Business Blueprint: by Kpit Cummins Infosystems

Project SHAKTHI Blue Print Document – Materials Management
Business Blueprint
Submitted
To
Consul GROUP
By
KPIT CUMMINS INFOSYSTEMS
MATERIALS MANAGEMANT
DOCUMENT RELEASE NOTICE September, 2013
Version 1.0
Customer: Consul Consolidated
Project : Shakthi
Confidential 1 of 59
DOCUMENT DETAILS:
Name Version No. Description
Materials Management 2.0 This document outlines the Materials Management business processes
of CONSUL and how these will be implemented in SAP.
DOCUMENT DETAILS:
Revision Action taken Preceding New Revision

Number (add/del/chg) Page No. Page No. Description
These are confidential documents. Unauthorized access or copying is prohibited.
PREFACE
Purpose of this Document
The purpose of this document is to record the business process requirements of CONSUL CONSOLIDATEDand outline
the requirement mapping in SAP.
Intended Audience
The intended audience for the Materials Management Business Blueprint is the employees of CONSUL
CONSOLIDATEDand other persons authorized by CONSUL who are in any way related to Business Processes
involving Materials Management.
Related Documents/ References
Documents referred to prepare Materials Management Business Blueprint Document are as follows:
Sl. No. Title Version Author Remarks
01 Business Blue Print 2.0 Tazim Hashmi

