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Material Document

Invoice Verification
Material Master: General data
Material Master: Description
Material Master: Unit of Measure
Material master: Export control file
Material master: Plant data
Material master: Storage location
Material link to BOM
Material valuation
Material Master: WM Inventory
Material Master: WM Inventory type

Vendor Master: General data
Vendor Master: Company data
Vendor Master: Purchasing Data (Purchasing organization)
Vendor Master: Purchasing Data (Plant, Vendor sub-range)
Vendor Partner Functions

Purchase requisition: items
Purchase Requisition: account assignment
Purchasing document header
Purchasing Document: Item
Purchasing Document: Delivery Schedules
Material View of Order Item/Schedule Line (good to find open PO's)
Account assignment in purchasing document
Purchasing Source List
Order price history record
Release documentation
Purchasing document history
Purchasing document history: delivery costs
Material to be provided item in purchasing document
Purchase Info Record: General
Purchasing info record: purchasing organization data
Condition Item
Condition Header

Material Document
Material document: Header
Material document: item
Physical inventory document items

nvoice Verification
Document header
Withholding tax
Document item
Invoice header
Accounting Document Header
Accounting Document Segment
Invoice Line item
Tables Description
LFA1 Vendor Master (General Section)
LFA1M1 Vendor Master View LFA1 LFM1
LFAS Vendor master (VAT registration numbers ge
LFAT Vendor master record (tax groupings)
LFB1 Vendor Master (Company Code)
LFB5 Vendor master (dunning data)
LFBK Vendor Master (Bank Details)
LFBW Vendor master record (withholding tax type
LFC1 Vendor master (transaction figures)
LFC1_AEDAT BW FI: LFC1 Extraction usign AEDAT
LFC3 Vendor master (special G/L transaction fig
LFC3_AEDAT BW FI: LFC3 Extraction using AEDAT
LFCPR Function code profile per step
LFCPR_V Function Profile
LFCPRV_VV VAS Function Profile
LFCPRY_VV Yard function code profile
LFCTX Pushbutton text
LFCTX_V Function Code Text
LFCTXV_VV VAS Function Code Text
LFCTXY_VV Yard Function Code Text
LFEI Vendor Master: Preference for Import and E
LFINF Delivery information Project System
LFINFX Assignment delivery information to Project
LFLR Vendor Master Record: Supply Regions
LFM1 Vendor master record purchasing organizati
LFM2 Vendor Master Record: Purchasing Data
LFMC Vendor master (short texts for condition t
LFMH Vendor hierarchy
LFZA Permitted Alternative Payee
Movement types Descriptions
101 GR goods receipt
102 GR for PO reversal
103 GR into blocked stck
104 GR to blocked rev.
105 GR from blocked stck
106 GR from blocked rev.
107 GR Blocked valuated stock
108 GR Blocked valuated stock reversal
121 GR subseq. adjustm.
122 RE return to vendor
123 RE rtrn vendor rev.
124 GR rtrn blocked stck
125 GR rtn blkd stck rev
131 Goods receipt
132 Goods receipt
141 GR G subseq. adjustm
142 GR G subseq. adjustm
161 GR returns
162 GR rtrns reversal
201 GI for cost center
202 RE for cost center
221 GI for project
222 RE for project
231 GI for sales order
232 RE for sales order
241 GI for asset
242 RE for asset
