Sunday, January 18, 2009

About the Source List Determination

When we create info & Maintain Quotation, by quota we are determining the source. Also in Vendor Evaluation, we are evaluationg vendor. When we are creating PO, from where the vendor will come from? Is it from Quota or Vendor Evaluation?

You define source list requirements at plant level. If a source list requirement exists, you must maintain the source list for each material before you can order it.

The source list serves:

To define a source of supply as "fixed". Such sources count as preferred sources over a certain period of time. For example, the fixed vendor XXXX for material 100XX is ASA Company for the first quarter and BSB Co. for the second quarter of the year.

Select the plants for which you wish to specify a source list requirement

You use the source list to determine the valid source of supply at a certain point in time.
The source list contains all the sources of supply defined for a material and the periods during which procurement from these sources is possible

Following T/Code activities in Material Management module.

Maintain source list - ME01
Display source list - ME03
Display changes to source list - ME04
Analyze source list - ME06
Reorganize source list - ME07
Generate source list - ME05
Display source list for material- ME0M

you make the system settings that are necessary for purchasing operations carried out using source lists.

Source list requirement for materials, It may be necessary to include possible vendors of a material in the source list before the material can be ordered.

The Source list requirement field in the purchasing data of the material master record indicates whether a source list requirement exists for a material.

You can define the Source list requirement at plant level in IMG. Logistics -->Materials management --> Purchasing --> Source list.

Here you can see the plants for which a source list requirement exists.

What are the Types of Inforecords?

You can create purchasing info records for different procurement types as follows:

Standard, Subcontracting, Pipeline, Consignment 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.

A standard info record contains information for standard purchase orders.
The info records can be created for materials and services with and without master records.

A subcontractor info record contains ordering information for subcontract orders.
For example, if you subcontract the assembly of a component, the subcontractor info record would include the vendor's
(subcontractor's) price for assembling the component.

A pipeline info record contains information on a vendor's commodity that is supplied through a pipeline or pipes
(oil or water) or by similar means (electricity through the mains).
The info record contains the vendor's price for the consumption of such commodities by the buyer
("pipeline withdrawals"). You can store withdrawal/usage prices for different validity periods.

A consignment info record contains information on a material that vendors keep available at their own cost on the orderer's premises.
The info record contains the vendor's price for withdrawals by the orderer from consignment stock.
As in the case of the pipeline info record, you can store prices for different validity periods.

SAP Alternatinve Release code for PR or PO

I have release strategy for PR and PO, suppose there is 3 levels of Release, at second level I want to set an alternative Release code, if either of the employee releases then it should go to third release.
How to configure for PO (with classifications) and PR (without classifications).


To my knowledge you cannot assign two release code for a release level. But you can achieve your requirement that either of the employee releaseas and it goes to third level.
1. In OMGS, under workflow, hope you have assigned S for object and position ID in Agent ID, if not let me
know your assignments

2. In PPOMA, you can assign both employees under the same position.

3. Both employees have authorization to release at this release code.

4. Workflow automatically completes the release and moves to next level if either of the employee releases it.

TC Venkatesan

Workflow is not implemented in our organization. Is there any alternative?


In this case, I am assuming employees use ME28 or so directly to release.

As long as any employee has authorization to that release code, they can release using the release code in ME28 or so, right?

Can you explain more about the procedure they try to release?

TC Venkatesan

We are using ME28 to release the POs. But I am trying to minimise the release codes, if there is any possibility let me know.


I will set out an example below:-
If the release group is G1 and release code is 03 for the level you wish to add alternative releases to then simply get the user who is in control of authorisations in your organisation to add G1 and 03 to user 1 and the same to user 2.

This will alow any one of them to release, without workflow. If you want this can also be set for a validity period in authorisations. Sometimes if a user is away from work and he is the only one to release, then an alternative user may be assigned these codes for a validity period (during the absence of the other user). The system will automatically invalidate him when it reaches the set date.

SAP Procedure to Define Both Currency USD and EURO

I am new to SAP MM. Pls help me. I have one question regarding vendor in purchasing.
We are purchasing export item, export item currency is USD. Some time same vendor send item with different currency like EURO. I'm facing problem when we pay to vendor.
In my Vendor Master Currency is defined as USD. I can pay in USD.
If I want to pay in EURO, again I have to go vendor master and change USD to Euro vice versa.
Everytime I am changing.
Is there any procedure to define both currency USD and EURO.
According to situation I can select currency.
My local currency is different i.e SAR (Saudi Riyal).

This is a common problem in almost all factories in our group. To simply the matters let me explain the method we use with some numbers.

1) Lets say we raise a PO as follows:
2 items @ $10 = $ 20

2) GRN is raised as per PO

3) Invoice comes from the vendor as
2 items @ Euro 0.80 = Euro 1.60

4) What we do is that we check with our purchasing people whether the Euro to $ convertion from the supplier is beneficial to us, if not it is within our tolerance levels.
Then we process the payment for $ but mention the correct EURO amount in narration. Bank instructions goes for EURO and there will be a Exchange diff entry to the bank rec at the month end.

5) As far as I know you can't maintain multi currency in the vendor master.

6) Another effective method we are adopting is to have two vendor accounts for different currencies.

SAP Language Error when creating Purchase Order

This happens when the language in Material Master (MM02 - Purchase Order Text) and Vendor Master (XD02 - Address - Communication - Language) does not matched.

In the Purchase Order, you can see the language in PO Header - Communications data - Language.

If the Purchase Order have been saved before you change the Vendor Master Language, the PO need to be closed as the language in the PO Header cannot be changed.

This is the SAP Language Error that will appear when creating PO with language mis-matched:

No short text maintained in language CS (please re-maintain material ABCDEFGHIJK)
Message no. ME 095

No material short text (short description) has been maintained in language CS.

System Response
No short text can be adopted from the material master record.

If a material is to be procured from a vendor in a different language, the material short text must first be maintained in this language.

Maintain the short texts in the material master record in those languages in which procurement is normally carried out. In this case, you should at least maintain the short text in language CS.

SAP Handling differences in Purchase Order, Goods Receipts and Vendor Invoice Prices

What is the procedure to adopt in case of the following situations when they arise? (FOR SAP 4.6C version)

First situation

b) The item is goods receipted with a price of US$110. Assume the difference of US$10 is because of tax caluculated by the system (for example)

c) Vendors sends an Invoice for this item at the price of US$85 (US$80 PO line item price + US$5 tax).

So in this case, the Invoice price is lower than the PO net price which is US$100.
So for this type of situation what is the procedure to adopt to post the invoice in the system.
Is it that the first the goods receipt needs to be reversed and then change or update the PO line item net price with US$80(for example) and then do the goods receipts and then do the invoice receipt?

If this procedure is correct and what happens if vendors invoice price is lower than the origianl PO line item net price (as described in this case), whether the system blocks the invoice in this case or not?

Or is it that the goods receipt need not be reversed and just post the invoice with the new price and change the PO price with the new vendor invocied price?

When is that the price in the info record needs to be changed?

Second situation
2) What is the procedure to adopt when the vendor's invoice price is greater than PO line item price?

Basically, I am just looking for the correct procedures to adopt in both of these cases like in what sequences,(like what is the first step and what is the second step) with what steps to follow.

What to do procedurally - how to post an invoice with differing value than PO and/or GR and what to do if an invoice blocks, etc in both the cases like when the vendor invoice price is less than the PO price (line item net price plus tax) and one more, I need to know is in this case will the invoice gets blocked upon invoice posting when the vendor price is low.