02 Business Processes Flow Tazim Hashmi Business Model Annexure
03 KDS Tazim Hashmi
04 Gap Analysis Tazim Hashmi
Sign Off
Role Name Signature Date
Functional Consultant Mr. Tazim Hashmi
Project Manager-KPIT Mr. Ravichandra
Core Team Member Mr. Jaishankar
Process Owner Mr. Ganesh Kini
Process Owner Mr. Rashik Kataria
GM - Finance Mr. Vishwanathan V
Project Manager-CONSUL Mr. Vijaya Krishna KS
CFO Mr. Yogeshwaran N
CEO Mr. Sriram Ramakrishnan
Contents
ACRONYMS ............................................................................................................................ 8
GENERAL EXPLANATION .................................................................................................... 9
1.0 ORGANIZATION STRUCTURE .................................................................................10
1.1 CLIENT: .......................................................................................................................10
1.2 COMPANY CODE: .....................................................................................................11
1.3 PLANT: ........................................................................................................................11
1.4 STORAGE LOCATION: .............................................................................................13
1.5 PURCHASING ORGANIZATION:..............................................................................14
1.6 PURCHASING GROUP:.............................................................................................14
2.0 MASTER DATA FOR MATERIALS MANAGEMENT ...............................................15
2.1 MATERIAL MASTER .................................................................................................16
2.2 VENDOR MASTER .....................................................................................................20
2.3 SERVICE MASTER ....................................................................................................22
2.4 PURCHASE INFO RECORD......................................................................................22
2.5 SOURCE LIST ............................................................................................................23
3.0 MATERIAL VALUATION............................................................................................23
4.0 BUSINESS PROCESSES ..........................................................................................24
4.1 PROCESS- PURCHASE REQUISITION ...................................................................24
4.1.1 GENERAL EXPLANATIONS (AS – IS) .....................................................................24
4.1.2 SOLUTION IN SAP (TO BE) ......................................................................................24
4.1.3 BUSINESS MODEL: ...................................................................................................25
4.2 PROCESS- REQUEST FOR QUOTATION ...............................................................25
4.2.3 BUSINESS MODEL: ...................................................................................................26
4.3 PROCESS-MAINTAIN QUOTATION & PRICE COMPARISON ..............................26
4.3.3 BUSINESS MODEL : ..................................................................................................27
4.4 PROCESS-PURCHASE ORDER ...............................................................................27
4.4.3 BUSINESS MODEL: ...................................................................................................28
4.5 INBOUND ENTRY / GATE ENTRY ...........................................................................31
4.5.1 GENERAL EXPLANATION (AS-IS) ..........................................................................31
4.5.3 BUSINESS MODEL: ...................................................................................................32
4.6 PROCESS- GOODS RECEIPTS................................................................................32
4.6.3 BUSINESS MODEL: ...................................................................................................33
4.7 PROCESS- GOODS ISSUE .......................................................................................33
4.7.3 BUSINESS MODEL: ...................................................................................................34
4.8 PROCESS- GOODS RETURNS (VENDOR RETURN) ............................................34
4.8.3 BUSINESS MODEL: ...................................................................................................35
4.9 PROCESS- STOCK TRANSFER ...............................................................................35
4.9.3 BUSINESS MODEL: ...................................................................................................37
4.10 PROCESS- PHYSICAL INVENTORY........................................................................37
4.10.3 BUSINESS MODEL: ...................................................................................................38
4.11 PROCESS-VENDOR EVALUATION .........................................................................39
4.11.3 BUSINESS MODEL: ...................................................................................................40
4.12 VENDOR DOWN PAYMENT......................................................................................40
4.12.3 BUSINESS MODEL: ...................................................................................................41
4.13 INTEGRATION ............................................................................................................41
4.13.1 SAP MM MODULE INTEGRATION ...........................................................................41
4.13.2 PRODUCTION-PLANNING ........................................................................................41
4.13.3 SALES & DISTRIBUTION ..........................................................................................41
4.13.4 FINANCE/CONTROLLING .........................................................................................42
4.13.5 QUALITY MANAGEMENT .........................................................................................42
5.0 KEY DATA STRUCTURE:- .............................................................................................42
PLANT & BRANCHES .................................................................................................................42
MATERIAL MASTER...................................................................................................................43
MATERIAL TYPE: ORGANIZATIONAL LEVEL .................................................................................... 43
MATERIAL GROUP: BASIC DATA 1 ............................................................................................. 44
PURCHASING GROUP: PURCHASING DATA ..................................................................................... 47
MATERIAL VALUATION CLASS: ACCOUNTING DATA 1 ......................................................................... 47
PURCHASING DOCUMENT ......................................................................................................47
REQUEST FOR QUOTATION .................................................................................................... 47
RFQ NUMBER RANGE.......................................................................................................... 48
PURCHASE REQUISITION TYPE & NO. RANGE ............................................ ERROR! BOOKMARK NOT DEFINED.
PURCHASE ORDER TYPE ....................................................................................................... 48
PURCHASE ORDER: NUMBER RANGE ........................................................................................... 48
PURCHASE ORDER RELEASE PROCEDURE ............................................................................48
EXCISE GROUP........................................................................................................................48
CONDITION TYPES .................................................................. ERROR! BOOKMARK NOT DEFINED.
VENDOR EVALUATION ...........................................................................................................49
VENDOR ACCOUNT GROUP ...................................................................................................49
7.0 GAP ANALYSIS ..............................................................................................................51
Acronyms
Code Description
CONSUL CONSUL CONSOLIDATED
MM Material Management
QM Quality Management
PP Production Planning
PM Plant maintenance
VM Vendor master
PO Purchase Order
PR Purchase Requisition
SD Sales and Distribution
LE Logistics Execution
MM Material Master
HR Human Resource
GENERAL EXPLANATION
Company Profile - CONSUL Group is one of the leading Energy Equipments manufacturers in India based at Chennai,
Tamil Nadu. This organization is in the industry for more than 3 decades. The product range is under Power solution
which includes Inverters, UPS, Stabilizers, K rated Transformers, Micro Controller, and Frequency Inverter, Solar PCU /
Inverter and many more in power solutions. The brand “CONSUL” is quite famous in India. The organization split into
multiple legal entities which manufactures and markets power solution equipments across India. This organization has
service engineers positioned across India to cater after sales service requirements.
Business Blue Print - This is the document where we define the business processes and operating procedures for your
company to support the corporate growth initiatives and also to adapt to the new SAP system that will be implemented.
SAP Blueprint is the architectural foundation for the success of our project. This is where we define your business
requirements, set expectations from the new system and gain alignment of the key business stakeholders with the
capabilities and expected output from the new SAP system.
In a Business Blueprint, we create a project structure in which relevant business scenarios, business processes and
process steps are organized in a hierarchical & tabular structure to specify how your business processes should run in
your SAP systems.
The project documentation and the project structure that you create during the Business Blueprint will be integral part in
the configuration and test organization phases.
1.0 ORGANIZATION STRUCTURE

