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This article will help you understand some important documents in SAP – Purchase Requisition and how to create the same in SAP ERP. Purchase Requisition SAP has several purchase documents to meet the requirements of different types of purchases. Both internal and external papers fall under this category. The documents that are used within the company are called internal documents. All forms of PRs (Purchase Requisitions) are examples of internal purchase documents. Never does an outsider gain access to these documents. PRs are the notes or requirements that user departments require or need. User departments in plants require raw materials to produce finished goods. Users then create PRs and forward them to the purchasing department. The purchasing department researches the suppliers from whom the raw materials can be obtained. The production resources are then transformed into purchase orders that are sent to the suppliers. Materials, quantity, required date, plant, storage location, and material group are some details in PRs. PRs can be created manually or automatically using MRP systems. Because they are used exclusively for internal communication, PRs are internal purchasing documents. Suppliers never receive them. PRs can also be created for services. In some companies, PRs are also referred to as indents. The user departments develop PR to meet their requirements for products or services. The application system can either manually construct or automatically generate a PR. If an MRP system is present, the application can automatically create a PR against a sales order or production order (if a trading system is installed).  A PR can be for an external purchase or an internal procurement. Let us see the life cycle of PR. Let us create a Purchase Requisition in the SAP system. Path -> T.Code -> ME51N Enter the material which is required by the department. Press enter and the message below will notify you saying, Enter Plant. Enter the plant. Press enter and automatically all the details will display in the table. Enter the quantity you required of the material and press enter. You can change the date if required by clicking on the delivery date cell marked in yellow above. Click on the check box. Save the data if no error is displayed. The Purchase requisition – 0010001074 is created. Save the number as you will need this number for RFQ creation. I hope this article was useful.

INFO RECORD Purchase Info Record The purchasing department uses the SAP purchase info record as a source of information. It includes details about a specific substance and the supplier of that material. The info record, for example, contains the vendor’s current pricing information. Info Record includes:  We will understand this by an example. Path to create Info Record SAP Menu -> Logistics -> Material Management -> Purchasing -> Master Data -> Info Record -> Create OR TCode: ME11 Add Vendor, Material, Purchasing Org., Plant. Select standard, subcontracting, pipeline or consignment, according to the requirement. Here I have selected the standard info category and pressed enter. The screen will appear, press enter. Now you can edit the screen as you wish. Add the details marked in red. Standard quantity and Net price can be according to you. Save the data. Purchasing Info record will be created. We can assign multiple vendors for a single material in Info Records. Info Category Info Category is of 4 types: Standard A standard info record contains information for regular purchase orders. The standard info records can establish information records for both with and without master records for goods and services. Subcontracting Ordering information linked to subcontract orders is contained in a record of subcontracting information. The subcontracting info record would include the vendor’s price for this assembly activity, for instance, if you contract out the assembly of a component to an outside supplier. Pipeline An information record for a pipeline, pipe, or similar conveyance of a vendor’s material contains details about that material (e.g., electricity from the mains). The vendor’s pricing for providing the necessary item in this manner is listed in the information record. Consignment A consignment info record comprises details on a material that the seller keeps in stock at his own expense at the location of the buying organization. The vendor’s price for goods that the purchasing entity removes from consignment stock is listed in the information record.

BUSINESS PARTNER In the last article, we saw the configuration of Business Partners. After setup, we need to create the Business Partner. Data in the vendor master record is organised under general data, company code data and purchasing organization data. It includes information like the Vendor’s name, address, reconciliation account, payment terms, and Schema group, among other things. The purchase data will be maintained at the appropriate purchasing organization level, and the vendor master will be prepared centrally. The display field in the purchasing organization data will include the order currency and payment terms. The purchase order can be modified if the master data currency differs from the purchasing currency. Business partners are involved with your firm in various ways, referred to as partner functions. The rights and obligations of each sort of partner in a commercial transaction are specified using partner functions. Your company partners may take on partner roles, such as ordering address, products provider, and alternate payee, when you sell or order items, for instance. Let us look at the step-wise process. CREATE BUSINESS PARTNER Step 1: Create for General Data Path -> T.Code -> BP Enter the created BP Role for general and grouping as shown in the figure below. Add Title – 0003 Company (Standard), name, street address and language. After updating the data, click on check-in box as marked in the figure below. You will get a message at the bottom – Data of business partner is error-free. Save the data. The business partner is created for general data. Step 2: Company Code Now Change the BP Role – Supplier. The one we created previously in the article. Once you enter the BP Role of Supplier – JSW-00, the vendor number is created automatically. Now click on the Company Code. You will see the company code 1710. Delete this company code and enter your company code – T000. Press enter. Add Reconciliation Account – 16000, and click on check-in. The data will be saved. Step 3: Purchasing Select Change in BP Role as – JSW-01. and add your Purchasing organisation – TAPO. The data which we entered is all created. Select order currency as -INR. Check-in and save data. Step 4: BP created data We can see the BPs created by us by using T.code -> MKVZ Enter your Purchasing Organisation and click on execute. You can see the BP created by you here. I hope this article was useful.

