Mm User Manual

USER MANUAL

Materials Management

DOCUMENT CONTROL SHEET GENERAL INFORMATION

Project nameDocument nameDocument location

ImplementationMaterials Management

DOCUMENT INFORMATION

VersionFilenameDateAuthorReviewed byChanges from previous version

V 1.0

USER PROCEDURE MANUAL

TABLE OF CONTENTS

1

101Procurement of Stock Materials

101.1Procurement of Stock Materials Raw Material Local / Return

101.1.1Purpose

101.1.2Prerequisites

101.1.3Material Master Record

241.1.4Vendor Master Record

351.1.5Purchasing Info Record

411.1.6Source List

431.1.7CIN Master Data

531.1.8Excise Condition Record

561.2Request for Quotation (RFQ)

561.2.1Use

561.2.2Procedure

611.2.3Result

611.2.4Example

611.3Message output: RFQ

611.3.1Use

611.3.2Procedure

641.4Maintaining Quotation

641.4.1Use

641.4.2Procedure

661.4.3Result

661.4.4Example

671.5Price Comparison

671.5.1Use

671.5.2Procedure

691.5.3Result

691.6Creating Purchase Requisition

691.6.1Use

691.6.2Procedure

701.6.3Result

701.6.4Example

701.7Release Purchase Requisition

711.7.1Procedure

741.8.Assign and Process Purchase Requisition

741.8.1 Use

741.8.2Procedure

761.8.3Result

771.9Purchase Order

771.9.1Use

771.9.2Procedure

821.9.3Result

821.9.4Example

831.10. Release Purchase Order

831.10.1. Procedure

871.11Message Output

871.11.1 Use

871.11.2Procedure

891.12Goods Receipt for Purchase Order

891.12.1Use


891.12.3Procedure

991.12.4Result

99Material document 5000000009 posted

991.12.5Example

1001.13Logistics Invoice Verification

1001.13.1Use

1001.13.2Procedure

1051.13.3Result

1051.13.4Example

1061.14Returning Delivery

1061.14.1Use

1061.14.2Procedure

1131.14.3Result

113Return Delivery document created

1131.14.4Example

1141.15Excise Invoice Other Movements

1141.15.1Procedure

1161.15.2Result

1161.15.3Example

1171.16Posting and Printing the Excise Invoice

1171.16.1Use


1171.16.3Procedure

1201.16.4Result

1211.17Credit Memo

1211.17.1Use


1211.17.3Procedure

1271.17.4Result

1271.17.5Example

1281.18Reversals / Cancellation of Invoice or Credit Memo

1281.18.1Use


1281.18.3Procedure

1331.18.4Result

1331.18.5Example

1341.19Reversals / Cancellation of Goods Receipt (GR)

1341.19.1Use


1341.19.3Procedure

1391.19.4Result

1391.19.5Example

1401.20Reversing CENVAT Postings

1401.20.1Purpose


1401.20.3Procedure

1441.20.4Result

1441.20.5Example

1451.21Canceling Excise Invoices

1451.21.1Purpose


1451.21.3Procedure

1501.21.4Result

1501.21.5Example

1512Procurement of Imported Materials Business Process Procedure

1512.1 Procurement of Imported Materials

1512.1.1 Purpose


1522.2 Creating Purchase Order

1522.2.1 Use


1522.2.3Procedure

1582.2.4Result

1582.2.5Example

1592.3Release Purchase Order

1592.3.1Procedure


1622.4.1Use

1622.4.2Procedure

1642.5CAPTURING BILL OF ENTRY

1642.5.1Use

1642.5.2Procedure

1712.5.3Result

1712.5.4Example

1722.6Goods Receipt for Imported Purchase Order

1722.6.1Use

1722.6.2Procedure

1832.6.3Result

1832.6.4Example

1842.7Logistics Invoice Verification for the Materials

1842.7.1Use

1842.7.2Procedure

1902.7.3Result

1902.7.4Example

1913Procurement of Subcontracting Materials Business Process Procedure

1913.1Procurement of Subcontracting Materials

1913.1.1Purpose


1923.2Creation of Subcontracting Purchase Order

1923.2.1Use


1923.2.3Procedure

1963.2.4Result

1963.2.5Example


1973.3.1Use

1973.3.2Procedure

1993.4Transfer of Components to Subcontractor

1993.4.1Use


1993.4.3Procedure

2013.4.4Result

2023.4.5Example

2023.5Creation of Subcontracting Challan

2023.5.1Use


2023.5.3Procedure

2043.5.4Result

2043.5.5Example

2053.6 Printing of Subcontracting Challan

2053.6.1 Use

2053.6.2Procedure


2093.7.1Use


2093.7.3Procedure

2173.7.4Result

2173.7.5Example

2183.8Reconciling Subcontracting Challan

2183.8.1Use

2183.8.2Procedure

2203.8.3Result

2203.8.4Example

2213.9Completing/Reversal/Re-credit Subcontracting Challan

2213.9.1Use

2213.9.2Procedure

2223.9.3Result

2223.9.4Example

2223.10Logistics Invoice Verification for Subcontracting Material

2223.10.1Use

2223.10.2Procedure

2263.10.3Result

2263.10.4Example

2275.Procurement of External Services: Business Process Procedure

2275.1Procurement of External Services Procurement Process

2275.1.1Purpose


2285.2Creating Service Master

2285.2.1Use

2285.2.2Procedure

2305.2.3Result

2315.3Creating Purchase Requisition

2315.3.1Use

2315.3.2Procedure

2355.3.3Result

2355.3.4Example

2365.4Assign and Process Purchase Requisition

2365.4.1Use

2365.4.2Procedure

2395.4.3Result

2405.6 Purchase Order

2405.6.1 Use


2405.6.3Procedure

2435.6.4Result

2435.6.5Example

2435.7For Releasing Purchase Order Refer User Manual of Stock Procurement


2445.8.1Use

2445.8.2Procedure

2465.9Creation and Acceptance of Service Entry Sheet

2465.9.1Use

2465.9.2Procedure

2565.9.3Result

2565.9.4Example


2575.10.1Use

2575.10.2Procedure

2615.10.3Result

2615.10.4Example

2626Asset Procurement Business Process Procedure.

