Organization Structure Organization Structure

Note: - {1 Sales Org + 1 Distribution Channel + 1 Division = Sales Area}Client: It is a logical unit or independent unit, which is used for to organize a specific organization data.

IMPLEMENTATION PROCESS

First we have to prepare documentation about the client business (like turnover, vendors,

customers, payments, materials, production, marketing etc.)

The implementer company made two teams (1.) Steering team. (2.) Steering community

Steering team (SAP functional consultants) prepares a detailed documentation about the client with the help of core team (client company team) & this study is known as Feasibility Study. After that the steering team handed over thisdocumentation to Steering community ( Project manager, Sr. software engineer, and other higher authorities).Steering community prepares the BBP (Business Blue Print). BBP Prepares in MS-Word

• ASAP: - Accelerated System Application Product in Data Processing.

• Business Process: - ASAP Methodology1. Project Preparation2. BBP (Business Blue Print)3. Realization4. Final Preparation5. Go live & Support

• Project Preparation: -It consists of identifying team members & development strategy as how to go.AS – IS (Existing Process followed, requirements)TO – BE (Requirement analysis and best process recommended)Difference between (AS – IS) & (TO - BE) is called GAP Analysis.

• Business Blue Print (BPP): -It is a legal documentation between client & the company (implementer / service provider). We have to understand the current business process of client & analyzing the business & preparedocumentation. It is a detailed documentation for the client.

• Realization: -This Phase is used to Implement or migrate the entire business of client from Non-SAP environment to SAP environment

• Final Preparation: -This phase is used for testing & end user training. After successfully completion of this phase client is ready to run business in SAP R/3.

• Go live & Support: -In this phase we deliver the project end date & end user training at client site.

General Terms (Basics)• Client setup is done by BASIS (Business Administration System Integrated Software)It is a logical unit or independent unit, which is used to organize a specific organization data

Company, Company Code & Controlling Area are created by SAP FI/CO consultant

• Sales Part is done by SAP SD consultant{1 Sales Org + 1 Distribution Channel + 1 Division = Sales Area}

• Rest is done by SAP MM consultant (Plant, Storage location, Pur Org., Ref Pur Org)

• IDES: - Internet Demonstration Evaluated System. (Complete SAP System used for educational purpose)

• IMG: - Implementation guide (Customizing purpose)

• Maximum number of screen or sessions can be opened is 6.

Transaction Code: - /N (T.Code) Closes the current session & opens the new session.Transaction Code: - /O (T.Code) Minimizes the current screen & opens new session.

• Difference between SAP 4.7 & ECC 5.0, ECC 6.0ECC 5.0 & ECC 6.0 has its own database SAP DB, MAX DB

Path of SPROSAP EASY ACCESS --> TOOLS --> CUSTOMIZING --> IMG --> SPRO

Next Issue (Customize settings of Company, Company Code, How to create Plant, Purchasing Org., Purchasing Group, Storage Location etc...) CIN - Country India Version ~ Volume 1 PurposeCountry Version India (CIN) contains a number of enhancements to standard Sales and Distribution (SD) functions that allow you to handle local requirements, in particular excise duty.FeaturesIn Country Version India, (CIN), this component handles sales processes as found in India. In addition to the generic functions, it allows you to:Handle CENVAT in your sales processesThe system calculates excise on your sales and creates excise invoices as required and makes the appropriate postings to your CENVAT accounts.It covers sales from factories, sales from depots, and offers functions for other types of goods movements; it also covers sales to export-oriented units and export sales.Record concessional and exemption forms sent to you by your customersMake adjustment postings to your CENVAT accountsExcise Invoice (Outgoing) DefinitionThe document that acts as the proof of payment of excise duty and is required for the customer to take CENVAT credit on the itemUseIn the SAP System, there are three different procedures for creating excise invoicesSales direct from the factoryThis procedure is for when you sell manufactured goods straight from the factory at which they were produced, in which case you levy excise duty when the goods leave the factory on their way to the customer.If, when you send the goods to the customer, you enclose the commercial invoice, you create the excise invoice with reference to the commercial invoice. If you want to send the commercial invoice after you have dispatched the goods, however, you create the excise invoice with reference to a pro forma commercial invoice. For more information about these procedures, see Sales from Factories.As well as creating excise invoices individually, you can also create them in batches (see Creation of Excise Invoices in Batches).

Sales from depotsA depot is a site at which the goods are stored, away from the factory at which they were produced. In this procedure, you have to levy the excise duty when you transfer the goods from the factory to the depot, and then make sure this is passed on to the customer when it makes a purchase. For more information, see Sales from Depots.Sales (other goods movements)Some other goods movements may also require you to create an excise invoice with reference to other documents. The SAP System offers separate functions for these purposes (see Excise Invoices (Outgoing) for Other Movements).

StructureNumbering of Excise InvoicesOutgoing excise invoices have two numbers: an internal document number, which is assigned immediately you create an excise invoice; and an excise invoice number, which is not assigned until you have verified and posted it.