251 GI for sales
252 RE for sales
261 GI for order
262 RE for order
281 GI for network
282 RE for network
291 GI all acc. assigmts
292 RE all acct assigmts
301 TF plnt.
302 TR plnt.
303 TF pl
304 TR pl
305 TF pl.
306 TR pl.
309 TF mat
310 TR mat
311 TF tfr. within plant
312 TR transfer in plant
313 TF
314 TR
315 TF SLoc
316 TR stor.inSLoc
317 Create struct. mat.
318 RE create struc. mat
319 Split structured mat
320 RE split struct.mat.
321 TF quality to unrest
322 TR quality to unr.
323 TF quality in plant
324 TR quality in plant
325 TF blocked in plant
326 TR blocked in plant
331 GI to sampling QI
332 RE to sampling QI
333 GI to sampling unre.
334 RE to sampling unre.
335 GI to sampl. blocked
336 RE to sampling blkd
340 Batch revaluation
341 TF restr.
342 TF unr. to rstricted
343 TF blocked to unre.
344 TR blocked to unre.
349 TF blocked to QI
350 TR blocked to QI
351 TF to stck in trans.
352 TR to stck in trans.
401 TP own from sls.ord.
402 TP own to sales ord.
403 TP own from consgt.
404 TP own to consgt.
405 TP own from project
406 TP own to project
411 TP own to own
412 Reversal own to own
413 TF SLoc to sls order
414 TR SLoc to sls order
415 TF SLoc to project
416 TR SLoc to proj.
441 TP tiedEmp
442 TP unrstr
451 GI returns
452 RE returns reversal
453 TP returns to own
454 TP own to returns
455 TF st.tfr. returns
456 TR st.tfr. returns
457 TP Returns to own QI
458 TP Own QI to returns
459 TP Ret. to own blckd
460 TP Own blckd to ret.
501 Receipt w/o PO
502 RE receipt w/o PO
503 Receipt to QI
504 RE receipt to QI
505 Receipt to blocked
506 RE receipt to blockd
511 Delivery w/o charge
512 RE deliv. w/o charge
521 Receipt w/o order
522 RE receipt w/o prOrd
523 Rcpt QI w/o prOrder
524 RE quality w/o prOrd
525 Rcpt blkd w/o pr.ord
526 RE blocked w/o PrOrd
531 Receipt by-product
532 RE by-product
541 GI whse to subc.stck
542 RE subctrStck toWhse
543 GI issue
544 GI receipt
545 Rcpt SC by-product
546 GI issue SC by-prod.
551 GI scrapping
552 RE scrapping
553 GI scrapping QI
554 RE scrapping QI
555 GI scrapping blocked
556 RE scrapping blocked
557 GI adjust. transit
558 GI adjust. transit
561 Init.entry of stBal.
562 RE entry of st.bals.
563 Init. entrStBals: QI
564 RE EntrStBals: QI
565 In.EntrStBals: blckd
566 RE EntrStBals: blckd
571 Receipt assembly
572 RE receipt assembly
573 Rcpt QI assembly
574 RE rcpt QI assembly
575 Rcpt blckd assmbly
576 RE rcpt blkd assmbly
581 Rcpt by-prod network
582 RE by-prod. network
601 GD goods issue:delvy
602 RE goods deliv. rev.
603 TF pl
604 TR pl
605 TF pl.
606 TR pl.
621 GI ret.pack.:lending
622 GI ret.pack:ret.del.
623 GI iss:cust.ret.pack
624 GI
631 GI consgmt: lending
632 GI consgmt:ret.delvy
633 GI iss: cust.consgmt
634 GI rcpt:cust.consgmt
635 TF consgmt lending
636 TR consgmt ret. del.
641 TF to stck in trans.
642 TR to stck in trans.
643 TF to cross company
644 TR to cross company
645 TF cross company
646 TR cross company
647 TF to stck in trans.
648 TR to stck in trans.
651 GD ret.del. returns
652 GD ret.del. retn rev
653 GD returns unrestr.
654 GD returns unr. rev.
655 GD returns QI
656 GD returns QI rev.
657 GD returns blocked
658 GD returns blk. rev.
661 GI returns to vendor
662 RE ret. to vdr revrs
