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Based on processes in a Mining co. in Australia
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Standard Business Processes in SAP MM
Prepared BySubhrajyoti Bhattacharjee
PMP®, Certified SAP EAM/PM, Certified ITIL V3
SAP EAM/PTP/PS Systems Analyst
Perth, Australia.
E-mail: [email protected]
Contents
1. STOCK PURCHASE – NON ERS VENDORS................................................................................................3
2. STOCK PURCHASE – ERS VENDOR...........................................................................................................17
3. DIRECT CHARGE PURCHASE – NON – STOCK ITEM...........................................................................23
4. DIRECT CHARGE PURCHASE – SERVICE.................................................................................................28
5. STOCK TRANSPORT BETWEEN PLANTS.................................................................................................36
6. CONSIGNMENT PURCHASE......................................................................................................................... 48
7. RECURRING PAYMENTS USING INVOICING PLAN..............................................................................55
8. MISCELLANEOUS PURCHASING................................................................................................................ 59
9. INVENTORY MANAGEMENT......................................................................................................................... 63
1.Stock Purchase – Non ERS Vendors
Scenario brief: In this scenario, material stock relevant for MRP Planning are planned and procured. Depending on MRP Type, Lot sizing procedure, Availability Check and other parameters as set in material master and MRP configuration, a daily MRP batch job determines within the defined planning horizon, which are the parts that have fallen below reorder point (based on Requirements vs. Planned receipts). An entry is made against the material in MRP Planning File, and Planned Order/Purchase requisition is generated (as per MRP parameters).
Purchase requisitions are automatically converted to Purchase Orders, against which Goods receipt to relevant Plant/Storage Location is performed. Finally vendor invoice is created, blocked invoices, if any, are cleared by relevant authority and Vendor payments are executed.
Pre-requisites:
Material master with all relevant field details including MRP and Purchasing data fields. Refer document “PTP_Current State Document_PTP Master Data_v0” for details on relevant fields in material master.
Source assignment records should exist for the material for auto PO creation from PR. This would include Outline agreement (Contract)/Source List/Purchasing Info records.
Configurations and master data associated with all process objects including Purchase requisition, Purchase Order, Goods Receipt, Invoice Receipt, Material movements and Accounts postings should be complete and valid.
Process Flow in SAP:
Step 1. Requirements for usage of stock material are generated in the system for the material. Requirements can be generated through manually created reservations or Reservations automatically generated through planned requirement for stock material in transactions such as Maintenance Order –component planning.
Manually created reservations Transaction code: MB21
Enter Base Date (Date on which material consumption/movement) is expected, Movement Type (where the material would be consumed), Plant (Plant issuing or receiving the material)
The relevant movement types for manual creation consumption requirement of the material at ABC would include 201 – Consumption for Cost centre, 221 –Consumption for Project.
In main screen, select Consumption object based on Movement type (for example. Cost Centre), Material ID, Quantity and save the reservation
Auto created reservations – Maintenance Order Planning
Transaction code: IW31 (Create Order)/ IW32 (Change Order)
In Maintenance Order –> Component planning, whenever a stock material is planned as a requirement, a Reservation for the same is created inside the maintenance order. The time of creation of the reservation may be on Save or during Release of maintenance order based on configuration setup or in Order.
Check in Gen. Data tab where Reservation No. for the item will be displayed.
Step 2. Create PR via MRP Run
Transaction code: MD01 (MRP Run for a Plant), MD03 (Single-item, Single-Level), MDBT (Batch mode - Daily batch run, automated)
Auto Batch is set for Daily run at ABC.
MD03 (Single-item, Single-Level)
Step 3. Create Automatic Purchase Order
Transaction code: ME59 (Automatic creation of Purchase Order from Requisitions)
Enter selection parameters such as Plant, Material ID, Purchase Requisition No. etc. and execute the transaction
Purchase Order created can be searched in PO List Report transactions like ME2L (By Vendor), ME2M (By Material), ME2K (General) and so on.
