SAP MM
Training :
Purchase
Author: Ghassen Beldi
Order
Introduction
Content
Objectives
Introduction
Content
Introduction
Objectives:
Understand MM Procurement Flow.
Understand the Entreprise Organizational
Structure in MM.
Understand MM Master Data.
Execute MM Procurement Flow.
Create
Purchase
Order
Purchase Order Creation
Menu SAP
Code de transaction
Logistics --> Materials Management -->
Purchasing --> Purchase Order--> Create
ME21N
Purchase Order Creation
Menu SAP
Code de transaction
Logistics --> Materials Management -->
Purchasing --> Purchase Order--> Create
ME21N
Create Purchase Order initial screen is displayed .
To expand the Header and Item Overview sections, click on :
to expand both header and item overview.
The
will change to
and fields are displayed.
Purchase Order Creation
Menu SAP
Code de transaction
Logistics --> Materials Management -->
Purchasing --> Purchase Order--> Create
ME21N
Use
to display the list of
possible document types: Select
Standard PO
Enter the Vendor number
In the Header section, click the
Org. Data tab and complete the
following fields:
a. Purch. Org.
b. Purch. Group
c. Company Code
8
Purchase Order Creation
Menu SAP
Code de transaction
Logistics --> Materials Management -->
Purchasing --> Purchase Order--> Create
ME21N
In the Header section, click on
the Org. Data tab and complete
the following fields:
a. Purch. Org.
b. Purch. Group
c. Company Code
Purchase Order Creation
Menu SAP
Code de transaction
Logistics --> Materials Management -->
Purchasing --> Purchase Order--> Create
ME21N
In the Item Overview section enter:
Material number to be ordered
PO Quantity
Delivery Date
Currency
Plant
Storage Location
10
Purchase Order Creation
Menu SAP
Code de transaction
Logistics --> Materials Management -->
Purchasing --> Purchase Order--> Create
ME21N
Click on
.
The following fields will be automatically populated from the material
master record of the material that was entered:
Item The field will be populated with the number 10 as the
designation for the first line item
Short Text Description of the material
OUn Order Unit of measure for the material
C Date category
Net Price Price of the material unit
Per Default value for the order unit
of measure
11
Purchase Order Creation
Menu SAP
Code de transaction
Logistics --> Materials Management -->
Purchasing --> Purchase Order--> Create
ME21N
Click on
to verify the entries and for any other required
information. Make any required changes.
Click on
to save the purchase order.
12
Purchase Order
Typestypes, there are four types
procurement
For different
purchase order:
of
Subcontracting Purchase
Order Consignment
Purchase Order
Stock
Transfer
Purchas
Service
Order Purchase Order
13
Purchase Order
Types
Subcontracting Purchase
Order:
In subcontracting the vendor (the subcontractor) receives
components from the ordering party with the help of which it
produces a product.
The product is ordered by your company through a
purchase order.
The components required by the vendor (seller) to manufacture
the ordered product are listed in the purchase order and provided
to the subcontractor.
Subcontracting purchase order can be created by following
the below step.
14
Purchase Order Creation
Menu SAP
Code de transaction
Logistics --> Materials Management -->
Purchasing --> Purchase Order--> Create
ME21N
Create Purchase Order initial screen is displayed .
In Item category
select
L
for
subcontracting
15
Purchase Order
Types
Consignment Purchase
Order
In consignment material is available at organization store
premises, however it still belongs to the vendor (seller)/Owner of
the material.
If you utilize the material from consignment stocks, then you
have to pay to the vendor.
16
Purchase Order Creation
Menu SAP
Code de transaction
Logistics --> Materials Management -->
Purchasing --> Purchase Order--> Create
ME21N
In Item category
select
K
for
Consignment.
17
Purchase Order
Types
Stock Transfer Purchase
Order:
In stock transfer goods are procured and supplied within a
company.
One plant order the goods internally from another plant
(receiving plant/issuing plant).
The goods are procured with a special type of purchase order the stock transport
18
Purchase Order
Types
Logistics --> Materials Management -->
Menu SAP
Purchasing --> Purchase Order--> Create
Code de transaction
ME21N
In Item category
select U for stock
Transfer
19
Purchase Order
Types
Service Purchase Order
In service a third party will provide the services to company.
These services will include maintenance like electricity,
oiling of machines, internet.
