CHAPTER 1

CREATION OF ELEMENTS

1) CREATION OF ELEMENTS:

a) Company / Client
b) Company Code
c) Plant
d) Storage Location
e) Purchase Organization
f) Material Group
g) Purchasing Group

* Use SPRO transaction code to enter into IMG (Implementation Guide) tour, Then we enter into display
structure.

This is the main SAP screen…

a) Company / Client:
SPRO + IMG <
Click
 Enterprise Structure
 Definition
 Financial Accounting
Ǿ Define Company <

Here click new entries & in this screen we get the details which to be filled and give the company /
client Name & Description, address etc. < >
eg: WILS, TATA, RILN etc…

b) Company Code:
SPRO + IMG <
Click
 Enterprise Structure
 Definition
 Financial Accounting
Ǿ Def. copy, delete & company code <
Here in company code it accepts 4 Char/Numeric
eg: NUTS, BOLT, PENS etc…
c) Plant:
SPRO + IMG <
Click
 Enterprise Structure
 Definition
 Logistics General
Ǿ Def. copy, delete & check plant <
Here we define the Plant & it accepts 4 Char/Numeric
eg: NUT 1, ECC 1, RNA 1 etc…

d) Storage Location:
SPRO + IMG <
Click
 Enterprise Structure
 Definition
 Material Management
Ǿ Maintain storage location <
Here enter the plant for which we like to maintain the Stores. Then click new entries & fill the req.
details of the [Link]., it accepts 4 Char/Numeric
eg: NSL A, BSL A, PSL 1 etc…
e) Purchase Organisation:
SPRO + IMG <
Click
 Enterprise Structure
 Definition
 Material Management
Ǿ Maintain Purchase Organisation <
Here click new entries & fill the req. details of the Purchase Organisation & it accepts 4 Char/Numeric
eg: NUTS, BOLT, PENS etc…

f) Material Group: (WG21)

SPRO + IMG <
 Logistics General
 Material Group
Ǿ Create Material Group <
To create Material Group & it accepts 5 Char/Numeric. Here fill the Mat. [Link]. Then we enter
into a new screen for Material Group description < >
eg: NUTMG, BLTMG, NUTS1, PENS2 etc…

g) Purchasing Group: ( )
SPRO + IMG <
 Material Management
 Purchasing
Ǿ Create Purchasing Groups <
Here click new entries & fill the req. details of the Purchase Group & it accepts 3 Char/Numeric
eg: NPG, BPG, KPG, PN1 etc…
 CHAPTER 2

ASSIGNMENT OF ELEMENTS

2) ASSIGNMENT OF ELEMENTS:

a) Company Code to Company

b) Plant to Company Code
c) Purchase Organization to Plant
d) Purchasing Organization to Company Code

* Use SPRO transaction code to enter into IMG (Implementation Guide) tour, Then we enter into display
structure.

a) Assign Company Code to Company:

SPRO + IMG <
Click
 Enterprise Structure
 Assignment
Ǿ Assign company code to company <
Here select our COMPANY CODE and click assign & a screen with no. of companies will be
displayed and in that we need to select our COMPANY and < > (So, that our [Link] will be under
that Company)

b) Assign Plant to Company Code:

SPRO + IMG <
Click
 Enterprise Structure
 Assignment
 Logistics General
Ǿ Assign Plant to Company Code <
Here select our PLANT and click assign & a screen with no. of company codes will be displayed and
in that we need to select our COMPANY CODES and < > (So, that our Plant will be under that
[Link])
c) Assign Purchase Organization to Plant:
SPRO + IMG <
Click
 Enterprise Structure
 Assignment
Ǿ Assign Purchase Organization to Plant <
Here select our PURCHASE ORGANIZATION and click assign & a screen with no. of PLANTS will be
displayed & in that we need to select our PLANT and < > (So, that our Purchase Organization will be
under that Plant)

d) Assign Purchasing Organization to Company Code:

SPRO + IMG <
Click
 Enterprise Structure
 Assignment
Ǿ Assign company code to company <
Here select our PURCHASE ORGANIZATION and click assign & a screen with no. of COMPANY
CODE will be displayed and in that we need to select our Company Code and < > (So, that our
Purchase Organization will be under that Company Code)