CONTENT BUSINESS PARTNER A business partner is the highest-level object in an SAP S/4HANA ERP. A business partner may be an individual, a company, or a group. In terms of business, a business partner is categorised by a role. The roles you assign to business partners represent the responsibilities they have and the transactions they are likely to be a part of. During data exchange with SAP ERP, a business partner role is utilised for classification reasons. T.Code to create Business Partner in SAP -> BP CONFIGURATION OF BUSINESS PARTNER IN SAP To create BP Roles, we need to create 3 roles – These configuration steps are related to finance. MM includes only the BP Roles configurations, not the others, as given below. I have given a detailed structure of MM and FI so that if you ever face any error, you should know what things are configured and what data is used. Follow the steps clearly to avoid any confusion. DEFINE BP ROLES Step 1: General Path -> SPRO -> IMG -> Cross-Application Components -> SAP Business Partner -> Business Partner -> Basic Settings -> Business Partner Roles -> Define BP Roles. Select the Standard -> 000000 and copy. A new screen will open, you need to add some details. Add a new BP role name which you wish to keep. Example – JSW000 – is the new BP Role name. Give title and description. BP Role Category should be kept – 000000 (Standard). BP View – 000000 (Standard). Press enter. The data will get shown in the table and you need to save the data. Now, if you go to transaction code BP. You will see the changes made in configuration. Step 1: Supplier (Fin. Accounting) Path -> SPRO -> IMG -> Cross-Application Components -> SAP Business Partner -> Business Partner -> Basic Settings -> Business Partner Roles -> Define BP Roles. AS we did for the General BP role, same process is to be followed for FI Vendor. Select the FLVN00 Add details and save the data at the end. Step 1: Supplier Path -> SPRO -> IMG -> Cross-Application Components -> SAP Business Partner -> Business Partner -> Basic Settings -> Business Partner Roles -> Define BP Roles. Similarly, do for FLVN01 Supplier. Add details and save the data. All the 3 BP Roles are now created. BP Role Category: You need to check the BP Role category of each of the BP Roles. In BP Role Category the data will be standard data and you need to open each standard data to check whether the transaction based setting is added or not. As you can se in the image above, the name is not changed instead it will show you the standard name of BP Role. And you need to click on the left side of the screen – BP Role Category – Business transaction. BP Role Category data should be available as shown below in the figure. You need to check for all BP Roles. DEFINE BP ROLE GROUPINGS Path -> SPRO -> IMG -> Cross-Application Components -> SAP Business Partner -> Business Partner -> Basic Settings -> Business Partner Roles -> Define BP Role Groupings. Click on new entries and fill out the data. Save the data. You have to now create BP Role Grouping Category. New entries and fill out the fields. Save the data. NOTE: While creating BP Roles, copy it from the standard BP Roles and while creating BP Role Groupings, create new entries. Go to BP Role Grouping, and select the grouping you created. Open it. Add the grouping category you created above as shown in the figure below. Save the data. Go back and select the grouping. Click on the left side of the screen on the option – BP Role grouping —> Bp Roles. New entries and add the BP Roles you created above in step 1, step 2 and step 3. Enter and then save the data. DEFINE BP ROLE GROUPING CATEGORIES Step 1: Define BP Role Grouping Category Path -> SPRO -> IMG -> Cross-Application Components -> SAP Business Partner -> Business Partner -> Basic Settings -> Business Partner Roles -> Define BP Role Grouping Categories. New entries. Add an entry and save the data. Step 2: Assign BP Role Grouping Category to BP Roles. Go back and select your Grouping category. Click on BP Role Grouping Category —> BP Roles Category. Click on new entry. Add your Standard BP Roles in the table, press enter and save the data. This means you have assigned you BP Role Grouping Categories to your standard BP Roles. NUMBER RANGE FOR BUSINESS PARTNER Step 1: Define number ranges for BP Path -> SPRO -> IMG -> Cross-Application Components -> SAP Business Partner -> Business Partner -> Basic Settings -> Number Ranges and Groupings -> Define Number Ranges Here number range follows same method as we did in material creation, internal number range is automatically inputted and external number range is manually updated. Go to interval and Select – Free Intervals You will get a display box displaying all the available free number ranges among which you can select one. Give the no. to the selected number range, select the row and click on green check. The created number range will appear in the number range interval table. Step 2: Define Groupings and Assign Number Ranges Path -> SPRO -> IMG -> Cross-Application Components -> SAP Business Partner -> Business Partner -> Basic Settings -> Number Ranges and Groupings -> Define Groupings and Assign Number Ranges. New entries and enter your grouping which you want to create for you BP. Enter all the fields as shown below in the figure. Add number range you just created above. Save the data. (Note: The grouping should be 4 digit code) Go to BP transaction code and under grouping, you can find your newly created grouping JGRP. DEFINE VENDOR FOR BP Step 1: Define Vendor Groups Path -> SPRO – IMG