20
Purchase Order
Types
Logistics --> Materials Management -->
Menu SAP
Purchasing --> Purchase Order--> Create
Code de transaction
ME21N
In Item category
select D for stock
Transfer
21
Organizational
Structure
22
Organizational Structure
Client
Company
Code
Plant
SLoc1
SLoc2
SLoc n
23
Organizational Structure
Client:
Represents a grouping or combination of legal,
organizational, business and/or administrative
units with a common purpose.
Company Code:
Company Code represents an independent
accounting unit within a client. Each
company code has its own balance sheet and its own
profit and loss statement.
Plant:
Operational unit within a
company code
Storage Location:
This level contains the data specific to a storage
location. Stock levels are an example of the data
maintained for each storage location.
24
Organizational Structure
Purchasing Organization:
An organizational unit responsible for procuring
materials or services for one or more plants and for
negotiating general conditions of purchase with
vendors. The purchasing organization assumes legal
responsibility for all external purchase transactions.
Purchasing Group:
The purchasing organization is further subdivided
into purchasing groups, which are responsible for
day-to-day buying activities. A purchasing group can
also act for several purchasing organizations
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26
Master Data
27
Material Master
The material master stores all the relevant data
needed to procure, consume and store a material.
Data in the material master is organized by levels
(client, plant, storage location, etc.)
Materials are also grouped together using material
types
Material types group together materials with similar
attributes
28
Service Master
Service masters are records in which description of all
services that may need to be procured can be stored,
Master records are suitable for certain combinations of
services that are likely to be referenced again and again
in various business transactions.
29
Vendor Master
The vendor master record contains all required information
on a vendor.
It s maitained by Financial accounting and the Purchasing
departement.
In accounting, the vendor is regarded as the companys
crediting business partner. The vendor master record is
therefore maitianed by accounting and purchasing.
Each user depatment can maintain general data centrally or
decentrally, as well as purchasing and accounting-speceficdata.
30
Purchase Info Record
Purchasing info record stores information on material
and vendor supplying that material. For Example:
Vendors current price of a particular material is stored
in info record.
Purchase info record can be maintained at plant level or
at purchasing organization level.
Info record can be maintained for four procurement
types:
-
Standard
Subcontracting
Pipeline
Consignment
31
Source List
A particular material can be ordered from different
vendors in different time intervals. This information
can be maintained in a list that is called as source list.
Source list include list of possible sources of supply for a
material over a given framework of time.
Info record can be maintained for four procurement
types:
-
Standard
Subcontracting
Pipeline
Consignment
32
Execution of
Procurement
Flow
33
Execution of Procurement
Flow
34
Purchase Requisition
Purchase requisition is a request that is made to purchasing
organization to procure certain list of material.
Purchase requisition is an internal document; specifically it
remains within the organization.
Purchase requisition needs approval from purchasing
organization.
If purchase requisition is approved then changes are possible
only to limited extent
35
Purchase Requisition
Menu SAP
Code de transaction
Logistics --> Materials Management -->
Purchasing --> Purchasing Requisition --> Create
ME51N
36
Purchase Requisition
Menu SAP
Code de transaction
Logistics --> Materials Management -->
Purchasing --> Purchasing Requisition --> Create
ME51N
Fill in all required details like name of material, quantity,
delivery date, material group, plant
Click on
created.
to save : A new Purchase Requisition will be
37
Request For Quotation
Request for quotation is a form of invitation that is sent to
vendors to submit quotation indicating pricing and their
terms and conditions.
RFQ contains details about goods or services, quantity,
date of delivery and date of bid on which it is to be
submitted.
Quotation is a reply by a vendor in response to request for
quotation.
38
Request For Quotation
Menu SAP
Code de transaction
Logistics --> Materials Management -->
Purchasing --> RFQ/Quotation--> Request for
Quotation --> Create
ME41
39
Request For Quotation
Menu SAP
Code de transaction
Logistics --> Materials Management -->
Purchasing --> RFQ/Quotation--> Request for
Quotation --> Create
ME41
Fill in all required details like
type of RFQ (if standard then
AN), language, date of RFQ,
Quotation deadline,
purchasing organization and
group.
Select Reference to PReq
tab
40
Request For Quotation
Menu SAP
Code de transaction
Logistics --> Materials Management -->
Purchasing --> RFQ/Quotation--> Request for
Quotation --> Create
ME41
Enter the requisition
number for which you
want to create RFQ.
Click on save.
A new Request for
Quotation will be created
with reference to
Purchase Requisition.