2626.1Purchase Order

2626.1.1Use

2626.1.2Procedure

2666.1.3Result

2666.2Release of Purchase Order

2666.2.1Procedure


2676.3.2Use


2676.3.4Procedure

2696.2.3Result

2696.4Post Excise Invoice

2696.4.1 Procedure

2716.4.2 Result


2726.5.1Use

2726.5.2Procedure

2756.5.3Result

2767Excise Periodic Processing Business Process Procedure

2767.1Excise Periodic Processing

2767.1.1Purpose


2777.2Excise Report - CENVAT Register

2777.2.1Use


2777.2.3Procedure

2797.2.4Result

2807.3Excise Register Updation

2807.3Updation of RG1 Register

2807.3.1Use


2807.3.3Procedure

2877.3.4Result

2887.4RG1 Register Extraction

2887.4.1Use


2887.4.3Procedure

2917.4.4Result

2927.5RG1 Register Print Utility

2927.5.1Use


2927.5.3Procedure

2957.5.4Result

2958.PLA Register Extraction

2958.1PLA Register Extraction

2958.1.1Use


2958.1.3Procedure

2988.1.4Result

2988.2PLA Register Print Utility

2988.2.1Use


2988.2.3Procedure

3008.2.4Result

3019. Reports

3017.1Purchasing

3017.1.1Purchasing Documents per Vendor (ME2L)

3027.1.2Purchasing Documents per Material (ME2M)

3037.1.3Source List for Material (ME0M)

3037.1.4Purchase Info Record per Material (ME1M)

3057.1.5Purchasing Values(MC$G)

3079.2Inventory

3079.2.1Material Document List (MB51)

3099.2.2Diplay Warehouse Stock (MB52)

3109.3.3 Stock on Posting Date (MB5B)

3139.3.4 Stock Overview (MMBE)

3149.3.5 Stock in Transit (MB5T)

3159.3.6 Slow Moving Items (MC46)

Icons

IconMeaning

Caution

Example

Note

Recommendation

Syntax

Abbreviations

RRequired entry field (used in the end-user procedures)

OOptional entry field(used in the end-user procedures)

CConditional field(used in the end-user procedures)

1 Procurement of Stock Materials

1.1 Procurement of Stock Materials Raw Material Local / Return

1.1.1 Purpose

This process describes the procurement process of raw materials from indigenous source of supply with Country Version India (CIN) relevant process like processing of Excise Duty (ED) and Sales Tax (ST) process.

1.1.2 Prerequisites

The following scenario specific master data must be created for operation of this building block.

1. Material Master Record

2. Vendor Master Record

3. Purchase Info Record (Optional)

4. Source List (Optional)

5. CIN Master Data

6. Excise Condition Record (if Tax applicable for the Vendor-Material Combination)

1.1.3 Material Master Record

Menu PathLogistics ( Materials Management ( Material Master ( Material ( Create (General)

T CodeMM01 Create

MM02 Change

MM03 Display

Press Enter to see the pop-up window.

Select the required views and press Enter to input the organizational levels.

Press Enter to input the details of the Material.

1.1.3.1 Basic Data Views

Press Additional Data to maintain the Alternate Unit of Measures (for e.g. 1000G= 20Nos for the Semi finished goods)

1.1.3.2 Purchasing Views

1.1.3.3 MRP Views

Work Scheduling View:

1.1.3.4 Quality Management View

1.1.3.5 Accounting Views

1.1.3.6 Costing Views

After entering all the details, press to save the Material.

1.1.4 Vendor Master Record

Menu PathLogistics ( Materials Management ( Purchasing ( Master Data ( Vendor ( Central

T CodeXK01 Create

XK02 Change

XK03 Display

Press Enter to input the details of the vendor.

Vendor Account Groups:

VDOMDomestic Vendors

VIMPImport Vendors

VSRVService Vendors

1.1.4.1 General Data

Enter whether this vendor is approved or on Probation

No need to enter in the below screen.

1.1.4.2 Accounting Data

Reconciliation Accounts:

The below screen is explained in detail in FI User Manual:

1.1.4.3 Purchasing Data

Schema group, Vendor:

DMDomestic Schema

IMImport Schema

Press to save the Vendor master and the no is generated automatically.

1.1.5 Purchasing Info Record

Menu PathSAP Easy Access ( Logistics ( Materials Management ( Purchasing ( Master Data ( Info Record ( Create

T CodeME11 Create

ME12 Change

ME13 - Display

You use this component if you wish to store information on a vendor and a material as master data at purchasing organization or plant level. You can create purchasing info records for different procurement types (standard, subcontracting, pipeline, consignment).

Press enter the details in the Purchasing Info Record.

No need to enter anything in the below screen as it copies all the data from the Vendor Master.

1.1.5.1 Result

Purchasing Info Record is created

1.1.5.2 Example

Purchasing Info Record 5300000384 is created.

1.1.6 Source List

Menu PathSAP Easy Access ( Logistics ( Materials Management ( Purchasing ( Master Data ( Source List ( Maintain

T CodeME01 Maintain

ME03 Display

ME04 - Changes

Result: Source List changed.

1.1.7 CIN Master Data

Menu PathJ1ILN ( SAP Menu ( Indirect Taxes ( Master Data ( Excise Rate Maintenance

T CodeJ1ID

1.1.7.1 Chapter IDs

Select Chapter ID and Press

Press New Entries to go to the next screen.

Press to save the data.

1.1.7.2 Material ID and chapter ID combination

Select Material and Chapter ID Combination and Press


1.1.7.3 Vendor Excise Details

Either you can maintain here or else in Vendor Master.


1.1.7.4 Excise Indicator for Plants

Select Excise Indicator for Plant and Press


1.1.8 Excise Condition Record

1.1.8.1 Use

When you enter a purchasing document, for example, a purchase order, the R/3 System automatically calculates the applicable excise duties using the condition technique.

1.1.8.2 Procedure

1. Access the transaction choosing one of the following navigation options:

SAP R/3 menuNo Menu path available for this transaction

Transaction codeFV11

2. Enter the appropriate Condition type (various condition types given in next page) and maintain the respective values.

For Raw Material / Packing Material maintain the Plant/Vendor/Material Combination.

For Service Tax /Assets maintain the Plant/Material Group Combination.

.

3. Press Ctrl+S or 1.1.8.3 Result

Condition records saved.1.2 Request for Quotation (RFQ)

1.2.1 Use

Request for Quotation is used to float enquiries in market to obtain quotations from prospective vendors.

This transaction is optional for the process.

1.2.2 Procedure


SAP R/3 menuLogistics ( Material Management (Purchasing (RFQ/quotation (Request for Quotation ( Create

Transaction codeME41

2. RFQ can be created with reference to Purchase Requisition, Outline Agreement (Contract) and another RFQ.

3. On the Create RFQ: Initial Screen, make the following entries:

4. Choose (header details icon) on the toolbar, then on screen Create RFQ: Header Data, enter information in the fields as specified in the table below:

5. Choose (vendor address button) on the toolbar, then on screen Create RFQ: Vendor Address, enter information in the fields as specified below:

After entering the vendor code and pressing enter the details of vendor will be displayed automatically.

6. Press to Save the RFQ. This will refresh the Create RFQ: Vendor Address screen to allow creation of the same RFQ data to a new vendor by following the steps outlined above.

1.2.3 Result

RFQ created

Similarly create for other vendor in the same screen and various RFQ Nos will be generated

1.2.4 Example

RFQ created under the number 6000000000.

1.3 Message output: RFQ

1.3.1 Use

A RFQ needs to be printed for transmitting to vendor. This transaction is optional for the process.

