Chapter 04: Procurement

GBI Configuration Advanced

MOTIVATION
In this exercise, you will do the following for the procurement processes:
1. Configure the enterprise structure
2. Configure the business rules and parameters
3. Setup up necessary master data
4. Test the processes
ACKNOWLEDGEMENT
These are advanced versions of the GBI configuration exercises initially developed by
Simha R. Magal, Stefan Weidner, and Tom Wilder.
These exercises include complex configuration concepts discussed in the book, Business
Process Configuration with SAP ERP (Epistemy Press, 2017).
This material was prepared with the assistance of student interns at the Seidman ERP
program at Grand Valley State University and GRAs at the Robinson College of Business,
Georgia State University.
PRODUCT
SAP S/4HANA 1709
REVISED
05/30/2019
FOCUS
Procurement
AUTHORS
Simha R. Magal
Ray Boykin
Bipin Prabhakar
Mary Beth Goodrich
VERSION
1.0
TESTED
Date: 04/01/2019
System: MGL
PREREQUISITES
1. You should be familiar with navigation in SAP S/4HANA.
2. You should be familiar with executing procurement processes in SAP S/4HANA
 © 2019 Epistemy Press, LLC.
Screenshots © 2019, SAP SE

Overview and Table of Contents

Table of Contents
Part I - Enterprise Structure 3
Part II - Rules and Parameters 22
Part III - Master Data 51
Part IV - Process Execution 58
Part V - Exercise Deliverables 70

1. Enterprise Structure
Table of Contents
Section 1.1: Define Plants 5
Section 1.2: View Calendar Options 8
Section 1.3: Assign Plants to Company Code 9
Section 1.4: View Material Valuation Level 10
Section 1.5: Assign Material Ledger Type To Valuation Areas 11
Section 1.6: Activate Material Ledger 12
Section 1.7: Set Valuation Areas as Productive 14
Section 1.8: Maintain Purchasing Organization 16
Section 1.9: Assign Purchasing Organization to Company Code 17
Section 1.10: Assign Purchasing Organization to Plants 18
Section 1.11: Create Purchasing Group 19
Section 1.12: Maintain Storage Locations 20
Section 2.1: Determine Tax Versions 23
Section 2.2: Maintain Default Values for Tax Codes 24
Section 2.3: View Different Material Types 26
Section 2.4: Define Attributes of Material Types 28
Section 2.5: View Account Category and Valuation Class 32
Section 2.6: Group Together Valuation Areas 35
Section 2.7: Configure Automatic Postings 37
Section 2.8: View Tax Account Determination 41
Section 2.9: Set Tolerance for Price Variance 43
Section 2.10: Set Tolerance for Goods Receipt 45
Section 2.11: Set Tolerance for Invoice 46
Section 2.12: Define Tolerances (Vendors) 47
Section 2.13: Define Plant Parameters 49
Section 3.1: Create Trading Goods 52
Section 3.2: Create Vendor 54
Section 4.1: Create Purchase Requisition 59
Section 4.2: Create Purchase Order 61
Section 4.3: Create Goods Receipt 63
Section 4.4: Receive Invoice 65
Section 4.5: Pay Vendor 66
Section 4.6: View Info Record 67
Section 4.7: View Vendor Account Balance 68
Section 4.8: Display G/L Account Balance 69
1. Define Plants
In this section, you will create three GBI plants (Dallas, Miami, and San Diego). Each Plant is located
in the United States and operates within your legal entity (e.g., your Company Code). You will give
each plant a unique identifier, an address, and a tax code.
1. In the “SAP Easy Access” screen, follow the navigation path below:
Navigation
SAP Customizing Implementation Guide🡪 Enterprise Structure 🡪 Definition🡪 Logistics –
General🡪 Define, copy, delete, check plant
1. What is the transaction code to define plants?
🖉
2. In the “Select Activity” pop-up, double-click “Define Plant”.
3. In the “Change View “Plants”: Overview” screen, click New Entries .
4. In the “New Entries: Details of Added Entries” screen, enter the following information:
 Attribute Description Data Value
Plant Key uniquely identifying a plant. DL##
Name 1 Name ## Plant Dallas
Factory Calendar Identifies the factory calendar for this plant. USA

5. Click Address .
6. In the “Edit address: DL##” pop-up, enter the following information:
Attribute Description Data Value
Title Possible titles are stored in a check table. Company
Name Name of an address. ## Plant Dallas
Search term ½ Short description used for search helps. 0##
Street Street name as part of the address. N. O’Connor Blvd
House Number House number as part of address. 5215
Postal Code Postal code as part of the address. 75039
City City name as part of the address. Dallas
Country Country the plant is located in. USA
Region Region of the Country Texas

7. In the “Street Address” screen section, click more fields .

8. Enter the following information:
Attribute Description Data Value
Jurisdiction Specifies the tax jurisdiction. Texas Jurisdiction Code
9. Click Copy .

10. In the “New Entries: Details of Added Entries” screen, click Save .
11. In the “Edit Address: DL##” pop-up, click Copy .
 You will receive a message that says, “Data was saved”.

12. In the “New Entries: Details of Added Entries” screen, click back .
13. Repeat steps I.1.3 – I.1.11 for your Miami and San Diego plants. Use the following
information:
MIAMI PLANT
Attribute Description Data Value
Plant Key uniquely identifying a plant. MI##
Name 1 Name ## DC Miami
Factory The factory calendar that is valid for this USA
Calendar plant.
ADDRESS
Title Possible titles are stored in a check table Company
Name Name of an address. ## DC Miami
Search term ½ Short description used for search helps. 0##
Street Street name as part of the address. Blue Lagoon Drive
House Number House number as part of the address. 5341
Postal Code Postal code as part of the address. 33126
City City name as part of the address. Miami
Country Country the Plant is located in. USA
Region Region of the Country Florida
Jurisdiction Specifies the tax Jurisdiction Florida Jurisdiction Code
SAN DIEGO PLANT
 Plant Key uniquely identifying a plant. SD##
Name 1 Name ## DC San Diego
Factory The factory calendar that is valid for this USA
Calendar plant.
ADDRESS
Title Possible titles are stored in a check table. Company
Name Name of an address. ## DC San Diego
Search term ½ Short description used for search helps. 0##
Street Street name as part of the address. Spear Street
House Number House Number as part of the address. 150
Postal Code Postal code as part of the address. 94105
City City name as part of the address. San Diego
Country Country plant is located in. USA
Region Region of the Country California
Jurisdiction Specifies the tax jurisdiction. California Jurisdiction Code
2. View Calendar Options
In this section, you will view the factory and holiday calendars. This will provide an idea of what the
fiscal year consists of and how it is configured with holidays that occur over the year.
14. In the “SAP Easy Access” screen, follow the navigation path below:
Navigation
SAP Customizing Implementation Guide🡪 SAP NetWeaver 🡪 General Settings 🡪 Maintain
Calendar
2. What is the transaction code to view the calendar options?
🖉
15. In the “SAP Calendar: Main Menu” screen, select the “Factory calendar” radio button.
16. Click display .
17. In the “Display Factory Calendar: Overview” screen, highlight the “USA” Calendar ID, click
display calendar .
3. How many workdays does the year 2016 have?
🖉

1. In the “Display Factory Calendar: Year Overview” screen, click back .

2. In the “Display Factory Calendar: Overview” screen, click back .

3. In the “SAP Calendar: Main Menu” screen, click the “Holiday calendar” radio button.
4. Click display .
5. In the “Display Public Holiday Calendar: Overview” screen, highlight the “USA” Holiday
Calendar.
6. Click display calendar .
4. How many Holidays are on Sunday according to the 2016 holiday calendar?
🖉
7. In the “Display Public Holiday Calendar: Year Overview” screen, double click the
year “2019”.
3. Assign Plants to Company Code
In this section, you will associate your three new Plants to your Company Code. Each Plant can be
associated with exactly one Company Code.
8. In the “SAP Easy Access” screen, follow the navigation path below:
Navigation
SAP Customizing Implementation Guide🡪 Enterprise Structure 🡪 Assignment 🡪 Logistics –
General🡪 Assign Plants to Company Code
5. What is the transaction code to assign plants to company codes?
🖉
9. In the “Change View “Assignment Plant – Company Code”: Overview” screen, Click New
Entries .
10. In the “New Entries: Overview of Added Entries” screen, enter the following information:
Attribute Description Data Value
CoCd Unique key identifying a company Your Global Bike Inc.
Plnt Unique key identifying a plant Your Plant Dallas
CoCd Unique key identifying a company Your Global Bike Inc.
Plnt Unique key identifying a plant Your DC Miami
CoCd Unique key identifying a company Your Global Bike Inc.
Plnt Unique key identifying a plant Your DC San Diego

