Proc. of Stock Materials-Revised-2

Materials Management User manual Procurement Of Stock Materials
Procurement Of Stock Materials
Prepared By M.Ramesh Kanna
Materials Management
User manual Procurement Of Stock Materials
Icons
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Typographic Conventions
Type Style Example text Description Words or characters that appear on the screen. These include field names, screen titles, pushbuttons as well as menu names, paths and options. Cross-references to other documentation. Emphasized words or phrases in body text, titles of graphics and tables. Names of elements in the system. These include report names, program names, transaction codes, table names, and individual key words of a programming language, when surrounded by body text, for example, SELECT and INCLUDE. Screen output. This includes file and directory names and their paths, messages, source code, names of variables and parameters as well as names of installation, upgrade and database tools. Keys on the keyboard, for example, function keys (such as F2) or the ENTER key. Exact user entry. These are words or characters that you enter in the system exactly as they appear in the documentation. Variable user entry. Pointed brackets indicate that you replace these words and characters with appropriate entries.
Example text EXAMPLE TEXT
Example text
EXAMPLE TEXT
Example text <Example text>
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Abbreviations
R Required entry field (used in the end-user procedures) Optional entry field (used in the end-user procedures) Conditional field (used in the end-user procedures)
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Contents
Procurement of Stock Materials ........................................................................................................... 6 1 Procurement of Stock Materials Raw Material Local / Return.......................................................... 6 Purpose ..................................................................................................................................... 6 Prerequisites .............................................................................................................................. 6 1.1 Request for Quotation (RFQ) .................................................................................................47 Use ..........................................................................................................................................47 Procedure .................................................................................................................................47 Result.......................................................................................................................................56 Example ...................................................................................................................................56 1.2 Message output: RFQ ............................................................................................................57 Use ..........................................................................................................................................57 Procedure .................................................................................................................................57 1.3 Maintaining Quotation ..........................................................................................................60 Use ..........................................................................................................................................60 Procedure .................................................................................................................................60 Result.......................................................................................................................................66 Example ...................................................................................................................................66 1.4 Price Comparison .................................................................................................................67 Use ..........................................................................................................................................67 Procedure .................................................................................................................................67 1.7 Creating Purchase Requisition ................................................................................................71 Use ..........................................................................................................................................71 Procedure .................................................................................................................................71 Result.......................................................................................................................................74 Example ...................................................................................................................................74 1.8 Purchase Order .....................................................................................................................75 Use ..........................................................................................................................................75 Procedure .................................................................................................................................75 Result.......................................................................................................................................79 Example ...................................................................................................................................80 1.9 Message Output....................................................................................................................80 Use ..........................................................................................................................................80 Procedure .................................................................................................................................80 1.10 Goods Receipt for Purchase Order.........................................................................................83 Use ..........................................................................................................................................83 Prerequisites .............................................................................................................................83 Procedure .................................................................................................................................83
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Result.......................................................................................................................................87 Example ...................................................................................................................................87 1.13 Logistics Invoice Verification ...............................................................................................88 Use ..........................................................................................................................................88 Procedure .................................................................................................................................88 Result.......................................................................................................................................92 Example ...................................................................................................................................92 1.14 Returning Delivery..............................................................................................................92 Use ..........................................................................................................................................92 Procedure .................................................................................................................................92 Result.......................................................................................................................................97 Example ...................................................................................................................................97 1.15 Excise Invoice Other Movements ..........................................................................................97 Use ..........................................................................................................................................97 Procedure .................................................................................................................................97 Result.....................................................................................................................................100 Example .................................................................................................................................100 1.16 Posting and Printing the Excise Invoice................................................................................101 Use ........................................................................................................................................101 Prerequisites ...........................................................................................................................101 Procedure ...............................................................................................................................101 Result.....................................................................................................................................104 1.17 Credit Memo ....................................................................................................................105 Use ........................................................................................................................................105 Prerequisites ...........................................................................................................................105 Procedure ...............................................................................................................................105 Result.....................................................................................................................................109 Example .................................................................................................................................109 2 Procurement of Stock Materials from SSI Vendor ............................... Error! Bookmark not defined. Purpose ....................................................................................... Error! Bookmark not defined. 2.1 Master Data Maintenance for SSI Vendors .................................. Error! Bookmark not defined. Use ............................................................................................. Error! Bookmark not defined. 2.3 Purchase Order ........................................................................ Error! Bookmark not defined. Use ............................................................................................. Error! Bookmark not defined. Procedure .................................................................................... Error! Bookmark not defined. Result.......................................................................................... Error! Bookmark not defined. Example ...................................................................................... Error! Bookmark not defined. 2.4 Message Output....................................................................... Error! Bookmark not defined. Use ............................................................................................. Error! Bookmark not defined.
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Procedure .................................................................................... Error! 2.5 Goods Receipt for Purchase Order ............................................. Error! Use ............................................................................................. Error! Procedure .................................................................................... Error! Result.......................................................................................... Error! Example ...................................................................................... Error! 2.6 Logistics Invoice Verification.................................................... Error! Use ............................................................................................. Error! Procedure .................................................................................... Error! Result.......................................................................................... Error! Example ...................................................................................... Error! Procurement of Stock Materials for Depot ......................................... Error! Purpose ....................................................................................... Error! 3.1 Master Data Maintenance for Depot ........................................... Error! Use ............................................................................................. Error! Procedure .................................................................................... Error! 3.3 Purchase Order ........................................................................ Error! Use ............................................................................................. Error! Procedure .................................................................................... Error! Result.......................................................................................... Error! Example ...................................................................................... Error! 3.4 Message Output....................................................................... Error! Use ............................................................................................. Error! Procedure .................................................................................... Error! 3.5 Goods Receipt for Purchase Order ............................................. Error! Use ............................................................................................. Error! Procedure .................................................................................... Error! Result.......................................................................................... Error! Example ...................................................................................... Error! 3.6 Logistics Invoice Verification.................................................... Error! Use ............................................................................................. Error! Procedure .................................................................................... Error! Result.......................................................................................... Error! Example ...................................................................................... Error! Bookmark not defined. Bookmark not defined. Bookmark not defined. Bookmark not defined. Bookmark not defined. Bookmark not defined. Bookmark not defined. Bookmark not defined. Bookmark not defined. Bookmark not defined. Bookmark not defined. Bookmark not defined. Bookmark not defined. Bookmark not defined. Bookmark not defined. Bookmark not defined. Bookmark not defined. Bookmark not defined. Bookmark not defined. Bookmark not defined. Bookmark not defined. Bookmark not defined. Bookmark not defined. Bookmark not defined. Bookmark not defined. Bookmark not defined. Bookmark not defined. Bookmark not defined. Bookmark not defined. Bookmark not defined. Bookmark not defined. Bookmark not defined. Bookmark not defined. Bookmark not defined.
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Procurement of Stock Materials

1 Procurement of Stock Materials Raw Material Local / Return
Purpose
This process describes the procurement process of raw materials from indigenous source of supply with Country Version India (CIN) relevant process like processing of Excise Duty (ED) and Sales Tax (ST) process.
Prerequisites
The following scenario specific master data must be created for operation of this building block. 1. 2. 3. Material Master Record Vendor Master Record CIN Master Data
Material Master record Logistics Materials Management Material Master Material Create (General) MM01 Create MM02 Change MM03 Display
Menu Path T Code
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Creation of Material Master