1.3.2 Procedure


SAP R/3 menuLogistics ( Materials Management ( Purchasing ( RFQ/Quotation ( Request for Quotation ( Messages ( Print/Transmit

Transaction codeME9A

2. On the Message Output screen, make the following entries:

You will see out put as

1.4 Maintaining Quotation

1.4.1 Use

This transaction is used to maintain the quotation, which is submitted by vendors. Vendor communicates price for material and as a result the RFQ (Request for Quotation) needs to be updated.


1.4.2 Procedure


SAP R/3 menuLogistics ( Materials Management ( Purchasing ( RFQ/quotation ( Quotation ( Maintain


2. On the Maintain Quotation: Initial Screen, make the following entries:

3. Choose the Enter key, or choose green Enter icon to proceed.

4. View the screen Maintain Quotation: Header Data by Choosing on the Header data icon in the toolbar.

5. Enter information in the fields as specified in the table below. Some fields will not be available for input, as they are reference fields only.

6. Once all necessary header data has been maintained, the user can then enter the price information in one of two fashions:

a. Enter the price in the Net Price field on the Maintain Quotation: Item Overview screen by Choosing overview icon on toolbar.

b. To enter more detailed information in addition to the net price, select the line item and choose the Item Details icon. Choose the green Back arrow to return to the Overview screen once data has been maintained.

i. A vendors quoted price can be entered in one of two ways.

ii. Enter the net price per unit in the Net price field. This price includes the vendor's normal discounts and surcharges only. Cash discounts (for prompt payment) and taxes are calculated separately.

iii. Enter the gross price in the Net price field, and maintain the conditions for the item. Then the system automatically replaces the entered gross price with the calculated net price. If the net price for an item is entered for which pricing conditions have been maintained, the system always replaces the price entered with the calculated net price.

iv. Enter the Tax Code for any relevant taxes (for example, Excise Duty, Sales Taxes etc.) in the Tax code field. If a purchase order is created by referencing an RFQ, this code facilitates the determination of the tax amount when the invoice is entered in the system.

v. After entering tax code, after choosing this system may give an information message showing the effective price, Choose Enter to continue.

7. Once all quotation information has been successfully entered, save the data by Choosing on the Save button, or Choose the keys. A message will be displayed that the data has been saved.

1.4.3 Result

Quotation is maintained.

Maintain the same for other RFQs.1.4.4 Example

Quotation for RFQ 6000000000 maintained.

1.5 Price Comparison

1.5.1 Use

Required to compare prices from all quotations received as a result of a competitive bidding process.


1.5.2 Procedure


SAP R/3 menuLogistics ( Materials Management ( Purchasing ( RFQ/Quotation ( Quotation ( Price Comparison


2. On the Price Comparison List screen, make the following entries:

a. Choose the comparison values to be used:

i. Reference quotation: You can compare the quotations within the list with a sample quotation. The system displays the percentage deviation between each quotation in the list and the sample quotation.

ii. Mean/minimum value quotation: The price comparison list can also display a "fictitious" quotation reflecting the average or minimum value of all quotations. Select either the "Mean value" or "Minimum value" quotation field to choose the type of fictitious quotation.

iii. Percentage basis: The price comparison list displays the percentage of each item in relation to the maximum, minimum, or average price. To determine the display type, enter one of the following:

+:The highest value for each item is the 100% value

-:The lowest value for each item is the 100% value

_:The mean value for each item is the 100% value

b. Select the desired price computations:

i. Select the appropriate field to determine which of the following should be included in the determination of the comparison price:

i. Include cash discounts

ii. Include delivery costs

iii. Determine effective price

3. Once all entries have been made, Choose the Execute.

4. On screen Price Comparison List in Currency INR, view the Price Comparison list.

5. To view any of the following information for a particular quote included in the comparison, Choose the RFQ number with the mouse to select it, then Choose the appropriate icon/button on the menu toolbar:

6. Display Material:Allows the user to view the purchasing data in the material master record.

7. Display Vendor:Allows the user to view the vendor master record.

8. Additional Info:Allows the user to view payment terms, bid dates, currency information for all the vendor quotations in the list.

9. If any information has been modified through the comparison list, save the RFQ before exiting. If changes have been made and the user attempts to exit without saving, the system will return a message to verify action.

10. To exit the transaction, choose the green Back arrow, the yellow Exit arrow, or Choose the F3 button.

1.5.3 Result

Price Comparison List in Currency INR is displayed on the screen.

1.6 Creating Purchase Requisition

1.6.1 Use

A Purchase Requisition is created to indicate purchase department to procure materials or services with details like how much quantity is required, when required. Generally it is created automatically for Raw materials and Packing Materials through MRP Run and Spares and Service related to Plant Maintenance Purchase Requisition is generated automatically from Plant maintenance Order.


1.6.2 Procedure


SAP R/3 menuLogistics ( Materials Management ( Purchasing ( Purchase Requisition ( Create

Transaction codeME51N

2. On the Create Purchase Requisition screen, make the following entries:

Press or Ctrl+S to Save the Purchase Requisition.

1.6.3 Result

1.6.4 Example

Purchase requisition number 0010000000 created.

1.7 Release Purchase Requisition

1.7.1 Procedure


SAP R/3 menuLogistics ( Materials Management ( Purchasing ( Purchase Requisition ( Release (Individual Release


1.8. Assign and Process Purchase Requisition

1.8.1 Use

a) This section explains the functions provided by the SAP System for converting requisitions into external purchasing documents (purchase orders, contract release orders, scheduling agreement delivery schedules, RFQs), and the processing options thereby available to you:

Assigning means defining the desired source for each purchase requisition item Further processing involves generating lists of requisitions that have been assigned or flagged as outlined above, and the subsequent creation of RFQs, purchase orders, or lines of delivery schedules under scheduling agreements.

Procedure


SAP R/3 menuLogistics ( Materials Management ( Purchasing ( Purchase Requisition ( Follow-On Functions (Assign and Process


3. The assignment of sources to and further processing of purchase requisitions are two distinct functions. You can choose whether you wish to perform the functions in two separate steps or in just one.

4. Below are the Selection Parameters to restrict the process of PO from PR

5. Press or F8 to enter into the next screen.

6. O is explained in next chapter.

1.8.3 Result

The source is assigned to PR and can be processed for PO.

1.9 Purchase Order

1.9.1 Use

A purchase order is a legal document used to record an individual purchase with the vendor. It also provides the vendor with a reference document to link to shipping (goods receipt) and invoicing (invoice verification) processes. The purchase order is a commitment to a vendor for a given material, in a specified quantity at a predetermined price and delivery date.

This transaction is mandatory for the process.

Please ensure that Purchase Order Value does not exceed specified value and if the purchase order value crosses this limit a release procedure is applied on this purchase order. To release the Purchase Order go to ME28 for collective release and ME29N for individual release.