Step 4. Receive Stock
Transaction code: MIGO_GR
Transaction MIGO is mostly used for Goods Receipt but as per Executable actions configured on MIGO transaction, A01 Goods has not been set. It is set in transaction MIGO_GR
Material document posted can be displayed in Transaction MB03.
On Goods receipt for Stock material, the following Accounting entries are posted, if material has Moving Average Pricing set:
Stock A/c Dr GR/IR A/c Cr
In case of Material with Standard pricing, and in case Purchase price is different from Material standard price,
Stock A/c DrPrice Difference A/c Dr GR/IR A/c Cr
Cancellation of the Goods receipt movement can be done through transaction MBST
Note: As per print output setting and Printer assignment setting for output condition type in configuration transaction OMJ3, at ABC, GR of stock items against a Plant/Storage Location would generate a GR Note being printed to the respective Printer mapped in OMJ3.
Step 5. Create Vendor Invoice
Transaction code: MIRO
In case of PO being marked for GR-Based IV (PO -> Item details -> Invoice tab), Invoice can be created against Goods receipt postings only, whereas if it is marked as Invoice receipt, Invoice can be created against the Purchase Order as a whole.
Basic Data Section:
Invoicing date, Posting date, Reference, Reference Document category (Ex. Purchase Order/Bill of Lading/Delivery Note etc.) and
Reference Document No are entered.
Tick on Calculate Tax option to calculate Tax if any. Enter the Net amount in the Amount field, till the Balance is 0.00
Payment section:
Payment terms, Payment method, Payment Block, Overall discount (if any) can be set in this section
Other sections of the Invoice which can be maintained include Details section (for Unplanned Delivery Cost, Planning Level – XA: Blocked for payment etc), Tax, Amount Split (to split total amount as per payment terms), Contacts, Note (for maintaining a detailed note on Invoice)
Simulate and Save the invoice document. As by default Invoice documents may be marked for Payment block, it gets blocked for further clearance.
Step 6. Release Blocked Invoice
Transaction code: MRBR
Enter selection details in initial screen and execute the report.
Select Invoice and click on the Green Flag to release the Invoice, and save to release.
On Invoice Posting, the following Accounting entries are posted:
GR/IR A/c DrTax Account Dr (if taxes are applicable) Vendor reconciliation A/c Cr
Step 7. Execute Payment Run
Transaction code: F110
Payment run is executed by the Accounts payable department. A brief of the transaction is provided below.
In initial screen, Run date and Identification is entered for the payment proposal.
Under the Parameter tab, enter Company code, Payment method (as relevant), Next payment date, Vendor Accounts (if specific vendors are to be paid), Exchange rate type (in case of payment in Foreign currency)
In Free selection section, Field Name (for example – Invoice Document No or a List of them) can be specifically selected or excluded
In Additional Log section, Log types and Vendor/Customer account range can be maintained
In Printout/Data Medium section, relevant Program variants can be set
On Save, parameters for Payment Program run for Payment Run date is saved.
The Next steps are to Schedule the proposal and Execute the Payment Run in the initial screen of the Transaction
The Next steps are to Schedule the proposal.
On entering Start Date/Time, etc. and clicking on Green Tick, it will give a message “Proposal has been released”
The payment run will be executed by the system as per scheduled Date/Time
Post Payment, the following Accounting entries are posted:
Vendor Reconciliation A/c Cr Bank A/c Dr
2.Stock Purchase – ERS Vendor
Scenario brief: ERS or Evaluated Receipt Settlement is applicable for Vendors which are marked for Auto ERS settlement in Vendor master –> Purchasing Data -> Control Data section.
In this scenario, post Goods receipt, Auto ERS Invoices are created, which are then subject to Payment run. This scenario generally applies for regular/periodic purchases from established vendors.
Pre-requisites:
Vendor Master should be setup with checkbox for Auto ERS settlement and GR Based IV. Details of Vendor master setting is elaborated in document “PTP_Current State Document_PTP Master Data_v0”.