Transaction Code: MM01
Material No. has to given Enter the Industry Sector Enter the Material Type
Press Enter to see the pop-up window.
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Select the required views and press Enter to input the organizational levels.
This selection of Views differs from each material type, for Eg. Sales View are required for Trading goods
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Press Enter to input the details of the Material.
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Enter Material Description Material Group as classified Base unit of Measurement
If you have old material No. , you can use it
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Enter Purchasing Group
If material has to be used as MPN, then choose ZMPN profile
If manufacturer is required, enter manufacturers name
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Note:MRP views are required for materials which are under BOM
Put MRP type PD
Choose 100 for 1000 Plant
Put EX for lot size
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Proc. Type F- used for buying items E- used for Produced in-house X- both proc. types
Put always 000
Procurement Leadtime for material in days
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Put 10- Make to stock
Put always 02
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If unit of issue differs from base unit of measure, enter relevant unit
Enter max. Shelf life period if it is managed Time unit of shelf life period
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Enter Profit Center as 1000-for Genus overseas 2000- For Genus Innovation
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If Material is relevant, Inspection setup has to be done
Note: Refer QM user manual for doing this activity
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Enter relevant valuation Class for each material type
Enter moving average price for material
Important Note Please refer the sheet given below and use only related Valuation class as recommended by us. If Raw material is Imported use Valuation class-3001 Raw Material is Local use Valuation class-3000
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Disc. Of material type
Material Types - External Numbers Material Description Type ROH ZERM ZMRM ZSMM ZRRM ZPRM ZPAK VERB ZPCO FHMI ZOCO ZPSI ERSA HAWA ZUTL LEIH ZSCP ZASS HALB HIBE ZESF FERT Electrical Raw Material Electronics Raw Material Mechanical Raw material Sheet Metal Raw Material Rubber Raw material Plastics Packing Material Final packing material Production Consumable Production Resources Tools Other Consumables
Valuated/Non Valuated Valuated Valuated Valuated Valuated Valuated Valuated Valuated Valuated Valuated Valuated Valuated
Valuation Class 3000/3001 3000/3001 3000/3001 3000/3001 3000/3001 3000/3001 3000/3001 3050 3002/3003 3020 3003 3001/3002 3040 3110 3004 Nil Nil Nil 7900 3300 7900 7920
1 Electrical Raw Material 2 Electronics Raw Material 3 Mechanical Raw material 4 Sheet Metal Raw Material 5 Rubber Raw material 6 Plastics Material 7 Packing Material-Genus 8 Final Packing Material 9 Production Consumable 10 Production Resources Tools 11 Other Consumables 12 Printing and Stationery Items 13 Spares 14 Trading Goods 15 Utilities 16 Returnable Packing Material 17 Scrap Materials 18 Asset 19 Semi Finished-Mech.Assembly 20 Operating Supplies 21 Semi Finished-Elec.Assembly 22 Finished Goods
Valuated Printing and Stationery Items Engineering Spares - Valuated Valuated Trading Goods-Project Utilities Returnable Packing Material Non-Valuated Non Valuated Semi Finished-Mech.Assembly Tools used as aid for Production Semi Finished-Elec.Assembly Finished Goods Valuated Valuated Non-Valuated Non-Valuated Non-Valuated Valuated Valuated Valuated Valuated
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After entering all the details, press
to save the Material.
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System message of Material Successfully Created
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Vendor Master record

Menu Path T Code Logistics Materials Management Purchasing Master Data Vendor Central XK01 Create XK02 Change XK03 Display
Press Enter to input the details of the vendor.
Vendor No will be generated automatically Enter Company Code Enter Purchasing Organization Enter Account Group
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Click here to enter Excise related Entries
Enter reconciliation account for Domestic
Note:
For Domestic Vendors- 13110000 For Import Vendors - 13111000
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Put tick in GR based invoice verification & Automatic PO
Press
to save the Vendor master and the no is generated automatically.
Put tick, if vendor is Service Vendor
Note: For Domestic Vendors Use ZD For Import Vendors- Use ZI
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System message of successfully creation of vendor master
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CIN Master Data

To maintain Chapter Ids
Transaction Code: J1ID
Select Chapter ID and Press
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Press New Entries to Create New Chapter ID
Press New Entries to go to the next screen.
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Enter the Chapter ID
Enter the Description as per law
Press
to save the data.
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Material ID and chapter ID combination
Select the Material and Chapter-Id Combination
Select Material and Chapter ID Combination and Press
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Press New Entries to Create New Material Number and Chapter ID Combination
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Enter the Material Code, Plant Code and Chapter ID
Enter the material type based on the Material Nature
Press
to save the data.
Note: If material is exciable but it is not Modvatable, then use material Type- Non Cenvatable
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Vendor Excise Details Transaction Code: J1ID
Select the Vendor Excise Details
Select Material and Chapter ID Combination and Press Note: If you have already maintained in Vendor Master Data in Tab CIN details, you need not to do this activity
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Press New Entries to Create Vendor Master Excise Details
Press to save the data. Note: 1.Enter EXCISE details, put excise indicator 1 always
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Maintaining SSI Rates: Transaction Code: J1ID
Select the SSI Rates
Select SSI Rates and Press
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Press New Entries to Create Vendor Master Excise Details
Note: This is need not to do, its one time activity. Press to save the data.
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Excise Indicator for Plants
Select the Excise Indicator for Plant
Select Excise Indicator for Plant and Press
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Press New Entries to Create Plant Excise Details
Press
to save the data.
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Maintaining Tax conditions Records

Transaction code: FV11
Purpose: To capture taxes in Purchase order for excise duty & Sales taxes
Enter Tax conditions. For Eg. JMOP- Excise duty JMX1-Setoff on Excise duty paid
Combination for Tax records
Warning: Pl. Dont use Vendor Key combination for any of Tax condition records
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Enter Excise duty of material
Plant Code
Vendor code Enter material code
Then click Save Icon, to save conditions records

Press to save the data.
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User manual Procurement Of Stock Materials Tax conditions for Inward Materials(For CENVAT Credit)
Conditions JSVD JEC3 JSV2 JEC4 JMOP JMOQ JAOP JAOQ JSOP JSOQ JMX1 JEC1 JEX1 JIPC JVRD JVRN JVCD JVCN JIPL Description of Tax Conditions
IN: Service tax debit IN: ECS ST setoff % IN: Serv.tax InputNVV IN: ECS ST Invent. % IN: BED setoff % IN: BED setoff Qty IN: AED setoff % IN: AED setoff Qty IN: SED setoff % IN: SED setoff Qty IN: A/P BED setoff IN: ECESS Setoff % IN: A/P ECS setoff IN C Sales tax inv. A/P VAT RM Deductible A/P VAT RM Non-Deduct A/P VAT CG Deductible A/P VAT CG Non Deduct IN L Sales tax inv. Service tax for Cenvat Ecess on Service Tax for cenvat Service tax for Non-Cenvat Ecess on Service Tax for Non-Cenvat Basic Excise duty of Material -Percentage basis Basic Excise duty of Material -Quantity basis Additional Excise duty of Material -Percentage basis Additional Excise duty of Material -Quantity basis Special Excise duty of Material -Percentage basis Special Excise duty of Material -Quantity basis Credit on BED paid in % Ecess Credit on Ecess paid in % Central Sales Tax VAT for Raw Materials with VAT credit VAT for Raw Materials without VAT credit VAT for Capital Materials with VAT credit VAT for Capital Materials without VAT credit Local Sales Tax
Example 10 2
16% Rs.0.46/Nos
100% 2% 100% 4% 12.50% 12.50% 8%
Note: Each Excise Condition Has to be Maintained for Combination of Plant/Vendor/ Material Service Taxes shall be maintained for Plant / Vendor combination
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User manual Procurement Of Stock Materials This is required for Haridwar Plant Tax conditions for Inward Materials(Without CENVAT Credit)
Conditions JSV2 JEC4
JMIP JMIQ JAIP JAIQ JSIP JSIQ JMX2 JAX2 JSX2 JEC2 JEX2
Description of Tax Conditions