1.9.2 Procedure


SAP R/3 menuLogistics ( Materials Management ( Purchasing ( Purchase Order ( Create(Vendor/Supplying Plant Known


2. If you want create purchase order with reference to the purchase requisition, on item details screen enter the purchase requisition number and item number at Purch. Req. field. System will automatically adopt all the data from requisition.

1.9.3 Result

Purchase Order is created.1.9.4 Example

Standard PO created under the number 210000000.1.10. Release Purchase Order

1.10.1. ProcedureAccess the transaction choosing one of the following navigation options:

SAP R/3 menuLogistics ( Materials Management ( Purchasing ( Purchase Order( Release (Individual Release


1.11Message Output

1.11.1 Use

A Purchase Order needs to be printed for transmitting to vendor.

Procedure


SAP R/3 menuLogistics ( Materials Management ( Purchasing ( Purchase Order ( Messages ( Print/Transmit

Transaction codeME9F

3. On the Message Output screen, make the following entries

4. Choose to Execute.5. On screen Message Output select the appropriate Document number and perform the following:

Choose Output Message and/or

Choose Display Message and/or

Choose Message Detail and/or

Choose Trial Printout.

1.12 Goods Receipt for Purchase Order

1.12.1 Use

Goods are received from the Vendor as a result of a Purchase Order at the receiving plant. A goods movement is entered into the system referencing this PO and a goods receipt material document is posted. Appropriate general ledger accounts are also posted and stocks are updated.

1.12.2 Prerequisites

Purchase Order

1.12.3 Procedure


SAP R/3 menuLogistics ( Materials Management ( Inventory Management ( Goods Movement ( Goods Receipt ( For Purchase Order ( PO Number Known

Transaction codeMIGO

2. On the Goods Receipt Purchase Order screen, make the following entries:

3. After pressing Enter system will fetch all the data from the Purchase Order as shown below:

4. System defaults the balance quantity in PO, change the quantity to the received quantity:

Field nameDescriptionR/O/CUser action and valuesComment

Goods ReceiptGoods ReceiptRSelect from drop down list for action

Purchase OrderPurchase OrderRinput the PO number which generated above

4500000277

Movement Type101

Enter

Document DateDocument DateREnter document date

Delivery Notein HeaderODelivery Number from Vendor

VendorVendorRDefaulted from purchase orderGrayed out

Posting DatePosting dateREnter posting date

Bill of ladingBill of ladingOEnter bill of lading

Header textHeader textOEnter header text

Close Header Detail data to enlarge the Detail data.

Select Material tab at Detailed Data.

Material Material tabRDefaulted from Purchase OrderGrayed out

Select Quantity tab in Detail data.

Qty in unit of entryQuantity in unit of entryREnter the quantity you have received from vendor. As a default system will give purchase order quantityQuantity defaulted from Purchase Order

Qty in delivery noteQuantity in delivery noteOEnter the quantity as per vendor delivery challan

Select Where tab in Detail data.

Movement typeMovement typeRDefaulted from header screen

Stock typeStock typeRDefaulted from material master or purchase order

PlantPlantRDefaulted from purchase order

1000

Storage locationStorage locationRDefaulted from purchase order if entered

1010

Goods RecipientGoods RecipientOEnter the name of person who received goods

Unloading pointUnloading pointO

TextTextOEnter the text if required

Select Purchase Order tab in Detail data.

Purchase OrderPurchase OrderRDefaulted from header data Grayed out

Del. completed ind.Delivery completion indicatorODefaulted by system if PO Qty = GR Qty

Select Partner tab in Detail data.

VendorVendor nameOGrayed out

For this material batch management is not active. Just for reference purpose the following data is given.

Select Batch tab in Detail data.

This tab will come only if material is managed in batches.

Proceed with the following steps if material is batch managed only.

BatchBatch numberREnter batch number as date for batch managed materials

Vendor batchVendor batch OEnter vendor batch number for reference

5. Select the Check box Item OK, after entering all the data.

You will get Excise Invoice tab at Header Data for capturing vendor excise invoice details and for posting Part I and Part II.

6. On the Excise Invoice tab at Header Data make the following entries.


Capture & Post Excise invoiceCapture & Post Excise Invoice on Excise ActionRChoose Capture & Post Excise Invoice from drop down listDefaulted

Excise GroupExcise GroupRDefaulted by the system

Excise InvoiceExcise invoiceREnter the vendor Excise Invoice number

For example:

D013

Excise Inv. DateExcise Invoice DateREnter the excise invoice date of vendor

BEDBasic Excise DutyRDefaulted from purchase orderGrayed out

AEDAdditional Excise DutyRDefaulted form purchase orderGrayed out

SEDSpecial Excise DutyRDefaulted from purchase orderGrayed out

NCCDNCCDRDefaulted from purchase orderGrayed out

ECSEducation CessRDefaulted from purchase orderGrayed out

MRP IndicatorMRP IndicatorOTick the check box

Note: If the Base Price in PO is the inclusive of both the Material Cost and Excise Value choose the check box


Select Excise Item tab at Detailed Data (at the last).

Chapter IDChapter ID of materialRDefaulted by the system

No action required

EI QuantityExcise Invoice QuantityRDefaulted by the system from Goods Receipt quantity

Base ValueBase value of materialRDefaulted by the system

BEDBasic Excise DutyRDefaulted by the system

AEDAdditional Excise DutyODefaulted by the system

NCCDNCCDODefaulted by the system

SEDSpecial Excise DutyODefaulted by the system

ECSEducation CessODefaulted by the system

Please cross check the BED, AED, SED, NCCD and ECS amount of item as per the Vendor Excise Invoice, legally you cannot avail more than what mentioned in Vendor Excise Invoice. All other information is defaulted by the system. Hence, no action required by the user.

6. Choose Check at the top of screen.

7. Choose Post to post the document.

Also See the account postings

1.12.4 Result

Material document 5000000009 posted

1.12.5 Example

Material document 5000000009 posted1.13 Logistics Invoice Verification

1.13.1 Use

In this process of Logistics Invoice Verification all the Incoming Invoices are verified in terms of their content, prices and arithmetic. When the invoice is posted, the invoice data is saved in the system. The system updates the data saved in the invoice documents in Materials Management and Financial Accounting.

1.13.2 Procedure


SAP R/3 menuLogistics ( Materials Management ( Logistics invoice Verification ( Document Entry ( Enter Invoice

Transaction codeMIRO

2. If you are opening for the first time this transaction, system will ask for Company Code, please give 1000 to go in side the transaction.

