...................................................................2 .......................2 Procurement of Consumable Material - 1 ............................................
Consumable Material - Overview .............................................................................................. 2 ...................................................................4 .......................4 Procurement of Consumable Material - 2 ............................................
Consumable Material - Overview .............................................................................................. 4 ...................................................................6 .......................6 Procurement of Consumable Material - 3 ............................................
Account Assignments .................................................................. ....................................................................................................................... ..................................................... 6 Procurement of Consumable Material - 4 ............................................ ...................................................................8 .......................8
Procurement Process for Consumption ................................................................................. 8
PROCUREMENT OF CONSUMABLE MATERIAL - 1 This series of articles deal with the process of procuring consumable materials. In doing so, we will cover new topics from each area (purchasing, inventory management, management, and invoice verification). •
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Purchasing: Consumable material, account assignment category, purchase requisition, order acknowledgment. acknowledgment. Inventory management: Difference between valuated and on-valuated goods receipts, valuation of goods receipt in the case of consumable material. Invoice verification: Consequences of valuated/unvaluated valuated/unvaluated goods receipt in invoice verification.
In addition to a comprehensive procurement process for consumable material, an introduction to the blanket ordering process is also included in this discussion. The item category in purchasing documents and changing the account assignment in invoice verification is also discussed in detail. We will concentrate on the procurement of materials for direct consumption. It contrasts the procurement procurement process for stock material material with that for consumable material. It also explains what is understood by consumable material in SAP R/3. In this scenario, procurement procurement is triggered triggered by an internal internal request - a purchase requisition. To be sure sure that the required materials materials can can be delivered on the desired desired date, the vendor sends an order acknowledgment. Attention then moves to the goods receipt and invoice verification processes, whereby the effects of a valuated against a non-valuated goods goods receipt are of primary primary interest. In addition, you find out how you can cover recurring requirements requirement s for low-value consumables (so-called “C” articles) articles ) economically economically using SAP R/3.
Consumable Material - Overview This section gives a brief overview of the procurement of consumable materials (consumables) and introduces the account assignment category necessary for this procurement process. process. In a company, certain materials materials (such as office supplies) supplies) are procured directly for cost centers. These materials are not subject to inventory management at the storage location. As a member of the project team, you are to check the procurement process for consumable materials in SAP R/3. In SAP R/3, one speaks of “consumable material” if the material is not procured for stock. Such materials can include raw materials for production (which are processed during the production process) or a machine that is used as an asset in the company for several years (assignment to an asset account). In SAP R/3 the term “consumable material” is understood to cover a material that is subject to a procurement transaction and whose value is recorded in the cost element or asset accounts. Consumable material is thus procured directly for an account assignment object. Examples of consumable materials are office supplies and computer systems or machines.
When a material is procured directly for “consumption”, no material master record is necessary. In connection with consumable materials, you can distinguish between the following cases: • •
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Consumable Consumable material without material master record Consumable Consumable material with material master record that is not subject to inventory management management (on either a quantity or value basis) Consumable Consumable material with material master record that is subject to inventory management on a quantity, but not a value, basis
PROCUREMENT OF CONSUMABLE MATERIAL - 2
Consumable Material - Overview In SAP R/3 the term “consumable material” is understood to cover a material that is subject to a procurement transaction and whose value is recorded in the cost element or asset accounts. Consumable material is thus procured directly for an account assignment object. Examples of consumable materials are office supplies and computer systems or machines. When procuring a consumable material without a material master record, you must manually enter in the document a short description, a material group, and a purchase order unit because this data cannot be pulled from a master record. Since the material type determines whether or not a material is subject to valuebased inventory management, the standard SAP R/3 system supplied includes the following material types for consumable consumable materials: •
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Non-valuated material (material type UNBW): o This type of material is managed on a quantity basis, but not on a value basis. This makes sense for materials of low value, stocks of which nevertheless have to be monitored (for example, operating manuals). manuals). Non-stock material (material type NLAG): Inventory management is not possible for these materials either on a o quantity or value basis. For frequently required consumables, the use of this material type nevertheless enables you to store the information required to create purchasing documents (such as texts and units of measure).