SAP enterprise structure is organizational structure that represents an enterprise in SAP system. It consists of some
organizational units which, for legal reasons or for other specific business-related reasons or purposes, are grouped
together. Organizational units include legal company entities, sales offices, profit centers, etc. Organizational units handle
specific business functions.
The structure of an enterprise is represented in the SAP System by the following organizational levels:
1.1 Client:
Client is a group or combination of legal, organizational, business and/or administrative units with a common purpose.
Example: a corporate group.
 Client is the highest hierarchical level in SAP system

 Client represents a corporate group in SAP Enterprise structure
 Client is identified in the system by 3- digit numeric code ( Ex: 100 )

 Several company codes can be uniquely assigned to a client.
 Data maintained at Client level is valid across all other organizational levels
1.2 Company Code:

The company code is the organizational unit that allows you to structure your enterprise from a financial accounting
perspective. This level represents an independent accounting unit within a client
Example: a subsidiary company, member of a corporate group.
 Company code is smallest organizational unit within the client

 Company Code is a legal entity & independent accounting unit.
 Each company code has its own balance sheet and its own profit and loss statement.
 Company code is defined as 4-digit Alpha numeric key ( Ex: SAP1)
 Company Code is organizational unit prepared by FI Module Consultant
S. No. COMPANY CODE DESCRIPTION

1 1000 CONSUL CONSOLIDATED Pvt. Ltd.
2 2000 Megatech Equipments Pvt. Ltd.
1.3 Plant:
In SAP, a Plant is defined as “an organizational logistics unit that structures the enterprise from the perspective of
production, procurement, plant maintenance and materials planning. A Plant is thus a manufacturing facility or branch
within the company.
The plant is an operating area or branch within a company.The plant is embedded in the organizational structure as
follows:
• The plant is assigned to a single company code. A company code can have several plants.
• Several storage locations in which material stocks are managed can belong to a plant.
• A single business area is assigned to a plant and to a division.
• A plant can be assigned to several combinations of sales organization and distribution channel.
• A plant can have several shipping points. A shipping point can be assigned to several plants.
• A plant can be defined as a planning plant.
• Plant is recommended to use as valuation area for Material valuation
S. COMPANY EXCISE
No. CODE PLANT DESCRIPTION APPLICABILITY
MANUFACTURING PLANTS
1 1000 1001 Unit -1 Excise Registered
2 1000 1002 Unit -2 Excise Registered
3 1000 1003 Unit -3 NSC service centre
4 1000 1004 Unit -4, BWH 1
5 1000 1005 Unit -5, BWH 2
6 2000 2001 Unit- 1 Pune Prd Excise Registered
7 2000 2002 Unit-2 Pune Srv

BRANCHES
1101
01 1000 Delhi Excise Registered
1102
02 1000 Indore Excise Registered
1103 Cochin
03 1000
1104 Secunderabad
04 1000
1105 Kolkatta
05 1000
1106 Coimbatore
06 1000
1107 Belgaum
07 1000
1108 Mumbai
08 1000
1109 Madurai
09 1000
1110 Ahmedabad
10 1000
1111 Vijayawada
11 1000
1112 Ghaziabad
12 1000
1113 Lucknow
13 1000
1114 Chennai
14 1000
1115 Madurai
15 1000
Bhiwandi - Thane
16 1000 1116
Visakhapatnam
17 1000 1117
Bangalore
18 1000 1118
Jaipur
19 1000 1119
Pune
20 1000 1120
Patna
21 1000 1121
Raipur
22 1000 1122 Excisable
Pune
Bengaluru
Ahmedabad
Lucknow
Bhopal
24 2000 2101 Non excisable
1.4 Storage Location:

The Storage Location is an organizational unit that allows the differentiation of material stocks within a Plant. Stocks are
managed only on a quantity basis and not on a value basis at storage location level.Storage Location is the lowest
organizational level in MM and it helps to differentiate the stocks
A storage location has the following attributes:
• Defined as 4 digit alpha numeric key in the SAP system ( Ex: SL01)
• There may be one or more storage locations within a plant
• A storage location has a description and at least one address
• There will be always at least one storage location defined for one plant
• It is possible to store material data specific to a storage location
• Physical inventory is carried out at the storage location level
• Stocks are managed only on a quantity basis and not on a value basis at storage location level.
S.NO Storage Location Description
01 GF01 RM Storage location
02 GF02 Packing Storage location
03 GF03 Consumable
04 GF04 Work in progress
05 GF05 SFG storage location
06 GF06 FG Storage location
07 GF07 IT storage Location
08 GF08 Stationery
09 GF09 Tools Storage Location
10 GF10 Block Storage location
11 GF11 VR Storage location
12 GF12 Customer Returns Storage Location
13 GF13 Scrap
14 GF14 Trading Materials (Only in branches)
NOTE: -DFL at Pune as instructed by management there will be separate storage locations as above starting with
DF.
Storage Location for Service Engineers holding stock is missing.
1.5 Purchasing Organization:

Purchasing Organization is an organizational unit which is responsible for procuring materials or services for one or more
plants and for negotiating general conditions of purchase with vendors. The purchasing organization assumes legal
responsibility for all external purchase transactions.
Since there is only one central purchase organization in CONSUL group, central purchase organization will be defined as
“1000” in SAP for CONSUL group.
• Purchasing organization procures materials and services based on the requirements

• Purchasing organization negotiates terms and conditions with the vendor
• Purchasing responsibility is on the head of purchasing organization
• Defined as 4 digit numeric key in the system
1000 - Consul Formatted: No bullets or numbering
• 2000 - Megatech
1.6 Purchasing Group:

The purchasing organization is further subdivided into purchasing groups (buyer groups), which are responsible for day-
to-day buying activities.
 A purchasing group is represented by a client-unique 3-digits alpha-numeric key for a buyer or a group of buyers
who are involved in some purchasing activities. The purchasing group is responsible for material procurement and
dealing with the vendors.
We can use purchasing group to:
- Represent a buyer or a group of buyers that are responsible for Purchasing activities at specific location.
- Be a parameter in purchasing documentssuch as Purchase Requisition, Purchase Order, release procedure etc.
By doing so, we can set different release/approval procedure for different purchasing documents with different
purchasing group.
- Be an authorization object, so we can restrict a specific role can only create/edit/display purchasing document
with a specific purchasing group
Group the purchasing documents in purchasing reports. We can generate report of purchasing documents per
purchasing group.
100 - Consul
200 - Megatech
101 - FI Service
102 - IT Service (As many as Cost Centers)
201 - FI Service
202 - IT Service (As many as Cost Centers)
2.0 Master data for Materials Management

In standard SAP to optimize the purchasing activities, you need to maintain certain information in the form of master data.
You can maintain different set of information for each organizational level or you can extend this information to more than
one organizational level. Appended below are some of the examples of master data which is being used very frequently in
purchasing:
1. Material Master
2. Vendor Master
3. Service Master
4. Purchasing Information Record
5. Source List
All Master data Codification (Number Range) and finalization of the same for entire CONSUL Group is under progress.
Once the final data is ready, the same will be incorporated in SAP.
2.1 Material Master

The material master contains all the information on all materials that a company procures, produces, stores, and sells. It is
the company's central source of information for a material related to several applications/ functional areas on the basis of
material type and business involved.
Purpose:
The material master is used by all components in SAP logistics.The integration of all material data in a single database
object eliminates redundant data storage. The application areas/functional areas such as purchasing, inventory
management, material requirements planning (MRP), invoice verification, and so on, can all use the same data.
In the SAP Logistics System, the data contained in the material master is required, for example, for the following
functions:
• In Purchasing for ordering.