In the Purchasing Info record, for the Vendor – Material – Purchasing Organization combination, No ERS checkbox should not be set. Details of Purchasing Info record setting is elaborated in document “PTP_Current State Document_PTP Master Data_v0
Configurations and master data associated with all process objects including Purchase requisition, Purchase Order, Goods Receipt, Invoice Receipt, Material movements and Accounts postings should be complete and valid.
Process Flow in SAP:
Step 1. Purchase requisition for the material is generated based on automated MRP run as detailed in previous section of this document
Step 2. Purchase requisition is Source assigned and converted to Purchase Order
Transaction code: ME57
This Transaction is subject to the fact that the Material does not have already have a source assigned to it, say through a Fixed vendor or single Purchase Info record within the current validity period etc. In such cases transaction ME59 as detailed in previous section can be used.
Enter relevant details in the selection screen like Purchase Requisition No (if known), Purchasing Group, Material ID, Material Group etc. as relevant and execute the transaction
Select the displayed Purchase requisition and click on Assign automatically or assign manually. In case of multiple available sources, users would have to choose from the available sources. Save once after assigning the Source.
Next stage is to process assignment and convert the Purchase requisition to a Purchase Order. Select the Purchase requisition line and click on Assignments tab
Select the Assignment line and click on tab Process Assignment.
The system automatically proposes the Purchase Order Type, Purchase Order Date, Purchasing Group, Purchasing Organization. Click to continue, Edit and save the Purchase Order.
Ensure that ERS , GR Based IV and Invoice Receipt indicators are ticked in Purchase Order -> Item -> Invoice section. Inv. Receipt should be unchecked. Also, under Delivery tab, Goods Receipt indicator should be ticked.
Message Output set for Order can be checked by clicking on Messages tab
Generated messages can be displayed in ME9F Transaction
Step 3. Goods receipt is carried out against the Purchase Order – as detailed in previous process section of this document
Step 4. Creation of ERS Invoice
Transaction code: MRRL
Enter selection parameters in initial screen. It is usually recommended to first run it in a Test run mode and then perform an actual run. In the field Doc. Selection, if Purchase Order No. is known it can be directly on Purchase Order, else it can be set on Vendor, if vendor is known.
There is also a checkbox for Settle Goods – Item + Planned Delivery cost, which must be checked for settling Item and Planned Delivery costs (if any). Remove Test run check for actual run.
A List output screen with FI document no. (ERS Invoice) generated would come up, if the transaction has not been run in Test mode.
Step 5. Vendor Payment would be performed using similar procedure as documented in first process section.
3.Direct Charge Purchase – Non – stock item
Scenario brief: Direct Charge purchase refer to manually created Purchase requisitions created for consumption of Non stock items
directly to an account assignment object such as K- Cost centre, P- Project, F- Maintenance Order etc.
Manual creation of Purchase requisitions can take place directly in MM module, through Purchase requisition creation transactions or in certain cases automatically in other modules in relevant transaction. For example – when a Non – stock item is planned directly inside a Maintenance Order (under component section), system can be set to automatically generate a Purchase requisition for the non-stock item with account assignment “F”. So when Goods will be received, the goods and relevant costs will directly be posted to the maintenance order.
Non stock Purchase requisitions with Account assignment are usually subject to a Release procedure which is defined as per characteristics values of Class PR_RELEASE in system. Details of Release Strategies and their defining characteristics values can be checked for above class and class type 032 in transaction code CL24N
Pre-requisites:
Configurations, master data and inter-module integration associated with all process objects including Purchase requisition, Purchase Order, Goods Receipt, Invoice Receipt, Material movements and Accounts postings should be complete and valid.
Process Flow in SAP:
Step 1. Purchase requisitions are manually created with Account assignments or created automatically through Non stock component planning in Maintenance Order
ME51N – Manual PR Creation
All details are entered including Material ID (if known)/Text (if no material ID is known), Material Group (as relevant), Purchasing Group (For Direct Purchase), Quantity, Unit, Delivery Date, Plant (receiving plant) etc. and Purchase requisition is saved.