IN: Serv.tax InputNVV IN: ECS ST Invent. % Service tax for Non-Cenvat Ecess on Service Tax for Non-Cenvat
Example
IN: BED inventory % IN: BED inventory Qt IN AED inventory % IN AED inventory Qty IN SED inventory % IN SED inventory Qty IN: A/P BED inventor IN: A/P AED inventor IN: A/P SED inventor IN: ECESS Inv setoff% IN: A/P ECS inventory
IN C Sales tax inv. A/P VAT RM Deductible A/P VAT RM Non-Deduct A/P VAT CG Deductible A/P VAT CG Non Deduct IN L Sales tax inv.
16% Basic Excise duty of Material -Percentage basis Rs.0.46/Nos Basic Excise duty of Material -Quantity basis Additional Excise duty of Material -Percentage basis Additional Excise duty of Material -Quantity basis Special Excise duty of Material -Percentage basis
Special Excise duty of Material -Quantity basis
Credit on BED paid in % Credit on BED paid in % Credit on BED paid in % Ecess Credit on Ecess paid in % Central Sales Tax VAT for Raw Materials with VAT credit VAT for Raw Materials without VAT credit VAT for Capital Materials with VAT credit VAT for Capital Materials without VAT credit Local Sales Tax
100%
JIPC JVRD JVRN JVCD JVCN JIPL
2% 100% 4% 12.50% 12.50% 8%
Note: Each Excise Condition Has to be Maintained for Combination of Plant/Vendor/ Material Service Taxes shall be maintained for Plant / Vendor combination
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1.1 Request for Quotation (RFQ) Use

Request for Quotation is used to float enquiries in market to obtain quotations from prospective vendors. This transaction is optional for the process.
Procedure
1. Access the transaction choosing one of the following navigation options:
SAP R/3 menu

Transaction code 2.
Logistics Material Management Purchasing RFQ/quotation Request for Quotation Create ME41
On the Create RFQ: Initial Screen, make the following entries:
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Field name RFQ Type RFQ Date
Description Default is AN standard RFQ Default is creation date
R/O/C R R
User action and values Enter RFQ type May be changed if required
Comment
Quotation Deadline
The due date for vendor quotations
Enter the due date in the date format assigned in the system
RFQ
Externally numbered RFQ numbers
If allowed, user can assign RFQ number. Note: each vendors RFQ is assigned a separate number.
The RFQ can be created for future issuance. Note that SAP will release it on that date without notification. If the deadline is stated as a date after the required delivery date, the user will be given an error message when the delivery date is entered. Not recommended. Collective number of subsequent screen is an effective means to capture and track RFQs.
Purchasing Org. Purchasing group Item Category
Purchasing Organization responsible for RFQ Buyer or Buying group Identifier Key defining how the procurement of a material or service item is controlled. Date on which the goods are to be delivered or the service is to be performed. Key for a production facility or branch office within the company (that is, company code). Number of the storage location where the material is stored. A
R R
Enter or select Purchasing Org. from table GOPO Enter or select Purchasing group number from table Leave it blank for this scenario
Delivery Date
Enter delivery date
Plant
Enter Plant or select from table
Storage Location
Enter Storage Location or select from table.
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plant may contain one or more storage locations. Key that you use to group together several materials or services with the same attributes, and to assign them to a particular material group. Number that facilitates monitoring of the procurement process for required materials or services. This number can relate to an external "need note" (notice of requirements) that was not generated in the system.
Material Group
Enter material group or use match code
Defaulted from material master record
Requirement Tracking number
Enter requirement tracking number
Press Enter to go to the next screen.
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3. On screen Create RFQ: Item Overview, enter information in the fields as specified in the table
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Field name Item
Description Number that uniquely identifies an item within the RFQ Item Category determines if standard purchase or other such as Sub-Contracting Order, etc. Material Number
R/O/C R
User action and values Defaults - Line items are defined by the system in increments of 10. Enter or select from table. Default is blank - standard purchase
Comment No User Action
No User Action
Material
Enter material number
100PG1
Short Text RFQ Quantity C Short Description of Material Quantity of Material requested for quotation Category of delivery date (indicates whether the date format is day, week or month) Date required if ordered Group of material which this material belongs Plant where material is required N/A R R Defaulted in from material master Must be numeric 10 Select from the drop-down list
All stock material must have material numbers
Delivery Date Material Group Plant
R N/A
Must be in correct date format Defaulted in from material master Enter or select Plant from table. Note: the material master must exist for that plant. Enter Storage Location or select from table
Sloc
Storage Location where material will be delivered and stored if ordered
Strictly optional. Storage Location may be entered later at the time of P.O. creation
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4.
Choose (header details icon) on the toolbar, then on screen Create RFQ: Header Data, enter information in the fields as specified in the table below:
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Field name RFQ
Description RFQ number
R/O/C R
Company code Purchasing group RFQ type Purch. Org Vendor
Company code Purchasing group RFQ type Purchase organization Vendor number
R R R R C
User action and values System will display saved document number unless externally assigned Defaulted by the system Supplied from initial screen Supplied from initial screen Supplied from initial screen Will be displayed if vendor number was added before this step. Supplied from initial screen Supplied by system Enter a number to track vendors of the same RFQ Supplied from initial screen Supplied from initial screen Enter date quotation will start Enter date quotation will end. Enter closing date of Bids Enter warranty information Enter date period is binding Enter total value of all materials that can be released. Enter Vendors reference number/name Enter Salesperson name Enter your reference number/name Enter telephone #
Comment Grayed out
Grayed out Grayed out Grayed out Grayed out Grayed out
RFQ date Item interval Coll. No. Language Qout. Dead. Validity start Validity end Applic. By Warranty Bindg. Per. Target val Your reference Salesperson Our reference Telephone
RFQ date Item interval Collective number Language Quotation deadline Validity start Validity end Application date Warranty Binding period Target Value Your reference Salesperson Our reference Telephone
R R O R R O O O O O O O O O O
Grayed out
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5.
Choose (vendor address button) on the toolbar, then on screen Create RFQ: Vendor Address, enter information in the fields as specified in the table below:
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Field name Vendor Title
Description Vendor code Possible titles are stored in a check table. They are language dependent. Vendor Name
R/O/C R O
User action and values Enter valid vendor code
Comment
1000
Enter title or use match code Defaulted from vendor master record Defaulted from vendor master Defaulted from vendor master
Name Search Term 1 &2
Up to 4 lines available Enter search terms
Street & House # Postal Code & City Country Region
O This field contains only upper-case letters. All entries are automatically converted to upper-case letters. There are two of these fields for search terms. Street address and/or C House # Postal code and city / town /C village Name of country C In some countries, the region forms part of the address. The meaning depends on the country. Post Office Box Number Zip Code / Postal Code Postal code, which is assigned directly to a company. This field is used in countries in which large companies can have their own postal code. Language Telephone # Fax # C
Table validated / selection Table validated / selection
Defaulted from vendor master Defaulted from vendor master Defaulted from vendor master Defaulted from vendor master
PO Box Postal Code Company Postal Code
C C C
Defaulted from vendor master Defaulted from vendor master Defaulted from vendor master
Language Telephone Fax
C C C
Defaulted from vendor master Defaulted from vendor master Defaulted from vendor master
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6.
Press to Save the RFQ. This will refresh the Create RFQ: Vendor Address screen to allow creation of the same RFQ data to a new vendor by following the steps outlined above.
Result
The system will display the message RFQ Created under the number.
Example
RFQ created under the number 600000005
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1.2 Message output: RFQ Use

A RFQ needs to be printed for transmitting to vendor. This transaction is optional for the process.
Procedure
SAP R/3 menu

