SAP MM (Material Management)

SAP MM Books Published on Amazon.com

noreply@blogger.com (RAJ) — Sat, 02 Oct 2010 05:20:00 +0000

Hi All !!,

I have plublised SAP MM Books on Amazon.com.
In these books i have included the Basics and Implementation / Customization.
SAP MM Purchasing: Basics of SAP MM (Volume 1)

SAP MM (Material Management): Complete Reference to Implementation / Customization

You will find the step by step implementation with screenshot / pictures of SAP.
Hope you will found these books youseful for you all.
If you like thses books please leave a feedback on the website

Material Master Related Important Terms (Part 2)

noreply@blogger.com (RAJ) — Tue, 31 Aug 2010 08:40:00 +0000

Controlling (CO) An organizational unit in Accounting that reflects a management-oriented structure of the organization for the purpose of internal control.
Operating results for profit centers can be analyzed using either the cost of sales approach or the period accounting approach.
By analyzing the fixed capital as well, you can expand your profit centers for use as investment centers.

Profit Center
Key that uniquely identifies the profit center in the current controlling area.

Valuation Category
Determines whether stocks of the material are valuated together or separately.
Dependencies
In the case of split valuation , this indicator also determines which valuation types are allowed, that is, the criteria by which stocks can be valuated.

Valuation type
Invoice Verification (MM-IV)
A subdivision of a valuation category in split valuation.
Example : An enterprise manages its stocks of a material using the valuation category "Quality", comprising the following valuation types:

• High quality, Average quality, Inferior

Hazardous material number

Number that identifies the material as a hazardous material or as dangerous goods and assigns hazardous material data or dangerous goods data to it
Use: The hazardous material number indicates that the material is dangerous, making special precautions necessary for its storage and shipment.

Valuation Class
Assignment of a material to a group of G/L accounts

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
• Post the stock values of materials of different material types to the same G/L account

Default value for the valuation class for valuated stocks of this material.
Use: The valuation class has the following functions:
• Allows the stock values of materials of the same material type to be posted to different G/L accounts
• Allows the stock values of materials of different material types to be posted to the same G/L account.

• Determines together with other factors the G/L accounts updated for a valuation-relevant transaction (such as a goods movement

Material Master Related Important Terms (Part 1)

noreply@blogger.com (RAJ) — Tue, 31 Aug 2010 08:25:00 +0000

Material Group
Key that you use to group together several materials or services with the same attributes, and to assign them to a particular material group.
Use: You can use material groups to:
• Restrict the scope of analyses
• Search specifically for material master records via search helps

Purchasing Group
Key for a buyer or a group of buyers, who is/are responsible for certain purchasing activities
Use
• 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.

Purchasing Value Key
Key defining the reminder days and tolerance limits valid, as well as the shipping instructions and order acknowledgment requirement of the material for Purchasing.
Procedure: If you have chosen a purchasing value key, the system enters the values defined in Customizing (for Purchasing) in the fields.

Batch Batches (LO-BM)
A subset of the total quantity of a material in stock, managed separately from other subsets of the same material.
Example: Different production lots (such as paints, dyes, wallpapers, and pharmaceutical products), delivery lots, quality grades of a material.
Batch management requirement indicator, Specifies whether the material is managed in batches.
Use:
This indicator can be set in the material master record manually or, if batches are valuated individually, it is set automatically for the plants concerned, in which case it cannot be changed.
The indicator cannot be changed if stocks exist in either the current period or in the previous period. The reason for checking the previous period is because stocks can be posted to this period when goods movements are entered.

THIRD - PARTY PROCESSING:

noreply@blogger.com (RAJ) — Sun, 29 Aug 2010 08:24:00 +0000

THIRD - PARTY PROCESSING:

In third party processing, your company passes on a sales order to an external vendor who sends the goods directly to the customer. The sales order is not processed by your company, but by the vendor. Third-party items can be entered in purchase requisitions, purchase orders, and sales orders. Third party processing is integrated with Sales and Distribution. If the sales order contains third-party items, the system creates a purchase requisition from the order.

Steps:
1. Create MMR with sales views and maintain Division, Distribution channel, sales org. item category group and general item category group – BANS (Third party item) & Account group Sold to party
2. Create Customer master record T Code XD01, XD02, XD03
3. Create sales order T Code VA01, VA02, VA03 (PR generated automatically)
4. PO - T Code ME21N
5. GR – T Code MIGO
6. IR – T Code MIRO
7. Sales Billing / Billing Document T Code VF01, VF02, VF03

SPECIAL STOCKS & SPECIAL PROCUREMENT TYPES

noreply@blogger.com (RAJ) — Sun, 29 Aug 2010 08:22:00 +0000

Special Stocks are those stocks which are not belongs to our company code. These are not placed in our storage locations & no physical inventory is performed and treated as special stocks for the reason of ownership.

Different types are of Special Stocks are as follows

1. Subcontracting
2. Consignment
3. Pipeline
4. Stock transfer
5. Third party
6. Returnable transport packaging
7. Sales order stock
8. Project stock

SUBCONTRACTING:

In subcontracting process we create subcontracting PO to supply or issue subcomponents to vendor in order to get final product. The price maintained in subcontracting PO is a service charge paid to vendor.

Steps to perform subcontracting:

1. Create subcontracting inforecord (Optional)
2. Create subcontracting PO with item category L,
                    There are to ways to supply subcomponents to vendor
                           • Manually maintain the subcomponents in the subcontracting PO though explode BOM
                           • Through BOM (Bill of material) T Code CS01, CS02 & CS03
3. Create Transfer Posting with Movement Type 541 to issue the subcomponents to the vendor
4. Goods Reciept
5. Invoice Reciept

Path: ME21N --->  Enter Item Category L -->, Material (End Product), PO Quantity, Delivery Date, Net Price, Plant --> Click on Item Details --> Tab Material Data -- >Components, select Explode BOM --> Click on Components button --> Enter the subcomponents --> Go back & Save.

Create Transfer Posting with movement type 541 & T Code MB1B
GR: MIGO
IR: MIRO

CONSIGNMENT: - (No Concept of Invoice)

In consignment process we will not create Purchasing document for the vendor, vendor himself send the material to our plant, though the material is available to our plant, the responsibility & ownership of the material is of vendor. Aliability only arises when the material withdrawal (Consumption) is posted in the system from consignment stock.

Steps:
1. Create Consignment info record (mandatory)
2. Create Consignment purchase order with item category ‘K’ & maintain Info record number
3. Create GR Movement type ‘101K’
4. Create GI Movement Type ‘201K’
5. Consignment settlement T Code MRKO

Path : -->ME11 --> In info record --> Purchasing Org Data 1 views of info record enter the tax code and save it

--> Create Consignment Purchase Order ME21N (Price option is grayed out with price zero)
--> Create GR with movement type 101K
--> Create Goods Issue (GI) T Code MB1A & Movement Type 201K Enter Cost center vendor
--> Consignment Settlement T Code MRKO Click Activate Consignment Activate Settle Execute
--> Display the Document Number i.e. Invoice receipt T Code FB03

PIPELINE PROCESS: (No Concept of Invoice)

In pipeline handling your company does not need to order or store the material concerned. It is ready available to you as and when required via pipeline (e.g. oil or water), or some other type of cable (e.g. electricity). Consumption of the material is settled with the vendor on a regular basis.

Steps:
1. Create a Material master record with material type PIPE
2. Create Pipeline info record
3. Create GI with movement type 201P
4. Pipeline settlement T Code MRKO

RETURNABLE TRANSPORT PACKAGING (RTP):

When company orders goods from a vendor, the goods are delivered with returnable transport packaging (pallets, containers) that belongs to the vendor and is stored on our premises until you return it to the vendor.

Steps:
1. Create Material master record with material type LEIH
2. Create PO
3. Create GR by maintaining RTP material by selecting the option transport equipments with movement type 501M.
4. IR

STOCK TRANSFER:

In stock transfer processing, goods are procured and supplied within a company. One plant orders the goods internally to another plant (receiving plant/issuing plant). The goods are procured with a special type of purchase order the stock transport order.

Steps:
1. Create a Material master in both supplying and receiving plant
2. Create stock transport order (STO) with item category ‘U’
3. Create transfer posting with movement type 351 & T Code MB1B (Go to MMBE stock overview, the stock will decrease in supplying plant and it will not update stock of receiving plant, it will be under stock in transit)
4. Create GR stock will update in receiving plant

This scenario is under one company code between two plants.

Hello Friends

noreply@blogger.com (RAJ) — Thu, 01 Apr 2010 05:33:00 +0000

Hi Friends I am a SAP MM Funtional Consltant in India's Largest Organization in pvt. sector..........
Here i am Creating this blog for you all........
Here you can find SAP MM (Materail Management) Related stuffs like Study Materials, Customizing guide for different topics, Solution for various suport issues or you can put your quires so that i can help you out.
Best wishes for you all.......

