SAP MM Configuration

SAP MM Configuration2 Enterprise Structure - Definition

2.1 Define Valuation Level

Menu path

Implementation Guide for R/3 Customizing (IMG) ® Enterprise

Structure ®Definition ® Logistics general ® Define Valuation Level

Transaction Code OX14

Configuration

Description

Here we specify the level at which material stocks are valuated. We have used the

Plant level since the application component Production Planning (PP) and Costing

are being used.

Depending on the valuation level chosen, accounting data (in particular the

valuation price) is maintained for each plant or for each company code in the

material master record.

If material stocks are valuated at company code level, all plant stocks of a material

are managed in a joint stock account for each company code.

If material stocks are valuated at plant level, the material stocks for each plant can

be managed in different accounts. We can define a separate account determination

for each plant.

2.2 Define Plant

Menu path


Structure ®Definition ® Logistics general ® Define, copy, delete, check

plant

Transaction Code SPRO

Configuration

Description

As a part of the Logistics Organizational Structure, Plants are defined in SAP. The

‘Plant’ is an operating area or a branch or a location within a company. Each 'Plant'

is assigned to a single 'company code'. A 'company code' can have several

'Plants'.In case of ITZ Pvt. Ltd., the various 'Plants' are assigned to each 'company

code'.

Configuration of One Plant is depicted here, (for list of all please refer to MM KDS

Document)

2.3 Maintain Storage Location

Menu path

Implementation Guide for R/3 Customizing

(IMG) ® Enterprise Structure ®Definition ® Materials Management ® Maintain

Storage Location

Transaction Code OX09

Configuration

A storage location is the place where stock is physically kept within a plant. There

may be one or more storage locations within a plant.

A storage location has the following attributes:

Description

A storage location has a description and at least one address.

It is possible to store material data specific to a storage location.

Stocks are managed only on a quantity basis and not on a value basis at storage

location level.

Physical inventories are carried out at storage location level.

Configuration of Storage Locations under One Plant is depicted here, (for list of all

please refer to MM KDS Document)

2.4 Maintain purchasing organization

Menu path

Implementation Guide for R/3 Customizing

(IMG) ® Enterprise Structure ®Definition ® Materials Management à Maintain

Purchasing Organization


Configuration

Description

At this node we configure the Purchasing Organization .The purchasing

organization is the highest level of aggregation (after the organizational unit "client")

for purchasing statistics.

In case of ITZ One single Purchase Organization is created as under :

3 Enterprise Structure Assignments

3.1 Assign Plant to Company Code

Menu path


Structure ®Assignment ® Logistics general ® Assign Plant to Company

Code


Configuration

Description

A Plant needs to be assigned to one of the Company Codes, the relation is always

one to one i.e. One Plant can be assigned to only one company code

All the plants can’t be shown here(for complete list refer MM KDS document)

3.2 Assign purchasing organization to company code

Menu path


Structure ®Assignment ® Logistics general ® Assign purchasing

organization to company code


In this node we assign the Purchasing Organization to the company code under

which it works.

In case of ITZ the Purchasing Organization is Central, so it is not assigned to any

Configuration

Description Company Code

3.3 Assign purchasing organization to Plant

Menu path


Structure ®Assignment ® Logistics general ® Assign purchasing

organization to Plant


Configuration

Description

In this step we assign purchasing organizations to the plants for which they are

responsible.

In case of ITZ since it operates with Centralized Purchasing Org. we have assigned

the Purchasing Org. to all the plants defined as of now

3.4 Assign standard purchasing organization to plant

Menu path


Structure ®Assignment ® Logistics general ® Assign standard purchasing

organization to plant


Configuration

Description

If several purchasing organisations procure for a certain plant, we can define one of

them as the standard purchasing organization for the transactions "pipeline

procurement", "consignment" and "stock transfers".

In source determination for stock transfers and consignent, the system

automatically utilizes this standard purchasing organization. In the case of goods

issues of pipeline materials, the purchasing info records of the standard purchasing

organization are read.

In ITZ, we have not defined this Setting as we are using single Purchasing

Organisation

4 General Logistics

4.1 Assign Fields to Fields Selection Groups

Menu path

Implementation Guide for R/3 Customizing (IMG) ® Logistics - General àMaterial

Master à Field Selectionà Assign Fields to Fields Selection Groups

Transaction Code OMSR

Configuration

Description

Assignment of Material Master Fields is required to define whether a field is hidden

or displayed, or whether an entry is mandatory or optional in material master

maintenance, it is always advisable to work with Standard SAP settings, but for few

business requirement some assignments are changed to new field selection groups

defined as per reserved name space. in case of ITZ, some of the list of changed

entries is as given below:

Field Name Description Changed Field GrpMVKE-MVGR1 Material group 1 211MVKE-MVGR2 Material group 2 211MVKE-MVGR3 Material group 3 211

4.2 Maintain Field Selection for Data Screens

Menu path


Master à Field Selectionà Maintain Field Selection for Data Screens

Transaction Code OMS9

Configuration

Description

In this step we define the nature of a Field belonging to a particular Field Selection

Group wrt the Screen Reference of a Material Type. Steps involved are :

Selecting the field selection group.

Select the field selection option (hide, display, required entry, or Optional entry) for

each field reference as required.

4.3 Maintain Company Codes for Materials Management

Menu path


Master à Basic Settingsà Maintain Company Codes for Materials

Management

Transaction Code OMSY

Configuration

Description

This activity is done for making a Company Code relevant for materials

Management and to define the starting posting period This is a prerequisite for

creating a Material Master

4.4 Define Attributes of Material Types

Menu path

Implementation Guide for R/3 Customizing (IMG) ® Logistics - General à Material

Master à Basic Settingsà Material Typesà Define Attributes of Material Types

Transaction

Code OMS2

Configuration

Description

Material type is analogous to the family of a material master; all the important attributes of a material are governed by settings in the material type. To be precise it governs :

1. 1. Number range pattern and nature (external/internal)2. 2. Hide/optional fields in the material master3. 3. Valuation Control at valuation area level (ultimately used to derive G/L)4. 4. Control on Production/Purchase

4.5 Define Number Ranges for each material types

Menu path Implementation Guide for R/3 Customizing (IMG) ® Logistics - General àMaterial

Master à Basic Settingsà Material Typesà Define Number Ranges for each

Material Types

Transaction Code MMNR

Configuration

Description

In this step, we have defined the type of number assignment and the number range

intervals for material master records. When creating a material master record,

system must assign it a unique number. There are two ways of doing this:

internal number assignment

In this case, a number within the number range interval allowed is

assigned by the SAP system.

external number assignment

Here, the user assigns a number within the number range interval allowed. We can

define the intervals for external number assignment numerically and

alphanumerically.

We have defined the number range intervals for so-called groups. We assign one

or more material types to each group.

If we assign just one material type to a group, we can define both an internal and

an external number range interval for the material type.

If we group together more than one material type, we can define an internal and an

external number range interval here too. This allows several material types to have

the same number range intervals.

4.6 Define Attributes of system messages

Menu path


Master à Basic Settingsà Define Attributes of system messages

Transaction Code OMT4

Configuration

Description

When processing material master records, the system issues a number of system

messages containing important user information. In this activity, we define how the

SAP system handles these messages. We have the following options:

The message can be suppressed.

The message can be displayed as a warning.

The message can be displayed as an error message. (can’t be surpassed)

For ITZ requirement Message Numbers MM189 & 312 are changed as Error

message

We are using Standard SAP Messages.

4.7 Define Material Groups

Menu path


Master à Settings for Key Fieldsà Define Material Groups

Transaction Code OMSF

Here we define the Groups for Materials & Services, This Grouping shall be defined

keeping in mind the reporting requirement of the company for analysing Purchases,

Consumptions, Stocks etc,

Configuration

Description

Setting is just a table entry, few records are shown in the screen shot, for complete

list refer to the MM KDS document or the actual system node

4.8 Define External Material Groups

Menu path


Master à Settings for Key Fieldsà Define External Material Groups


Configuration

Description

Here we define the Groups for giving an extra key for filtering, sorting the list of

materials from a criterion other than Material grouping

In case of ITZ we have not used External Material Groups

4.9 Initialize Period

Menu path


Master à Toolsà Initialize Period

Transaction Code MMPI

Configuration

Description

This Transaction can be used to initialize the period in materials management , i.e.

it opens the already closed period (thru Txn : MMPV), but opening a period has

serious implications on data consistency in SAP so as recommended by SAP

Follow the instructions in Note 487381 before initialization

5 Materials Management – Consumption based Planning

5.1 Activate MRP for MRP Areas

Menu path

Implementation Guide for R/3 Customizing (IMG) ® Materials

Management àConsumption-based Planning à Master Data à MRP

Areas àActivate MRP for MRP Areas


Configuration

Description

This setting is required if we want to have planning at a level other than plants i.e.

either of Storage location / at Subcontractor level.