11. Click Enter .

12. Click Save .

 You will receive a message that says, “Data was saved”.
4. View Material Valuation Level
In this section, you will view what organizational level materials are valued at.
 Be sure to use your Display/Change button so you do not change anything in this
screen.
13. In the “SAP Easy Access” screen, follow the navigation path below:
Navigation
SAP Customizing Implementation Guide🡪 Enterprise Structure 🡪 Definition 🡪 Logistics –
General 🡪 Define valuation level
6. What is the Transaction Code to Define Valuation Level?
🖉
7. What is the Valuation Level?
🖉
5. Assign Material Ledger Type To Valuation Areas
In this step, you will assign a material ledger type to each of your plants. The material ledger type
determines the currency in which materials will be evaluated. Each of GBI’s plants will use the
company code currency for valuation.
14. In the “SAP Easy Access Menu”, follow the menu path below:
Navigation
SAP Customizing Implementation Guide 🡪 Controlling 🡪 Product Cost Controlling
-🡪 Actual Costing/Material Ledger 🡪 Assign Material Ledger Types to Valuation Area
8. What is the transaction code to Assign Material Ledger Types to Valuation Areas?
🖉
15. In the “Change View “Assignment of Material Ledger Types to Valuation Areas”:” screen,
click New Entries .
16. In the “New Entries: Overview of Added Entries” screen, enter the following information:
Attribute Description Data Value
 Valuation area Organizational level at which the material is Your Dallas Plant
valuated
Mat. Ledger type A combination of multiple currencies or Crcy Type/Val. 10
valuations that are kept in the material ledger
for a particular valuation area.
Next Line
Valuation area Organizational level at which the material is Your Miami Plant
valuated
Mat. Ledger type A combination of multiple currencies or Crcy Type/Val. 10
valuations that are kept in the material ledger
for a particular valuation area.
Next Line
Valuation area Organizational level at which the material is Your San Diego Plant
valuated
Mat. Ledger type A combination of multiple currencies or Crcy Type/Val. 10
valuations that are kept in the material ledger
for a particular valuation area.

17. Click Save .

 You will receive a message, “Data was saved”.
6. Activate Material Ledger
When a plant is created, the material ledger must be activated to ensure that costs are reconciled
correctly across GBI. The material ledger acts as a subledger for material inventories and enables a
company to value its inventory in multiple currencies.
Navigation
SAP Customizing Implementation Guide 🡪 Controlling 🡪 Product Cost Controlling 🡪 Actual
Costing/Material Ledger 🡪 Activate Material Ledger for Valuation Areas
9. What is the t-code to activate the material ledger for valuation areas?
🖉
1. In the Select Activity pop-up, double click Activate Material Ledger
2. In the “Change View “Activation of Material Ledger”: Overview” screen, enter the following
information:
Attribute Description Data Value
Valuation area The level materials are evaluated at Your Dallas Plant
Company Code Identifies your GBI Your Global Bikes Inc.
Mat. Ledger type A combination of multiple currencies or 9000
valuations that are kept in the material
ledger for a particular valuation area.
ML Act. Indicates if the material ledger is active Selected
Price Deter. Price determination Transaction Based
Next Line
Valuation area The level materials are evaluated at Your Miami Plant
Company Code Identifies your GBI Your Global Bikes Inc.
Mat. Ledger type A combination of multiple currencies or 9000
valuations that are kept in the material
ledger for a particular valuation area.
ML Act. Indicates if the material ledger is active Selected
Price Deter. Price determination Transaction Based
Next Line
 Valuation area The level materials are evaluated at Your San Diego Plant
Company Code Identifies your GBI Your Global Bikes Inc.
Mat. Ledger type A combination of multiple currencies or 9000
valuations that are kept in the material
ledger for a particular valuation area.
ML Act. Indicates if the material ledger is active Selected
Price Deter. Price determination Transaction Based
3. Click Save .
4. In the Information pop-up, Click Enter .
 You will receive a message, “Data was saved”.
7. Set Valuation Areas as Productive
In the section, you will set each plant to productive. This enables materials to be extended in
accounting and costing views in plants that have been assigned a material ledger.
5. In the “SAP Easy Access” menu, follow the navigation path below:
Navigation
Logistics 🡪 Material Management 🡪 Valuation 🡪 Actual Costing/Material
Ledger 🡪 Environment 🡪 Production Startup 🡪 Set Valuation Areas as Productive
10. What is the t-code to Set Valuation Areas as Productive?
🖉
6. In the “Production Startup of Mat. Ledger” enter the following information:
Attribute Description Data Value
Plant The level materials are evaluated Your Dallas Plant
at
Background Processing Indicates if the startup will run in Deselected
the background
Test Run Indicates if the run will be a Deselected
simulation
7. Click Execute .
 You will receive a message, “Step: Unlock materials in plant”.

8. Click Back twice

9. In the “Production Startup of Mat. Ledger” enter the following information:
Attribute Description Data Value
Valuation area The level materials are evaluated Your DC Miami Plant
at
Background Processing Indicates if the startup will run in Deselected
the background
Test Run Indicates if the run will be a Deselected
simulation
10. Click Execute .
 You will receive a message, “Step: Unlock materials in plant”.

11. Click Back twice .

12. In the “Production Startup of Mat. Ledger” enter the following information:
Attribute Description Data Value
Valuation area The level materials are evaluated Your DC San Diego Plant
at
Background Processing Indicates if the startup will run in Deselected
 the background
Test Run Indicates if the run will be a Deselected
simulation
13. Click Execute .
 You will receive a message, “The material ledger can be reconciled with FI in valuation area
US 25”.
8. Maintain Purchasing Organization
In this section, you will create a Purchasing Organization (US##). You need a purchasing organization
to negotiate conditions of purchase with vendors.
14. In the “SAP Easy Access” screen, follow the navigation path below:
Navigation
SAP Customizing Implementation Guide🡪 Enterprise Structure 🡪 Definition 🡪 Materials
Management 🡪 Maintain Purchasing Organization
11. What is the transaction code to maintain purchasing organizations?
🖉
15. In the “Change View “Purchasing Organizations”: Overview” screen, highlight Purch.
Organization “US00” row.
16. Click Copy As… .
 You will receive a message that says, “One entry chosen”
17. In the “Change View “Purchasing Organizations”: Overview of Selected Set” screen, change
the information to the following information:
Attribute Description Data Value
Purch. Organization Denotes the purchasing organization US##
Purch. Org. Descr. Description of the purchasing organiztion ## GBI US

18. Press Enter .

 You will receive a message that says, “Number of entries copied: 1”.

19. Click Save .

 You will receive a message that says, “Data was saved”.
1. Assign Purchasing Organization to Company Code
In this section, you will associate your Purchasing Organization (US##) to your Company Code. GBI
has adopted a company-level model. Your Purchasing Organization (US##) will be associated with
(only) your Company Code.
20. In the “SAP Easy Access” screen, follow the navigation path below:
Navigation
SAP Customizing Implementation Guide🡪 Enterprise Structure 🡪 Assignment 🡪 Materials
Management 🡪 Assign Purchasing Organization to Company Code
12. What is the transaction code to assign purchasing organization to a company code?
🖉
21. In the “Change View “Assign Purchasing Organization -> Company Code”: Overview” screen,
enter the following information:
Attribute Description Data Value
POrg Denotes the purchasing organization Your GBI US
Description Description of purchasing organization ## GBI US
CoCd The Company Code Your Global Bike Inc.

22. Click Save .

 You will receive the message “Data was saved”.
 2. Assign Purchasing Organization to Plants
In this section, you will associate your three Plants to your Purchasing Organization. In previous
steps, you created a Purchasing Organization (US##) and then associated that Purchasing
Organization to your Company Code. In this step, you will associate each of your Plants to that
Purchasing Organization. GBI manages their contracts and pricing through a company-level
procurement strategy. Specifically, all the plants within your Company Code (and only your Company
Code) are associated with your Purchasing Organization.
23. In the “SAP Easy Access” screen, follow the navigation path below:
Navigation
SAP Customizing Implementation Guide🡪 Enterprise Structure 🡪 Assignment 🡪 Materials
Management 🡪 Assign Purchasing Organization to Plant
13. What is the transaction code to assign a purchasing organization to plants?
🖉
24. In the “Change View “Assign Purchasing Organization to Plant”: Overview” screen, click New
Entries .
25. In the “New Entries: Overview of Added Entries” screen, enter the following information:
Attribute Description Data Value
POrg Unique key identifying a purchasing organization Your GBI US
Plnt Unique key identifying a plant Your Plant Dallas
POrg Unique key identifying a purchasing organization Your GBI US
Plnt Unique key identifying a plant Your DC Miami
POrg Unique key identifying a purchasing organization Your GBI US
Plnt Unique key identifying a plant Your DC San Diego
 Use the scrollbar if you don’t see your purchasing organization right away.