As far as the excise invoice number is concerned, you have to number your outgoing excise invoices in sequential order, starting each year on 1 April. You must notify the excise authority of the jurisdiction of the invoicing location. The serial number must be printed on each page of the excise invoice.Each number range is governed by a series group. You must create at least one series group in order to be able to number the excise invoices. If you need more than one number range, you must create the corresponding number of series groups. You do so in the CIN Implementation Guide (IMG), by choosing Global Settings ® Series Groups.Number of Line Items Per Excise InvoiceSome states allow you to include only a limited number of items for each page of an excise invoice (for example, if the excise invoices are to be printed on prenumbered forms). You can customize the system so that it prints the excise invoice accordingly, in the CIN IMG, by choosing Global Settings ® Excise Registration IDs.

Customer Master (Excise Data) DefinitionThe part of the customer master record that contains information relating to Indian excise duty.UseIn conjunction with other data, this data is used to calculate excise duty on various transactions.To maintain the data, from the SAP Easy Access screen, choose Indirect Taxes ® Master Data ® Excise Rate Maintenance, and then select the following options described below.StructureThe excise part of the customer master contains the following information:Customer Excise DetailsOn this screen, you enter your customers' tax registration numbers, which are used for various forms of correspondence and reports:1. Excise registration number (and the range, division, and collectorate in which this is located)2. Central sales tax (CST) number3. Local sales tax (LST) registration number4. Permanent account number (PAN)In order for the system to be able to calculate which rate of excise duty to apply on sales to the customer, you must also assign it a customer excise duty status (for more information about how this works, see Determination of Excise Duty Rates).Excise Indicator for Plant and CustomerOn this screen, you define the final excise duty indicator (for more information about how this works, see Determination of Excise Duty Rates).Determination of Excise Duty UseWhen you execute a business transaction involving materials that are subject to excise duty, the system automatically calculates the duty for you.PrerequisitesIn order for the system to be able to determine which rate of excise duty to apply, you must have maintained all the data on the Excise Rate Maintenance screen, which you can access from the SAP Easy Access screen by choosing Indirect Taxes ® Master Data ® Excise Rate Maintenance.You maintain the following types of data:Plant master dataYou assign each of your plants an excise duty indicator. You can use the same indicator for all the plants with the same excise status from a legal point of view, such as all those that are in an exempt zone.See also the information about manufacturers that are only entitled to deduct a certain portion of the duty (see Partial CENVAT Credit).Vendor master dataFor each of your vendors with the same excise status from a legal perspective, you define an excise duty indicator. You must also specify the vendor type – for example, whether the vendor is a manufacturer, a depot, or a first-stage dealer. You must also stipulate if the

vendor qualifies as a small-scale industry.For each permutation of plant indicator and vendor indicator, you then create a final excise duty indicator.Customer master dataSimilarly, you assign the same excise duty indicator to each of your customers that share the same legal excise status.Again, for each permutation of plant indicator and customer indicator, you then create a final excise duty indicator.Material master dataEach material is assigned a chapter ID.Excise tax rateFor every chapter ID and final excise duty indicator, you maintain the rate of excise duty.If your business only qualifies for partial CENVAT credit, you must customize your system accordingly.ActivitiesLet us consider an example to illustrate how the system determines which rate of excise duty to apply to a material. Assume you are posting a sale of ball bearings to a customer. The system automatically determines the rate of excise duty as follows:Looks up the customer master data to see what status you have assigned the customer.Let's assume you've assigned the customer status 3.Looks up the plant master data to see what status you have assigned the plant.Similarly, your plant has status 2.The system looks up the table under Excise Indicator for Plant and Customer to see what the final excise duty indictor is for customer status 3 and plant status 2: It is 7.The system determines the chapter ID of the ball bearing for the plant.Let’s assume the chapter ID at plant for the ball bearings is 1000.01.Finally, the system looks up the table under Excise Tax Rate to see what rate of duty applies to chapter ID 1000.01 under status 7.Plant Master (Excise Data) DefinitionThe part of the plant master record that contains information relating to Indian excise duty.UseIn conjunction with other data, this data is used to calculate excise duty on various transactions.To maintain the data, from the SAP Easy Access screen, choose Indirect Taxes ® Master Data ® Excise Rate Maintenance, and then select the following options described below.StructureThe excise part of the plant master is divided into the following screens:Excise Indicator for PlantOn this screen, you enter your plants' tax registration numbers, which are used for various forms of correspondence and reports:1. Central sales tax (CST) number2. Local sales tax (LST) registration number3. Permanent account number (PAN)In order for the system to be able to calculate which rate of excise duty to apply on purchases for this plant, you must also assign it a plant excise duty status (for more information about how this works, see Determination of Excise Duty Rates).Excise Indicator for Plant and VendorOn this screen, you define the final excise duty indicator (for more information about how this works, see Determination of Excise Duty Rates).Excise Indicator for Plant and CustomerOn this screen, you define the final excise duty indicator (for more information about how this works, see Determination of Excise Duty Rates).

