (LIS/HIS/FIS) Detail transaction information is stored on the SAP system and aggregated for the Information Systems for statistical purposes. Data from other systems can also be input for analytical purposes. Point out to the participants that the application reporting trees provide an extensive listing of predefined reports. (Standard Analysis) Also note that users can define their own information structures in the SAP System to meet differing business requirements. (Flexible Analysis). Integration Allows data to flow freely from one corporate area to another without having to pass through time-consuming and trouble-prone interfaces. Integration also permits companies to maintain the same data from various sites. INVCO Inventory Controlling Inventory Management As used in the SAP System, this terms stands for that part of Logistics which covers the following tasks: the management (recording and tracking) of stocks of materials on both a quantity and a value basis, planning, entering and documenting all stock movements (goods receipts, goods issues, physical stock transfers, transfer postings), carrying out the physical inventory (stocktaking). Invoice Verification (IV): Term for the entry and checking of incoming (vendor) invoices (also known as invoice matching, invoice validation, and invoice clearance). In invoice verification, vendor invoices are compared with the purchase order and the goods receipt, and are checked in three ways: content, price, and quantity.

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November 2001

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Glossary

Item Category Identifier indicating the characteristics of an item. The item category determines whether the following are necessary or allowed with regard to an item: material number, additional account assignment, inventory management in the R/3 System, goods receipt, and invoice receipt. IV Invoice Verification(IV) KANBAN Procedure for controlling production and material flow based on a chain of operations in production and procurement. The replenishment or the production of a material is not triggered until a certain production level actually requires the material. The signal for replenishment is issued by a card (kanban) that is sent by a consumer to the supplier. Key Figures Quantifiable measure of the technical, commercial and personal performance in a company. Key figures can be used to assess performance, profitability, productivity, and liquidity both within an organization and between one organization and another, for examples, sales per employee and rate of inventory turnover. Knowledge Management Area in which an enterprise consciously and comprehensively gathers, organizes, shares, and analyzes its knowledge to further its aims. Some aspects of knowledge management such as data mining and pushing information to users are relatively new. With its SAP Business Information Warehouse and SAP Knowledge Warehouse (former Info DB), SAP is delivering solutions for this increasingly important business process. KPI Key Performance Indicator(KPI): A measurement, or metric, used for evaluating supply chain performance. Key Performance Indicators express abstract supply chain objectives in financial or physical units for comparative purposes. Data pertaining to the various planning processes such as demand planning or production planning is collected, measured and transformed into physical or financial information that can be used to compare results and thus measure performance. For example, one of the supply chain flexibility metrics is Supplier On-time Delivery Performance which indicates the percentage of orders that are fulfilled on or before the original requested date. APO KPIs are launched from the Supply Chain Cockpit and access data from the Business Information Warehouse (BW).

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Lifecycle Management Forecasting techniques that take into account the different stages in a product’s life: introduction, growth, maturity, saturation and decline. In APO Demand Planning, the planner can model the beginning and end of a product’s lifecycle based on phase-in and/or phase-out schedules. These schedules are stored in phase-in/phase-out profiles. LIS The Logistics Information System(LIS) is made up of the following information systems: Sales Information System, Purchasing Information System, Inventory Controlling, Shop Floor Information System, Plant Maintenance Information System, Quality Management Information System. The information systems that belong to LIS have a modular structure, yet have a variety of techniques in common which allow you to analyze data. This type of structure also allows the individual information systems to retain their special features. The information systems in LIS can be used to plan, control, and monitor business events at different stages in the decision-making process. They are fleixble tools for collecting, aggregating and analyzing data from the operative applications. The level of detail in which information is displayed is freely definable. Informative key figures enable you to continually control target criteria and to react in time to exceptional situations. Data can be analyszed using either standard analyses or flexible analyses. Flexible planning, the Early Warning System, and the Logistics Information Library are also integrated in the information systems. Tools are available in Customizing which enable you to create a self-defined information system and tailor it to specific requirements. LIV Logistics Invoice Verification(LIV). MarketSet A comprehensive Internet marketplace solution ensuring that the e-marketplace is accessible via virtually any buying, selling, and enterprise application on-ramp, ready for marketplace-to-marketplace transactions and designed for easy integration of services provided by third parties. Master Data Data that remains the same over a long period of time. Master data contains information that is needed often and in the same form. Examples: The master data of a cost center contains the name of the cost center, the person responsible for the cost center, the corresponding hierarchy area, and so on. The master data of a vendor contains the name, address, and bank information for the vendor. The master data of a user in the SAP System contains the user’s authorizations in the system, the name of their default printer, their start transaction, and other information.

