MM Training by Studyuuu

MM Training by Studyuuu
MM Training by Studyuuu

Tuesday, 20 October 2020

Accounting Entries Effect in Procurement Cycle Concepts


Accounting Entries Effect in Procurement Cycle Concepts- SAP MM&FI:

 As we studied in previous post regarding accounting determination, here we are discussing how the accounting determination is going to work based on the settings you done and which are all the GL accounts its getting hitting based on which scenario and why is the reason behind that.


We have N number of activities in procurement cycle and one of the main thing is Inventory and to know the spend, goods inbound and outbound will take place in plant, we need to depend on reports in SAP and even the reports we will be taken on -which accounting entry for which type of movement or else goods inside and outside will be calculated full based on accounting entries.

While we are defining account determination, we have something called modifiers, many things were surrounded to modifiers.

Each entry in procurement where stock and price are involving then automatically accounting entries will come into picture.

We are doing many activities in Inventory by ordering stock from vendor, Normal order from vendor, Consumables, Subcontracting, Pipeline, Consignment, Physical Inventory, Stock movements like STO/Inter and Intra, return PO, service PO.

Here we will study which accounting entry will affect on what scenario and the reason.


1.Standard PO Order-


This is the normal order where we use to procure from vendor and vendor mainly materials like Raw-materials and finished goods, which are physically used for production purpose.

Once the vendor delivers the goods to plant, based on invoice we need to make a payment to the vendor and APAY will release the payment – Here from which GL account the payment should release.

Because we cannot use some other GL account for these types of materials, as per the company its already predefined in OBYC like which GL account should hit for which type of orders-----these settings are predefined by SAP.

While paying amount to the vendor few accounts will hit automatically with the help of transaction event key.

If anything like stock is getting crediting to plant or withdrawal of stock from plant will reduce or increase the quantity, in those cases BSX will hit automatically.

And for clearing the invoice always WRX will hit and from this vendor account will get paid automatically.

Accounting Entries:

Inventory Posting- BSX +

Clearing GR/IR entry- WRX –


Here we have 1 more scenario, where material master price is coming into picture and it is Standard price and moving average price.

Standard price- S

Moving price- V

For every material we have price indicator and S means standard price- Where price will not fluctuate normally.

For material with moving average price then price may change as per the market.

Accounting entries for moving average price is same as explained above like BSX and WRX.

(!)Moving price in Material master: for moving price if we are doing MIGO/MIRO and payment to the vendor then one more accounting entry will come into picture that is PRD.

Inventory Posting- BSX +

Clearing GR/IR entry- WRX –

Price difference account- PRD –


2.Indirect PO/Service PO:


As above if we have material then with the help of valuation class and account category reference the GL account will hit, and accounting entries will be displayed while payment.

In indirect PO, there will be no material and there is no Material master/valuation class, so in this case how the accounting entries will be recorded.

Note: Indirect PO’s are always consumable materials and services and for now just consider as Consumable material.

Now we need to maintain GL account in OBYC and without valuation class and here is the procedure for that.

Accounting Entries:

In this case accounting entries will be KBS and WRX


But when you see in OBYC- KBS, there are no GL accounts in that modifier.

But when you enter material in PO, based on the account assignment the direct effect will be on VBR and we can see these settings in _____

Here it’s an SAP recommended setting, where it explains which account assignment should hit which modifier.

Now in this case, VBR is an account modifier but for consumption it’s showing KBS and WRX, but the GL account will be taken from VBR modifier and in that search for blank valuation class GL account.



We all know the sub-contracting process and in these many scenarios, but accounting entries will be same for financial point of view.

( ! ) Stock transfer to vendor

(!!) Scrap

(!!!) Buying components and service from vendor

(!!!!) Vendor to Sc. vendor

We have above 4 scenarios and process are different, but payment is same we need to pay to vendor finally and accounting entries will be same.

Here main activity we are doing is transferring stock to vendor and vendor is consuming that and providing full finale material to us, so let’s think what type of inventory effects are involving.

While stock transfer the inventory stock will get reduce

Vendor will consume and prepare final material, so service payment should be done.

Accounting Entries: BSX, WRX, FRL, BSV

BSX- the stock we are transferring to vendor, so stock will get reduced

WRX- we need to pay to vendor

FRL- Service done by vendor like manufacturing or something fittings

(!!) Scrap                                                         ----------!