671 TR to stck in trans.
672 TF to stck in trans.
673 TF to cross company
674 TR to cross company
675 TR cross company
676 TF cross company
677 TR to stck in trans.
678 TF to stck in trans.
6A1 TF GI1
6A2 TR GI1
6A7 TF GI1
6A8 TR GI1
6B1 TF GI2
6B2 TR GI2
6B7 TF GI2
6B8 TR GI2
6K5 TF GI2 consi
6K6 TR GI2 consi
6W5 TF GI1 consi
6W6 TR GI1 consi
701 GR phys.inv.: whse
702 GI phys.inv.: whse
703 GR phys.inv: QI
704 GI phys.inv: QI
707 GR phys.inv.:blocked
708 GI phys.inv.:blocked
711 GI InvDiff.:whouse
712 GR InvDiff.:wrhouse
713 GI InvDiff: QI
714 GR InvDiff: QI
715 GI InvDiff.:returns
716 GR InvDiff.:returns
717 GI InvDiff.: blocked
718 GR InvDiff.: blocked
721 SlsVal.rec.n.afftMgs
722 SlsVal.iss.n.afftMgs
731 SlsVal.rec. afftgMgs
732 SlsVal.iss. afftgMgs
801 GR Prelim. Inv.+Tax
802 RGR Prelim.Inv.+Tax
803 GR Prel.Inv.ICMS/IPI
804 RGR Prelim.ICMS/IPI
805 GR Bl. Pr.Inv w. Tax
806 RGR Bl. Pr.In w. Tax
811 GR TP Dely w. Tax
812 RGR TP Dely with Tax
815 GR B TP Dely w. Tax
816 RGR B TP Dely w. Tax
821 GR val. VS w. tax
822 RGR Val. VS w. Tax
825 GR Blk Val.VS w. Tax
826 RGR B Val. VS w. Tax
833 Reval. Iss. w. Tax
834 R Reval. Iss. w Tax
835 Reval. Rec. w. Tax
851 GI Scrapping Transit
852 RE Scrapping Transit
857 GI adjust. transit
858 GI adjust. transit
901 Rcpt. Exch. partner
902 RE Rcpt Exch partner
911 GI InvDiff.:whouse
912 GR InvDiff.:wrhouse
921 Good rcpt. w/o value
922 RE w/o value SlsOrd
931 B & L - Total plant
932 TR B&L - Total plant
943 GI for DFOC
944 GD returns FOC unre.
951 GR SF & finish. Prod
952 GI crude & SF Prod.
953 GR SF & finish. Prod
954 GR SF & finish. Prod
ZR1 Reval:issue->transit
ZR2 Reval:trans.->rec.
ZX1 Issue --> Transit
ZX2 Transit --> Receipt
ZX3 Return:Dep->Transit
ZX4 Return:Transit-->Dep
Fields Description Data Element
VBELN Billing Document VBELN_VF
POSNR Billing item POSNR_VF
UEPOS Higher-level item in bill of material structures UEPOS
FKIMG Actual Invoiced Quantity FKIMG
VRKME Sales unit VRKME
UMVKZ Numerator (factor) for conversion of sales quantity into SKU UMVKZ
UMVKN Denominator (divisor) for conversion of sales qty. into SKU UMVKN
MEINS Base Unit of Measure MEINS
SMENG Scale quantity in base unit of measure SMENG
FKLMG Billing quantity in stockkeeping unit FKLMG
LMENG Required quantity for in stockkeeping units LMENG
NTGEW Net weight NTGEW_15
BRGEW Gross weight BRGEW_15
VOLEH Volume unit VOLEH
GSBER Business Area GSBER
PRSDT Date for pricing and exchange rate PRSDT
FBUDA Date on which services rendered FBUDA
KURSK Exchange Rate for Price Determination KURSK
NETWR Net value of the billing item in document currency NETWR_FP
VBELV Originating document VBELV
POSNV Originating item POSNV
VGBEL Document number of the reference document VGBEL
VGPOS Item number of the reference item VGPOS
VGTYP Document category of preceding SD document VBTYP_V
AUBEL Sales Document VBELN_VA
AUPOS Sales Document Item POSNR_VA
AUREF Sales document was created from reference AUREF
MATNR Material Number MATNR
ARKTX Short Text for Sales Order Item ARKTX
PMATN Pricing reference material PMATN
CHARG Batch Number CHARG_D
MATKL Material Group MATKL
PSTYV Sales document item category PSTYV
Data Type
Types of invoice verfication

