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 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 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.

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

How To Convert Purchase Requistion To Purchase Order - Purchase

Upon release purchase requisitions can be converted into purchase orders. This can be accomplished in transaction code ME21N .Process for converting a PR into PO is straight forward, and the steps for performing it are as follows:

Step 1)

1. Execute transaction code ME21N.
2. Choose the appropriate purchase order type: in our case NB – standard PO.
3. Organizational levels: enter them according to needs.
4. Purchase requisition: enter the purchase requisition number released in the previous lesson.

How To Create A Purchase Requisition - Purchase

Purchase requisition creation can be done in t-code ME51N (or the older version ME51 – not recommended) and is a straight forward process.

Step 1)

1. Execute ME51N transaction.
2. Purchase requisition document type: NB – standard.
3. Source determination: ON or OFF.
4. Header note.
5. Material: material number.
6. Quantity and UoM.
7. Storage location: in which the material is stored.
8. Vendor: automatically determined by using source determination – field number 3.
   
9. Tracking number: covered in previous topics, a desired value can be entered manually.
10. Valuation price: copied from material master data if maintained there, if not must be entered manually (if this field is not set as optional).After entering the desired information in the fields, we can save transaction data.

How to Change a Purchase Info Record - Purchase

We said that the transaction used to create info record is code ME11. When we need to change the info record we can use codeME12 t-code, and for display only we should use code ME13, just as SAP standards are.

Step 1)

1. Transaction code to change the info record.
2. Vendor, material, purchase organization, plant, info record number data: we use it to identify what exactly we need to change in our session. If we fill in all the fields, we will be able to change all the existing views and data in those views. For example, if we don’t specify Purchase Organization we will not be able to edit the Purchase organization Data 1 View.
3. Info category (purchasing type). We are changing the data for this info category (only for views that are info category dependent).

Introduction To Purchasing And Purchase Requisition - Purchase

Purchasing is a component of SAP MM module and its process can be roughly depicted in below diagram.

MRP (material resource planning) creates procurement proposal and later gets converted into Purchase Requisition. Next step is assigning source to Purchase Requisition, and release of Purchase Requisition. The PR gets converted to Purchase Order and upon goods receipt an invoice receipt can be done to complete the purchasing process. Additionally payment is processed (in FI module).

Procurement doesn’t have to start by the MRP, it can be initiated by consumption based planning or by direct creation of PR or PO.

MRP is a system function to determine the material requirements on both the material and BoM level. A BoM (Bill of Materials) is a list of components and subcomponents a single material is consisting of.

One of the mere basic documents in Purchasing in SAP is a purchase requisition.

Purchase requisition

How To Create A Purchase Info Record - Purchase

Purchase Info Record

Purchase info records are information about terms for purchasing a specific material from a vendor. They are maintained at vendor/material combination and can contain data for pricing and conditions, overdelivering and underdelivering limits, planned delivery date, availability period.

Procurement types in info record

1. Standard

   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.

2. Subcontracting

   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.

3. Pipeline

   A pipeline info record contains information on a vendors commodity that is supplied through a pipeline or pipes (for example, oil or water) or by similar means (for example, electricity through the mains). The info record contains the vendor’s price for the use of such commodities by the buyer (“pipeline withdrawals”). You can keep withdrawal/usage prices for different validity periods.

4. Consignment