• In Inventory Management for goods movement postings and physical inventory.
• In Invoice Verification for posting vendor invoices.
• In Sales and Distribution for sales order processing.
• In Production Planning and Control for material requirements planning, scheduling, and work scheduling.
Data Structure: The material master has a hierarchical structure resembling the organizational structure of a company.
Some material data is valid at all organizational levels, while other data is valid only at certain levels.
 General material data/Basic data applicable to the entire company is stored at client level. This includes, for
example, material group, base unit of measure, material descriptions, and conversion factors for alternative units
of measure.
 The information for a material in material master is maintained at plant level.
 The accounting information of a material in material master is maintained at valuation area level.
 The valuation area is an organization level at which the materials are valuated. The valuation area can be a plant
or it can be a company code.
Master data is common across all plants. In addition to the basic description, Purchase Order Text will be maintained for
the materials. All the existing materials will be loaded to the SAP system; to avoid duplication of master data a central
department will create new materials. CONSUL group will be operating in a multi-plant environment in SAP R/3. For
common materials, master data in more than one plant will have to be maintained on an ongoing basis. The ownership
and corresponding process for maintenance of these master data has to be finalized by CONSUL Group in the
Realization Phase and documented.
When we create a material master record, it is required to classify the material according to material type.
Material Type
Material type groups’ together material with the same basic attributes, for example, raw materials, semi-finished products,
or finished products. When creating a material master record, materials are assigned to a material type. Material type
determines whether the material number can be assigned internally or externally and the number range from which the
material number is drawn.
The following are the material types proposed for CONSUL Group:
S.NO Material type
1 Raw Material
2 Packing Material
3 Stationery
4 Semi Finished Goods
5 Finished Goods
6 IT Material
7 Consumables
8 Tools
9 Asset
10 Scrap
11 Trading (Only for FG)
Material Group
A key that is used to group together several materials or services with same attributes. Each material can belong to only
one material group. Material groups can be used to restrict the scope of analysis and search specifically for material
master records via search helps. Material groups can access necessary reports.
Material groups can be assigned to the Valuation class for the automatic determination of the G/L at the time of the PO
creation.Material Groups are still to be identified, and the same will be incorporated in SAP.
SL.NO ITEM DESCRIPTION NEW ID
A RAW MATERIALS/CONSUMABLES
1 ALIMINIUM WINDING WIRES ALW

2 FANS FAN
3 CASTINGS CAS
4 BATTERIES BAT
5 BATTERY RACKS BTR
6 PLASTIC PARTS PLA
7 BOBBINS BOB
8 BUCK BOOST TRANSFORMERS BBT
9 BUSBARS BUS
10 ELECTRONIC COMPONENTS-MISC ECM
11 CABINETS CAB
12 CABLES CBL
13 CAPACITORS CAP
14 CHANNELS/ANGLES CHA
15 CHOKES CHK
16 CIRCUIT BREAKERS MCB
17 CONNECTORS CNN
18 CONTACTORS CON
19 COPPER WINDING WIRES CUW
20 CURRENT TRX/SENSORS CTS
21 DIODES DIO
22 HARDWARES HRD
23 HEATSINKS HTS
24 HYLAM ITEMS HYS
25 ICS ICS
26 IGBTS IGB
27 INSULATION TAPES/SHEETS INS
28 LABELS/STICKERS LAB
29 LAMINATIONS LAM
30 LAMINOR PLATES LMP
31 LUGS/CRIMP PINS LUG
32 MANUALS MAN
33 METAL PARTS MET

34 MISCELLANEOUS MIS
35 PANEL METERS METR
36 CABLE ASSEMBLIES CBA
37 MOTORS MOT
38 OIL--FIRST FILL OIL
39 PACKING MATERIALS PAC
40 PCB ASSEMBLED PCA
41 PCB PLAIN PCP
42 RELAYS RLY
43 RESISTORS RES
44 RUBBER PARTS RUB
45 SCR SCR
46 SMC ITEMS SMC
47 SLEEVES SLE
48 SOLAR PRODUCTS SOP
49 STATIC CONVERTER STC

