Integration in Logistical Processes

Document prepared by Akshay Kulkarni

LinkedIn :- https://www.linkedin.com/in/akshay-kulkarni-
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Integration of Quality Management with other modules

SAP MM SAP PM

SAP QM

SAP PP SAP SD
Integration with Material Management
Integration with Manages Quality information of the materials
Material
Vendor Release
Management
Vendor evaluation

SAP MM Supplier Certificate

Inspection lot for Goods receipt

Payment block to Vendor

Quality Agreements
 Manages Quality information of the materials :-

➢ In SAP QM (Quality Management), the Material Master is a key data object that holds all
the necessary information about a material, including quality-related data. The material
master is used across multiple SAP modules (MM, PP, SD, etc.), and in the context of QM,
it plays a crucial role in defining how a material should be inspected and controlled.

➢ Let’s take an example of pen manufacturing industry for that material and material code
is required, & below are the Material and Material code.
Material Material Code Material Type
PEN P0001 FERT
Ink IN0001 ROH
Bottom Cap BT0001 ROH
Top Cap TP0001 ROH
Labels L0001 ROH
➢ We have basic data 1, basic data 2, MRP 1, MRP 2, MRP 3, MRP 4, Work scheduling view,
Quality Management, Accounting 1, Accounting 2 & so on.

➢ Under quality management view we have to activate inspection type with respect to
business process.

➢ For 01-inspection type is required for child parts (ROH), 03-inspection type is for inprocesss,
04-is for goods receipt, what kind of inspection is required to assign these materials.

➢ After activating the inspection type, system will allow us to do the inspection that is the first
stage of material master.

➢ Now in our example pen is the finished product for this we have to the separate inspection.

➢ For child parts such as Ink, Bottom cap, Top cap, Labels for this we have to assign different
inspection type, and do the inspection.
 Vendor Release:-

➢ Vendor release / supplier, if we are purchasing material from new supplier/vendor, so we

have to create its data, so for this vendor master data is required that is nothing but
business partner in S4HANA and that is created by material management team / master
data team.

➢ In SAP S/4HANA Quality Management (QM), a "vendor release" refers to the process of
approving a supplier (vendor) to supply a specific material based on their quality
capabilities, essentially allowing or blocking the purchase of materials from them by
checking their quality information.

➢ Within a "Quality Info Record" before placing a purchase order; this is done to ensure
only qualified vendors can supply materials that meet quality standards.
➢ Quality info record will have control on vendor whether this vendor will send a particular
amount of material or this vendor will be allowed to send material up to particular date
these things are there in quality info record.

➢ In other words, vendor release means we are purchasing material from new vendor and we
are started to do the analysis of these materials and also we will analyse the quality of the
material is good or not after that we will allow him to send the material further (for doing
the business with that vendor).

➢ Let’s say we have restricted vendor to send only 9000 quantities, if it is beyond 9000
quantities then system will not allow us to create purchase order.
 Vendor Evaluation

➢ In SAP, "vendor evaluation" within the Quality Management (QM) module refers to the
process of assessing and rating suppliers based on their quality performance, using data
gathered from incoming inspections, quality audits, and other quality-related activities,
allowing companies to identify the most reliable vendors for procuring materials and services
based on their quality standards.
 Supplier A

IN0001(INK) Supplier B

Supplier C

➢ Lets say IN0001 (INK) which is having 3 suppliers.

➢ We have some criteria to purchase the material from vendor.
*Cost
*Quality
*Delivery time
All these comes under vendor evaluation.
➢ Vendor evaluation helps us to get the data of the best vendor from where we can purchase
the material regularly.
 Supplier Certificate

➢ A "supplier certificate" in SAP QM (Quality Management) refers to a document provided by a

supplier that verifies the quality of their goods, often including details about the
manufacturing process, material properties, and compliance with relevant industry
standards, which is stored and managed within the supplier master data in SAP, allowing
companies to assess the quality of potential suppliers before purchasing goods from them.

➢ If supplier certificate is provided by supplier/vendor, then only we are keeping the material in
storage location, otherwise we are not purchasing that material.