MATERIAL GROUP AND PURCHASE GROUP The material group and purchase group are a part of material master data where you will need them in creating material. You can find these groups in Views used in material creation. Let’s create each. Create Material Group The material group helps you to group together materials and services having the same characteristics. Examples of material groups: Spare Parts, Electric Wires, etc. We can categorise things into many material groups based on material types. Step 1: Path -> SPRO -> IMG -> Logistics General -> Material Master -> Settings for key fields -> Define Material Groups T.Code -> OMSF Go to define Material Groups and click on new entries. Add your details as required and save the data. The material group – ZSPR (SPARE PARTS BMW) will be created. Go to MM01 T.code – Basic Data 1 View. You can see your material created – ZSPR Create Purchase Group For a buyer or group of buyers in SAP ERP, a purchasing group is key. It serves as the primary conduit for a company’s interactions with its suppliers and is in charge of acquiring a material or class of materials. Step 1: Path -> IMG -> Materials Management -> Purchasing -> Create Purchasing Groups T.code – OME4 Click on Create purchasing groups and add new entries. Here the Purchasing group code should be – 3 digit alphanumeric code. Description Purchase group – Can be a person’s name or department’s name. Enter the details and save the data. Go to MM01 – Purchasing View. You will see your purchasing group created – ZT1 I hope this article was useful.

Number Ranges for Material Groups A number range object is an object created in the SAP system. It contains a defined set of unique character strings. Business applications can utilize a number range object to assign unique numbers to database records, completing the keys of the data records. Each material in the material master must contain material numbers except for services, so we need to define the material number ranges as per the material type. We have two types of number ranges. Internal number range: where the system will give internal numbers, but we need to define the number range like a series of numbers eg:1000100-1000500 External number range: External numbers are of two types. You should define the number range, which can be Alpha-numerical or Alphabetic. Create Number Ranges (Internal Number Range) Step 1: The following navigation methods can be used to configure the material number ranges. Path -> SPRO -> IMG -> Logistics –> General -> Material Master -> Basic settings -> Material types -> Define number ranges for material type T.Code -> MMNR On range maintenance: material master overview screen, select groups (or press function key F6) options as shown below image. Select Create Group option. Add Group name you prefer and add the number range. If the number range is already available and used you will get a message at the bottom saying – Specify Interval __ without overlaps. You need to create a new number range which is not been used before. Go back to this screen and click on the Interval -> Free Intervals You will see all the available unused number ranges. Select any one among them for you material group. Save the data. Create Number Ranges (External Number Range) To create an external number range the same process is followed except for one change which is – > Use an alphanumeric number range and tick under the External column. Save the data. Successfully we have maintained the number range interval for material type. (Note: At a time, you can select only one number range, whether internal number range or external number range.)