EXTERNAL SERVICE MASTER

noreply@blogger.com (RAJ) — Thu, 24 Sep 2009 09:25:00 +0000

EXTERNAL SERVICE MASTER {ESM}
We procure the different type of services from vendors they are:-
􀂾 Hardware & software services
􀂾 Construction & transportation services
􀂾 Machinery services
􀂾 Annual maintenance services
􀂾 Present to and breakdown service. Etc.
Service Procurement Cycle: -
􀂾 Requirement identification
􀂾 Source determination
􀂾 Source selection
􀂾 Service master
􀂾 Service PO
􀂾 Service entry sheet acceptance
􀂾 Invoice with respect to service entry sheet

Steps to perform services: -
1. Create service master (AC03)
2. Create Service PO (ME21N), with A/C Assignment category ‘K’ & Item Category ‘D’.
3. Create service entry sheet (ML81N)
4. Invoice with respect to Service Entry sheet.
Customize settings
(For service category, Number Ranges & organization status for service category)
SPRO 􀃆 IMG 􀃆 MM 􀃆 ESM 􀃆 Service Master
􀂾 Define organization Status for service Categories
􀂾 Define Service Category
􀂾 Define Number Ranges
Define organization Status for service Categories
• Click on New Entries
• Org service Category
• BDS (Basic data service is stored in service master record under this service category)
• CNST 􀃆 Controlling Status
• PUST 􀃆 Purchasing data Status
• SDST 􀃆 Sales & Distributed Status
• Org status description service category 􀃆 Press Enter & Save

Define Service Category
• Same path as above
• Select Standard
• Click on Copy as
• A/C reference 􀃆 always takes as 0006
• Enter & Save

Define Number Ranges
Click on groups 􀃆 Groups 􀃆 Insert 􀃆 select / enter Number Ranges
Select the service category
Click on Element
Select Group & Click on Element /Group
Save
Create Service Master: - (AC03)
Click on Create New Services
Service Number (any number) Service Category
Basic unit of measure (Hours ‘H’)
Enter
Basic Data 􀃆 Master / Service Group 􀃆 007
Valuation class 􀃆 3200 􀃆 Enter 􀃆 Save
To See the Service list 􀃆 AC06
Create Service PO (ME21N)
A/C assignment category ‘K’, Item Category ‘D’
Enter the Short text, Quantity, Delivery date, Net Price, Material group, Plant, Storage Location
Enter service number in Service Tab (Item Details), quantity price, Enter
Account Assignment 􀃆 G/L Account Number e.g.400000
Cost Center e.g. 9999
Press Enter & Save
Create Service Entry Sheet: - ML81N
Select other purchase order (enter PO number) 􀃆 Enter 􀃆 Click on Create􀃆 Enter Short Text 􀃆 Enter 􀃆 Service Number 􀃆 Enter –Click on Flag button 􀃆 Save
Take Service entry Sheet Number
Go to Invoice MIRO 􀃆 Enter company code 􀃆 Select Service Sheet Option 􀃆 Enter Service Entry Sheet Number 􀃆 save it.

PURCHASE ORDER

noreply@blogger.com (RAJ) — Thu, 24 Sep 2009 09:05:00 +0000

PURCHASE ORDER
PO is an external document created for the procurement of materials and services from vendor. The document of PO is also divided into 4 parts as PR: -
1. Document Overview
2. Header (Delivery/Invoice, Conditions, Address, Partners, Org. data, status)
3. Item Overview (A/C assign cat, Item Category, Material, Plant, Del date, SL)
4. Item Details (Material data, Confirmations, condition control, delivery, delivery Schedule, Quantities/weights, invoice)
A procurement type is defined for each of the document items. The following procurement types exist:
􀂃 Standard
􀂃 Subcontracting
􀂃 Consignment
􀂃 Stock transfer
􀂃 External service
• There are different ways to create PO: -
1. Directly through transaction code ME21N
2. With reference to PR
3. With reference to RFQ
4. With reference to info records.
5. With reference to Contracts
6. With reference to Cost Centre, G/L Account (cost element) for consumable items or not stock items with account assignment category ‘K’ (K= cost centre). (For non stock and consumables)

PURCHASE REQUISITION T CODE : ME51 or ME51N

noreply@blogger.com (RAJ) — Thu, 24 Sep 2009 08:57:00 +0000

Purchasing Requisition: -
It is a request or instruction from particular department (Cost Centre) to purchasing department to procure certain quantity of material and services. It is only one internal document in SAP-MM.
Purchasing Requisition document is divided into four parts: -
• Document Overview
• Header
• Item Overview
• Item Details
Document Overview: -
It displays the list of purchasing documents, which are created previously according to our requirement.
Header: -
Any text message or information is maintained
Item Overview: -
In this we enter material, plant, delivery date, quantity, storage location, purchasing group, A/C assignment category, Item category etc.
Item Details: -
It displays the detailed information about item overview (like Master data, valuation, source of supply, contact person, delivery address status etc)

SAP IMPLEMENTATION PROCESS / End to End Inplementation of SAP

noreply@blogger.com (RAJ) — Thu, 17 Sep 2009 05:56:00 +0000

First we have to prepare documentation about the client business (like turnover,
vendors, customers, payments, materials, production, marketing etc.)
The implementer company made two teams (1.) Steering team. (2.) Steering
community
Steering team (SAP functional consultants) prepares a detailed
documentation about the client with the help of core team (client company team)
& this study is known as Feasibility Study. After that the steering team handed
over this documentation to Steering community (Project manager, Sr. software
engineer, and other higher authorities).
Steering community prepares the BBP (Business Blue Print). BBP
Prepares in MS-Word

􀁸􀀃 ASAP: - Accelerated System Application Product in Data Processing.
􀁸􀀃 Business Process: - ASAP Methodology
1. Project Preparation
2. BBP (Business Blue Print)
3. Realization
4. Final Preparation
5. Go live & Support

􀁸􀀃 Project Preparation: -
It consists of identifying team members & development strategy as
how to go.
AS – IS (Existing Process followed, requirements)
TO – BE (Requirement analysis and best process recommended)
Difference between (AS – IS) & (TO - BE) is called GAP Analysis.

􀁸􀀃 Business Blue Print (BPP): -
It is a legal documentation between client & the company
(implementer / service provider). We have to understand the current business
process of client & analyzing the business & prepare documentation. It is a
detailed documentation for the client.

􀁸􀀃 Realization: -
This Phase is used to Implement or migrate the entire business of
client from Non-SAP environment to SAP environment

􀁸􀀃 Final Preparation: -
This phase is used for testing & end user training. After successfully
completion of this phase client is ready to run business in SAP R/3.

􀁸􀀃 Go live & Support: -
In this phase we deliver the project end date & end user training at
client site.

SAP MM Interview Question & Answers

noreply@blogger.com (RAJ) — Tue, 25 Aug 2009 07:36:00 +0000

What are the steps in automatic account assignment config?
Discribe the batch management process?
What are the documents generated in the MIGO 101 movement type? What are the accounts hit?
What is the difference between the stock transfer between, two plants belonging to same company code and those belonging to different ?
What are the tools available for data migration in SAP?
What is meant by consignment stock?
What is the difference between BSX and BSA?
How is a shelf-life item managed in SAP? What is the full cycle?
How does the PO pick up the pricing schema?
What is meant by a credit memo?
What are the settings required for quota arrangement?
What is RTP?
What is GR blocked stock? When it can be used?
What is meant by a release strategy?
What are the differences between release procedure with classification and release procedure without classification? When are they used?
How we will differentiate a STO and a standard purchase order with a glance ?
How are free items managed in a PO?
What are the types of special stocks available?
What are the types of tables in SAP?
Explain the concept of split valuation and when can it be used? What are the settings required?

If you people find the above questionnaire than let me know, I’ll post some more questions with answer....

ITEM CATEGORY (I) / ACCOUNT ASSIGNMENT CATEGORY (A)

noreply@blogger.com (RAJ) — Sat, 10 Jan 2009 05:59:00 +0000

ITEM CATEGORY (I)
In terms of MM – PUR: -An identifier indicating the characteristics of an item.
The item category determines whether the following are mandatory or permitted for an item:
Material Number, Account assignment, Inventory Management in the SAP system, Goods Receipt & Invoice Receipt
In terms Advertising Management (IS-M-AM):
Characteristics that defines sales relevant features of document items including planning, pricing, production, billing etc
Item category plans a vital role in MM. It is a key, which determines how the procurement of the material & services is to be controlled for the particular item.
Depending upon the item categories the scenario of purchasing documents varies / changes.
Document types of item category: -
1. Standard
2. L – Sub contracting
3. K – Consignment
4. B – Limit
5. U – Stock Transfer
6. D – Services
7. T – Text
8. S – Third Party

Account Assignment Category (A): -
It determines which A/C Assignment data is necessary or required for the particular item
Different Types: -
1. 1 - Third Party
2. P - Projects
3. K – Cost Center
4. A - Asset
5. C - Sales order
6. U - Unknown etc.

