There are two possible transactions to use here. They are FB03 and FBV@The first shows all posted document types. This is the best choice if you think the document has been posted to you actual balance. The later shows only parked documents that have not yet posted to your expenditure balance. These documents are still encumbrances. It is the best choice if you are trying to find which documents are still awaiting completion or approval. This transaction is very similar to the FBV2 transaction used with P-Card reconciliation and marking parked documents complete.
In the external procurement, the procurement of raw material, trading goods, and services is made from the external supplier for the organizational units of an enterprise that need such items or services.
In the internal procurement, the procurement of raw material, trading goods, and services is made from an organizational unit of an enterprise for other organizational units of the same enterprise that needs such items or services.
Forecasting is a future prediction which is an uncertain process. Most business decisions are based on forecasts, such as decision of material requirements. While making business decisions, forecasts are continuously needed. The impact of the forecast on actual results is first evaluated and the initial forecasts are updated and then accordingly the decisions are modified.
Vendor evaluation is an important function of the purchase department as it supports in optimizing the procurement process by selecting vendors to supply materials or services.
Forecast-based planning is a process used in consumption-based planning which depends on predictions of future requirements calculated on the basis of forecast.
The forecast model can be selected automatically by entering the value J in the Forecast Model field in the Material Master record where the value J is used for Automatic Model Selection.
A client can be defined as a person, company, or an organization that purchases goods from another person, company, or organization and pays for that. In terms of SAP, a client can be defined as a unit that has its own master records and a set of tables. It is important in SAP because it stores and maintains data about the organization where SAP is implemented.
In STO, UB document type is used and it also requires a supplying plant for the movement of materials, whereas in the standard PO, NB document type is used and requires a vendor for the procurement of material.
RMDATIND is used to update Material Master Records and can be used for such assignments as extending all materials to a new plant.
In a customized Movement Type, you have defined which consumption value gets posted in the movement. Many will always be planned or unplanned, but for some there is a dependency on if the movement references a reservation. This would be planned consumption.
Some of the data points provided by purchasing for the materials are Base unit of measure, purchasing group, remainder days, shipping instructions, tolerance levels, GR processing time, critical part, and JIT schedule indications.
In MMR and VMR check Auto PO (MM02/XK02).
Maintain the Source List and select the indicator for the source list record as MRP relevant (ME01). If more than one source list record is generated, make one of them fixed. Run MRP and the PRs generated will be pre-assigned with the source of supply (MD01). Enter ME59 for automatically creating POs from PRs.
The purchasing information records, also known as info record, contain information related to the material and vendor who is supplying the material. It also contains details about the material, such as the current price of the material.
The complete information related to managing a material is stored and maintained in a data record in the material master, which is sorted on the basis of different criteria.
Use Transaction Code CT0@Follow these steps: Format (numeric, character, etc.), Unit of Measure, Templates, Required Entry, Intervals as Values (?), descriptions for texts for characteristics and characteristic values, display options for characteristics on the value assignment screen, Allowed Values, Default Values that are set automatically on the Value Assignment Screen.
The Account assignment category field plays an important role in the purchasing documents. It contains many control functions that help to determine the objects that are charged in case of an ordered material. The ordered material must be procured for direct usage or consumption. With the help of account assignment category in the purchasing documents, the cost of the material can be allocated to a single Controlling object or it can be allocated among various Controlling objects.
The reservation list can be displayed by running the RM07RESL report.
A source list is used to identify sources of supply for certain materials. The following is the menu path to define a source list:
Select Logistics -> Materials management -> Purchasing -> Source list.
In general, the Blanket POs are used for consumable materials such as office paper with a short text, with item category B. There need not be a corresponding master record, for the simplicity of the procurement. The FO, Framework Order, document type is used. Here, the PO validity period as well as the limits are to be mentioned. The GR, or Service Entry for the PO are not necessary in the case of Blanket POs. One need not mention the account assignment category during creation of the PO. It can be U, or unknown and be changed at the time of IR.
SAP provides you with a number of account assignment categories that you can use for a purchase order. An account assignment category indicates the account assignment details that are required
The top level of the organizational plan is the Client, followed by Company Code, which represents a unit with its own accounting, balance, P&L, and possibly identity (subsidiary). The next level down is Plant, an operational unit within a company (HQ, Assembly Plant, Call Center, etc.). The Purchasing Organization is the legally responsibly group for external transactions. This group is further subdivided into Purchasing Groups.