Transaction code 2.
Logistics Materials Management Purchasing RFQ/Quotation Request for Quotation Messages Print/Transmit ME9A
On the Message Output screen, make the following entries:
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Field name Purch. Doc. Data Document Number Vendor Purchasing Organization Purchasing Group Document Type
Description
R/O/C
User action and values
Comment
RFQ #
Vendor # Purchasing Organization # Purchasing Group #
O O
Document Date Message Data Application
Identifier allowing differentiation between the various kinds of purchasing document in the SAP system Date on which the purchasing document was created. Subdivides the usage of a condition for the use in different application areas Specifies the kind of output You can process the message immediately or at a later time. If processing later you must use report program RSNASST00 Indicates the status1 indicates the process was successful. 2 indicates an error
Choose from drop down menu 60000000## Choose from drop down menu Choose from drop down menu 1000 Choose from drop down menu PG1 Choose from drop down menu AN
Enter Document date or choose from drop down menu
EA defaults for RFQ
Message type
Transmission time-spot
Choose from drop down menu NEU Choose from drop down menu
Processing status
Default is 0
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0 indicates the process has not yet started Date the message is create Displays the time the message was created
Creation date Time created
O C
Enter date or choose the drop down menu Defaults to time started
3.
Choose
to Execute.
4.
On screen Message Output select the appropriate Document number and perform the following:
Select the Check Box corresponding to the Document No.
Choose Output Message and/or Choose Display Message and/or Choose Message Detail and/or Choose Trial Printout
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1.3 Maintaining Quotation Use

This transaction is used to maintain the quotation, which is submitted by vendors. Vendor communicates price for material and as a result the RFQ (Request for Quotation) needs to be updated. This transaction is optional for the process.
Procedure
SAP R/3 menu

Transaction code 2.
Logistics Materials Management Purchasing RFQ/quotation Quotation Maintain ME47
On the Maintain Quotation: Initial Screen, make the following entries:
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Field name RFQ
Description RFQ Number
R/O/C R
User action and values Enter RFQ Number for which price entries are to be made. 600000PG19
Comment Match code (F4) search help can be used to locate the appropriate value.
3. 4.
Choose the Enter key, or choose green Enter icon to proceed. View the screen Maintain Quotation: Header Data by Choosing on the Header data icon in the toolbar.
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5.
Enter information in the fields as specified in the table below. Some fields will not be available for input, as they are reference fields only. 2. Press to enter the conditions
1. Press to select the line item
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Field name
Description
R/O/C R O R R O O O O O
User action and values Supplied by system Enter a number to track vendors of the same RFQ Supplied from initial screen Supplied from initial screen Enter date quotation will start Enter date quotation will end. Enter closing date of Bids Enter warranty information Enter date period is binding
Comment
Administrative Fields: Item interval Item interval Coll. No. Collective number Language Quot. Dead. Validity start Validity end Applic. By Warranty Bindg. Per. Terms of Payment & Delivery: Payment terms Language Quotation deadline Validity start Validity end Application date Warranty Binding period
O Key for defining payment terms composed of cash discount percentages and payment periods.
Enter appropriate value if necessary.
Match code (F4) search help can be used to locate the appropriate value.
Currency
Currency key for amounts in the system. Number of days. In conjunction with the baseline date for payment, this number represents a payment period or period of qualification for discount. Determines that the exchange rate used for currency translation purposes calculated or
Payment in / Days
Enter appropriate value if necessary INR Enter appropriate value if necessary
Defaulted from vendor master
Exchange Rate
Enter appropriate value if necessary
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entered in the purchasing document is fixed. Exchange Rate Fix Indicator: if you fix the exchange rate, the PO currency and exchange rate cannot be changed during Invoice Verification. Commonly-used trading terms that comply with the standards established by the International Chamber of Commerce (ICC). Total value of all materials to be released against the contract. O Check to fix exchange rate if appropriate.
Incoterms
Match code (F4) search help can be used to locate the appropriate value.
Target Value
If the value entered is exceeded, the user will receive a system message when creating a contract release order.
Reference Data: Quotation Date Quotation Your reference Salesperson Our reference Telephone
Date quotation submitted Number of vendors quotation Your reference Salesperson Our reference Telephone
O O O O O O
Enter date if desired. Enter number if desired. Enter Vendors reference number/name Enter Salesperson name Enter your reference number/name Enter telephone #
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6.
Once all necessary header data has been maintained, the user can then enter the price information in one of two fashions:
Enter the Conditions given by vendor.
a. b.
Enter the price in the Net Price field on the Maintain Quotation: Item Overview screen by Choosing overview icon on toolbar. To enter more detailed information in addition to the net price, select the line item and choose the Item Details icon. Choose the green Back arrow to return to the Overview screen once data has been maintained. i. A vendors quoted price can be entered in one of two ways.
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ii. Enter the net price per unit in the Net price field. This price includes the vendor's normal discounts and surcharges only. Cash discounts (for prompt payment) and taxes are calculated separately. iii. Enter the gross price in the Net price field, and maintain the conditions for the item. Then the system automatically replaces the entered gross price with the calculated net price. If the net price for an item is entered for which pricing conditions have been maintained, the system always replaces the price entered with the calculated net price. iv. Enter the Tax Code for any relevant taxes (for example, Excise Duty, Sales Taxes etc.) in the Tax code field. If a purchase order is created by referencing an RFQ, this code facilitates the determination of the tax amount when the invoice is entered in the system. v. After entering tax code, after choosing this system may give an information message showing the effective price, Choose Enter to continue. 7. Once all quotation information has been successfully entered, save the data by Choosing on the Save button, or Choose the <Ctrl + S> keys. A message will be displayed that the data has been saved.
Result
Quotation is maintained.
Example
Quotation for RFQ 600000009 maintained.
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1.4 Price Comparison Use

Required to compare prices from all quotations received as a result of a competitive bidding process. This transaction is optional for the process.
Procedure
1. Access the transaction choosing one of the following navigation options: SAP R/3 menu Transaction code 2. Logistics Materials Management Purchasing RFQ/Quotation Quotation Price Comparison ME49
On the Price Comparison List screen, make the following entries:
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Enter the Purchasing Organization
Enter the Quotations to be compared
Parameters included for Comparison
Field name Purch Org.
Description Organization unit that negotiates the general conditions of purchase for several plants or a single plant Purchasing document number
R/O/C R
User action and values Enter Purchasing Org GOPO / GIPO
Comment
Quotation
Coll.RFQ
Call for bid number or bid invitation number
Vendor
Vendor Number
Choose either quotation or collective RFQ number in combination with Purchasing Org Choose either quotation or collective RFQ number in combination with Purchasing Org Enter vendor number if
Number which you might have maintained in RFQ
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applicable Enter material # if applicable Defaults to 12, change if necessary.
Material Maximum # of Quotations per page
Material Number Shows the maximum amount of quotations that are displayed next to each other.
O R
3.
Choose the comparison values to be used: i. Reference quotation: You can compare the quotations within the list with a sample quotation. The system displays the percentage deviation between each quotation in the list and the sample quotation. ii. Mean/minimum value quotation: The price comparison list can also display a "fictitious" quotation reflecting the average or minimum value of all quotations. Select either the "Mean value" or "Minimum value" quotation field to choose the type of fictitious quotation. iii. Percentage basis: The price comparison list displays the percentage of each item in relation to the maximum, minimum, or average price. To determine the display type, enter one of the following: +: The highest value for each item is the 100% value -: The lowest value for each item is the 100% value _: The mean value for each item is the 100% value b. Select the desired price computations: i. Select the appropriate field to determine which of the following should be included in the determination of the comparison price: i. Include cash discounts ii. Include delivery costs iii. Determine effective price Once all entries have been made, Choose the Execute.
a.
4.
On screen Price Comparison List in Currency INR, view the Price Comparison list.
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Rank is generated automatically
Mean and Effective Price is highlighted
5.
To view any of the following information for a particular quote included in the comparison, Choose the RFQ number with the mouse to select it, then Choose the appropriate icon/button on the menu toolbar: 6. Display Material: Allows the user to view the purchasing data in the material master record. 7. Display Vendor: Allows the user to view the vendor master record. 8. Additional Info: Allows the user to view payment terms, bid dates, currency information for all the vendor quotations in the list. 9. If any information has been modified through the comparison list, save the RFQ before exiting. If changes have been made and the user attempts to exit without saving, the system will return a message to verify action. 10. To exit the transaction, choose the green Back arrow, the yellow Exit arrow, or Choose the F3 button.
Result
Price Comparison List in Currency INR is displayed on the screen.
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1.7 Creating Purchase Requisition Use