➢ Why we require supplier certificate because according to specification the material we have
received or not and also that is mentioned on the certificate or not that we are checking or
that is analysed by procurement or material management team.
 Inspection lot for Goods receipt

➢ In SAP, an "inspection lot for goods receipt" refers to a record automatically created within
the Quality Management (QM) module when a goods receipt is posted for a material that
requires quality inspection, essentially acting as a container to manage the quality checks
that need to be performed on the received goods before they can be fully accepted into
stock.

➢ After goods receipt note, inspection plan and inspection type which we assigned to that
material, what system will do ? It will create inspection lot.

Example :- Inspection lot 1000001

➢ Quality team will check, according to specification which means MICs are assigned to
inspection lot or not, then quality end user will perform results recording and they will send
the stock to unrestricted stock for further processing.
➢ There are 3 types of stock

▪ Unrestricted stock

▪ Quality stock

▪ Block stock
 Payment block to Vendor

➢ A "payment block" to a vendor in SAP QM (Quality Management) means setting a flag in the
vendor master data that prevents the system from automatically generating payments for
invoices related to quality-related activities, like inspection costs, effectively stopping any
financial transactions with that vendor until the block is removed; this is usually done when
there are quality issues with the vendor's goods, allowing for further investigation or
corrective actions before payments are processed.

➢ After GRn inspection lot has been created, found that in the inspection lot & material is not
good or it might be faulty material and not able to use, we have sent the material to
quarantine area/block stock which means we are not going to pay amount to vendor.

➢ Invoice payment will be blocked.

➢ This process will take place when the stock is in quality/ blocked stock.
 Quality Agreements

➢ In SAP Quality Management (QM), a Quality Agreement is a formalized document or contract

between a supplier and a customer, specifying the quality expectations, standards, and
responsibilities for a product or service. The agreement defines how quality will be managed,
monitored, and ensured throughout the production or supply process.

➢ It ensures that the delivered products meet the required quality standards, and both parties
(supplier and customer) understand their roles in maintaining quality.
Integration with Production Planning
Integration with Production Planning
Inspection Characteristics for Operations

In-Process inspection lot for Production order

SAP PP Scrapping WIP due to Quality rejection

Final Inspection for Production Order

Monitor Production activities through SPC

Control Charts

Managing Internal defects

 Inspection Characteristics for Operations

➢ Inspection characteristics define what needs to be inspected during quality checks in SAP QM.
They are assigned to inspection plans and linked to operations in routings or production
orders.
➢ There are 2 types of MICs

1. Quantitative MIC
2. Qualitative MIC

1. Quantitative MIC :-

▪ Used for numerical measurements.

▪ Example: Length (mm), Weight (kg), Temperature (°C)

▪ Defined with upper/lower limits and tolerance ranges.

2. Qualitative MIC :-

• Used for attribute-based inspections (pass/fail, visual checks).

• Example: Surface finish (OK/Not OK), Color (Red/Blue)

• No numeric limits, only accepted/rejected results.

Benefits of Using Inspection Characteristics in Operations :-

Standardized Quality Control: Ensures consistent inspection criteria.

Reduces Manual Entry: Automates inspection data collection.
Improves Process Monitoring: Identifies defects early in production.
Integrates with PP & QM: Directly links quality checks to production orders.
 In-Process inspection lot for Production order – Inspection type 03

➢ Inspection Type 03 in SAP QM is used for in-process quality inspection during production, but
it differs from Inspection Type 04 because it does not require an inspection plan. Instead, it
relies on characteristics assigned to the routing (PP).

Key Features of Inspection Type 03

Triggered Automatically when a production order is released.

No Inspection Plan Needed – Uses routing-based inspection characteristics.
Results Recorded During Production (manual or automatic).
Usage Decision (UD) Determines Next Steps – Accept, Rework, or Scrap.
 In-Process inspection lot for Production order – Inspection type 03

Difference Between 03 and 04 Inspection Type :-

Feature 03 - In-Process (No Task List) 04 - In-Process (With Task List)

Inspection Plan Required No Yes
Uses Routing Characteristics Yes Optional
Triggered by Production Order Yes Yes
Automatic Lot Creation Yes Yes
Usage Decision Required Yes Yes
Detailed inspections with task
Ideal For Simple in-process checks
lists
Benefits of Using Inspection Type 03

No Need for an Inspection Plan – Saves time in setup.

Integrated with Production Routing – Quality checks happen at the right stage.

Ensures Consistency in Manufacturing – Reduces defects early in the process.