An MRP area represents an organizational unit for which we can perform material

requirements planning separately.

An MRP area can include one or several storage locations of a plant or a

subcontractor. We can define MRP areas in a plant.

For ITZ Ltd., we have not used MRP Areas.

5.2 Define MRP Areas

Menu path


Management àConsumption-based Planning à Master Data à MRP

Areas àDefine MRP Areas

Transaction Code SCAL

Configuration

Description

Here we define the MRP areas for a plant for which we would like to carry out

material requirements planning separately.

When creating an MRP area, we enter the number, which must have at least 5

digits to avoid any overlapping with the plant MRP area, the description and the

MRP area type

In case of ITZ we have not defined MRP area

Important : If MRP area is activated Conversion of Planning file entries needs to be

run in every new System Client through Report RMDBVM00 in Txn : SE38

The conversion report causes the system to create a new planning file. In addition,

the system creates MRP area for the existing plants. These MRP areas do not,

however, affect the way material requirements planning is carried out. The number

for plant MRP areas is identical to the plant number and therefore consists of four

digits.

The conversion of the current planning file (table MDVM) to the new planning file

(table DBVM) is a prerequisite for carrying out material requirements planning with

MRP areas.

6 Materials Management – Purchasing

6.1 Define Attributes of System Messages

Menu path


Management àPurchasing à Environment Data à Define Attributes of

System Messages


Configuration

Description

In Purchasing, certain system messages containing important information for users

may be issued from time to time

In this step, we can specify whether the SAP System:Suppresses the relevant information

Issues it as a warning message

Issues it as an error message

In the case of an error message, processing cannot be continued until user input

has been corrected

For ITZ requirement, messages (as a change from standard) are configured as

given below:

6.2 Define Purchasing Value Keys

Menu path


Management àPurchasing à Material Master à Define Purchasing Value

Keys


Configuration

Description

With Purchasing value key we can control following functions by using it in the

material master purchasing view, purchasing value key governs:

The issue of reminders and urging letters (expediters) with respect to nearly due

and overdue deliveries

The admissibility of over- and under deliveries ("overages" and "under ages")

Order acknowledgment requirements for PO items

Shipping/packaging instructions

This data appears as default data in purchasing documents and is taken from the

material master record (unless a purchasing info record exists, in which case it is

taken from the info records).

6.3 Entry Aids for Items without a Material Master

Menu path


Management àPurchasing à Material Master à Entry Aids for Items

Without a Material Master


Configuration

Description

In this step we assign In this step, we can assign a purchasing value key and a

valuation class to a material group.

The assignment of a purchasing value key default values for reminder

levels etc. in purchase order items without a material master record and

without an info record.

The assignment of a valuation class to a material group enables the

system to determine different accounts for the individual material groups.

For ITZ we have maintained Valuation Classes in the accounting view of the

materials.

6.4 Create Purchasing Groups

Menu path


Management àPurchasing à Create Purchasing Groups


Configuration

It’s a key for a buyer or group of buyers responsible for certain purchasing activities. useful in accessing information, controlling authorizations, setting up release strategies etc. for ITZ ‘s Requirement following groups are

Description

configured, configuration is a simple table entry but purchasing group has a comprehensive use in all purchasing transactions/ documents

6.5 Define Document Types (RFQ/Quotation)

Menu path


Management àPurchasing à RFQ/Quotation à Define Document Types


Configuration

Description

SAP manages RFQs and quotations as documents which are grouped into different

document types., in this step we have :

Created new document types

Defined item interval

Defined admissible follow-on document types

Assigned document types to a number range group

Defined number range interval

Chosen

internal

external

Chosen

The update group determines how the data from the document header is updated

in the statistics file.

Linkage determines which PR document types can be referenced for creating a

particular RFQ document type

6.6 Define Text Types for Header Texts (RFQ/Quotations)

Menu path


Management àPurchasing àRFQ /Quotations à Define Text Types for

Header Texts


Configuration

Description

In this step we define different Texts which appear in RFQ/Quotation Headers, which are used to store information applicable for a particular RFQ documentWe have standard Header Text Types.

6.7 Define copying rules for Header Texts (RFQ/Quotations)

Menu path


Management àPurchasing àRFQ /Quotations à Define copying rules for

Line Texts (RFQ/Quotations)


Configuration

Description

In this step we define copying rules for different header Texts which appear in RFQ/Quotation Line ItemsCopying rules are used to determine which texts can be adapted from other objects

(for example, vendor master records, contracts) to the header text of the RFQ. We

link text types in the RFQ with text types in other objects. System can adopt header

texts from the following objects:

RFQ / Quotation

Contract

Scheduling agreement

Vendor master

We can also specify whether the adopted text can be edited in the destination

document or not. This type of setting is more useful in PO Header Texts

6.8 Define document types (Purchase Requisitions)

Menu path


Management àPurchasing à Purchase Requisitions à Define document

types (Purchase Requisitions)


Configuration

Description

SAP manages Purchase Requisitions as documents which are grouped into various







Chosen

internal

external

Chosen

The update group determines how the data from the document header is

updated in the statistics file.

Above linkage governs which type of PO can be created using PR of a particular

type

6.9 Release Procedure with Classification (Purchase Requisitions)

Menu path


Management àPurchasing à Purchase Requisitions à Release

Procedure àProcedure with Classification à Set Up Procedure with Classification


Configuration

Description

In this step, we have set up the release procedure with classification.

Purchase Requisition release is the process in which Purchase Requisition is

approved and released by HOD of concern department for request of required

material or services specified in Purchase Requisition. Once the Purchase

Requisition is approved and released then Purchase Order or RFQ will be created

for that material or services against same Purchase Requisition.

Configuration involves following elements in sequence:

Release Group:

Specify for the release group either "overall release" or "item-wise release"

Release codes:

The Release Code is a two-character ID allowing a person to release (approve) a

requisition.(analogous to approver code)

Release Indicators:

A release indicator shows the release status of a purchase requisition

Release Indicators also involve:

Field selection key

via the field selection key, we can specify which fields in a purchase requisition with

this release indicator can be changed or must be populated

Changes after start of release process

With the Changeability indicator, we can specify the effects of changes to a

requisition. For example, certain changes may require a new release strategy to be

determined for the requisition.

Via the Value change field, we can cause the release strategy to be re-started if

the value of a purchase requisition item is increased by more than a certain

percentage (e.g. 10%). To do so, set the Changeability indicator to "4 -

Changeable, new release in case of new strategy or value change" and enter a

percentage in the Value change field.

Release Strategy

The Release Strategy defines the approval process for Purchase Requisitions. The strategy specifies the release codes which are necessary and the sequence in which releases have to be affected. We can define a maximum of eight release codes i.e. 8 Levels of approval.Release Prerequisites indicate the sequence in which a Purchase

Requisition must be approved via the release codes. (In ITZ case release is parallel(either / or so indicators are kept blank)

Release Status indicates the affect after the release by a particular release

code

Release Values

These values need to be maintained in every client manually, this forms the basis

on which release strategy is triggered for a PR.