50 SHEETS SHT
51 SWITCHES SWT
52 TRANSFORMERS TRX
53 TRANSISTORS TRN
54 TERMINAL BLOCKS TER
55 VARIAC VAR
56 VARIAC PARTS VAP
57 WIRING ACCESSORIES WAC
58 WIND TURBINE & COMPONENTS WIN
59 FERRITE CORES FER
60 FUSE FUS
61 STABILIZER STB
62 INVERTER NVI
63 DC DC CONVERTER DDC
64 ISOLATION TRANSFORMER TRI
B SFG
STATIC FREQUENCY CONVERTER SFC

SERVO VOLTAGE STABILIZER SVS
VARIAC ASSEMBLY VAR
TRANSFORMER TRX
FEED BACK ASSEMBLY FED
POWER MODULE ASSEMBLY POM
BUCK BOOST TRANSFORMER ASSEMBLY BBT
UIT ASSEMBLY UIT
C TOOLS , IT PARTS AND FIXED ASSETS

1 TOOLS TOL
2 ITPARTS ITP
3 FIXED ASSETS/CAPITAL GOODS FEA
D FINISHED GOODS
1 UPS 1/1 ML11X
2 UPS 1/1T ML11T
3 UPS 3/1 ML31X
4 UPS 3/1T ML31T
5 UPS 3/3 ML33X
6 UPS 3/3T ML33T
7 UPS 1/1 FREQUENCY CONVERTER ML11F
9 UPS 1/1 ATM SURE ML11A
10 SERVO CONTROLLED VOLTAGE STABILIZER 1/1 VS11X
11 SERVO CONTROLLED VOLTAGE STABILIZER 1/1T VS11T

16 SERVO CONTROLLED VOLTAGE STABILIZER 3/1U VS31U
18 VOLTAGE REGULATION TRANSFORMER 1/1 VR11X
19 VOLTAGE REGULATION TRANSFORMER 1/1T VR11T
24 VOLTAGE REGULATION TRANSFORMER 3/1U VR31U
26 INVERTER 1/1 IN11X
28 INVERTER ELOS IN3EL
29 INVERTER ERD IN3ER
30 SOLAR MPPT SOMPT
31 SOLAR INVERTER 1P SOIN1
33 SOLAR UPS 1P SOUP1
35 SOLAR PCU 1P SOPC1
37 SOLAR POWER GENERATING SYSTEM SOPGS
38 AMF CONTROLLER AMFC
39 IPEM 1P IPEM1
40 IPEM 2P IPEM2
41 IPEM 3P IPEM3
42 ENERGY SAVER/CONSERVER 1P ENS1P
2.2 VENDOR MASTER

Vendor master record is the data record containing all the information necessary for any contact with a certain vendor, in
particular for carrying out business transactions. Data in the vendor master record is organized under general data,
company code data and purchasing organization data.
Purpose:
It serves as data record for maintaining the list of vendors from whom we procure materials/services and whose
accounting data can be maintained for payments.Vendor master records have the following structures:
It consists of data like Vendor name, address, reconciliation account, payment terms, Schema group etc. The vendor
master will be created centrally and the required purchasing data will be maintained in the respective purchasing
organization level. The order currency and the terms of payment will be in the display field in the purchasing organization
data. If the master data currency differs from the purchasing currency it can be changed in the Purchase order.
Business partners have a number of different functions, described as partner functions, in connection with your company.
You use partner functions to define the rights and responsibilities of each partner type in a business transaction. When
you sell or order goods, for example, your business partners can assume partner functions such as: Ordering Address,
Goods supplier, Alternate payee etc.
Vendor master data is integrated with finance and material management modules.
You must assign each vendor whose data you wish to store in the SAP System to an account group.The account group
determines, for example, that only those screens and fields of the vendor master record that are needed for the relevant
role of your business partner are displayed and ready to accept user input.
Vendor Account Group