Manual Invoice verification

Automatic Invoice verfication

When post the invoice

Types of invoice verfication

Manual Invoice verification

Credit Memo
Subsequent debit
Subsequent credit

Automatic Invoice verfication

Evaluated Receipt settlement
Automatic Delivery cost settlement
Pipeline and consignment settlement
Background invoice settlement process
When post the invoice
Invoice document updates data in MATERIAL MANAGEMENT and FINANCIAL ACCOUNTING
Invoice documents can be posted with reference to purchase order, a service, or a goods receipt
System posts the individual line items to appropriate accounts
System creates an MM invoice document and FI document
System updates purchase order history
System updates material master, if necessary
The GR/IR clearing account is cleared and vendor account is credited.
An invoice can refer to various objects, such as purchase order or delivery note.
An invoice for delivery costs can refer to a bill of lading.
An invoice for a service can refer to a service entry sheet.
All deliveries or services provided by a vendor can be settled in a single invoice
G/R I/R Account - Dr
Vendor - Cr

Steps to make STO between two plants (Inter company STO)

STO Bet Plants belongs to Same Company Code...It is also known as Intra-Company STO

Advantages of the Stock Transport Order

Differences between Stock Transport Orders (STO) and Transfer Postings

teps to make STO between two plants (Inter company STO)

1. Create one Customer Master in XD01 with respect to Supplying Plant Sales Area and assign this Customer no with Re
2. For Receiving Plant Purr. Org and Co. Code Combination create Vendor master in XK01 and in this vendor master ass
3. OLME--->PO---> Set up STO------>for your supplying plant assign document type NB, Delivery type NLCC and Che
4. Then for your supplying Plant and receiving Plant assign Document type NB
5. Make sure you are maintaining Sales View for the material at supplying Plant and in Sales /Gen plant Data view main
6. In SPRo---->Logistics execution----> Shipping--->Basic shipping functions--->Shipping point Determination---->assi
7. Then Create STO from Receding Plant in ME21N with document type NB. Based on that STO,
8. Create Delivery in VL10B from supplying Plant
9. Do PGI in VL02N from Supplying plant
10. Do GR in MIGO at Receiving Plant keeping outbound delivery as a ref. document.
11. Now your STO bet. Two plants belongs to diff. Co. Codes will be completed.

TO Bet Plants belongs to Same Company Code...It is also known as Intra-Company STO

1. Create one Customer for Supplying Plant Sales area and assign this Customer no with Receiving Plant in OLME---> P
2. In OLME---> PO ------> Set up STO.....for your Document Type: UB and Supplying plant Combination assign Del. Ty
3. In OLME---> PO ------> Set up STO...for your Supplying Plant and Receiving Plant combination Maintain Doc. Type
4. Maintain Shipping point at, SPRO----> Logistics Execution ----> Shipping ----> Basic Shipping Functions -----> Ship
5. Now Create STO in ME21N with Doc.type: UB at Receiving Plant.
6. Then Create Delivery in VL10B from Supplying Plant...
7. Then Do PGI in VL02N from supplying Plant.
8. Then do GR at Receiving Plant based on Outbound Delivery at Receiving Plant

dvantages of the Stock Transport Order

A goods receipt can be planned in the receiving plant.

You can enter a vendor (transport vendor) in the stock transport order.
Delivery costs can be entered in the stock transport order.
The stock transfer order is part of MRP: Purchase requisitions that were created in MRP can be converted into stock trans
The goods issue can be entered using a delivery via Shipping (LE-SHP).
The goods receipt can be posted directly to consumption.
The entire process can be monitored via the purchase order history.

The stock transfer includes the following processes:

1. A goods issue in the issuing plant
2. A goods receipt in the receiving plant

ifferences between Stock Transport Orders (STO) and Transfer Postings

Movement types are different

351 & 101 for STO
303 & 305 for TP
Stock types at receiving plants are different
In Transfer (MARC-UMLMC) for TP
Stock in Transit (MARC-TRAME)for STO
For STO, 351 and 101 is group together where for TP there is no link between 303 and 305
STO requires more transactions than TP
STO must be configured for the sending plant / receiving plant where no plant specific configuration exists for TP
STO is based on Stock Transport Order (type of Purchase Order). Where no purchasing document is used for TP
STO can be initiated with a Planned Order or Purchase Requisition
Planning (MRP) can be used to initiate movements, but only STOs

Without STO
One step stock transfer Move type 301.
Two step stock transfer ( MM only) Move type 303& 305.

Using STO without delivery:

doc.type: UB
Itemcategory U
GI:351, GR:101 stock in transit

STO with delivery:

doc.type: UB
Itemcategory U
GI:641in 2 step and 647 in 1 step, GR:101 stock in transit
delivery type:NL and Schedule line NN

STO with delivery and billing:

doc.type: NB and doc type in MM - IV is RE
Itemcategory Blank
GI:643 in 2 steps and 645 in 1 step GR:101 stock in transit CC
delivery type:NLCC , Schedule lin NC , billing type:IV

the accounting entries in the STO process with in the company code.
Supplying plant account +Debt (BSX)
Receiving plant Account _Credit (BSX)