A Purchase Requisition is created to indicate purchase department to procure materials or services with details like how much quantity is required, when required. In this process Purchase Requisition is created against Quantity Contract created in above step 1.1.4 with exact delivery / requirement date. This transaction is optional for the process.
Procedure
SAP R/3 menu

Transaction code 2.
Logistics Materials Management Purchasing Purchase Requisition Create ME51N
On the Create Purchase Requisition screen, make the following entries:
Enter Material No.
Enter required Quantity
Enter required Plant
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Field name Shopping cart symbol
Description Document Type
R/O/C R
User action and values System defaults in Standard Purchase Reqisition. Use pull down to change if necessary Leave blank. Number assigned by system.
Comment
Purchase requisition Source determination
Number that uniquely identifies a requisition Flag that determines whether automatic sourcing of materials from a vendor is to be used
O O
Item Over view Icon Item Account assignment Serialized item numbers key specifying whether accounting for an item is to be effected via an auxiliary Account Denotes specific features of an item (example material is consignment) Name or number that uniquely identifies a material Description of Material Quantity requisitioned R O Leave blank, system defaulted. Leave blank for this process
Item Category
Material
Enter material code 100PG10
Short Text Quantity
O R
Unit
Unit of measure in which the requested material is to be ordered Category of delivery date (indicates whether the date format is day, week or month) Date on which the goods are to be delivered. If
Required for materials with no material master Enter number of units required 100 Defaults from material master
Defaulted from material master
Select from the drop-down list
Defaulted by the system
Delivery date
Enter the date on which material is required
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delivery date is sooner than the system calculated lead time, a warning will be issued Material group Plant Grouping of several materials with similar features Plant requiring material R Enter material group code
Storage location Purchasing Group Requisitionr. Tracking number
Key for determining storage location for a specific plant The Buyer responsible for purchasing the specific requisition/item Indicates for whom the material is ordered This number can be used to facilitate the monitoring of material procurement Desired vendor from which material required Fixed vendor is maintained for this material Supplying plant Purchase Organization Agreement number
Enter plant where material is to be shipped to 1000 RAW
Identify the buyer who will purchase material PG1
Defaulted from material master if entered.
O O
Des. Vendor Fixed Vendor
O O
SPlt POrg Agreement
O O O
Used incase of stock transport order Enter if Purchase Requisition is created against contract In this process enter agreement number is created in above step In this process enter agreement item number
Item
Agreement item number
Enter if Agreement Item number Purchase Requisition is created against contract
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3.
To assign the source of supply Choose Item Details icon or Choose Control + F4 and select Source of supply tab on it.
4.
Here Choose Assign source of supply on this tab and system will automatically assign source to this purchase requisition. Choose to Save or Choose Control + S.
5.
Result
Purchase Requisition with reference to contract is created,
Example
Purchase requisition number 1000000## created.
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1.8 Purchase Order Use

A purchase order is a legal document used to record an individual purchase with the vendor. It also provides the vendor with a reference document to link to shipping (goods receipt) and invoicing (invoice verification) processes. The purchase order is a commitment to a vendor for a given material, in a specified quantity at a predetermined price and delivery date. This transaction is mandatory for the process.
Please ensure that Purchase Order Value does not exceed specified value and if the purchase order value crosses this limit a release procedure is applied on this purchase order. To release the Purchase Order go to ME28 for collective release and ME29N for individual release.
Procedure
SAP R/3 menu

Transaction code
Logistics Materials Management Purchasing Purchase Order CreateVendor/Supplying Plant Known ME21N
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2.
If you want create purchase order with reference to the purchase requisition, on item details screen enter the purchase requisition number and item number at Purch. Req. field. System will automatically adopt all the data from requisition.
Click the Purchasing Requisitions and Press Adopt
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3.
On the Create Purchase Order screen, make the following entries: Field name Shopping Cart Symbol Purchasing document number Vendor Doc. date Header Purchasing Organization Description Order type R/O/C R User action and values System defaults in Standard PO. Use pull down to change if necessary Leave blank Comment
Number can be internally Or assigned Vendor number Purchase order date Section Header Purchasing organization code
R R
Vendor number 1000 Date PO created (defaults to todays date) Purchasing Organization known or via match code search GOPO / GIPO Enter or select from the table.
Purchasing
Purchasing group code
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Group Company Code
Company code for purchase
Enter if not defaulted in from purchasing org or group 1000 / 2000 0001 This field is important to get base line date in Invoice Verification.
Select Delivery / Invoice tab on Header data. Payment Payment Terms of O Terms Vendor
Item Overview Item number Acct. assignment category
Item category Material
Item Overview Item number within document Account where costs are allocated For a consumable material. For a stock material it is not required Type of purchase Material number
R C
Will default by system Leave blank
C R
Leave blank 1000001
External numbering is used.
Short text PO Quantity Unit of measure Category of delivery date
Text from the material master record Required units / quantity Unit that good or service is purchased Indicates whether the delivery date is to be entered and displayed as a calendar day, week or month. Date material is required Vendor selling price for good or service Currency used for plant Price per unit The unit of measure for which material is purchased Grouping together of materials by characteristics Facility where goods or services are produced or sold.
R R R R
Default from master record 10 Enter unit of measure default
Delivery Date Net Price Currency Per Order unit
R R R R R
Enter delivery date Enter price Defaulted from vendor master Default Default
Material group
Enter material group
Plant
Enter plant or select from the table
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Storage Location tracking number Location where stock is stored Number that facilitates monitoring of the procurement of required materials R O Enter storage location or select from the table Enter if known Required for stock item Can be used in List display to list all POs created by a certain buyer. Potential entry is employee number.
Requisitioner Info Record
Purchase req
To whom material or service is ordered Purchasing information record informal price agreement that may be updated with each purchase Reference document number
O O Default if goods was purchase from vendor previously or info record created by system
Input the purchasing requisities number which generated above
Use tool bar button to reference other purchasing documents
Requisn. Item Outline Agreement
Purchase requisition item no Reference document number
C C
10 Enter contract number if you want create Release Order. Use tool bar button to reference other purchasing documents Item number within purchasing document
Agreement Item Item Details Select Invoice tab Tax code
Item number
Enter contract line item number for Release Order
Item Details
Enter Tax code
V8
Since the procurement is for 1000 Mfg. Plant, which is located in Bangalore, Karnataka State and the Vendor is located in Hyderabad, Andhra Pradesh. This transaction attracts Central Sales Tax (CST) because this is inter state transaction. That is the reason it is advised to create condition record for central sales tax. GR-based IV Goods receipt based O Tick this check box invoice verification 4. The Purchase Order may be posted by Choosing on the Save button or Choose Control + S for saving.
Result
A message will be displayed stating that the purchase order was saved, with the purchase order number,
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Example
Standard PO created under the number 4500000270.
1.9 Message Output Use