26. Click Save .

 You will receive a message that says, “Data was saved”.
3. Create Purchasing Group
In this section, you will create a Purchasing Group (N##). You need your Purchasing Group to do day-
to-day purchasing activities such as, approve Purchase Requisitions. In a later step, you will associate
your Purchasing Group to your materials.
27. In the “SAP Easy Access” screen, follow the navigation path below:
Navigation
SAP Customizing Implementation Guide🡪 Materials Management 🡪 Purchasing 🡪 Create
Purchasing Groups

14. What is the transaction code for creating a purchasing group?

🖉
28. In the “Change View “Purchasing Groups”: Overview” screen, click New

Entries .
29. In the “New Entries: Overview of Added Entries” screen, enter the following information:
Attribute Description Data Value
Purchasing Group Key for the purchasing group N##
Descr. Pur. Grp Description of Purchasing Group ## North America

30. Click Save .

 You will receive a message that says, “Data was saved”.
 4. Maintain Storage Locations
In this section, you will create Storage Locations within your three Plants. Storage Locations (e.g.,
Raw Material = RM##, Trading Goods = TG##, Finished Goods = FG##) indicate where material is
physically kept, track the on-hand quantity of each material, and indicate asset valuation. There
must be one or more storage locations within a plant. You can assign more than one storage location
to the same warehouse number within a plant. It is possible to store material data specific to a
storage location. Stock is managed only on a quantity basis and not on a value basis at storage
location level in the system.
31. In the “SAP Easy Access” screen, follow the navigation path below:
Navigation
SAP Customizing Implementation Guide🡪 Enterprise Structure🡪 Definition🡪 Materials
Management🡪 Maintain Storage Location
15. What is the transaction code to maintain storage locations?
🖉
32. In the “Determine Work Area: Entry” pop-up, enter the following information:
Attribute Description Data Value
Plant Key uniquely identifying a plant. Your Plant Dallas

33. Click Continue .

34. In the “Change View “Storage locations”: Overview” screen, click New

Entries .
35. In the “New Entries: Overview of Added Entries” screen, enter the following information:
Attribute Description Data Value
SLoc Number of storage location FG##
Description Description of storage location Finished Goods

SLoc Number of storage location MI##

Description Description of storage location Miscellaneous

SLoc Number of storage location SF##

Description Description of storage location Semi-Fin. Goods

SLoc Number of storage location RM##

Description Description of storage location Raw Materials
SLoc Number of storage location RE##
Description Description of storage location Returns

36. Click Save .

 You will receive a message that says, “Data was saved”.
37. Click Exit .
38. Repeat Steps I.12.2 – I.12.5 to complete your Miami and San Diego plants, use the
following information:
MIAMI Plant
Attribute Description Data Value
Plant Key uniquely identifying a plant. Your DC Miami
SLoc Number of storage location FG##
Description Description of storage location Finished Goods
 Next Line
SLoc Number of storage location MI##
Description Description of storage location Miscellaneous
Next Line
SLoc Number of storage location RE##
Description Description of storage location Returns
Next Line
SLoc Number of storage location TG##
Description Description of storage location Trading Goods
SAN DIEGO PLANT
Plant Key uniquely identifying a plant. Your DC San Diego
SLoc Number of storage location FG##
Description Description of storage location Finished Goods
Next Line
SLoc Number of storage location MI##
Description Description of storage location Miscellaneous
Next Line
SLoc Number of storage location RE##
Description Description of storage location Returns
Next Line
SLoc Number of storage location TG##
Description Description of storage location Trading Goods

2. Rules and Parameters

Table of Contents
Section 2.1: Determine Tax Versions 23
Section 2.2: Maintain Default Values for Tax Codes 24
Section 2.3: View Different Material Types 26
Section 2.4: Define Attributes of Material Types 28
Section 2.5: View Account Category and Valuation Class 32
Section 2.6: Group Together Valuation Areas 35
Section 2.7: Configure Automatic Postings 37
Section 2.8: View Tax Account Determination 41
Section 2.9: Set Tolerance for Price Variance 43
Section 2.10: Set Tolerance for Goods Receipt 45
Section 2.11: Set Tolerance for Invoice 46
Section 2.12: Define Tolerances (Vendors) 47
Section 2.13: Define Plant Parameters 49
5. Determine Tax Versions
In this section, you will set the number of tax codes and tax rates that can be associated with a given
vendor (or vendor invoice). SAP allows up to four different tax codes and tax rates per vendor (and
per vendor invoice). In this step, you limit GBI users to only one tax code and one tax rate per vendor
(and per vendor invoice) in order to minimize screen clutter and improve the user experience. Note
that for the first time we are not using the SAP Customizing Implementation Guide, but are directly
editing a table (T169P) using a simple editor.
39. In the “SAP Easy Access” screen, follow the navigation path below:
Navigation
SAP Customizing Implementation Guide 🡪 SAP Menu Bar 🡪 System 🡪 Services 🡪 Table
Maintenance 🡪 Extended Table Maintenance
40. In the “Edit Table Views: Initial Screen” screen, enter the following information:
Attribute Description Data Value
Table/View Name of table/view for extended table maintenance. T169P

41. Click Maintain .

42. In the “Change View Parameters, Invoice Verification”: Overview” screen, click New
Entries .
43. In the “New Entries: Details of Added Entries” screen, enter the following information:
Attribute Description Data Value
Company Code Organizational unit within financial accounting. Your Global Bike Inc.
PO Text Indicates whether you receive a message when Selected
you invoice a purchase order that informs you the
purchasing department has created header text
for this PO.
Tax version Determines how many different tax rates can be One tax amount and tax
entered directly on the vendor screen. code

44. Click Save .

 You will receive a message that says, “Data was saved”.
6. Maintain Default Values for Tax Codes
In this section, you will specify the default value for the tax code to be used during the Invoice
Verification process. GBI personnel will be more efficient during the Invoice Verification process
since the correct tax code is defaulted into their screen.
45. In the “SAP Easy Access” screen, follow the navigation path below:
Navigation
SAP Customizing Implementation Guide 🡪 Materials Management🡪 Logistics Invoice
Verification🡪 Incoming Invoice🡪 Maintain Default Values for Tax Codes
16. What is the transaction code to maintain default values for tax codes?
🖉
46. In the “Change View “Tax Defaults in Invoice Verification”: Overview” screen, click New
Entries .
47. In the “New Entries: Details of Added Entries” screen, enter the following information:
Attribute Description Data Value
Company Code Organizational unit within financial accounting. Your Global Bike Inc.

48. Click Enter .

49. Enter the following information:
Attribute Description Data Value
(Defaults, domestic) A tax category which must be taken into consideration Input Tax
Tax Code when making a tax return to the tax authorities.

50. Click Save .

 You will receive a message that says, “Data was saved”.
51. In the “SAP Easy Access” screen, follow the navigation below:
Navigation
SAP Customizing Implementation Guide 🡪 Financial Accounting 🡪 Financial Accounting
Global Settings 🡪 Tax on Sales/Purchases 🡪 Calculation 🡪 Define Tax Codes for Sales and
Purchases
52. In the “Country” pop-up, enter the following information:
Attribute Description Data Value
Country The country in which you wish to check the tax code USA

53. Click Continue .

54. In the “Maintain Tax Codes: Initial Screen” screen, enter the following information:
Attribute Description Data Value
Tax Code Represents a tax category. Input Tax
Tax Jurisdiction Defines the tax authority you must pay your taxes. Texas

55. Click Enter .

 You do NOT have the ability to use your Display/Change button . Be extra careful you do
not change anything in this screen.

 Click on save
17. What is the Procedure for these tax rates?
🖉
18. What is the Tax Percent Rate for Expensed Items?
🖉
7. View Different Material Types
In this section, you will view the different material types that have been pre-configured in GBI. Each
material created in the system will fall under one of these material types. Material types also help
determine user departments, price control, account category, and valuation.
 Be sure to use your Display/Change button so you do not change anything in this
screen.
56. In the “SAP Easy Access” screen, follow the navigation path below:
Navigation
SAP Customizing Implementation Guide🡪 Logistics – General🡪 Material Master🡪 Basic
Settings🡪 Material Types🡪 Define Attributes of Material Types
19. What is the transaction code to view different material types?
🖉
57. In the “Change View “Material types”: Overview” screen, highlight the “Finished
Product” material type.
58. Click Details .
59. In the “Display View “Material Types”: Overview” screen, answer the following questions:
20. What is the Price Control for finished goods?
🖉
21. What is the Acct cat. reference for finished goods?
🖉
22. What is the Quantity/value updating radio button selected for finished goods?
🖉
60. Repeat steps II.3.2 – II.3.4 for the “Trading Goods” and “Nonvaluated materials” material
types.
23. What is the Price Control for trading goods?
🖉
24. What is the Acct cat. reference for trading goods?
🖉
25. What is the Quantity/value updating radio button selected for trading goods?
🖉
26. What is the Price control for nonvaluated materials?
🖉
27. What is the Acct cat. reference for nonvaluated materials?
🖉
28. What is the Quantity/value updating radio button selected for nonvaluated materials?
🖉

61. Click Exit .

8. Define Attributes of Material Types
In this section, you will specify valuation techniques for your Material Types. Material Types already
exist in your SAP instance. In this section, you indicate that you want to track the quantity and value
of each material type within each Storage Location within each Plant.
62. In the “SAP Easy Access” screen, follow the navigation path below:
Navigation
SAP Customizing Implementation Guide🡪 Logistics-General🡪 Material Master🡪 Basic
Settings🡪 Material Types🡪 Define Attributes of Material Types
29. What is the transaction code to define attributes of material types?
🖉
63. In the “Change View “Material types”: Overview” screen, highlight “FERT”.
64. Double click the “Quality/value updating” folder under the Dialog Structure.
65. In the “Change View “Quantity/value updating”: Overview” screen, enter the following
information:
Attribute Description Data Value
Val. Area Organizational level at which the material is valuated. DL##
Matl type Key that assigns the material to a group of materials. FERT
Qty updating Specifies that the material is managed on a quantity basis Selected
in the material master record for the valuation area.
Value Updating Specifies that the material is managed on a value basis in Selected
the material master record for the valuation area.

Val. Area Organizational level at which the material is valuated. MI##

Matl type Key that assigns the material to a group of materials. FERT
Qty updating Specifies that the material is managed on a quantity basis Selected
in the material master record for the valuation area.
Value updating Specifies that the material is managed on a value basis in Selected
the material master record for the valuation area.