41
Request For Quotation
Menu SAP
Code de transaction
Logistics --> Materials Management -->
Purchasing --> RFQ/Quotation--> Request for
Quotation --> Create
ME41
Select the needed items
Adopt the selection
42
Request For Quotation
Menu SAP
Code de transaction
Logistics --> Materials Management -->
Purchasing --> RFQ/Quotation--> Request for
Quotation --> Create
ME41
Select the Vendor
and Save
A message is
displayed:
43
Purchase Order
Procurement starts with creating purchase order that is a
formal document given to vendors and it include list of
goods and materials that are to be procured.
So, accordingly purchase order can be created for different
types of procurement. The type of procurement can be
maintained in a field that is known as item category as
shown below
44
Purchase Order
Menu SAP
Code de transaction
Logistics --> Materials Management -->
Purchasing --> Purchase Order--> Create
ME21N
45
Purchase Order
Menu SAP
Code de transaction
Logistics --> Materials Management -->
Purchasing --> Purchase Order--> Create
ME21N
In the displayed
screen click on
46
Purchase Order
Menu SAP
Code de transaction
Logistics --> Materials Management -->
Purchasing --> Purchase Order--> Create
ME21N
Click on
Choose
Requests for
quotations
and click on
47
Purchase Order
Menu SAP
Code de transaction
Logistics --> Materials Management -->
Purchasing --> Purchase Order--> Create
ME21N
Select the needed RFQ
Drag and drop the selecte
Document to
Click on
to save
A message is
displayed :
48
Purchase Order
Menu SAP
Code de transaction
Logistics --> Materials Management -->
Purchasing --> Purchase Order--> Create
ME21N
In the displayed screen
click on
49
Contracts
Contract is a long term outline agreement between vendor
and ordering party over predefined material or services
over certain framework of time.
There are two types of contract:
Quantity Contract: In this type of contract overall value is
specified in terms of total quantity of material to be supplied by
vendor.
Value Contract: In this type of contract overall value is
specified in terms of total amount to be paid for that material to
the vendor.
50
Inventory Management
Inventory management deals with management of stock
either on value or quantity basis.
Planning, entry and keeping records of all goods movement
comes under inventory management.
Goods movement will create a document that will update
all stock quantity and value in inventory that is known as
material document.
Material document will be referred by a document
number and document year.
51
Inventory Management
Menu SAP
Code de transaction
Logistics --> Materials Management--> Inventory
Management--> Goods Movement --> Goods
Movement (MIGO)
MIGO
52
Inventory Management
Menu SAP
Code de transaction
Logistics --> Materials Management--> Inventory
Management--> Goods Movement --> Goods
Movement (MIGO)
MIGO
Goods receipt can
be posted against
various
documents.
Select the required
document from
the drop-down list.
For example in this
case we are
selecting purchase
order.
Select the
movement type
according to the 53
Inventory Management
Menu SAP
Code de transaction
Logistics --> Materials Management--> Inventory
Management--> Goods Movement --> Goods
Movement (MIGO)
MIGO
Details from the
material
document are
displayed.
Check Item OK
at the bottom of
the page and
click on
Click on Save
A material
document
number will be
generated. Goods
receipt is now
posted against54
a
Invoice Verification
Invoice verification marks the end of procurement after
purchase order and goods receipt.
Invoice posting will update all related documents in financial
and accounting.
Blocked invoice that vary from actual invoice can be processed
through invoice verification.
55
Invoice Verification
Menu SAP
Code de transaction
Logistics --> Materials Management --> Logistic
Invoice Verification --> Document Entry --> Enter
Invoice
MIRO
56
Invoice Verification
Menu SAP
Code de transaction
Logistics --> Materials Management --> Logistic
Invoice Verification --> Document Entry --> Enter
Invoice
MIRO
Fill in all necessary details: invoice posting date and the
amount.
57
Invoice Verification
Menu SAP
Code de transaction
Logistics --> Materials Management --> Logistic
Invoice Verification --> Document Entry --> Enter
Invoice
MIRO
Chose purchase
order/Schedulin
g agreement as
reference
Click here to
select the
vendor
Enter the
vendor and
click on
58
Invoice Verification
Menu SAP
Code de transaction
Logistics --> Materials Management --> Logistic
Invoice Verification --> Document Entry --> Enter
Invoice
MIRO
Select the
needed
purchasing
document and
click on
Click on
to
check messages.
Click on save:
Invoice is now
posted for the
goods receipt.
59
60
Thanks for
your
attention
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