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Master Record Data record containing master data, that is, data which remains unchanged over a reasonably long period of time. A vendor master record contains the vendor’s name, address and bank details, for example. A user master record in the SAP System includes the person’s system authorizations, standard printer, start transactions, and so on. Material Document A document that constitutes proof of one or more material movements and is a source of information for applications further on in the chain. A material document contains one or more items and can be printed out in the form of a slip to accompany physical goods movements (GR/GI slip). Material Requirements Planning (MRP): Generic term for procedures in materials planning that take into account and plan every future requirement during the creation of procurement proposals (independent requirements, dependent requirements, and so on). Material Stock Part of current assets. Material stock is managed at plant or storage location level . Material Valuation Determination of the value of a stock of material. Valuation-relevant data on a material includes: valuation price and assignment to a valuation class. Selection of the valuation method: valuation at standard price and valuation at moving average price Materials Management (MM) : Customer Service uses the material master that describes both physical products such as spare parts used in repairs and the services that are sold to the customer. Goods movements are used to document physical materials such as spare parts used in the repairs. Purchase Requisitions may be created automatically from a service order and purchase orders used for materials purchased from others. Materials management also gives us functionality to purchase subcontracted labor through the use of the service master. Materials Planning Generic term for the activities involved in creating a master production schedule or an external procurement plan for all the materials in a plant or company. Materials planning is also referred to as material requirements planning. Mean/Minimum Value Quotation The price comparison list can also display a "fictitious" quotation reflecting the average or minimum value of all quotations.

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MES Manufacturing Execution System(MES). MM Materials Management(MM). MRO Maintenance, Repair, and Operation. MRP Material Requirements Planning(MRP): Generic term for procedures in requirements planning which take into account and plan every future requirement during the creation of order proposals (independent requirements, dependent requirements, and so on). my SAP Supply Chain Management my SAP SCM: An integration of extended supply chains to enable intelligent e-business processes. mySAP.com New SAP solution to integrate all relevant business processes on the Internet. mySAP.com integrates business processes in SAP and non-SAP systems seamlessly, and provides a complete business environment for electronic commerce. mySAP.com comprises four areas: mySAP.com Marketplace, mySAP.com Workplace, mySAP.com Business Scenarios, and Application Hosting. mySAP.com Workplace Role-based, personalized Web browser portal to the SAP System. The screen that a user sees is specially tailored to the role this user assumes in the company or at his or her workplace. The user only has to log on once, whereupon he or she can access all of the functions required for his or her work. The mySAP.com Workplace contains links,URLs, to traditional and Web-based R/3 transactions, standard R/3 System, New Dimensions, industry solutions, Internet Application Components, Self-Service Scenarios, reports, non-SAP systems, the mySAP.com Marketplace, as well as user-defined Internet and intranet sites. Nonvaluated Materials Nonvaluated materials (UNBW): Nonvaluated materials are managed on a quantity basis, but not by value. OLAP OnLine Analytical Processing(OLAP): Decision support software that allows the user to quickly analyze information that has been summarized into multidimensional views and hierarchies. Operating Supplies 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.