If you maintain Std. Price for your Material in receiving Plant and if there is any price diff. bet. Mat

for Cross Company Code or Inter company code

At the supplying plant

stock account Debit _ BSX

Cost of Goods Sold Credit + GBB-VAY

At Receiving plant

stock account Debit - BSX

GR/IR Clearing Credit WRX
Subcontracting Process

Transaction event Keys Which Hit during Subcontractor

ubcontracting Process

Creation of Subcontracting PO (ME21N)

Transfer Posting of Components to Subcontractor (Mvmt Type - 541) (MB1B/ME2O/MIGO)
Creation of Subcontracting Challan w.r.t. Transfer Posting Doc (J1IF01)
Goods Receipt w.r.t. Subcontracting PO and Refer Subcontracting Challan at the time of GR (MIGO) {GR
Reconciliation of Subcontracting Challan (J1IFQ)
Completion of Subcontracting Challan (J1IF13)
Generation of Annexure IV (J1IFR)

Transaction event Keys Which Hit during Subcontractor

BSX Change in stock acc. Debit Acc.
WRX acc.GR/IR Cle.acc Credit Acc.
FRL External Service Acc. Debit Acc.
BSV acc. Credit Acc.Change in stock
GBB - Debit acc. Offsetting entry for stock posting
PRD acc. Some time Credit &some time debit
VBO Acc.for consumption from stock of material provided to Vendor
In 541:
(BSX) Stock A/c of Assembly - Dr
(BSV) Change in Subcon Stock - Cr
(FRL) Subcontracting Charges - Dr
(WRX) GR/IR Clearing A/c - Cr
(BSX) Stock A/c of Components - Cr
(GBB-VBO) Consumption A/c of Components - Dr
At 101 :
Stock A/c of Assembly - Cr.
Change in Subcon Stock - Dr.
Subcontracting Charges - Dr
GR/IR Clearing A/c - Dr.
Stock A/c of Components - Cr.
Consumption A/c of Components - Dr.
Copy and Adopt the Qty with Batch
CHECK AND POST (Note down the Material Doc No)
For Confirmation of the Posting done (Stock Provided to Vendor)
T Code: J1IF01
1) Material Doc No
SAVE. (Note down Challan No)
Print 57F4 Challan
T Code: J1IF11
1. Challan No
2. Select the print immediately check box
3. Select the print option
T Code: MIGO
Header Data:
1. Delivery note No
2. Challan No ( More Data in Excise Tab)
Item Detail:
1. Delivery Note Qty
2. Receiving Qty
3. Storage loc
4. For component select the stock determination tab which appears in front of the Qty (Repeat this process for all
CHECK AND POST (Note down the Material Doc No)
T Code : J1IFQ
1) G R material doc no
2. Sub Con challan no, item no & year
3. Select Reconcile Tab
4. Enter the Qty (in item detail tab)
T Code : J1IF13
1. Select option Complete
T Code: J1IFR

The Subcontracting Cycle is that when Po is created with item category L, the goods is transferred to subcon
When GR is done automatically, 543 movements? takes place which take care of the consumption of

Variations in Subcontracting: -
U can use MB04/MIGO to do adjustments due to variation after GR
1. Scrap handling
2. Over/Under Consumption of Components
3. Return of Assembly to Subcontractor for Reprocessing
4. 57F4 Challan processing (Reconciliation, Reversal, Recredit, Completion, etc...)

Refer link;