Val. Area Organizational level at which the material is valuated. SD##

Matl type Key that assigns the material to a group of materials. FERT
Qty updating Specifies that the material is managed on a quantity basis Selected
in the material master record for the valuation area.
Value updating Specifies that the material is managed on a value basis in Selected
the material master record for the valuation area.
66. Click Save .

67. Click Enter to dismiss the message “Changing the quantity/value update may cause
inconsistencies”.
 You will receive a message that says, “Data was saved”.

68. Click Back .

69. In the “Change View “Material types”: Overview” screen, highlight “HALB”.
70. Double click the “Quality/value updating” folder under the Dialog Structure.
71. In the “Change View “Quantity/value updating”: Overview” screen, enter the following
information:
Attribute Description Data Value
Val. Area Organizational level at which the material is valuated. DL##
Matl type Key that assigns the material to a group of materials. HALB
Qty updating Specifies that the material is managed on a quantity basis Selected
in the material master record for the valuation area.
Value updating Specifies that the material is managed on a value basis in Selected
the material master record for the valuation area.

Val. Area Organizational level at which the material is valuated. MI##

Matl type Key that assigns the material to a group of materials. HALB
Qty updating Specifies that the material is managed on a quantity basis Selected
in the material master record for the valuation area.
Value updating Specifies that the material is managed on a value basis in Selected
the material master record for the valuation area.

Val. Area Organizational level at which the material is valuated. SD##

Matl type Key that assigns the material to a group of materials. HALB
Qty updating Specifies that the material is managed on a quantity basis Selected
in the material master record for the valuation area.
Value updating Specifies that the material is managed on a value basis in Selected
the material master record for the valuation area.

72. Click Save .

73. Click Enter to dismiss the message “Changing the quantity/value update may cause
inconsistencies”
 You will receive a message that says, “Data was saved”.

74. Click Back .

75. In the “Change View “Material types”: Overview” screen, highlight “HAWA”.
76. Double-click on the “Quantity/value updating” folder under the Dialog Structure.
77. In the “Change View “Quantity/value updating”: Overview” screen, enter the following
information:
Attribute Description Data Value
Val. Area Organizational level at which the material is valuated. MI##
Matl type Key that assigns the material to a group of materials. HAWA
Qty updating Specifies that the material is managed on a quantity basis Selected
in the material master record for the valuation area.
Value updating Specifies that the material is managed on a value basis in Selected
 the material master record for the valuation area.
Next Line
Val. Area Organizational level at which the material is valuated. SD##
Matl type Key that assigns the material to a group of materials. HAWA
Qty updating Specifies that the material is managed on a quantity basis Selected
in the material master record for the valuation area.
Value updating Specifies that the material is managed on a value basis in Selected
the material master record for the valuation area.
Next Line
Val. Area Organizational level at which the material is valuated. DL##
Matl type Key that assigns the material to a group of materials. HAWA
Qty updating Specifies that the material is managed on a quantity basis Selected
in the material master record for the valuation area.
Value updating Specifies that the material is managed on a value basis in Selected
the material master record for the valuation area.

78. Click Save .

 You will receive a message that says, “Data was saved”.

79. Click Back .

80. In the “Change View “Material types”: Overview” screen, highlight “ROH”.
81. In the “Change View “Material types”: Overview” screen double-click on “Quantity/value
updating”.
82. In the “Change View “Quantity/value updating”: Overview” screen, enter the following
information:
Attribute Description Data Value
Val. Area Organizational level at which the material is valuated. DL##
Matl type Key that assigns the material to a group of materials. ROH
Qty updating Specifies that the material is managed on a quantity basis Selected
in the material master record for the valuation area.
Value updating Specifies that the material is managed on a value basis in Selected
the material master record for the valuation area.
Next Line
Val. Area Organizational level at which the material is valuated. MI##
Matl type Key that assigns the material to a group of materials. ROH
Qty updating Specifies that the material is managed on a quantity basis Selected
in the material master record for the valuation area.
Value updating Specifies that the material is managed on a value basis in Selected
the material master record for the valuation area.
Next Line
Val. Area Organizational level at which the material is valuated. SD##
Matl type Key that assigns the material to a group of materials. ROH
Qty updating Specifies that the material is managed on a quantity basis Selected
in the material master record for the valuation area.
Value updating Specifies that the material is managed on a value basis in Selected
the material master record for the valuation area.

83. Click Save .

 You will receive a message that says, “Data was saved”.
1. View Account Category and Valuation Class
In this section, you will compare account categories and valuation classes to see how they are
connected.
84. In the “SAP Easy Access” screen, follow the navigation path below:
Navigation
SAP Menu 🡪 Logistics 🡪 Materials Management 🡪 Material
Master 🡪 Material 🡪 Display 🡪 Display Current
85. In the “Display Material (Initial Screen)” screen, enter the following information:
Attribute Description Data Value
Material Alphanumeric key uniquely identifying the Original SOCKET HEAD BOLT
material 5X20MM

86. Press Enter .

87. In the “Select View(s)” screen, click the Deselect All button .
88. Select “Accounting 1”.

89. In the “Select View(s)” screen, press Continue .

90. In the “Organizational Levels” screen, enter the following information:
Attribute Description Data Entry
Plant Key uniquely identifying a plant. Original Plant Dallas

91. Press Continue

30. What is the Valuation Class?
🖉

92. Click Back .

93. In the “Display Material (Initial Screen)” screen, enter the following information:
Attribute Description Data Value
Material Alphanumeric key uniquely identifying the material. Original Road Helmet

94. Press Enter .

95. In the “Select View(s)” screen, click the Deselect All button .
96. Select “Accounting 1”.

97. In the “Select View(s)” screen, press Continue .

98. In the “Organizational Levels” screen, enter the following information:
Attribute Description Data Entry
Plant Key uniquely identifying a plant. Original DC Miami

99. Press Enter .

31. What is the Valuation Class?
🖉

100. Click Back .

101. In the “Display Material (Initial Screen)” Screen, enter the following information:
Attribute Description Data Value
Material Alphanumeric key uniquely identifying the Original Deluxe Touring Bike
material (red)

102. Press Enter .

103. In the “Select View(s)” screen, click the Deselect All button .
104. Select “Accounting 1”.

105. In the “Select View(s)” screen, press Continue .

106. In the “Organizational Levels” screen, enter the following information:
Attribute Description Data Entry
Plant Key uniquely identifying a plant. Original Dallas Plant

107. Press Enter .

32. What is the Valuation Class?
🖉
108. Exit the current transaction.
109. In the “SAP Easy Access Menu” screen, and follow the navigation path below:
Navigation
SAP Customizing Implementation Guide🡪 Materials Management 🡪 Valuation and Account
Assignment 🡪 Account Determination 🡪 Account Determination Without Wizard 🡪 Define
Valuation Classes

 Be sure to use your Display/Change button so you do not change anything in this
screen.
110. In the “Account Category Reference/Valuation Classes” screen, Click Valuation

Class .
33. What is the Valuation Class for Raw Materials 1?
🖉
34. What is the Valuation Class for Trading Goods?
🖉
35. What is the Valuation Class for Finished Products?
🖉
36. What is the ARef for Raw Materials 1?
🖉
37. What is the ARef for Trading Goods?
🖉
38. What is the ARef for Finished Products?
🖉

1. Click Back .
2. In the “Account Category Reference/Valuation Classes” screen, Click Account category

reference .
39. What is the ARef for Raw Materials?
🖉
40. What is the ARef for Trading Goods?
🖉
41. What is the ARef for Finished Products?
🖉

1. Click Back .
2. In the “Account Category Reference/Valuation Classes” screen, Click Material type/account

category reference .
42. What is one example of a Material Type with a Raw Materials ARef?
🖉
43. What is one example of a Material Type with a Semifinished Products ARef?
🖉
44. What is one example of a Material Type with a Finished Product ARef?
🖉
1. Group Together Valuation Areas
In this section, you will associate each of your three Plants (DL##, MI##, SD##) to Valuation Grouping
Code 0001 (note that this Valuation Group Code already exists within your SAP instance). This will
ensure at a very high level that your three Plants use similar General Ledger conventions during
material movement transactions.
3. In the “SAP Easy Access” screen, follow the navigation path below:
Navigation
SAP Customizing Implementation Guide🡪 Materials Management 🡪 Valuation and Account
Assignment 🡪 Account Determination 🡪 Account Determination Without Wizard 🡪 Group
Together Valuation Areas
45. What is the transaction code to group together valuation areas?
🖉
4. In the “Change View “Acct Determination for Val. Areas”: Overview” screen, enter the
following information:
Attribute Description Data Value
Val. Area Org level at which the material is valuated DL##

CoCode Organizational unit within financial Accounting US##

Company Name Name of Company Code or Company ## Global Bike Inc.
Chrt/Accts Key that uniquely identifies a chart of accounts GL##
[Link] Code Indicates a grouping of valuation areas to facilitate the 0001
administration of the table of standard accounts by
minimizing the number of entries.
Next Line
Val. Area Org level at which the material is valuated MI##
CoCode Organizational unit within financial Accounting US##
Company Name Name of Company Code or Company ## Global Bike Inc.
Chrt/Accts Key that uniquely identifies a chart of accounts GL##
[Link] Code Indicates a grouping of valuation areas to facilitate the 0001
administration of the table of standard accounts by
minimizing the number of entries.
Next Line
Val. Area Org level at which the material is valuated SD##
CoCode Organizational unit within financial Accounting US##
Company Name Name of Company Code or Company ## Global Bike Inc.
Chrt/Accts Key that uniquely identifies a chart of accounts GL##
[Link] Code Indicates a grouping of valuation areas to facilitate the 0001
administration of the table of standard accounts by
minimizing the number of entries.