Automatic PURCHASE ORDER (PO) / How Automatic PO raised

noreply@blogger.com (RAJ) — Sat, 10 Jan 2009 05:49:00 +0000

How Automatic PO raised ??

At fixed time say 12:30 AM, automatic scheduler runs and checks whether the stock is less than or equal to the replenishment point, If stock is less than or equal to Repli. Point than PR raised automatically to Purchasing Deptt
• Activate the option automatic PO in purchasing view in material master record.
• Activate the option automatic PO in purchasing data view in vendor master record.
• Maintain Source List & select fixed vendor
• PR crated automatically
• Automatic creation of PO from PR – ME59
Enter the Purchasing group, purchasing organization, Vendor, Plant, and Purchasing Requisition Document Number 􀃆 Execute

Physical Inventory and Inventory Management

noreply@blogger.com (RAJ) — Sat, 13 Dec 2008 08:32:00 +0000

Physical inventory Process: -
1. Create Physical inventory document
T Code MI01 – Create single inventory document
T Code MI31 – Create multiple physical inventory documents
I. Enter the desired fields i.e. material, material type, site, storage location, and Maximum number items / Documents – 100, etc 􀃆 Press Enter
II. Click on Process Session
III. Select the line items and click on the process
IV. System displays a dialog box, select Background and click on process. Inventory document is created
2. Print Inventory Document and handed over to responsible person say Manager
3. Enter Physical Inventory count
T Code MI04
i. Enter the physical inventory document number Fiscal year, count date 􀃆 Press enter
ii. Enter the Material Quantity and click on post
4. Listing of difference
T Code MI20
Enter the physical inventory document number and execute, system displays a screen, wherein we will be able to view the differences
5. Post the differences
T Code MI07 & Mov Type 701 & 702
Enter the physical inventory document number, year, posting date, enter the difference and post

INVENTORY MANAGEMENT
Maintaining stock by value or by quantity is called inventory. The total inventory management deals with the goods movement of the material.
Goods movement: -
It is a process in which transaction resulting change in stocks. It is further sub-divided into three categories
1. Goods Receipt (GR)
2. Goods Issue (GI)
3. Transfer Posting (TP)

Goods Receipt (GR): - It is a goods movement in which receipt of goods is posted for vendor or for production. A GR posted in the system will leads to increase in stock. No Concept of Price or value
Goods Issue (GI): - It is goods movement in which material withdrawal is posted for consumption or for customer. A GI posted in system will leads to decrease in stock.
Stock Transfer (ST): - It is method of removal of material from one location and transferring it to another location. This process is performed between two plants and two storage locations.
Transfer Posting (TP): - It is a general term of stock transfer that changes the stock type or stock categories. The difference between transfer posting and stock transfer is: -
TP is logical stock transfer and ST is a physical stock transfer.
Movement Type: - It is a three-digit code, which plays a role of important control function in inventory management. It acts as a central role in automatic account determination. It determines which stock account or consumption account is updated in financial accounting.
Reservation: - It stores requisition created from particular cost center to particular department for issuing the material reservation posted in the system. It leads to decrease in stock.
Stock Types: - The different stock types are
1. Unrestricted use stock
2. Quality inspection stock
3. Blocked stock
4. Warehouse stock

Transaction code: -
1. To Create GR - MIGO
2. To Create GI - MB1A
3. For Transfer Posting - MB1B
4. To display Material/GR document – MB03
5. To create reservations - MB21, MB22, MB23
6. To See Stock Overview - MMBE
7. To enter Other GR - MB1C

When GR is posted in the system
1. Material document is created - MB03
2. Accounting Document is generated - MB03
3. MMR updated - MM02, MM03
4. PO history updated - ME23N

Movement Type’s
Movement Types under GR - 101, 331,333,335,501,503,505,551,553,555,
561,351 (For all Mov Type’s there is a reversal e.g. 101 has 102. Note: No reversal for 121)
Movement Type’s under GI - 201, 331,333,335,551,553,555
Transfer Posting: It is performed in three ways
1. TP B/W Plant to Plant
2. TP B/W Storage Location to Storage Location
3. TP B/W Stock to Stock
Movement Types under TP B/W Plant to Plant
301 - 1 step
303 & 305 - 2 step
Movement Type under TP B/W Storage location to Storage Location
311 - 1 step
313 & 315 - 2 step
Movement Type under TP B/W stock to stock
321, 323, 325, 343,349
To Cancel the GR Movement type 102
Return delivery to vendor movement type 122 & T Code MIGO

Transfer Posting Stock to Stock
From Blocked stock to Quality Inspection
T Code MB1B & Movement Type 349
From Blocked stock to Unrestricted Stock
T Code MB1B & Movement Type 343
From Quality Inspection to Unrestricted Stock
T Code MB1B & Movement Type 321

Transfer Posting from Plant to Plant
For One Step: Movement Type 301
For Two Steps: Movement Type 303 & 305
After posting stock will display in Stock in Transit (Plant)
To receive material by receiving Plant Movement Type 305

Transfer Posting B/W Storage Location to Storage Location
Under One Plant B/W two Storage Location’s Movement Type 311
Back to Parent storage Location Movement Type 313 (It Show stock in transfer) use Movement type 315 at Parent storage location
To create Goods Issue (GI) T Code MB1A & Movement Type 201
To Create Reservations T Code MB21, MB22 & MB23
Creation of GI w.r.t Reservations
T Code MB1A & Movement Type 201
Click on Reservation, Enter Reservation Number 􀃆 Click on Adopt + Details
GR w.r.t Reservations: T Code MIGO & Select as Reservation instead of GR
GR without PO Movement type 501 & T Code MB1C, Select others instead of Purchase order, Enter Material, Quantity, Plant, Storage Location 􀃆 Press Enter
Partner Option will be visible (Vendor) 􀃆 Save it
Invoice: - Invoice is a document, which is issued to a buyer (Company) from the supplier (vendor) for the payment. The following information is maintained in invoice
Invoice date, Posting date, Invoice ref number, tax amount, amount, tax code, terms of payments, vendor address, banking accounting information etc

When invoice document is posted in the system
• Invoice document created
• Accounting document is generated (MIR4)
• PO history updated (ME23N)
• FI document created (FB03)

Download free E-Books of SAP MM

noreply@blogger.com (RAJ) — Tue, 18 Nov 2008 11:12:00 +0000

Download Free E-Books of SAP MM by www.sap-img.com
1. E Book For setting Material Master Field Attributes

Free Download E Books for SAP (for every module)

noreply@blogger.com (RAJ) — Mon, 17 Nov 2008 16:53:00 +0000

Free Download E Books for SAP (for every module)

Down load E Book SAP BASIS Steps for SAP Kernel Update In Windows
Download SAP BASIS- Steps to Configure SAP Help Library
Download Ebook SAP HR PA Infotypes
E Book for SAP FI (Download: Deleting No.range of Particular Company )
E Book for the Flow of Production Planning
E Books for Variant Configuration - Sales and Distribution
E Book for Configuring the SAP Material Master Material Type
E Book For ABAP MM, SD, FI, PS, PP, PM, HR, Tables

noreply@blogger.com (RAJ) — Fri, 14 Nov 2008 16:15:00 +0000

RELEASE PROCEDURE / Release strategy
The main function of Release procedure is to determine the approval process
or the release process for the procurement of material & services, rather than
relying for manual signatures. The release procedure contains release strategy.
Release Strategy (RS)
A plan defining the release codes with which a purchase requisition item, a
complete purchase requisition, or a complete external purchasing document must
be released (that is, approved) and the sequence in which release is to be effected
using these codes. It is a unique set of conditions, sequence and level of release.
It is a 2 digit code e.g. S1, S2, S3etc.
The Release Strategy contains the following: -
• Release Group
• Release Codes
• Release Indicators
• Release Prerequisite
Release Group: -
It is a 2-digit code, which is assigned with a class (Class contains group of
characteristics). It contains one or more release strategies.
Release Codes: -
It is a 2digit code, which identifies the department or responsible person for
the approval process & release process.
E.g. AA - Manager
BB - Sr. Manager
CC - Vice President
DD - Managing Director
Release Indicator: -
It is a Code that represents the release status. If the proper approval
process is performed that the release Strategy has to be release if it is not
performed than the Release Strategy is blocked
R – Release
B – Blocked
Release Conditions: -
It determines the type of the release strategy
For e.g.\
• If the price ranges from 1 to 1000, It is approved by AA, BB, and CC
• If the ranges from1001 to 1lac then it is approved by AA, BB, CC, and DD
- 80 -
Release Prerequisite
It will informs the system which RS has to be take place in the PO CEKKO is
a communication structure where it displays the field names & field lengths to
create characteristics i.e. we maintain characteristics in customizing by selecting
the field names from this communication structure for all external documents.
CEBAN is used for the purchasing requisition.
Characteristics: -
1. Net value of PO --- GNETW (GSWRT for PR)
2. Plant --- WERKS
3. Purchasing organization -- EKORG
4. Purchasing Group --- EKGRP
5.Material group –MATKL