An important prerequisite for this is to create Class & Characteristics in class type

032

Characteristics for Release Strategy

Create the Characteristics required for release strategy as master data thru

transaction CT04, here the most important setting is to attach the characteristics to

corresponding field of structure CEBAN

attach it to the structure

Class for Release Strategy

Create the class as master data thru transaction CL02

and attach the Characteristics created earlier to the class

6.10 Define Number Ranges (Purchase Orders)

Menu path


Management àPurchasing àPurchase order à Define Number Ranges

Transaction Code OMH6

Configuration

Description

In this step we define number ranges for Purchase order document types, (defined separately in customizing), this setting also includes number ranges for other external purchasing documents i.e. for Contracts/Scheduling Agreements and RFQs.There are two ways of doing this:

internal number assignment

In this case, a number within the number range interval allowed is

assigned by the SAP system.

external number assignment

Here, the user assigns a number within the number range interval allowed. We can

define the intervals for external number assignment numerically and

alphanumerically.

In case of ITZ all the documents are assigned with internal number ranges with the

exception for document type “Legacy Open P.O”, as it was required to retain the

legacy P.O number for this case.

go in change mode and define the intervals as shown:

6.11 Define Document types (Purchase Orders)

Menu path


Management àPurchasing àPurchase Orders à Define document types


Configuration

Description

SAP manages Purchase Orders as documents which are grouped into various




Define allowable item categories




Chosen

internal

external

Chosen



Above linkage governs which type of PR can be referenced created while creating

a particular Contract document type

6.12 Set Tolerance Limits for Price Variance

Menu path


Management àPurchasing àPurchase

order à Set Tolerance Limits for Price Variance


Configuration

Description

When processing a purchase order, the system checks whether the effective price

of a PO item shows variances compared with the valuation price stored in the

material master record. In addition, it checks whether the specified cash discount

value is admissible.

Variances are allowed within the tolerance limits. If a variance exceeds a tolerance

limit, the system issues a warning or error message. In SAP, the types of variance

are represented by the tolerance keys. For each tolerance key, we can define

percentage and value-dependent upper and lower limits per company code.

PE Price variance, Purchasing

Tolerance limit for system message no. 207. This message appears if the specified

effective price exceeds the predefined tolerances when compared with the material

price.

SE Maximum cash discount deduction, Purchasing

Tolerance limit for system message no. 231. This is a warning message, which

appears when the specified cash discount percentage exceeds the predefined

tolerances.

6.13 Release Procedure for Purchase Orders

Menu path


Management àPurchasing àPurchase Order à Release Procedure for Purchase

Orders


Configuration

Description

In this step, we have set up the release procedure for Purchase Orders(this also covers

the process for other external purchasing documents e.g. contracts/scheduling

agreements)

Purchase Order release is the process in which PO is approved and released by HOD of

concern department for request of required material or services specified in PO. Once

the Order is approved and released then GR can be created against the PO

In case of ITZ, Release strategy is used in case of all purchases.

Configuration involves following elements in sequence:

Release Group:

Release groups are created for each type of purchasing

Release codes:

The Release Code is a two-character ID allowing a person to release (approve) a

requisition.(analogous to approver code)

Release Indicators:

A release indicator shows the release status of a Purchase Order

Release Indicators also involve:

Changeability Indicator

With the Changeability indicator, we can specify the effects of changes to

a POdocument. For example, certain changes may require a new release strategy to be

determined for the requisition.

Via the Value change field, we can cause the release strategy to be re-started if the

value of a purchase order is increased by more than a certain percentage (e.g. 10%). To

do so, set the Changeability indicator to "6 - Changeable, new release in case of new

strategy or value change" and enter a percentage in the Value changefield.

Release Strategy

The Release Strategy defines the approval process for PO. The strategy specifies the release codes which are necessary and the sequence in which releases have to be affected. We can define a maximum of eight release codes i.e. 8 Levels of approval.Release Prerequisites indicate the sequence in which a Purchase Requisition must be approved via the release codes. (In ITZ case release is by a single authority so there are no prerequisite involved)

Release Status indicates the affect after the release by a particular release code

Release Values

These values need to be maintained in every client manually, this forms the basis on

which release strategy is triggered for a PO.

An important prerequisite for this is to create Class & Characteristics in class type 032

Characteristics for Release Strategy

Create the Characteristics required for release strategy as master data thru transaction

CT04, here the most important setting is to attach the characteristics to corresponding

field of structure CEKKO

And attach it to the structure

Class for Release Strategy

Create the class as master data thru transaction CL02 and attach the Characteristics

created earlier to the class

6.14 Define Screen Layout at Document Level

Menu path


Management àPurchasing àPurchase Orders à Define Screen Layout at

Document Level


Configuration

Description

In this step we define the attributes of various fields contained in a field selection

key (defined for a document type) inside which various fields are grouped into

fields selection groups.Steps involved in the process are :

Selecting the field selection key (defined for a document type)

Select the field selection option (hide, display, required entry, or Optional entry) for

each field inside a field selection group reference as required.

Select a field selection key and set the attributes inside as shown:

get inside a field group and choose the attributes

settings can be made similarly for other fields in various other groups as & when

required

6.15 Define Text Types for Header Texts (Purchase Orders)

Menu path


Management àPurchasing àPurchase Order à Define Text Types for

Header Texts


Configuration

Description

In this step we define different Texts which appear in Purchase order header, these are used to store information applicable for a particular PO document

6.16 Define copying rules for Header Texts (Purchase Order)

Menu path


Management àPurchasing àPurchase Orders à Define copying rules for

Header Texts


Configuration

Description

In this step we define copying rules for different header Texts which appear inPurchase Order HeadersCopying rules are used to determine which texts can be adapted from other objects

(for example, vendor master records, contracts, RFQ) to the header text of the

Purchase Order. We link text types in the PO with text types in other objects.

System can adopt header texts from the following objects:

RFQ / Quotation

Contract

Scheduling agreement

Vendor master

Purchase Requisition


document or not. Currently we are not maintaining any copying rule for header texts

6.17 Define Text Types for Item Texts (Purchase Orders)

Menu path


Management àPurchasing àPurchase Order à Define Text Types for Item Texts


In this step we define different Texts which appear in Purchase order item level, these are used to store information applicable for a particular PO document line

Configuration

Description item

6.18 Define copying rules for Item Texts (Purchase Order)

Menu path


Management àPurchasing àPurchase Orders à Define copying rules for

Item Texts


Configuration

Description

In this step we define copying rules for different item Texts which appear inPurchase Order ITEMCopying rules are used to determine which texts can be adapted from other objects


Purchase Order. We link text types in the PO with text types in other objects.

System can adopt header texts from the following objects:

RFQ / Quotation


Purchase Info record

Contract

Material master

We can also specify here whether the adopted text can be edited in the destination

document or not.

maintain the rules for a text as under

6.19 Define Document Types (Contracts)

Menu path


Management àPurchasing àContracts à Define Document Types

Transaction Code OMH6

Configuration

Description

SAP manages Contracts as documents which are grouped into various document

types., in this step we have :



Define allowable item categories




Chosen

internal

external

Chosen



In case of ITZ, use of Contracts and Scheduling agreements is very minimal so we

have retained and used standard SAP document types

Above linkage governs which type of PR can be referenced created while creating

a particular Contract document type

6.20 Define Screen Layout at Document Level (Contracts)

Menu path


Management àPurchasing àContracts à Define Screen Layout at Document

Level

Transaction

Code SPRO

Configuration

Description

In this step we define the attributes of various fields contained in a field selection key

(defined for a document type) inside which various fields are grouped into fields selection

groups.Steps involved in the process are :

Selecting the field selection key (defined for a document type)

Select the field selection option (hide, display, required entry, or Optional entry) for each

field inside a field selection group reference as required.

Select a field selection key and set the attributes inside as shown:

get inside a field group and choose the attributes

settings can be made similarly for other fields in various other groups as & when required

6.21 Define Text Types for Header Texts (Contracts)

Menu path


Management àPurchasing àContracts à Define Text Types for Header

Texts


Configuration

Description

In this step we define different Texts which appear in Contract header, these are used to store information applicable for a particular Contract document

6.22 Define copying rules for Header Texts (Contracts)

Menu path


Management àPurchasing àContracts à Define copying rules for Header

Texts


Configuration

Description

In this step we define copying rules for different header Texts which appear inContract HeadersCopying rules are used to determine which texts can be adapted from other objects

(for example, vendor master records, Contract, RFQ) to the header text of the

Contract. We link text types in the PO with text types in other objects. System can

adopt header texts from the following objects:

RFQ / Quotation

Contract

Vendor master


document or not.