(!!!) Buying components and service from vendor--!          BSX, WRX, FRL and BSV

(!!!!) Vendor to Sc. vendor                             ----------!



Here we use to procure from vendor as bulk quantity and once it’s received, we ill place in vendor consignment stock- Non billable for company.

Once we shift from consignment stock to own stock then we should do MRKO- Billing to the vendor for payment.

Biased on the usage, it may be 10% or 50%- we will do invoice (MRKO) for the used quantity.

Accounting entries hit will place in – KON and BSX

5.STO (Intra):

For STO, where stock will transfer from plant to plant and here, we have two scenarios.

Within company code

Between two different company codes

Within company code:

Within the company codes, there will be no billing takes place whereas plants are within same company code, where we can exchange the stock as per the requirements.

But whereas two different company codes, the billing will take place and billing will be done by SD consultant.

6.Physical Inventory:

In every company there will be physical inventory and stock will be verified and make it corrected if there is plus or minus.

Accounting entries takes place are: BSX and INV with modifier GBB


Tuesday, 26 May 2020

SAP MM---Inbound Delivery/CCK/Advanced Shipping Notifications

Inbound Delivery/CCK/Advanced Shipping Notifications:

Inbound delivery will be created for few of the vendors/ Materials to know the advanced information rereading materials that going to store in a company
Advanced shipping notifications gives prior information to stakeholders related to stock that going to place, so that we can make arrangements in plant/Warehouse
CCK plays a major role in deciding this Inbound delivery and this will be activated in vendor master or PO

We can have our customized CCK –Confirmations while creating PO we can assign to vendor as per the requirements
We can also maintain delivery date tolerance in customization
Reminder check to vendor related to notification that prior

GR cannot be posted without Inbound delivery, where its mandatory to receive the advanced shipping notification about goods
To create inbound delivery T-code is VL31N/VL32N/VL33N

Friday, 22 May 2020

SAP MM Returnable Transport Packaging (RTP)

Returnable Transport Packaging (RTP)
RTP is a special kind of stock that we handle in organization
Once we are transferred the material to our storage location then we will return this packaged material
Material type for RTP is –LEIH
Movement type that indicates receiving material with RTP is 501 M
Returning RTP packaged material movement type is 502-M

Sunday, 26 April 2020

SAP MM-- Import Procurement full overview explanation

 Import Procurement full overview explanation

•Procuring of goods from US to India or any other places
     India to USA
•Currently India is using GST, so there are no different condition types will trigger
•Whereas in case of different country, the condition types for customs will come into picture
•Remove the tax code or maintain it to 0% and maintain the vendor to unchecked GR based IV

•Customs Clearance vendor will be different/Same as per the company requirements
•But if the customs vendor is different then IV needs to be posted before GR and that should be paid
•Once material received to plant then GR and following with IV       will happen

•Orders or u can use even same normal doc type(Preferred to use different)
•Material master—Foreign trade import tab –Fill details what type of products /region and Origin
•Vendor master—remove the GR based IV check for vendor or Invoice tab
•Check calculation schema whether import condition are maintained to calculate charges in PO
•Perform PO with all the details and do the Invoice with planned delivery costs
•Now perform the Goods receipt and Invoice receipt for normal goods
•Payment will release to vendor and prior payment of customs will be processed to vendor.
•This completes Import type of procurement

Wednesday, 13 November 2019

IDOC’S- Intermediate Document- Full Overview explanation for Consultants- SAP MM

IDOC’S- Intermediate Document:

Basic Concepts to learn before learning Partner profile:

·       Concept

    IDOC is an intermediate document where many industries will use to transfer their data from one system to other system, it can be SAP to SAP or SAP to Non- SAP.
As an SAP MM consultant, we will work less on IDOC’s, but we should know the concept behind the IDOC for resolving the issues by Monitoring the IDOC.

·       Overview

      IDOC is an SAP object where data will be transferred inflow and outflow through electronic message, the main use of IDOC is transfer of data from SAP to Non-SAP through EDI and SAP to SAP through ALE.

Here we have 2 types of flows in SAP, where data will be flowed into SAP and other is data transfer to other tool from SAP through Inbound and Outbound.

·       Inbound: Data that received from other tool to SAP in the form electronic message.
·       Outbound: Data that will be flowed to other systems through SAP in terms of electronic message.