Subcontracting Process

Subcontracting without Payment of Duty

- Creation of Subcontracting PO (ME21N)
- Transfer Posting of Components to Subcontractor (Mvmt Type - 541) (MB1B/ME2O/MIGO)
- Creation of Subcontracting Challan w.r.t. Transfer Posting Doc (J1IF01)
- Goods Receipt w.r.t. Subcontracting PO and Refer Subcontracting Challan at the time of GR (MIGO)
- Reconciliation of Subcontracting Challan (J1IFQ)
- Completion of Subcontracting Challan (J1IF13)
- Generation of Annexure IV (J1IFR)
Master Data
- MM01- Material Masters for Components and FG
- XK01 - Vendor Master (Subcontractor)
- CS01 - BOM for FG
- ME11 - Purchase Inforecord for Subcontracting
Configuration: -
- Go to SPRO > Logistics - General > Tax on Goods Movements > India > Account Determination > Sp
- And then go to SPRO > Logistics - General > Tax on Goods Movements > India > Account Determina
Apart from above also do following configuration for Subcontracting;
- SPRO > Logistics - General > Tax on Goods Movements > India > Business Transactions > Subcontr
Here maintain following;
- SPRO > Logistics - General > Tax on Goods Movements > India > Business Transactions > Subcontr
Here maintain following
- J1I9 - maintain No range for object "J_1I57FC" for series group
e combination and Excise Group
Steps for Returns Order
1. ME21N - Create a Returns PO (Activate "Returns" indicator for PO line item)
2. MIGO - Goods Receipt > Purchase Order (Returns PO) (Here system will hit Mvmt type "161" and you can also select U
3. J1IS Excise Invoice Other Movements
Here click on create button to create an outgoing excise invoice and reverse the CENVAT Amount.
Here put all details as below and Press Enter.
Ref.doc.type - MATD
Doc Number - Material document No of 161 Mvmt
Doc Year
Series Group
Excise Group
Here check BED, ECS and SECess values to be reversed and click on Save button to post the excise invoice.
4. J1IV - Post and Print Outgoing Excise Invoice.
5. MIRO - Credit memo w.r.t. Returns PO.

if LIV and Payment to Vendor is not done then

1. MIGO > Return delivery > Material Document (Here refer GR doc, system will determine Mvmt type "122" automatically)
2. J1IS Excise Invoice Other Movements
Here click on create button to create an outgoing excise invoice and reverse the CENVAT Amount.
Here put all details as below and Press Enter.
Ref.doc.type - MATD
Doc Number - Material document No of 122 Mvmt
Doc Year
Series Group
Excise Group
Here check BED, ECS and SECess values to be reversed and click on Save button to post the excise invoice.
3. J1IV - Post and Print Outgoing Excise Invoice.
4. MIRO - Credit memo w.r.t. Original PO.
Import Procedure

1. First you create Import PO and input all the Import duties in PO in ME21N.
Here specify Import Duties in PO and assign the Customs Vendor to all these condition types./
2.Then you do LIV for Customs Office in MIRO (Here you enter all the Import duties as per Bill of Entry) and following A/c e

Customs Office A/c - Cr (Vendor Recon A/c)

Customs Duty Clearing A/c - Dr (OBYC - ZCC)
CVD Clearing A/c - Dr (OBYC - ZCV)

3. Then Capture Bill of Entry in J1IEX.

4. Then you do GR w.r.t. Import PO (MIGO), Accounting Entry will come as following;

Stock A/c - Dr (OBYC - BSX)

GR/IR Clearing A/c - Cr (OBYC - WRX)
Customs Clearing A/c - Cr (OBYC - ZCC)

5. Post Bill of Entry in J1IEX, and Accounting Entry will come as following;

CENVAT Receivable A/c (BED, ECS, SECess and ADC) - Dr (From Account Detmn of GRPO with Sub Trans Type - IP)
CVD Clearing A/c - Cr (From Compnay Code Settings of Excise)

6. MIRO - For Import Vendor

Import Vendor - Cr (Recon A/c)

GR/IR Clearing A/c - Dr (WRX)

7. MIRO - For Clearing Agent

condition types for Import Duties

JCDB IN:Basic Custom Duty
JECV IN : Ed Cess on CVD
J1CV IN : H&SECess on CVD
JEDB IN : Ed Cess on BCD
JADC Addnl Duty of Custom

SPRO > Logistics - General > Tax on Goods Movements > India > Basic Settings > Determination of Excise Duty > Mainta