Also Item details pertaining to Account assignment, Valuation, and other mandatory fields should be filled. System will automatically point out to required fields that are missing entries.
IW31/IW32 – Create/Change Maintenance Order
In the Component section of the Maintenance Order, the details of the Non-stock components are entered
System will prompt user for entering mandatory details pertaining to Material Group, Purchasing Group under the Purchasing Data tab against the Line item. Other optional fields like Vendor, Planned Delivery Time etc. as relevant can also be entered.
Based on setting on component line, system can be triggered to generate a Purchase requisition for the Non stock item either After Order release or Immediately or Never.
Details of Purchase Requisition, linked to the Maintenance Order can be directly found inside Maintenance Order -> Purchasing Data section.
Step 2. Purchase requisition is released by relevant authority based on Release code identified by system based on Purchase requisition value etc., and corresponding approving limits of approver
Transaction code: ME54
The Purchase Requisition is released and saved.
Step 3. Assignment of Source and Processing of assignment to create Purchase Order from Purchase requisition.
Transaction: ME57
Process is same as detailed in previous process sections in this document.
Step 4. Goods receipt against the Purchase Order Process is same as detailed in previous process sections in this document.
Step 5. Invoice Receipt Process is same as detailed in previous process sections in this document.
Step 6. Vendor Payment Process is same as detailed in previous process sections in this document.
4.Direct Charge Purchase – Service
Scenario brief: Service Procurement is a major procurement activity at ABC. Services procured may be segregated under several categories including Contract Labour hire, Fleet Equipment hire, Consulting services, Project Based services and Miscellaneous services among others. Further, services are categorized from EH&S perspective as Onsite services, Offsite services etc. to ensure that vendors comply as per Health and Safety norms. Ongoing CMIP Project aims at building up an SAP based process to perform Health & Safety related capabilities of vendors prior to assigning them work that would require due compliance.
For details of Service master maintenance and categories of services, refer to the document “PTP_Current State Document_PTP Master Data_v0”
Service entry sheets are filled up by external Service vendors in an application called ICAPS which is a Portal based application built for that purpose and accessible to authorized vendors. ICAPS functionalities have not been detailed in this document owing to controlled and limited access to the application.
Pre-requisites:
Configurations, Service master data and inter-module integration associated with all process objects including Purchase requisition, Purchase Order, Service Entry, Invoice Receipt, Material movements and Accounts postings should be complete and valid.
Process Flow in SAP:
Step 1. Creation of Service Purchase Requisition.
Transaction: ME51N (Manual Creation of Purchase Requisition)/ IW31 (Maintenance Order Creation with External Services)/ IW32 (Maintenance Order Change with External Services)
ME51N (Manual Creation of Purchase Requisition)
Service Purchase requisitions can be directly created in this transaction. Services are procured to an appropriate Account assignment category (such as K – Cost Centre, P – Project, F – Order etc.). Item category for Service procurement should be set as “D” in Purchase requisition line item.
The Material Group, and Purchasing Groups should be correctly assigned and other relevant details like Quantity, Unit, Plant etc. should be filled up
Service item details like Service No, Quantity, Unit, Gross price should be correctly filled.
Account assignment details and other required details ,if any, should be filled up. Check and save Purchase requisition.
IW31/IW32 (Service Purchase Requisition – from Maintenance Order)
Service planning can be done inside a Maintenance order. Services are External Service operations defined in maintenance order using an appropriate Control Key. While selecting the Control key in the Operation from dropdown list, users should ensure that “Service” checkbox is ticked for that control key thus classifying it as a service
Services are planned under Operations tab of Maintenance order
All essential details including Material Group, Purchase Group, Operation Quantity etc. should be filled in popup that comes up
Service details are to be maintained under the External tab at the bottom of the Operation tab
Based on configuration setting on Maintenance Order type for field Operation – Res/Preq creation, Service PR may be created on Save or on release or Never for the maintenance Order type.