CUSTOMIZE SETTINGS
SPRO-->IMG--> MM--> Purchasing-->PO--> Release Procedure for PO
1. Edit Characteristics T Code CT04
2. Edit Class T Code CL02
3. Define Release Procedure for PO
4. Check Release Strategy
Edit Characteristics: -
Characteristics - e.g. NET VALUE OF VALUE
Click or Create Button
Under Basic Data
Description - Value for PO
Status - Release
Data Type - Currency Format
No. Of Characters - 15
Currency - EUR
Activate multiple values & Internal Values Allowed
Additional Data
Table name - CEKKO
Field Name - GNETW
Values
Activate Additional Values
Save the document
Create another Characteristic for Plant: -
Plant, date, Create – Description, Status
Data Type Characteristic Format
Number of Characteristics 4
Activate Multiple Values
Additional data:-
Table Name: - CEKKO
Field Name: - WERKS
Values
Activate Additional Values

For Purchasing Organization Name: - EKORG
For purchasing Group EKGRP
Edit Class
Class - SAPMM
Class Type - 032 Release Strategies
Click on Create button
Basic Data
Description - Class for PO
Status - Released
Valid From _____ Valid to _____
Click on Characteristic
Characteristic
Enter all the Characteristics Created & Save it
Define Release Procedure for PO:-
• Release Group
• Release Codes
• Release Indicators
• Release Strategies
• Workflow
Release Group: - New Entries, Release Group, Class, and Description
Press Enter & Save
Release Code: - New Entries
Group Codes Description
99 AA Manager
99 BB Sr. Manager
99 CC Vice President
99 DD Managing Director
Press Enter & Save
Release Indicator: - (B – Blocked, R - Release)
New Entries,
Release Indicators Description
B Blocked
R Released
Release Strategies: -
New Entries
Release Group 99
Release Strategy S1
Release Codes AA, BB, CC, and DD
Click on Release Prerequisites

Release Status: -

Continue
Classification
Enter the Value (Same Price)
Plant (9999)
Go Back & Save it
Release Simulation: - Simulate Release
Create a PO: -
There are two ways to release the PO
Individual releaseME28
Collective release ME29N
How to delete procedure?
Delete Release GP
Create Release RG
Delete R Strategies
Delete R Code
Delete R Group

CIN - Country India Version ~ Vol 2

noreply@blogger.com (RAJ) — Fri, 26 Sep 2008 08:56:00 +0000

Continue.... Volume 1
Creating Excise Invoices
Use
This is the procedure that you follow to create an excise invoice for the less common types of goods movement.
Procedure
1. From the SAP Easy Access screen, choose Indirect Taxes ® Sales/Outbound Movements ® Excise Invoice ® For Other Movements ® Create/Change/Display ® .
2. On the selection screen, enter data as required, including:
(i)Reference
group box
Specify which document you want to create the excise invoice for and which excise group it is for.
(ii)Details
group box
Specify the vendor or customer that you are sending the invoice to.
3. Choose .
If you entered an internal document number, the system copies the item details from it.
4. Choose .
5. Enter line items for each of the materials to be included in the excise invoice. For each item, enter the following data:
(i)Material
(ii)Quantity
(iii)Unit of measure
(iv)Base value
(v)Excise duty
6. To pick the rate and amount from a specific excise invoice, choose Get excise invoice.
7. Save the excise invoice.
If you are using the one-step procedure, the system creates and posts an excise invoice. Otherwise, the system saves the information but does not make any postings: it now has to be verified.

Verifying and Posting Excise Invoices
Use
You follow this procedure to verify that the information in an excise invoice that has already been created, and to post it once you are satisfied.
Procedure
From the SAP Easy Access screen, choose Indirect Taxes ® Sales/Outbound Movements ® Excise Invoice ® For Other Movements ® Posting.
1. Enter the internal document number of the excise invoice.
2. Choose Release to accounting.
The system displays the excise invoice. The excise duty that is to be posted is displayed at the foot of the screen, which you can change if necessary.
3. To access the balance utilization, choose .
4. To display the balance available on the CENVAT accounts, choose Account balances.
5. Save the excise invoice.
The system generates the accounting documents.
6. To print the excise invoice, choose .

Making a Transfer Posting
Use
In this procedure, you make a transfer posting for the goods ordered by another plant. For more information about this function, see Entering the Removal from Storage at the Issuing Plant.
Procedure
1. From the SAP Easy Access screen, choose Logistics ® Materials Management ® Inventory Management ® Goods Movement ® Transfer Posting.
2. Choose Movement type ® Transfer posting ® Plant to plant ® To stock in transit.
3. Enter the number of the issuing plant and storage location.
4. Choose To purchase order.
5. In the dialog box, enter the number of the stock transport order that the receiving plant created and choose
6. Check the data.
7. Save the transfer posting.
Transaction Codes for India
Transaction Action
J1I2 Prepare a sales tax register
J1I3 Create outgoing excise invoices in batches
J1I5
Update the RG 1 and Part I registers
J1I8
Post the challan used to remit TDS
J1IC194C
Create annual return under section 194 C (Classic TDS)
J1IC194D
Create annual return under section 194 D (Classic TDS)
J1IC194I
Create annual return under section 194 I (Classic TDS)
J1IC194J
Create annual return under section 194 J (Classic TDS)
J1IEX
Incoming Excise Invoices (central transaction)
J1IEX_C
Capture an incoming excise invoice (excise clerk)
J1IEX_P
Post an incoming excise invoice (excise supervisor)
J1INBANK
Post a bank challan
J1INCANC
Cancel a vendor withholding tax certificate
J1INCERT
Print a vendor withholding tax certificate
J1INCHLN
Create a remittance challan
J1INCUST
Post a customer withholding tax certificate
J1INHC
Withholding Tax Migration Health Check Program
J1INMIG
Withholding Tax Data Migration Tool
JI1NCHLC
Create a remittance challan for customers
J1INCC
Print customer withholding tax certificates
J1INMIS
Withholding Tax Information System
JI1NAR
Prepare annual returns (Extended Withholding Tax)
J1IF01
Create a subcontracting challan
J1IF11
Change a subcontracting challan
J1IF12
Display a subcontracting challan
J1IF13
Complete, reverse, or recredit a subcontracting challan
J1IFQ
Reconcile quantities for subcontracting challans
J1IFR
List subcontracting challans
J1IH
Make a CENVAT adjustment posting
J1IIN
Create an outgoing excise invoice
J1IJ
Assign excise invoices to a delivery for sales from depots
J1INJV
Adjust withholding tax Item
J1INREP
Reprint a vendor withholding tax certificate
J1INREV
Reverse a remittance challan
J1INPR
Calculate withholding tax on clearing accounts
J1INUT
Clear withholding tax on clearing accounts
J1IR
Download register data
J1IS
Process an excise invoice (outgoing) for other movements
J1IU
Process exemption forms
J1IW
Verify and post an incoming excise invoice
J1IX
Create an incoming excise invoice (without reference to purchase order)
J2I8
Transfer excise duty to CENVAT account
J2ID
Archive tax deducted at source (TDS) documents
J2IE
Locate tax deducted at source documents in archive
J2IU
Remit excise duty fortnightly
J2I9
Monthly CENVAT return
J1IG
Excise invoice entry at depot
J1IGA
Create additional excise entry at depot
J2I5
Extract data for excise registers
J2I6
Print excise registers