Automatic Creation of Excise Invoices UseThe SAP System can automatically create an outgoing excise invoice for you immediately you post a commercial invoice (or a pro forma invoice) for a customer sale. This function applies to excise invoices for sales from factories only.

PrerequisitesTo activate this function, in the Country Version India (CIN) Implementation Guide (IMG), make the following settings:1. Under Global Settings ® Excise Groups, select Create EI.This activates the automatic creation function.2. Under Sales and Distribution ® Utilization Determination.Here, you specify which CENVAT accounts the system is to post the different types of excise duty to.3. Under Sales and Distribution ® Excise Group–Series Group Determination.Here, you specify which excise group and series group the excise invoices are to be created for.FeaturesWhen you post an invoice, the system creates an excise invoice. All the information that it needs to create the excise invoice is provided either by the invoice or by the Customizing settings that you have made in Sales and Distribution. It also determines the excise invoice type automatically by means of a user exit.Creating Excise Invoices for Stock Transfers 1. From the SAP Easy Access screen, choose Indirect Taxes ® Procurement ® Excise Invoice ® For Depot ® Create/Change/Display.2. In the Material document field, enter the goods receipt number and choose .The system displays the information from the goods receipt, for example, the sending plant, the excise registration, the range, the division, and the collectorate.3. Choose Details.The system copies the items from the goods receipt document. In the depot it is possible to have a separate excise invoice at line item level.4. Enter the internal document number of the excise invoice sent by the factory.5. Choose More documents to go the excise invoice details screen.6. Enter the internal document number of the excise invoice from the factory.The system copies the information to the line item (for example, the excise invoice number, the excise invoice date, the item number , the chapter ID, the excise invoice quantity, the amount of excise duty paid, the excise base value, and the serial number of the Part II register entry with which the excise was paid).You can change the receipt quantity to match the actual quantity received at the depot, if necessary. The system automatically adjusts the excise accordingly.7. Go back to the item details screen.8. Save the excise invoice.Creating Excise Invoices for Direct Purchases 1. From the SAP Easy Access screen, choose Indirect Taxes ® Procurement ® Excise Invoice ® For Depot ® Create/Change/Display.2. In the Material document field, enter the goods receipt number and choose .The system displays the information from the goods receipt, for example, the sending plant, the excise registration, the range, the division, and the collectorate.You can also maintain the excise registration details for the ship-from party, as for with the vendor. The ship-from can be different from the vendor code. (The delivering plant can be maintained as a ship-from in the system. When a valid ship-from is entered, the excise registration details copied from the vendor will be overwritten by the ship-from excise registration details.)The ship-from registration details displayed can also be overwritten manually.The dealer's commercial invoice number can be stored in the vendor excise invoice number, as in this case the dealer himself will not have an excise invoice.3. Choose Details.The system copies the items from the goods receipt document. It also copies the vendor's excise invoice number and the serial numbers of the entries in the RG 23A, RG 23C, and personal ledger account (PLA) registers.4. Enter the internal document number of the excise invoice sent by the factory.5. Select an item and choose More documents to go the excise invoice details screen.In the case of direct purchases, there will not be any excise invoice in the system, so leave the internal document field blank. The vendor's invoice will show the details of the excise invoices through which excise has been paid for the item that is being dispatched. You can enter these

details here.6. For each item, the chapter ID, excise base value, and excise duty amounts are defaulted from the purchase order. You can change them if there is any difference. Enter the excise amount paid and the receipt quantity. You also enter the Part II register serial numbers with which the excise duty was paid and the excise registration information from the original excise invoice.7. Go back to the item details screen.8. Save the excise invoice.The system creates an entry in register RG 23D. You can change the excise invoice as long as it has not been used in any sales.Assigning Excise Invoices to a Delivery UseYou follow this procedure to specify which excise invoices are to be assigned to a delivery from a depot (or other material document).You can also automate this procedure, using the batch selection program (J_1IJCHK), by making the appropriate Customizing settings in the Country Version India (CIN) Implementation Guide (IMG).Procedure1. From the SAP Easy Access screen, choose Indirect Taxes ® Sales/Outbound Movements ® Excise Invoice ® For Depot ® Create/Change/Display ® Delivery or Material Document ® RG 23D Selection.2. Enter the delivery document number or the material number and choose .3. Select the excise invoice you want.4. Choose .5. Choose Excise invoice.A list of excise invoices appears. These are the excise invoices at the depot with a balance quantity.The system also shows a list of the A certificates that can be used. You can pick up any of the A certificates, but they must be for the same excise invoice. You can only pick up an A certificate in its entirety. You cannot select part of an A certificate.6. Select the excise invoices that are relevant to the delivery.7. Specify what quantity to be used from each excise invoice.The system recalculates the excise accordingly.8. Go back to the item details screen.9. Save the data.ResultThe system creates an entry in register RG 23D and generates the depot excise invoice numbers.If you selected any A certificates, the system also generates additional entries in the RG 23D register. The system marks the original A certificates as updated, so that they cannot be used for any other removals.Creating Excise Invoices UseThis is the procedure that you follow to create an excise invoice for the less common types of goods movement.Procedure1. From the SAP Easy Access screen, choose Indirect Taxes ® Sales/Outbound Movements ® Excise Invoice ® For Other Movements ® Create/Change/Display ® .2. On the selection screen, enter data as required, including:(i)Referencegroup boxSpecify which document you want to create the excise invoice for and which excise group it is for.(ii)Detailsgroup boxSpecify the vendor or customer that you are sending the invoice to.3. Choose .If you entered an internal document number, the system copies the item details from it.4. Choose .