A Purchase Order needs to be printed for transmitting to vendor.
Procedure
SAP R/3 menu

Transaction code 2.
Logistics Materials Management Purchasing Purchase Order Messages Print/Transmit ME9F
On the Message Output screen, make the following entries:
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Field name Purch. Doc. Data Document Number Vendor Purchasing Organization Purchasing Group Document Type
Description
R/O/C
Comment
Purchase Order #
Vendor # Purchasing Organization # Purchasing Group # Identifier allowing differentiation between the various kinds of purchasing document in the SAP system Date on which the purchasing document was created. Subdivides the usage of a condition for the use in different application areas Specifies the kind of output You can process the message immediately or at a later time. If processing later you must use report program RSNASST00 Indicates the status1 indicates the process was successful. 2 indicates an error 0 indicates the process has not yet started Date the message is
O O
O O
Choose from drop down menu 4500000270 Choose from drop down menu Choose from drop down menu GOPO / GIPO Choose from drop down menu Choose from drop down menu
Document Date Message Data Application
Enter Document date or choose from drop down menu
EF defaults for Purchase Order
Message type
Transmission time-spot
Choose from drop down menu NEU Choose from drop down menu
Processing status
Default is 0
Creation date
Enter date or choose the drop
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create Displays the time the message was created down menu Defaults to time started
Time created
3.
Choose
to Execute.
4.
On screen Message Output select the appropriate Document number and perform the following:
Choose Output Message
Then go to Spool request, to take print out.
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1.10 Goods Receipt for Purchase Order Use

Goods are received from the Vendor as a result of a Purchase Order at the receiving plant. A goods movement is entered into the system referencing this PO and a goods receipt material document is posted. Appropriate general ledger accounts are also posted and stocks are updated.
Prerequisites
Purchase Order
Procedure
SAP R/3 menu
Logistics Materials Management Inventory Management Goods Movement Goods Receipt For Purchase Order PO Number Known MIGO
Transaction code 2.
On the Goods Receipt Purchase Order screen, make the following entries:
Check this tick, to take print out
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Based on Vendor Invoice , you can Capture Excise and Post Excise Invoice
Put Tick, then excise invoice tab will POP up
Field name Goods Receipt Purchase Order Movement Type
Description Goods Receipt Purchase Order
R/O/C R R
User action and values Select from drop down list for action input the PO number which generated above 4500000270
Comment
101 Enter
Document Date
Document Date
Enter document date
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Delivery Note Vendor Posting Date Bill of lading Header text in Header Vendor Posting date Bill of lading Header text O R R O O Delivery Number from Vendor Defaulted from purchase order Enter posting date Enter bill of lading Enter header text Grayed out
Close Header Detail data to enlarge the Detail data. Select Material tab at Detailed Data. Material Material tab R Defaulted from Purchase Order Grayed out
Select Quantity tab in Detail data. Qty in unit of entry Quantity in unit of entry R Enter the quantity you have received from vendor. As a default system will give purchase order quantity Enter the quantity as per vendor delivery challan Quantity defaulted from Purchase Order
Qty in delivery note
Quantity in delivery note
Select Where tab in Detail data. Movement type Stock type Plant Storage location Goods Recipient Unloading point Text Movement type Stock type Plant Storage location R R R R Defaulted from header screen Defaulted from material master or purchase order Defaulted from purchase order 1000 Defaulted from purchase order if entered RM01 Enter the name of person who received goods
Goods Recipient Unloading point Text
O O O
Enter the text if required
Select Purchase Order tab in Detail data. Purchase Order Del. completed Purchase Order Delivery completion R O Defaulted from header data Defaulted by system if PO Qty Grayed out
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ind. indicator Select Partner tab in Detail data. Vendor Vendor name O Grayed out = GR Qty
For this material batch management is not active. Just for reference purpose the following data is given. Select Batch tab in Detail data.
This tab will come only if material is managed in batches. Proceed with the following steps if material is batch managed only. Batch Vendor batch 3. Batch number Vendor batch R O Enter batch number as date for batch managed materials Enter vendor batch number for reference
Select the Check box Item OK, after entering all the data.
You will get Excise Invoice tab at Header Data for capturing vendor excise invoice details and for posting Part I and Part II. 4. On the Excise Invoice tab at Header Data make the following entries.
Field name Capture & Post Excise invoice Excise Group Excise Invoice
Description Capture & Post Excise Invoice on Excise Action Excise Group Excise invoice
R/O/C R
User action and values Choose Capture & Post Excise Invoice from drop down list Defaulted by the system Enter the vendor Excise Invoice number For example: APG1 Enter the excise invoice date of vendor Defaulted from purchase order Defaulted form purchase order
Comment Defaulted
R R
Excise Inv. Date BED AED
Excise Invoice Date Basic Excise Duty Additional Excise Duty
R R R
Grayed out Grayed out
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SED NCCD ECS Special Excise Duty NCCD Education Cess R R R Defaulted from purchase order Defaulted from purchase order Defaulted from purchase order Grayed out Grayed out Grayed out
Close Header Detail data to enlarge the Detail data. Select Excise Item tab at Detailed Data (at the last). Chapter ID EI Quantity Base Value BED AED NCCD SED ECS Chapter ID of material Excise Invoice Quantity Base value of material Basic Excise Duty Additional Excise Duty NCCD Special Excise Duty Education Cess R R R R O O O O Defaulted by the system No action required Defaulted by the system from Goods Receipt quantity Defaulted by the system Defaulted by the system Defaulted by the system Defaulted by the system Defaulted by the system Defaulted by the system
Please cross check the BED, AED, SED, NCCD and ECS amount of item as per the Vendor Excise Invoice, legally you cannot avail more than what mentioned in Vendor Excise Invoice. All other information is defaulted by the system. Hence, no action required by the user. 5. 6. Choose Check at the top of screen. Choose Post to post the document.
Result
Material document posted.
Example
Material document 5000000420 posted
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1.13 Logistics Invoice Verification Use

In this process of Logistics Invoice Verification all the Incoming Invoices are verified in terms of their content, prices and arithmetic. When the invoice is posted, the invoice data is saved in the system. The system updates the data saved in the invoice documents in Materials Management and Financial Accounting.
Procedure
SAP R/3 menu

Transaction code 2.
Logistics Materials Management Logistics invoice Verification Document Entry Enter Invoice MIRO
If you are opening for the first time this transaction, system will ask for Company Code, please give 1000 / 2000 to go in side the transaction. On the Enter Incoming Invoice: Company Code 1000 / 2000 screen, make the following entries:
3.
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Field name Transaction Header Data Basic tab Invoice Date Reference
Description Invoice Header data of Invoice Basic information tab Invoice Date Invoice reference
R/O/C R R R R O
User action and values Select Invoice from drop down list Defaulted by system Select basic information tab to give initial information Enter the Vendor invoice date Enter the vendor invoice reference For Example ASTRA01 Enter the posting date of document Enter invoice gross amount
Comment
Posting date
Posting Date
System will give current date as default Amount
Amount
Invoice Amount
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including taxes and duties 6,10,168.00 Currency R Enter the currency in which the bill is presented by vendor, if not entered by user system will default the document currency from purchase order INR Check this tick box, system will calculate tax amount Select the tax code from drop down list V8 Enter section code if Tax deduction for source is active for this vendor Enter text if required for reference Select payment details tab Enter the base line date for payment Payment terms of document, if entered will be defaulted from purchase order Will be calculated by system Enter if cash discount is offered by vendor Grayed out Will be defaulted if payment terms entered in PO Leave blank for this process mentioned is only an example
Calculate tax
Check box calculate tax Tax code
O R
Bus.place/sect n Text Payment tab BaselineDt
Business place or section code Text Payment tab Base line date for payment Payment terms
O R R
Pmnt terms
Due on Discount
Payment due on Cash discount
O O
Hide Header data for getting full screen of items if required. Purchase order / Schedule Agreement R Select Purchase order / Schedule Agreement in the reference document category from drop down list Enter the first purchase order number generated above Select Goods / Service items in indicator from drop down list Defaulted Defaulted for user
Purchase order number Goods / service items
R R
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Layout Layout of invoice verification R Select All information from drop down list Choose Enter 4. 5. Choose Enter to complete the document feeding part. To check the document credit and debit is balanced on the top right corner of your screen a traffic light is displayed. Beside that Balance of the document is displayed.
Ensure that the Balance is ZERO before posting the document and the traffic light is green or yellow color. 6. If you want to see the accounting postings in simulation mode, Choose Simulation on middle of fourth row of your screen.
8.
Choose Save posting the document.
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Result
Logistics Invoice verification document is posted.
Example
Document no. 51056PG154 created
1.14 Returning Delivery Use

