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 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 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).

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

SAP Quality Management (SAP QM)

SAP Quality Management (QM) assures that products meet stringent regulatory standards, are safe and uniform, and meet company product specifications. SAP QM processes are thoroughly integrated into the manufacturing process.

The Quality Management (QM) process can integrate with the following SAP modules:

The Quality Management module covers all classic quality management tasks, such as quality planning (setup of data for QM tasks), quality inspection, and quality control. SAP has several QM terms that are important to note.

Introduction to Master Data - SAP MM

What is Master Data ? 

Master data in SAP is used as a base for any transaction. If you are producing, transferring stock, selling, purchasing, doing physical inventory, whatever your activity may be , it requires certain master data to be maintained. We have material master data, customer master data, vendor master data, pricing/conditions master data, warehouse management master data (storage bin master data) etc.

The ones we will focus in MM module are material master and purchase info record.

Few things you should know about Master Data:

1. Material in SAP is a logical representation of certain goods or service that is an object of production, sales, purchasing, inventory management etc. It can be a car, a car part, gasoline, transportation service or consulting service, for example. outoutout
2. All the information for all materials on their potential use and characteristics in SAP are called material master. This is considered to be the most important master data in SAP (there are also customer master data, vendor master data, conditions/pricing master data etc), and all the processing of the materials are influenced by material master. That is why it’s crucial to have a precise and well maintained material master.
3. In order to be confident in your actions you need to understand material master views and its implications on processes in other modules, business transactions and a few more helpful information like tables that store material master data, transactions for mass material maintenance (for changing certain characteristics for a large number of materials at once).

What is Material Type ?

According to SAP ERP, every material has a characteristic called “material type” which is used throughout the system for various purposes.

Why is it necessary to differentiate between material types and what does that characteristic represent?

1. It can represent a type of origin and usage – like a finished product (produced goods ready for sale), semifinished product (used as a part of a finished product), trading goods (for resale), raw materials (used for production of semifinished and finished products) etc. These are some of the predefined SAP material types among others like food, beverages, service and many others.
2. We can define our custom material types if any of standard ones doesn’t fulfill our need.

Most used material types in standard SAP installation