5. Enter line items for each of the materials to be included in the excise invoice. For each item, enter the following data:(i)Material(ii)Quantity(iii)Unit of measure(iv)Base value(v)Excise duty6. To pick the rate and amount from a specific excise invoice, choose Get excise invoice.7. Save the excise invoice.If you are using the one-step procedure, the system creates and posts an excise invoice. Otherwise, the system saves the information but does not make any postings: it now has to be verified.

Verifying and Posting Excise Invoices UseYou follow this procedure to verify that the information in an excise invoice that has already been created, and to post it once you are satisfied.ProcedureFrom the SAP Easy Access screen, choose Indirect Taxes ® Sales/Outbound Movements ® Excise Invoice ® For Other Movements ® Posting.1. Enter the internal document number of the excise invoice.2. Choose Release to accounting.The system displays the excise invoice. The excise duty that is to be posted is displayed at the foot of the screen, which you can change if necessary.3. To access the balance utilization, choose .4. To display the balance available on the CENVAT accounts, choose Account balances.5. Save the excise invoice.The system generates the accounting documents.6. To print the excise invoice, choose .

Making a Transfer Posting UseIn this procedure, you make a transfer posting for the goods ordered by another plant. For more information about this function, see Entering the Removal from Storage at the Issuing Plant.Procedure1. From the SAP Easy Access screen, choose Logistics ® Materials Management ® Inventory Management ® Goods Movement ® Transfer Posting.2. Choose Movement type ® Transfer posting ® Plant to plant ® To stock in transit.3. Enter the number of the issuing plant and storage location.4. Choose To purchase order.5. In the dialog box, enter the number of the stock transport order that the receiving plant created and choose6. Check the data.7. Save the transfer posting.Transaction Codes for India Transaction ActionJ1I2 Prepare a sales tax registerJ1I3 Create outgoing excise invoices in batchesJ1I5Update the RG 1 and Part I registersJ1I8Post the challan used to remit TDSJ1IC194CCreate annual return under section 194 C (Classic TDS)J1IC194DCreate annual return under section 194 D (Classic TDS)J1IC194ICreate annual return under section 194 I (Classic TDS)

J1IC194JCreate annual return under section 194 J (Classic TDS)J1IEXIncoming Excise Invoices (central transaction)J1IEX_CCapture an incoming excise invoice (excise clerk)J1IEX_PPost an incoming excise invoice (excise supervisor)J1INBANKPost a bank challanJ1INCANCCancel a vendor withholding tax certificateJ1INCERTPrint a vendor withholding tax certificateJ1INCHLNCreate a remittance challanJ1INCUSTPost a customer withholding tax certificateJ1INHCWithholding Tax Migration Health Check ProgramJ1INMIGWithholding Tax Data Migration ToolJI1NCHLCCreate a remittance challan for customersJ1INCCPrint customer withholding tax certificatesJ1INMISWithholding Tax Information SystemJI1NARPrepare annual returns (Extended Withholding Tax)J1IF01Create a subcontracting challanJ1IF11Change a subcontracting challanJ1IF12Display a subcontracting challanJ1IF13Complete, reverse, or recredit a subcontracting challanJ1IFQReconcile quantities for subcontracting challansJ1IFRList subcontracting challansJ1IHMake a CENVAT adjustment postingJ1IINCreate an outgoing excise invoiceJ1IJAssign excise invoices to a delivery for sales from depotsJ1INJVAdjust withholding tax ItemJ1INREPReprint a vendor withholding tax certificateJ1INREVReverse a remittance challanJ1INPRCalculate withholding tax on clearing accountsJ1INUTClear withholding tax on clearing accountsJ1IR

Download register dataJ1ISProcess an excise invoice (outgoing) for other movementsJ1IUProcess exemption formsJ1IWVerify and post an incoming excise invoiceJ1IXCreate an incoming excise invoice (without reference to purchase order)J2I8Transfer excise duty to CENVAT accountJ2IDArchive tax deducted at source (TDS) documentsJ2IELocate tax deducted at source documents in archiveJ2IURemit excise duty fortnightlyJ2I9Monthly CENVAT returnJ1IGExcise invoice entry at depotJ1IGACreate additional excise entry at depotJ2I5Extract data for excise registersJ2I6Print excise registers