Sales from Factories
Purpose
This process describes how the SAP System handles the sales process, allowing for the creation of excise invoices, which you have to send with each delivery that is subject to excise duty. There are two scenarios, depending on whether you want to send the commercial invoice along with the delivery or at a later date.
Prerequisites
In order for the system to be able to copy the information from document to document, you must have set up the copying control procedures in Customizing for Sales and Distribution (SD). This differs according to when you want to send the commercial invoice:
1. Along with the delivery
In this case, the document flow would be OR (standard sales order type) – LF (standard delivery type) – F2 (invoice).
2. At a later date
The document flow would be OR – JF (delivery type, a copy of LF) – JEX (pro forma billing document type, a copy of document type F8) – F2.
In addition, you must also have maintained the settings in the Country Version India (CIN) Implementation Guide (IMG), by choosing Global Settings ® Assign Excise Invoice Billing Type to Delivery Type.
A sample pricing procedure, JFACT, is provided for this sales procedure.
Process Flow
1. The sales clerk creates a sales order, following the
(i)standard procedure.
There are special procedures for:
(i)Customers in possession of exemption forms
(ii)Exports
2. The shipping clerk creates a delivery, again, following the
standard procedure.
On the initial screen, you set the appropriate delivery type (see above).
3. In the warehouse, the storeperson issues the goods.
The system only allows users to create a pro forma excise invoice if the delivery is complete, so as to prevent them from creating multiple pro forma excise invoices.
4. What you do at this stage depends on whether you want to send the commercial invoice along with the delivery or whether you want to invoice the customer later.
(A) If the invoice is to be shipped with delivery, the shipping clerk:
(i)Creates an invoice, following the standard procedure.
(ii)Creates an excise invoice from the invoice
(B) If the invoice is to be sent on at a later date, the shipping clerk:
(i)Creates the pro forma excise invoice
The pro forma excise invoice is only required for technical purposes and is not sent to the customer. The system does not make any accounting postings at this stage.
(ii)Creates
an excise invoice from the pro forma excise invoice
In both these cases, the system creates an accounting document to post the excise duty to a clearing account.
Instead of creating excise invoices manually, you can also have the system create them automatically. Alternatively, you can create them in batches.
5. You ship the goods.
6. When the time comes to invoice the customer, you create the invoice, following the standard procedure.
Irrespective of the number of excise invoices that you have issued, you can combine the delivery items in a single invoice (if the standard requirements are met).

Sales from Depots
Purpose
You may sell finished goods directly from the place of manufacture, as described under Sales from Factories, or you may first ship them to a separate location for storage (a depot), from where you will sell them. The second procedure is described here.
Sales from depots are handled differently from sales from factories because of excise law: Excise duty is payable when you send the goods from the factory to the depot, but it is not levied again when you sell the goods.
Sometimes when you make a final sale of goods from a depot, price escalations could have happened with retrospective effect. In such scenarios you need to pay the extra excise duty at the factory using an A Certificate. You need to register the A certificate details in the RG 23D register and the excise recovered from the customer.
Prerequisites
You have customized:
1. Stock transport processing, in Customizing for Materials Management (MM), by choosing Purchasing ® Purchase Order ® Set Up Stock Transport Order
2. The copying control for copying stock transport order NL to excise invoice JEX
You make this setting in the Country Version India (CIN) Implementation Guide (IMG), by choosing Sales and Distribution ® Assign Excise Invoice Billing Type to Delivery Type.
3. The item category NLN (standard transport order) so that it is relevant for billing
You do this in the standard IMG, in Customizing for Sales and Distribution (SD), by choosing Sales ® Sales Documents ® Sales Document Item.
Process Flow
1. You create the sales order, following the
standard procedure.
The standard pricing procedure for depot sales is JDEPOT.
2. You create the delivery, again, following the
standard procedure.
3. You
assign excise invoices to the delivery or material document.
4. You
verify that you have selected the correct excise invoices and post them. Alternatively, if you have selected the wrong excise invoices, you can cancel the assignment.
5. You create the invoice, following the standard procedure.

CIN - Country India Version ~ Volume 1

noreply@blogger.com (RAJ) — Fri, 26 Sep 2008 08:33:00 +0000

Purpose
Country Version India (CIN) contains a number of enhancements to standard Sales and Distribution (SD) functions that allow you to handle local requirements, in particular excise duty.
Features
In Country Version India, (CIN), this component handles sales processes as found in India. In addition to the generic functions, it allows you to:
Handle CENVAT in your sales processes
The system calculates excise on your sales and creates excise invoices as required and makes the appropriate postings to your CENVAT accounts.
It covers sales from factories, sales from depots, and offers functions for other types of goods movements; it also covers sales to export-oriented units and export sales.
Record concessional and exemption forms sent to you by your customers
Make adjustment postings to your CENVAT accounts
Excise Invoice (Outgoing)
Definition
The document that acts as the proof of payment of excise duty and is required for the customer to take CENVAT credit on the item
Use
In the SAP System, there are three different procedures for creating excise invoices
Sales direct from the factory
This procedure is for when you sell manufactured goods straight from the factory at which they were produced, in which case you levy excise duty when the goods leave the factory on their way to the customer.
If, when you send the goods to the customer, you enclose the commercial invoice, you create the excise invoice with reference to the commercial invoice. If you want to send the commercial invoice after you have dispatched the goods, however, you create the excise invoice with reference to a pro forma commercial invoice. For more information about these procedures, see Sales from Factories.
As well as creating excise invoices individually, you can also create them in batches (see Creation of Excise Invoices in Batches).

Sales from depots
A depot is a site at which the goods are stored, away from the factory at which they were produced. In this procedure, you have to levy the excise duty when you transfer the goods from the factory to the depot, and then make sure this is passed on to the customer when it makes a purchase. For more information, see Sales from Depots.
Sales (other goods movements)
Some other goods movements may also require you to create an excise invoice with reference to other documents. The SAP System offers separate functions for these purposes (see Excise Invoices (Outgoing) for Other Movements).

Structure
Numbering of Excise Invoices
Outgoing excise invoices have two numbers: an internal document number, which is assigned immediately you create an excise invoice; and an excise invoice number, which is not assigned until you have verified and posted it.
As far as the excise invoice number is concerned, you have to number your outgoing excise invoices in sequential order, starting each year on 1 April. You must notify the excise authority of the jurisdiction of the invoicing location. The serial number must be printed on each page of the excise invoice.
Each number range is governed by a series group. You must create at least one series group in order to be able to number the excise invoices. If you need more than one number range, you must create the corresponding number of series groups. You do so in the CIN Implementation Guide (IMG), by choosing Global Settings ® Series Groups.
Number of Line Items Per Excise Invoice
Some states allow you to include only a limited number of items for each page of an excise invoice (for example, if the excise invoices are to be printed on prenumbered forms). You can customize the system so that it prints the excise invoice accordingly, in the CIN IMG, by choosing Global Settings ® Excise Registration IDs.

Customer Master (Excise Data)
Definition
The part of the customer master record that contains information relating to Indian excise duty.
Use
In conjunction with other data, this data is used to calculate excise duty on various transactions.
To maintain the data, from the SAP Easy Access screen, choose Indirect Taxes ® Master Data ® Excise Rate Maintenance, and then select the following options described below.
Structure
The excise part of the customer master contains the following information:
Customer Excise Details
On this screen, you enter your customers' tax registration numbers, which are used for various forms of correspondence and reports:
1. Excise registration number (and the range, division, and collectorate in which this is located)
2. Central sales tax (CST) number
3. Local sales tax (LST) registration number
4. Permanent account number (PAN)
In order for the system to be able to calculate which rate of excise duty to apply on sales to the customer, you must also assign it a customer excise duty status (for more information about how this works, see Determination of Excise Duty Rates).
Excise Indicator for Plant and Customer
On this screen, you define the final excise duty indicator (for more information about how this works, see Determination of Excise Duty Rates).
Determination of Excise Duty
Use
When you execute a business transaction involving materials that are subject to excise duty, the system automatically calculates the duty for you.
Prerequisites
In order for the system to be able to determine which rate of excise duty to apply, you must have maintained all the data on the Excise Rate Maintenance screen, which you can access from the SAP Easy Access screen by choosing Indirect Taxes ® Master Data ® Excise Rate Maintenance.
You maintain the following types of data:
Plant master data
You assign each of your plants an excise duty indicator. You can use the same indicator for all the plants with the same excise status from a legal point of view, such as all those that are in an exempt zone.
See also the information about manufacturers that are only entitled to deduct a certain portion of the duty (see Partial CENVAT Credit).
Vendor master data
For each of your vendors with the same excise status from a legal perspective, you define an excise duty indicator. You must also specify the vendor type – for example, whether the vendor is a manufacturer, a depot, or a first-stage dealer. You must also stipulate if the vendor qualifies as a small-scale industry.
For each permutation of plant indicator and vendor indicator, you then create a final excise duty indicator.
Customer master data
Similarly, you assign the same excise duty indicator to each of your customers that share the same legal excise status.
Again, for each permutation of plant indicator and customer indicator, you then create a final excise duty indicator.
Material master data
Each material is assigned a chapter ID.
Excise tax rate
For every chapter ID and final excise duty indicator, you maintain the rate of excise duty.
If your business only qualifies for partial CENVAT credit, you must customize your system accordingly.
Activities
Let us consider an example to illustrate how the system determines which rate of excise duty to apply to a material. Assume you are posting a sale of ball bearings to a customer. The system automatically determines the rate of excise duty as follows:
Looks up the customer master data to see what status you have assigned the customer.
Let's assume you've assigned the customer status 3.
Looks up the plant master data to see what status you have assigned the plant.
Similarly, your plant has status 2.
The system looks up the table under Excise Indicator for Plant and Customer to see what the final excise duty indictor is for customer status 3 and plant status 2: It is 7.
The system determines the chapter ID of the ball bearing for the plant.
Let’s assume the chapter ID at plant for the ball bearings is 1000.01.
Finally, the system looks up the table under Excise Tax Rate to see what rate of duty applies to chapter ID 1000.01 under status 7.
Plant Master (Excise Data)
Definition
The part of the plant master record that contains information relating to Indian excise duty.
Use
In conjunction with other data, this data is used to calculate excise duty on various transactions.
To maintain the data, from the SAP Easy Access screen, choose Indirect Taxes ® Master Data ® Excise Rate Maintenance, and then select the following options described below.
Structure
The excise part of the plant master is divided into the following screens:
Excise Indicator for Plant
On this screen, you enter your plants' tax registration numbers, which are used for various forms of correspondence and reports:
1. Central sales tax (CST) number
2. Local sales tax (LST) registration number
3. Permanent account number (PAN)
In order for the system to be able to calculate which rate of excise duty to apply on purchases for this plant, you must also assign it a plant excise duty status (for more information about how this works, see Determination of Excise Duty Rates).
Excise Indicator for Plant and Vendor
On this screen, you define the final excise duty indicator (for more information about how this works, see Determination of Excise Duty Rates).
Excise Indicator for Plant and Customer
On this screen, you define the final excise duty indicator (for more information about how this works, see Determination of Excise Duty Rates).