Similarly in the second case what to do procedurally when the invoice price is more than the PO price (Line item net price +tax)?

Whatever tolerances you have set for over or under invoice will determine if any blocks occur (this covers both your first and second examples). (Transaction code: OMR6)

When the clerk enters the invoice the system will note that the invoice is going to block but will not stop it from being posted. (Transaction: MIRO)

Procedurally, the buyer checks blocked invoices and resolves the block be either:

1. Changing the PO price to match the invoice and then the invoice should unblock (either automatically if you have it set up that way, or the buyer can release the block) or

2. Buyer can dump the block without changing the PO price (info record price history is not updated in this case because PO price wasn't changed).

In either case, if you have your materials being valuated at GR and then at IR, the invoice will revalue the material so there is not really a need to reverse the GR to change the PO price and then reenter the GR.

The transaction code for viewing blocked invoices (and releasing them) is MRBR.

SAP Steps for MM Pricing Procedures

Can anyone please help me on the Pricing Procedures?
I have read it many times but fail to understand.

Pricing Procedure :

In MM module, pricing procedure is used during RFQ and PO creation. Total value of material based on all addition and subtraction like discount, surcharge, tax, freight, etc. In this we are defining pricing procedure and linking to vendor and purchase department through the virtual schemas.

Following steps for pricing procedure as,
1. Define conditions.
2. Define pricing procedure.
3. Define virtual purchase organization and vendor.
4. Info Record.

Customization for Pricing Procedure :
1. Definition of Conditions :
/NMEK0---condition type…condition types--- definition (define for basic price, net price, discount, surcharge, tax etc.)

2. Defining pricing procedure :
/NMEK0--- calculation schema---calculation schemas—New entries (Define procedure and put the conditions like formula so that final price will be net price / total value as per company requirement)

3. Linking pricing procedure to independent condition types.
/NMEK0---condition type…condition types--- definition for position for defined conditions (Enter the defined pricing procedure in the each independent conditions “Pricing Procedure” box)

4. Defining Schema group for Vendor :
/NMEK0--- calculation schema---schema groups—vendor—New Entries.

5. Defining Schema group for Purchase Organization--- New entries.
/NMEK0--- calculation schema--- schema groups---- purchasing organization--- new entries.

6. Linking Virtual Purchase Organization to actual Purchase Organization.
/NMEK0--- calculation schema--- schema groups----- Assign P.Org. (in actual P.Org, enter virtual P.Org)

7. Linking Pricing procedure to virtual P.Org and virtual vendor :
/NMEK0--- calculation schema--- Determine Schema--- -Standard --- New entries (Enter virtual schema and P.Org. along with pricing procedure)

8. Linking virtual vendor to actual vendor-- /NXK02 then enter schema group vendor in Purchasing Data )

9. Info Records (/NME11)---- click on “Purch. Org. data1” and enter condition types and pricing procedure


What are the steps in pricing determination in MM? Condition, Access sequence and schema.

In the SAP MM Pricing is more important. Just yesterday I have completed the Pricing as I am doing the SAPMM now. I can give some light on this Topic, not 100%. After 2 days definitely some more I can share.

The Basic thing is Condition Technique. In which there are
1. Access Sequence 2. Condition Record 3. Condition Type 4. Condition Table.

A Access Sequence access a Condition Record of a Condition Type in a Condition Table is a Condition Technique.This is a simple logic

Here the Condition Type is very important like PB00, PBXX,RA01 etc.

In the background every Condition Type has its own defition means the purpose of the Condition Type like, is it for Pricing or Percentage, Quntity base, Accrual Feilds etc is to be defined to work this functions.

Normally we use the existing ones without any risk. But some cases, we have to Create a New Condition Types as per the organisation requirement.

The Pricing Schema is useful to minimise condition types while mention prices for Vendor on the basis of Pricing Schema which we defined according to organisation requirement.

The Pricing Schema means the calculations procedure of Condition Type.

Ex. RA01 - Discoount % is caclulated on PB00 - Gross Price means
RA01 is based on PB00 like that we have to define in the Pricing Schema
which makes easy to use in realtime.
Here PB00 has the Access Sequence - 0002.
But RA01 does not have the Access Sequence.Why because it is a dependent on PB00. But both are Condition Types.

In the system, by default some standard Scheme will be there at Vendor Schema Group in the Vendor Master Screen means the standard one is assigned which is very lengthy which may fullfil our requirement. But some cases which may not fullfil our requirement, in such we have to define.

For the configuration, I may not able to explain properly through here but will give some Idea.

Configuration: SPRO-IMG-Material Management- Purchasing- Conditions-Define Price Deternmination Process
1. Define Access Sequence
2. Define Condition Type
3. Defince Calculation Schema:- Here you have to define the Schema
Define Schema group
1. Define Schema Group vendor
2. Define Pricing Schema group
3. Schema group for Purchase Organisation
4. Assign Schema group to Purchase Organisation

Define Schema determination
1.define calculation schema for Standard purchase organisation

After completion of the Schema Group, we have to assign it to Vendors.
Then whenever we use any transaction with this Vendor, the concerned Schema will work as configured by us.

I think this will help you. Actually the Pricing is a vast. Becuase each Condition have its own importance and each Access Sequence have its own importance. So you need not bother about this. First you learn how to define the Calculation Schema through the above.

Here we can create many Calculation Schemas which can assign one schema to Local vendors
another schema to out side vendor one more schema to foreign vendors like that we can classify.

Definitely it will help you something. Because I have to do R & D on this Topic. Due to lack of time I am not able to do the Practice Properly as I am doing non-related SAPMM job.

SAP Goods Receipts for PO does not contain any items

When you try to post a GR against any PO it says that the PO does not contain any items.
But when you display the PO it shows the items in it.

There have been several reasons which can be attributable to this problem -

1) This PO is subject to release strategy and since the final release was not made, this PO is considered as 'blocked'.

2) You have been using the confirmation control category where in respect of the last confirmation category key, the GR assignment checkbox is flagged. In this particular case, GR is only be posted if the confirmation is not maintained.

3) Early delivery date ie. the GR date is coming earlier than the PO delivery date.

One other nasty thing might have happened (mostly in MIGO):

You have accidently changed your default movement type from 101 to 102 during your last movement.
You will experienced this in some cases before installing hotpackage which shows the movement type on the MIGO screen.

SAP MM Purchase Order Account Assignment For Service Items

Can someone please explain on how the account assignment is done for service items which are "texts" unlike materials?

The concept of account assignment remains same whether for materials with Mat. No. Or only text.

If you are purchasing a particular service for a cost center. then you can assign the PO item to Cost Center & so on.....

Use the following Customizing Path:

Material Management
-> Purchasing
-> Material Master
-> Entry Aids For Items Without a Material Master.

Create the Material Groups and the Valuation Classes you are going to assign to the 'text services'. In the moment of a Purchase order, put the text services and assign them the material groups which you created for them. In that moment, the account assignment that you customized will appear into the purchase order.

How to make systematic service purchase order?