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Operations & Continuous Improvement The third life-cycle phase covered by ValueSAP. Operations & Continuous Improvement comprises a four-phase approach designed to ensure that a customer’s systems and processes are always in tune with their business requirements. Data extracted from production systems is analyzed and compared against key performance indicators and best business practices. Conclusions are translated into recommendations that assist customers in continuously improving their business operations. Organizational Elements A company’s enterprise structure is mapped to the SAP applications using organizational elements. Organizational Level Hierarchical level at which certain data in a material master record is created. Examples of organizational levels are client, plant, and storage location. Output Represents a message in the SAP System that can be released either manually or automatically. Examples could be faxing purchase orders to vendors or sending order confirmations to customers. Period Unit Unit that gives a structure a time reference. Plant A Plant can manufacture product, distribute product, or provide a service; the central organizational unit of Production Planning. Plant-Specific Purchasing Organization Organization responsible for purchasing activities for a certain plant. PMIS Plant Maintenance Information System Production Planning (PP) - Capacity Planning functionality comes from the Production Planning module and is used by both plant maintenance and customer service. Professional Purchasers Persons responsible for processing and issuing purchase orders in the Enterprise Buyer Professional system. If the requester creates a shopping basket in which the data is incomplete, for example, the vendor is missing for an item, purchasers receive the incomplete purchase order in their worklist. They can complete the data and send the purchase order to the vendor. Purchase Order Request or instruction from a purchasing organization to a vendor (external supplier) or a plant to deliver a certain quantity of material or to perform certain services at a certain point in time.

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Purchase Order History Details of deliveries effected or invoices received in respect of a purchase order item. Purchase Requisition Request or instruction to Purchasing to procure a certain quantity of a material or a service so that it is available at a certain point in time. Purchasing The R/3 System consists of a number of components that are completely integrated with one another. This integration allows the various departments and units of an enterprise to share and maintain the same information. Purchasing is a component of Materials Management (MM). The Materials Management (MM) module is fully integrated with the other modules of the SAP System. It supports all the phases of materials management: materials planning and control, purchasing, goods receiving, inventory management, and invoice verification. The tasks of the MM Purchasing component are as follows: external procurement of materials and services, determination of possible sources of supply for a requirement identified by the materials planning and control system or arising directly within a user department, monitoring of deliveries from and payments to vendors, and good communication between all participants in the procurement process is necessary for Purchasing to function smoothly. Purchasing Data Type of Vendor Master Data that includes the purchase order currency, incoterms, and the vendor’s tax data. This data is maintained for each purchasing organization. The user can also maintain different data on a plant-dependent basis or for vendor sub-ranges. Purchasing Document Instrument used by the purchasing department to procure materials or services. The standard R/3 system includes the following external purchasing documents: request for quotation (RFQ), purchase order (PO), contract, and scheduling agreement. In the SAP System, the term purchasing document is often restricted to such external documents (that is, documents other than purchase requisitions). You can use a purchase requisition (an internal document) to notify Purchasing of your requirements of materials and services. Purchasing Document Type Identifier that allows a distinction to be made between the various forms of a document category. It determines, for example, the relevant number range and the fields that are offered for maintenance.

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Glossary

Purchasing Group Key for a buyer or group of buyers responsible for certain purchasing activities. The purchasing group is internally responsible for the procurement of a material or a class of materials and usually the principal channel for a company’s dealings with its vendors. Purchasing Info Record Source of information on the procurement of a certain material from a certain vendor. Purchasing Organization Organizational unit within Logistics, subdividing an enterprise according to the requirements of Purchasing. A purchasing organization procures materials and services, negotiates conditions of purchase with vendors, and bears responsibility for such transactions. The form of procurement is specified through the assignment of purchasing organizations to company codes and plants. Possible forms are as follows: Enterprise-wide: One purchasing organization procures for all the company codes of a certain client (that is, for all the individual companies of a certain corporate group), Company-specific: One purchasing organization procures for just one company code, Plant-specific: One purchasing organization procures for one plant. Mixed forms are possible, which are replicated in the system with the aid of reference purchasing organizations. A purchasing organization may access and use the more favorable conditions and centrally agreed contracts of the reference purchasing organization assigned to it. PURCHIS Purchasing Information System. QMIS Quality Management Information System. Quality Management (QM): Overall term for quality-related activities and objectives. Activities for quality planning, quality inspection, quality control and QM representation. Quantity Contract (MK): Contract (longer-term purchasing arrangement) under the terms of which the purchase of a certain quantity of goods or services is agreed. Criterion for the performance of the quantity contract is the agreed total quantity. Question & Answer Database Tool that allows you to map customer requirements to the functions available in the SAP System you are implementing. The Q&Adb includes: The SAP Reference Structure, which you can use to set your project scope by selecting, reorganizing and adding structure items. Associated items, such as questions, transactions, user roles, and organizational units, which are assigned to structure items.