A material has been received and it needs to be returned for various reasons (i.e. poor quality, incomplete, damaged). The user can use this transaction to return the material to the vendor via the original GR document. This transaction itself is an independent transaction and it is not mandatory in J81 process. This Return Delivery transaction is used only when material is rejected and needs to be returned to vendor. If material is rejected by using QM process 1.12 there is no need to this transaction. This transaction can be used only without QM process materials.
This transaction is used basically when purchased material is needs to be sent back to vendor because of various reasons like poor quality, incomplete items, damaged etc.
Bore proceeding with return delivery to vendor please ensure that sufficient stock is available in storage location and if batch managed in particular batch stocks also. Other wise system will give error message.
Before doing Return Delivery to vendor, check if you have already done Invoice Verification to that Goods Receipt. If you have already done invoice verification please raise Credit Memo to the extent of Returns quantity and then proceed with this process. Other wise system will give an error message. How to create Credit Memo transaction is explained in the chapter mentioned 1.17below.
Procedure
SAP R/3 menu
Transaction code
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2. 3. Select Return Delivery from drop down list to make Return Delivery to vendor. On the Return Delivery Material Document screen, make the following entries:
Choose Return delivery, and Material document
Choose Stock type Blocked Stock
Choose GRN or Material Document from Transaction code MB51. Put vendor code, Movement type 101and then execute
It is very important to see the stock Where it is located (Normally at IQRJ Storage location and Stock type-Blocked)
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Field name Return Delivery Material Document
Description Return Delivery Material Document number
R/O/C R R
User action and values You have already selected in above step 2 Select from drop down list 5000000#### Enter the material document number which you have made at the time of Goods Receipt for purchase order
Comment
Enter Document Date Delivery Note Document Date in Header R O Enter document date Delivery Number. Will be defaulted if you have already entered in original document Enter posting date Enter bill of lading. Enter header text
Posting Date Bill of lading Header text
Posting date Bill of lading Header text
R O O
Close Header Detail data to enlarge the Detail data. Select Material tab at Detailed Data. Material Material tab R Defaulted from Purchase Order Grayed out
Select Quantity tab in Detail data. Qty in unit of entry Quantity in unit of entry R Enter the quantity you want to return to vendor. As a default system will give original Goods Receipt quantity 2 Enter the quantity 2 You can not return more that what you have in stock
Qty in delivery note
Quantity in delivery note
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Select Where tab in Detail data. Movement type Stock type Plant Movement type Stock type Plant R R R Defaulted by the system with 122 movement Enter stock type from drop down list Defaulted from original Goods Receipt 1000 Enter the store location from which you want to return to vendor Enter the name of person who received goods
Grayed out
Storage location Goods Recipient Unloading point Reason for Movement
Storage location
Goods Recipient Unloading point Reason for Movement
O O R
Text
Text
Select from the drop down list the reason for this movement of material 0001 Enter the text if required
Select Purchase Order tab in Detail data. Purchase Order Del. completed ind. Purchase Order Delivery completion indicator R R Defaulted from header data Defaulted from purchase order Grayed out
Select Partner tab in Detail data. Vendor Vendor name O Grayed out
Select Batch tab in Detail data.
This tab will come only if material is managed in batches.
Proceed with the following steps if material is batch managed only. Batch Batch number R Enter batch number if
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externally maintained by you or system will allocate batch number Enter vendor batch number for reference
Vendor batch
Vendor batch
4.
Select the Check box Item OK, after entering all the data.
To get Excise Invoice tab at Header Data Choose Check push button at third row at the top of the screen. 5. On the Excise Invoice tab at Header Data make the following entries.
Choose No excise entry
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6. 7. Choose Check at the top of screen. Choose Post to post the document.
Result
Material document posted
Example
Material document 5000000422 posted
1.15 Excise Invoice Other Movements Use

If the material returned to vendor is subject to Excise Duty, it is the legal requirement to in India to send the same with Excise Invoice.
Procedure
1. Access the transaction choosing one of the following navigation options: SAP CIN R/3 User menu Transaction code 2. 3. Indirect taxes Sales / Outbound Movements Excise Invoice For Other Movements Excise Invoice for Other Movements J1IS
On the Excise Invoice Other Movements Main Menu screen, make the following entries: Choose Create Excise Invoice icon to start the transaction
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Field name Reference Ref.doc.type Doc Number
Description
R/O/C
Comment
Reference Document Type Document Number
R R
Enter MATD for this process Enter the return delivery document number which you have created in above step 5000000422 Enter the year of document created Example: 2005 Enter J1 for this transaction Enter P1 for this transaction
Doc Year
Document year
Series Group Excise Group
Enter the Excise Series Group Excise Group Enter
R R
System will get vendor code as a default, please check is it corrects vendor code or not.
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System will defaults all excise duties which you have taken CENVAT during MIGO-GRN 4. Choose Save icon or Choose Control + S to save document.
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Result
Excise invoice generated,
Example
Excise invoice 1100400070 generated. FI document is 100000165.
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1.16 Posting and Printing the Excise Invoice Use

Excise Invoice has to be printed and sent along with the material. This is legal requirement in India.
Prerequisites
Excise Invoice Document is generated and posted.
Procedure
1. Access the transaction choosing one of the following navigation options: SAP CIN R/3 User menu Transaction code 2. 3. Indirect taxes Sales / Outbound Movements Excise Invoice For Other Movements Post and Print J1IV
On the SAP screen, make the following entries: If the document is not posted in step mentioned above, Choose Release to Accounting to post Financial Accounting document.
4.
Follow the steps mentioned below for taking print of Excise Invoice. Field name Excise internal reference Select internal excise invoice number from drop down list, you can find it with reference to the Excise Invoice number generated in above step 1100400070 for example with the combination of Excise Group P1 and vendor code Document No. Document Number R Enter the Excise Invoice Document Number generated in above step For example: 270 Enter the document year 2005 Description R/O/C User action and values Comment
Document year
Document Year
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5. To take printout, select Goto from the top main menu and select Print Document from the list. Or Choose Control + P to get the access of Excise Invoice Printing screen.
Choose excise invoice Number
6.
Choose Execute icon to get list of excise invoice ready to be printed.
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7. 8. 9.
From the list select the excise invoice number by choosing the check box left side of number. To take printout on printer Choose the Printer icon or Choose F8. To display excise invoice on screen Choose Display icon or Choose F9.
10. System will give popup asking for pre-printed invoice serial number, Enter pre-printed excise invoice number. In this process Choose 99 for testing purpose (since it is not expected to have pre-printed invoice for testing purpose). 11. Select printer from the drop down list. Check box for Print Immediately and New spool request. 12. Choose Print Preview or Print icons to display on screen or to print on printer mentioned above. 13. If printer is connected system will print the document on printer.
Result
Excise Invoice is printed.
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1.17 Credit Memo Use