Streamlines Workflow – Automatically generates inspection lots.

 Scrapping WIP due to Quality rejection

➢ Scrapping Work-In-Process (WIP) due to quality rejection in SAP QM is a crucial process for
managing defective materials. This process ensures that non-conforming products do not
move forward in production and are accounted for correctly.

➢ Process Flow for Scrapping WIP in SAP QM

Step 1: Perform Inspection and Reject Non-Conforming Material

• Use Transaction: QE51N (Results Recording)

• Record inspection results for in-process quality checks.
• If material fails, proceed with a Usage Decision (UD).
 Scrapping WIP due to Quality rejection

Step 2: Make Usage Decision (UD) and Mark for Scrap

• Use Transaction: QA11 (Usage Decision for Inspection Lot)

• Select Rejected (Rework/Scrap) Decision Code.
• Ensure the system posts rejected materials to a blocked or scrap stock location.

Step 3: Scrap WIP Material in Production

A. If WIP Material is in a Production Order

• Use Transaction: CO11N (Production Confirmation)

• Enter the quantity to be scrapped in the Scrap field.
• Confirm and save the document.
 Scrapping WIP due to Quality rejection

B. If Material is in Quality Stock and Needs to be Scrapped:

• Use Transaction: MIGO (Goods Issue for Scrap).

• Use Movement Type: 551 (Scrapping) or 553 (Scrap from Quality).
• Enter material, quantity, and storage location.
• Save the document to update inventory.

Step 4: Financial and Inventory Impact

• The scrapped material is removed from inventory and charged to the appropriate cost center.
• Transaction: MB51 (Material Document List) can be used to track scrap postings.
• The impact on WIP valuation and costing is reflected in CO reports.
 Scrapping WIP due to Quality rejection

• Key Movement Types for Scrapping in SAP :-

Movement Type Description

551 Goods Issue for Scrap (From Unrestricted Stock)
553 Goods Issue for Scrap (From Quality Stock)

Move from Quality Stock to Unrestricted Stock (If

321
rework is allowed)

541 Transfer to Subcontractor (For External Rework)

 Scrapping WIP due to Quality rejection

Benefits of Proper Scrap Handling

Prevents Defective Material from Further Processing.

Improves Production Efficiency by Identifying Quality Issues.

Ensures Proper Accounting and Cost Control.

Supports Continuous Improvement Initiatives.

 Final Inspection for Production Order – Inspection type 04

The Final Inspection in SAP QM ensures that finished products meet quality standards before
they are moved to inventory or shipped. This process is managed using Inspection Type 04
(Final Inspection for Production Order).

1. Key Features of Final Inspection

• Triggered Automatically when a production order is confirmed.

Inspection Lot is Created and linked to the production order.
Inspection Plan Defines Quality Characteristics to be checked.
Results Recording & Usage Decision (UD) determine stock posting.
Ensures Quality Compliance before product release.
 Final Inspection for Production Order – Inspection type 04

2. Configuration and Master Data Setup

A. Activate Inspection Type 04 in Material Master

1.Transaction: MM02 (Change Material Master).

2.Select "Quality Management" View.
3.Enable Inspection Type: 04 (Final Inspection for Production Order)
4.Set Control Indicators:
1. Automatic Lot Creation
2. Stock Posting Allowed After UD.
 Final Inspection for Production Order – Inspection type 04

B. Create Inspection Plan

1.Transaction: QP01 (Create Inspection Plan).

2.Assign Material & Plant.
3.Define Operations and Inspection Characteristics.
1. Link Qualitative & Quantitative characteristics.
2. Use Sampling Procedures if applicable.
4.Save the Inspection Plan.

C. Link Inspection Plan to Production Routing

1.Transaction: CA01 / CA02 (Create/Change Routing).

2.Assign QM Inspection Characteristics to the final operation.
 Final Inspection for Production Order – Inspection type 04

3. Process Flow for Final Inspection

Step 1: Create & Release Production Order :-

•Transaction: CO01 (Create Production Order) / CO02 (Change Production Order)

•When the production order is confirmed, an Inspection Lot (Type 04) is created.

Step 2: Record Inspection Results :-

•Transaction: QE51N (Results Recording for Inspection Lot)

•Enter values for inspection characteristics.
 Final Inspection for Production Order – Inspection type 04

Step 3: Make Usage Decision (UD) :-

•Transaction: QA11 (Usage Decision for Inspection Lot)

•Choose Accept or Reject based on quality results.