3. On the Enter Incoming Invoice: Company Code 1000 screen, make the following entries:

If Part II entry is not done then system will not allow you to POST Invoice

Unless and until you post part2 system will not allow invoice verification


TransactionInvoiceRSelect Invoice from drop down list

Header DataHeader data of Invoice RDefaulted by system

Basic tabBasic information tabRSelect basic information tab to give initial information

Invoice DateInvoice DateREnter the Vendor invoice date

ReferenceInvoice referenceOEnter the vendor invoice reference

For Example

USERMANUAL

Posting datePosting DateREnter the posting date of documentSystem will give current date as default

AmountInvoice AmountREnter invoice gross amount including taxes and duties

299,960.20Amount mentioned is only an example

CurrencyREnter the currency in which the bill is presented by vendor, if not entered by user system will default the document currency from purchase order

INR

Calculate taxCheck box calculate taxOCheck this tick box, system will calculate tax amount

Tax codeRSelect the tax code from drop down list

V1

Bus.place/sectnBusiness place or section codeREnter section code if Tax deduction for source is active for this vendorLeave blank for this process

TextTextOEnter text if required for reference

Payment tabPayment tabRSelect payment details tab

BaselineDtBase line date for payment REnter the base line date for paymentWill be defaulted if payment terms entered in PO

Pmnt termsPayment termsOPayment terms of document, if entered will be defaulted from purchase order

Due onPayment due onOWill be calculated by systemGrayed out

DiscountCash discountOEnter if cash discount is offered by vendor

Hide Header data for getting full screen of items if required.

Purchase order / Schedule Agreement RSelect Purchase order / Schedule Agreement in the reference document category from drop down listDefaulted for user

Purchase order numberREnter the first purchase order number generated above

Goods / service itemsRSelect Goods / Service items in indicator from drop down listDefaulted

LayoutLayout of invoice verificationRSelect All information from drop down list

Choose Enter

4. Choose Enter to complete the document feeding part.

5. To check the document credit and debit is balanced on the top right corner of your screen a traffic light is displayed. Beside that Balance of the document is displayed.

Ensure that the Balance is ZERO before posting the document and the traffic light is green or yellow color.

6. If you want to see the accounting postings in simulation mode, Choose Simulation on middle of fourth row of your screen.

7. Choose Save / Post, for posting the document.

1.13.3 Result

Logistics Invoice verification document is posted.1.13.4 Example

Document no. 5105600102 created1.14 Returning Delivery

1.14.1 Use

A material has been received and it needs to be returned for various reasons (i.e. poor quality, incomplete, damaged). The user can use this transaction to return the material to the vendor via the original GR document.

This transaction itself is an independent transaction and it is not mandatory in J81 process. This Return Delivery transaction is used only when material is rejected and needs to be returned to vendor.

If material is rejected by using QM process there is no need to this transaction. This transaction can be used only without QM process materials.

This transaction is used basically when purchased material is needs to be sent back to vendor because of various reasons like poor quality, incomplete items, damaged etc.

Bore proceeding with return delivery to vendor please ensure that sufficient stock is available in storage location and if batch managed in particular batch stocks also. Other wise system will give error message.

Before doing Return Delivery to vendor, check if you have already done Invoice Verification to that Goods Receipt. If you have already done invoice verification please raise Credit Memo to the extent of Returns quantity and then proceed with this process. Other wise system will give an error message.

How to create Credit Memo transaction is explained in the chapter mentioned 1.17 below.

1.14.2 Procedure




2. Select Return Delivery from drop down list to make Return Delivery to vendor.

3. On the Return Delivery Material Document screen, make the following entries:


Return DeliveryReturn DeliveryRYou have already selected in above step 2

Material DocumentMaterial Document numberRSelect from drop down list

5000000189

Enter the material document number which you have made at the time of Goods Receipt for purchase order

Enter


Delivery Notein HeaderODelivery Number. Will be defaulted if you have already entered in original document


Bill of ladingBill of ladingOEnter bill of lading.


Via DeliveryVia DeliveryRTick the check box





Qty in unit of entryQuantity in unit of entryREnter the quantity you want to return to vendor. As a default system will give original Goods Receipt quantity

5000You can not return more than what you have in stock

Qty in delivery noteQuantity in delivery noteOEnter the quantity

100000


Movement typeMovement typeRDefaulted by the system with 122 movement

Stock typeStock typeREnter stock type from drop down list

PlantPlantRDefaulted from original Goods Receipt

1000Grayed out

Storage locationStorage locationREnter the store location from which you want to return to vendor



Reason for MovementReason for MovementRSelect from the drop down list the reason for this movement of material

0001




Del. completed ind.Delivery completion indicatorRDefaulted from purchase order






BatchBatch numberREnter batch number if externally maintained by you or system will allocate batch number



Select Create Excise InvoiceSelect Create Excise InvoiceRChoose Create Excise Invoice from drop down listSelect from drop down list


Series GroupExcise Series groupRDefaulted by the system

Removal timeRemoval time of goodsRSystem defaults current time, change if required







No action required

EI QuantityExcise Invoice QuantityRDefaulted by the system from return delivery document

2



Goods Issue IndicatorGoods Issue IndicatorRSelect from drop down list

IPD for this process




1.14.3 Result

Return Delivery document created

1.14.4 Example

Return Delivery Document No. 50000000011 created.

Note: Excise Invoice for Return delivery also will be generated in the back ground for this transaction

1.15 Excise Invoice Other Movements

1.15.1 Procedure

1. Access the activity choosing one of the following navigation options:

SAP CIN R/3

User menuIndirect taxes Sales / Outbound Movements Excise Invoice For Other Movements Excise Invoice for Other Movements

Transaction CodeJ1IS

2. On the Excise Invoice Other Movements Main Menu screen, make the following entries:

3. Choose Display Excise Invoice icon to start the transaction


Reference

Doc NumberDocument NumberREnter the return delivery document number which you have created in above step

0000000126

Doc YearDocument yearREnter the year of document created

Example: 2006

Enter

1.15.2 Result

Excise invoice generated is displayed.

1.15.3 Example

Excise invoice 0000000014 generated and displayed.

1.16 Posting and Printing the Excise Invoice

1.16.1 Use

Excise Invoice has to be printed and sent along with the material. This is legal requirement in India.


Excise Invoice Document is generated and posted.

1.16.3 Procedure


SAP CIN R/3

User menuIndirect taxes ( Sales / Outbound Movements ( Excise Invoice ( For Other Movements ( Post and Print

Transaction codeJ1IV

2. On the SAP screen, make the following entries:

3. If the document is not posted in step mentioned above, Choose Release to Accounting to post Financial Accounting document.

This transaction is used to just printing of excise invoice.

4. Follow the steps mentioned below for taking print of Excise Invoice.


Excise internal reference

Select internal excise invoice number from drop down list, you can find it with reference to the Excise Invoice number generated in above step 1100400070 for example with the combination of Excise Group 10 and vendor code 10006.

Document No.Document NumberREnter the Excise Invoice Document Number generated in above step

For example: 127

Document yearDocument YearREnter the document year

2006

5. To take printout, select Goto from the top main menu and select Print Document from the list. Or Choose Control + P to get the access of Excise Invoice Printing screen.