Vendor account group is used for grouping of vendors. When you create a vendor master record, you are required to
enter an account group. The account group determines:
- How numbers are assigned (externally by you or internally by the system) and the number range from which they
are assigned
- Whether the vendor is a one-time vendor
- Which fields appear on the screen and whether the user can or must make an entry
The vendor account groups and the corresponding number ranges are given below. All the vendor numbers are internally
managed. The number ranges are common for both the company codes and the purchasing organizations.
Number Number
Account Group Account Group Master Ranges Ranges Number Formatted Table
Name data details From TO Series
YBVD Vendors Domestic RM 100000 199999 1
YBVF Vendor Foreign RM 200000 299999 2
YBAC Vendor Plant to Plant 300000 399999 3
YBAS Vendor Assets 400000 499999 4
YBTR Vendor Logistics 500000 599999 5
YBVS Vendor Services 600000 699999 6

YBVO Vendor Others 700000 799999 7
YBVN Vendor One Time 800000 899999 8
YBVE Vendor Employees 900000 999999 9
Vendor Local Trading
YBDT 1100000 1199999 11
YBIT Vendor Foreign Trading 1200000 1299999 12
2.3 SERVICE MASTER

Services that are procured on a regular basis can be created as a service master. In the service master service
specifications will be maintained.
A service master record contains the following principal information for the unique description of a service:
- Service number
- Service category
- Descriptive texts (short and long text)
- Base unit of measure
- Material group
- Valuation class
Service masters can be referenced at the time of creation of the Purchase requisition and all the Purchasing documents.
The service master record counts as part of the master data within External Services Management and serves as a
source of data for you to draw upon when creating service specifications. This enables you to save time and reduces the
frequency of errors, since you need only enter the complete service descriptions in the service master record once.
The service master is used by all agencies in a Logistics System. The integration of all service data in a single database
object eliminates redundant data storage. In the Logistics System, the data contained in the service master is required, for
example, in Purchasing for ordering and in Invoice Verification for posting invoices.
Service number is a number uniquely identifying a service master record, and thus a service. User can have internally
(system) generated service number or can have his own externally entered number. User will be identifying service with
maximum 18 digit alphanumeric code having description of 40 Characteristics.
Service Part numbers are mandatory.
2.4 PURCHASE INFO RECORD

Definition: “Purchasing Info record provides the option of storing data about a vendor and material as the master data at
purchasing organization and plant level.”
Material and Vendor Master is pre-requisite for a purchasing info record.
You can have more than one purchasing information record for a single material if it is being supplied by more suppliers,
one for each supplier. Information maintained in purchasing information records is used as default data in documents
such as purchase orders.
Organizational Levels
A purchasing information record can be maintained at following organizational levels:
 General Data: General Data includes Vendor data, order unit and administration data.
 Purchasing Organization Data: Purchasing Organization data includes prices and conditions and purchase order
texts.
 Plant Data
The info record allows buyers to quickly determine: which materials have been previously offered or supplied by a specific
vendor and which vendors have offered or supplied a specific material
Info Record processing will be applicable for all material types and for all types of Vendors if commercial terms and source
of supply is stable for a considerable period. Data for the Info record will be defaulted to Purchase Order including the
Pricing conditions, Tax code, Unit of Order with conversion factor to SKU, Text etc. which can be edited if required in
Purchase Order.
Consul requires workflow on Purchasing Info Record. Separate spreadsheet will be mailed.
2.5 Source List

A Source list specifies the allowed and disallowed sources of a material for a certain plant within a predefined period.
Each source is defined by means of a source list. A Source list is also used to define a source as fixed for a period. In this
case the system takes this source as a preferred source over that period. It is also used to define a vendor/source as
blocked over a period of time; it can also be used as an aid in an optimized purchase.
Source list will be used to maintain the preferred vendor list. If a contract exists it will be maintained in the Source list.
Currently in some of the plants preferred vendors exist for supplying certain parts, these will be maintained in the source
list in SAP so MRP can automatically determine the source of supply.
Source List is not required at present.
3.0 Material Valuation