Step 4: Post Goods Receipt (GR) for Finished Product :-

•Transaction: MIGO (Goods Receipt for Production Order)

•If material is accepted, it moves to unrestricted stock.
•If rejected, it moves to blocked stock or rework process.
 Final Inspection for Production Order – Inspection type 04

4. Reporting & Analysis

QA32 – Inspection Lot Overview

QE51N – Results Recording
MB51 – Material Movement Report
COOIS – Production Order Analysis

5. Key Benefits of Final Inspection

Ensures Defective Products Don’t Reach Customers

Prevents Rework Costs & Reduces Waste
Regulatory Compliance & Quality Standards Maintenance
Improves Production Efficiency & Customer Satisfaction
 Monitor Production activities through SPC Control Charts

Statistical Process Control (SPC) Control Charts in SAP QM help monitor and control
production quality by tracking process variations and ensuring that production remains within
defined control limits.

1. What are SPC Control Charts?

SPC (Statistical Process Control) Charts are used to:

Identify trends and variations in production processes.
Detect process shifts before defects occur.
Ensure continuous improvement and compliance with quality standards.
 Monitor Production activities through SPC Control Charts

2. SPC Control Chart Setup in SAP QM

A. Define Inspection Characteristics

1.Transaction: QS21 (Create Master Inspection Characteristic)

2.Define:
• Quantitative or Qualitative Characteristics
• Target Values, Tolerance Limits, and Sampling Procedures
• Control Indicators for SPC Charts

B. Assign Characteristics to Inspection Plan

1. Transaction: QP01 (Create Inspection Plan)

2. Link the defined Inspection Characteristics to an Operation in the plan
 Monitor Production activities through SPC Control Charts

C. Activate Control Charts for Process Monitoring

1.Transaction: QCC0 (Control Chart Configuration)

2.Select appropriate Control Chart Type:

1. X̄-R Chart (Mean-Range)
2. p Chart (Proportion of Defectives)
3. c Chart (Defect Count per Unit)

3.Define Upper and Lower Control Limits (UCL & LCL).

 Monitor Production activities through SPC Control Charts

3. Process Flow for SPC Monitoring

Step 1: Create & Release Production Order

Transaction: CO01 (Create Production Order)

Step 2: Record Inspection Results

Transaction: QE51N (Results Recording)

Enter measured values for the defined characteristics.
 Monitor Production activities through SPC Control Charts

Step 3: Generate & Analyse Control Charts

•Transaction: QC01 (Create Control Chart)

•Transaction: QC02 (Update Control Chart)
•Analyse process variations using visual control limits.

Step 4: Corrective Actions (if process is out of control)

•Identify root causes for deviations.

•Implement corrective measures (adjust machine settings, recalibrate tools, etc.).
 Monitor Production activities through SPC Control Charts

4. Benefits of SPC Control Charts in SAP QM

Early Detection of Quality Issues – Reduces defects before they reach customers.
Improves Production Consistency – Ensures stable processes.
Reduces Costs – Minimizes scrap, rework, and waste.
Ensures Compliance – Meets regulatory and industry quality standards.
Enhances Decision-Making – Provides real-time insights for quality improvement.
 Managing Internal defects

Internal defects in SAP Quality Management (QM) refer to non-conformities identified during
in-process or final inspections in production. SAP QM provides tools to record, analyze, and
correct defects, ensuring continuous quality improvement.

1. Defect Recording in SAP QM

Defects can be recorded during the following scenarios:

In-process inspection (Inspection Lot - Type 03)
Final inspection (Inspection Lot - Type 04)
Goods receipt from production
Stock transfer inspection (Inspection Lot - Type 08)
 Managing Internal defects

Transaction Codes for Defect Recording

•QA11 – Record Defect for an Inspection Lot

•QF01 – Create Quality Notification for Defect
•QE51N – Record Inspection Results

Steps to Record Defects

1.Go to QA11 (Record Defect).

2.Enter the Inspection Lot Number.
3.Choose the Operation & Inspection Characteristic.
4.Enter defect details (Defect Code, Description, Quantity Affected).
5.Save the defect record.
 Managing Internal defects

2. Managing Defects Using Quality Notifications

Once a defect is recorded, a Quality Notification (QN) can be created for corrective actions.