1. First you need to create a PO with Item category as 'D' -- T Code: ME21N

2. You need to create the Service Master Record T Code: AC03

3. In the PO, Services tab, you need to mention the Services you are expecting from the vendor, quantity, price.

4. Need to mention the Validity start and end period in the PO Header.

5. Once after accepting ther services from the vendor, based on the Vendor invoice you need to enter the service entry sheet aganist the PO. T code: ML81N

6. Invoice Verification based on the PO. (this will pick information from the Service entry sheet)

7. Payment Processing

SAP MM Purchase Order Fields Relevant to Printouts of Changes

You can define whether and in which purchasing documents a field is relevant to printouts of changes or which texts are included in change notices.

The text output can be controlled via a text number (direct assignment) or a routine (indirect assignment).

This is done in transaction SM30 - T166C

Text number define in transaction OMF6

If you wish to define further fields as relevant to change notices, you must carry out the following activities:

1. Enter the table and field names

2. Select the document categories for which the field is to be relevant to change notices.

3. Assign a text number or routine

If you have specified your own routine, you can evaluate it in the user exit

No output on PO changes

----Original Message-----
Subject: No output on PO changes
From: Norman Chan


Anyone can advise how to make no output after changing PO. On SAP standard, whenever we change the PO, the change output will be created. However, we don't need that changes output, and we cannot find out how to customize it in IMG. Any suggestion? Thanks.


-----Reply Message-----
Subject: Re: No output on PO changes - Reply
From: Norman Chan

Yes, but the consequent problem is the system will give you the warning message that there is message come out ' No message record could be found for output of message.' The condition table is 'order type/purchasing org.'.



-----Reply Message-----
Subject: No output on PO changes - Reply
From: Ron Greenfield

Transaction OMQN, "Fine-Tuned Message Control, Purchasing". Delete the entry for operation "2" (Change) for your purchase order condition type.


-----End of Reply Message-----

Tuesday, January 13, 2009

Type of Changes Generally After Release of PO

What is an Amendment in PO and how it is done?

What type of changes generally comes after release of a PO?

Once a purchase order is released, the vendor is required to execute the order as per terms of order as defined in it.

However at times it is seen that there could be changes which might have taken place after the PO was released. This could be both from from Vendor side as well as the buyer side. Some typical changes could be :

Buyer side :

1. The qty ordered need to be increased.
2. The buyer need the material earlier than the delivery date specified.
3. The payment term need changes as buyer is not able to provide certain documents.
4. Buyer would like to add some more conditions.
5. The description need some additional information etc.

Vendor side :

1. The price no more valid as the order was released after the quotation validity expired.
2. The vendor is facing shortage of raw material and he wants the delivery schedule to be changed.
3. Vendor is offering some alternate materials or different make.
4. The payment term is no more acceptable as the prices have been revised. etc, etc...

In all such cases fresh communications are exchanged between the two parties and changes are made as per mutually agreed terms. In SAP the changes like qty, price, delivery date, payment term, pricing conditions etc can be tracked as changes in the document.

SAP does not have PO amendment but some companies are developing different layout for their orders based on above changes.

Steps to take in order to force-close PO

There are two ways to force close a PO:

1. You can set Delivery Completed Indicator in Purchase Order or at time of doing goods receipt. That simply means you cannot do further GR for that item. You can still process Open Invoices .

2. You can block material at purchase order level which means, you will not be able to do any GR , Invoice against that specific item in PO.

The recommended is the first option though.

Second option is used in case of : -

1. to cancel an item
2. An item is closed and can be archived

SAP Get Last PO Price / Default PR Price

Prompt the last Purchase Order Price for the Material

If you want the system to take the price from the last Purchase Order, then do not maintain the conditions in the info record because it has precedence over the last PO. This means that the netprice field in the info record should be left blank.

In the case when you have already maintained the conditions in the info record (or netprice), try to delete them or make them invalid by changing the validity date.

Even though no price was maintained, the info record will still keep track of the Order price history.

To check the Order price history, go into the material info record and click Environment -> Order price history

Problem printing your Purchase Order

If you got this printing log message :-

No print-relevant changes to document 9912345678 exist

Message no. ME 140

Execute this program RSNAST0F in SA38 to do the printing.

Object key : Your Purchase Order Number

Output type : NEU

Transmission medium : 1

Output application : EF

SAP - What is Purchasing Value Key


Purchasing Value Key is useful for setting reminder for the material you can find in material master in Purchasing view.

Purchasing value key determines the following things:

1) Reminders keys- There are 3 keys which determine in how many days before or after the vendor has to be reminded or urging letters for the material procurement.

2) Over and under deliveries tolerances.

3) Order acknowlegdement requirements in PO.

It gives all the conditons in which the procurement is made. You can have different purchasing value keys which has to be customized in IMG - MM - Purchasing - MM - Define Purchasing Value Keys.

To make it much more clear, Purchasing value key decides the following fields:

Control Sender Address when Sending PO

PO by e-mail: how to control sender address
My PO's are now being send by e-mail. Unfortuntely, it seems impossible to control the sender of the e-mail; When the timing is on '4', the sender will be the employee who did the final release, when on '1', the sender will be the user who schedules the RSNASTOO job. I want the user who created the PO to be the sender of the PO.

The following may help you solve your problem.

I am using the following in my PO Sapscript

= ,,,, &'Created by: 'W_USER_EMAIL&

and the following in PROGRAM ZVENDOR_FAX_EMAIL

out_tab structure itcsy.

data: L_user like USR21-BNAME.
data: L_persno like usr21-persnumber.
data: L_user_email like ADR6-SMTP_ADDR.

* gets User name
L_user = IN_TAB-value.

* read user master
Select single PERSNUMBER from usr21 into L_persno
where bname EQ L_user.
*e-mail found
if sy-subrc eq 0 and L_persno ne space.
select smtp_addr from adr6 into L_user_email
up to 1 rows
where persnumber eq L_persno
and date_from le sy-datum.
if sy-subrc eq 0 and L_user_email ne space.

read table out_tab with key 'W_USER_EMAIL'.
if sy-subrc eq 0.
move L_user_email to out_tab-value.
modify out_tab index sy-tabix.
endform. "GET_USER_EMAIL

External Send - Sending PO by email

In order to send PO, your Basis team must configure the system first so that external email can be send out from SAP. If it is not configured, no settings you do on MM will work.

1. You must maintain email address in vendor master data.

2. The same applies to your user master data. For the output type for default values, a communication strategy needs
to be maintained in the Customizing that supports the e-mail. You can find the definition of the communication strategy in the
Customizing via the following path:

(SPRO -> IMG -> SAP Web Application Server -> Basic Services -> Message Control -> Define Communication Strategy).

As a default, communication strategy CS01 is delivered. This already contains the necessary entry for the external communication. Bear in mind that without a suitable communication strategy it is not possible to communicate with a partner via Medium 5 (external sending).

3. Use the standard SAP environment (program 'SAPFM06P', FORM routine 'ENTRY_NEU' and form 'MEDRUCK') as the processing routines.

4. In the condition records for the output type (for example, Transaction MN04), use medium '5' (External send).

5. You can use Transaction SCOT to trigger the output manually. The prerequisite for a correct sending is that the node is set correctly. This is not described here, but it must have already been carried out.

6. To be able to display, for example, the e-mail in Outlook, enter PDF as the format in the node.

GR-Non Valuated Indicator for SAP Purchasing

If this indicator is ticked in the Purchase Order, then no financial posting is made at the time of posting a Goods

The only posting would occur on Invoice Receipt.

It is commonly used for purchasing of fixed assets, because in most countries you do not post
the acquisition until you have the legal back-up in the form of the supplier's invoice.