Sales from Factories PurposeThis process describes how the SAP System handles the sales process, allowing for the creation of excise invoices, which you have to send with each delivery that is subject to excise duty. There are two scenarios, depending on whether you want to send the commercial invoice along with the delivery or at a later date.PrerequisitesIn order for the system to be able to copy the information from document to document, you must have set up the copying control procedures in Customizing for Sales and Distribution (SD). This differs according to when you want to send the commercial invoice:1. Along with the deliveryIn this case, the document flow would be OR (standard sales order type) – LF (standard delivery type) – F2 (invoice).2. At a later dateThe document flow would be OR – JF (delivery type, a copy of LF) – JEX (pro forma billing document type, a copy of document type F8) – F2.In addition, you must also have maintained the settings in the Country Version India (CIN) Implementation Guide (IMG), by choosing Global Settings ® Assign Excise Invoice Billing Type to Delivery Type.A sample pricing procedure, JFACT, is provided for this sales procedure.Process Flow1. The sales clerk creates a sales order, following the(i)standard procedure.There are special procedures for:(i)Customers in possession of exemption forms(ii)Exports2. The shipping clerk creates a delivery, again, following thestandard procedure.On the initial screen, you set the appropriate delivery type (see above).3. In the warehouse, the storeperson issues the goods.

The system only allows users to create a pro forma excise invoice if the delivery is complete, so as to prevent them from creating multiple pro forma excise invoices.4. What you do at this stage depends on whether you want to send the commercial invoice along with the delivery or whether you want to invoice the customer later.(A) If the invoice is to be shipped with delivery, the shipping clerk:(i)Creates an invoice, following the standard procedure.(ii)Creates an excise invoice from the invoice(B) If the invoice is to be sent on at a later date, the shipping clerk:(i)Creates the pro forma excise invoiceThe pro forma excise invoice is only required for technical purposes and is not sent to the customer. The system does not make any accounting postings at this stage.(ii)Createsan excise invoice from the pro forma excise invoiceIn both these cases, the system creates an accounting document to post the excise duty to a clearing account.Instead of creating excise invoices manually, you can also have the system create them automatically. Alternatively, you can create them in batches.5. You ship the goods.6. When the time comes to invoice the customer, you create the invoice, following the standard procedure.Irrespective of the number of excise invoices that you have issued, you can combine the delivery items in a single invoice (if the standard requirements are met).

Sales from Depots PurposeYou may sell finished goods directly from the place of manufacture, as described under Sales from Factories, or you may first ship them to a separate location for storage (a depot), from where you will sell them. The second procedure is described here.Sales from depots are handled differently from sales from factories because of excise law: Excise duty is payable when you send the goods from the factory to the depot, but it is not levied again when you sell the goods.Sometimes when you make a final sale of goods from a depot, price escalations could have happened with retrospective effect. In such scenarios you need to pay the extra excise duty at the factory using an A Certificate. You need to register the A certificate details in the RG 23D register and the excise recovered from the customer.PrerequisitesYou have customized:1. Stock transport processing, in Customizing for Materials Management (MM), by choosing Purchasing ® Purchase Order ® Set Up Stock Transport Order2. The copying control for copying stock transport order NL to excise invoice JEXYou make this setting in the Country Version India (CIN) Implementation Guide (IMG), by choosing Sales and Distribution ® Assign Excise Invoice Billing Type to Delivery Type.3. The item category NLN (standard transport order) so that it is relevant for billingYou do this in the standard IMG, in Customizing for Sales and Distribution (SD), by choosing Sales ® Sales Documents ® Sales Document Item.Process Flow1. You create the sales order, following thestandard procedure.The standard pricing procedure for depot sales is JDEPOT.2. You create the delivery, again, following thestandard procedure.3. Youassign excise invoices to the delivery or material document.4. Youverify that you have selected the correct excise invoices and post them. Alternatively, if you have selected the wrong excise invoices, you can cancel the assignment.5. You create the invoice, following the standard procedure.

Showing newest posts with label CONSIGNMENT. Show older posts

SPECIAL STOCKS & SPECIAL PROCUREMENT TYPES Special Stocks are those stocks which are not belongs to our company code. These are not placed in our storage locations & no physical inventory is performed and treated as special stocks for the reason of ownership.

Different types are of Special Stocks are as follows

1. Subcontracting2. Consignment3. Pipeline4. Stock transfer5. Third party6. Returnable transport packaging7. Sales order stock8. Project stock

SUBCONTRACTING:

In subcontracting process we create subcontracting PO to supply or issue subcomponents to vendor in order to get final product. The price maintained in subcontracting PO is a service charge paid to vendor.

Steps to perform subcontracting:

1. Create subcontracting inforecord (Optional)2. Create subcontracting PO with item category L, There are to ways to supply subcomponents to vendor • Manually maintain the subcomponents in the subcontracting PO though explode BOM • Through BOM (Bill of material) T Code CS01, CS02 & CS033. Create Transfer Posting with Movement Type 541 to issue the subcomponents to the vendor4. Goods Reciept5. Invoice Reciept

Path: ME21N ---> Enter Item Category L -->, Material (End Product), PO Quantity, Delivery Date, Net Price, Plant --> Click on Item Details --> Tab Material Data -- >Components, select Explode BOM --> Click on Components button --> Enter the subcomponents --> Go back & Save.