5. Click Save .
 You will receive a message that says, “Data was saved”.
6. Click Back .
7. Enter the transaction “Define Valuation Control”.
46. Is the Valuation Group Code Active?
🖉
1. Configure Automatic Postings
This section is where you will configure the General Ledger accounts associated with the Procure-to-
Pay process steps Create Goods Receipt and Invoice Verification. We are also designating General
Ledger accounts for posting a variety of transactions that are usually the result of small differences
(e.g., differences between the Goods Receipt and the Vendor Invoice amounts).
8. In the “SAP Easy Access” screen, follow the navigation path below:
Navigation
SAP Customizing Implementation Guide🡪 Materials Management🡪 Valuation and Account
Assignment🡪 Account Determination🡪 Account Determination Without
Wizard🡪 Configure Automatic Postings
47. What is the transaction code to configure automatic postings?
🖉

 You may receive a “DL## Valuation Area” pop-up, simply click to dismiss the
message.
9. In the “Automatic Posting” screen, click on the icon.
10. In the “Configuration Accounting Maintain: Automatic Posts – Procedures” screen, double-
click on “BSX”.
48. What is the description for BSX?
🖉
11. If you receive a “COA” Pop Up, enter Your Chart Of Accounts

12. In the “Configuration Accounting Maintain: Automatic Posts – Rules” screen, enter the
following information:
Attribute Description Data Value
Valuation modif. Adds this attribute to Automatic Posting – Accounts screen Selected
Valuation class Adds this attribute to Automatic Posting – Accounts screen Selected

13. Click Save .

 You will receive a message that says, “Changes have been made”.
14. In the “Configuration Accounting Maintain: Automatic Posts – Accounts” screen, enter the
following information:
Valuation modif. Valuation class Account
0001 Raw materials 1 Your Inventory-Raw Materials
0001 Trading Goods Your Inventory-Trading Goods
0001 Finished products Your Inventory-Finished Goods
0001 Semi-finished products Your Inventory-Semi-Finished Goods
 Use the accounts WITHOUT Direct Post.

15. Click Save .

 You will receive a message that says, “Changes have been made”.
16. Click Posting Key .
49. What is the Debit Posting Key?
🖉
50. What is the Credit Posting Key?
🖉
51. What is the Debit Posting Key Name?
🖉
52. What is the Credit Posting Key Name?
🖉

17. Click Back .

18. In the “Configuration Accounting Maintain: Automatic Posts – Procedures” screen, double-
click on “DIF”.
53. What is the description for DIF?
🖉

19. In the “Configuration Accounting Maintain: Automatic Posts - Rules” screen, click Save
 You will receive a message “Changes have been made”.
20. In the “Configuration Accounting Maintain: Automatic Posts – Accounts” screen, enter the
following information:
Attribute Description Data Value
Account The general ledger account number identifies the Your Purchase Price Difference
general ledger account in a chart of accounts.

21. Click Save .

 You will receive a message that says, “Changes have been made”.

22. Click Back .

23. In the “Configuration Accounting Maintain: Automatic Posts – Procedures” screen, double-
click on “PRD”.
54. What is the description for PRD?
🖉
24. In the “Configuration Accounting Maintain: Automatic Posts – Rules” screen, enter the
following information:
Attribute Description Data Value
Valuation modif. Adds this attribute to Automatic Posting – Accounts screen Selected
Valuation class Adds this attribute to Automatic Posting – Accounts screen Selected

25. Click Save .

 You will receive a message that says, “Changes have been made”.
26. In the “Configuration Accounting Maintain: Automatic Posts – Accounts” screen.
27. Enter the following information:
Valuation modif. Valuation class Account
0001 Raw Materials 1 Your Purchase Price Difference
0001 Operating supplies Your Purchase Price Difference
0001 Trading goods Your Purchase Price Difference

28. Click Save .

 You will receive a message that says, “Changes have been made”.

29. Click Back .

30. In the “Configuration Accounting Maintain: Automatic Posts – Procedures” screen, double-
click on “WRX”.
55. What is the description for WRX?
🖉
31. In the “Configuration Accounting Maintain: Automatic Posts – Rules” screen, enter the
following information:
Attribute Description Data Value
Valuation modif. Adds this attribute to Automatic Posting – Accounts screen Selected
Valuation class Adds this attribute to Automatic Posting – Accounts screen Selected

32. Click Save .

 You will receive a message that says, “Changes have been made”.
33. In the “Configuration Accounting Maintain: Automatic Posts – Accounts” screen, enter the
following information:
Valuation modif. Valuation class Account
0001 Raw Materials 1 Your Goods Receipt / Invoice Receipt Account
0001 Operating supplies Your Goods Receipt / Invoice Receipt Account
0001 Trading goods Your Goods Receipt / Invoice Receipt Account
0001 Finished products Your Goods Receipt / Invoice Receipt Account
0001 Semi-Finished products Your Goods Receipt / Invoice Receipt Account

34. Click Save .

 You will receive a message that says, “Changes have been made”.
2. View Tax Account Determination
In this section, you will view the general ledger account to which taxes accrue.
35. In the “SAP Easy Access” screen, follow the navigation path below:
Navigation
SAP Customizing Implementation Guide 🡪 Financial Accounting 🡪 Financial Accounting
Global Settings 🡪 Tax on Sales/Purchases 🡪 Posting 🡪 Define Tax Accounts
In the Change view ‘Posting key': Overview , select VS1 and double click on 'Rules' at the left. Click on
'New Entries' and create entry for your ChAc GL##..

 Select your ChAc GL## and click on 'Accounts' to the left. Enter your 'Accrued Tax- Input'
account.
36. In the “Change view Accounts: Overview” screen, answer the following questions.
56. What is the account defined for sales tax?
🖉
3. Set Tolerance for Price Variance
In this section, you set tolerance limits to be used when GBI sends a Purchase Order (PO) to a
Vendor. Specifically, when GBI sends a Purchase Order, management wants to validate that the
Purchase Order price for each material is close to the price on the material master record. You will
set a tolerance that the PO price can be 20% less or 10% more than the price on the material record.
37. In the “SAP Easy Access” screen, follow the navigation path below:
Navigation
SAP Customizing Implementation Guide🡪 Materials Management🡪 Purchasing🡪 Purchase
Order🡪 Set Tolerance Limits for Price Variance
57. What is the transaction code to set Tolerance Limits for Price Variance?
🖉
38. In the “Change View “Tolerance Limits”: Overview” screen, click New Entries
.
39. In the “New Entries: Details of Added Entries” screen, enter the following information:
Attribute Description Data Value
 Tolerance key Determines which tolerance limits are Price variance:
checked. purchasing
Company Code Organizational unit within financial Your Global Bike Inc.
accounting.
Lower limit Checks if the tolerance limit has been adhered Selected
Percentage to.
Check limit
Lower limit A maximum permissible percentage variation. 20
Percentage
Tolerance limit %
Upper limit Checks if the tolerance limit has been adhered Selected
Percentage to.
Check limit
Upper limit A maximum permissible percentage variation. 10
Percentage
Tolerance limit %
58. What does Tolerance key SE stand for?
🖉
1. Click Next Entry .
2. Enter the following information:
Attribute Description Data Value
Tolerance key Which tolerance limits are checked Max. cash disc. deduction
(purchasing)
Company Code Org unit within financial accounting Your Global Bike Inc.

3. Click Save .
 You will receive a message that says, “Data was saved”.
1. Set Tolerance for Goods Receipt
In this section, you set tolerance limits to be used when GBI receives material against a Purchase
Order. Specifically, management wants to validate that the:
 Quantity received by GBI is close to the quantity on the Purchase Order; and
 Goods receipt price is close to both the PO price and the moving average price for this
material.
4. In the “SAP Easy Access” screen, follow the navigation path below:
Navigation
SAP Customizing Implementation Guide 🡪 Materials Management 🡪 Inventory
Management and Physical Inventory 🡪 Goods Receipt 🡪 Set Tolerance Limits
59. What is the transaction code to set tolerance for goods receipt?
🖉
5. In the “Change View “Tolerance Limits”: Overview” screen, click New Entries
.
6. In the “New Entries: Details of Added Entries” screen, enter the following information:
Attribute Description Data Value
Tolerance key Determines which limits are checked. Order price qty variance (GR)/E-MSG
Company Code Organizational unit within accounting. Your Global Bike Inc.

7. Click on Next Entry .

8. Enter the following information:
Attribute Description Data Value
Tolerance key Determines which limits are checked. Order price qty variance (GR)/W-MSG
Company Code Organizational unit within accounting. Your Global Bike Inc.

9. Click Next Entry .

Enter the following information:
Attribute Description Data Value
Tolerance key Determines which tolerance limits are checked. Moving average price
variance
Company Code Organizational unit within financial accounting. Your Global Bike Inc.