We are maintaining Standard Text and copying Rules for Header Texts

6.23 Define Text Types for Item Texts (Contracts)

Menu path


Management àPurchasing àContracts à Define Text Types for Item Texts


Configuration

Description

In this step we define different Texts which appear in Contract item level, these are used to store information applicable for a particular Contract document line item

6.24 Define copying rules for Item Texts (Contract)

Menu path


Management àPurchasing àContracts à Define copying rules for Item

Texts


Configuration

Description

In this step we define copying rules for different item Texts which appear inContract HeadersCopying rules are used to determine which texts can be adapted from other objects


Contract. We link text types in the Contract with text types in other objects. System

can adopt header texts from the following objects:

RFQ / Quotation


Contract

Purchase Info record

Material master

We can also specify here whether the adopted text can be edited in the destination

document or not.

maintain the rules for a text as under

6.25 Define External Confirmation Categories

Menu path


Management àPurchasing àConfirmations à Define External Confirmation

Categories


Configuration

Description

Notification from the vendor to the recipient regarding the status of a purchase order., In case of ITZ , CONFIRMATIONS are not being used Confirmation categories are defined to symbolize the key for a type of confirmation

6.26 Define Internal Confirmation Categories

Menu path


Management àPurchasing àConfirmations à Define Internal Confirmation

Categories


Configuration

Description

In this step, we assign an external confirmation category to each internal confirmation

category.

Internal Categories are for system controls.

6.27 Set Up Confirmation Control

Menu path


Management àPurchasing àConfirmations à Set Up Confirmation Control


Configuration

Description

In this step, we assign an external confirmation category to each internal confirmation

category.

Internal Categories are for system controls.

As shown all the conformation categories are relevant for MRP, but the last one is relevant to GR also, which means that when a GR is made against the P.O line item it will get defaulted with qty of last conf. category

6.28 Define Access Sequence

Menu path


Management àPurchasing àConditionsà Define Price Determination Process à Define

Access Sequence


Configuration

Access sequence is an important element of pricing determination. It is the Order in which the system searches through the condition tables when searching for particular condition records. The search order goes from specific condition

Description

records to general condition records.A. E.G.

Access sequence is made up of condition table (the level at which data is stored)In the access sequence shown system will search for the record from first to last table in sequence. (e.g. if Custom duty % for a material is maintained at all the three levels i.e. Incoterms-plant-maerial / Plant-Material / Plant-Material Type level , then system will take the record from 1st available level only i.e. Incoterms-plant-maerial in this case)Each condition table is defined as an combination of fields for data access and is assigned to different condition types ( In case of ITZ , we are not maintaining any access sequence),

6.29 Define Condition Types

Menu path



Condition Types

Transaction Code M/06

s

Configuration

Description

In this step we have defined condition types.The condition types are used to represent pricing elements such as prices, discounts, surcharges, taxes, or delivery costs in the SAP. These are stored in the system in condition records.For condition types for which we want to maintain conditions with their own validity period we have specified an access sequence. (e.g. for all import duty conditionsImportant Settings Condition type include:Condition Class: Defines nature of condition as Prices / surcharge / discounts etc.Calculation type: Defines nature of condition unit i.e. Amount type / Percentage / Qty etcCondition Category : e.g. Packaging, Cost , Tax, Delivery Costs(requiring extra vendor at condition level)Access Sequence : Allows condition records to be maintainedHeader Condition : Allows usage at Header level of Purchasing documentAccruals : Makes a condition irrelevant to net price calculation i.e. excluded from tax base

6.30 Define Calculation Schema

Menu path



Calculation Schema

Transaction Code M/08

Configuration

In this step, we have defined the calculation schemas.In MM area, a calculation schema is a framework of steps used to calculate pricing in as purchasing documentAnalogous to this is referred to in the Sales and Distribution (SD) area as

Description

a pricing procedure.In the calculation schema (pricing procedure), we specify which condition types are to be taken into account in which sequence.In the price (or cost) determination process, the SAP System automatically determines which calculation schema is valid for a business transaction and takes into account, one after another, the condition types it contains.

In case of ITZ we have defined schemas all starting with Z*, these will get derived in different types of purchasing documents as per the rule explained in Schema determination configurationSelect one of the schema and see the control data as shown below:Important keys in defining Schema are as under:Step No. & Counter: For determination the sequence of conditions and to act as a base for calculations with in conditionFrom- To : Base for calculation of condition value, this is only relevant for % type of conditionsStatistical: Makes a condition non-relevant to account postingsSubtotal: Used to pass the condition value in to fields of P.O item tables and other pricing structureRequirement : Used for validating Condition value determination using small ABAP written formulaeBase Type: Here a Formula for determining the condition basis as an alternative to the standard.Accrual key: for deriving a separate account during GR / Invoice postings

6.31 Define Schema Group

Menu path


Management àPurchasing àConditionsà Define Price Determination

Process à Define Schema Group


Configuration

Description

Every External Purchase document derives Calculation Schema from a combination of Purchasing Organization and Vendor, to simplify data maintenance for this process SAP works with grouping concept. So all the purchasing org. are grouped in to a Schema group and Vendors requiring same pricing stricture are grouped into a Schema group , now for the combination of these , system derives the pricing schemas

Click on a row to enter :

the other part i.e. vendors are assigned with schema group in vendor master

6.32 Define Schema Determination

Menu path Implementation Guide for R/3 Customizing (IMG) ® Materials


Process à Define Schema determination


Configuration

Description

In this step we have defined the determination of Pricing schema for different type of Purchasing documents and for Stock transport orders

For standard purchase orders(depending on the schema group of the vendor and the purchasing organization)For stock transport orders(depending on the supplying plant, the document type and the schema group of the purchasing organization)

select first item ,

and second item

6.33 Define Transaction Event keys

Menu path



Process à Define Transaction Event keys


Configuration

Description

In this step, we have defined transaction/event keys for condition types involving provisions.This enables the system to find the relevant account for provisions (for accrued delivery costs or miscellaneous provisions, for example),We have assigned these transaction/event key to each condition type that is relevant to provisions in the step Define Calculation Schema.

Select the 1st row

Select second row, it displays the usage of key in schema

6.34 Maintain Condition Table

Menu path



Process à Maintain Condition Table


Configuration

Description

In this step, we create custom tables, these table are used to store condition records for different condition types , for this these tables should be a part of access sequenceWith help of this we can derive prices, discounts and surcharges dependent on almost all the fields in a purchasing document.In a condition table, we specify the combination of fields for which we can create condition records.

As per SAP recommendation we should not change the condition tables that are included in the standard version of the SAP System.Check the extent to which we can use the condition tables that are supplied with the standard SAP System, for our tables we can only choose names between 501 and 999. If we make no entry, the system will automatically assign a consecutive number.For ITZ we have not defined any tables:Steps:

For creating new condition tables. copy a similar condition table and proceed as

follows:

Enter the name of the table we wish to create.

Note that we can only choose names between 501 and 999. If we make no entry,

the system will automatically assign a consecutive number.

Specify whether we wish to create the table with or without a validity period.

Enter the type of condition table (for example, transparent table).

Enter a description for the condition table.

From the list of allowed fields that are included in the field catalog and which can be

extended there, choose the desired fields for the condition table.

Generate the new condition table.

IMP: All the fields that shall be used to pick up any condition value must be part of Header/Key field in the condition table.

6.35 Define Grid for Quantity Variances

Menu path


Management àPurchasing àStatistics àDefine Grid for Quantity Variances


Configuration

Description

For Purchasing information system for vendor performance the statistics is managed on the amount of quantity variances of vendors.The delivery quantity variance specifies in percent the variance between the purchase order quantity and the quantity actually delivered.This key figure is determined if an order item is completed and is updated for the entry date of the goods receipt or for the entry date of purchase order change.In this step we can determine four interval limits for every purchasing organization. Five intervals are then available to we for evaluation of vendors

6.36 Define Grid for Delivery Date Variance

Menu path


Management àPurchasing àStatistics àDefine Grid for Delivery date


Configuration

Delivery date variance data is used in statistics for evaluating vendor performance.The delivery date variance specifies the difference in days the difference between the statistically relevant delivery date and the date of

Description

the goods receipt.This key figure is updated during the goods receipt for the entry date.In this step we can determine four interval limits for every purchasing organization. Five intervals are then available to we for evaluation of vendors

6.37 Define Weighing keys

Menu path


Management àPurchasing àVendor Evaluation à Define Weighing keys


Configuration

Description

In vendor evaluation criteria are weighted according to their importance through Weighing key.For example, the overall evaluation of a vendor is calculated from the scores awarded for the main evaluation criteria "price," "quality," and "delivery." The latter comprises "on-time delivery performance" and "quantity reliability."If we consider a vendor's price to be more important than quality, and quality to be more important than delivery, we can assign weights to the criteria in a ratio of three for price, two for quality, and one for delivery. This ratio is recorded in a weighting key.

