How To Perform Invoice Verification - Purchase

Invoice verification is done via MIRO transaction.

Step 1)

1. Enter transaction code MIRO.
2. Choose invoice as a transaction type.
3. Enter the invoice date.
4. Enter the purchase order number.
5. Hit ENTER.

Step 2)

On Payment tab choose R – invoice verification.

You can always check if the document has any problems.

1. Click Messages button.
2. Review the messages and fix the problems if there are any.

As it is shown on the below screen, I have a warning message that my price is too low, below tolerance limit. It is only a warning message, and it will not stop me from further processing.This message appeared as informational because I manually changed the item 1 price from 28.000 to 22.000! Err, just to show you the message.

How To Release An Invoice - Purchase

An invoice request is blocked for payment until its manually released. You can release the invoice by using t-code MRBR.

Step 1)

1. Execute t-code MRBR.
2. On the initial screen enter the company code and invoice number.
3. Check the release method (release manually if you want to process it in the second screen). This can be done choosing Automatically (please note the difference with automatic release in MIRO transaction being blocked and automatic release in t-code MRBR as those are two different things).
4. Our document has a manual payment block, so we will select that option. Execute.

Step 2)

1. Select the invoice you want to release.
2. Click on the flag icon – release.

You can see that now the invoice has Status field filled with green flag – it means,it is released to FI.

Financial department should now be able to see the invoice ready for payment.

How To Post Goods Receipt - Purchase

Step 1) You can post the goods receipt for a purchase order using transaction code MIGO.

Let’s say we want to do a goods receipt for our purchase order 4500018386.

1. Choose A01 – Goods Receipt.
2. Choose R01 – Purchase Order.
3. Enter your purchase order number.
4. Press ENTER.

 

Step 2)

How To Change A Purchase Order - Purchase

Step 1)

For changing an existing purchase order you can use transaction code ME22N  (or ME22 – the old version).

Immediately after executing transaction code, system will take you to the most recent purchase order you have created, changed or viewed. If you need to change some other purchase order, you can use the option which appears in the menu

Purchase order = > Other Purchase Order.

Step 2)

How To Create Purchase Order With Reference - Purchase

Purchase order with reference

Purchase orders can be created with reference to a purchase requisition, RFQ, quotation, another purchase order, contract, sales order etc. To reference a PO to a previous document you can use the appropriate function.

You can create a PO referencing a previous document in 2 ways

1. Using ME58
2. Using ME21N

Referencing through ME58

In our case if we want to create a PO for a purchase requisition, we can use the transaction code ME58.

I will demonstrate the process starting from ME58 as it calls the ME21N and you can see that actually we create a PO in ME21N anyway.

Step 1)

1. Enter t-code ME58.
2. Choose Vendor and purchasing organization and
3. Select document types.
4. Execute.

How To Create A Purchase Order - Purchase

Purchase orders are used for a number of processes in procurement. They can be used for internal procurement (from one plant to another), external procurement of goods (direct consumption or stock) and services. It can also be used for subcontracting, third-party and consignment processes.

Purchase order processing is shown in the following diagram.

Purchase orders can be created with reference to a purchase requisition, RFQ, quotation, another purchase order, contract, sales order.

How to create a Purchase Order

Purchase orders are created by using standard transaction ME21N (or ME21 – the old instance of the transaction).

Step 1)

1. Enter transaction code ME21N.
2. Enter vendor.
3. Enter material number that needs to be procured.
4. Enter the quantity and unit of measure (optional – system uses UoM from purchase info record).
5. Press ENTER to confirm the data entered.

How To Select Or Reject A Quotation - Purchase

Step 1)

1. Select the quotation that’s favourable (you want to process it further as it’s having the best conditions).
2. Choose the Edit Quotation button on the toolbar.

Step 2) Now you are in the ME47 transaction. Here you can choose the item and go to the item details screen.

1. Select the item.
2. Click on the item details icon.

Step 3)

How To Create A Source List - Purchase

You can create a sourcelist in ME05 transaction. A source list is a list of possible sources for a material. If a source list requirement exists for the material, you must create a source list to proceed with the ordering.

1. Execute t-code ME05.
2. Enter material, or material list/range.
3. Enter plant.
4. Untick the test run check box to perform the transaction instead of using the test mode.
5. Execute the transaction.