Also, it is not desirable to post an estimated value (based on the GR) plus a correction
(based on the IR).

Whether should you used non-valuated Goods Receipts or not would certainly depends on your
company's financial policies.

Restrict GR before Delivery Date

I want to restrict that vendor supplies goods before the delivery date written on PO .i.e. system should give some error if goods are supplied before the scheduled delivery date mentioned in PO.

One way is to check data at your MIGO entry, is through SAP enhancments (Tcode : cmod).
I have implemented numerous checks for my end users (posting dates, movement types vs material types, mandatory fields under specific conditions, posting date deviation from today, total consumption per order etc).

Try enhancment MBCF0002 and component EXIT_SAPMM07M_001.

Through tcode SMOD you can find the available enhancments and function modules, go through the documentation and choose one. For MM inventory management the package is MB.

My system (4.7) returns the following list:

Exit name Short text
MB_CF001 Customer Function Exit in the Case of Updating a Mat. D
MBCF0002 Customer function exit: Segment text in material doc. i
MBCF0005 Material document item for goods receipt/issue slip
MBCF0006 Customer function for WBS element
MBCF0007 Customer function exit: Updating a reservation
MBCF0009 Filling the storage location field
MBCF0010 Customer exit: Create reservation BAPI_RESERVATION_CREA
MBCF0011 Read from RESB and RKPF for print list in MB26

With tcode CMOD create a project "Zxxx" and insert the choosen enhancement. Automatically its components will be added to your project.

Press the "Compoents" button and double click the function exit that you will change.

Now you should be looking at the source code of the function (abap editor). Take a look of the available internal tables that are imported.

Double click on the include ZX....... which does not exist and it will be created by you.

Add the source code needed to cover your validations.

Save and activate your project

Execute MIGO and check your enhancement.

Note: one problem I still haven't solved. I can use only ERROR messages not WARNINGS.

SAP Accounting Entries for a Subcontract Order

You check an invoice for a subcontract order in the same way as for a standard purchase order.

Additional account postings do, however, occur if a price variance has occurred. These postings are shown in the following example :-

Postings for a Subcontract Order
In this example, a subcontract order was created for the end product "ASSEM-1". The components COMP-1 and COMP-2 were provided to the subcontractor.

Purchase Order
50 pieces of material ASSEM-1 were ordered. The subcontract price is $10/piece (total value = $500).

The following components were provided to the subcontractor:

15 kg of the component COMP-1
5 pcs of the component COMP-2

Good Receipt
The subcontractor delivers 50 pieces of material ASSEM-1.
At goods receipt a consumption posting for the components provided to the subcontractor is automatically made. It is valuated at the price from the material master record, for example:

15 kg of the component COMP-1 at $20/kg = $300
5 pcs of the component COMP-2 at $30/pc = $150

The goods receipt is valuated with $950. This is calculated as follows:
the subcontract price (50 pcs * $10/pc = $500) and
value of the components ($300 + $150).

Invoice Receipt
The vendor (subcontractor) sends you an invoice for the subcontract work. However, the price is $10.50/pc. The invoice is, therefore, 50 pieces ASSEM-1 * $10.50/pc = $525.

Posting Schema for Moving Average Price Control
In this example, the following postings are made at goods receipt and invoice receipt, if the material (end product) is valuated at moving average price:

At goods receipt
At invoice receipt

Vendor account
525 -

GR/IR clearing account
500 -
500 +

External service account
500 +
25 +

Stock account: end product
950 +
25 +

Stock change
950 -
25 -

Stock account: comp.
450 -

Consumption account
450 +

Posting Schema for Standard Price Control Without Price Differences
For materials (end products) with standard price control also note that no price differences are posted if the total of the external service value (for example, $500) plus the "material to be provided" value (for example, $450) varies from the value at standard price (for example, $1000). Posting of a price difference is not required because each posting line has its own
offsetting entry.

No posting lines are created on the stock account or on the stock change account when an invoice is received.

In the above example, the following postings are made for a material with a standard price of $20:

At goods receipt
At invoice receipt

Vendor account
525 -

GR/IR clearing account
500 -
500 +

External service account
500 +
25 +

Stock account: end product
1000 +

Stock change
1000 -

Stock account: comp.
450 -

Consumption account
450 +

Posting Schema for Standard Price Control With Price Differences.
However, if you wish to generate a price difference posting in those cases where the manufactured material is managed at standard price and the standard price varies from the receipt value (externally performed service + value of components + delivery costs), you can configure this in the Customizing system of Inventory Management.

In the above example, the following postings (including price differences) are made for a material with a standard price of $20:

At goods receipt
At invoice receipt

Vendor account
525 -

GR/IR clearing account
500 -
500 +

External service account
500 +
25 +

Stock account: end product
1000 +

Stock change
950 -

Price difference
50 +

Stock account: comp.
450 -

Consumption account
450 +

SAP Increase number of line items in Purchase Order

If you experienced a Purchase Order getting cancelled because the message said it was too long.

In situation where you need to create a Purchase Order of at least 200 lines, you need to discuss with your Basis team to look at SM12 and verify the enque/table_size parameter and increase this value in order to permit more records in lock situation when you are creating your Purchase Order.

SAP Increase number of line items in Purchase Order

If you experienced a Purchase Order getting cancelled because the message said it was too long.

In situation where you need to create a Purchase Order of at least 200 lines, you need to discuss with your Basis team to look at SM12 and verify the enque/table_size parameter and increase this value in order to permit more records in lock situation when you are creating your Purchase Order.

No Multiple Account Assignment for PO

No Multiple Account Assignment for Blanket PO

As of release 4.6x, SAP does not allow multiple account assignment for blanket Purchase Order on the same Purchase Order line. (Item Category - B - Blanket item)

To get around the constraints, users could enter a second line item and assign a different account assignment.

Things might get messy if the person doing the releases selects the wrong line item


if the Goods Receipts was received under the wrong line item.

This becomes a training issue, but it can be done.

Multiple Account Assignment In Purchase Order

I've found something about multiple account assingment. If i have multiple assignment i can't have valued receipt, but if i desable the flag i have no message.
When you are having the multiple account assignment, then the system will force you to have GR-non valuated indicator being flagged which results in the fact there is not any FI document at GR posting stage and this is the standard feature of SAP.

Can I set a material to force to enable GR indicator and force to disable GR indicator?
No, not at all. The disability of GR indicator can be set in OME9 with account assignment category.

We have an unusual situation relative to accounts payable invoice entry.

Our users create a requisition and subsequent PO (using requisition release strategies) with a single account assignment category. They cannot use multiple account assignment category distribution because they cannot have non-valuated goods receipts. They purchase services, primarily.

There are multiple occasions when the invoice for the service arrives that they need to change the account assignment to include either multiple objects within an account assignment category or distribute the costs among multiple account assignment categories, as in one or more cost centers and one or more internal orders. They wish to do this all on the same line item at goods receipt or invoice entry, rather than modifying the purchase order.
It’s not possible to do this at goods receipt as the screen layout for goods receipt to PO cannot be modified. There is account assignment distribution on the invoice entry screen (MIRO), but the purchase order cannot be referenced in that case.

Has anyone encountered this requirement and, if so, how was it handled?
There are two preconditions that must be fulfilled -

1) Go to transaction OME9 and flag on the 'IR changeability' indicator of the account assignment category 'K' (since this is for services).
2) When maintaining your PO, make sure that the GR-non-valuated indicator is flagged.