Automatic Creation of Excise Invoices
Use
The SAP System can automatically create an outgoing excise invoice for you immediately you post a commercial invoice (or a pro forma invoice) for a customer sale. This function applies to excise invoices for sales from factories only.
Prerequisites
To activate this function, in the Country Version India (CIN) Implementation Guide (IMG), make the following settings:
1. Under Global Settings ® Excise Groups, select Create EI.
This activates the automatic creation function.
2. Under Sales and Distribution ® Utilization Determination.
Here, you specify which CENVAT accounts the system is to post the different types of excise duty to.
3. Under Sales and Distribution ® Excise Group–Series Group Determination.
Here, you specify which excise group and series group the excise invoices are to be created for.
Features
When you post an invoice, the system creates an excise invoice. All the information that it needs to create the excise invoice is provided either by the invoice or by the Customizing settings that you have made in Sales and Distribution. It also determines the excise invoice type automatically by means of a user exit.
Creating Excise Invoices for Stock Transfers
1. From the SAP Easy Access screen, choose Indirect Taxes ® Procurement ® Excise Invoice ® For Depot ® Create/Change/Display.
2. In the Material document field, enter the goods receipt number and choose .
The system displays the information from the goods receipt, for example, the sending plant, the excise registration, the range, the division, and the collectorate.
3. Choose Details.
The system copies the items from the goods receipt document. In the depot it is possible to have a separate excise invoice at line item level.
4. Enter the internal document number of the excise invoice sent by the factory.
5. Choose More documents to go the excise invoice details screen.
6. Enter the internal document number of the excise invoice from the factory.
The system copies the information to the line item (for example, the excise invoice number, the excise invoice date, the item number , the chapter ID, the excise invoice quantity, the amount of excise duty paid, the excise base value, and the serial number of the Part II register entry with which the excise was paid).
You can change the receipt quantity to match the actual quantity received at the depot, if necessary. The system automatically adjusts the excise accordingly.
7. Go back to the item details screen.
8. Save the excise invoice.
Creating Excise Invoices for Direct Purchases
1. From the SAP Easy Access screen, choose Indirect Taxes ® Procurement ® Excise Invoice ® For Depot ® Create/Change/Display.
2. In the Material document field, enter the goods receipt number and choose .
The system displays the information from the goods receipt, for example, the sending plant, the excise registration, the range, the division, and the collectorate.
You can also maintain the excise registration details for the ship-from party, as for with the vendor. The ship-from can be different from the vendor code. (The delivering plant can be maintained as a ship-from in the system. When a valid ship-from is entered, the excise registration details copied from the vendor will be overwritten by the ship-from excise registration details.)
The ship-from registration details displayed can also be overwritten manually.
The dealer's commercial invoice number can be stored in the vendor excise invoice number, as in this case the dealer himself will not have an excise invoice.
3. Choose Details.
The system copies the items from the goods receipt document. It also copies the vendor's excise invoice number and the serial numbers of the entries in the RG 23A, RG 23C, and personal ledger account (PLA) registers.
4. Enter the internal document number of the excise invoice sent by the factory.
5. Select an item and choose More documents to go the excise invoice details screen.
In the case of direct purchases, there will not be any excise invoice in the system, so leave the internal document field blank. The vendor's invoice will show the details of the excise invoices through which excise has been paid for the item that is being dispatched. You can enter these details here.
6. For each item, the chapter ID, excise base value, and excise duty amounts are defaulted from the purchase order. You can change them if there is any difference. Enter the excise amount paid and the receipt quantity. You also enter the Part II register serial numbers with which the excise duty was paid and the excise registration information from the original excise invoice.
7. Go back to the item details screen.
8. Save the excise invoice.
The system creates an entry in register RG 23D. You can change the excise invoice as long as it has not been used in any sales.
Assigning Excise Invoices to a Delivery
Use
You follow this procedure to specify which excise invoices are to be assigned to a delivery from a depot (or other material document).
You can also automate this procedure, using the batch selection program (J_1IJCHK), by making the appropriate Customizing settings in the Country Version India (CIN) Implementation Guide (IMG).
Procedure
1. From the SAP Easy Access screen, choose Indirect Taxes ® Sales/Outbound Movements ® Excise Invoice ® For Depot ® Create/Change/Display ® Delivery or Material Document ® RG 23D Selection.
2. Enter the delivery document number or the material number and choose .
3. Select the excise invoice you want.
4. Choose .
5. Choose Excise invoice.
A list of excise invoices appears. These are the excise invoices at the depot with a balance quantity.
The system also shows a list of the A certificates that can be used. You can pick up any of the A certificates, but they must be for the same excise invoice. You can only pick up an A certificate in its entirety. You cannot select part of an A certificate.
6. Select the excise invoices that are relevant to the delivery.
7. Specify what quantity to be used from each excise invoice.
The system recalculates the excise accordingly.
8. Go back to the item details screen.
9. Save the data.
Result
The system creates an entry in register RG 23D and generates the depot excise invoice numbers.
If you selected any A certificates, the system also generates additional entries in the RG 23D register. The system marks the original A certificates as updated, so that they cannot be used for any other removals.

Continue.... see Volume 2 (Next post)

PRICE DETERMINATION PROCESS or PRICING PROCEDURE

noreply@blogger.com (RAJ) — Thu, 25 Sep 2008 07:47:00 +0000

CONDITIONS OR PRICING PROCEDURE or PRICE DETERMINATION PROCESS
We deal with the Pricing Procedure for vendors.
PB00 Gross Price (info record, contract, scheduled Agreement)
PBXX Gross Price (PO)
FRA1 Freight
RA00 Discount on net
RA01 Discount on Gross
ZA00 Surcharge on net
SKT0 Surcharge / discount
ZPB0 Rebates
MWVS Input Tax
MWAS Output Tax
BASB Base Amount
RM0000 Calculation Schema or Pricing Procedure
(PB00 & PBXX)
RM0002 Calculation Schema or Pricing Procedure
(PB00)
PB00 --> AB00
Copy the Standard one and create new one (ours)
RM0000 contains all the condition types

Pricing Procedure (PP)

We define the pricing procedure to define condition supplement for the material price. The condition supplement specifies the discount, surcharge, freight etc that we want a system every time to access material price condition records.
The total value of the material is calculated or based on all addition and subtraction i.e. discounts, surcharge, tax freight etc

Condition Table
It is a table, which defines the structure of condition record key.
Condition Record
It is a data record used to store conditions or condition supplements, i.e. condition like, discount, freight, and surcharge, Tax etc.
Condition Type
It is used for different functions. In Pricing the condition types leads you to differentiate different types of discounts, in output determination, batch determination, difference between two output types, such as delivery note or order confirmation, between different strategy types
Access Sequence
It specifies the order in which system searches or access the condition records from condition table

Difference between PB00 & PBXX
1. Condition maintained in PB00 is time dependent whereas PBXX is time independent.
2. Condition type PB00 – used for IR, RFQ, Contract, Schedule Agreement
Condition type PBXX – used for PO.