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These elements help you to draw up your Business Blueprint and to configure your SAP System Issue management, where you can collect and manage unsolved problems that may jeopardize the success of the project. Quota Arrangement Mechanism enabling the system to compute which source of supply is to be assigned to a requirement that has arisen for a material. The quota arrangement facilitates determination of the applicable sources of supply for a purchase requisition at a certain point in time. The setting of quotas permits the automatic apportionment of a total material requirement over a period to different sources. A quota arrangement consists of quota arrangement records identifying the source (vendor, internal plant etc.), the validity period, and the quota. Raw Materials Raw Materials (ROH): 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. Real-Time Refers to the immediate access to a given piece of data by multiple users throughout the different departments or divisions of a company. Reference Purchasing Organization Purchasing organization to whose conditions or contracts other purchasing organizations linked with this organization have access. A reference purchasing organization can make particularly favorable conditions or contracts available to other purchasing organizations. Release Document Log relating to an item of an outline purchase agreement (contract or scheduling agreement) giving information on existing releases. In this context, the term release covers both release orders - standard purchase orders issued against contracts (also referred to as contract release orders) - and scheduling agreement releases (various special types of delivery schedule). The release documentation provides the following information: target quantity planned for the item, already-existing releases for the item (document number and date), quantity released to date (with corresponding value), and quantity that is still open. If the documentation relates specifically to a contract, it may also be referred to as release order documentation. Release Notes Display notes that describe functional changes between R/3 releases. Reorder Point Planning Special procedure in materials planning. If the reorder point is greater than warehouse stock, a procurement proposal is created by MRP. A distinction is made between: automatic reorder point planning and manual reorder point planning.

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Report on Online Transactions The user can request a listing of documents or master data information, as well as combinations of these objects (characteristics). Reports/List Displays are reports generated directly from the online transactions or from the other sources of summarized data. Explain that the lists generated by reports on online transactions allow you to trace back to and change/display the original documents (sales orders, purchase orders, etc.). Report Writer Functionality that enables the user to create reports for a variety of applications. The Report Writer can also be used in extended general ledger and cost center accounting as a tool for creating reports. Reporting Transactions, documents and master data are captured and stored in SAP and various different types of analysis can be run at any time in the SAP System. RFQ Request for Quotation(RFQ). RIS Retail Information System. Sales Organization Organizational unit within Logistics which structures the company according to its sale srequirements. A sales organization is responsible for selling materials and services. SAP Library Standard function in the menu Help for displaying R/3 System online documentation. SAPNet SAPNet is the intranet portal of SAP that provides a role-based and personal interface, and uses a Web browser as GUI . SAPNet is also available to SAP partners and customers who have a role-based view on SAPNet. Employees can personalize SAPNet to their individual needs and can use SAPNet as personal inbox and central access point to Employee Self Service and procurement. SAPNet-R/3 Frontend Formerly: Online Service System, OSS A medium that enables information flow, communications, and services between SAP customers and SAP. Customers can use the SAPNet-R/3 Frontend to find solutions to system problems, e.g. Notes, Support Packages, to submit problem messages to SAP, to retrieve information, etc. Customers access the SAPNet-R/3 Frontend via a remote connection.