When GR is posted, no accounting document will be generated. This accounting document will be created during IR posting where A/P can manually modify the accounting data as their wish.

Is there a way to configure in MM where PO line items can have multiple account assignments and still create accounting entries when posted during Goods Receipt in MB01? Currently, I can't assign multiple accounting entries to PO line item unless indicated as GR non-valuated. If GR non-valuated, no accounting entries will be created during Goods Receipt, entries will be created only during IV.
In fact, it is possible to maintain multiple account assignment for each and every PO line item by selecting the 'Multiple Account Assignment' button in the 'Account Assignment' View of the Item Detail of PO. However, for such multiple account assignment selection, no accounting document will be generated upon GR maintenance. This can only be done during IR via LIV process.

From the accounting point of view, for one particular single line item, it is possible to split into different cost centers or internal orders. For instance, I have ordered 10 pcs of bearings of which 4 will be charged to Cost Center A and the remaining 6 pcs will be posted to cost center B. However, it is of SAP standard feature that once using the multiple-account assignment, no accounting document will be generated after GR posting. They will only be posted when IR is maintained.

What is Request for Quotation

1) What is RFQ??

2) What way it helps Industry??

3) How can it be linked to PR?

4) Relevant Transaction codes??

1) RFQ - Request for Quotation.

It is the initial step in a vendor selection process. The business sends out RFQ to the vendors and the vendors respond back with Quotations with prices. Next step is quotation evaluation followed by issue of a purchase order for the material/services needed.

Sometimes in certain business processes - A purchase requisition for new material services starts the process of RFQ.

Before creating purchasing documents you should ensure that a master record exists in SAP for both the vendor and delivery address. T/Code ME41 Create an RFQ.

Before creating an RFQ, you should consider the following:

Vendors: Do you have a list of suitable vendors for the RFQ? The vendor numbers must be available.

Deadlines: What are the important deadlines for bidding, if any (for example, the deadline for submission of quotations)?

Number assignment: If your company uses external number assignment, then you need an RFQ number that falls within the valid number range.

Collective number: We recommend that you assign the RFQ a collective number. You enter this number once, and the system copies it for each RFQ you create within a competitive bidding process. The collective number enables you to track all RFQs for a given competitive bidding process. The number can be alphanumeric and up to 10 characters long. You enter it in the header data of the RFQ.

2) This process will help for Industries to choose right Vendor with compare the prices from all quotations received as a result of a competitive bidding process using the price comparison list . The comparison list ranks the quotations by item from lowest to highest price.

3) You can create an RFQ from a requisition automatically. To do so, you must earmark requisitions for RFQ processing.

4) Relevant transactions:
ME41 SAPMM06E Create Request For Quotation
ME42 SAPMM06E Change Request For Quotation
ME43 SAPMM06E Display Request For Quotation
ME44 SAPMM06E Maintain RFQ Supplement
ME45 RM06EF00 Release RFQ
ME47 SAPMM06E Create Quotation
ME48 SAPMM06E Display Quotation
ME49 RM06EPS0 Price Comparison List

Purchasing Configuration Tips and Tricks

Goods Receipts/Invoice Receipts for Purchase Order

Transaction OMW1 allows you to set whether the Price Control is a mandatory "S" or "V".

V indicate that you want the system to value the stocks with the latest price.
S indicate that you want the system to value the stocks with a fixed price method.

Price Control V - Moving Average Price

Assume Material Master current price is 10

Goods Receipts for Purchase Order - Movement Type 101

  • Material Document Posting created - inventory increases
  • Accounting Document Posting created
    • Debit 12345 Inventory 12
    • Credit 67890 GR/IR 12
    • New Moving Average Price = ( GR value + Total value ) / ( GR quantity + Total stock )
Invoice Recipts for Purchase Order - MR01
  • Accounting Document Posting created
    • Debit 67890 GR/IR 12
    • Debit 12345 Inventory 3
    • Credit 45678 Vendor 15
    • New Moving Average Price = ( Inventory difference of 2 + Total value ) / ( Total Stock)
Price Control S - Standard Price

Material and Accounting Document is the same.
The one with the lower value will be posted with a price variance entry.

Goods Receipts for Purchase Order - Movement Type 101

  • Material Document Posting created - inventory increases
  • Accounting Document Posting created
    • Debit 12345 Inventory 10
    • Debit 23456 Price Variance 2
    • Credit 67890 GR/IR 12
    • No change in Standard Price
Invoice Recipts for Purchase Order - MR01
  • Accounting Document Posting created
    • Debit 67890 GR/IR 12
    • Debit 23456 Price Variance 3
    • Credit 45678 Vendor 15
    • No change in Standard Price
General Ledger Account Configuration
Transaction OMWB - Automatic posting for inventory
Inventory posting BSX
Goods receipt/inv.receipt clearing acct WRX
Cost (price) differences PRD
Transaction XK03 - Account Payable Vendor Master
Tick Accounting info. and hit the Enter key
Field name Reconcil.acct 45678

Vendor Returns Without PO Reference

You can used Return Purchase Order, transaction code ME21N

At the item details, look for the Return columns and tick it.

MIGO_GR - Goods Receipt for Return Purchase Order
Movement type will be 161 to deduct the stock and 162 for reversal.
During Goods Receipt for Return Purchase Order, you do not have to change the movement type from 101 to 161 as the system will automatically assign the movement type to 161 upon saving the postings. However, before saving, check if there is a tick in the Return Column to ensure that it is a return Purchase Order.

Create a new Purchase Order Number range to differentiate
OMH6 - Define Number Ranges

Create a new Purchase Order Type to differentiate e.g ZB
OMEC - Define Document Type

Changing the PO Layout sets
OMFE - Messages: Output Programs

/: IF &EKKO-BSART& = 'ZB'.

Purchasing List for Open Purchase Order, Goods Receipt, Invoices

Open Purchase Order = Open Goods Receipts ( Selection parameters WE101)

This two parameters determined what information is shown:

  • selection parameter
  • scope-of-list parameter
The configuation transaction code is OMEM
You can define additonal selection parameter for your users as well as untick those fields which you does not want it to be printed.

Your can have the Purchasing Documents by :-

  • ME2L - Vendor
  • ME2M - Material
  • ML93 - Service
  • ME2K - Account Assignment
  • ME2C - Material Group
  • ME2B - Requirement Tracking Number
  • ME2N - Purchase Order Number

  • ME2W - Supplying Plant
Force buyers to create Purchase Order with ref. to a Pur. Req., Quotation or Pur. Ord.
Transaction OMET
  • Create a new entry, give it a name and tick :-
    • Ref. to PReq
    • Ref. to P.O.
    • Ref. to quotation
  • Next, you've got to associate via SU01
    • Click Parameters, insert a new parameter id EFB to the authorization code.
    • Type in Parameters value you want e.g. XX
    • You have to assign the control for ALL the SAP buyers via thier SAP users id.