Purchase requisition pertaining to services created from Maintenance Order can be checked in MM – Purchase Requisition List Reports (For example. ME5A transaction, with Account assignment category set as F) or directly inside Maintenance Order under Operation -> Act. Data tab
Step 2. Approval of Purchase Requisition by authorized person.
As detailed in previous process section of this document.
Step 3. Source Assignment and Conversion to Purchase Order.
As detailed in previous process section of this document.
Step 4. Service Entry sheet created against Purchase Order, and performed Service quantity accepted for posting
Transaction: ML81N (In SAP)/ Service entries done through ICAPS not in scope of this document. Separate documents may exist on the same in ABC Portal.
The Purchase Order No is entered by clicking on Other Purchase Order tab. Then click on Create entry sheet icon and enter values of Short Text, Document Date, Posting Date and Reference
Click on Service selection tab
If Adopt Full Quantity is not ticked, system will propose for service entry Net pending hours (Planned hours – Already entered hours), and if it is ticked, system adopts full quantity as planned. It is better to be left unchecked.
In next screen select the service line and click on tab Services (Adopt Services)
The system automatically adapts the service line into the Service entry sheet under Accept Data tab
Users should now update the Actual Quantity of service that has been performed, to be accepted for posting.
To accept and Post the service entry, click on Green Flag on Task bar and save the Service entry sheet.
Step 5. Invoice created for services performed and accepted
As detailed in previous process section of this document
Step 6. Vendor payments
As detailed in previous process section of this document
5.Stock Transport between Plants
Scenario brief: This scenario refers to internal procurement of Stocks, between Plants where one plant would be a supplier or vendor plant and the other would be a receiver or customer plant. In this process the customer plant would raise a STO Purchase Order for delivery of goods against the supplying plant. The supplying plant would in turn create a sales order against the requirement with recipient plant’s Customer ID.
The process would follow a 1-step procedure, if set in STO configuration setting between a pair of plants and PO Type or 2 –step stock Transfer with supplying plant issuing out the stock from its Unrestricted use stock, stock transferred to Stock in Transit and receiving plant finally receiving from Stock in transit to Unrestricted use stock. In one step procedure as soon as stocks are issued out of supplying plant, it would get posted to stock in receiving plant.
In ABC process perspective there is no integration setup of PTP (SAP MM) with SAP QM module. Ideally, as per SAP best practice guidelines, on receipt of Goods at receiving plant, there should be check on Quality parameters of the goods delivered and only on passing the parameters is the stock declared as Unrestricted. For ex. In case of Finished product of Mining, Grade check with factors such as Metal content, Moisture content etc. should ideally be checked and recorded system. In such a scenario, stocks would get posted to Quality Inspection stock, generating inspection Lots against which Result Recording and Usage decision is recorded, based on which the stock gets transferred to Blocked stock o5r Unrestricted use stock.
Pre-requisites:
A Vendor master should exist and be assigned against the supplying plant and a Customer master should exist and have been assigned in MM STO configuration against the receiving plant.
The material master should be active in both plants and should have at least a Purchasing view in receiving plant and a Sales view in supplying plant
For delivery relevant STO, all necessary delivery relevant configuration settings should have been done on MM side
Configurations, master data and inter-module integration associated with all process objects including STO Purchase Order, Outbound Delivery/Goods issue, Inbound delivery/Goods receipt, Sales billing (if relevant), Invoice verification (if sales billing is relevant), Material movements and Accounts postings should be complete and valid.
Process Flow in SAP:
Step 1. Creation of STO Purchase Order (Type UB)
Transaction: ME21N Enter Header details including Supplying Plant, Purchase
Organization, Company Code, Purchasing Group etc. as relevant
Enter Item details including Material ID, PO Quantity, Delivery Date, Recipient Plant, Storage Location, Item Pricing Condition details, Confirmation control key with Delivery details (under Confirmations to be set to Inbound delivery if relevant to same)
Check and save the Stock Transport Order
Step 2. Creation of Sales Order at Supplying Plant
Transaction: VA01
A Standard Order “OR” is raised in SD against the supplying Plant
Enter relevant Header Level information like Sold to party (for recipient plant), Ship to party (for recipient plant), Purchase Order No. etc.