Types of Quality Notifications

Notification Type Purpose

Q1 - Customer Complaint External defects reported by customers

Q2 - Internal Problem Defects identified within production

Q3 - Supplier Issue Defects due to poor supplier quality

 Managing Internal defects

Transaction Codes for Quality Notifications

•QM01 – Create Quality Notification

•QM02 – Change Quality Notification
•QM03 – Display Quality Notification

Steps to Manage Defects with Notifications

1.Create a Notification (QM01).
2.Select Notification Type (Q2 - Internal Problem).
3.Enter defect details (Material, Inspection Lot, Defect Type).
4.Assign responsible department for corrective action.
5.Define root cause & corrective actions.
6.Close the notification after resolution.
 Managing Internal defects

3. Defect Processing: Scrapping, Rework, or Stock Transfer

A. Scrapping Defective Material

▪ Transaction: QA32 (Inspection Lot Processing)
▪ Choose Stock Posting → Scrap (Movement Type 551)

B. Rework Processing
▪ Transaction: CO07 (Create Rework Order)
▪ Assign defective material to a rework process.
▪ Confirm rework completion and update inspection lot.

C. Blocked Stock Transfer

▪ Transaction: QA11 → Stock Posting

▪ Move defective stock to Blocked Stock (Movement Type 350)
 Managing Internal defects

4. Root Cause Analysis & Preventive Actions

Ishikawa (Fishbone) Diagrams – Identify root causes of defects.

5 Whys Method – Determine underlying production issues.
Corrective & Preventive Actions (CAPA) – Implement solutions to prevent recurrence.

5. Reporting & Analysis of Internal Defects

SAP QM provides reports to monitor defect trends and take preventive measures.
Key Reports for Internal Defects
•MCXC – Quality Management: Inspection Lots Overview
•QM11 – List of Quality Notifications
•QA33 – Inspection Lot Results
•SAP Fiori Apps – Real-time defect analytics
 Managing Internal defects

6. Benefits of Managing Internal Defects in SAP QM

Improves Production Quality – Identifies and resolves defects proactively.

Reduces Rework & Scrap Costs – Minimizes waste and unnecessary production expenses.
Ensures Compliance – Helps meet ISO, GMP, and regulatory requirements.
Enhances Decision-Making – Provides real-time insights for quality improvement.
Integration with Sales and distribution
Integration with Sales and distribution

Managing customer specific quality

requirements

Inspection lot at the time of delivery

SAP SD Customer complaint handling

Inspection lot at the time of customer return

receipt

Generate and deliver quality certificates to

customer
 Managing customer specific quality requirements

SAP Quality Management (QM) enables businesses to manage customer-specific quality

requirements effectively. These requirements ensure that products meet customer
expectations before delivery.

1. Setting Up Customer-Specific Quality Requirements

A. Maintain Customer-Specific Quality Information Record (QI07)

1.Transaction Code: QI07.

2.Define customer-specific inspection specifications.
3.Assign customer-specific inspection methods & sampling procedures.
4.Link to the Quality Info Record (QIR) for procurement & delivery.
 Managing customer specific quality requirements

B. Configure Quality Management in Customer Master (XD02 / VD02/ BP)

•Navigate to Sales Area → Quality Management.

•Define inspection setup per customer requirement.
•Assign certificates & quality agreements.

C. Maintain Customer-Specific Inspection Plans (QP01)

•Create an inspection plan for a material & link it to the customer.

•Define inspection characteristics (qualitative/quantitative).
•Assign sampling procedures & test equipment.
 Managing customer specific quality requirements

2. Customer-Specific Inspection Lot Processing

A. Goods Issue Inspection for Delivery (Inspection Type 10)

• Transaction Code: QA32 – Process Inspection Lot

• System generates an inspection lot for customer delivery
• Record inspection results (QE51N)
• Usage decision (UD) – Accept or Reject

B. Generating Certificates of Analysis (COA) for Customers

• Transaction Code: QC21 – Create Certificate

• Assign customer-specific quality parameters
• Generate & print Certificate of Analysis (COA) for delivery
 Managing customer specific quality requirements

3. Handling Customer Complaints & Non-Conformance

A. Creating Quality Notifications for Customer Complaints (QM01)

• Notification Type: Q1 (Customer Complaint).