    • Logoff and login again. Then try to create a Purchase Order without a reference.
Define default values for buyers
Transaction OMFI
  • Double click on the default values you want to change.
  • Save it.
  • Next, you've got to associate via SU01
    • Click Parameters, insert a new parameter id EVO to the authorization code.
    • Type in Parameters value you want e.g. 01
    • You have to assign the control for ALL the SAP buyers via thier SAP users id.
    • Logoff and login again. Then try to create a Purchase Order and check the default values.
In the Fast Processing button :-
    you can choose whether to adopt automatically all the line items fields in the Purchaes Requisitions
Puchase Order Condition
Suppose you want to calculate the GST and DISCOUNT for a Net Value of 1000.
Net value 1000
GST 10% of 1000 100
DISCOUNT 10% of 1000 100

Final Net value 900

This is what you do :-

  • M/08 - Define calculation schema
  • First check the conditions column Steps e.g. PB00 and PBXX belongs to step 1.
  • Next check the last Steps after Actual Price
  • Now, look at the column Fro To
  • If you want the DISCOUNT to be calculated based on 1000, put the Steps number in the column Fro

  • The Fro To controls the calculation.
Information Structure
In the SAP standard info structure S012 is updated by the Purchase Order creation date, not the Goods Receipt date. e.g. a Purchase Order is created in January and good receipt is in February and March, S012 will shows the values in period January.
  • Transaction MC26
  • Info structure S012 Update group (stats) SAP
  • Double click on Goods received qty

  • In the section Date field for period determination
Purchase Order Layout Sets, Message Types
Create a new message types for a different layout of Purchase Order
  • M/34 - Maintain message types
    • Click the Partner definition button
    • Insert the new message type to the Partner
  • OMQN - Fined-tuned Message Control
    • Add a new Printer Operation 1 - New 2 - Change
  • OMFE - Layout sets for Purchase Order
    • Attach the new message type to the new layout sets
  • M/36 - Maintain message detemination schema : Purchase Order
  • OMQS - Assign schema to Purchase Order
  • OMGF - Assign Output devices to Purchasing Groups

  • MN05 - Assign default Message Type to Purchasing Groups
User Defaults for Purchase Order
There are some fields which you can set as defaults for the buyer in transaction ME21.

Transaction SU01
Input the user name and click Parameters

PID Parameter value
LIF - Vendor number
BES - Purchase Order Number
BSA - Order type
EKG - Purchasing group
EKO - Purchasing organization
WRK - Plant
LAG - Storage location
MKL - Material group
WAK - Promotion

PO Release Strategy


The release code is a two-character ID allowing a person to release (clear, or approve) a requisition or an external purchasing document. The release codes is basically controlled via a system of authorizations (authorization object M_EINK_FRG).

Use SE12, structure CEKKO to check all the fields available for controlling the Purchase Order.

e.g. If the total value for the Purchase Order exceeds 10,000, release strategy 01 is assigned to the Purchase Order. There is only one characteristic created in this example. For controlling the Purchase Order type, create characteristic for CEKKO-BSTYP and the value NB.

CT04 - Create Characteristic e.g. NETVALUE

Click Additional data Table name CEKKO Field name GNETW and press enter
(for currency dependent field, you are prompt to enter the currency which the system then converts the currency of the Purchasing document into this currency)

In the Basic data (X refers to tick),
X Mutliple values
X Interval values

In the Value data, in the Char. value column, type >10000 and press enter

Save your data

CL02 - Class

Class - Create REL_PUR

Class type - 032

Click Create

Description - Release Procedure for Purchase Order

In the Same Classification section, click Check with error

In the Char. (characteristic) tab, type NETVALUE to assign your characteristics to the class

OMGS - Define Release Procedure for Purchase Order Type

Release Group - New entries Rel. Object Class Description
02 REL_PUR Rel. Strategy for PO

Release codes - New entries
Grp Code
02 01

Release indicators
Release indicators Release Description
0 Blocked
1 X Release

Release Strategy
Release group 02

Rel.strategy 01

Release codes 01

Release status 0

Classification Choose your check values

OMGSCK - Check Release Strategies
(make sure there are no error messages)

Once the Purchase Order is not release, buyers will not be able to print the Purchase Order.

Goods Receipts will be shown with Message no. ME 390 - Purchasing document XXXXXXX not yet released.

In 4.6c, Purchase Order with Release Strategy have a tabs at the end of the Header. This allowed the buyers to check the release status of the Purchase Order.

The person with the release authorization have to use ME28 to release the Purchase Order.

Prompt the last Purchase Order Price for the Material

If you want the system to take the price from the last Purchase Order, then do not maintain the conditions in the info record because it has precedence over the last PO. This means that the netprice field in the info record should be left blank.

In the case when you have already maintained the conditions in the info record (or netprice), try to delete them or make them invalid by changing the validity date.

Even though no price was maintained, the info record will still keep track of the Order price history.

To check the Order price history, go into the material info record and click Environment -> Order price history

Adopt Purchase Order Header Text

To default the Header Text into the Purchase Order

Step 1 :- Maintain text in Vendor Master

  • MK02 - Change Vendor
  • Choose Extras -> Texts - Input the text in Purchasing memo
Step 2 :- Link Text types to Header text in Purchase Order
  • OMFV - Define rules for copying (adoption of) text
  • Choose Header Text
  • Choose Goto -> Linkage: text types -> To vendor
  • Filled in the field No. (e.g. 01 - Header Text), next tick whether you want the text to be adopted or for displayed only
  • Choose Update to save
Create a new Purchase Order Document Type

If you have more than one company code, you might want to define a new document type and number range to differentiate between the two company.

Define a new number range not in used
OMH6 - Number Ranges for Purchasing Documents

Copy the NB - Standard PO to e.g. ZB
OMEC - Define Document types

Maintain :
Text for Document Header/Item
Text for Document Supplement
OMF6 - Messages Header Texts

Send Purchase Order via Output Determination

Read note 191470 - Purchase order as an e-mail

From release 4.5, you can send your purchase order via output determination. This note have indicate all the requirement and settings necessary to send purchase order via the output determination once your SAP have been connected to an External Mail System.

Send Purchase Order with Microsoft Outlook

This is how it work:-

  • First you send the text converted Purchase Order to your SAPoffice
    • Sample ABAP program for sending mail to your SAPoffice
  • Then from Microsoft Outlook, you can send it out externally to your Vendor
Install the SAP setup program on the SAP Presentation CD-ROM under \GUI\WINDOWS\WIN32
Execute the SAPsetup program and choose the Desktop Interfaces.
Then choose the SAP MAPI Service Provider (select Change Options to display the selection)

Once the SAP MAPI is installed. You can create your logon profile for SAPoffice.
Go into your Control Panel of your windows.
Select the Mail option from the Control Panel to call the MAPI profile manager.
Choose Add to call up the new logon profile setup wizard
Select Add from the Services and select the SAP MAPI Service Provider
Type in the required R/3 information (client, sap user name, password)
The supplied PST file is sapwrk.pst

Now, logon to your Microsoft Outlook and see whether you can access all your SAPoffice folders.

If you send the file using SP01 -> System -> List -> Send, the file will have the extension ALI. Use the Windows Explorer to default open with the Windows Notepad.

Sending mail directly from SAP via Microsoft Exchange

If you want to send your mail directly via Microsoft Exchange, you have to install the SAP Exchange Connector Software on your Microsoft Exchange Server.

The setup program SETUP.EXE is located on the R/3 Presentation CD in the directory :\GUI\WINDOWS\WIN32\SXC.

Then you have to setup :-

  • SM59 - The RFC destination
  • SCOT - SAPconnect

Complete Purchase Cycle Till FI

Let us go about purchase cycle:

1. Purchase Requistation : First Purchase requisation has to made to purchase department wheever the product need by the user or production depaartment.They are created by tcode me51k.