MATERIAL MASTER CUSTOMIZATION In the previous article, we saw how to create material in SAP S/4 HANA – SAP MM. Now, this article will be all about Customizing the Material Master data. We will customize the Industry type, Material type, data screens for each screen sequence, etc.  So let us dive deeper into the topic. Customize the Material type Step 1 Path -> SPRO -> Logistics General -> Material Master -> Basic Settings -> Material Type -> Define attributes of material type You can also use T.code -> OMS2 Go to Position – enter standard – ROH. The standard will appear on the top. You now have to select the standard and copy it as to create your material type. You will get this screen where you will have to edit a few entries. Here, you can customise the material type according to your organization’s needs. User descriptions here are the Views which we used in the material creation. You can select as many views as you want for your customized material type. External no. assignment w/o check should be ticked. This will enable you to create material manually using alpha numeric code. In the end, save the data. Your material type will be created. These changes will be now seen in the MM01 T.code under Material type.  Step 2 Go to OMS2  Select your material type and click on Quantity/ Value updating under Dailog structure on the left side as shown in the figure below.  Go to Position – Enter your Valuation area and green tick. Your Material type along with the valuation area (plant) will appear on the top. Here you have to tick under Quantity updating and Value updating. Save the data. Customize the Industry Type Step 1 Go to T.code -> OMS3 or Path -> SPRO -> Logistics General -> Material Master -> Field selection -> Define industry sectors and Industry sector-specific field selection. New entries and add your industry type. Note – Industry Sector uses only a single alphabet. (I am using a demo server). Industry description can be anything. Save the data. Go to MM01 – You can now input the customized industry type. Customize Data Screens Step 1 Go to Path -> SPRO -> Logistics General -> Material Master -> Configuring the Material Master -> Define structure for Data sequence for each Screen sequence. Select 21 – Std ind.(short) tab pages. This is the standard. Copy as – Edit – Instead of 21 type ZT. Enter 2 times, the box will appear, press enter till everything is copied. Step 2 To move the screens and sub screens of Material master up and down. ( The basic data 1, 2, purchasing, General data/ storage 1, 2, Accounting screens and sub screens) Double click on Data screen under Screen sequences on the left side. Select any one screen description shown in the above figure. I have selected first option – Basic data 1 and then double click on subscreens option given on the left side. Select any SSq – Screen sequence and can edit by clicking on view data screen or view sub screen. To change the sequence you can move screen up and down as per your choice. Save the data. I hope this article was useful to you.

Material Master All of the materials that a business purchase, manufactures, stores, and sells are listed in the material master. It serves as the company’s primary repository for information about individual materials. Individual material master records are where this data is kept. Material master is SAP MM’s most crucial master data for the entire logistics sector. Information regarding a material’s qualities, kind, department information, batch, and other details are stored in the material master. Certain information is needed to create a material master. “Industry sector” and “Material type” are included in this. The material number must be given if there is an external system for numbering materials. A corporation and its departments require material information. For each material sold to customers, the sales department needs information on the price, location, date of manufacture, size, order unit of measure, and so forth. The costing division might require data on production costs, material purchase prices, etc. Each material in SAP offers a variety of perspectives to make it easier to access the information pertinent to each department. Each of these perspectives includes information that is pertinent to these departments. As a result, the material master displays many material views when you build a material. You must provide and keep the necessary material data for each of these perspectives. Now we’ll concentrate on transaction MM01. How to Create Material Master in SAP MM Following is Step by Step Process on How to Create Material Master in SAP MM To create a material, you can use transaction code MM01 or you need to follow the menu path: SAP Menu → Logistics → Materials Management → Material Master → Material → Create (General) → MM01 – Immediately.  Starting in the SAP Easy Access screen, go to the transaction MM01, and create a material master entry. Step 1: Select a material type and an industry sector.  As mentioned previously, the transaction utilised to create a material master record is MM01. When the transaction is completed, a screen with a few fields containing the essential details about our material appears. You select the Industry sector and Material type from the drop-down box on the screen. There is also an option to create a change number. You can also create a new material by copying an existing material. You can do this by mentioning the material number in the Copy from the text box. Once you are done, press Enter. A new window will appear, as shown below, to enter the organizational data. (Note: Material number alphanumerical key uniquely identifying material in SAP system can be generated automatically or assigned manually – it depends on material type) Step 2: Click on Select View We can choose which master data to create. The views that best fit the content being developed should be chosen as the next phase. Depending on the intended use of the material. The fundamental view is always necessary; the other views are dependent on the kind of material. Views can be created later and specify which internal SAP tables will have an entry added for the new material. The mandatory views are : After selecting the mandatory views, click on the check (green tick) and the below box will appear. Enter your plant name and check enter. The screen appears where you will have to fill out the necessary/ required data. Step 3: Filling details in Views. Basic Data 1. Mandatory fields are: the other ones depend on your exact needs. (Note: These views are customisable which we will see in the next article.) Press enter and you will be automatically taken to the next view – Purchasing. Enter the mandatory fields – Purchasing Group. (the other ones depend on your exact needs.) Press enter and next view will be displayed – General Plant data/ Storage 1. Process it and enter. Next view will be displayed – Accounting 1 Mandatory field The valuation class is a key for grouping materials that have the same account determination. If different accounts are to be posted according to valuation class in a transaction, the account determination for this transaction is to be set as dependent on the valuation class. It is vital to save the content once all necessary views have been filled up. You cannot exit the SAP interface without saving or stopping the creation of the material. Unless your computer breaks or the session is lost, there is no way to close the SAP window without responding to the save or not question. If your data is saved, you will get the message saying: To check the created material, use transaction -> MM60 You will be taken to the screen where you will have to input the plant for which you created your material and click on execute. Your material will be displayed You can also check all your materials in the table: Some important Transactional codes: I hope this article is useful. The next article will be about customizing material masters.