Calculation Schema
The main function of calculation schema is to provide framework of steps for the price determination process to specify the discounts, surcharge, freight rebate etc.
It also determines the sequence of conditions that are to be followed and in which sequence.

Schema Group Vendor
The main function of it is to identify or to pick the right process and conditions for a particular vendor.

Schema Group Purchasing Organization
Key that determines which calculation schema (pricing procedure) is to be used in purchasing documents assigned to the relevant purchasing organization.

Schema Group
It allows to group together the purchasing organizations, which uses the same calculation schema.

Steps: -
1. Create Access sequence
2. Create condition types
3. Create pricing procedure or calculation schema
4. Link pricing procedure & access sequence to condition type
5. Create schema group for vendor
6. Create schema group for purchase organization
7. Assign schema group vendor-to-vendor master record in purchasing data view
8. Assign schema group purchase organization to our purchase organization
9. In inforecord purchase organization data enter condition types and pricing or calculation procedure

CUSTOMIZE SETTINGS: -
SPRO --> IMG-->MM-->PUR-->Conditions -->Define price determination Process
1. Define access sequence
2. Define Condition type
3. Define cal. Schema
4. Define schema group
o Schema group vendor
o Schema group purchasing group
5. Assignment of schema group to PUR org
6. Define schema determination à determine cal schema for standard PO.

AUOTOMATIC ACCOUNT DETERMINATION OR ASSIGNMENT

noreply@blogger.com (RAJ) — Mon, 15 Sep 2008 18:08:00 +0000

AUOTOMATIC ACCOUNT DETERMINATION OR ASSIGNMENT
Whenever there is goods movement accounting documents/ financial accounts updated automatically, so we do some settings in customization is called automatic account assignment.
It works with three important factors: -
• Chart of accounts
• Material type
• Valuation grouping code
Chart of accounts: - It is a group of accounts (GL Accounts), which is assigned to our company code. One company code is assigned to one chart of account but one chart of account can be maintained for n number of company codes.
Valuation grouping code / valuation modification: - It is a 4-digit code, which is assigned to company code along with valuation area (Plant)
Account category reference: - It is a 4-digit code that establishes relationship between material types and valuation class. One account cat ref assigned to n number of material type and valuation class
Transaction / Event key: - It is an internal processing key that facilitates the automatic account determination for the various material and invoice posting.
Use: - Key to determine the account in which a posting line is generated (at least two transaction event keys are involved in each posting)
Value String: - It indicates the posting rule that always contain same account assignment char to certain transaction / event key
Account Modifier: - It is a subdivision of transaction event key in which GL account is linked during the process of automatic account determination.
Valuation class and material type is assigned to it
Steps: -
1. Activate valuation Group code
2. Assign Valuation area to valuation grouping code
3. Create Account Cat Ref and valuation class
4. Assign valuation class to Account Cat Ref
5. Assign Account Cat Ref to Material type
6. Assign account grouping to movement types
7. Configure Automatic posting
Customize settings :-
SPRO 􀃆 IMG 􀃆 MM 􀃆 Valuation Class and Account Assignment 􀃆 Account Determination 􀃆 Account determination without wizard
1. Define valuation control T Code OMWM
2. Group together valuation areas T Code OMWD
3. Define valuation class T Code OMSK
• Account category reference
• Valuation class
• Material type / Account Cat Ref
4. Define Account grouping for movement type T Code OMWN
5. Configure automatic posting T Code OMWB

Transaction/ Event Key’s
BSX - Stock Posting / Inventory Posting
PRD - Price difference
GBB - Offsetting entry for stock posting
WRX - GR/IR Clearing
FRI - Freight Clearing

SAP R/3 SYSTEM LANDSCAPE

noreply@blogger.com (RAJ) — Mon, 15 Sep 2008 17:47:00 +0000

System Landscape
The system landscape contains all the SAP Systems that you have installed. It can consist of several system groups, who’s SAP Systems are linked by transport routes.

After you decide which clients you need and which roles you want them to have, you need to decide how to distribute them amongst the different SAP Systems. You can set up multiple clients independently of one another in a single SAP System. However, when you configure the data, you must remember that cross-client Customizing settings and Repository objects are identical for all clients in a single SAP System. Changes made in one client apply immediately to all clients in the system.

Three-System Landscape:
SAP recommends a three-system landscape in which each of the central clients has its own SAP System.
This consists of a development system DEV, a quality assurance system QAS and a production system PRD. The development system contains the Customizing client CUST, the quality assurance system contains the quality assurance client QTST and the production system contains the production client PROD. Make all changes to Customizing data and Repository objects in the Customizing client. When you release the corresponding change requests, they are transported into the quality assurance client. This means that changes to cross-client data only appear in the quality assurance client after the transport. In the quality assurance client you can test whether the transports are complete, or whether any linked changes are missing and are still in unreleased change requests. If the test is successful, the change requests are transported into the production client. The production client is completely separate from the other clients as regards cross-client data.

FACTORY CALENDAR FOR PLANTS

noreply@blogger.com (RAJ) — Mon, 15 Sep 2008 17:09:00 +0000

FACTORY CALENDAR
A factory calendar distinguishes between working days and non-working days.
Dependencies
If you have entered an exception rule for non-working days and have selected factory calendar, you must enter a factory calendar that is relevant to your company.
T.CODE: - OY05
PATH: - SPRO -> IMG ->TIME MANAGEMENT -> WORK SCHEDULES -> DEFINE PUBLIC HOLIDAY CLASSES

Steps to create Factory Calender

1. Define public holidays.

2. Define Holiday Calendar and assign public holidays to holiday calendar.

3.Define Factory Calendar, select the working days and assign holiday calendar to factory calendar.

4. Assign Factory Calendar to Plant while creating.

MASTER DATA :- Materail Master Record

noreply@blogger.com (RAJ) — Wed, 10 Sep 2008 14:23:00 +0000

MASTER DATAMaster data contains information, stores in a database for longer period of time and it is used for different application.
• Different types of Master Data in SAP MM are: -
1. Material Master
2. Vendor Master
3. Info Records
4. Source list
5. Quota Arrangement
Material: - The goods that are subject of business activities. The material can be traded, used in manufacture, consumed, or produced

Material Master: -
It is a Master file which contains information of a particular material, depending upon the views selected from the user departments.
• Different types of views available in Material Master Record are
1. Basic data 1 & 2
2. Purchasing
3. General plant data storage 1 & 2
4. Warehouse Management 1 & 2
5. MRP (Material required planning) 1,2,3,4
6. Accounting 1 & 2
7. Costing 1 & 2
8. Quality Management
9. Plant Stock
10. Storage Location Stock
11. Classification
12. Forecasting
13. Purchase Order Text
14. Foreign Trade: Import Data
Material Type: -
It is a key that assigns the material to a group of materials such as Raw materials, trading goods. This allows you to manage different materials in a uniform manner in accordance with your company's requirements.
The Material type defines certain attributes of the material and has important control functions.
UseWhen creating a material master record, the material type determines
• Whether the material number is assigned internally or externally
• From which number range interval the material number comes
• Which screens are displayed
• The order in which screens are displayed
• Which department-specific data is displayed for the user to enter

Different Material Types available: -ROH - Raw Material
FERT - Finished Product
HALB- Semi finished Product
HAWA- Trading goods
DIEN - Services
ERSA - Spare Parts
PIPE - Pipeline material
LEIH - Returnable Packaging
HERS- Manufacturer Parts
FGTR - Drinks
FOOD- Foods
FRIP - Perishable Goods
Configurable materials (KMAT): Configurable materials are materials that can have different variants. For example, an automobile can have different types of paintwork, trim, and engine.
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
Non-stock materials (NLAG): Non-stock materials are not held in stock because they are consumed immediately.
Non-valuated materials (UNBW): Non-valuated materials are managed on a quantity basis, but not by value.
Packaging materials (VERP): Packaging materials are used to transport goods and come with the goods free of charge. A material master record of this material type is managed on both a quantity basis and value basis.
Pipeline materials (PIPE): Materials such as oil, power, or water that flow into the production process directly from a pipeline, line, or other type of conduit. Since pipeline materials are always available, they are not planned.
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.
Semi finished products (HALB): Semi finished products can be procured externally and manufactured in-house. The company then processes them. A material master record of this material type can contain both purchasing and work scheduling data.
Services (DIEN): Services can be performed internally or procured externally (outsourced). They cannot be stored or transported.
Spare parts (ERSA): Spare parts are used to replace defective parts. They may be kept in stock. A material master record of this material type can contain purchasing data, but not sales data.
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.