2. Once the purchase requested, then the purchase department will search for the materail, where available and when available. That is called Material determination.

3. After the search of material is over, then look for who are the parties , who is going to supplies the material in competitive rate. Then select the correct vendor is known as material determination.

4. After that Tender process done through Tcode-ME41.

5. After finilisation of Tender, the vendor selected and purchase order issued. The Creation of Purchase Order is ME21N. There will not be any finance entry while creating the Purchase Order.

6. Once the purchase order issued, then by the terms of PO, the vendor will supply the materials. The Receipt of Good (GR) , done through MIGO or if it is an service entry done through ML81N.

The Entry will be

Inventory account - dr-
GR/IR Clearing a/c - cr-
Purchase a/c - dr-
Purchase offset a/c -cr-

GR/IR clearing is a intermediate account, will be used to connect cost and vendor.

In GR/IR clearin a/c - 1. Assesable Value
2. Sales Tax
3. Surcharge
ie., Other than Cenvat Clearing will be there.

7. After the receipt of material, the Good Receipt along with Invoice Bill submitted to the Excise person handling Central Excise matters, to take Credit of duty for the product.

The entry will be

1. Cenvat Clearin a/c - cr
RG23a Part II a/c - dr
RG23a Part II cess a/c - dr.

8. From the Excise person , the bill move towards the person who passing the bills for payment. He will do the Invoice Receip First through MIRO. Here two document will be created, one for MM and one for FI.

The entry will be

Vendor a/c - Cr-
Gr/IR Clearing a/c - dr
Cenvat Clearing a/c- dr.

9. After finalisation of Invoice receipt, the bill is for Payment process mode through F-53.

The entry will be
Vendor a/c - dr
Bank a/c - cr.

BOM Is Not Exploding In P.O.

While creating subcontract order, BOM is not exploding in P.O even though we are maintaining BOM for end product. How to solve this problem?

Please check the following things :

1. In Material master MRP4 view - Field "Individual/Coll" should have value "2" or "Blank" & In BOM (Transaction code CS03) item detail section - Field "Explosion Type" should have value "LB" ("Individual/Coll" should have value "2" or "Blank") .

2. PIR should have PIR Info category "3" , i.e., Subcontracting PIR must available for header material which we receive back from subcontractor.

3. Special Procurement Key must be "30" in material master MRP2 View.

4. Purchasing Item Category must be "L" and production BOM must be maintained, if you want to explode BOM in PO.

5. Please check BOM valid period is effective from in Tcode cs03

6. Please check your PO date against the valid date of the BOM valid period.

Where is Cost Derived When Doing Goods Receipt

Explan what are the cost account when doing the goods receipt. For example when doing GR, system post as follows.

Dr Stock (is this the cost of sales?)
Cr GR/IR (what exactly is GR/IR)

and when do IV it post

Cr Vendor etc.

Goods Receipts/Invoice Receipts for Purchase Order:
Transaction OMW1 allows you to set whether the Price Control is a mandatory "S" or "V".
- V indicate that you want the system to value the stocks with the latest price.
- S indicate that you want the system to value the stocks with a fixed price method.

Price Control V - Moving Average Price
Assume Material Master current price is 10
Goods Receipts for Purchase Order - Movement Type 101
Material Document Posting created - inventory increases

Accounting Document Posting created
Debit 12345 Inventory 12
Credit 67890 GR/IR 12

New Moving Average Price = ( GR value + Total value ) / ( GR quantity + Total stock )

Invoice Recipts for Purchase Order - MR01

Accounting Document Posting created
Debit 67890 GR/IR 12
Debit 12345 Inventory 3
Credit 45678 Vendor 15

New Moving Average Price = ( Inventory difference of 2 + Total value ) / ( Total Stock)

Price Control S - Standard Price
Material and Accounting Document is the same.
The one with the lower value will be posted with a price variance entry.

Goods Receipts for Purchase Order - Movement Type 101
Material Document Posting created - inventory increases

Accounting Document Posting created
Debit 12345 Inventory 10
Debit 23456 Price Variance 2
Credit 67890 GR/IR 12

No change in Standard Price

Invoice Recipts for Purchase Order - MR01

Accounting Document Posting created
Debit 67890 GR/IR 12
Debit 23456 Price Variance 3
Credit 45678 Vendor 15

No change in Standard Price

SAP Purchasing Group and Purchasing Organization

How can we create a pur org at enterprise level ?

SPRO > Enterprise Structure > Materials Management > POrg > New Entries

If we create a purch org at plant level, is it necessary to assign that purch org to the company code ?

There is no option to create a Purchasing Org at Plant, it is an independent entity, it can be assigned to a Plant or a company code or to the both.

Is it necessary to assign purchasing group to the purchase org ?

Is there any procedure by which a purchasing group (or many purchasing groups) could be assigned to a purchasing organization?

There is no such configuration exist in SAP to link Purchasing Org to Purchasing Grp.

1. Purchasing organizations that procure for several company codes (contract management) are not assigned to one company code. They can procure for the any company code.
2. It is not mandatory to assign Pur org to the company code. If you want to have company code specific purcahsing organisation then you have to assign it to the company code.
3. You cannot assign purcahsing organisation to puchasing group.

Purchase organisation is created by customizing
SPRO-Enterprise structure-Definition-MM-Maintain Purchase organisation.

Plant - purchasing organization/company code
In the SAP system, a plant must be assigned to one or more purchasing organizations.

Furthermore, a plant must always be assigned to a company code.

Purchasing organization – company code
A purchasing organization can (but need not) be assigned to a company code.

If you do not assign a company code to a purchasing organization, the latter can engage in procurement operations for every company code. A prerequisite for this is that the plant for which procurement is carried out is assigned to the purchasing organization.

Purchasing group need not be asigned to a purchase organisation.

SAP Comparison of Commodity Code Numbers


This function allows you to maintain the lists of commodity codes (for example, US Schedule B

codes) and import code numbers (for example, Harmonized Tariff Schedule codes) in the


Periodically, some codes become obsolete with the customs authorities. This function identifies

obsolete codes by comparing codes currently in the system with the set of codes designated by a

keyword you enter. (See the graphic below.) This designated set of codes could be, for example,

the most recent set of commodity codes you received from the customs authorities and loaded

into R/3. From the comparison, the system creates a list of the codes that are not in the

designated set. You then have the option of deleting the listed codes.

Commodity codes Commodity codes Commodity codes

Currently listed in the selected for

in the system most recent set deletion












To use this function, you must know the keyword assigned to the set of codes on which you want

to base the comparison. (When you load a set of commodity codes or import code numbers, you

can print the key you assigned to the set and keep it on file.) The system uses that keyword to

retrieve the set of codes from its database.

Valuation price in PR and how to enter PR without Price

In PR screen layout, you can change field selection for valuation price. In your system, you already tick that field to become optional, but it still require input when PR created. You have already check order type and field selection.

So far, when you create PR, there is always a valuation price - Assumption is that SAP gets the PR valuation price from the current unit cost of the material.

In your current business process. User are require to input item in PR, even the valuation price of that item is zero/free goods. So, you set field selection valuation price in PR to just optional. But, it didn't work. in SAP help, it is mention that you can set that field to optional or require.

As far as the business processes requirements are concerned, the Valuation Price of PRs must be set as mandatory since this is one of the main characteristics to set the Release Strategy based on which the release codes are to be allocated for on-line release of PRs in SAP.