Enter relevant Item level details including Material ID, Quantity, mandatory Pricing conditions, Terms of payment, Incoterms etc.
Check document for completeness and save the document
Step 3. Creating an Outbound Delivery for Sales Order
Transaction: VL10
In the Sales Orders tab of the Transaction, enter the Sales Order No. and execute. The Delivery date and CalcRuleDefltDlvCrDt fields for selecting the Sales documents relevant for delivery should be correctly chosen.
Select the relevant Delivery item line and click on Create in Background
Step 4. Goods Issue against Outbound Delivery
Transaction: VL02N (Change Outbound Delivery)
Document Type: NL
Enter actual picked quantity, generate output docs (as relevant)
Confirm and save
Post Goods issue against outbound delivery by clicking on Post Goods Issue tab.
Note – If Goods issue is simple inventory movement (without Outbound delivery), Goods are issued through standard MIGO transaction
The entire document flow for Purchase Order -> Replenishment Delivery -> Picking request -> Transfer to Stock in Transit and so on can be viewed within the Document flow section of delivery
On posting Goods issue, movement type 641 is executed which results in
Stock in Transit at receiving plant Dr Inventory at supplying plant Cr
If there are Freight charges included, accounting document would show following entries:
Inventory Transfer A/c Dr Freight/Custom Clearing A/c Cr
This can be checked in Material movement document in transaction MB03
Also in MB5T transaction report, Stock in Transit can be checked
Step 5. Create Inbound delivery at Receiving plant
Transaction: VL31N (Create Inbound Delivery w.r.t PO)
Enter Vendor and PO Number and proceed
Partner Function “LF” should have been set under Goto –> Header – Partners
Save the Inbound delivery
Step 6. Post Goods receipt
Transaction: VL32N
Check under Item overview; enter Actual GR date, update Delivery Quantity and Receiving plant and click on Post Goods Issue
The resulting goods movement results in transfer posting of stock:
Stock in Transit Cr Unrestricted (UR) Stock at receiving plant Dr
Check against Stock in receiving plant in MMBE/MB52 transactions. The UR stock value would go up.
Step 7. Sales order billing/Release to Accounting (Only applicable in case of Intercompany billing – provided that there is a business process for same)
Transaction: VF01/VF02
Above scenario executed between Plants under same company code. Hence no subsequent billing (at supply side) or invoice receipt (at recipient side) is applicable. Invoice receipt, where applicable, would follow a similar process as documented under previous process scenarios of this document.
6.Consignment Purchase
Scenario brief: Consignment process is based on the VMI (Vendor Managed Inventory) concept of procurement. Vendor has physical and financial control of the stock which is stored at customer premises unless customer withdraws complete or part of stock from the designated vendor consignment stock for personal usage. This would create a liability on the customer which is to be paid/settled to vendor.
Purchasing Info records and Contracts for Consignment items are maintained which is the basis of source assignment while conversion of a Purchase requisition to a Purchase Order. On delivery of a Consignment item, Goods receipt would result in stocks being stored in Vendor – Consignment stock segment. On requirement of stock, Goods issue from consignment stock to account assignment object (such as requesting Cost Centre, Project etc.) is executed using the relevant movement type. Auto invoice for consignment stock usage is created which is further subject to Payment run.
Pre-requisites:
Configurations, master data and inter-module integration associated with all process objects including Material movements and Accounts postings should be complete and valid.
Process Flow in SAP:
Step 1. Consignment Purchasing Info record creation & Consignment Contract creation.
Details of above are provided in the document “PTP_Current State Document_PTP Master Data_v0”
Step 2. Purchase requisition created for consignment item
Transaction: ME51N
Enter relevant Item level details, such as Item Category (= K for Consignment), Material ID, Quantity, Recipient Plant, Delivery Date etc. as relevant and save the Purchase requisition.
Step 3. Purchase requisition is released by designated authority As detailed in previous process sections.