10. Click Save .

 You will receive a message that says, “Data was saved”.
2. Set Tolerance for Invoice
In this section, management wants to validate that the Vendor Invoice price and quantity are close
to those on:
 Original Purchase Order
 Good Receipt transaction
This allows GBI to ensure that they are invoiced the appropriate amount for each Purchase Order.
11. In the “SAP Easy Access” screen, follow the navigation path below:
Navigation
SAP Customizing Implementation Guide🡪 Materials Management🡪 Logistics Invoice
Verification🡪 Invoice Block🡪 Set Tolerance Limits
60. What is the transaction code to set tolerance for invoice?
🖉
12. In the “Change View “Tolerance Limits”: Overview” screen, click New Entries
.
13. In the “New Entries: Details of Added Entries” screen, enter the following information:
Attribute Description Data Value
Tolerance key Determines which limits are checked. Amount for item without order
reference
Company Organizational unit within Your Global Bike Inc.
Code accounting.

14. Click Next Entry .

15. You have just created the Tolerance Key for an “amount for item without order reference”
in the steps above. Appendix D contains data about all the Tolerance Keys in GBI. Use the data in
appendix D to create the remaining Tolerance Keys.
 You may receive an error saying a certain tolerance key already exists. Simply skip that key
and move on.

16. Click Save .

 You will receive a message that says, “Data was saved”.
3. Define Tolerances (Vendors)
In this section, management wants to specify a default Vendor Tolerance (## GBI Default) to validate
that:
 Payment shortfall of up to $10 (or 1%) is automatically posted to a designated revenue
account.
 Payment excess of up to $1 (or 1%) is automatically posted to a designated expense account.
Tolerance Groups can be assigned to specific Vendors to allow more – or less – tolerance in the Pay
Vendor section.
17. In the “SAP Easy Access” screen, follow the navigation path below:
Navigation
SAP Customizing Implementation Guide🡪 Financial Accounting 🡪 Accounts Receivable
and Accounts Payable🡪 Business Transactions🡪 Outgoing Payments🡪 Manual Outgoing
Payments🡪 Define Tolerances (Vendors)
61. What is the transaction code to define vendor tolerances?
🖉
18. In the “Change View “Customer/Vendor Tolerances”: Overview” screen, click New
Entries .
19. In the “New Entries: Details of Added Entries” screen, enter the following information:
Attribute Description Data Value
Company Code Organizational unit within accounting. Your Global Bike Inc.
Tolerance group Group for customers and vendors, or accounts. Leave Blank
Name of Name of Tolerance Group ## GBI Default
Tolerance Group
Permitted Payment differences to our advantage are allowed 10
Payment up to the amount entered here.
Differences Rev.
Rev Percent Differences when settling payments are posted 1
automatically by the system up to this rate.
Permitted Payment differences to our disadvantage are 1
Payment allowed up to the amount entered here.
Differences Loss
Loss Percent Differences when settling payments are posted 1
automatically by the system up to this rate.
Payment Term Indicates terms of payment are to be transferred Selected
from Invoice from the original item for residual.
Only grant partial Indicates partial cash discount is granted when Selected
cash disc. clearing invoices if an outstanding receivable is
posted due to insufficient payment.

20. Click Next Entry .

21. Enter the following information:
Attribute Description Data Value
Company Code Organizational unit within accounting. Your Global Bike Inc.
Tolerance group Group for customers and vendors, or accounts. GBI
Name of Tolerance Name of Tolerance Group ## Global Bike Inc.
Group
Permitted Payment Payment differences to our advantage are 20
Differences Rev. allowed up to the amount entered here.
Rev Percent Differences when settling payments are posted 2
automatically by the system up to this rate.
Permitted Payment Payment differences to our disadvantage are 2
Differences Loss allowed up to the amount entered here.
Loss Percent Differences when settling payments are posted 2
automatically by the system up to this rate.
Payment Term from Indicates terms of payment are to be Selected
Invoice transferred from the original item for residual.
Only grant partial Indicates partial cash discount is granted when Selected
 cash disc. clearing invoices if an outstanding receivable is
posted due to insufficient payment.

22. Click Save .

 You will receive a message that says, “Data was saved”.
1. Define Plant Parameters
In this section, you will specify inventory management parameters at each of your three plants. GBI
management wants to improve plant efficiency by creating the following automatic actions at each
Plant:
 Storage locations are automatically generated when needed. Thus, if a warehouse person
receives Raw Material for the first time, a RM storage location is automatically created.
 Purchase order deliveries are automatically completed when the correct quantity is
received.
 Reservations of inventory for a Sales Order are automatically deleted after 30 days.
23. In the “SAP Easy Access” screen, follow the navigation path below:
Navigation
SAP Customizing Implementation Guide🡪 Materials Management🡪 Inventory
Management and Physical Inventory🡪 Plant Parameters
62. What is the transaction code to define values for plant?
🖉
24. In the “Change View “General plant settings in Inventory Management”: Overview” screen,
click New Entries .
25. In the “New Entries: Details of Added Entries” screen, enter the following information:
Attribute Description Data Value
Plant Key uniquely identifying a plant. Your Plant
Dallas
Create SLoc. Creation of storage location data in the material Selected
automat. master record at the time of the first goods receipt is
allowed.
Del. compl. default The setting of the “delivery completed” indicator. Selected
Movement Allowed Specifies that goods movements are allowed. Selected
Days mvt. allowed Days on the basis of which the program checks 30
whether movements are allowed for a reservation
item.
Retention period Time in days during which a reservation item resides 30
in the system before being deleted by the program.

26. Click Next Entry .

27. Enter the following information:
Attribute Description Data Value
Plant Key uniquely identifying a plant. Your DC Miami
Create SLoc. Creation of storage location data in the material Selected
automat. master record at the time of the first goods receipt is
allowed.
Del. compl. default Controls setting of the “delivery completed” indicator. Selected
Movement Allowed Specifies that goods movements are allowed. Selected
Days mvt. allowed Days on the basis of which the program checks 30
whether movements are allowed for a reservation
item.
 Retention period Time in days during which a reservation item resides in 30
the system before being deleted by the program.

28. Click Next Entry .

29. Enter the following information:
Attribute Description Data Value
Plant Key uniquely identifying a plant. Your DC San
Diego
Create SLoc. Creation of storage location data in the material Selected
automat. master record at the time of the first goods receipt.
Del. compl. default Controls the “delivery completed” indicator. Selected
Movement Allowed Specifies that goods movements are allowed. Selected
Days mvt. allowed Days on the basis of which the program checks 30
whether movements are allowed for a reservation.
Retention period Time in days during which a reservation item 30
resides in the system before being deleted by the
program.

30. Click Save .

 You will receive a message that says, “Data was saved”.

3. Master Data

Table of Contents
Section 3.1: Create Trading Goods 52
Section 3.2: Create Vendor 54
2. Create Trading Goods
In this section, you will create Trading Goods in your Company Code by copying from the material
master in Company Code US00. You will start by copying Elbow Pads (EPAD1000) from Company
Code US00 to US##. You will re-number the original Elbow Pads (EPAD1000) as EPAD10## and
change the description to ## Elbow Pads. You will also associate each of your new Trading Goods
with your Purchasing Group (N##) that you created earlier.
31. In the “SAP Easy Access” screen, follow the navigation path below:
Navigation
SAP Menu 🡪 Logistics 🡪 Materials Management 🡪 Material Master 🡪 Material 🡪 Create
(Special) 🡪 Trading Goods
63. What is the transaction code for creating a trading good?
🖉
32. In the “Create Trading Goods (Initial Screen)” screen, enter the following information:
Attribute Description Data Value
Material Alphanumeric key uniquely identifying the material. EPAD10##
Industry sector The branch of industry to which the material is Retail
assigned.
Copy from…Material Material whose data you want the system to copy. EPAD1000
33. Click Enter .

34. In the “Select View(s)” pop-up, click the Deselect All button.
35. Highlight the “Basic Data 1” row.
36. Highlight the “Purchasing” row.
37. Highlight the “Accounting 1” row.
38. Click Save As Default Values .

39. Click Continue .

40. In the “Organizational Levels” pop-up, enter the following information:
Attribute Description Data Value
Plant Key uniquely identifying a plant. Your DC Miami
Copy from Plant Plant of the reference material. The Original DC Miami

41. Click Save As Default Values .

42. Click Continue .

 You will receive a message that says, “The material already exists and will be extended”.
43. In the “Create Trading Goods EPAD10##” screen, enter the following information:
Attribute Description Data Value
Material Description (Short Material Description ## Elbow Pads
Text)
Purchasing Group Key for a buyer or a group of Your North America
buyers.