On the results screen select the appropriate line item and click on the save button.

You have created a source list.

SAP MM Certification - How to Start Preparation ?

A Firm Decision: Career after SAP MM Certification

Taking a decision to go for SAP MM certification followed by consulting area is critical task, for that you need to look for following points

1. You are working with same domain (procurement, supply chain management etc.) and looking for career in SAP MM consulting
2. You are fresher and completed your post graduate in MBA, you have made your mind to go for SAP MM consulting for whatever reason (mostly you are influenced by job market)
3. You have some knowledge on SAP, or you are working on other modules of SAP and you want to move into SAP MM consulting.

Contact us @ sapinfoonline@gmail.com 

Do you really need to be certified SAP MM consultant?

This is another decision where you need to think deeply. Do I really need SAP MM certification? This question mostly targets to those who are already working as SAP MM consultant with no certification. Mostly candidates do it for job security.

Register for SAP MM Training with SAP authorized training center

If you are new to SAP MM, but intended to go for SAP MM Certification, you need to join the official training. In some countries, SAP has made it mandatory join authorized SAP training institutes before you go write the certification exam. However, in other countries, you can directly register and attend the SAP MM certification exam. If you are blessed enough to give the money, then, it is advisable to get certain official training.

Acquire the knowledge as much as you can about syllabus

There is plenty of material available on internet, however please do not deviate from your specific syllabus provided for SAP MM certification. However, prepare with mock test available which is given on this website

Prepare as per the weighting per topics given in the SAP MM certification syllabus;

please check the weight of topic here.

Get confidence on direct questions from the topics in SAP MM certification exam like

Defined rules – plant, all determination, pricing procedure, picking location, route, account determination, shipping point, tax, item category, material, etc.

Go through related screens of SAP MM process, transaction level screens like inventory, purchase order, MRP, invoice verification, physical inventory, some standard reports etc. and verify what is possible and what is not possible at each transaction document. Check that what are all possible functions are defined at header and at item level. Navigate through all menu path of all possible transaction document and check what all is possible and how data are processed.

Go through all the masters like material, vendor, condition records for price, purchasing info record, output, etc. Check which data are defined at what level, how it is stored and what all is possible

Check entire SAP MM process related setting in IMG

It will give you comfort to recognize that how settings are stored to serve the possible SAP MM process.

In the real time certification exam, give extra attention to the words used for respective questions and the approach to understand the questions – particularly with the words like mostly, most likely, least, less likely, only, except, can and always. Carefully read each question. The sentences in the actual SAP MM certification exam will be confusing always, so think rationally and logically, and give a best suitable answer which comes after such analysis.

Read your text books or SAP MM manuals 3-4 times

I can give you an assurance that you will definitely find something new which you don’t know before on SAP MM process. Note down determination rules, documents functions, master data functions, document level functions (header or line item) when you study from SAP MM manuals. This will actually help you to crack scenario based questions in actual SAP MM certification exam.

In actual SAP MM certification exam, they don’t ask the configuration. They will only ask what is possible and what is not possible.

Give mock tests with real time SAP MM certification question and answers

Once you are done with preparation from text books provided by SAP authorized training center, start attempting the SAP MM question whatever you can find on internet. Try to focus on scenario based questions which candidates feel most tough to crack. I have prepared real time and scenario based SAP MM certification question and answers, which is based on actual SAP MM certification exam pattern.

Contact us @ sapinfoonline@gmail.com 

Tips

• Practice with sample questions
• Try to associate your knowledge with live scenarios that will help you to crack the complex question in SAP MM certification exam
• Answer the questions which you know very well
• Don’t memorize T-Codes, that will be not asked in SAP MM Certification Exam

How To Compare Price For Different Quotations - Purchase

After your quotations are entered, you can compare them to select the best available offer at this moment. We can compare the quotations in transaction code ME49.

We can select which quotations will be compared by using the collective number we addressed before to be an important field that is maintained on RFQ (or directly on the quotation).

If we forget to enter the collective number, we will have to supply all the quotation numbers in the selection field “Quotation”.

Step 1) In transaction ME49, Enter

1. Purchasing organization (e.g. 0001).
2. Collective RFQ (we have used 190123).
3. Execute the transaction.

The comparison list looks like this:

From the list we can see that Vendor1 have proposed a better price.