Create Transfer Posting with movement type 541 & T Code MB1BGR: MIGOIR: MIRO

CONSIGNMENT: - (No Concept of Invoice)

In consignment process we will not create Purchasing document for the vendor, vendor himself send the material to our plant, though the material is available to our plant, the responsibility & ownership of the material is of vendor. Aliability only arises when the material withdrawal (Consumption) is posted in the system fromconsignment stock.

Steps:

1. Create Consignment info record (mandatory)2. Create Consignment purchase order with item category ‘K’ & maintain Info record number3. Create GR Movement type ‘101K’4. Create GI Movement Type ‘201K’5. Consignment settlement T Code MRKO

Path : -->ME11 --> In info record --> Purchasing Org Data 1 views of info record enter the tax code and save it

--> Create Consignment Purchase Order ME21N (Price option is grayed out with price zero)--> Create GR with movement type 101K--> Create Goods Issue (GI) T Code MB1A & Movement Type 201K Enter Cost center vendor--> Consignment Settlement T Code MRKO Click Activate Consignment Activate Settle Execute--> Display the Document Number i.e. Invoice receipt T Code FB03

PIPELINE PROCESS: (No Concept of Invoice)

In pipeline handling your company does not need to order or store the material concerned. It is ready available to you as and when required via pipeline (e.g. oil or water), or some other type of cable (e.g. electricity). Consumption of the material is settled with the vendor on a regular basis.

Steps:1. Create a Material master record with material type PIPE2. Create Pipeline info record3. Create GI with movement type 201P4. Pipeline settlement T Code MRKO

RETURNABLE TRANSPORT PACKAGING (RTP):

When company orders goods from a vendor, the goods are delivered with returnable transport packaging (pallets, containers) that belongs to the vendor and is stored on our premises until you return it to the vendor.

Steps:1. Create Material master record with material type LEIH2. Create PO3. Create GR by maintaining RTP material by selecting the option transport equipments with movement type 501M.4. IR

STOCK TRANSFER:

In stock transfer processing, goods are procured and supplied within a company. One plant orders the goods internally to another plant (receiving plant/issuing plant). The goods are procured with a special type of purchase order the stock transport order.

Steps:1. Create a Material master in both supplying and receiving plant

2. Create stock transport order (STO) with item category ‘U’3. Create transfer posting with movement type 351 & T Code MB1B (Go to MMBE stock overview, the stock will decrease in supplying plant and it will not update stock of receiving plant, it will be under stock in transit)4. Create GR stock will update in receiving plant

This scenario is under one company code between two plants. g newest posts with label SAP Implementation Process (End to End Implementation). Show older postsSAP IMPLEMENTATION PROCESS / End to End Inplementation of SAP First we have to prepare documentation about the client business (like turnover,vendors, customers, payments, materials, production, marketing etc.)The implementer company made two teams (1.) Steering team. (2.) SteeringcommunitySteering team (SAP functional consultants) prepares a detaileddocumentation about the client with the help of core team (client company team)& this study is known as Feasibility Study. After that the steering team handedover this documentation to Steering community (Project manager, Sr. softwareengineer, and other higher authorities).Steering community prepares the BBP (Business Blue Print). BBPPrepares in MS-Word

���� ASAP: - Accelerated System Application Product in Data Processing.���� Business Process: - ASAP Methodology1. Project Preparation2. BBP (Business Blue Print)3. Realization4. Final Preparation5. Go live & Support

���� Project Preparation: -It consists of identifying team members & development strategy ashow to go.AS – IS (Existing Process followed, requirements)TO – BE (Requirement analysis and best process recommended)Difference between (AS – IS) & (TO - BE) is called GAP Analysis.

���� Business Blue Print (BPP): -It is a legal documentation between client & the company(implementer / service provider). We have to understand the current businessprocess of client & analyzing the business & prepare documentation. It is adetailed documentation for the client.

���� Realization: -This Phase is used to Implement or migrate the entire business ofclient from Non-SAP environment to SAP environment

���� Final Preparation: -This phase is used for testing & end user training. After successfullycompletion of this phase client is ready to run business in SAP R/3.

���� Go live & Support: -In this phase we deliver the project end date & end user training atclient site. Physical Inventory and Inventory Management Physical inventory Process: - 1. Create Physical inventory documentT Code MI01 – Create single inventory documentT Code MI31 – Create multiple physical inventory documents

I. Enter the desired fields i.e. material, material type, site, storage location, and Maximum number items / Documents – 100, etc �� Press EnterII. Click on Process SessionIII. Select the line items and click on the processIV. System displays a dialog box, select Background and click on process. Inventory document is created2. Print Inventory Document and handed over to responsible person say Manager3. Enter Physical Inventory countT Code MI04i. Enter the physical inventory document number Fiscal year, count date �� Press enterii. Enter the Material Quantity and click on post4. Listing of differenceT Code MI20Enter the physical inventory document number and execute, system displays a screen, wherein we will be able to view the differences5. Post the differencesT Code MI07 & Mov Type 701 & 702Enter the physical inventory document number, year, posting date, enter the difference and post