CVD cond. - CV1

ECS cond. - JECV
ADC cond. - JADC

Also do account determination in OBYC as your have already done for MIRO of Customs Invoice.
Also check in SPRO > Logistics - General > Tax on Goods Movements > India > Basic Settings > Maintain Company Code
Purchase cycle
1. Purchase Requistation : First Purchase requisation has to made to purchase department wheever the product need by the user or p
2. Once the purchase requested, then the purchase department will search for the materail, where available and when available. That
3. After the search of material is over, then look for who are the parties , who is going to supplies the material in competitive rate. The
4. After that Tender process done through Tcode-ME41.
5. After finilisation of Tender, the vendor selected and purchase order issued. The Creation of Purchase Order is ME21N. There will no
6. Once the purchase order issued, then by the terms of PO, the vendor will supply the materials. The Receipt of Good (GR) , done th
The Entry will be
Inventory account - dr-
GR/IR Clearing a/c - cr-
Purchase a/c - dr-
Purchase offset a/c -cr-
GR/IR clearing is a intermediate account, will be used to connect cost and vendor.
In GR/IR clearin a/c - 1. Assesable Value
2. Sales Tax
3. Surcharge
ie., Other than Cenvat Clearing will be there.
7. After the receipt of material, the Good Receipt along with Invoice Bill submitted to the Excise person handling Central Excise matter
The entry will be
1. Cenvat Clearin a/c - cr
RG23a Part II a/c - dr
RG23a Part II cess a/c - dr.
8. From the Excise person , the bill move towards the person who passing the bills for payment. He will do the Invoice Receip First th
The entry will be
Vendor a/c - Cr-
Gr/IR Clearing a/c - dr
Cenvat Clearing a/c- dr.
9. After finalisation of Invoice receipt, the bill is for Payment process mode through F-53.
The entry will be
Vendor a/c - dr
Bank a/c - cr.
Steps to Split Valuation


1. Activate Valuation
2. Create Valuation Category
3. Create Valuation Types
4. Link Categories > Types
5. Link valid Valuation Categories to Plant

1. Activate Split valuation for a material

(Add Valuation Category in material master)

2. Create Accounting views for every valuation type

Using Split Valuation in transactions

1. Create Purchase Order

2. Goods Receipt / Goods Issue
3. Physical Inventory
4. Stock Overview

Normally a material would be linked to a single valuation class in a valuation

area (plant in case of Sanmar). This would mean that it can be valuated at one
price and that it would have a single stock account.
In order to valuate a material differently within the same valuation area,
depending on its origin e.g. Domestically procured, imported, legacy
inventory in-house manufa etc. the concept of split valuation is employed
Such material is identified by a single material number, but is identified
additionally by valuation types like the ones listed below.
Independent valuation data can be maintained for each of the valuation
types of the material.
Release Procedure
lease Procedure

Create Characteristics & link to comm. structure (CEBAN for PR) CT04
Create Class & link to characteristic CL01
Create Release Groups & link to class
Create Release Codes
Release Indicator
Set up strategies
- Strategies & Codes
- Prerequeirements
- Status
- Assign values for strategies
Set overall / item for doc type (PR only)

The release procedure with classification deals with the purchase requisition it can be released both at item lev
Coming to release procedure without classification can also be used for purchase requisition which is used for i

1. When we use SA ?

Scheduling Agreement can be used if

1 Your Vendors are strategic and the prices have been approved and fixed
for a period of time.
2 You have a fairly accurate idea about the quantity you are going to
procure from these Vendors.
3 You do not want to have the hassle of raising POs every once in a
4 You also wish to have a control of the Inventory through MRP in the
system through Source List.

If all these answers are yes then you can use Scheduling Agreement for
procurement of both direct and indirect material for your company.

2. Is it involved PO ?
PO is not involved in this but procurement is through daily/weekly/monthly
or datewise Delivery Schedules

3. How to GR the SA material ?

GR is done through MIGO and is just like PO - GR processing

what is the t-code ?

4. How the step by step process of the SA ?
ME 31L - Create Scheduling Agreements
ME32L/33L - Change / Disply SA

ME84 - Release of SA

ME38 - Create Delivery Schedules

ME39 - Display Del Sch.

I hope above helps


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Unknown User replied Dec 22, 2003
Hello Sharmistha ( and Vic ) ,

You did quite a job listing al this details .

2 corrections .

a. Creating the delivery schedules can be manually in ME38 as you said ,

but they can be created automatically just by running MRP , which

creates the lines .

b. You first create the delivery schedules in ME38 , and only then

you make the release by ME84 .

Best Regards
Hence 8 code is not required.

Yes you may use 8 codes, for creating many strategies, and the strategy will be max. of 6 codes due

Hope it is clarifies.