44. Click Enter until you reach the last screen.

45. Click Enter .

46. In the “Last data screen reached” pop-up, click on the icon.
 You will receive a message that says “Material EPAD10## created”.
47. You have just created your Elbow Pads in the steps above. Appendix E contains data
about all the Trading Goods in GBI. Use the data in appendix E to create the following Trading
Goods: RHMT10## and RKIT10##. You are not required to create all of the materials, only the
RHMT10## and RKIT10##. Create each of the materials with the same views you used above. You
will use Appendix E again in later exercises to add more views to your trading good materials.
3. Create Vendor
In this section, you will create a Vendor in your Company Code. This vendor will be used during
testing to procure your Trading Goods. You will maintain FI and purchasing roles for your Vendor.
You will also associate your new Vendor with your Purchasing Organization (NA##) that you created
earlier.
48. In the “SAP Easy Access” screen, follow the navigation path below:
Navigation
SAP Easy Access Menu 🡪 Logistics 🡪 Materials Management 🡪 Purchasing 🡪 Master
Data 🡪 Vendor 🡪 Central 🡪Change
64. What is the transaction code to create a vendor?
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1. In the “Change Supplier: Initial Screen” screen, enter the following information:
Attribute Description Data Value
 Vendor Key uniquely identifying a vendor 1010##

Company code Organizational unit within financial Original Global Bike

accounting Inc. (US00)

Purchasing Denotes the purchasing organization Original GBI,

Organization Purchasing (US00)
2. Click Select All

You will receive a message, “Extended withholding tax functionality not active”.
3. Click Enter .

4. In the “Change Organization: 8010##, role Vendor Purchasing FLVN01” screen, enter the
following information:
Attribute Description Data Value

Business Partner Key uniquely identifying the vendor 8010##

Change in BP role Role associated with a business process FI Vendor FLVN00

5. In the “Change Organization: 8010##, role Vendor FI/Purch.” screen, click Company Code

6. Click Company Codes

7. In the “Vendor FI/Purch. Change: Company Codes” click Create.

8. Enter the following information:

Attribute Description Data Value

Company Organizational unit within financial accounting Your Global Bike

code Inc. (US##)

Supplier Indicates that the company code and the vendor data Selected
processed in the company code is valid

9. Use the grey box to highlight your Company Code and click Adopt
10. Under the “Vendor: Account Management” tab, enter the following information:
Attribute Description Data Value

Reconciliation The G/L account that is updated in parallel to Payables-Trade

Account the subledger account Accounts (30000)
11. Select the “Vendor: Payment Transactions” tab and enter the following information:
Attribute Description Data Value

Payment Terms Key for defining payment terms composed of cash Pay immediately w/o
discount percentages and payment periods deduction (0001)

Check double Indicates if the system should check for duplicate Selected
invoice invoices

Payment Block Used to block an open item or an account to Free for payment
payment transactions
12. Select Role 'Vendor Purchasing FLVN01' and then Select Purchasing

13. In the “Change Organization: 8010##, role Vendor Purchasing FLVN01” screen, select
Purchasing Organizations

14. In the Vendor FI/Purch. Change: Purchasing Organizations” screen, click Create

15. Enter the following information:

Attribute Description Data Value

Purch. Key for defining payment terms composed of Your Purchasing

organization cash discount percentages and payment periods Organization (US##)

16. Use the grey box to highlight your Company Code and click Transfer

17. Under the “Purchasing Data” tab, enter the following information:
Attribute Description Data Value
 Order Indicates the currency of any purchase orders sent United States
Currency to the vendor Dollar (USD)

Payment Identifies an cash discounts or payment period Payable immediately

Terms Due net (0001)

Incoterms Incoterms specify internationally recognized Free on Board

procedures that the shipper and the receiving party
must follow

Incoterms Provides additional information for the primary Miami

Location 1 Incoterm

Planned Amount of time it takes to receive a delivery from 0

Delivery Time the vendor
18. Click Save

 You will receive a message, “Changes have been saved”.

1. Process Execution

Table of Contents
Section 4.1: Create Purchase Requisition 59
Section 4.2: Create Purchase Order 61
Section 4.3: Create Goods Receipt 63
Section 4.4: Receive Invoice 65
Section 4.5: Pay Vendor 66
Section 4.6: View Info Record 67
Section 4.7: View Vendor Account Balance 68
Section 4.8: Display G/L Account Balance 69
1. Create Purchase Requisition
This section is the first of five steps to test your Procure-to-Pay configuration. In this section, you will
create a purchase requisition: a request to procure a certain quantity of a material – or services – to
be available at a certain time. Your purchase requisition will be for the Trading Goods you created
earlier: 50 Elbow Pads, 50 Road Helmets, and 50 Repair Kits all to arrive in one week.

19. In the “SAP Easy Access” screen, follow the navigation path below:
Navigation
SAP Menu 🡪 Logistics 🡪 Materials Management 🡪 Purchasing 🡪 Purchase
Requisition🡪 Create
65. What is the transaction code to create a purchase requisition?
🖉
20. In the “Create Purchase Requisition” screen, enter the following information in the Item
Overview section:

 You may need to click the Expand Items Icon next to “Item Overview”
 Attribute Description Data Value
Material Number identifying a material. Your Elbow Pads
Quantity Specifies the quantity to be ordered. 50
Deliv. Date Date on which the goods are to be delivered. One Week from Today
Plant Plant in which you wish to procure material. Your DC Miami
Stor. Loc. Storage location where materials are stored. Your Miami Trading Goods

Material Number identifying a material. Your Road Helmet

Quantity Specifies the quantity to be ordered 50
Deliv. Date Date on which the goods are to be delivered. One Week from Today
Plant Plant in which you wish to procure material. Your DC Miami
Stor. Loc. Storage location where materials are stored. Your Miami Trading Goods

Material Number identifying a material. Your Repair Kit

Quantity Specifies the quantity to be ordered. 50
Deliv. Date Date on which the goods are to be delivered. One Week from Today
Plant Plant in which you wish to procure material. Your DC Miami
Stor. Loc. Storage location where materials are stored. Your Miami Trading Goods

21. Click Enter .

22. Click Enter through each of the warning messages “Can Delivery Date be met?”.
 If you do not receive this warning message you may continue as normal provided you are
not receiving an error message.

23. Click Save .

 You will receive a message that says, “Purchase requisition number ########## created”.
66. What is your Purchase Requisition Number?
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2. Create Purchase Order
In this section, you will create a Purchase Order from your Purchase Requisition to be sent to your
Vendor. A Purchase Order is issued by a buyer to a seller, indicating types, quantities, and agreed
prices for products – or services – the seller will provide to the buyer.
24. In the “SAP Easy Access” screen, follow the navigation path below:
Navigation
SAP Menu 🡪 Logistics 🡪 Materials Management 🡪 Purchasing 🡪 Purchase
Order 🡪 Create 🡪 Vendor/Supplying Plant Known
67. What is the transaction code to create a purchase order?
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25. In the “Create Purchase Order” screen, open the header section of the screen and click on
the “Org Data” Tab.
26. Enter the following information in the header section:
Attribute Description Data Value
Vendor Number and name of the vendor (external supplier) or Your Olympic
plant from which the materials are to be procured. Protective Gear
Purch. Org. Denotes the purchasing organization. Your GBI US
Purch. Group Key for a buyer or group of buyers, who is/are Your North America
responsible for certain purchasing activities.

27. Click Enter .

28. Click the “Document Overview On” button.
29. Click Selection Variant .
30. Click on “My purchase requisitions”.
31. In the “Document Overview” pane of the “Create Purchase Order” screen, click on your
purchase requisition number.
32. Click Adopt .
 If you double click on the purchase requisition number, the system will display the
requisition. You are no longer in the application to create a purchase order. If this happens, you
must exit back to the main menu and start at the beginning of this step.
 You will receive an Error message that says, “Net price must be greater than 0”. This means
you must enter a price, follow the next step to enter your prices.

Click Expand Items to open the “Item Overview” section.

33. Enter the following information:
Material Net Price Currency
Your Elbow Pads 37.50 United States Dollar
Your Road Helmet 25.00 United States Dollar
Your Repair Kit 16.00 United States Dollar

34. Click Enter .

35. Click Enter through the warning messages “Can Delivery Date be met?”.

36. Click Save .

 You will receive a message that says, “Standard PO created under the number ##########”.
68. What is your Purchase Order Number?
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3. Create Goods Receipt
In this section, you will verify that you received the goods shipped in response to the Purchase Order
by creating a goods receipt transaction. The goods receipt will specify the quantity and storage
location for each item received.
37. In the “SAP Easy Access” screen, follow the navigation path below:
Navigation
SAP Easy Access 🡪 Logistics🡪 Materials Management🡪 Inventory Management🡪 Goods
Movement🡪 Goods Receipt For Purchase Order
69. What is transaction code to create a goods receipt?
🖉
38. In the “Goods Receipt Purchase Order” screen, enter the following information:
Attribute Description Data Value
Purchase Order Key uniquely identifying the document. Purchase Order Number

39. Click Enter .

40. Select “OK” and confirm following information:
 To select OK for all the materials you need to close the “Detail Data” section of the screen.
Attribute Description Data Value
Mat. Short Text Text that describes the material in more detail ## Elbow Pads
OK Indicates that you are posting goods movement for this Selected
item
Qty in UnE Specifies the quantity to be moved in the unit of entry 50
SLoc Description of Storage Location Your Trading
 Goods
Next Line
Mat. Short Text Text that describes the material in more detail ## Road Helmet
OK Indicates that you are posting goods movement for this Selected
item
Qty in UnE Specifies the quantity to be moved in the unit of entry 50
SLoc Description of Storage Location Your Trading
Goods
Next Line
Mat. Short Text Text that describes the material in more detail ## Repair Kit
OK Indicates that you are posting goods movement for this Selected
item
Qty in UnE Specifies the quantity to be moved in the unit of entry 50
SLoc Description of Storage Location Your Trading
Goods