6. Choose Execute icon to get list of excise invoice ready to be printed.

7. From the list select the excise invoice number by choosing the check box left side of number.

8. To take printout on printer Choose the Printer icon or Choose F8.

9. To display excise invoice on screen Choose Display icon or Choose F9.

10. System will give popup asking for pre-printed invoice serial number, Enter pre-printed excise invoice number. In this process Choose 99 for testing purpose (since it is not expected to have pre-printed invoice for testing purpose).

11. Select printer from the drop down list. Check box for Print Immediately and New spool request.

12. Choose Print Preview or Print icons to display on screen or to print on printer mentioned above.

13. If printer is connected system will print the document on printer.

1.16.4 Result

Excise Invoice is printed.1.17 Credit Memo

1.17.1 Use

In this process of Logistics Invoice Verification a credit memo is generated on vendor. Please be careful that during the total process after making logistics invoice verification you have made return delivery to vendor. To recover that money you need to do this credit memo transaction.1.17.2 Prerequisites

Logistic Invoice Verification is already made

1.17.3 Procedure







TransactionCredit memoRSelect Credit memo from drop down list






AmountCredit memo AmountREnter invoice (credit memo) gross amount including taxes and duties













Purchase order numberREnter the purchase order number



Choose Enter





7. Choose Save posting the document.

1.17.4 Result

Logistics Invoice verification document is posted.

1.17.5 Example

Document no. 5105600791 created

1.18 Reversals / Cancellation of Invoice or Credit Memo

1.18.1 Use

Invoice documents in Invoice Verification are either invoices or credit memos. These documents can be cancelled. There are two different cases:

If an invoice is cancelled, the system automatically creates a credit memo.

If a credit memo is cancelled, the system automatically creates an invoice.

The system takes the amount and quantity for the credit memo or invoice from the invoice or credit memo to be cancelled, thus avoiding any differences between the invoice and the credit memo or the credit memo and the invoice.


An invoice document can only be cancelled if:

it was posted in Logistics Invoice Verification

It has not already been cancelled

It is not a cancellation document for another document

When you cancel documents in Logistics Invoice Verification, the document line items are not automatically cleared in Financial Accounting. We recommend that you periodically clear such items (using daily background jobs, for example).

1.18.3 Procedure


SAP R/3 menuLogistics ( Materials Management ( Logistics invoice Verification ( Further Processing ( Cancel Invoice Document

Transaction codeMR8M

2. The initial screen for reversal appears.

3. In the fields Invoice doc. number and Fiscal year, enter the data for the invoice document you want to cancel.

4. In the Reversal reason field, select the reason for cancelling the invoice. This allows you to differentiate between different types of cancellations.

5. You can display the document to check. Choose Display document to do this. You can look at the items of the document to be cancelled. Return to the initial screen by choosing Back.

6. Choose Invoice document and reverse or Press Ctrl+S or .

1.18.4 Result

Document Reversed and Clear FI Documents Manually.

1.18.5 Example

Document Reversed with no. 5105600114.

1.19 Reversals / Cancellation of Goods Receipt (GR)

1.19.1 Use

When any data entered incorrect during GR posting it has to be reversed. To do the cancellation of GR, all the follow on documents should be reversed.


A GR can only be cancelled if:

Invoice Verification posted if any should be reversed.

1.19.3 Procedure




2. Choose Cancellation and enter the respective Material Document No. (GR No.)

3. Press enter so that all the data will be captured automatically by the system. If any comment is there to mention it can be mentioned in the Head Text and Text which is available at the Item level.

4. Press Enter to continue and check all the details


You will get Excise Invoice tab at Header Data and Item Details.6. Choose Check at the top of screen.

7. Press Ctrl+S or to post the document

1.19.4 Result

Material document posted, please note the document number.1.19.5 Example

Material document 5000000020 posted

1.20 Reversing CENVAT Postings

1.20.1 Purpose

When the Material Document is cancelled the CENVAT Posting should also be reversed or cancelled.


Material Document (GR) should be reversed.

1.20.3 Procedure


SAP R/3 menuCountry India User Menu ( Indirect Taxes ( Procurement ( Excise Invoice ( Incoming Excise Invoice ( Central Processing ( Capture / Change / Cancel / Display / Post

Transaction codeJ1IEX

2. Select Post CENVAT.3. Select Vendor Excise Invoice.

4. Enter the excise invoice number.

5. Press Enter to continue

6. ChooseSimulate CENVAT

7. A dialog box appears, showing which postings the system will make to reverse the CENVAT.

8. Choose Post CENVAT.

1.20.4 Result

CENVAT Posting Reversed.

1.20.5 Example

CENVAT Posting Reversed with document no. 0000000008.

1.21 Canceling Excise Invoices

1.21.1 Purpose

When the Material Document is cancelled the CENVAT Posting should also be reversed or cancelled.


Material Document (GR) should be reversed.

CENVAT Posting should be Reversed.

1.21.3 Procedure


SAP R/3 menuCountry India User Menu ( Indirect Taxes ( Procurement ( Excise Invoice ( Incoming Excise Invoice ( Central Processing ( Capture / Change / Cancel / Display / Post

Transaction codeJ1IEX

2. Select Cancel.3. Select Vendor Excise Invoice.

4. Enter the excise invoice number.

5. Enter the Rejection Code.

6. Save the excise invoice.

7. Press Yes to Cancel the Excise Invoice.

1.21.4 Result

Excise Invoice has been successfully cancelled.

1.21.5 Example

Excise Invoice 0000000008 / 2008 ( 1234 ) has been successfully cancelled.

2 Procurement of Imported Materials Business Process Procedure

2.1 Procurement of Imported Materials

2.1.1 Purpose

This process Procurement of Imported Materials shows you how to handle the Countervailing duty (CVD) on imports, which is levied in place of excise duty. Unlike other forms of customs duties, such as basic customs duty or special customs duty, you can credit CVD paid on imports to your CENVAT account.

Prerequisites

The following scenario specific master data must be created for operation of this building block and subsequent dependent building blocks.

Material Master record

(Refer User Manual Procurement of Stock Materials (Domestic) Vendor Master record

Ensure that GR based IV is not selected in Purchasing Data.(Refer User Manual Procurement of Stock Materials (Domestic) CIN Master Data

(Refer User Manual Procurement of Stock Materials (Domestic)2.2 Creating Purchase Order

2.2.1 Use

A purchase order is a legal document used to record an individual purchase with the vendor. It also provides the vendor with a reference document to link to goods receipt and invoice verification processes. The purchase order is a commitment to a vendor for a given material, in a specified quantity at a predetermined price and delivery date.

2.2.2 Prerequisites

Before starting the process, please ensure the following information:

Commissioner of Customs is created as domestic vendor, for example: vendor code 600000 - RBI Commissioner in this process.

In master record of main imported vendor GR-based invoice verification tick should not be there on Purchasing Data screen of vendor master. And Schema group, Vendor is filled with schema group ZI. For example vendor code 200000 in this process.

These are basic master data changes with respect to this process only.

For all purchase order a release procedure is applied.