6.38 Define Criterion (Vendor Evaluation)

Menu path


Management àPurchasing àVendor Evaluation à Define Criterion


Configuration

Description

Here we have defined the criteria by which the system computes scores for vendors and specify whether the scores for the subcriteria are computed manually, semi-automatically, or automatically.Select One of the criterion and drilldown to sub criterion

6.39 Define Scope of List (Vendor Evaluation)

Menu path


Management àPurchasing àVendor Evaluation à Define Scope of List


Configuration

Description

In this step we define various types of list, each representing different main criteria

or the same main criteria in a different order.

In the standard system, the scope-of-list parameters 'standard' and 'version 1' are

supplied as an example:

The parameter Standard provides the user with a ranking list of vendors by

overall score. The main criteria are arranged in the order "Price", "Quality",

"Delivery", "General service/support” and "Externally performed service/work".

The parameter Version 1 yields a ranking list of vendors sorted according to the

score for the main criterion "Price". Then follow the overall evaluation and the main

criteria "General service/support", "Quality", "Delivery", and "Externally performed

service/work".

check the details of list inside

6.40 Maintain Purchasing Organization data

Menu path


Management àPurchasing àVendor Evaluation à Maintain Purchasing

Organization data


Configuration

Description

Select a row and displays criterion for Purchasing OrganizationSub criterions for main criterionWeighing for a Purchasing Org.We have provided Equal Weighting to the Criteria as we have different weighing parameters for ITZPoint scores for a Purchasing Org.

6.41 Define Permissible Partner Roles per Account Group

Menu path


Management àPurchasing àPartner Determination à Partner Rolesà Define

Permissible Partner Roles per Account Group


Configuration

Description

Here we can specify for each account group of the vendor which roles the vendor

may assume. Example we can specify that certain vendors may only serve as

an ordering address, not as an invoicing party.

6.42 Define Partner Schemas (Vendor Master)

Menu path


Management àPurchasing àPartner Determination à Partner settings in Vendor

Master recordsà Define Partner Schemas


Configuration

Description

Partner schemas allow us to group various partner roles. We can specify that certain roles in a schema are mandatory, i.e. cannot be changed after entry.For ITZ, Schema groups Z1 is definedselect a schema to detail the allowed partner functions

6.43 Assign Partner Schemas to Account Groups

Menu path


Management àPurchasing àPartner Determination à Partner settings in Vendor

Master recordsà Assign Partner Schemas to account groups


Configuration

Description

Here we assign the already defined schema groups to vendor account groups

6.44 Define Partner Schemas (Purchasing Documents)

Menu path


Management àPurchasing àPartner Determination à Partner settings in Purchasing

documentsà Define Partner Schemas


Configuration

Description

Partner schemas allow us to group various purchasing documents for partner determination. We can specify that certain roles in a schema are mandatory, i.e. cannot be changed after entry.For ITZ, Schema group Z001 is definedSelect a Schema to detail the partner function allowed

6.45 Assign Partner Schemas to Document Types

Menu path


Management àPurchasing àPartner Determination à Partner settings in Purchasing

documentsà Assign Partner Schemas to document types


Configuration

Description

In this step, we have assigned the partner schemas to the various types of purchasing document.As a result, only the roles of the schema in question can be maintained in documents of the relevant types.

7 Materials Management – External Services Management

7.1 Define Service Category

Menu path


Management àExternal Services Managementà Service Master à Define Service

Category


Configuration

Description

In this step, we define the service category.

The service category is the most important criterion for structuring

Service master records. It provides a default value for the valuation

A. Classes. Service master records can be assigned to number ranges on the basis of

the service category.

7.2 Define Number Ranges

Menu path


Management àExternal Services Managementà Service

Master à Define Number Ranges


In this step, we define Number Ranges for each service category.

Configuration

Description

7.3 Define Number Range for Service Entry Sheets

Menu path



Category


Configuration

Description

In this step, we define the service category.

The service category is the most important criterion for structuring

Service master records. It provides a default value for the valuation

A. Classes. Service master records can be assigned to number ranges on the basis of

the service category.

7.4 Define Attributes of System messages

Menu path



Category


Configuration

Description

In External Services Management, a number of system messages containing

important information for users may be issued. Users can process this information

further.

In this step, we can define whether the SAP System

Suppresses this information

Issues it in the form of a warning

Issues it in the form of an error message

For ITZ requirement, additional messages no. SE 346 / 347 / 361 is activated

asError along with other additional Standard SAP Messages

8 Materials Management – Inventory Mgmt. & Physical Inventory

8.1 Plant Parameters

Menu path

Implementation Guide for R/3 Customizing (IMG) ® Materials Management ® Inventory

Management and Physical Inventory ® Plant Parameters

Transaction

Code SPRO

Configuration

Description

In this step, we make the general plant settings for ‘Inventory Management’. All settings are

also contained in the individual steps of the Implementation Guide for Inventory

Management.

If we have created a plant in the enterprise structure using the Copy plant function, we do

not need to make any settings.

If we have created a plant manually, we have to create a new entry for the plant

parameters.

8.2 Define Number Assignment for Accounting Documents

Menu path


Management and Physical Inventory ® Number Assignment ® Define Number

Assignment for Accounting Documents

Transaction

Code OMBA

Configuration

Description

In this step, we set the number ranges for the accounting documents which are created when

goods movements or inventory differences are posted.

For accounting-relevant goods movements, the system creates two different documents:

material document

accounting document

Both the material documents and the accounting documents have their own document numbers.

When inventory differences are posted, the system also creates an accounting document for the

physical inventory document.

In this step, we only maintain the number assignment for accounting documents.

Accounting documents are split into document types to allow differentiated document number

assignment, which is the basis for distinguishing between the various accounting operations. A

number range is assigned to each document type. In a company code, we have to define

number intervals for each number range and fiscal year. In inventory management, the

transaction determines which document type is used.

Goods Issue Document Type

TCode Transaction text Type DescriptionMB05 A. Subseq. Adjustmt: Act.Ingredient Mat WE Goods receiptMB11 Goods Movement WA Goods issueMB1A Goods Withdrawal WA Goods issueMB1B Transfer Posting WA Goods issueMB26 Picking list WA Goods issueMBSU Place in Stor.for Mat.Doc: Init.Scrn

MIGO_GI Goods Movement WA Goods issueMIGO_TR Transfer Posting WA Goods issue

Goods Receipt Document Type

TCode Transaction text Type DescriptionMB01 Post Goods Receipt for PO WE Goods receiptMB04 A. Subsequ.Adj.of "Mat.Provided"Consmp. WE Goods receiptMB0A Post Goods Receipt for PO WE Goods receiptMB1C Other Goods Receipts WA Goods issueMB31 Goods Receipt for Production Order WE Goods receiptMBNL Subsequent Delivery f. Material Doc.MBRL Return Delivery for Matl DocumentMBSF Release Blocked Stock via Mat. Doc. WE Goods receiptMBSL Copy Material DocumentMBST Cancel Material DocumentMIGO_GO Goods Movement WE Goods receiptMIGO_GR Goods Movement WE Goods receiptMIGO_GSA. Subseq. Adjust. of Material Provided WE Goods receipt

Automatic Movements Document Type

TCode Transaction text Type DescriptionBMBC Batch Information Cockpit WA Goods issueBORGR GR Automotive WE Goods receiptBORGR_B GR Automotive: Posting WE Goods receiptBORGR_C GR Automotive: Clearing WE Goods receiptCAT5 Data Transfer CATS -> PS WA Goods issueCAT9 Data Transfer CATS -> PM/CS WA Goods issueCIP2 CC2: Update PDC messages WA Goods issueCIP3 CC3: Update PDC messages WA Goods issueCIP4 CC4: Update PDC messages WA Goods issueCIP5 CC5: Update PDC messages WA Goods issueCIPV Posting PDC records WA Goods issue

Physical Inventory Document Type

TCode Transaction text Type DescriptionMI07 Process List of Differences WI Inventory documentMI08 Create List of Differences with Doc. WI Inventory documentMI10 Create List of Differences w/o Doc. WI Inventory document

8.3 Define Number Assignment for Material and Physical Inventory Documents

Menu path



Assignment for Material and Phys.Inv Documents

Transaction

Code OMBT

In this step, we maintain the number assignment for the following documents:

Configuration

Description

material documents

physical inventory documents

The number assignment for these documents is not to be confused with the number

assignment for accounting documents which we completed in the step Define number

assignment for accounting documents. The number assignment for accounting documents

depends on the document type which is allocated to the transaction.