Step 4. Purchase requisition is Source assigned and converted to Purchase Order
As detailed in previous process sections. Purchase order would be a price suppressed purchase order.
Step 5. Goods are received against the Purchase order
Transaction: MIGO_GR
Goods receipt is executed via movement type 101 K. On receipt of Consignment goods, a special segment of stock “Consignment stock” against the Vendor gets posted. Material document does not have an associated Accounting document.
In MMBE Report, the stock received of Consignment material at recipient Plant/Storage Location would be displayed under Vendor Consignment stock.
Step 5. Goods issue for consumption from Vendor Consignment stock
Transaction: MB11/MB1A/MIGO_GI
Goods from Consignment stock can be issued out for consumption to Cost Centre (movement type 201 K), Projects (movement type 221 K) and so on. To reverse movements, movement types are 202 K (Consignment consumption for Cost centre reversal), 222 K (Consignment consumption for Project reversal) and so on.
While posting from Consignment stock, Vendor entry is mandatory, so that system knows as to consume from consignment stock of which vendor.
Apart from Vendor, consumption object (such as Cost centre), Material No, Quantity, Batch (if applicable) are to be entered
During Consumption, associated with Material Document are Accounting, Controlling and Consolidation documents (if
Consolidation active). The accounting document would result in following entries:
Consignment stock Clearing A/c Cr Stock consumption A/c Dr
In MMBE report, the consignment stock would be reduced by the amount consumed.
Step 6. Auto settlement of liabilities created on consumption of consignment stock
Transaction: MRKO
In the initial screen enter Company code, Vendor, Plant, Material, Consignment (ticked), Document Date, Withdrawals not settled (ticked), etc. as relevant
Initially run the report with Processing option set to Display
For settlement of items, execute with processing option set as Settle in the initial selection screen
An Invoice document would be generated in the settlement run.
The accounting entries that are generated are:
Vendor reconciliation A/c Cr Consignment stock clearing A/c Dr GST/Input Tax credit a/c Dr
Step 7. Vendor payments
As detailed in previous process section of this document
7.Recurring payments using Invoicing Plan
Scenario brief: Certain procurements are done on a regular basis and would involve payment on a periodic basis, say at the end of each month. Such payments can be planned using an Invoicing plan set in the Purchase order. Purchase order created is a Framework Purchase Order. In such cases, there is no Goods receipt performed. On a periodic basis, Invoices would be generated through auto settlement report in Logistics Invoice Verification.
Pre-requisites:
Vendor should have been set up for auto ERS settlement Invoicing Plan details should be set in Purchase Order (Framework
PO) Configurations, master data and inter-module integration
associated with all process objects including Material movements and Accounts postings should be complete and valid.
Process Flow in SAP:
Step 1. Creation of Framework Purchase Order
Transaction: ME21N
Choose Order type “FO” and enter other details at Header and Item level of Purchase Order
Header details would include Vendor Data, Organizational Data such as Purchasing Org., Purchasing Group, Company Code, Validity Start date, Validity End date, etc.
Item details would include Account assignment key (K- Cost centre, P-Projects etc.), Material ID/Short text, Quantity, Unit, Price per unit, Material Group, Plant, etc.
A crucial section to be filled in is the Item details – Invoice section, where only Invoice receipt and ERS are to be ticked and Invoice Plan details are to be filled, with planned invoice dates. Invoice amount would be equal to the price of the item against which Invoicing plan has been set.
Click on Invoicing plan tab and Invoicing Plan type is to be selected from dropdown
In Delivery section of Item details either Goods receipt should be unchecked or it can be set to GR – Non-valuated
Step 2. Carry out Automatic settlement (Invoicing Plan)
Transaction: MRIS
In the Initial screen enter the details known – such as Company code, Plant, Vendor, Purchasing Document etc. Initially execute it in Test run mode
On removing the Test run checkbox in initial screen, Invoice document would have been generated.