We have 2 IDOC types

·       1.Basic Type- It sends the information to the receiver port as per the mapping fields done by us.
·       2.Extension- When we want any extra information to send to receiving party then we have this IDOC extension.

Conversion Format:

If data is transferring SAP to Non-SAP then data format is required that EDI acts as a data converter, it converts data to XML format and loads the data and sends to another tool respectively.

Mapping of fields has been done as per the size and data fields.

Mapping is same as LSMW method and it will be done by MM technical consultant and as a functional consultant we need check the port number and few major things explained below.

**** we have segments, where fields will be stored in the segments and mapping will be done according to the segments available in the IDOC****

We have Parent segment and Child segment; different fields will be stored in different segments.
Note: IDOC direction explains whether the data is flowing inbound or outbound.


We have 3 partners in SAP R/3, where data will get exchanged within this and they are LI-Vendor, KU- Customer, LS- Logical system.

Vendor- Normally we use work with vendor for PO, Order confirmation, Order acknowledgement and Invoice.

Customer- SD side, Sales order

Logical system- we have other department systems, where weight lift measuring tool.
Data flows inside and outside as per the above examples.


The port we maintain it contain IP address of the source or receiving system and this port number will be provided by Basis Consultant.

Ø Partner Profile maintenance:

Partner profile should be maintained for all business partners where if we want to receive/send information to all the vendors.

T-code to maintain the partner profile is WE20.

Double click on partner and click on LI-vendor, if we are setting partner profile with vendor.
Once we enter on vendor, we can see above screen where we can have options to enter inbound and outbound entries, as I told this will be electronic message where data flows.

We have message type in which we see inbound or outbound and, we can see contact information.
·       Select any of the two – either inbound or outbound

And system will ask for receiver port number and this will be given by Basis consultant and here every filed is mapped and after they will provide the receiver port number to maintain in the below screen.

2.Next tab- Message Control:

If we are sending PO copy, we have message type for PO, insert message type and enter the link code ME10.

Whenever PO copy is created for this message type then IDOC number will be generated and transferred to receiver.

Change message: In message control we can see change message option where if there is any change in document the IDOC will sends the changes automatically for that we need to maintain 1 more line in message control with change indicator.

3.Inbound options- Inbound Parameters:

Here we need to select the trigger by background program, so that it will take the parameters after saving and as per mapping it will send to receiver automatically.

4.Post processing:

Here we will maintain the agent who should receive the notification when EDI processing fails, System will send the log data and reason for failure.


 We can enter the telephone number of receivers.

6.EDI standard:

Here we can update the message type as per the purchase order.

Overview Explanation of above everything:

Receiver port means – the receiver IP address or data that is mapped and created a port that is receiver port.

We have IDOC type where it contains the segments in which it mapped all the fields, we will maintain the idoc type in outbound and it should be purchasing/sales

Once we have IDOC type, we had message type where what kind of data that is transferring or mapped it can be purchase order, Acknowledgement, Contract.

Process code – where we have message type and idoc type contains the sending data information, now to process this we need some code that is process code.

By above 3 Idoc will trigger and sent to receiver

. ******

Ø IDOC Structure and records- Monitoring of IDOC:

IDOC structure is divided into 3 records.
1.     Control record
2.     Data record
3.     Status record

1.Control record: 

Control records contain few data like.

IDOC number
Direction of IDOC
IDOC Status
Basic type
Receipt information
Sender information
Port number

2.Data record: Contains data that flows through EDI
Data record will have segment and child segments
Each segment will have some data with fields and as per segment the data will flow to receiver.

3.Status record: 

we can find the status of IDOC processing:
We can find the PO’s processed with help of IDOC, whether its inbound or outbound.
For outbound idocs- 16 is the number for success
For inbound idocs- 53 is the number for success

---if we get error then want to find the idoc number in PO, then go to attachment tab in PO and click on relationship.

Tickets and Questions related to IDOC’s

How to monitor the IDOC?


T-codes IDOC

WE31- Create IDOC Segment
WE30- IDOC Type
WE20- Partner Profile

               For this partner what type of information we are sending to receiver.

WE02- Monitor the IDOC
WE05- List of IDOC’s
WE21- Delete the IDOC
WE19- Testing of IDOC
Customized T-code- Status change.
Manual processing of IDOC – BD87
WE09- Searching for specific information like PO

45.1 Why do you reprocess IDOC?

All failed IDOCs should be reprocessed for the confirmation of output messages to vendor
We have own tcode for reprocessing the IDOC

IDOC Statuses?