INVENTORY MANAGEMENT Maintaining stock by value or by quantity is called inventory. The total inventory management deals with the goods movement of the material.Goods movement: - It is a process in which transaction resulting change in stocks. It is further sub-divided into three categories1. Goods Receipt (GR)2. Goods Issue (GI)3. Transfer Posting (TP)

Goods Receipt (GR): - It is a goods movement in which receipt of goods is posted for vendor or for production. A GR posted in the system will leads to increase in stock. No Concept of Price or valueGoods Issue (GI): - It is goods movement in which material withdrawal is posted for consumption or for customer. A GI posted in system will leads to decreasein stock. Stock Transfer (ST): - It is method of removal of material from one location and transferring it to another location. This process is performed between two plants and two storage locations.Transfer Posting (TP): - It is a general term of stock transfer that changes the stock type or stock categories. The difference between transfer posting and stock transfer is: -TP is logical stock transfer and ST is a physical stock transfer.Movement Type: - It is a three-digit code, which plays a role of important control function in inventory management. It acts as a central role in automatic account determination. It determines which stock account or consumption account is updated in financial accounting.Reservation: - It stores requisition created from particular cost center to particular department for issuing the material reservation posted in the system. It leads to decrease in stock.Stock Types: - The different stock types are1. Unrestricted use stock2. Quality inspection stock3. Blocked stock4. Warehouse stock

Transaction code: -1. To Create GR - MIGO2. To Create GI - MB1A3. For Transfer Posting - MB1B4. To display Material/GR document – MB035. To create reservations - MB21, MB22, MB236. To See Stock Overview - MMBE

7. To enter Other GR - MB1C

When GR is posted in the system1. Material document is created - MB032. Accounting Document is generated - MB033. MMR updated - MM02, MM034. PO history updated - ME23N

Movement Type’sMovement Types under GR - 101, 331,333,335,501,503,505,551,553,555,561,351 (For all Mov Type’s there is a reversal e.g. 101 has 102. Note: No reversal for 121)Movement Type’s under GI - 201, 331,333,335,551,553,555Transfer Posting: It is performed in three ways1. TP B/W Plant to Plant2. TP B/W Storage Location to Storage Location3. TP B/W Stock to StockMovement Types under TP B/W Plant to Plant301 - 1 step303 & 305 - 2 stepMovement Type under TP B/W Storage location to Storage Location311 - 1 step313 & 315 - 2 stepMovement Type under TP B/W stock to stock 321, 323, 325, 343,349To Cancel the GR Movement type 102Return delivery to vendor movement type 122 & T Code MIGO

Transfer Posting Stock to StockFrom Blocked stock to Quality InspectionT Code MB1B & Movement Type 349From Blocked stock to Unrestricted Stock T Code MB1B & Movement Type 343From Quality Inspection to Unrestricted StockT Code MB1B & Movement Type 321

Transfer Posting from Plant to PlantFor One Step: Movement Type 301For Two Steps: Movement Type 303 & 305After posting stock will display in Stock in Transit (Plant)To receive material by receiving Plant Movement Type 305

Transfer Posting B/W Storage Location to Storage LocationUnder One Plant B/W two Storage Location’s Movement Type 311Back to Parent storage Location Movement Type 313 (It Show stock in transfer) use Movement type 315 at Parent storage locationTo create Goods Issue (GI) T Code MB1A & Movement Type 201To Create Reservations T Code MB21, MB22 & MB23Creation of GI w.r.t ReservationsT Code MB1A & Movement Type 201Click on Reservation, Enter Reservation Number �� Click on Adopt + DetailsGR w.r.t Reservations: T Code MIGO & Select as Reservation instead of GRGR without PO Movement type 501 & T Code MB1C, Select others instead of Purchase order, Enter Material, Quantity, Plant, Storage Location �� Press EnterPartner Option will be visible (Vendor) �� Save itInvoice: - Invoice is a document, which is issued to a buyer (Company) from the supplier (vendor) for the payment. The following information is maintained in invoiceInvoice date, Posting date, Invoice ref number, tax amount, amount, tax code, terms of payments, vendor address, banking accounting information etc