41. Click Post .

 You will receive a message that says, “Material document ########## posted”.
70. What is the resulting document number?
🖉
4. Receive Invoice
In this section, you will receive an invoice from your vendor against the Purchase Order you
previously created. This called is called Invoice Verification in SAP and verifies that the incoming
invoice is correct regarding material, prices, quantity, and arithmetic. If the invoice is correct (within
the tolerances you set up earlier), financial accounting transactions will be created (debit GR/IR and
credit Accounts Payable).
42. In the “SAP Easy Access” screen, follow the navigation path below:
Navigation
SAP Menu 🡪 Logistics 🡪 Materials Management 🡪 Purchasing 🡪 Purchase Order 🡪 Follow-
On Functions 🡪 Logistics Invoice Verification
71. What is the transaction code for invoice verification?
🖉
43. In the “Enter Incoming Invoice: Company Code US##” screen, enter the following
information:
Attribute Description Data Value
Invoice Date The issue Date of the original Current Date
document
Amount Line item amount in document 3925
currency
Purchasing Document Key uniquely identifying the document Purchase Order
Number Number

44. Click Enter .

45. Enter the following information:
Attribute Description Data Value
Item Document item in Invoice Document 1
Booking OK Specifies whether you have completed a three-way match Selected
Item Document item in Invoice Document 2
Booking OK Specifies whether you have completed a three-way match Selected
 Item Document item in Invoice Document 3
Booking OK Specifies whether you have completed a three-way match Selected

46. Click Save .

 You will receive a message that says, “Document no ##########. created”.
72. What is the resulting document number?
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1. Pay Vendor
In this section, you will pay the vendor invoice that you just verified. This step is called Post Outgoing
Payment in SAP. If the payment is correct (within the tolerances you set up earlier), financial
accounting transactions will be created (debit Accounts Payable and credit Bank).
47. In the “SAP Easy Access” screen, follow the navigation path below:
Navigation
SAP Menu 🡪 Accounting🡪 Financial Accounting🡪 Accounts Payable🡪 Document
Entry🡪 Outgoing Payment🡪 Post
73. What is the transaction code to pay a vendor?
🖉
48. In the “Post Outgoing Payments: Header Data” screen, enter the following information:
Attribute Description Data Value
Document Date The date on which the original document was Current Date
issued
Bank Data Account Account Number Your Bank Account
Amount Line item amount in document 3925
Open item The account from which the open items are to be Your Olympic
selection Account selected for further processing or the key of a Protective Gear
work list which represents a group of accounts

49. Click on the icon.

 You will receive a message that says “1 item(s) were selected”.

50. In the “Post Outgoing Payments Process open items” screen, click Post .
 You will receive a message that says “Document ########## was posted in company code
US##”.
74. What is the resulting document number?
🖉
2. View Info Record
In this section, you will display your vendor info record after making your purchases.
51. In the “SAP Easy Access” screen, follow the navigation path below:
Navigation
SAP Menu 🡪 Logistics 🡪 Materials Management 🡪 Purchasing 🡪 Master Data 🡪 Info
Record 🡪 Display
52. In the “Display Info Record: Initial Screen” screen, enter the following information:
Attribute Description Data Value
Vendor Key uniquely identifying the doc. Your Olympic Protective Gear
Material Key uniquely identifying the material Your Elbow Pads
Purchasing Org. Denotes the purchasing organization Your GBI US
Plant Key uniquely identifying the plant (Enter nothing in this field)

53. Click Enter .

54. Click Purch. Org. Data 1 .
75. What is the Standard Quantity?
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3. View Vendor Account Balance
In this section, you view the account balance of your Olympic Protective Gear (vendor).
55. In the “SAP Easy Access” screen, follow the navigation path below:
Navigation
SAP Easy Access Menu 🡪 Accounting 🡪 Financial Accounting 🡪 Accounts
Payable 🡪 Account 🡪 Display Balances
56. In the “Vendor Balance Display” screen, enter the following information:
Attribute Description Data Value
Vendor Key uniquely identifying the document Your Olympic
Protective Gear
Company Code An organizational unit within financial accounting. Your Global Bike Inc.
Fiscal Year Period the company uses to create its inventory and Current Year
balance sheet.

57. Click Execute .

76. What is the total in the debit column for your vendor?
🖉
4. Display G/L Account Balance
In this section, you will display the General Ledger account balance for your Trading Goods Inventory
account. This ensures that your configuration of automatic postings was done correctly.
58. In the “SAP Easy Access” screen, follow the navigation path below:
Navigation
SAP Menu 🡪 Accounting 🡪 Financial Accounting 🡪 General Ledger 🡪 Account 🡪 Display
Balances
59. In the “G/L Account Balance Display” screen, enter the following information:
Attribute Description Data Value
Account Number Account Number Your Inventory-
Trading Goods
Company Code An organizational unit within financial accounting. Your Company
Code
Fiscal Year Period a company creates its inventory and balance Current Year
sheets.
 Use the Inventory-Trading Goods account WITHOUT direct post.
60. Click Execute .
61. In the “Balance Display: G/L Accounts For the Ledger 0L” screen, double click the total
amount in the Debit column.
 You will receive a message that says “3 items displayed”.
77. How many line items are displayed for you Inventory-Trading Goods account?
🖉

2. Exercise Deliverables
Name:
Course and Section:
Identifier:
Client:
1. What is the transaction code to define plants?
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2. What is the transaction code to view the calendar options?
🖉
3. How many number of workdays does the year 2016 have?
🖉
4. How many Holidays are on Sunday according to the 2016 holiday calendar?
🖉
5. What is the transaction code to assign plants to company codes?
🖉
6. What is the Transaction Code to Define Valuation Level?
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7. What is the Valuation Level?
🖉
8. What is the transaction code to Assign Material Ledger Types to Valuation Areas?
🖉
9. What is the t-code to activate the material ledger for valuation areas?
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10. What is the transaction to set valuation areas as productive?
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11. What is the transaction code to maintain purchasing organizations?
🖉
12. What is the transaction code to assign purchasing organization to a company code?
🖉
13. What is the transaction code to assign a purchasing organization to plants?
🖉
14. What is the transaction code for creating a purchasing group?
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15. What is the transaction code to maintain storage locations?
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16. What is the transaction code to maintain default values for tax codes?
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17. What is the Procedure?
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18. What is the Tax Percent. Rate for Expensed Items?
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19. What is the transaction code to view different material types?
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20. What is the Price control for finished goods?
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21. What is the Acct cat. reference for finished goods?
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22. What is the Quantity/value updating radio button selected for finished goods?
🖉
23. What is the Price control for trading goods?
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24. What is the Acct cat. reference for trading goods?
🖉
25. What is the Quantity/value updating radio button selected for trading goods?
🖉
26. What is the Price control for nonvaluated materials?
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27. What is the Acct cat. reference for nonvaluated materials?
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28. What is the Quantity/value updating radio button selected for nonvaluated materials?
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29. What is the transaction code to define attributes of material types?
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30. What is the Valuation Class?
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31. What is the Valuation Class?
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32. What is the Valuation Class?
🖉
33. What is the Valuation Class for Raw Materials 1?
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34. What is the Valuation Class for Trading Goods?
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35. What is the Valuation Class for Finished Products?
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36. What is the ARef for Raw Materials 1?
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37. What is the ARef for Trading Goods?
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38. What is the ARef for Finished Products?
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39. What is the ARef for Raw Materials?
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40. What is the ARef for Trading Goods?
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41. What is the ARef for Finished Products?
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42. What is one example of a Material Type with a Raw Materials ARef?
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43. What is one example of a Material Type with a Semifinished Products ARef?
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44. What is one example of a Material Type with a finished product ARef?
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45. What is the transaction code to group together valuation areas?
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46. Is the Valuation Group Code Active?
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47. What is the transaction code to configure automatic postings?
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48. What is the description for BSX?
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49. What is the Debit Posting Key?
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50. What is the Credit Posting Key?
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51. What is the Debit Posting Key Name?
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52. What is the Credit Posting Key Name?
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53. What is the description for DIF?
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54. What is the description for PRD?
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55. What is the description for WRX?
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56. What is the account defined for sales tax?
🖉
57. What is the transaction code to set tolerance limits for price variance?
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58. What does Tolerance key SE stand for?
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59. What is the transaction code to set tolerance for goods receipt?
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60. What is the transaction code to set tolerance for invoice?
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61. What is the transaction code to define vendor tolerances?
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62. What is the transaction code to define values for plant?
🖉
63. What is the transaction code for creating a trading good?
🖉
64. What is the transaction code to create a vendor?
🖉
65. What is the transaction code to create a purchase requisition?
🖉
66. What is your Purchase Requisition Number?
🖉
67. What is the transaction code to create a purchase order?
🖉
68. What is your Purchase Order Number?
🖉
69. What is transaction code to create a goods receipt?
🖉
70. What is the resulting document number?
🖉
71. What is the transaction code for invoice verification?
🖉
72. What is the resulting document number?
🖉
73. What is the transaction code to pay a vendor?
🖉
74. What is the resulting document number?
🖉
75. What is the Standard Quantity?
🖉
76. What is the total in the debit column for your vendor?
🖉
77. How many line items are displayed for you Inventory-Trading Goods account?
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Chapter 04: ProcurementPage of © 2019 Epistemy Press, LLC.