Material Group: -T Code WG21Key that you use to group together several materials or services with the same attributes, and to assign them to a particular material group.
SPRO 􀃆 IMG 􀃆 Logistic General 􀃆 Material Group 􀃆 Create Material Group

Price Control: - Two types of Price Controlled given by SAP
1. Moving Price – ‘V’
2. Standard Price- ‘S’
Standard Price:1. Valuation using a standard price has the following features:
2.All inventory postings are carried out at the standard price.
3. Variances are posted to price difference accounts
4. Variances are updated
5. Price changes can be monitored
If a material is assigned a standard price (S), the value of the material is always calculated at this price. If goods movements or invoice receipts contain a price that differs from the standard price, the differences are posted to a price difference account. The variance is not taken into account in valuation.
Moving Average Price:Valuation using a moving average price results in the following:
• Goods receipts are posted at the goods receipt value.
• The price in the material master is adjusted to the delivered price.
• Price differences occur only in exceptional circumstances.
If a material is assigned a moving average price (MAP), the price is automatically adjusted in the material master record when price variances occur. If goods movements or invoice receipts are posted using a price that differs from the moving average price, the differences are posted to the stock account; as a result, the moving average price and the value of the stock change

Valuation Class: - (For creation T Code OMSK)It is used to determine which stock account is updated during the goods movement of a material. It is maintained in Accounting 1 view in material master record.
For material type ROH take valuation class as 3000, 3001, 3002, 3003
For material type HAWA take valuation class as 3100, 3010
For material type FERT take valuation class as 7920.
For material type HALB take valuation class as 7900. 7910
For material type DIEN take valuation class as 3200
For material type ERSA take valuation class as 3040
Number Ranges: -Number ranges are maintained for each & every document, Posted in the SAP System. The maximum numbers of digit allowed are 18digits (99, 9999, 9999, 9999, and 9999).
Two types of number ranges: -
Internal number ranges - System will automatically define numbers to all documents
External number ranges - User has to give doc number externally while creating document.

Customize settings for creating Material Types: -SPRO􀃆 SAPIMG 􀃆 Logistics General 􀃆Material Master 􀃆 Basic Settings 􀃆 Material Type
• Define Attributes of Material Type
• Define Number Ranges for Each Material Type

• Define Attributes of Material Type
Select the material type e.g. ROH 􀃆 click on copy button

Change the Material Type from ROH to say RIL (Information technology)
Keep External Number Assignment without check

Press Enter 􀃆 Save
{Account Category Reference: - It is group of valuation classes
Item Category Group: - Group of material that the system uses to determine item category for the processing of sales document.}
Again select the material type & click on Quantity / value updating (left side)

Select the valuation area or Plant along with newly created Material type.
Activate / select Quantity updating or Value updating.
Valuation area: - Organization level at which material valuation is carried out

Then Save.
• Define Number Ranges for each Material Type
Click on Groups (Maintain) – F6
Click on Groups (Menu bar) 􀃆 Insert
Write some text
Give number from _____ to ______.
Select the Material Types newly created.
Click on select element (F2)
Select the group & click on Element / Group
Save.

To Create a Material MasterTransaction code: -
MM01: To create & to extend the material
MM02 :To change / edit
MM03 :To display
MM06 :To deletes the Material master
MM50 :To extend the Material views
MM60 :To See Material Master List
MMAM : To Change the Material Type
• Path of - MM01SAP Easy Access 􀃆 Logistics 􀃆 MM 􀃆 Material Master 􀃆 Material 􀃆 Create General
• To Create Material Master: - Transaction Code: - MM01

Select Industry Sector & Material Type 􀃆 Press Enter
When you create a material master record, you are required to classify the material according to industry sector and material type.
Industry SectorKey that specifies the branch of industry to which the material is assigned
Use: When you create a material master record, the industry sector determines
• Which screens appear and in what order
• Which industry-specific fields appear on the individual screens

Then Click on Organization levels select Views & Press Enter

Enter Plant & Storage Location then Press Enter
Enter all the required fields in different Views (Basic data1, Sales, Accounting etc)

After entering all the fields Press enter and Save

Fields in different views in Material Master• Basic Data 1Material Description
Basic Unit of Measure
Material Group
Old Material Number
X- Plant Material Status- Blocking option
General item category
Gross Weight
Net Weight
Volume etc
• Basic Data 2 – contains Design Drawing information
• PurchasingBasic unit of measure
Purchasing Group
Material Group
Plant – Specific – Material Status - Blocking option
Source list
Batch Management – Automatic PO
Purchasing value key
GR Processing time (number of days required after receiving a material for inspection & then placed into the storage location)
Critical Part
Manufacturer Part number
Manufacturer
• General Plant Data Storage 1: -Basic Unit of measure
Temperature conditions
Storage Conditions
Container Requirements
Hazards material number
Batch Management
SLED (Shelf Life Expiration Date)
• General Plant Data Storage 2: -
Plant
Gross weight
Net Weight
Negative stock in plant
Profit Center

• Accounting 1: -Basic Unit of Measure
Valuation Class
Price control
Price unit
Valuation Category
Currency
Moving & Standard Price
Total Stock
Total Value
Division
• Accounting 2
Tax Price 1,2,3
Commercial Price 1,2,3
LIFO Pool
• Work SchedulingUnit of issue
Production unit
Plant specific material status
Tolerance data
Material group
Batch management
Base quantity
• Quality management
Unit of issue
GR processing time
Plant specific material status
QM Control key
QM procurement active

Organization Structure

noreply@blogger.com (RAJ) — Mon, 08 Sep 2008 05:45:00 +0000

Organization Structure

Note: - {1 Sales Org + 1 Distribution Channel + 1 Division = Sales Area}
Client: It is a logical unit or independent unit, which is used for to organize a specific organization data.

IMPLEMENTATION PROCESS

First we have to prepare documentation about the client business (like turnover, vendors, customers, payments, materials, production, marketing etc.)

The implementer company made two teams (1.) Steering team. (2.) Steering community

Steering team (SAP functional consultants) prepares a detailed documentation about the client with the help of core team (client company team) & this study is known as Feasibility Study. After that the steering team handed over this documentation to Steering community (Project manager, Sr. software engineer, and other higher authorities).
Steering community prepares the BBP (Business Blue Print). BBP Prepares in MS-Word

• ASAP: - Accelerated System Application Product in Data Processing.

• Business Process: - ASAP Methodology
1. Project Preparation
2. BBP (Business Blue Print)
3. Realization
4. Final Preparation
5. Go live & Support

• Project Preparation: -
It consists of identifying team members & development strategy as how to go.
AS – IS (Existing Process followed, requirements)
TO – BE (Requirement analysis and best process recommended)
Difference between (AS – IS) & (TO - BE) is called GAP Analysis.

• Business Blue Print (BPP): -
It is a legal documentation between client & the company (implementer / service provider). We have to understand the current business process of client & analyzing the business & prepare documentation. It is a detailed documentation for the client.

• Realization: -
This Phase is used to Implement or migrate the entire business of client from Non-SAP environment to SAP environment

• Final Preparation: -
This phase is used for testing & end user training. After successfully completion of this phase client is ready to run business in SAP R/3.

• Go live & Support: -
In this phase we deliver the project end date & end user training at client site.

General Terms (Basics)
• Client setup is done by BASIS (Business Administration System Integrated Software)
It is a logical unit or independent unit, which is used to organize a specific organization data

Company, Company Code & Controlling Area are created by SAP FI/CO consultant

• Sales Part is done by SAP SD consultant
{1 Sales Org + 1 Distribution Channel + 1 Division = Sales Area}

• Rest is done by SAP MM consultant (Plant, Storage location, Pur Org., Ref Pur Org)

• IDES: - Internet Demonstration Evaluated System. (Complete SAP System used for educational purpose)

• IMG: - Implementation guide (Customizing purpose)

• Maximum number of screen or sessions can be opened is 6.

Transaction Code: - /N (T.Code) Closes the current session & opens the new session.
Transaction Code: - /O (T.Code) Minimizes the current screen & opens new session.

• Difference between SAP 4.7 & ECC 5.0, ECC 6.0
ECC 5.0 & ECC 6.0 has its own database SAP DB, MAX DB

Path of SPRO
SAP EASY ACCESS --> TOOLS --> CUSTOMIZING --> IMG --> SPRO

Next Issue (Customize settings of Company, Company Code, How to create Plant, Purchasing Org., Purchasing Group, Storage Location etc...)