MM Training by Studyuuu

MM Training by Studyuuu
MM Training by Studyuuu

Monday, 24 June 2019

Purchase Order and Purchase requisition field settings and Number ranges-SAP MM



Purchase Order and Purchase requisition field settings and Number ranges

For Videos Explanation, please go to YouTube and Subscribe -  Studyuuu  SAPMM


In the previous blogs, we have studied the Material groups, Material types, PIR.
Now we are going to study about Purchase order and Purchase requisition Back end and front-end Configuration.

PR is an internal document, where requisition will be created as per the needs in the plant by the stake holders (Non-Purchasing department). Whereas PO is an eternal document, where a document will be sent out of department to the vendor to procure goods to fulfil our production.


Some of the mandatory fields to create a PR are Material, plant, vendor, Purchase organization. And for PO we can create without reference of PR also, but this is against the procurement policies.

T-code to create the purchase requisition is ME51N followed by ME52N, ME53N.

T-code to create the purchase order is ME21N followed by ME22N, ME23N.

PO Order for pulling reports: ME2M, ME2L.

Unit of Measurement in PR

Unit of measurement plays an important role in purchase equation and purchase order.
Few of the types and back end settings are mentioned below.

Base unit of Measurement:

 The UOM where we will discuss internally, and we will measure as per our requirements and when we are creating PR, the BUM plays an important role, the UOM will be pulled from Material master because its master data for procurement team.

Price:

 While creating PR, price will be automatically taken from Material master, we will maintain valuation price as S or V, whatever we maintain in Material master it will be pulled to purchase requisition.

Eg: If we maintain Standard price and moving price in the Material master, then which UOM will be taken in the PR?

We are maintaining the valuation type as-S or V, so price will be decided by the S or V.

Order Unit of Measurement: 

Order unit is the vendor Unit of measurement, where we need to send the external document to the vendor for procuring goods from them, so we need to order as per there UOM, so we have order unit of measurement.

1st scenario: When we are creating PO, UOM will be pulled from material master, Order unit and if there is No order unit is maintained then PO will automatically take from Base unit of measurement (This is the case without PIR)


Variable UOM in material master

Variable unit will be additional unit maintained in the material master, where we will maintain the conversion for that order unit.

Eg: if we want to maintain Box as an alternate unit for order unit PC, then we need to maintain 1 BOX is equal to 10 PC, so that while creating PO we can change as per our requirements.
We need to maintain the variable UOM to 1(Active)

UOM in PO

If there is no PIR, then PO automatically takes from Material master Order unit

If there is no order unit maintained, then PO will take Base unit of measurement in PO.

If there is PIR, then priority is PIR and then Remaining.

Price in PO

Price in PIR will be always taken from PIR and if there is no PIR system will take from Previous PO.
If any data is not available, then we need to enter the price manually.

 Back end settings for Purchase Order

We are creating PO and we know numbers will be generated automatically or we are defining numbers manually within few ranges, how?

We have few fields as mandatory and few of them are Optional, we need to customize the data as per the organization requirements.

In the PO, we have Document type creation, Number ranges and field selection
We can define the above settings as per our requirements.

Document Type:

Document types defines type of PO, is it Auto PO, Standard PO, Service PO, STO PO.
We are defining a new document type in the purchase order like.

NB is the standard document type and if we are creating new document we need to create the reference of copy as from NB.

SPRO
       Materials Management
                                    Purchasing (OLME)
                                                Purchase Order
                                                            Define Document types for the Purchase order


Once we enter path, find for NB document type as select as Copy as and maintain the new document type and save, we have created a new document type in the purchase order.

PO Field selection

We can define a field to be Optional or mandatory, while we are creating PO the we cant save the PO without entering those fields.

SPRO
       Materials Management
                                    Purchasing (OLME)
                                                Purchase Order
                                                            Define Document types for the Purchase order

Double click on document type and enter inside to maintain the field selection, we have fields sorted with group of items like purchasing data will available in once place.

We have 4 options like hide, Mandatory, Optional, Display.

Select the fields as per the requirements and save the document type.

If we have copied 2 documents type from NB, then we need to create a new reference field in define screen layout.

Once we define new reference field then we need to assign the new reference field to those new document type.

PO Number ranges

Number ranges, we have internal and external number ranges for PO also and please fallow the below path for defining number ranges.

SPRO
       Materials Management
                                    Purchasing (OLME)
                                                Purchase Order
                                                            Define Number ranges

Please select the interval and select the internal number ranges and maintain the field number as some new number and select the ranges of the numbers for internal and external.