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SAPoffice Electronic mail and folder system in R/3. You use the mail system to send documents internally (to other R/3 users in the same system), or externally (to users in other systems). You use the folder system to manage documents in folders. A distinction is made between private and shared folders. You can create documents either in an SAP editor or in any other suitable PC editor. You can also attach files to documents. SCM Supply Chain Management: Describes the active management of the entire supply chain from supplier to customer. SAP supports its customers with solutions that integrate information and decisions from the entire supply chain into a seamless, automated, and optimized information infrastructure. It provides the framework for integrating strategic decision support, data warehousing, planning and simulation, forecasting and execution systems in a closed loop with core enterprise financial, logistics and human resource applications. SAP delivers within its Supply Chain Management initiative the applications SAP Advanced Planner and Optimizer and SAP Logistics Execution System. Service Entry Sheet List of services performed by a vendor on the basis of a purchase order, containing service descriptions and details of quantities and values. The descriptions of planned services deriving from the purchase order appear as default values in the entry sheet. Unplanned services, which were originally entered in the purchase order without descriptions and only with the aid of value limits, are precisely defined in the service entry sheet. Service Master Record Product/material master record, in which a service is described in the same way as a physical product, including pricing information. Settings Enables user to select settings from help. SIS Sales Information System(SIS). Solution Maps Map of a complex, tailored industry solution system that gives a company an overview of its industry-specific business processes. Solution maps were drawn up in a cooperation between industry-specific user groups, partners, and SAP development teams in an effort to define the requirements of individual sectors of industry. See also: Industry solutions

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Source List List of available sources of supply for a material, indicating the periods during which procurement from such sources is possible. The source list enables you to determine the source that is valid (effective) at a certain point in time. Special Stock Stocks of materials that have to be managed separately for reasons of ownership or factors involving the location at which they are kept (for example, consignment stocks from vendors). Static Lot-Sizing Procedure Procedure where the lot size is calculated using the entered quantities in the material’s material master record. Costs incurred from storage, from setup procedures or from purchasing procedures are not taken into account. There are three different criterion according to which the lot size can be calculated: lot-for-lot order quantity (exact lot size), fixed lot size, and replenishment up to maximum stock level. Status Bar Element of the graphical user interface. The system uses one of the output fields of the status bar to display messages issued by the primary window. Other fields in the status bar provide information on the system status. The status bar extends along the entire width of the lower edge of the primary window. Stock Materials Management term for part of a company’s current assets. It refers to the quantities of raw materials, operating supplies, semifinished products, finished products, and trading goods or merchandise on hand in a company’s storage facilities. Also known as inventory. Storage Location R/3 portrays the commercial aspect of warehousing using storage locations. Storage locations are allocated to plants. Through this allocation R/3 links stores indirectly to a specific company. In R/3, inventory is always allocated to a storage location. Warehouses represent complex storage and material handling systems. Three-tier client/server architecture Consists of the database, the applications and the presentation logic. It may run simultaneously on three different physical computers. Distributing these functions among several computers enhances scalability and performance through parallelism. Time-dependent Conditions Conditions that are of key importance with regard to purchase orders. The time-dependent (master) conditions are the basis on which the system computes the effective price.