• Capture defect details, corrective actions & resolution steps.
• Link complaints to the Sales Order & Delivery Document.

B. Managing Returns & Rework (SAP SD & QM Integration)

• Returns Order (VA01) – Create a return sales order.

• Inspection Lot for Returns (Inspection Type 06).
• Perform rework, scrap, or replacement process.
 Managing customer specific quality requirements

4. Monitoring Customer Quality Performance

A. Reports & Analytics

MCXC – Quality Management: Inspection Lot Overview
QM11 – List of Customer Complaints
QC20 – Certificate Analysis for Customer Deliveries
SAP Fiori Apps – Real-time customer quality insights

5. Benefits of Managing Customer-Specific Quality in SAP QM

Ensures compliance with customer requirements

Reduces customer complaints & returns
Improves customer satisfaction & brand reputation
Enables traceability & audit readiness
 Inspection lot at the time of delivery

SAP QM allows quality inspection before delivery to the customer to ensure product quality
compliance. This process is typically managed using Inspection Type 10 (Delivery).

1. Enabling Inspection Lot for Delivery

A. Configure Quality Inspection in the Material Master (MM02)

1.Transaction Code: MM02

2.Go to the Quality Management view
3.Activate "Insp. Type 10" (Goods Issue for Delivery)
4.Set Inspection Setup & Control Indicators
 Inspection lot at the time of delivery

2. Processing the Inspection Lot for Delivery

A. Automatic Inspection Lot Generation

• When a delivery is created (VL01N / VL02N), SAP generates an inspection lot.

• The inspection lot appears in QA32 (Inspection Lot Processing).

B. Recording Inspection Results (QE51N)

• Navigate to Transaction QE51N.

• Enter the Inspection Lot Number.
• Record qualitative/quantitative results for inspection characteristics.
• Save the results.
 Inspection lot at the time of delivery

3. Generating a Certificate of Analysis (COA) for Customers

• Transaction Code: QC21.

• Assign customer-specific quality parameters.
• Generate & print the COA for delivery.

4. Managing Rejections & Quality Notifications

A. Handling Rejections
• Block the delivery (VL02N) if the product fails inspection.
• Initiate rework or replacement process.

B. Creating a Quality Notification (QM01)

• Create a Q1 (Customer Complaint) notification.
• Assign corrective & preventive actions (CAPA).
 Inspection lot at the time of delivery

5. Reporting & Analytics

QA32 – Inspection Lot List

QC20 – Certificate Analysis for Deliveries
MCXC – Quality Inspection Report

Benefits of Delivery Inspection in SAP QM

Ensures defect-free products before shipment

Improves customer satisfaction & compliance
Reduces returns & complaints
 Customer complaint handling

SAP Quality Management (QM) provides structured handling of customer complaints using
Quality Notifications (QNs). This ensures efficient tracking, resolution, and analysis of
complaints.

1. Creating a Customer Complaint (QM01) :-

Transaction Code: QM01

1.Notification Type: Choose Q1 - Customer Complaint
2.Enter Customer Details & Material Information
3.Provide Complaint Description
4.Assign Responsible Department
5.Save the notification
 Customer complaint handling

2. Processing the Complaint (QM02)

Transaction Code: QM02

Review the complaint details
Analyse the root cause
Determine required corrective actions (CAPA)
Assign actions to responsible users
Track & monitor resolution progress
 Customer complaint handling

3. Recording Investigation & Corrective Actions

Assign tasks to departments for investigation

Capture defect details & affected products
Initiate corrective/preventive actions (CAPA)
Link to Quality Inspection (QA32) for follow-up testing

4. Closing the Complaint (QM03)

Transaction Code: QM03

Verify corrective actions are implemented
Document resolution details
Communicate status to the customer
Close the notification
 Customer complaint handling

5. Reporting & Analytics

QM10 – Open Quality Notifications

QM11 – Completed Complaints
MCXB – Complaint Analysis

Benefits of SAP QM for Complaint Handling

Improves customer satisfaction

Ensures quick resolution of issues
Prevents recurrence with CAPA tracking
Enhances product quality through feedback
 Inspection lot at the time of customer return receipt

SAP QM allows automatic inspection lot creation when a customer return is received. This
ensures quality checks before restocking or scrapping returned materials.