The number assignment for material documents and physical inventory documents depends

on the transaction/event type which is also allocated to each transaction in Inventory

Management. The transaction/event types are divided into groups of number ranges. A

number range interval has to be defined for each group.

No From no. To number Status Ext01 0100000000 0199999999 002 4900000000 4999999999 490000241903 5000000000 5999999999 500000021904 0200000000 0299999999 0

Note

We cannot change the transaction/event types. However, we can change the

number range intervals or we can allocate transaction/event types to new groups.

SPRO-> IMG-> Materials Management-> Inventory Management and Physical Inventory->

Number Assignment-> Define Number Assignment for Material and Phys. Inv. Docs

Her you ned to maintain the number ranges for the group attched to the key.

If you want to maintain new number range intervals for an existing group:

a) Choose Group -> Maintain.

b) Select a group and choose Interval -> Maintain.

c) Choose Edit -> Insert year.

d) Maintain the number interval for the new fiscal year.

8.4 Define Number Assignment for Reservations

Menu path



Assignment for Reservations

Transaction

Code OMJK

Configuration

Description

In this step, we set up number assignment for reservations.

The number assignment applies to all plants in the client.

Note

If we create reservations with method CreateFromData1 (function module

BAPI_RESERVATION_CREATE1), we can use the number range RB for an

external number assignment.

8.5 Field Selection for Goods Movement/Initial Header Screens

Menu path


Management and Physical Inventory ® Field Selection for Goods

Movement/Header Screens

Transaction

Code OMJN

Configuration

Description

In this step, we define the field selection for goods movements initial and header screens.

Note that the field selection for the item screens depends on the movement type and is

configured in separate steps.

In this step, we specify whether the fields are input, mandatory, display or hidden.

8.6 Field Selection for MIGO

Menu path


Management and Physical Inventory ® Settings for Enjoy Transactions ® Settings for

Goods Movements ® Field Selection for MIGO

Transaction

Code OMJX

Configuration

Description

Here we can:

Hide the header data completely or hide particular fields that we do not require

Hide pushbuttons that we do not require

Define the Delivery note and Bill of lading fields as mandatory entries if we use evaluated

receipt settlement

Show the GR/GI slip (GOHEAD-XABLN) field if we use GR/GI slip numbers (only necessary

in certain countries)

Show the Plant (GODYNPRO-PO_WERKS) field if we require the ordering-plant name for

purchase-order-related goods movements as a selection criterion in addition to the

purchase order number and item number

Hide the print indicator if we do not want to print out GR/GI slips in Inventory Management

8.7 Field Selection per Movement Type

Menu path



Goods Movements ® Field Selection per Mvt Type

Transaction

Code SPRO

Configuration

Description

In this step, we maintain all the settings for field selection by movement type. This step

replaces the activity Define Screen Layout for the Enjoy transactions. The settings from

Define Screen Layout are adopted in these settings automatically so that we do not need to

maintain new entries here.

We can specify for each field whether it is an optional entry or a mandatory entry. In the

table, we see all fields that are visible. We can access the setting Field Invisible by deleting

the appropriate entry from the table.

There is no distinction between different special stock indicators in these entries. Special

stock fields are always suppressed automatically.

8.8 Settings for Transactions and Reference Documents

Menu path



Goods Movements ® Settings for Transactions and Reference Documents

Transaction

Code SPRO

Configuration

Description

We can limit the number of selectable transactions (goods receipt, goods issue, and so on)

and reference documents (material document, delivery note), and we can specify the

movement type that the system is to propose for every reference document.

If we need only certain transactions (for example, goods receipts or goods issues), we can

choose from the following preset transactions:

MIGO - Used to enter all goods receipts.

MIGO_GR - Used to enter goods receipts from external procurement.

MIGO_GO - Used to enter goods receipts for production orders.

MIGO_GI - Used to enter goods issues.

We can always display material documents.

Transaction MIGO; Actions Mentioned in the table

Action Active Action ActiveA01 A08A02 A09 XA03 X A10A04 X A11A05A06A07 X

Reference Document Types (For details go to the path mentioned)

A. Ref. Active MvT A. Ref. Active MvTR01 X 101 R02 XR04 X 101 R03 XR05 101 R01 X 351R06 101 R08 X 261R07 101 R09 X 201R08 X 101 R10 X 201R09 501 R09 X

R10 X 511 R10 X 301R02 X R10 X 303R03 X R02 XR02 X R10 X 305R02 X R01 XR02 X

8.9 Create Storage Location Automatically

Menu path

Implementation Guide for R/3 Customizing (IMG) ® Materials Management ®Inventory

Management and Physical Inventory ® Goods Issue/Transfer Postings®Create

Storage Location Automatically

Transaction

Code OMB2

Configuration

Description

In this step, we specify whether the automatic creation of storage location data is allowed

for goods issues and transfer postings.

This is advisable if we work with negative stocks and a material's first movement may be

an outward movement.

Note that the reversal movement for a goods issue, for example, movement type 202 or

262, is not considered as an issue but as a receipt. If we only use the automatic creation

of storage location data for reversals of goods issues, we do not have to allow negative

stocks.

We have to allow automatic creation per plant first of all. We then have to explicitly allow

the creation of storage location data for each movement type.

The storage location data is only created if the quantity is posted to 'standard' storage

location stock. It is not created for receipts into a special stock (for example, into sales

order stock).We are using standard movement types for automatic Storage Location

Creation

8.10 Set Manual Account Assignment

Menu path


Management and Physical Inventory ® Goods Issue/Transfer Postings® Set Manual

Account Assignment

Transaction

Code OMB6

Configuration

Description

In the R/3 System, account assignment is predefined via the automatic account

determination facility.

When we enter material movements that are assigned to a cost account, we can enter the

account number manually. In doing so, we change the account assignment predefined as

offsetting entry for inventory posting.

MvT Acct MvT Acct201 309 -202 310 -

292 311 -301 - 312 -302 - 313 -303 - 314 -304 - 317 -

8.11 Define Screen Layout

Menu path


Management and Physical Inventory ® Goods Issue/Transfer Postings® Define Screen

Layout

Transaction

Code OMBW

Configuration

Description

In this step, we set the field selection for the movement types including goods issues and

transfer postings.

When creating a goods movement, the field selection determines which fields

can be filled ( optional entry)

must be filled (required entry)

are suppressed fields

In Inventory Management, the field selection depends on the movement type.

The field selection defined for a movement type is valid for entering goods movements and

reservations.

Note

We do not maintain the input features of the G/L account and Reason fields here,

but in the following steps:

Manual account assignment (for the G/L account field)

Reason (for the Reason field)

Caution

The field selection for the movement type must correspond with the following field

selections:

field status definition of the G/L account to which postings are made (through the field status

group)

field selection of the posting key

We must take care that a mandatory entry in the G/L account is also defined as a

mandatory entry for the movement type.

8.12 Maintain Copy Rules for Reference Documents

Menu path


Management and Physical Inventory ® Goods Issue/Transfer Postings®Maintain

Copy Rules for Reference Documents

Transaction

Code SPRO

Configuration

Description

In this step, we configure whether the items of the reference document are proposed as

selected on the item selection list when entering a document with reference, or not.