2.2.3 Procedure




5. On the Create Purchase Order screen, make the following entries:

6. For Basic Customs Duty(JCDB),CVD(JCV1),Addition Customs Duty(JADC),E-cess on CVD(JECV)

E-Cess (JEDB)

.

7. To change the vendor for condition type select JCDB condition type and Choose on Condition detail icon located at left bottom side of your screen.

8. System will take to new Item Conditions Detail: screen. In this screen at right bottom of screen you can find the vendor code 60000 the main imported vendor is defaulted here. You have to replace this vendor code with respective vendors and Choose enter and green arrow to come back (F3) to condition tab of purchase order.

9. Repeat the same for other condition types such as JCV1, JECV, JADC, and JEDB etc.

10. Purchase Order may be posted by Choosing on the Save icon.

2.2.4 Result

A message will be displayed stating that the purchase order was saved, with the purchase order number, please note the purchase order number.

2.2.5 Example

Standard PO created under the number 3100000000.

2.3 Release Purchase Order

2.3.1 Procedure


SAP R/3 menuLogistics ( Materials Management ( Purchasing ( Purchase Order( Release (Individual Release


2.4 Message Output

2.4.1 Use


2.4.2 Procedure










2.5 CAPTURING BILL OF ENTRY

2.5.1 Use


2.5.2 Procedure






Enter the Amounts of the Customs Duties Manually in the Amount Column with referring to PO.







For Example

USERMANUAL



39.80Amount mentioned is only an example


USD



V0










Planned Delivery CostsRSelect Planned Delivery Costs in indicator from drop down list


Choose Enter





13. Choose Display Currency which will lead to small pop-up window having the company code currency and Document Currency, position the cursor on the INR to convert to Document Currency and press the details button.


2.5.3 Result


Document no. 5105600121created2.6 Goods Receipt for Imported Purchase Order

2.6.1 Use

Goods are received from the Vendor as a result of a Purchase Order at the receiving plant. A goods movement is entered into the system referencing this PO and a goods receipt material document is posted. Appropriate general ledger accounts are also posted and stocks are updated.

2.6.2 Procedure







Inbound DeliveryPurchase OrderREnter the Purchase Order No.generated above

3100000000

Movement Type101

Enter

Since this is imported purchase order and you have already done invoice verification for planned delivery cost. System will give a new popup Excise Invoice item number screen (which is not there in normal other process) asking for Commercial invoice number and year.

Please enter the invoice verification document number which you have done in above 5105600792 and year 2006.

3. Choose Enter where a small pop-up window will prompt to enter the Commercial Invoice No. and Year (i.e., the Invoice Verification posted for Bill of Entry)


5. System defaults the balance quantity in Purchase Order.



Inbound DeliveryPurchase OrderRinput the Purchase Order number which generated above

4500000059

Movement Type101

Enter









Material Material tabRDefaulted from Inbound DeliveryGrayed out








1000

Storage locationStorage locationRDefaulted from Inbound delivery if entered

1010
















You will get Excise Invoice tab at Header Data for capturing vendor excise invoice details and for posting Part I and Part II.

8. On the Excise Invoice tab at Header Data make the following entries.


Capture & Post Excise invoiceCapture & Post Excise Invoice on Excise ActionRChoose Capture & Post Excise Invoice from drop down listDefaulted


Excise InvoiceExcise invoiceREnter the vendor Excise Invoice number

For example:

4500000059

Excise Inv. DateExcise Invoice DateREnter the excise invoice date of vendor




NCCDNCCDRDefaulted from purchase orderGrayed out

ECSEducation CessRDefaulted from purchase orderGrayed out




No action required

EI QuantityExcise Invoice QuantityRDefaulted by the system from Goods Receipt quantity



AEDAdditional Excise DutyODefaulted by the system




Please cross check the BED, ECS (CVD in this case) amount of item as per the bill of lading, legally you can not avail more than what mentioned in Vendor Excise Invoice.

In case of imported purchase order in normal case system will default CVD and ECess (invoice verification made on commissioner of customs) amount as BED and ECS i.e. CENVAT amount.



2.6.3 Result

Material document posted.

2.6.4 Example

Material document 5000000021 postedYou can see account posting here

2.7 Logistics Invoice Verification for the Materials

2.7.1 Use


2.7.2 Procedure












For Example

1000



100Amount mentioned is only an example


USD



V0













Choose Enter





7. Choose Display Currency which will lead to small pop-up window having the company code currency and Document Currency, position the cursor on the INR to convert to Document Currency and press the details button.


2.7.3 Result


Document no. 5105600122 created3 Procurement of Subcontracting Materials Business Process Procedure

3.1 Procurement of Subcontracting Materials

3.1.1 Purpose

In Indian subcontracting process when you issue materials to a subcontractor, you need to keep track of what materials you have issued and when they have to be returned by subcontractor. The reason for this close monitoring has to do with Indian tax law. Under excise law 57AC, when you send materials to a subcontractor for processing, you are not required to pay any excise duty, even though the materials have left your premises. However, if the materials have not been returned to you within 180 days specified by the law, you will have to reverse any excise credit that you posted when you have purchased the materials. When you send material out of your factory premises you need to send with 57F4 Challan. In this process you are going to do the same.

3.1.2 Prerequisites

The following scenario specific master data must be created for operation of this building block and subsequent dependent building blocks.

Material Master record (Refer User Manual Procurement of Stock Materials (Domestic)) Vendor Master record (Refer User Manual Procurement of Stock Materials (Domestic)) Purchasing Info Record (Optional)

Ensure that Sub-Contracting as Info Category.

(Refer User Manual Procurement of Stock Materials (Domestic)) CIN Master Data (Refer User Manual Procurement of Stock Materials (Domestic)) Chapter IDs

Material ID and chapter ID combination (Ensure Sub-Contract check box is selected for the Materials that provided to vendor) CENVAT Determination

Vendor Excise Details

Excise Indicator for Plants

Excise Indicator for Plant and Vendor

Excise Tax Rates

3.2 Creation of Subcontracting Purchase Order

3.2.1 Use

A purchase order is a legal document used to record an individual purchase with the vendor. It also provides the vendor with a reference document to link to goods receipt and invoice verification processes. The purchase order is a commitment to a vendor for a given subcontracting activity, in a specified quantity at a predetermined price and delivery date.

3.2.2 Prerequisites

Components stock should be available for providing to subcontracting vendor.

3.2.3 Procedure




2. On the Create Purchase Order screen, make the following entries:

After filling the above data, choose on Material Data tab at item Details screen. There you will find a new icon called Components, you have to choose on that icon to give the components list which you are likely to transfer post to vendors and give the flowing inputs.

3. Click on the Components or Explode BOM and enter the materials that had to be sent:

4. Choose on Green Arrow or F3 to come back to main purchase order screen.

5. Ensure appropriate tax code have been entered for both the line items (V0 Nil Tax for Sub-Contracting Item)

6. The Purchase Order may be posted by choosing on the Save icon.

3.2.4 Result

A message will be displayed stating that the purchase order was saved, with the purchase order number.