Go back to the document type and there you can find the internal number range and external number range columns in the respective document type field.

Change the number range field to number you defined in the number ranges, so that number ranges will assign automatically.

Note: we have field reference field in the PO Document type, so we are coping document type from existing document type. So, we need to maintain a new field reference in the document type.

First, we need to define a new field selection number from Field selection (path mentioned above) and we need to change in the document type, so that everything will work fine.

Back end settings for Purchase requisition

We are creating PR and we know numbers will be generated automatically or we are defining numbers manually within few ranges, how?

We have few fields as mandatory and few of them are Optional, we need to customize the data as per the organization requirements.

In the PR, we have Document type creation, Number ranges and field selection

We can define the above settings as per our requirements.

Document Type:

Document types defines type of PR, is it NB, ZNB,ZNC.

We are defining a new document type in the purchase requisition like.

NB is the standard document type and if we are creating new document, we need to create the reference of copy as from NB.

SPRO
       Materials Management
                                    Purchasing (OLME)
                                                Purchase requisition
                                                            Define Document types for the Purchase requisition



Once we enter path, find for NB document type as select as Copy as and maintain the new document type and save, we have created a new document type in the purchase order.


                   PR and PO remains same steps, as I mentioned above-Please follow







Sunday, 16 June 2019

Release Procedure for Purchase requisition(PR)-SAP MM




Release procedure for Purchase requisition

For Videos Explanation, please go to YouTube and Subscribe -  Studyuuu  SAPMM


Release procedure defines, how the document is going to release. The document can be PR, PO, Contract, Scheduled agreement, RFQ. Here we study about the purchase requisition.
Purchase requisition will be created by the respective stake holders of there plant, if a request is created it will go to buyers Que to create purchase order and before that who ever is created purchase requisition he should approve and after that respective manager should approve.
We can create an N number of approvers for the documents like PR, where as an SAP MM consultant its their duty to maintain the release approvers.
We can maintain the release process for respective documents also.
Eg: we can maintain the release strategy for plant or material group also.







Release procedure:

we have 2 types of release procedures, defined below.
1.     With Classification
2.     Without Classification

1.With Classification:

We have 2 sub-terms in with classification.
Where we can release these documents in Document header level or Item level as per our business requirement.

1.Header Level
2.Item level

Header Level:

Header level contains PR, PO, Contract, Scheduled Agreement, RFQ

Item Level:

Item level contains PR.

2. Without Classification:

Without classification we have only 1 type of release process
            1.Item level


Flow-chart for above 2 Classifications

Release procedure--
            With Classification--
                        Header            ---                                                        Item--
                            PR, PO, Contract, SA, RFQ            
                                      PR       
Release procedure--

            Without Classification--
                                    Item--
                                                PR

To maintain the release procedure for particular document types in SAP MM, we have communication tables/Structure for document types, mentioned below

Document type                       Communication table

PR-                                          CEBAN
PR, PO, CO, SA, RFQ           CEKKO
SES                                          CESSR

In the above-mentioned communication tables are used to know the details for respective document type field component.
We have T-code to help to find the component for the respective field in the communication table, that is SE11, where we can only display the data (ABAP Data), its mainly used to find the component for the document type with the help of communication table.

Eg: CEBAN is used for PR, if we are maintaining the release procedure with respect to plant than we need to find the respective component for the plant filed in PR.
So, go to SE11, maintain the communication table as CEBAN if you are working for PR or else you can maintain CEKKO, CESSR for the remaining data field components.
As mentioned in the example, we have only one condition (Plant) to maintain the release strategy, if I would like to maintain the release strategy with combination of conditions then we need to define as mentioned below.

Note: Important Note: 1 condition = 1 Characteristic
                                    2 Condition =  2 Characteristic

Note: Maintaining the release strategy we need to follow the below steps.

1.     Edit Characteristic
2.     Edit Class

3.     Setup procedure with classification
1.     Release Groups
2.     Release Codes
3.     Release indicator
4.     Release strategies
1.     Release prerequisites
2.     Release statues
3.     Classification

Path to go to above release procedure (OLME)

SPRO--
            IMG--
                        Materials Management--
                                                            Purchasing--
                                                                        Purchase requisition--
                                                                                       Release procedure--
                                                                                                             With Classification—


Practicing:

Now will maintain the release procedure with respect to purchase group and Item category.
Follow the steps as mentioned above:

Edit Characteristic:
Where 1 condition is equal to 1 characteristic
We have 2 conditions here (purchase group and Item category), so we need to maintain 2 characteristics in the path I mentioned above.
OLME-With Classification