The user can delete the check marks manually on the item selection list if she/he does

not want to adopt some items.

TCode Transaction text PrslMB11 Goods Movement XMB1A Goods Withdrawal XMB1B Transfer Posting X

8.13 Set up Dynamic Availability Check

Menu path


Management and Physical Inventory ® Goods Issue/Transfer Postings ® Set up Dynamic

Availability Check

Transacti

on Code OMCP

Configura

tion

Descripti

on

In this step, we configure the dynamic availability check.

In Inventory Management, two types of availability check are carried out.

availability check during the entry of reservations

availability check during the entry of goods movements

The system checks whether the material to be withdrawn is available and issues a message, if

necessary.

The availability check is only carried out if:

the material master record contains a checking group for the availability check (MRP data)

a checking rule is assigned to the transaction in Customizing

We can define

for each movement type which type of message is issued (object Movement type)

which checking rules are supported (object Checking rule)

per checking group and checking rule: which objects (documents, stocks, material requirements) are

included in the availability check (object Define checking rule)

per transaction of Inventory Management: which checking rule applies (object Transaction codes)

MvTA. Val.

update Qty update S Mvt Rec Cns Av201 P201 X A201 X K A201 X P201 X201 X X A201 X X K A

201 X X P202 P202 X P202 X202 X X202 X X K202 X X P221 Q A221 Q P A221 Q L A221 Q L P A221 X A221 X K A221 X Q A221 X Q P A

This is an indicative table.

Checking Rule

ChR Description of checking rule01 Checking rule 0102 Checking rule 0203 Checking rule 03A SD orderAE SD order; make-to-order stockAQ SD order; project stockAV SD order; returnable packagingAW SD order; consignmentB SD deliveryBB SD delivery; customer stockBE SD delivery; make-to-order stockBO Backorder processingBQ SD delivery; project stockBV SD delivery; returnable packagingBW SD delivery; consignment

Define Checking Rule

Transaction Codes

TCode Transaction text ChR Checking ruleCO27 Picking listMB11 Goods MovementMB1A Goods Withdrawal 03 Checking rule 03MB1B Transfer PostingMB26 Picking listMIGO_GI Goods MovementMIGO_TR Transfer Posting

8.14 Generate Physical Inventory Documents for Goods Movements

Menu path


Management and Physical Inventory ® Goods Issue/Transfer Postings®Generate

Physical Inventory Documents for Goods Movements

Transaction

Code OMCC

Configuration

Description

In this step, we define for each plant and movement type whether a physical inventory

document is automatically generated when posting a goods movement.

We can create a physical inventory document in addition to the material document at the

time of a goods movement. This function is important when inventory differences are

posted from the Warehouse Management System. These inventory differences are

thereby documented in Inventory Management with a physical inventory document.

In order to create an inventory document in addition to a material document for a goods

movement, the following conditions must be met:

In the plant, we must define the transaction/event type WV for automatically generated

physical inventory documents.

We must define the document number assignment for this transaction/event type.

Automatic generation of physical inventory documents must be allowed for the movement

type.

MvT Idoc717 X718 X

The above list is indicative

8.15 Check Tolerance Limits

Menu path


Management and Physical Inventory ® Goods Receipt ® Set Tolerance Limits

Transaction

Code OMC0

Configuration

Description

In this step, we set the tolerance limits for goods receipts.

When processing a goods receipt, the system checks each item to determine whether the

goods receipt varies from the purchase order or the material master data.

The different types of variances are defined by tolerance keys. For each tolerance key,

tolerance limits can be set per company code.

The following variances are checked in Inventory Management:

Variance in the purchase order price quantity

(Explanation)

For this variance, two tolerance keys are provided:Tolerance key B1 (error message)

We use tolerance key B1 to define the maximum percentage variance. If the variance is

greater than the maximum variance, the system creates an error message. The user

cannot post the goods receipt.Tolerance key B2 (warning message)

Tolerance key B2 defines the percentage variance from which a warning message is to

be issued. It is possible to post the goods receipt.

Variance for the moving average price of the material

(Explanation)

We use tolerance key VP to define the percentage variance from which a warning

message is issued. This warning message indicates a price change.

8.16 Create Storage Locations Automatically

Menu path


Management and Physical Inventory ® Goods Receipt ® Create Storage

Locations Automatically

Transaction

Code OMB3

Configuration

Description


for goods receipts.

This is advisable if we want to post a goods receipt without having to maintain the storage

location view of the material master record in advance.



The storage location data is only created if the quantity is posted to 'standard' storage

location stock. It is not created for receipts into a special stock (for example, into sales

order stock).

8.17 Set Manual Account Assignment

Menu path


Management and Physical Inventory ® Goods Receipt ® Set Manual Account

Assignment

Transaction

Code OMCH

Configuration

Description



When we enter goods receipts which are assigned to a cost account, we can enter the

account manually. In doing so, we change the account assignment predefined as


8.18 Define Screen Layout

Menu path


Management and Physical Inventory ® Goods Receipt ® Define Screen Layout

Transaction

Code OMCJ

Configuration

Description

In this step, we set the field selection for the goods receipt movement types.

When entering a goods receipt, the field selection controls which fields (account

assignment fields) are

ready for input ( optional entry fields)

have to be filled (required entry fields)

suppressed fields

In Inventory Management, the field selection depends on the movement type.


Menu path


Management and Physical Inventory ® Goods Receipt ® Maintain Copy Rules for

Reference Documents

Transaction

Code SPRO

Configuration

Description




not want to adopt some items.

TCode Transaction text PrslMB01 Post Goods Receipt for PO XMB0A Post Goods Receipt for PO XMB1C Other Goods Receipts XMB31 Goods Receipt for Production Order XMBRL Return Delivery for Matl Document XMBSF Release Blocked Stock via Mat. Doc. XMBSL Copy Material Document XMBST Cancel Material Document X

8.20 Set Dynamic Availability Check

Menu path

Implementation Guide for R/3 Customizing (IMG) ® Materials Management ® Inventory Management

and Physical Inventory ® Goods Receipt ® Set Dynamic Availability Check

Transacti

on Code OMCM


Configur

ation

Descripti

on




The system checks whether the material to be withdrawn is available and issues a message, if

necessary.

Movement Type

MvT A. Val.updateQty update S Mvt Rec Cns Av

101 X Q B V101 X Q B X101 X Q B X P101 X Q F101 X Q F P101 X B101 X B A101 X B V101 X B X101 X B X A101 X B X V101 X X B101 X X B A

Checking Rule

ChR Description of checking rule01 Checking rule 0102 Checking rule 0203 Checking rule 03A SD orderAE SD order; make-to-order stockAQ SD order; project stockAV SD order; returnable packagingAW SD order; consignmentB SD deliveryBB SD delivery; customer stockBE SD delivery; make-to-order stockBO Backorder processingBQ SD delivery; project stockBV SD delivery; returnable packagingBW SD delivery; consignment

Transaction Code

TCode Transaction text ChR Checking ruleMB01 Post Goods Receipt for POMB0A Post Goods Receipt for POMB1C Other Goods Receipts 03 Checking rule 03MB31 Goods Receipt for Production Order 03 Checking rule 03MBNL Subsequent Delivery f. Material Doc. 03 Checking rule 03MBRL Return Delivery for Matl Document

MBSF Release Blocked Stock via Mat. Doc.MBSL Copy Material Document 03 Checking rule 03MBST Cancel Material DocumentMIGO_GO Goods MovementMIGO_GR Goods Movement

8.21 Set “Delivery Completed” Indicator

Menu path


Management and Physical Inventory ® Goods Receipt ® Set “Delivery

Completed” Indicator

Transaction

Code SPRO

Configuration

Description

In this step, we can define that the R/3 System automatically suggests

the delivery completed indicator for goods receipts if the delivered quantity lies within the

under/over-delivery tolerance

The "delivery completed" indicator has the following effects:

The item is regarded as closed, even if the total quantity was not delivered.

A further delivery is not expected, may, however, arrive.

In the next goods receipt, the item appears on the selection list but has no selection

indicator.

The item can be reorganized even if the total quantity has not been delivered.