CHAPTER 3
 MASTER RECORDS

3) MASTER RECORDS:

a) Material Master
b) Vendor Master
c) Purchase Info Record
d) Source List
e) Quota Arrangement

* In materials it asks for DATE, so that the goods will be identified from the date of entry.
i.e. Material: ABP – DBP
ABP : Allow Back Posting
DBP : Disallow Back Posting

Material Types: There are 180 materials types in SAP…

Ex: ROH : Raw Materials
FERT : Finished Products
HAWA : Trading Products
KMAT : Configurable Materials

* Overall Basic settings for Material Management:

SPRO + IMG <

 Logistics General
 Material Master
 Basic settings
Ǿ Maintain Company Code for Material Management <
Here select my [Link] & give the Year, Period, then select ABP (Allow Back Posting) < >
Back to menu and click…
 Material Types
Ǿ Define attributes of material types <
Here select the type of material
eg: ROH, FERT, KMAT, HAWA etc… (Depending on the type of raw material we want)
Then double click on Quantity / Value Updating & tick our Plant for the options Quantity / Value
Updating. Tick both the options < >
Then back to main menu same path click
Ǿ Define Number Range for each Material Type <
Then click Intervals (Pen) & give intervals like… see the screen for example…and back to main menu

VALUATION AREA = PLANT

a) Material Master:

Basic settings for Material Master:

SPRO + IMG <

 Material Management
 Purchasing
 Material Master
Ǿ Define Shipping Instructions <
Here click new entries & fill the details req. < >
Back to menu and click activity…
Ǿ Define Purchasing Value Keys <
Here click new entries & then it displays as…
Key
Remainder
Acknowledgements
Fill the details < >
Note: Purchasing Value Keys serve as a data entry aid.
 Creation of Material Master: (MM01)

EASY ACCESS (*)

 Logistics
 Material Management
 Material Master
 Material
 Create General
Ǿ Immediately <

* Note: (To see the transaction code for any screen click system + status on the menu bar)
eg:
Material : Shaft
Industry : Work Shop
Material Type : ROH

Then we get a new screen, here click / select views (here there are 18 views) like…

 Basic data 1
 Basic data 2
 Purchasing
 PO Text
 General plant data / storage 1
 General plant data / storage 2
 Accounting 1
 Accounting 2…

Then click Organizational Level on that same screen @ the bottom and create Material for every Plant.
i.e. give PLANT & STORAGE LOCATION < >
* Because material has to be maintained for every individual plant
Then we get a new screen…Fill the data req. in all fields…In Purchasing fill the purchasing value key
(must).
* In Accounting 1 view, we must give Valuation Class i.e. the type of material code (ROH, KMAT etc…) as
3000 & also the Moving Price as 1000 (or) V.
b) Vendor Master:

Basic settings for Vendor Master:

SPRO + IMG <

 Material Management
 Purchasing
 Vendor Master
Ǿ Define terms of payment <
Here tick the terms of payment < >
Back to menu and click activity…
Ǿ Check incoterms <
Here take new entries & fill the Transport means i.e. by Air/Road/Water (i.e. required by the necessity
of the Client.)
Creation of Vendor Master: (MK01)

EASY ACCESS (*)

 Logistics
 Material Management
 Purchasing
 Master Data
 Vendor
 Purchase
Ǿ Create Vendor <
Here fill the data req. as P.O. & A/C Group (KRED – as it’s a internal no. range),
Then enter we get a new screen, here fill the data req. < >
The vendor master is created as below…
Creation of vendor number range & assign to Vendor A/C group
SPRO <
 Financial Accounting
 A/C receivable & A/C payable
 Vendor A/C
 Master Data
 Prepare for creating vendor master records <
Ǿ Create no. ranges for Vendor A/C <
Change intervals & insert intervals (Shift + F1)
Give the new no. range < >
Back…
Intervals (MAIN MENU BAR)
Click Transport and click (Yes) < >
Back to menu…Click activity…
Ǿ Assign no. range to vendor A/C Group <
* Select KRED – Vendor & change the no. range < >

MK02 - Change Vendor master

MK03 - Display Vendor master

c) Purchase Info Record:

It’s a source of information for the procurement of a certain material from a certain Vendor.