Characteristics: M1(Enter M1 and check whether its maintained already or not by clicking specs icon), if not created already then click on create icon next to the spec.
Here we should maintain the field components (Purchase group and item cat from SE11)
Go to additional data and maintain the table name as: CEBAN
Go to SE11 and take the field components by selecting the Purchase group and item cat.
P.group-EKGRP
Item cat-PSTYP
Now in this characteristic, we need to maintain either P.group filed component or Item cat component, because we mentioned above 1 condition =1 characteristics.
Maintain field name as: PSTYP

Now create an another characteristics for P.group

M2(Enter M2 and check whether its maintained already or not by clicking specs icon), if not created already then click on create icon next to the spec.
Here we should maintain the field components (Purchase group and item cat from SE11)
Go to additional data and maintain the table name as: CEBAN
Go to SE11 and take the field components by selecting the Purchase group and item cat.
P.group-EKGRP
Item cat-PSTYP
Now in this characteristic, we need to maintain either P.group filed component or Item cat component, because we mentioned above 1 condition =1 characteristics.
Maintain field name as: EKGRP

Note: Now we maintained the two characteristics that we want to use for release strategy.

Edit Classes:

Here we should define the class for characteristics, where we maintained 2 characteristics and we cannot maintain all characteristics directly to release strategy.
We need to define a class and we need to link all the characteristics in that class, so that in the next steps we can use class instead of all characteristics.
Go to Edit Class-
Class-M3
Class type-Release strategy
Click on create icon
Maintain the description as “Something relevant like this is for PR to convert to PO”
Go to characteristics-maintain the both Char numbers we created above.
M1
M2
Save

Select “setup procedure with classification

Here we need to do some functions like-release groups, release codes, release indicator, release strategies.

Select-Release group:

We need to maintain a new group in release group and we need to assign the class to this release group
M4 (Newley created group) assigned to M3(Class we defined)
Save

Release Codes

Maintain the release codes.
Group we maintained is M4-code is CR and maintain the description.
Here if we want two approvers then we need to maintain 2 column’s M4 and next to maintain CR-creator and MN-Manager and maintain the description as same.
M4-CR
M4-MN

Release Indicator

Maintain new entries, where we need to maintain the Block and release fields here
B-Block
R-Release

Release Strategy

Maintain release group what we maintained-M3 and release strategy number as 10.
Release codes-Mention
CR
MN
Select Prerequisites—
Select the last tab and continue—

Select release statuses---
Select the last tab as R-so that once we get all approvals PR will allow to create PO.
Select Classification
Item cat-Z
P.group-000
Maintain few values for the fields we defined for release strategy.
Now create the PR with above combination, we will see a new tab in the item level…. Release strategy
Go to ME54N and open the PR and release the PR to create PO.
















                       









Wednesday, 12 June 2019

Vendor master Configuration/Implementation Process - SAP MM




Vendor master Configuration Process: SAP MM

For Videos Explanation, please go to YouTube and Subscribe -  Studyuuu  SAPMM


Vendor and material masters are the important master data for every organization, were each vendor having business with the organization, the data will be updated in the company vendor master data were each details of vendor will be updated in the vendor master.
Because the company will be procuring goods and services from the vendors and to maintain their business run smoothly and if any changes made to the details that’s needs to be updated in the vendor master. E.g.: the company use to manufacture the cars and basically, we use to receive the few external parts from suppliers and if we don’t receive in time then production is impacting, and sales will impact and finally business will impact, to overcome this every details of vendor will be maintained in vendor master.

Vendor master is also called as business partner data

Some of the useful T-codes are

Xk01-Vendor master creation
Xk02-Vendor master changes
Xk02-Display vendor master
Xk04-Display the changes
Xk05-Block the vendor
Xk06-Flag for deletion
MKVZ-list of vendors-report

Difference between block and flag:

Block -temporary
Flag for deletion-Permanent

We have 3-Tcodes to create a vendor

XK01- vendor creating centrally
FK01- vendor maintained at company code level by FI team
MK01- vendor maintained at purchase organization level level by MM team
We have 3 types of data in vendor master.

1.     Basic data
2.     Financial data
3.     Purchasing data

Basic Data:

Basic data is a central data for the organization where it contains the basic details like: vendor name, Address, Email, contact persons will fax numbers.

Basically, this data will be filled by MDM team or vendor management team and here in this case all 3 departments can create this vendor master data.

If Vendor master is creating this new vendor, then financial data and purchasing data will be provided by respective FI, MM Consultants to them, and the transition they will use is XK01.