Note

Even if the "delivery completed" indicator has not been set, an item is considered

closed once the total quantity has been delivered. This means that the "delivery

completed" indicator is not necessary in this case.

8.22 Set Expiration Date Check

Menu path


Management and Physical Inventory ® Goods Receipt ® Set Expiration Date

Check

Transaction

Code OMJ5

Configuration

Description

In this step, we set the material shelf life expiration date check for goods receipts for each

plant and movement type.

Prerequisites

The shelf life expiration date of a material can only be entered if:

the minimum remaining shelf life is maintained in the material master record

The minimum remaining shelf life is the time the material must still be usable, so that the

goods receipt is accepted by the system. We can define the time unit the system uses in

the storage data of the material master record in the ‘Period indicator’ field.

the shelf life expiration date check is active in the plant

the shelf life expiration date check is active for the movement type

No expiration date check has been activated for ITZ.

8.23 Create Storage Location automatically for automatic movements

Menu path


Management and Physical Inventory ® Automatic Movements ® Create Storage

Locations automatically

Transaction

Code OMJ8

Configuration

Description


for automatic goods movements.

This is advisable for goods movements via Shipping or when we post physical inventory

differences, for example.



The storage location data is only created if the quantity is posted to 'standard'

storage location stock. It is not created for receipts into a special stock (for example,

into sales order stock).

8.24 Set manual account assignment for automatic movements

Menu path


Management and Physical Inventory ® Automatic Movements ® Set manual

account assignment for automatic movements

Transaction

Code OMJ9

Configuration

Description

Maintenance of this indicator is only useful in conjunction with movements for which a G/L

account can be entered or is provided by the calling program.



When we enter material movements that are assigned to a cost account, we can enter the

account number manually. In doing so, we change the account assignment predefined as


MvT Acct MvT Acct121 601131 602132 603 -340 - 604 -341 - 621 -342 - 622 -543 - 623 -544 - 624 -545 - 631 -546 - 632 -

8.25 Define Screen Layout for automatic movements

Menu path


Management and Physical Inventory ® Automatic Movements ® Define Screen

Layout

Transaction

Code OMJA

Configuration

Description In this step, we set the screen Layout for automatic movement types.

8.26 Generate Physical Inventory Documents for Goods Movements

Menu path


Management and Physical Inventory ® Automatic Movements ® Generate Physical

Inventory Documents for Goods Movements

Transaction

Code OMJC

Configuration

Description

In this step, we define for each plant and movement type whether a physical inventory

document is created automatically when a goods movement is posted.

In conjunction with automatic movements, please also note that this indicator is not set for

goods movements which are created from within a physical inventory since, in this case,

the physical inventory document already exists. This applies to movement types 701 to

708.

8.27 Define Default Values for Reservations

Menu path


Management and Physical Inventory ® Reservations ® Define Default Values

Transaction

Code OMBN

In this step, we specify the default values for the following functions for each plant:

Configuration

Description

allow goods movements for reservations

delete reservations

create storage-location stock data automatically for reservations

Allow movements for reservations

We can only post a goods movement with reference to a reservation if the Movement

allowed indicator is set in the reservation item.

We are not using Reservations for ITZ.

Delete reservations

The management program sets the deletion indicator for reservation items whose

requirements date is earlier than the number of days specified here.

Create storage-location stock data automatically for reservations

When this indicator is set, the storage-location stock data is automatically created when a

reservation is posted. This applies both to planned outward movements and planned

receipts.


Menu path


Management and Physical Inventory ® Reservations ® Define Default Values

Transaction

Code SPRO

Configuration

Description




not want to adopt some items

8.29 Set Dynamic Availability Check for Reservations

Menu path


Management and Physical Inventory ® Reservations ® Set Dynamic Availability

Check

Transaction

Code OMB1

Configuration

Description





The system checks whether the material to be withdrawn is available and issues a

message, if necessary.

TCode Transaction text ChR Checking ruleMB21 Create Reservation 03 Checking rule 03MB22 Change Reservation 03 Checking rule 03

8.30 Default Values for Physical Inventory

Menu path


Management and Physical Inventory ® Physical Inventory ® Default Values for

Physical Inventory

Transaction

Code SPRO

Configuration

Description

In this step, we specify the following default values for physical inventory for each plant:

Pre-settings for entering physical inventory documents

the stock type (unrestricted-use, in quality inspection, blocked)

the indicator for batch determination (in the foreground or in the background)

the unit of entry (stock keeping unit or unit of issue)

These indicators are suggested as default values when we enter a physical inventory

document. But we can also change them there.

Pre-settings for entering physical inventory documents

Reason for inventory difference

The default value we specify here is only displayed when we enter an inventory difference

without reference to the corresponding document. But we can also change the default

value here.

Note:

We only see this field when we enter inventory differences if we have activated it in the

step Field selection for physical inventory.

8.31 Record Reasons for Goods Movements

Menu path


Management and Physical Inventory ® Movement Types ® Record Reasons for

Goods Movements

Transaction

Code OMBS

Configuration

Description

In this step, we can carry out the following for each movement type:maintain the input status of the Reason fieldstore a key that gives a reason for the movement (for example, reason for return delivery) and a corresponding text.When we enter a goods movement, we can only enter reasons which have been defined for the movement type here.

8.32 Copy, Change Movement Types

Menu path Implementation Guide for R/3 Customizing (IMG) ® Materials Management ®Inventory

Management and Physical Inventory ® Movement Types ® Copy, Change

Movement Types

Transaction

Code OMJJ

Configuration

Description

In this step, we canchange the setting of existing movement typesdefine new movement typesWhen we enter a goods movement, we must always enter the movement type. The movement type has important control functions in Inventory Management. It is essential forupdating the quantity fieldsupdating the stock and consumption accountsselection of the fields used for entering documentsprinting goods receipt/issue slips

9 Materials Management – Valuation and Account Assignment

9.1 Split Valuation

Menu path

Implementation Guide for R/3 Customizing (IMG) ® Materials Management ®Valuation

and Account Assignment ® Split Valuation ® Activate Split Valuation

Transaction

Code OMW0

Configuration

Description

You configure whether split valuation is allowed at your company. If you generally allow

split valuation, this does not mean that you must valuate each material on this basis. You

decide whether to do so or not for a particular material when creating the material master

record.

9.2 Configure Split Valuation

Menu path

Implementation Guide for R/3 Customizing (IMG) ® Materials Management ®Valuation

and Account Assignment ® Split Valuation ® Configure Split Valuation

Transaction

Code OMWC

Configuration

Description

In split valuation, we can distinguish between partial stocks of a material

according to certain criteria and valuate them separately.

The material stock is divided according to valuation category and valuation

type:

The valuation category determines how the partial stocks are divided, that is,

according to which criteria.

The valuation type describes the characteristics of the individual stocks.

http://scn.sap.com/sapevent:DOCU_LINK/GL:valuation_type

http://scn.sap.com/sapevent:DOCU_LINK/GL:valuation_category

With the function "Setting" we can determine:

which valuation categories exist in our company (global categories)

which valuation types exist in our company (global types)

which valuation types belong to which valuation category

which valuation categories exist in a valuation area (local categories)

To select split valuation, proceed as follows:1. 1. Determine the valuation categories and valuation types that are allowed for allvaluation

areas:Global valuation categories via menu "Goto --> Global Categories"

Global valuation types via menu "Goto --> Global Types"

1. 2. Allocate the valuation types to the valuation categories.

a) Select "Goto --> Global Categories".

b) Position the cursor on a valuation category and select "Goto -->

Global Categories --> Allocations --> Types->Category".

c) Activate the valuation types you want.

1. 3. Determine the local valuation categories for each valuation area.

a) Select "Goto --> Local definitions".

b) Position the cursor on a valuation area and select "Goto --> Local

Definitions --> Allocate Categories->Org.units". You obtain a list of the

global valuation categories.

c) Activate the categories to be used in this valuation area.

The system creates the local valuation types based on the allocations under

point 2.

http://scn.sap.com/sapevent:DOCU_LINK/GL:valuation_area

http://scn.sap.com/sapevent:DOCU_LINK/GL:valuation_area

SAP MM Configuration

Documents

plant level

plant stocks

storage location level

company code level

material stocks

single company code

company codes

storage locationmenu