In this process of Logistics Invoice Verification a credit memo is generated on vendor. Please be careful that during the total process after making logistics invoice verification you have made return delivery to vendor. To recover that money you need to do this credit memo transaction.
Prerequisites
Logistic Invoice Verification is already made
Procedure
1. Access the transaction choosing one of the following navigation options: SAP R/3 menu Transaction code 2. Logistics Materials Management Logistics invoice Verification Document Entry Enter Invoice MIRO
If you are opening for the first time this transaction, system will ask for Company Code, please give 1000 / 2000 to go in side the transaction.
3.
On the Enter Incoming Invoice: Company Code 1000 screen, make the following entries:
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Field name Transaction Header Data Basic tab Invoice Date Reference Posting date Description Credit memo Header data of Invoice Basic information tab Invoice Date Invoice reference Posting Date R/O/C R R R R O R User action and values Select Credit memo from drop down list Defaulted by system Select basic information tab to give initial information Enter the Vendor invoice date Enter the vendor invoice reference Enter the posting date of document Enter invoice (credit memo) gross amount including taxes and duties Enter the currency in which the bill is presented by vendor, if not entered by user system will default the document currency from purchase order Check this tick box, system will calculate tax amount Select the tax code from drop down list Enter section code if Tax deduction for source is active for this vendor Enter text if required for reference Select payment details tab Enter the base line date for payment Payment terms of document, if entered will be defaulted from purchase order Will be calculated by system Enter if cash discount is offered by vendor Grayed out Will be defaulted if payment terms entered in PO Leave blank for this process System will give current date as default Comment
Amount
Credit memo Amount
Currency
Calculate tax
Check box calculate tax Tax code
O R R
Bus.place/sect n Text Payment tab BaselineDt
Business place or section code Text Payment tab Base line date for payment Payment terms
O R R
Pmnt terms
Due on Discount
Payment due on Cash discount
O O
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Hide Header data for getting full screen of items if required. Purchase order / Schedule Agreement R Select Purchase order / Schedule Agreement in the reference document category from drop down list Enter the purchase order number Select Goods / Service items in indicator from drop down list Select All information from drop down list Choose Enter 4. 5. Choose Enter to complete the document feeding part. To check the document credit and debit is balanced on the top right corner of your screen a traffic light is displayed. Beside that Balance of the document is displayed. Defaulted Defaulted for user
Purchase order number Goods / service items
R R
Layout
Layout of invoice verification
Ensure that the Balance is ZERO before posting the document and the traffic light is green or yellow color.
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6.
If you want to see the accounting postings in simulation mode, Choose Simulation on middle of fourth row of your screen.
7.
Choose Save posting the document.
Result
Logistics Invoice verification document is posted.
Example
Document no. 5105600055 created
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Material Movements
1.Transferring a material from Storage location to Storage Location with/ without Reference
Transaction Code: MB1B (without reference)

1. Enter transaction code MB1B Screen Appears like
2.Enter Movement Type 311 3.Enter plant from where transfers occur. For E.g. 1000 4.Enter Storage Location from which Material is transferred. For E.g. ERM Then Press Enter
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6.Enter Material Code you want to transfer and quantity also. 7.Enter Receiving storage Location 8.Enter Recipient name Then enter.. 9.Finally click save icon. Result: Material is transferred from ERM SL to MRM SL
Note: In case of material transfer from one SL to another SL with reference, procedure is like this.
1. Enter transaction Code MB1B 2. PUT Movement type 311(Optional), then choose Reservation in Tool Bar 3. New pop up will appear, enter reservation number of material then choose Adopt+Details 4. System will defaults all details of a reservation items 5. Check the items & then enter receiving Storage location 6. Then enter & Save
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User manual Procurement Of Stock Materials 1.Choose reservation icon
2.Then Pop-up will appears as
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User manual Procurement Of Stock Materials 3.Then choose from list
4.Select Reservation line item (s) then click Adopt 5.System will copy all values of selected Reservation(s)
6.Then Click
, then will copy
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7.Enter and Save the document
1. Result
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Creation of Reservation (Manually)

Transaction code- MR21 In initial Screen enter details 1. Enter transaction code MR21 2. Enter Movement type- 201(For Goods Issue Request & Reservation) 3. Enter Plant For E.g. 1000
Then Press Enter 5.Enter the relevant cost center, this vary based on dept. For E.G. 1201- for Purchasing 6..Enter material code you want do reservation and quantity 7.Recipient name
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User manual Procurement Of Stock Materials 7.Press enter and Save 8.Result of Note: if you want to create Reservation w.r.t. Reservation, put reservation in initial screen itself and system will default all details of reference as shown below.
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Cancellation of Goods receipt Purpose

When GR has to be cancelled because of wrong postings, following method will help you.
Procedure
1.Access the transaction choosing one of the following navigation options:
SAP R/3 menu
Transaction code
2.Select Cancel from drop down list to make cancel GR. 3.On the Cancellation Material Document screen, make the following entries:
3.Enter Material Document number or GRN and enter Use MB51 to find material document number 4.Put OK tick for item you want cancel
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It is necessary that stock type should be in same form of GR when material document is cancelled, so it highly recommended cancel any GR before QC decision is taken, so that stock will be Quality Inspection stock. If material is not Quality inspected, check material availability at same storage location where the cancel document defaulting the Storage location.
Then Check and SAVE
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Materials Management User manual Procurement Of Stock Materials

Procurement Of Stock Materials

Prepared By M.Ramesh Kanna

Example text EXAMPLE TEXT

Example text <Example text>

Procurement of Stock Materials

Menu Path T Code

Creation of Material Master

Press Enter to see the pop-up window.

Press Enter to input the details of the Material.

Enter Material Description Material Group as classified Base unit of Measurement

If you have old material No. , you can use it

Enter Purchasing Group

If material has to be used as MPN, then choose ZMPN profile

If manufacturer is required, enter manufacturers name

Put MRP type PD

Choose 100 for 1000 Plant

Put EX for lot size

Put always 000

Procurement Leadtime for material in days

Put 10- Make to stock

If Material is relevant, Inspection setup has to be done

Note: Refer QM user manual for doing this activity

Enter relevant valuation Class for each material type

Enter moving average price for material

Disc. Of material type

After entering all the details, press

to save the Material.

System message of Material Successfully Created

Vendor Master record

Press Enter to input the details of the vendor.

Click here to enter Excise related Entries

Enter reconciliation account for Domestic

Put tick in GR based invoice verification & Automatic PO

to save the Vendor master and the no is generated automatically.

Put tick, if vendor is Service Vendor

Note: For Domestic Vendors Use ZD For Import Vendors- Use ZI

System message of successfully creation of vendor master

CIN Master Data

Select Chapter ID and Press

Press New Entries to Create New Chapter ID

Press New Entries to go to the next screen.

Enter the Chapter ID

Enter the Description as per law

to save the data.

Material ID and chapter ID combination

Select the Material and Chapter-Id Combination

Select Material and Chapter ID Combination and Press

Enter the Material Code, Plant Code and Chapter ID

Enter the material type based on the Material Nature

to save the data.

Vendor Excise Details Transaction Code: J1ID

Select the Vendor Excise Details

Press New Entries to Create Vendor Master Excise Details

Select the SSI Rates

Select SSI Rates and Press

Press New Entries to Create Vendor Master Excise Details

Excise Indicator for Plants

Select the Excise Indicator for Plant

Select Excise Indicator for Plant and Press

Press New Entries to Create Plant Excise Details

to save the data.

Maintaining Tax conditions Records

Combination for Tax records