When invoice document is posted in the system• Invoice document created• Accounting document is generated (MIR4)• PO history updated (ME23N)• FI document created (FB03) postsAUOTOMATIC ACCOUNT DETERMINATION OR ASSIGNMENT AUOTOMATIC ACCOUNT DETERMINATION OR ASSIGNMENT Whenever there is goods movement accounting documents/ financial accounts updated automatically, so we do some settings in customization is called automatic account assignment.It works with three important factors: -• Chart of accounts• Material type• Valuation grouping codeChart of accounts: - It is a group of accounts (GL Accounts), which is assigned to our company code. One company code is assigned to one chart of account but one chart of account can be maintained for n number of company codes.Valuation grouping code / valuation modification: - It is a 4-digit code, which is assigned to company code along with valuation area (Plant)Account category reference: - It is a 4-digit code that establishes relationship between material types and valuation class. One account cat ref assigned to n number of material type and valuation classTransaction / Event key: - It is an internal processing key that facilitates the automatic account determination for the various material and invoice posting.Use: - Key to determine the account in which a posting line is generated (at least two transaction event keys are involved in each posting)Value String: - It indicates the posting rule that always contain same account assignment char to certain transaction / event keyAccount Modifier: - It is a subdivision of transaction event key in which GL account is linked during the process of automatic account determination.Valuation class and material type is assigned to itSteps: - 1. Activate valuation Group code2. Assign Valuation area to valuation grouping code3. Create Account Cat Ref and valuation class4. Assign valuation class to Account Cat Ref5. Assign Account Cat Ref to Material type6. Assign account grouping to movement types7. Configure Automatic postingCustomize settings :-SPRO �� IMG �� MM �� Valuation Class and Account Assignment �� Account Determination �� Account determination without wizard1. Define valuation control T Code OMWM2. Group together valuation areas T Code OMWD3. Define valuation class T Code OMSK• Account category reference• Valuation class• Material type / Account Cat Ref4. Define Account grouping for movement type T Code OMWN5. Configure automatic posting T Code OMWB

Transaction/ Event Key’sBSX - Stock Posting / Inventory PostingPRD - Price differenceGBB - Offsetting entry for stock postingWRX - GR/IR ClearingFRI - Freight Clearing Material Master Related Important Terms (Part 1)

Material GroupKey that you use to group together several materials or services with the same attributes, and to assign them to a particular material group.Use: You can use material groups to:• Restrict the scope of analyses• Search specifically for material master records via search helps

Purchasing GroupKey for a buyer or a group of buyers, who is/are responsible for certain purchasing activitiesUse• Internally, the purchasing group is responsible for the procurement of a material or a class of materials.• Externally, it is the medium through which contacts with the vendor are maintained.

Purchasing Value KeyKey defining the reminder days and tolerance limits valid, as well as the shipping instructions and order acknowledgment requirement of the material for Purchasing.Procedure: If you have chosen a purchasing value key, the system enters the values defined in Customizing (for Purchasing) in the fields.

Batch Batches (LO-BM)A subset of the total quantity of a material in stock, managed separately from other subsets of the same material.Example: Different production lots (such as paints, dyes, wallpapers, and pharmaceutical products), delivery lots, quality grades of a material.Batch management requirement indicator, Specifies whether the material is managed in batches.Use:This indicator can be set in the material master record manually or, if batches are valuated individually, it is set automatically for the plants concerned, in which case it cannot be changed.The indicator cannot be changed if stocks exist in either the current period or in the previous period. The reason for checking the previous period is because stocks can be posted to this period when goods movements are entered.Showing newest posts with label Automatic PO. Show older postsAutomatic PURCHASE ORDER (PO) / How Automatic PO raised How Automatic PO raised ??

At fixed time say 12:30 AM, automatic scheduler runs and checks whether the stock is less than or equal to the replenishment point, If stock is less than or equal to Repli. Point than PR raised automatically to Purchasing Deptt• Activate the option automatic PO in purchasing view in material master record.• Activate the option automatic PO in purchasing data view in vendor master record.• Maintain Source List & select fixed vendor• PR crated automatically• Automatic creation of PO from PR – ME59Enter the Purchasing group, purchasing organization, Vendor, Plant, and Purchasing Requisition Document Number �� Execute Material Master Relat ed Important Terms (Part 2)

Controlling (CO) An organizational unit in Accounting that reflects a management-oriented structure of the organization for the purpose of internal control.Operating results for profit centers can be analyzed using either the cost of sales approach or the period accounting approach.By analyzing the fixed capital as well, you can expand your profit centers for use as investment centers.

Profit CenterKey that uniquely identifies the profit center in the current controlling area.

Valuation CategoryDetermines whether stocks of the material are valuated together or separately.DependenciesIn the case of split valuation , this indicator also determines which valuation types are allowed, that is, the criteria by which stocks can be valuated.

Valuation typeInvoice Verification (MM-IV)A subdivision of a valuation category in split valuation.Example : An enterprise manages its stocks of a material using the valuation category "Quality", comprising the following valuation types:

• High quality, Average quality, Inferior

Hazardous material number

Number that identifies the material as a hazardous material or as dangerous goods and assigns hazardous material data or dangerous goods data to itUse: The hazardous material number indicates that the material is dangerous, making special precautions necessary for its storage and shipment.

Valuation ClassAssignment of a material to a group of G/L accounts

With other factors, the valuation class determines the G/L accounts that are updated as a result of a valuation-relevant transaction or event such as a goods movement.The valuation class makes it possible to:• Post the stock values of materials of the same material type to different G/L accounts• Post the stock values of materials of different material types to the same G/L account

Default value for the valuation class for valuated stocks of this material.Use: The valuation class has the following functions:• Allows the stock values of materials of the same material type to be posted to different G/L accounts• Allows the stock values of materials of different material types to be posted to the same G/L account.

• Determines together with other factors the G/L accounts updated for a valuation-relevant transaction (such as a goods movement