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Glossary

LO020

Trading Goods Trading Goods (HAWA): Trading goods are always procured externally and then sold. A material master record of this material type can contain purchasing data and sales data. Transactions Application programs that execute business processes in the SAP System. Examples are create sales order, change customer master or display a sales orders’ list report. Transder Posting Generic term for stock postings covering both physical transfers of stock and book transfers only (that is, changes affecting stock that do not involve physical movement - the actual material remains where it is). Examples of transfer postings involving physical movement: stock transfer between two storage locations within a plant, stock transfer between two plants, and transfer of material to customer consignment stock. Examples of transfer postings without physical movement are release of material from stock in quality inspection, transfer of vendor consignment stock to company’s own stock, batch splitting, and transfer posting material to material. URL Uniform Resource Locator (URL): Address of a resource on the Web - typically a hypertext but, in the future, also SAP business functionality. The URL includes a domain name identifying the Web site and a hierarchical description of the location of the resource on the Web server. Valuation Area Organizational unit in Logistics subdividing a company for the purpose of valuating material stocks in a uniform and consistent manner. Valuation Class Assignment of a material to a group of G/L accounts along with other factors, the valuation class determines the G/L accounts that are updated as a result of a valuation-relevant transaction or event, such as a goods movement. The valuation class makes it possible to: post the stock values of materials of the same material type to different G/L accounts and post the stock values of materials of different material types to the same G/L account. Value Contract (WK): Contract (form of longer-term purchasing arrangement) in which the purchase of goods or services up to a certain total value is agreed. The goods actually to be released (called off) against the contract are specified in contract release orders (also known as call-offs). Criterion for the fulfillment of a value contract is its agreed total value.

682


November 2001

LO020

Glossary

ValueSAP Value SAP integrates methologies, tools and knowledge (f.ex. Accelerated SAP, Team SAP) into a consistent framework to ensure that SAP solutions create value for customers at the earliest possible moment. Variant Change in the basic version of a product which occurs when details are omitted or added and which can be related to the form, composition and properties. Vendor Evaluation Program that provides a basis for decisions with regard to the selection and control of sources of supply. The main criteria on the basis of which a vendor is evaluated can be selected and weighted by the user. The main criteria are: delivery reliability, price, quality, and general service/support. These can each be divided into subcriteria. The system computes a points score for the vendor on the basis of the weightings given to the criteria. The maximum attainable score is specified by the user. Warehouse Management The SAP WM component deals with the following tasks: Inventory management in randomly-organized and fixed-bin storage types; Processing all relevant movements and tasks in the warehouse, such as goods receipt, goods issue, movements within the warehouse; Inventory. Warehouse Management System System for defining and managing complex warehouse structures within one or several plants. The SAP WM component deals with the following tasks: inventory management in randomly-organized and fixed-bin storage types, processing all relevant movements and tasks in the warehouse, such as goods receipt, goods issue, and movements within the warehouse inventory. WM Warehouse Management: The SAP WM component deals with the following tasks: Inventory management in randomly-organized and fixed-bin storage types; Processing all relevant movements and tasks in the warehouse, such as goods receipt, goods issue, movements within the warehouse; Inventory. WMIS Warehouse Management Information System.

November 2001


683

Glossary

684

LO020


November 2001

Index A AcceleratedSAP (ASAP), 616 EarlyWatch, 619 elements, 618 Global ASAP, 620 implementation, 616 knowledge management, 619 partners, 617 Question & Answer Database, 619 Roadmap, 618 tools, 618 account assignment, 366 accounting document, 313 application help, 15 automated processing source list, 496 automated procurement, 488 evaluated receipt settlement (ERS), 488 master data, 489 automatic payment program, 552

B blanket purchase order, 417 advantages, 421 categories, 420

C calculation schema, 245 client, 41 data, 42 Collaborative Business Scenarios (CBS), 615 collective number, 240

November 2001

company code, 42 accounting document, 313 consumable material, 365 standard procurement, 418 types, 367 Continuous Business Improvement, 622 process, 623 contract release order, 492 contracts, 492, 494 contract release order, 492 creation, 496 release order, 529 types, 493

D deadline calculation, 524 delivery costs account postings, 341 planned, 339 posting, 339 unplanned, 339

E Early Warning System (EWS), 588 EarlyWatch, 619 Easy Access, 9 favorites, 9 evaluated receipt settlement (ERS), 488, 551 automatic payment program, 552 execution, 554 prerequisites, 553


