SAP MM

What is Split Valuation In Sap S/4 HANA MM module? The user can use the split valuation to maintain different substance prices at several storage sites. A material, for instance, can be created internally or outside. Generally speaking, the cost of the material will vary based on whether it was made internally or outside. Similarly, a material’s price will vary depending on which vendors it was purchased from. In other instances, a vendor may give a different pricing quote for the same commodity for several locations within the same company.In SAP, a material can be configured to have a split valuation to handle these eventualities. The goods movement of a split-valued material must also address this issue if it is batch controlled. Let us customize the Split Valuation in the SAP System. Path -> SPRO ->IMP Guide -> Materials Management -> Valuation and Account Assignment -> Split Valuation -> Activate Split Valuation OR T.Code -> OMVC Click on Activate Split Valuation and activate the first option as shown in the figure. Go to: Path -> SPRO ->IMP Guide -> Materials Management -> Valuation and Account Assignment -> Split Valuation -> Configure Split Valuation Go to Global Types and click on Create. Fill out the details as shown in the image below. Again click on create. The valuation type will be created. Similarly, create one more valuation type – VAL02. Now go back and select Global Categories. Click on create. Fill out the details – Valuation Category (You can set it with any Alphabet) and Description. Click on create and go back. You will be able to the created Global Category in the table below. Now select the T – TATA and click on Types -> Cat. You can find your created Valuation types below in the table. Select VAL01 and click on activate tab below the table. Similarly, do it for VAL02. Select one of them and click on Cat. -> OUs. Activate the plant. Similarly, do it for VAL02 and activate the plants. Now, in MM01 – After entering the initial details, under the accounting section, you will get the field Valuation Category. There you need to enter the valuation category you just created above. Similarly, you will need the Valuation type during Purchase Order creation. I hope this article was useful.

GOODS RECEIPT A GR or Goods Receipt is a movement of goods that posts the receipt of goods from a supplier or production. A GR increases inventory. A GR may be a reservation, a purchase order, or another form of GRs. Steps to create GR from PO Path → SAP Easy Access → SAP Menu → Logistics → Materials Management → Inventory Management → Goods Movements → Goods Receipt → For Purchase Order → PO Number Known, OR You can use T.code -> MIGO Enter the data as shown below and add the PO Number for which you want to create GR. Press enter. The data will be displayed. Add storage location, Select Item Ok and click on check. Check for any errors, if no errors, then Post the document. The document gets posted. GR is posted.

In this article, you will define the valuation classes allowed for a material type. If a user creates a material, he or she must enter the material’s valuation class in the accounting data. Configuration of Valuation Class let us follow the steps below to configure the valuation class for the material master in SAP MM. Step 1: Define Valuation Control Path -> SPRO -> Implementation Guide -> Material master -> Valuation and Account Assignment -> Account Determination -> Account determination without Wizard -> Define Valuation Control Here, you have to check whether the first option – Valuation grouping code active is set as the current setting or not. Go back to the Implementation Guide. Step 2: Group together the Valuation Areas Path -> SPRO -> Implementation Guide -> Material master -> Valuation and Account Assignment -> Account Determination -> Account determination without Wizard -> Group together Valuation Class In position. – select your Valuation Area – T001 Change the Valuation Group Code to a new code of your choice. Save the data and Go back. Step 3: Define Valuation Classes Path -> SPRO -> Implementation Guide -> Material master -> Valuation and Account Assignment -> Account Determination -> Account determination without Wizard -> Define Valuation Classes Click on Account Category Reference Click on new entries Add account reference and description of your choice and save the data. Go Back and Click on -> Valuation Class Click on -> New entries. Add the valuation class, Account reference you created and description of both. This way you are linking the valuation class with the account reference. Save the data Go back and click on -> Material type/ account category reference In position -> Search for your material type – TROH Link your material type to the account reference. Save the data. Configuration of valuation class is completed.