Basic settings for Purchase Info Record:

SPRO + IMG <

 Material Management
 Purchasing
 Purchase Info Record
1. Define Screen Layout <
Ǿ Create PIR <
Here select Basic Data & fill the data req.
2. Define Price History <
Here Define Price History of our PLANT by selecting our P.O. < >

* PIR has to be created for each material…

 Creation of Purchase Info Record: (ME11)

EASY ACCESS (*)

 Logistics
 Material Management
 Purchasing
 Master Data
 Info Record
Ǿ Create <
Here fill the details required for each plant as specified or req. By filling the tables in all screens.

d) Source List:

Basic settings for the Source List:

SPRO + IMG <

 Material Management
 Purchasing
 Source List
Ǿ Define Source List @ Plant Level <
Here click on our PLANT < >
Back to menu & click…
 Quota Arrangement
Ǿ Define No. Range <
Creation of Source List: (ME01)

EASY ACCESS (*)

 Logistics
 Material Management
 Purchasing
 Master Data
 Source List
Ǿ Create <
Here we see Material Mgt. i.e. 1 Mat. Mgt.
Then select our Material & Plant <
Then we get as …
 Source List Records < >
Back …

ME03 - Display Source list

ME04 - Change Source list

e) Quota Arrangement:

Basic settings for the Quota Arrangement:

SPRO + IMG <

 Material Management
 Purchasing
 Quota Arrangement
Ǿ Define No. Range <
Creation of Quota Arrangement: (MEQ1)

EASY ACCESS (*)

 Logistics
 Material Management
 Purchasing
 Master Data
Ǿ Maintain Quota Arrangement <
After clicking Quota Arrangement, we get material & plant…
Then click Header <
Then we get Quota Arrangement Period <
Here click ITEM, and then we get Quota Arrangement items blank,
Here fill the data < >
Back…

MEQ3 - Display Quota Arrangement

MEQ4 - Change Quota Arrangement
 CHAPTER 4

PURCHASING

4) PURCHASING:

a) Purchase Requisition (PR)

b) Request for quotation (RFQ)
c) Quotation
d) Purchase Order (Types)
e) Releasing Procedure

Purchase Requisition (PR) is an Internal document.

Request for quotation (RFQ) is an external document.
Document conversion from SAP to NON-SAP
* The purchase document is converted into Internal Document.
* Through ALE (Application Enable Linking), they find the source & destination.
* Through EDI (Electronic Data Interchange) we can transfer the data.

Rough idea of Purchase Requisition (PR):

S No A/C Assigning Doc. Type No. Range
1. rd
3 Party Standard
2.
Imported
3.

a) Purchase Requisition (PR):

Basic settings for Purchase Requisition (PR):

SPRO + IMG <

 Material Management
 Purchasing
 Purchase Requisition
Ǿ Define Number Range <
Here click on new number range <
Then click insert & click Tick Mark on the top and click Interval on the menu bar & click Transport.

Back to menu & click activity…

Ǿ Define Document type <
Here click on new entries <
Then fill the req. data < >
Back to menu & click activity…
Ǿ Processing Time <
Here fill the details req. fields & click Tick Mark < >
Back to menu & click activity…
Ǿ Define screen layout at document level <

Here select (ME51N) and click and we get a screen in that click Basic Data, and then fill the data req.

Creation of Purchase Requisition (PR): (ME51N)

EASY ACCESS (*)

 Logistics
 Material Management
 Purchase Requisition
 Create
 Item View
Item…
A – A/C Assignment – Unknown A/C
I – Item Category – Standard
Here select the material
eg: Quantity = 100
Delivery Date = [Link]
Material Group Tick it & save
Then Purchase Requisition = 0010008483 – This comes under the no. range.

ME52N - Change Purchase Requisition

ME53N - Display Purchase Requisition
b) Request For Quotation (RFQ):

Basic settings for Request For Quotation (RFQ):

SPRO + IMG <

 Material Management
 Purchasing
 RFQ / Quotation
Ǿ Define Number Range <
Here click on new number range <
Then click insert & click Tick Mark on the top and click Interval on the menu bar & click Transport.