Financial Data:

Financial data will be purely for FI people and they have all the details of those fields and thy will be providing the details to Vendor master team.
Here we will be filling Reconciliation number: ---the number which belongs to GL account
Cash management group: the payment details like whether it’s an international payment, one-time vendor payment, standard vendor payment, domestic payment.
The T-code to create only vendor master financial data is FK01.

Purchasing Data:

Purchasing data will be always part of MM department, they use to get the details related to purchasing fields.
Few fields are:

Order currency: The currency of the vendor needs to be maintained as per the country of vendor supplying goods.

Terms of payment: it explains the payment terms of the vendor, like data of payment after the goods has been shipped.
Like 30 days after shipping, 45 days after shipping.
We can even the customize the payment terms as per the organization standards.
Controlling data- Where it explains the controlling like
GRbasedIV- IV will be posted wrt GR
Auto ERS-GR and IR will be posted wrt PO
Returns order- applicable or Not
We can create the purchasing data of vendor master in MK01.

Explanation:

Every team (MM and FI) will meet and fill the details in vendor master as per their respective accounts.
Vendor master is a part of Materials management and Financial accounting
We can create the vendor master as per department wise (MM-MK01) and (FI-FK01) or else we can create centrally XK01.


Number Assignment-Theory:

Each vendor in SAP will be created with respective number assignments, like will divide the vendor like international vendors, Domestic, Single time, service vendor.
We will divide all the respective vendors by using account group in the vendor master.
Number assignment is two types:
Internal
External

 Internal: In internal we need to define the number range and system will propose the free numbers while maintaining and while creating vendor master it will give automatically in that selected series.
Eg: selected series is 10000-10009 the number given by vendor master while creation is 10001 as first number.

External: Same as internal we need to define the external number range, where we can define the number range as alphabetical A-ZZZZ
System will not propose number range automatically, but we need to give the numbers manually within the number range selected for external.
We will be creating the number ranges because we need to separate different kind of vendors into one group and remaining into other groups which we can find easily.
We will be creating the vendor master in 3 levels

Client level
Company code level
Purchase organization level

Client level:

We will be maintaining the vendor master in client level where few fields will be same for few purchase organizations and company codes (basic data)
The data maintained in this level in client level
Few fields we will maintain in client level is:

Vendor full name
Fax
Telephone
Bank details
Country

Company code level:

All information maintained in this level will be equal to certain company codes and it will be maintained by FI team with t-code FK01 and few of the fields are as follows.
Reconciliation account
Tax information
Payment terms

Purchase organisation level:

We will maintain this data in MK01 and MM team will be maintaining this and will maintain these data in Purchase organisation level, we will able to create PO if there is purchasing info through purchase organisation level.
Few of the fields are:
Order currency
Terms of payment
Controlling data like -Auto ERS, GR based IV, Returns order

Account Group:

Account group determines vendor account group through which we can group certain vendors into one group and maintain certain configuration for that.
We have material type in material master where we use select the fields and number ranges with the help of material type-its act as a bridge, coming to vendor master in similar to material master we have account group here, where we use to define the account group select the field selecting as per that and we will maintain the number ranges in the intervals and we will apply that interval to account group.
Vendor -Account group
Interval-Number range
Number range-Account group

Field settings: we can select the fields in vendor master, which one to be optional or mandatory and hide these customization we can do in vendor master.

SPRO
    Logistics general
                        Business partner
                                    Vendor
                                                Control
                                                            Define Account group and field selection

Select the define account groups and take the copy reference or new/Existing account group
Enter and inside we can find the fields of all the basic, Financials and accounting data.
Once you the which fields you need to customize then click on that data and select the fields where you can find the options like Hide, Optional, mandatary.
Select and save the screen

Number ranges:

In number ranges same as material master we need to define the number ranges as per the account group reference
We can define external and internal for these same as material master
Where for Internal- system will specify the number range to select whereas for External we need to define the alpha number ranges as required for that account group
SPRO

    Logistics general
                        Business partner
                                    Vendor
                                                Control
                                                            Define number ranges for account group

Once you enter into define number ranges as per account group then you can find two fields
Intervals
Number range
Intervals: Intervals we need to define the range of the number like 1000-1009
We need to select the number which is not occupied and maintain the number ranges as system proposes.
You can enter either Internal or External but not both whereas in material master you can enter both internal and external.
Select the number ranges and accept the check button external or Not.
Once you done with this part come back and go to number range
In number range you can find the account group you created and in number ranges you have given a number for ranges so give that number to the account group and save.

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