PURCHASE ORDER A purchase order is a crucial document and one of the primary documents of the purchasing department. This document informs the supplier or vendor about the requirement of the material the buyer needs. A PO can be created manually by referring to a PR, RFQ, contract, or delivery schedule, or it can be created automatically. All the information needed to complete the formalities of purchase is contained in a PO. In traditional representation, a vendor receives a PO from the customer company’s procurement department. The vendor accepts the order and sends the requested material according to the quantity and delivery date specified on PO. The vendor sends the material and an invoice, which the customer company receives and then confirms. The customer pays the seller after checking the invoice. The PO is closed after settlement. Two methods of creating a purchase order in the SAP System Step 1: Creating PO automatically Path -> T.code -> ME21N Enter the vendor and press enter. Then fill out the Purchasing organization, Purchasing group, and Company code. In the table, add the material you want to procure from the supplier. Example – MATERIAL 1 Press enter and details will automatically get displayed. Manually enter the plant in the table, PO quantity and Net Price. Click on Check-in in the toolbar and check if any message arrives or not. If a message saying – Control indicators for controlling area T000 do not exist, is popped up then do the following setting. Go to path -> T.code -> OKKP Enter the CO Area in the position box and press enter. Select your CO Area row and click on activate components/ control indicators. Click on New entries. Change the settings as done in the below figure. Add Fiscal year, Activate Cost centres and tick in the box – AA: Activity Type. Save the data. Go again to the screen – ME21N. Check-in again and if a message – No message issued during check arrives, then you can save the data. The PO is created. Step 2: Create manually by referring to a PR, RFQ, Contract, Delivery schedule, etc. Path -> T.code -> ME21N Click on Documents Overview On You can select any of the options below. Here, I will select Request for Quotations. Fill out the data marked in red and click on execute. You will get the number of quotations created for the selected plant and company code. Select any one and click on adopt. Click on check-in. If No message then save the data. The PO is created. I hope this article was useful.

Request for Quotation RFQ, or simply quotation, is a document the purchasing team uses to ask the suppliers for a fair price for the products or services they need. The purchasing group prepares a proposal and sends it to some vendors. The vendors fill out the bid form and send it back to the purchasing department, which reviews it and compares it based on price and other criteria. After the purchasing department selects the best offer, it invites the chosen supplier and rejects all other offers. When a purchasing organization receives a PR and cannot locate a supplier for the material specified in the PR, it is forced to issue an RFQ to a pre-selected list of vendors. When a new material is requested on a PR or a request is made for a material that has been ordered for a while, the current cost or the vendors who can supply the material are still being determined. In these circumstances, the purchasing entity may use an RFQ. Let us create RFQ in the SAP System. Step 1: RFQ Creation Path -> T.Code -> ME41 The screen will appear – Create RFQ: Initial Screen You need to select a vendor to whom you want to request for quotation. For the list of vendors, Go to -> MKVZ. This screen will display all the vendors created by you. Go back to the RFQ Creation screen – ME41. Add the required fields and click on Reference to Preq. You can also add the Req. Tracking number, storage location, material group as required by your organization. The box will appear, automatically displaying your requisition number created by you before. (0010001074) Press enter. Screen will appear, you need to enter storage location from the box below. Select any one and press enter. Select the row and click on adopt + details icon in the toolbar. Select the header details and click enter. Add coll. number. You can give any number of your choice. It can be alphanumeric also. Collective number is important as you will need that during comparison of quotations. Click on supplier details after adding the Coll. No. Add Vendor number and press enter, rest all the details will be automatically filled. Use the same procedure for creating RFQs for different vendors by adding vendor numbers and, save the data. RFQ with some unique number will be created. Step 2: Maintaining Price given by the vendors Path -> T.code -> ME47 Enter the RFQ number Press enter and screen will appear. You will have to enter the price as offered by the vendor. Press enter and save the data. Step 3: Comparing the Quotations Path -> T.Code -> ME49 Enter the Collective number and click on execute The compared quotations will be displayed. In this way, you can create the RFQs, maintain them by adding the price received from the vendors and compare the quotations received. I hope this article was useful.

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