There is no change in standard SAP on max. 8 codes.

eleased both at item level and at the header level.

ition which is used for item level release only. All other external documents cannot be released with classification. These tw
max. of 6 codes due to 6 level of release.

classification. These two procedures are mutually exclusive to say, it has to be decided in favor of one of them only.
ne of them only.
Third-Party Processing

1) Creation of third party sales order

2) Generation of automatic purchase reqisition throught the configuration of schedule line CS in SD.(s
please dont maintain mrp type in the material that it will determin CS directly.
in the tcode VOV6,please check whether the document type NB is maintained for CS.
This will created auto PR).
3) You can check the PR Number in the schedule line tab of sales order.PR requirement will not be ava
4) Manually create a PO for vendor with item category S.
5) There will be no GR in this case.
6) Create an invoice verification document.
7) Create an invoice from the SD side w.r.t Sales order.

Entering a Sales Order

You enter a third-party item in a sales order. The system automatically creates a purchase requisition item for each third-party it
Entering a Purchase Order to Vendor
You enter a purchase order with a third-party item with reference to the requisition third-party item.
Delivering Goods to Customer
The vendor supplies the goods to the customer. To document this step in the system, you can post a statistical goods receipt in
Entering a Vendor Invoice
The vendor sends you an invoice. You enter the invoice receipt in Invoice Verification. The invoice receipt is necessary before a
Creating a Billing Document for the Customer
In SD, you create a billing document for the sales order. Depending on the Customizing settings (whether or not the billing-relev
ty or on the basis of the quantity specified in the vendor invoice. If the customer is billed on the basis of the order quantity, you can create th
quantity, you can create the billing document immediately after the sales order is entered. If the customer is billed on the basis of the quanti
on the basis of the quantity specified in the vendor invoice, you cannot create the billing document until the vendor invoice has been entere
r invoice has been entered in Invoice Verification.
Consignment Cycle The Accounting Generate
Create Cosnignment Info record using Me11 with proper Tax code 1.Goods Receipt
maintain output condition record for KONS, No Accounting Movement
no invoice verification done
create Po with item category K, process GR 2.Goods Issue
but settlement is done through MRKO transaction Consumption A/C: DR
Consignment (Liability Ac

We can make field mandatory. We want to make a default value to a Particular field3.Consignment Settlemen
Use transaction variant. Transaction SHD0 and then Transaction SE93 Consignment (Liability Ac
Vendor Account A/C: CR
We want to change the calculation of Moving Average Price. We know that the same is in MBEW-VERPR and tw
Any Goods receipt or issue (in case of split valuated material) changes Moving Average price depending upon
For Example:
Material X is using split valuation by origin:
Malaysia : MAV 60 USD - total stock 100 units
India: MAV 50 USD - total stock 200 units
Total stock 300 units MAV 53.33
Here , goods issues will also affect the global MAV, despite not changing MAV from origin country.
Moving average price can not be changed for any material,,, There is no such T-Code for that

SPRO->Logistic-General->Batch management->Shelf life expiration data

1.Maintain Period indicator

2.Set Expiration date check
- For Plant
- Movement type mark the shelf life indicator .

During creation of Material you can set like in MM01.....In Gen Plant data/storage 1 view, Maintain req

1) Create a Purchase Information Record with Consignment category / type.

Maintain the Net price and tax code in PIR.

2) Create a Purchase Order with ME21N and save.

3) Make a GR for the Material

4) Bring the Consignment stock into Unrestricted Stock using MB1B trxn code use 411K.

5) Maintain condition record for Output in MRM1 trxn code.

6) Settle the Vendor Consignment in MRKO trxn code. Just give Vendor and select the Consignment op
7) Once you confirm that the MRKO trxn is showing correct information in diaplay mode, then change
he Accounting Generated After GR/GI/Settlement are:
.Goods Receipt
o Accounting Movement

.Goods Issue
onsumption A/C: DR
onsignment (Liability Account ) Payable: CR

.Consignment Settlement
onsignment (Liability Account ) Payable: DR
endor Account A/C: CR
is in MBEW-VERPR and two transactions to consider - MRHR, MB01. Is there a transaction to change MAV or all the places
age price depending upon the valuation type which is used when posting the goods issue. You have to go through all the tr

gin country.

ge 1 view, Maintain required values in the Field of .....Total Self Life ( lets say 90days) and in Min. Remaining she

use 411K.

ect the Consignment option and in Processing tab select display opton and execute.
lay mode, then change processing mode to Settle mode and execute.
e MAV or all the places it is needed?
to go through all the transactions involving those!

n Min. Remaining shelf life ( is 60days).....