The following is the menu path to create a document/e-mail notification for your supplier:
Select Material Management-> Logistics Invoice Verification -> Message Determination.
The following are the different types of forecast model:
The tax code defines how the tax will be calculated and posted in SAP R/3 System. Each item on which the tax is applicable is allocated to a tax code. The R/3 System reads this tax code for each item and calculates tax for it. This tax and tax code is a part of Purchase order.
The payment terms in PO represent the agreements of customers and vendors. You can define the payment terms in PO in the master records of customers and vendors.
You need to check the allowed transaction for the customized movement types and use the OMJJ transaction code.
The stock transfer from one place of location to another place of location is carried out in a plant. The posting of this kind of transfer is done without entering the value of the stock material as the management of the items is done within the same plant.
The following are the main master files used in MM:
In case of the purchase requisition with the master record, the source list, information record, and vendor evaluation are present in the system. In this case, the outline agreements are generated due to the changing of the short-term purchasing into the long-term agreement. As a reason, the purchase order cannot be issued against a purchase order, but only an agreement can be set up. If the material master is not present, then the material is ordered as a consumable item. The account assignment is done by specifying the consumption accounts against this acquisition. For example, the purchase information related with this requisition can be assigned to a specific cost center.
The different ways to organize purchasing organizations is distributed purchasing and centralize purchasing. Distributed purchasing represents multiple purchasing organization for multiple plants and centralized purchasing represents one purchasing organization per plant.
The MRP data and forecast data are the plant-specific data in material.
The prerequisites of creating a purchasing info record are as follows:
You can delete a batch by using the MSC2N transaction code.
You can delete a batch record by flagging the batch master record. For this, you need to first select the batch in the Change mode.
The following are the different steps of the MM cycle:
The material that is maintained on the basis of the quantity rather than its value is called the non- valuated material. The non-valuated material can only be withdrawn from the stores or warehouses only when it is transferred to "valuated" stock.
A centrally agreed contract type is created without specifying the name of the plant. The plant specification is provided at the time of creating the contract release order. In centrally agreed contract, different conditions for individual plants can be maintained easily. Moreover, different ordering addresses or goods suppliers in the vendor master record can also be specified in this type of centrally agreed contract. The centrally agreed contract is useful in the enterprises that have a central purchasing department and the materials are required to be bought for different plants. In this case, they create a high-level contract used by the other department-specific purchase organizations within the enterprise. The use of such centrally agreed contracts usually results in more favorable conditions of purchase and helps maintain consistency in process of purchasing throughout the enterprise.
Negative Stocks are necessary when Goods Issues are entered necessarily (business process reasons) prior to the corresponding Goods Receipts and the material is already located physically in the warehouse.
A reservation is a document that ensures availability of materials in the warehouse when materials are required for transferring materials to a customer. It contains information, such as which materials are needed, what quantities of materials are required, and when or where the materials are needed. It helps the Material Requirement Planning (MRP) system to avoid lack of stock in the warehouse.
Time-phased planning is an MRP procedure, where materials are planned to be delivered in a particular time interval. In the time-phased planning technique, there is a planning file that contains an MRP date to plan the delivery of materials. When the material master is created and is reset for each running plan, then MRP date is set. If you need to plan the delivery of a material earlier than the specified MRP date, you can enter an MRP date while running the plan. For example, if the running plan is set to Wednesday, you can get it forwarded to Monday.
Material master, material master general data (MARA), tax classification material (MLAN), info records, source list, and vendor master are the examples of master data in MM.
The OPPR transaction code is used to convert Planned Orders (PO) into requisitions in Material Requirement Planning (MRP).
An invoice is verified by using the OLMR T code.
The steps for the inventory management are as follows:
A class is a collection of the group of the characteristics for a particular object. You need to enter the class name and a description for it and then select the group. After saving the details, the class is created. Alternatively, you can use CL01 T-code for this purpose.
The lot size attribute represents the reorder quantity for a material. A material can have a periodic, optimum, or a static or fixed lot size.
At the time of creating PO, we take the reference of Purchase Requisition, Request for Quotation, and any other Purchase orders. However, it is not necessary to take the reference of these documents as most of the values are automatically taken by the SAP R/3 system.
Perform the following steps to create a movement type:
1. Select the standard movement type 201 from the Determine Work Area Entry dialog box.
2. Click the copy icon and then overwrite 201 with Z01.
3. Select the new movement type Z01 from the Determine Work Area Entry dialog box.
4. Select Reversal-> follow-on movement.
5. Enter the reversal movement type.