1. Configuration for Inspection Lot Creation

Inspection Type: 06 – Returns from Customer.

Material Master (MM02): Activate 06 in the QM view.
Quality Info Record (QIR): Maintain Control Keys for returned materials.
 Inspection lot at the time of customer return receipt

2. Process Flow for Customer Returns in SAP QM

Step 1: Create Return Sales Order (VA01)

•Use Order Type: RE (Returns Order)

•Enter material and quantity
•Assign return reason

Step 2: Create Return Delivery (VL01N)

•Reference the return order

•Verify return material and quantity
•Inspection Lot is Automatically Created
 Inspection lot at the time of customer return receipt

Step 3: Inspection Processing (QA32 / QA11)

• Review the Inspection Lot

• Perform Quality Checks
• Record Usage Decision (UD)
• Accept → Restock to unrestricted stock
• Reject → Scrap or return to supplier

Step 4: Post Goods Receipt (MIGO)

• Stock is updated based on UD

 Inspection lot at the time of customer return receipt

3. Reports & Monitoring

QA33 – Open Inspection Lots for Returns.

QA32 – Usage Decision for Inspection Lots.

Benefits of Using SAP QM for Customer Returns

Prevents defective stock from re-entering inventory.

Ensures compliance with quality standards.
Improves traceability of customer returns.
 Generate and deliver quality certificates to customer

➢ SAP QM enables the automatic generation and delivery of quality certificates (e.g., COA –
Certificate of Analysis) to customers based on inspection results.

1. Prerequisites for Quality Certificate Generation

Material Master (MM02) – Activate Certificate Type in QM view

Customer Master (XD02 / VD02/ BP) – Assign Certificate Profile
Certificate Profile (QC15) – Define layout and content
Inspection Plan (QP01) – Include relevant characteristics
 Generate and deliver quality certificates to customer

2. Process Flow for Generating Quality Certificates

Step 1: Inspection Lot Processing (QA32 / QA11)

•Inspect the material
•Record results and Usage Decision (UD)

Step 2: Certificate Generation (QC21 / QC22)

•Select inspection lot
•Generate a Certificate of Analysis (COA)
•Review and validate certificate details

Step 3: Certificate Delivery

•Automatic Printing (QC20) – Print certificate during delivery
•Email / PDF Export (SmartForms / SAPscript)
•Manual Send (QC15 / QC16) – Send via SAP output
 Generate and deliver quality certificates to customer

3. Reports & Monitoring

QC21 – Display Generated Quality Certificates

QC15 – Certificate Profile Configuration

Benefits of Using SAP QM for Quality Certificates

Ensures compliance with customer quality requirements

Reduces manual effort in certificate preparation
Automates delivery via email or print
Integration with Plant Maintenance
Integration with Plant maintenance

Equipment related inspection characteristic

maintenance

SAP PM Inspection for Service order

Inspection for Calibration order

 Equipment related inspection characteristic maintenance

Equipment-Related Inspection Characteristic Maintenance in SAP QM

In SAP Quality Management (QM), equipment-related inspection characteristics are used for
equipment calibration, preventive maintenance, and quality inspections. These characteristics
ensure that the equipment meets quality and compliance standards.
 Equipment related inspection characteristic maintenance

Steps to Maintain Equipment-Related Inspection Characteristics in SAP QM

Step 1: Define Inspection Characteristics

1.Go to Transaction QS21 (Create Master Inspection Characteristic)

2.Enter:
1. Plant
2. Characteristic Name (e.g., Pressure, Temperature, Voltage)
3. Control Indicators (Quantitative/Qualitative, Required Entry, etc.)
3.Assign:
1. Units of Measurement
2. Lower & Upper Limits (if applicable)
4.Save the characteristic
 Equipment related inspection characteristic maintenance

Step 2: Link Inspection Characteristics to Equipment Task List

1. Go to Transaction IA05 (Create Equipment Task List)

2. Enter:
1. Equipment Number
2. Task List Group & Group Counter
3. Add operation steps
4. In the Inspection Characteristics Tab, assign:
1. Master Inspection Characteristics (from QS21)
2. Control Indicators (e.g., Mandatory, Optional, etc.)
5. Save
 Equipment related inspection characteristic maintenance