Back to menu & click activity…

Ǿ Define document type <
Here click on new entries <
Then fill the req. data < >
Back to menu & click activity…
Ǿ Define screen layout at document level <
And fill the data req.

Creation of Request For Quotation (RFQ): (ME41N)

EASY ACCESS (*)

 Logistics
 Material Management
 Purchasing
 RFQ / Quotation
 Request For Quotation (RFQ)
 Create
Here fill the data req. Then click overview & then it asks for
Coll No.: i.e. Collective Number, Ex: 9999, Then click Vendor address (F7) & press enter & go to
overview (F7) < >
eg: RFQ. No.: 60000000009
60000000010
xxxxxxxxxxxxxxxxxxxxxxxx
 ME42 - Change RFQ
ME43 - Display RFQ

c) Maintenance of Quotation: (ME47)

EASY ACCESS (*)

 Logistics
 Material Management
 Purchasing
 RFQ / Quotation
 Request For Quotation (RFQ)
 Quotation <
Create
Then click overview (F5)& here fill the data req.
(Set Tolerance Limits)
Its in the SPRO + IMG
 Material Management
 Purchasing
 Purchase Order
Ǿ Set tolerance limits for price variance
Then click new entries fill the data req. < >

d) Purchase Order:

Basic settings for Purchase Order:

SPRO + IMG <

 Material Management
 Purchasing
 Purchase Order
Ǿ Define No. Range <
After clicking the activity, here we define the no. range… < >
Just go back & click Transport on the main menu bar
Back to menu…
Ǿ Define Document Types <
* Standard Purchase Order document type is NB
* Stock transport order is UB
Here fill the data req. < >
Back to menu…
Ǿ Set Tolerance Limits for Price Variance <
Here take Tolerance Limit as SE & fill the data req.
(1000 to 10,000 min. & max. Tolerance Limits range)

Notes:

Purchase Order:
External document
Reason for raising the Purchase Order ?
MTO – Met to Order
MTS – Met to Stock
(1) Bearing, (2) Screw, (3) Iron Bars, (4) Bolts
Customer Order to Purchase Order, here 1200 item MET to Order.

Types of Purchase Order:

1. Standard Purchase Order
2. Sub-Contract Purchase Order
3. Stock Transport Order

Creation of Purchase Order: (ME21N)

EASY ACCESS (*)

 Logistics
 Material Management
 Purchasing
 Purchase Order
 Create
Ǿ ME21N – Vendor / Supplying Plant known <
*FI Part:
OB37 TC – Assign Company Code to Fiscal Year Variant
OB62 TC – Assign Company Code to Chart of A/C
(Then click on the doc. Type i.e. the Vendor)
 HEADER LEVEL DETAILS:
Here we need to give delivery invoice data, Organization data, text data, item level details / item
overview. Here in this we see as all the above domains.
A= A/C, I=Item Category, Material, P.O., Delivery date, Net price, Currency etc…or enter RFQ
directly so, that it gives all the above in detail.
Then we must click CHECH.

ME22N - Change Purchase Order

ME23N - Display Purchase Order

e) Releasing Procedure:

Basic settings for Releasing Procedure:

SPRO + IMG <

 Material Management
 Purchasing
 Purchase Order
 Releasing Procedure for Purchase Order
Ǿ Define Releasing Procedure for Purchase Order <
(Releasing Procedure is the approval procedure for purchasing document to release)
Here we get the screen as…

Then click Release Group, then copy the Release Group line and create new < >
Back. Then click Release Codes, then copy the Release Codes line and create new < >

Then click Release Indicator, then copy the Release Indicator line and create new < >
And do the same as above like copy from source < >
Then we get the output as below…
In easy access SE11 is used to check the TABLES created.

Then click Release Strategy, then copy the Release Strategy line and create new < >
And do the same as above like copy from source < >
Then we get the output as below…
Back & Click activity in menu…
Ǿ Edit Characteristics <
Here give the Characteristics name & click create, then we get data type, then click currency format.
Created for the Company / Clint level.
Then back to menu…
Ǿ Edit Class <
Here fill the req. data & click create
Then back to menu…
Ǿ Check Release Strategy <
It’s used to check the Release Strategy.
 CHAPTER 5

PRICING PROCEDURE

Material : Mat. nr.