685

Index

LO020

F

I

F1 help, 17 F4 help, 17 favorites, 9 feedback, 16 forecast-based planning, 518

implementation, 616 AcceleratedSAP (ASAP), 616 Global ASAP, 621 Implementation Guide (IMG), 41, 619 company code, 43 customizing, 619 organizational levels, 41 plant, 44 industry sector, 148 info record, 141 info update indicator, 269 International Demo and Education System (IDES), 51 purchasing, 53 Inventory Controlling (INVCO), 583 inventory management, 44 issuing messages, 69 item category, 67 defined, 68

G Global ASAP, 620 Global Template System, 621 implementation, 621 Roadmap, 620 SAP Project Team Training, 621 SAP Support and Services network, 621 Global ASAP Roadmap phases, 620 Global Template System, 621 glossary, 16 goods issue, 92, 307 goods movement goods issue, 307 goods receipt, 307 transfer posting, 307 goods receipt, 86, 307 effects, 323 for stock material, 88 material valuation, 311 movement type, 92 posting, 86 purchase order, 88 results, 89

H help application help, 15 F1 help, 17 F4 help, 17 glossary, 16 online help, 15 SAP Library, 15 settings, 16

686


K knowledge management, 619

L logistics data warehouse, 584 aggregation, 585 structure, 585 Logistics Information System (LIS), 582 Inventory Controlling (INVCO), 583 logistics data warehouse, 584 Plant Maintenance Information System (PMIS), 583 Purchasing Information System (PURCHIS), 583

November 2001

LO020

Index

Quality Management Information System (QMIS), 583 reporting, 587 Retail Information System (RIS), 583 Sales Information System (SIS), 583 Shop Floor Information System (PPIS), 583 standard analyses, 589 Warehouse Management Information System (WMIS), 583 Logistics Invoice Verification, 109, 112, 338 evaluated receipt settlement (ERS), 552 features, 112 goods receipt-based, 115 help, 118 purchase order, 113 logon process, 4 lot-sizing static lot-sizing, 522

M master conditions, 452 master data, 110 analysis, 574 collective entry of storage location data, 166 data screens, 144 info record, 141 material data, 110 material master, 142 procurement, 140 profiles, 166 transaction data, 111 vendor data, 110 master production scheduling (MPS), 518 material document, 313

November 2001

goods movement, 307 material master, 142 additional data level, 150 automated procurement, 488 creating, 166 cross-application tool, 166 data screens, 150 entry aids, 166 extending, 159 industry sector, 148 main work level, 150 mass maintenance, 166 material type, 146 organizational levels, 143 reference material, 166 settings, 166 valuation class, 310 material requirements planning (MRP), 44, 517 procedures, 518 reorder point planning, 520–521 material type, 146 attributes, 147 material valuation, 44, 311 procedure, 311 Materials Management (MM), 109 Logistics Invoice Verification, 109 master data, 110 procurement process, 110 materials planning material requirements planning (MRP), 517 menus, 5 movement type goods issue, 92 goods receipt, 92 stock transfer, 322 transfer posting, 92


687

Index

LO020

multiple sessions, 12 mySAP.com solution Continuous Business Improvement, 622 implementation, 616 ValueSAP, 613 mySAP.com Workplace roles, 11 user menu, 11

N navigation tree, 9

O one-time vendor master, 239 online help, 15 order acknowledgement, 541 organizational levels, 40 client, 41 company code, 42 International Demo and Education System (IDES), 51 optional, 46 plant, 43 purchasing group, 48 purchasing organization, 47 storage location, 45

P partner roles, 194 planning forecast-based planning, 518 material requirements planning (MRP), 517 reorder point planning, 518 time-phased materials planning, 518 plant, 43 company code, 44 inventory management, 44