Of course, you can procure stock material not only for stock (that is, to be placed in storage), but also directly for consumption. You may purchase trading goods for a particular customer (sales order), order), for instance. instance. You can thus enter an an account assignment for each item of an external purchasing document or purchase requisition if it is destined for direct consumption. In certain cases, however, account assignment is mandatory. You MUST enter an account assignment for an item under the following circumstances: •
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If a material that is not subject to inventory management is ordered. It follows that such material is posted directly to consumption (“pure” consumable material). If an article for which no material master record exists exists is ordered If an external service is ordered
If a material is to be procured as a consumable, you must specify an account assignment category and other account assignment data in the document item of the relevant requisition or external purchasing document.
SAP MM Account Assignment Objects Figure SAP MM Account Assignment Objects
The account assignment category determines the category of account assignment object that is to be charged, which account assignment data you must provide, and which accounts are debited when the goods receipt or invoice is posted.
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Account Assignments Example: account assignment object cost center (account assignment category K) When you make an assignment to a cost center, you must enter the G/L account number of the consumption account and the cost center for which the material is to be procured on the account assignment data screen. You can specify in Customizing that the system automatically suggests the number of the G/L account to be charged.
Example: account assignment object asset (account assignment category A) If you use account assignment category A, you must enter the asset number on the account assignment data screen. The system automatically determines the G/L account to be charged from the asset number. You cannot enter it manually. Note: It is possible to define further account assignment categories or change existing ones in Customizing. Account Assignment Purchasing Materials Management (Customizing (Customizing Maintain Account Assignment Categories) → →
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SAP MM Purchase Orders with Account Assignment Figure SAP MM Purchase Orders with Account Assignment
You can specify one or more account assignments for an item. If you specify a multiple account assignment, you must also specify how the PO quantity is to be distributed among the individual account assignment objects. Distribution Distribution can be on a quantity or percentage basis. If you enter a multiple account assignment for an item, the GR non-valuated indicator is automatically set for this item.
In addition, you must specify in the item how the costs are to be distributed if only part of the ordered quantity is initially delivered and invoiced. •
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The partial invoice amount can be distributed among the account assignment items of a PO item proportionally (in accordance with the distribution ratio). The partial invoice amount can be distributed among the account assignment items of a PO item on a progressive fill-up basis (step-by-step, one after the other).
In this procedure, account assignment item 1 first receives its complete allocation, then account assignment item 2 and so on, until the invoice value is reached. The partial invoice indicator can also be derived automatically from the account assignment category if a partial invoice indicator is specified in Customizing for the account assignment category. You cannot usually tell from an invoice whether it relates to a purchase order with account assignment. You can only tell this from the item list in Logistics Invoice Verification (Account Assignment column). You can display the account assignment information and, under certain circumstances, change it. Special display variants are available available for the item list when you enter an invoice for a purchase order with account assignment.
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Procurement Process for Consumption The following graphic contrasts the procurement process for stock material with that for consumable material. The differences center on the “purchasing view” and the “relevant accounts”. Start by reviewing the procurement process for stock material and then take a detailed look at the individual variants of consumable material procurement. procurement. • • •
Stock material that is procured on an account-assigned basis Consumption Consumption material without material master record Consumption Consumption material with material master record
In the “Procurement for Consumption” graphic, the procurement processes for stock and consumption material are shown with regard to account assignment. A material master record is necessary for stock material. You do not specify an account assignment category in the purchase order. The account assignment data is determined from the material master record (valuation class). The stock value is posted to a stock account at the time of goods receipt. In consequence, the stock value and stock quantity are updated in the material master record.
SAP MM Procurement for Consumption Figure SAP MM Procurement Procurement for Consumption
When you procure consumable material, the material can be a special consumable material with a master record or a material without a master record. However, you can also procure stock material for direct consumption. In all cases, you must specify an account assignment category and other dependent account assignment data such as an account assignment object and G/L account (consumption account).
At the time of goods receipt and/or invoice receipt, the consumption account specified in the purchase order is then debited with the procurement value. In addition, data for the account assignment object is updated. The following figure “Stock Material - Consumable Material: Comparison” lists the most important differences between the procurement of stock material and that of consumable material.
SAP MM Comparison of Stock Material and Consumable Material Figure SAP MM Comparison of Stock Material and Consumable Material