Vendor : LIFNR
Purchase Organization : EKORG
Plant : WERK
Info eat : ESOKZ

CONDITION TYPES:

The condition types are used for pricing elements such as price & discount, surcharge, taxes or
delivery cost in the SAP system. These are stored in the system in condition record.

Access requirement:

It’s a search strategy with the aid of which the SAP system searches for valid condition records of
a certain condition types.
 CHAPTER 6

OUTLINE AGREEMENT

OUT LINE AGREEMENTS

QUANTITY BASED CONTRACTS

SCHEDULING AGREEMENTS

WITH DOC. TYPES

VALUE BASED WITHOUT DOC. TYPES

QUALITY BASED

Basic Settings for the Stock Transport Order:

SPRO + IMG <

 Material Management
 Purchasing
 Purchase Order
Ǿ Setup Stock Transport Order <
Here click Plant, then fill the data req.
Back to menu…Then click…
Ǿ Checking Rule <
Create New (OMGN : TC)
Fill the details req. Back to menu…
Then click…
Ǿ Define Checking Rule <
Here we see our stock transport code & click copy from
Back to menu…Then click…
Ǿ Assign Delivery Type Checking <
Here also select New Entries & fill the data req…
Back to menu…Then click…
Ǿ Define Document Types <
Here it’s a pre defined data but the no. range has to be given…
Click New Entries by copying < >
 CHAPTER 7

INVENTORY MANAGEMENT

7) INVENTORY MANAGEMENT:

a) Goods Receipt
b) Goods Issue
c) Transfer Posting
d) Stock Transport
e) Reservation

a) GOODS RECEIPT:

Creation of Goods Receipt: (MIGO)

EASY ACCESS (*)

 Logistics
 Material Management
 Inventory Management
Ǿ Goods Movement (MIGO: TC) <
Here click goods receipt
Click others
Click enter document data
Posting data
Material Slip Number
Click detailed data
Enter material
Go to Quantity & enter the Quantity
Go to i.e. Location / [Link]./ Plant
Enter the Plant + [Link]. then click <, then we get item @ left corner of the screen then select / tick it.

b) GOODS ISSUE:

Creation of Goods Issue: (MEQ1)

EASY ACCESS (*)

 Logistics
 Material Management
 Inventory Management
 Goods Movement
Ǿ Goods Issue (MB1A : TC) <
Here fill
 Document Data i.e. reference for particular rate
 Posting Data
 Material Slip No.
 GR/GI Slip No.
 Movement Type:201
 Plant:………(1)
 Storage Location:………(2)
Then enter <

c) TRANSFER POSTING:

Creation of Transfer Posting: (MEQ1)

EASY ACCESS (*)

d) Logistics
e) Material Management
f) Inventory Management
g) Goods Movement
Ǿ Transfer Posting (MB1B:TC) <
Transfer Posting: It’s the transfer of material from one plant to another plant.
(Single step transfer posting):
Here fill the details & the movement type is 301 (Single step transfer posting) < >
* MMBE:TC for stock overview in the Plant.
(Two step transfer posting): (MB1B)
Same path as above: (MB1B) But here change the movement type 303 < >
It’s saved under Document: xxxxxxxxxxxxxxxxx
In the Two step transfer posting we’ve to receive the Material from the PLANT 1 to PLANT 2 see
goods receipt. (Goods receipt reference of 305 movement type) < >
It’s saved under Document: xxxxxxxxxxxxxxxxx
MB5T Stock in transit?

d) STOCK TRANSFER: ()
e) RESERVATION: ()

CHAPTER 8

MATERIAL VALUATION & A/C ASSIGNMENT

8) INVENTORY MANAGEMENT:

Basic Settings for the Material Valuation:

SPRO + IMG <

 Material Management
 Valuation & A/C Assignment
 Split Valuation
Ǿ Active Split Valuation <
Here select Active Split Valuation
Back to menu…Then click activity…
Ǿ Configure Split Valuation <
Valuation Type: IMPORTED
Then go to main menu click…
A/C Determination <
A/C Determination without wizard <
Ǿ Define Valuation Classes <
Here click Valuation Classes < >
Back to menu and click activity…
Ǿ Configure Automatic Posting <
In Automatic Posting click AUTOMATIC POSTING
Some of the important transaction keys for Automatic Posting are:
BSX: Inventory Postings
GBB: Offering entry for Inventory Postings
PRD: Price Difference
WRX: GR/IR Clearing A/C
RMK: Group for A/c key
* Integration between MM & FI the TC: OBYC
Click simulation & fill details the click A/C Assignment then fill the data.
For each movement type as per the company code we’ve to assign GL A/C, TC: OMWB

Notes: Valuation Area

 Type of procurement
 External (Vendor)
  Internal (In-house) i.e. Under [Link] Level
 Country of origin
 Imported
 Local
 Status of material
 New Material
 Used Material
 Repaired Material

VALUATION CATEGORY:

It determines whether stocks of material are valued together or separately. It depends upon the
case of split valuation & also it determines which valuation type.
Ex: An enterprise manages its stock of a material using the valuation category “Quantity”, which
comprises 3 different valuation types.

1. High quality, 2. Average quality, 3. Inferior quality

General Ledger Account (GL A/C): A structure that records value movement in a company code &
represents the GL A/C. items in a chart of A/C. A GL A/C has transaction figures that record changes to
the A/C during a posting period.

Account Assignment: There are 2 types:

1. A/C Assignment with wizard 2. A/C Assignment without wizard

Valuation Key: it determines the posting role that always county for the same A/C.

9. Logistics invoice verification

10. External service management

CHAPTER 11

CONSUMPTION BASED PLANNING (CBP)

MRP (Material Required Planning)

Based on 2 areas like:

1. Company Code Level
2. Plant Level (Common method for any type of organization)

Configuration of CBP:

SPRO + IMG <

 Material Management
 Consumption Based Planning
Ǿ Plant Parameters <
Here click Create & enter the Plant
Maintain – enter Plant – maintain New Plant – Planed order purchase requisition.
Ǿ Plant Parameters <
 CHAPTER 11

COUNTRY INDIA VERSION (CIN)

Country India Version (CIN):

CIN starts @ Goods Receipt Level. For taxation, excise-duties by the MM people its over taken.
CIN Version 2.2A/2.2B for SAP 3.1 Higher Version
CIN Version 3.0A for SAP 4.0-4.5 Higher Version
CIN Version 4.0A for SAP 4.6 to Latest Version

Usage of CIN:
1) Company Code Level:
- Tax data (Tax Jurisdiction)
- Reg. No.
- ECC No.
2) Plant Specific Data
3) Chapter ID: Here for each material type give an ID
4) Material: Chapter ID condition
5) Material Tax Status:
a) Excisable
b) Non-Excisable
6) Assemble of value of material
7) Vendor excise details: Reg. No., ECC No., LST, CST, PAN No.
All the tables & transaction codes start with ‘J’
CIN Version starts @ GR Level.

Excise Invoice No: 101, 102, 103 are the supporting movements for CIN
Sub – Contracting Level: Excise Documents: 57F(2), 57F(3), 57F(4) – These are the forms to be filled.

CHAPTER 13

INTEGRATION
INTEGRATION:
M.M with P.P.
M.M with S.D.
M.M with F.I.

INTEGRATION with M.M with P.P:

 At the time of MRP implementation (CBP) to the plant level company code level configuration.
 In this PP area assign storage location to MRP areas.
 PO configuration from PP to MM.
 Most of the changes in CBP can be considered.
 At the time of material creation MM has to support the MRP1, MRP2, MRP3.

INTEGRATION with M.M with S.D:

 At the time of goods issue to the customer. Ex: 601 is the movement type for the delivery goods to
the customer with respective to sales order.
 At the time of MRP with respective to sales order it’s the material availability check from the stores
 At the time o material creation MM has to support the SD version.

INTEGRATION with M.M with F.I:

 At the time of material creation in the A/C1 view. Valuation class has to be filled.
 At the time of A/C assignment configuration all the entries as per the valuation category.
 At the time of invoice verification clear the invoice with respective from PO order & send to the FI.
 At the time of pricing procedure select the standard price / moving average price.

14. Transaction Codes

15. ABAP Introduction
SAP Tables