1-     50 will represent the outbound status
03- IDOC has been triggered
16-Succesfully generated successfully
51- 78 will represent the inbound status
        53- Successfully posted inbound
59- IDOC error
All Error Status:
02- Error transferring data to port
04- Error in EDI information
05- Error during conversion

45.2 Frequent IDOC errors.

1. When the receiving info mapping has required fields and sending info is missed that data, then IDOC failure will happen.

2.When they edit PO and reprocessing the IDOC, then IDOC will gets failed as IDOC will trigger automatically.

3.Failed to transfer data to port, its error from BASIS side, where data is not able to reach the port.

4.when there is an application type mistake was happened then also EL is for contract and EF is for Purchase order.

For all IDOC errors we need to change the status manually to status 30- ready for shipment- We have customized tcode for changing the status.

5.with the same order number IDOC receivers one more output then IDOC will gets failed with status 59.

Thursday, 7 November 2019

What is IDOC? Explanation for Interview Purpose

What is IDOC? Explanation for Interview Purpose:

Overview Explanation for Interview purpose

Question: What is IDOC?

IDOC is an Intermediate document, where data will be transferred and received into the receiver system with the help of EDI.


Data exchange between two systems can takes place with the help of IDOC as per the  requirements

We have 2 methodologies in IDOC, one is ALE IDOC and other is EDI IDOC.

ALE IDOC will be data transfer between SAP to SAP system.
EDI IDOC is data transfer between SAP to NON -SAP System

  • Explain the setup of IDOC- Inbound or Outbound:

We will setup the IDOC, as once we get confirmation that with whom data transfer is going on.

1.vendor- LI
3.Logical system- LS

Any data that transferring out of our system to other system is called outbound
Any data that transferring into our system to other system is called Inbound

·       Setup of IDOC for Vendor:

WE20- we will select the vendor and enter the vendor number and few fields will fetch automatically like partner type and agent.

We can see 2 options Inbound and Outbound, select the respective one and enter the partner role and message type.

Now system will allow us to maintain the receiving port number, which will be given by Basis consultant and enter pack size and basic type of IDOC and extension

1.     What is Port number

Port number contains the receiver details where we are sending the information to the partner, Port number contains the IP address of the receiving partner to flow of data.

2.     What is Basic type

Basic type contains the data where it should flow to receiver and data will flow with the help of segments.

3.     What are Segments

Segments are the part of IDOC, where all the fields mapping will be done like item details and header details wrt receiver system, in which every segment like few fields and it will help to analyze the data also.
4.What is Extension:

In Basic type we are sending data as per the mapping done in segments, few cases we have some customizing fields that needs to be transferred to receiver then it should be done by extension field.

·       Once we complete the above details, we have message options to setup, here we are mentioning application and message type along with process code

1.     What is Application
Its code where we will select as per the purchasing document, EF for purchase order

2.     What is message type:
It explains what type of message we are sending to the receiving partner, like we will send PO, Invoice, OC and Acknowledgement

3.     What is Process code:
It’s a piece of code, where we have mentioned segments for fields and sending PO through electronic message and now ABAP team will prepare a code for that message.

·       Once we are done with this now, we need to maintain the agent number- Respective buyer number in post processing, where IDOC status will be generated and flowed to buyer and he will analyze the OCR.

How do you Monitor an IDOC?

WE02- we will search for the IDOC and we see the records maintained for that IDOC.

1. Control record
2. Data record
3. Status record

Control record: Control record contains the information of IDOC number, who is the receiver/Sender and IDOC created on and few more basic details

Data record: It contains the segments, where we mapped few fields and if any field in not popping up, then we will check in this record and ask ABAP team to add those fields.

Status record: Where we can see all documents processed for that IDOC, we can check PO number and we can see access sequence number wise.

We can have number like 53 for successful outbound and 13 for successful inbound.

Manual Processing:

We can have selection like whenever PO is saved IDOC will get generated, if not we can mention as collective IDOC and send those manually by T-code BD87

Failure IDOC:

We can have few failure messages through IDOC,
We have 2 separate programs, where IDOCs will be processed again.

Test IDOC:

If we want to test and edit the IDOC, then we have test IDOC, where we ca copy by tcode WE19 and edit and test the IDOC- Only for testing.

We can use BD87 also for this testing.

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