Material ledger activation is another setting for creating material for the respective plant. This article will show you the steps where you can activate ML. Activating and assigning material ledger to valuation areas is a one-time activity. WHAT IS MATERIAL LEDGER? SAP S4 HANA’s actual costing and inventory valuation in several currencies are done using the Material Ledger. The term “material” in SAP refers to products or services used for various transactions. These encompass warehouse, inventory, sales, and production management, among other things. ML has 3 functionalities: We first need to assign material ledger types to valuation areas. Here, valuation area means plant. ASSIGN MATERIAL LEDGER TYPES TO VALUATION AREAS Go to SPRO -> Controlling -> Product cost controlling -> Actual costing/ Material ledger -> Assign Material ledger types to valuation area. Copy the standard 0001 and copy that to your valuation area as shown below. Here valuation area is the plant code. Save the data.  You can also use the T.code = OMX3  ACTIVATE MATERIAL LEDGER FOR VALUATION AREAS Path -> Controlling -> Product Cost Controlling -> Actual costing/ Material ledger -> Activate the Material ledger for valuation areas You can also directly use T.Code -> OLX1 Click on Activate material ledger and search for your valuation area T001 in position. Your valuation area will appear on top. Here you need to check whether the status is green or not, also tick the box under the column material ledger activation. Under column Price determination, add 2 and save the data. Here 2 means transaction-based price determination.  You need to set Valuation Areas as Productive Path -> SAP menu -> Accounting -> Controlling -> Product cost controlling -> Actual costing/ material ledger -> Environment -> Production startup ->CKMSTART – Set valuation areas as productive. (You can also directly use T.Code -> CKMSTART) The screen appears, enter your plant name and untick the Processing options – Background processing and Test run and click on execute at the left top. Everything will get activated now in your plant code as shown below on the screen. This is done by a consultant and not an end user. I hope this article was useful for you.

This article will help us in setting some financial settings for enterprise structure which includes controlling area. Controlling Area The controlling area is a business organisational unit for which a closed system may do an entire cost accounting. If necessary, a controlling area may have one or more company codes that can transact in multiple currencies. Maintain Controlling Area Path -> SPRO -> SAP implementation guide -> Enterprise Structure -> Definition -> Controlling – > Maintain Controlling Area  Click on the second option -> Maintain Controlling Area and click New Entries. You have to fill out the data. Save the details and go back to the SPRO Assign Controlling Area to the Company Code Go to path -> SPRO -> SAP implementation guide -> Enterprise Structure -> Assignment -> Controlling -> Assign Company code to Controlling area. In position type your controlling area and select the left corner option – Assignment of company code as shown in the figure Click on new entries and add the company code and company name as shown below in the figure. Save the data. T.Code -> OBY6 (Company Code Global Data) Click on Position and enter your company code. You will get your CoCd at the top as shown below in the figure. Double-click your CoCd – T000 and check whether all the details entered are correct or not. Here you need to check – Chart of accounts, Fiscal year variant and Company data are filled correctly or not. T.code -> OMSY (Material Management Views on Company Codes) Add your CoCd to the position box. Check the current month and current year are correct. OMSY and OBY6 are one-time activities and you need to check whether the entries are correct or not or else your other configurations won’t work properly. I hope this article was useful to you.