3.2.5 Example

Standard PO created under the number 24000000003.3 Message Output

3.3.1 Use


3.3.2 Procedure










3.4 Transfer of Components to Subcontractor

3.4.1 Use

The Nature of subcontracting purchase order is that company will provide components to subcontractor. This process describes how to transfer post materials to subcontractor.

3.4.2 Prerequisites

Sufficient stocks of components should be available for making transfer posting.

3.4.3 Procedure


SAP R/3 menuLogistics ( Materials Management ( Inventory Management ( Goods Movement ( Transfer posting

Transaction codeMB1B

2. On the Enter Transfer Posting: Initial Screen, make the following entries:


Document DateDocument DateRInput date

Posting DatePosting DateRInput date

Movement TypeMovement TypeR541

PlantPlantR1000

Storage LocationStorage locationR1010

3. Choose on To Purchase Order icon on the top of the screen or choose F9 on key board. System will give new popup screen asking for purchase order number. Give the 45000000## purchase order number and choose enter to continue.

4. System will display components from purchase order with quantities

5. Choose only the Material that you are sending and enter the Storage Location from which it has to be issued.

6. Choose on Adopt + Details icon or F6.

7. Choose Enter if required the quantity of components can be changed.

8. Choose Save icon or Control + S to post the document.

3.4.4 Result

A message will be displayed stating that the document posted.

3.4.5 Example

Material document 4900000039 posted.

3.5 Creation of Subcontracting Challan

3.5.1 Use

It is statutory requirement to send the components to subcontractor with 57F4 Challan.

3.5.2 Prerequisites

Select the Sub-Contracting Material in Material and Chapter ID Combination of the Excise Master (J1ID) for the sending Material.

Ensure that the details of the receiving Material maintained in the Excise Master (J1ID).

CENVAT Determination of the Excise Master (J1ID) Maintained for the both sending and receiving Material.

Ensure that the Assessable value for the sending material is maintained in the Excise Master (J1ID)

3.5.3 Procedure


SAP User menu

CIN MenuIndirect Taxes ( Procurement ( Subcontracting ( Subcontracting Challans ( Create

Transaction codeJ1IF01

2. On the Subcontracting Challan - Create, make the following entries:


Material Doc.Material document numberR4900000039

Mat. Doc. YearMaterial document yearR2006Appropriate

Excise GroupExcise GroupR10Appropriate

Series GroupSeries GroupRW3Appropriate

3. Choose Enter to continue, system will take new Subcontracting Challan Create screen, make the following entries:


Select Posting tab

Posting date & timePosting date and timeRInput date and time of material removal

Print Immediately Print ImmediatelyOCheck this box if you want challan printout immediately.

Select Overview Tab

Preprinted noPreprinted numberOEnter pre-printed number if you have

4. Save challan by choosing on Save icon or Control + S.

3.5.4 Result

A message will be displayed stating that the document posted.

3.5.5 Example

Subcontracting Challan 000010001 2008; Series Group B1 successfully created.

3.6 Printing of Subcontracting Challan

3.6.1 Use

It is statutory requirement to send the components to subcontractor with 57F4 Challan.

3.6.2 Procedure

Access the transaction choosing one of the following navigation options:

SAP User menu

CIN MenuIndirect Taxes ( Procurement ( Subcontracting ( Subcontracting Challans ( Change


Press Save Icon

Press Enter

Click the Icon to be the Print Preview of the Challan

Execute the Print to Get Print Out.

3.7 Goods Receipt for Purchase Order

3.7.1 Use

Normally Goods are received from the Vendor as a result of a Purchase Order at the receiving plant

3.7.2 Prerequisites

Purchase Order

3.7.3 Procedure






12. First do the posting for the Sub-Contracting Material.

13. System defaults the balance quantity in PO, change the quantity to the received quantity if it is different from defaulted quantity:

14. Ensure that the Movement Type is 101.



Purchase OrderPurchase OrderRinput the PO number which generated above

4500000054

Movement Type101

Enter

















1000






















3.7.4 Result

Material document posted.

3.7.5 Example

Material document 5000000028 posted, You can see accounting Entries

3.8 Reconciling Subcontracting Challan

3.8.1 Use

After making Goods Receipt the GR has to be reconciled with the challan sent to subcontractor.

3.8.2 Procedure


SAP User menu

CIN MenuIndirect Taxes ( Procurement ( Subcontracting ( Subcontracting Challans ( Reconcile Quantity

Transaction codeJ1IFQ

As we have refered challan During Goods receipt here we are getting following message, If you have not refred challan during Gr following is the Process

2. On the Quantity reconciliation for Subcontracting Challan screen, make the following entriees.


Material DocumentGoods Receipt document numberR5000000344

Mat. Doc. YearYear of documentR2006

YearSubcontacting challan yearR2006

Chalan NoSubcontacting challan NoR000000031

Choose on Reconcile icon or F8 to go reconciliation screen.

3. System will take you to new Quantity reconciliation for Subcontracting Challans.

4. Here on this you can see system display items from Goods Receipt at top and items from challan at bottom of screen.

5. Here you need to allocate the components consumed in GR stage are reconciled with challan to do this, choose on Allocate based on FIFO icon in the middle of screen with calculator icon.

6. Or you can do allocation by entering manually also in respective line items at bottom, where Assigned quantity filed is located in white color.

7. After assignment save the document by choosing Save icon or choose Control + S

3.8.3 Result

Material document was successfully reconciled.

3.8.4 Example

Material Document 5000000028, 2008 was successfully reconciled.

3.9 Completing/Reversal/Re-credit Subcontracting Challan

3.9.1 Use

This transaction is basically used to complete the challan if you have reconciled as stated above step. There may be cases subcontractor may not able to supply within stipulated 180 days limit then in this case also same transaction is used for reversal of challan or re-crediting the amount.

3.9.2 Procedure


SAP User menu

CIN MenuIndirect Taxes ( Procurement ( Subcontracting ( Subcontracting Challans ( Complete/Reverse/Recredit


2. On the Subcontracting Challan Complete/Reverse/Recredit screen, make the following entries:


Chalan NoSubcontacting challan NoR0000000031

Excise yearDocument yearR2006

3. Choose enter to go to inside the challan document.

4. Select the radio button Complete Challan and.

5. Save the document by choosing Save icon or choose Control + S.

3.9.3 Result

Subcontracting challan successfully completed.

3.9.4 Example

Subcontracting Challan 0000001 2008; Series Group B1 successfully completed.

3.10 Logistics Invoice Verification for Subcontracting Material

3.10.1 Use


3.10.2 Procedure





3. On the Enter Incoming Invoice: Company Code 1000 screen, make the following entries:4. Choose only the Subcontracting material to post the document:







For Example

USERMANUAL

Posting datePosting DateREnter the posting date of documentSyste