688


material requirements planning (MRP), 44 material valuation, 44 storage locations, 44 Plant Maintenance Information System (PMIS), 583 procurement cycle, 57 external services, 450 master data, 140 phases, 57 supply source, 528 procurement cycle determination of requirements, 57 goods receipt, 58 invoice verification, 58 payment processing, 58 phases, 57 purchase order monitoring, 58 purchase order processing, 57 source of supply, 57 vendor selection, 57 purchase order, 59 automated generation, 520 blanket, 417 creating, 61, 65, 294 document header, 63 evaluated receipt settlement (ERS), 551 format, 63 goods receipt, 86, 88, 418 history, 455 invoice verification, 419 issuing messages, 69 item category, 67 item-related value limit, 419 monitoring, 58 order acknowledgement, 541

November 2001

LO020

Index

processing, 57 processing status, 61 purchase requisition, 395 purchasing info record, 265 release order, 492 service entry sheet, 459 purchase order history, 455 purchase requisition, 364 account assignment, 366, 368 consumable material, 365 converting, 395, 397, 488 creating, 364, 369 processing, 396 purchase order, 395, 519 release procedures, 396 purchasing conditions, 238 purchasing document, 454 service specifications, 455 purchasing group, 48 purchasing info record, 265 info update indicator, 269 options, 267 pricing, 272 structure, 266 updating, 268 Purchasing Information System (PURCHIS), 583 purchasing organization, 47 cross-company code, 50 cross-plant, 49 plant-specific, 49

Q Quality Management Information System (QMIS), 583 Question & Answer Database, 619

November 2001

quotation price comparison list, 242 quotation processing, 242

R R/3 System Easy Access, 9 F1 help, 17 F4 help, 17 glossary, 16 help settings, 16 International Demo and Education System (IDES), 51 logon process, 4 menus, 5 multiple sessions, 12 navigation tree, 9 online help, 15 organizational levels, 40 release notes, 16 SAP Library, 15 status bar, 14 system messages, 5 user profile, 7 release notes, 16 release order, 529 releast order, 492 reorder point planning, 518, 521 net requirements calculation, 522 reporting Logistics Information System (LIS), 587 scope of list parameters, 575 standard reporting, 573 variants, 575 request for quotation (RFQ), 225 calculation schema, 245 collective number, 240 conditions, 244 creating, 226, 241 process, 226


689

Index

LO020

quotation price comparison list, 242 quotation processing, 242 Retail Information System (RIS), 583 roles, 11

S Sales Information System (SIS), 583 SAP Library, 15 SAP Project Team Training, 621 SAP Support and Services network, 621 SAPNet, 16 feedback, 16 scope of list parameters, 575 service entry sheet, 459 acceptance, 460 invoice verification, 464 service master record, 450 master conditions, 452 service specifications, 455 Shop Floor Information System (PPIS), 583 solution maps, 615 source list, 494 automated processing, 496 processing, 495 standard reporting, 573 static lot-sizing procedures, 522 status bar, 14 stock material, 453 stock overview, 307 valuation area, 308 stock transfer, 321 stock/requirements list, 526 format, 526 storage location, 45 supply source, 528

690


system messages, 5

T time-phased materials planning, 518 transaction data, 111 accounting document, 111 material document, 111 purchasing document, 111 transfer posting, 92, 307 stock transfer, 321

U user menu, 11 user profile, 7

V valuation area, 308 valuation class, 310 ValueSAP, 612–613 Continuous Business Improvement, 622 framework, 614 solution maps, 615 vendor account group changing, 191 vendor master data accounting data, 189 general data, 189 purchasing data, 189 vendor master record, 188 one-time vendor master, 192 organizational levels, 188 partner roles, 194 reconciliation, 193 reference, 195 vendor account group, 191 vendor master data, 189 vendor number, 193 vendor number, 193

November 2001

LO020

Index

W Warehouse Management Information System (WMIS), 583

November 2001


691

Index

692

LO020


November 2001

Feedback SAP AG has made every effort in the preparation of this course to ensure the accuracy and completeness of the materials. If you have any corrections or suggestions for improvement, please record them in the appropriate place in the course evaluation.

November 2001


693

LO020 Processes in Procurement 4.6C.pdf

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