Step 3: Assign Inspection Characteristics in Maintenance Plans

1. Go to Transaction IP41 (Create Maintenance Plan)

2. Enter:
1. Equipment Number
2. Task List (IA05)
3. Inspection Type (Calibration, Preventive Maintenance)
3. Define scheduling parameters
4. Save the plan
 Equipment related inspection characteristic maintenance

Step 4: Execute Equipment Inspection & Record Results

1. Create Inspection Lot using Transaction QA32

2. Record results for assigned Inspection Characteristics
3. Accept or Reject based on measured values
4. Complete the inspection

Key Benefits

Ensures equipment compliance with quality standards

Automates equipment calibration and preventive maintenance
Reduces downtime by proactive inspection
 Inspection for Service order

Inspection for Service Order in SAP QM

In SAP Quality Management (QM), inspections related to service orders ensure that services
performed meet quality standards. This is particularly useful for industries dealing with
maintenance, repairs, and service-related processes.

Steps to Perform Inspection for a Service Order in SAP QM

Step 1: Configure Inspection for Service Orders.

1.Go to Transaction OPL8 (Define Order Type-Dependent Parameters).

2.Select the required Order Type (e.g., PM01 - Preventive Maintenance or PM02 - Repair
Order).
3.Under Inspection Type, assign the appropriate Inspection Type (e.g., 14 - Service Order
Inspection).
4.Save the configuration.
 Inspection for Service order

Step 2: Create a Service Order

1. Go to Transaction IW31 (Create Service Order)

2. Enter:
1. Order Type (e.g., PM01, PM02)
2. Equipment or Functional Location
3. Required Dates & Work Center
3. Add Operations & Components

Step 3: Assign Inspection Characteristics

1. In the Operations Tab, navigate to the Control Key

2. Ensure that Quality Inspection Required is checked
3. Assign an Inspection Plan (Created in QP01)
 Inspection for Service order

Step 4: Create & Process Inspection Lot

1. Go to Transaction QA32 (Process Inspection Lot)

2. Enter the Service Order Number
3. Select the Inspection Lot and perform Results Recording (QE01)
4. If required, perform Usage Decision (QA11)

Key Benefits

Ensures quality compliance for services

Helps track service efficiency and defect rates
Enables integration with maintenance and service processes
 Inspection for Calibration order

Inspection for Calibration Order in SAP QM

Calibration inspections in SAP QM ensure that measuring instruments and equipment meet
quality standards. The process integrates with Plant Maintenance (PM) and Quality
Management (QM) to create and execute calibration orders efficiently.

Steps to Perform Calibration Inspection in SAP QM

Step 1: Define Inspection Type for Calibration

1.Go to Transaction QS51 (Maintain Inspection Type)

2.Select the appropriate Inspection Type (e.g., 89 – Calibration Inspection)
3.Assign it to the Equipment Category used for calibration
 Inspection for Calibration order

Step 2: Create an Inspection Plan

1. Go to Transaction QP01 (Create Inspection Plan)

2. Enter:
1. Material/Equipment Number
2. Plant
3. Inspection Type (89 - Calibration)
4. Operation details (e.g., Measurement checks)
3. Assign Inspection Characteristics (Quantitative or Qualitative)
 Inspection for Calibration order

Step 3: Create a Calibration Order

1. Go to Transaction IW31 (Create Maintenance Order)

2. Enter:
1. Order Type (PM06 – Calibration Order)
2. Equipment Number (Calibration object)
3. Functional Location (If applicable)
3. Assign Inspection Characteristics

Step 4: Automatic Inspection Lot Creation

1. When the Calibration Order is released, an Inspection Lot is generated automatically

2. Go to Transaction QA32 (Display Inspection Lot) to verify
 Inspection for Calibration order

Step 5: Record Inspection Results

1. Go to Transaction QE01 (Results Recording)

2. Select the Inspection Lot
3. Enter Measurement Results
4. Save the recorded data

Step 6: Make a Usage Decision

1. Go to Transaction QA11 (Usage Decision Entry)

2. Select the Inspection Lot
3. Choose Accept or Reject based on recorded results
4. Save
 Inspection for Calibration order

Key Benefits of Calibration Inspection in SAP QM

Ensures accurate measurement of instruments

Automates inspection lot generation during order creation
Integrates with PM and QM modules for seamless execution
Supports regulatory compliance for calibration processes
Thank you