In case, this field is optional, once manual PRs are to be maintained, the Release Strategy will not be effective unless end users remember to fill in this Valuation field.

What SAP can additionally provide you is to set this field to "Display" only (via Transaction Code OMF2). However, it is not recommendable from the business processes point of view.

You can only enter a PR WITHOUT PRICE if you did not tick Invoice Receipt under Valuation.

Logically, any items that require an INVOICE RECEIPT must have a price.

SAP Automatic Conversion of PR to PO

You created purchase requisition for various material. During creation of purchase order you used the following path:

Purchase Requisition
.......Follow on function
.........Create Purchase Order
............automatic via purReq.

When you mentioned required purchase requisition number and execute, system give error that purchase requisition does not contain any suitable item.

Is there any setting in customization where you can monitor and use that function.

In an effort for you to successfully use the Transaction Code ME59 to automatically convert the current PR into PO, then the following criteria should be met:

1) In the Purchasing View of the material master data, the "Autom. PO" field must be clicked;

2) In the Purchasing View of the Vendor Master Data, the "Automatic Purchase Order" field must be clicked;

3) The Outline Agreement or Purchasing Info Record shall be maintained which will allow the automatic copying of unit price and other conditions into PO;

4) The Source List shall be maintained for the nominated vendor which was shown in either the Outline Agreement or Purchasing Info Record.


it might be PR subject to release strategy and not yet released


If you're not using a source list or automatic creation of PO, you may need to assign the requisition to a purchase information record using transaction ME56. Then it should appear in ME58.

How Can We Delete Purchase Requisition

Deletion of PR can be done using ME52N

This is only possible provided that no purchase order have been assigned. If po has been created, you can only Flag for Deletion.

To delete the pr, select the line(s) you wish to delete and then click on the dustbin icon.

Delete Purchase Requisition

How to delete the purchase requisitions created through MRP?

Normally, the deletion of such MRP run PRs can be done in the next MRP run as soon as there is any MRP-relevant changes in the stock status of your related material.

It is not necessarily require to make any setting in MRP Group as this setting will be used in case you would like to make a more detailed control of your MRP run process.

The setting of Plant parameters via Transaction OMI8 represents the combination of various settings under Consumption-Based Planning (for instance, the setting of MRP Controller in OMI8 is exactly the same as in Transaction OMD0).

Therefore, if you have already set such parameters in other transactions, then you don't need to perform again in OMI8 Transaction.

Monday, January 12, 2009

SAP - Difference Between Client , Purchasing Org , Plant , Company code

What is the technical difference between Client , Purchasing Org , Plant , Company code?

Client : Unit within SAP system, self-contained, separate master data with independent set of tables. It represent corporate group.

Company Code : Smallest organisational unit of external account for which a complete, self-contained bookkeeping system can be replicated. eg, company within a corporate group.

Plant : An organisational unit within logistics, subdivides an enterprise from the viewpoint of production, procurement and materials planning.

Purchasing Org : Organisation within logistics which subdivides an enterprise according to purchasing requirements.

The procurement business process uses this organisational structure:

Client--->Company Code--->Plant--->Storage Location--->Purchasing Org/ Purchasing group

SAP MM Tips by : Mabaile Mashao

The standard procedure for creating a new plant in SAP:

SPRO -> Enterprise Structure -> Logistics - General -> Define, copy, delete, check plant

SAP MM Maintain relation between Alternatives Materials

Hai Sappers, this is a typical situation I am facing. Ours is an auto industry & we have materials that are alternatives to other materials. These materials are perfect substitutes of each other & are known as alternatives. (the user can consume either of the materials or both). How to maintain the relation between the alternatives in SAP? How the MRP considers the quantity of each alternative for the MRP calculation?

Priya Rao

You can have 2 options:

1) Create only one generic material in your system and while placing orders for different equivalent materials, mention the equivalent product name in the vendor info record Under vendor prwhich will get copied to Purchase order. Thus in your system you will have only one material.

2) If this is not suitable for you, than you can configure Manufacturer Part Number functionality.

Option No 1 . Pl take this scenario of a Chemical co.

Step 1 - Creation of Material in SAP

Genaric Material Vendor
(Silicon Surfactant)

Alt.Material 1 Vendor X
Alt.Material 2 Vendor Y
Alt.Material 3 Vendor Z

In this case, you will create material in SAP as Silicon Surfactant. This material will be used in BOM.

You will not create 3 different alt.materials like Material 1,2 and 3 in system.

Step 2 - Vendor Inforecord will have Vendor Material No i.e Material 1 etc.

Thus whenever you will print PO, PO will be printed with reference to your internal SAP material no i.e of Silicon Surfactant and will also have vendor material no. If you want only Vendor material to be printed then you have change the print format.

Thus for MRP, only 1 material will be cionsidered. Hope this is clear.

Option No2 -Manufacturer's Part Number
Step 1 -
In customisng under Lo General - Material Master - You have to create a MPN profile.

Step 2 -
Create normal material under material type ROH or Traded as required. Under purchasing tab , maintain MPN Profile,Manufacturer's part number(Vendor material number) and Manufacturer's code.(Vendor Code)
This is a material in which you will maintain stock, use in BOM etc. This is your internal material number. This number will not be used in the PO.

Step 3
Create a new material each for your alternative materials under Material type HERS. Under this you will create material which is supplied by your vendor.In this material you will link the internal material number as created in step 2 above.

Step 4
Create a PO by using material number created under material type HERS.

Step 5 - Do a GRN

MPN process works like this :
Order is created for HERS material but whenever you will do GR against this PO, stock and other reports will get updated under material code created in step 2 i.e normal material created under material type ROH or traded. Thus HERS material is used only for ordering purpose.

SAP Maintain the user default settings when creating MM

Default values while creating Material Master.
Is it possible to define default values for certain fields, while creating the material master?
I know about the MRP profile and the forecast profile. I am looking for something similar for defaulting values for certain fields in the basic view.

You can define the following defaults for each user with transaction code OMT3U in 4.6c :

Default Industry sector (Industry only)

Where in the config can you default the Industry sector in MM01?

You can define that a particular industry sector is proposed whenever the user creates a material master record. However, this setting cannot be made for the material master for retail since retail is itself the industry sector.

You can hide the industry sector if you do not want the user to change it. SAP will take the default Industry sector you specify in the IMG.

Goto your user profile, own data (tranx SU3), click on [Parameters] tab, place MTP under parameter and your desired
industry code, say M (for Mech/engr) in values and save. You should see your default in mm01.

A second possibility is in MM01 directly. In the menu Settings -> Industry (Default -> Industry Sector 4.6c) you can enter your default and can even flag a box that it should not be shown anymore.

In 4.6c, you have another choice, that is tcode OMT3U where you can Maintain the user settings for the default Industry

So what you do depends on your preference and project cycle. If you have not yet gone live, and all of most of the materials is of a certain industry, then use the parameter option during user maintenance. If you have gone live, and then maintain in MM01 for a default.

Organizational levels (Industry and Retail)

You can define for a combination of user and screen sequence the organizational levels that are proposed whenever the user creates, changes, or displays a material master record, and the organizational levels and profiles that are proposed whenever the user creates a material master record.

Views that are preselected in the Select View(s) dialog box (Industry and Retail)

You can define for a combination of user and screen sequence that certain views appear as preselected in the Select View(s) dialog box.

Finally, if you create your material master record by referencing to the other material number, then several fields will be defaulted.