Step 3. Execute Vendor Payment
As detailed in previous process sections
8.Miscellaneous Purchasing
Scenario brief: There are 4 primary scenarios in miscellaneous purchasing, namely:
Direct charge purchase , GST input taxed (P3), cannot be recovered from ATO
Direct charge purchase, Service – multiple tax code (taxable and non-taxable)
Direct charge purchase, Service – multiple account assignment
Pre-requisites:
Configurations, master data and inter-module integration associated with all process objects including Material movements and Accounts postings should be complete and valid.
Process Flow in SAP:
Direct charge purchase , GST input taxed (P3), cannot be recovered from ATO
Purchase Order is created through a Purchase requisition or directly. The process is similar to process scenarios as described earlier.
However, in the purchase order line item, the tax code should be selected as P3.
The difference lies in Input tax not being recoverable from ATO.
Direct charge purchase, Service – multiple tax code (taxable and non-taxable)
In this scenario, multiple tax codes are used across service activities, of which some may be liable to input tax and some may not be.
The Tax codes are then specifically set for each service activity line of the Purchase order, in the Item details -> Invoice section.
During Invoice verification, the postings will differ for line item subject to Tax and item not subject to Tax
Item with Tax will have following accounting entries
GR/IR A/c Dr, Tax A/c Dr Vendor A/c Cr
Item with no Tax will have following accounting entries
GR/IR A/c Dr Vendor A/c Cr
Direct charge purchase, Service – multiple account assignment
Multiple account assignments could refer to each line of Purchase order being assigned to different account assignment objects (such as K- Cost centre, P- Projects, etc.) or Same item line charges distributed to multiple account assignment objects such as different Cost centres, WBS elements etc.
In SAP Terminology, it’s the latter which is referenced to as multiple account assignment. A pre-requisite to same would be multiple account assignment should be activated in the Purchase order and distribution rule to the various accounts must be set within the Account assignment section of Purchase Order.
During Goods receipt, the consumption posting to the designated consumption objects would be split in the percentage/amount as set within the Purchase order
9.Inventory Management
Scenario brief: As Goods receipt of Stock/non stock items has been detailed in the previous process sections, Goods issue is the other important aspect of Inventory Management. Goods issues are in general carried out against Reservations generated for Stock items planned within Maintenance Orders in ABC process perspective. There could be direct Goods issues to Cost centre/WBS Elements in certain cases.
There could be Goods issues of Finished Goods against Sales Order which are usually through Outbound Delivery and not direct. This has been detailed in one of the previous scenarios (Stock Transport between Plants) in this document.
Goods issues has again been segregated into Normal hour goods issues (using MIGO/MIGO_GR), After Hour Goods issues (using ZMIGO_WO)
Pre-requisites:
All configurations and settings pertaining to Goods movement, Account determination for movement types, Posting periods etc. should have been done.
There should be adequate stock at source storage location to post goods issue (may not be a requisite in case of Negative stock scenario at ABC such as Goods issue against Sales order of Finished products)
Process Flow in SAP:
Normal hour Goods issue
Transactions: MIGO/MIGO_GI/MB11
Movement types: 201 (Goods issue to Cost Centre), 221 (Goods issue to WBS elements), 261 (Goods issue to Maintenance Orders)
Business Transaction (Goods issue), Account Assignment object no. (Order etc.), relevant Movement type should first be entered.
For Goods issue, Item Quantity should be checked, supplying Plant/Storage Location should be checked, Item OK should be ticked, and prior to posting, the Check tab should be clicked to see if everything is OK. If there are any errors, system will issue an error traffic light against the item and its details can be checked by clicking on it. On posting of Goods issue,
Stock A/c Cr Consumption A/c Dr
After hour Goods issue
After hour Goods issues at ABC refers to a custom transaction ZMIGO_WO, which has been developed for Goods issues of spare parts and inventory for Maintenance Orders/Order Reservations primarily. However, as per functionalities available in the transaction, it may also be used for Transfer postings etc.
It is assigned to specific user roles that are designated to carry out after hour Goods issue.
The functionalities of the transaction are otherwise same as per other Goods movement transaction.