What we need to do is check the effective price (with discounts, freight cost and other conditions).We will go back to the selection screen and we will tick three check boxes.

Step 2)

1. Check all the boxes in the Price Calculations section.
2. Execute the transaction.

Our results have changed significantly.

Now Vendor2 has the better price, and price of Vendor1 has gone up 256 EUR because of freight cost.

Now we can conclude that our Vendor2 has the best price, and we can proceed with the process.

If you select Mean value quotation and Minimum value quotation on the previous screen, you will get the result as they are shown below on the screen.

1. Average price on all the quotations.
2. Minimum price for all the quotations.

After comparing the prices/conditions, you can decide which offers to accept and which ones to reject.

How To Create Quotations - Purchase

Using transaction code ME47, we can create a quotation based on a request for quotation.

Step 1)

1. Transaction code for quotation maintenance – ME47.
2. RFQ: request for quotation that we are using as a reference document.
3. Press ENTER.

Step 2)

1. RFQ quantity
2. Delivery date
3. Net price per unit of measure
4. Storage Location

Overview Of Quotations. How To Create RFQ - Purchase

Quotations

Quotations are requests for vendors to provide us information about their best prices, terms and conditions, schedule of deliveries and other information in order to select the best source for our procurement needs.

Below you can see the process flow for quotations in purchasing in SAP MM module.

Quotation process is started with creation of a request for quotation, and afterwards maintenance of the quotations to input all the information received from possible vendors. Then we want to compare the offers and select the best suitable one(s) rejecting the others.In SAP, there are several transaction used in the process.

How to create Request for quotation

Overview of Quality Management

The Quality Management component (QM) is part of the integrated R/3 System.  With the functions of the Quality Management (QM) module, you can implement the most important elements of a QM system, as specified in ISO 9000. 

You use the QM component functions for the following quality management work:

Quality planning

Basic data for Quality Management 

Inspection planning 

Quality assurance

Quality inspection 

Quality certificates 

Quality control 

Quality notifications 

QM information system 

In addition,

Steps for PP-PI - QM Integration

Following are the multiple steps for the integration (you can add steps based on your company needs).

steps for PP-PI - QM Integration

1. Material Master is created

2. QM view is created.

3. All the relevant inspection types are assigned.

4. BOM,Resource are created.

5. Now Assign inspection types 03 & 04.

6. Do In Process (inspection type = 03) & FG inspection (inspection type:04) to be done

7. Now For - 03 inspection you need to assign inspection characteristics to the Master Recipe.

   For the 04 inspection you need to create an inspection plan and assign the

   control for lot creation in the material master i.e. to X

   If you use the Y setting then the inspection lot is created with the release

   of the order.

8. Final step

   In the PPPI scenario the the control recipe will generate after u relelase the process order.

   u can find point the red round sign on the porcess order main screen.

   Click to activate that sign ==> the control recipe is generated.

   After that if you mentain some parameter in the PI sheet that will capture by saving the porcess order.

   Then Initiate t-code: CO53 & find the PI sheet for your process order.

   Now you need to send this PI sheet to specific destination.

   Then Initiate t-code: CO60 ==> u can see the PI sheet for the Process ordere with the maintained parameter.

   The 04 inspection lot is stock relevant meaning that the material from the GR from production goes into quality stock.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Note: In material master under Quality view,

         QM config would assign inspection type (one for pre despatch and another one for post despatch).

         Material Master Table: MARA. Check also Material Master Views for increased visibility.

Config Activity (that is carried out here)

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

In material master

    => go to quality management view

          => select inspection set up

                => select inspection type

                      => In inspection give 06 and 10 &

                           => click on 'Active'.

                               => save this info (click on the save button).

Implying => when you do PGR (Post Goods Receipt) for return stock/material,

                  it will create a inspection lot. 

                  QM config will update the inspection lot base settings and when we do PGR it will go to quality stock,

                         with specified category.

MM-SD - Under Inventory Management

Return Delivery & Credit Memo (issue)

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Integration Points Module

- Increases Inventory - MM/ QM (For Inspection)

Delivery & Goods Issue

~~~~~~~~~~~~~~~~~~~

- Availability Check - MM

- Credit Check - FI  (coverage from FICO area)

- Reduces stock - MM/ QM (Inspection before moving stock to unrestricted Stock / before despatching the material).