Material Valuation is part of Materials Management (MM). This includes the following application areas:
• Purchasing
• Inventory Management
• Invoice Verification
Material Valuation determines or records the stock value of a material. The stock value is calculated using the formula:
Stock value = stock quantity x material price
Thus, if the stock quantity or the material price changes, the stock value changes.
Material Valuation Area
Organizational level at which material valuation is carried out. You can define a valuation area asfollows:
 Valuation area = company code
All stocks of a particular material in this company code are valuated together.
 Valuation area = plant
The stocks of a particular material in this individual plant are valuated together. Stocks inother plants are not included in
this valuation area.
SAP recommends Plant as valuation area.
SAP offers two methods of inventory valuation and product costing: standard cost and (weighted) moving
average. The method to be used is identified on the material master level, thus different materials can use
different methods within a plant. Although SAP does not restrict this choice, moving average is typically used
only on purchased materials.
Integration
Material Valuation represents a link between Materials Management (MM) and Financial Accounting (FI), since
it updates the G/L accounts in Financial Accounting.
4.0 Business Processes
4.1 Process- Purchase Requisition
4.1.1 General Explanations (AS – IS)

A purchase requisition is a request or instruction to the purchasing department to procure a certain quantity of a material
or a service so that it is available at a certain point in time.
An item of a requisition contains the quantity and delivery date of the material to be supplied or the quantity of the service
to be performed. It is an internal document. It is not used outside the enterprise.
4.1.2 Solution in SAP (TO BE)

Purchase Requisition is created with the required information. For, any requisition of Material, material has to be defined
in Material Master with appropriate information.
PR’s are subjected to release. PR’s can be released collectively or individually. Using the Release Procedure, approval
can be set up for purchase requisitions. Release procedure will be used for the approval of the purchase requisitions for
overall release. Depending on purchase requisition types, fields can be controlled.
Amendments/Changes can be made for purchase requisitions.
Purchase Requisition type “NB” will be for purchase requisitions generated by MRP and there won’t be any release
strategy on it. For other types of requisitions there will be release procedure department wise for services.
PR release strategy work flow to be given. PR is mandatory. No release strategy for Service PR only Formatted: Font: Not Italic
Formatted: Font: Not Italic
4.1.3 Business Model:
4.2 Process- Request for Quotation

A request for quotation (RFQ) is an invitation extended to a vendor by a purchasing organization to submit a quotation
(bid) for the supply of materials or performance of services.

Request for Quotation (RFQ) are prepared and send to the suppliers through email at consul. Vendor rates are evaluated
compared to select vendor.

A Request for Quotation (RFQ) consists of the RFQ header and the items.RFQ header contains general information of the
RFQ, such as the vendor’s address. Items contain the total quantities and delivery dates for the materials or services
specified in the RFQ. RFQ contains collective no, material, quantity, requirement date and also specification of materials.
Purchase request is the requirement document created manually or through the MRP run. Purchase request is further
processed to create Purchase order document.
4.3 Process-Maintain Quotation& Price Comparison

A quotation is an offer by a vendor to a purchasing organization regarding the supply of materials or performance of
services subject to specified conditions. A quotation is legally binding on the vendor for a certain period.

The quotation is the vendor’s response to a request for quotation issued by a purchasing organization. A quotation
consists of items in which the total quantity and delivery date of an offered material or service is specified. Comparative
statement is made based on the quotations received. In CONSUL, comparison statement is made manually.
Quotation is the reply from vendor for our enquiry regarding the price and quantity and supply schedule
confirmation.When the quote is received from the vendor, with reference to the request for quotation, quotes can be
maintained.
Price Comparison is used to analyze the Bids submitted in response to a specific bid invitation. The comparison list ranks
the quotations by item from lowest to highest.If quotation is submitted in foreign currency it can be converted to local
currency. The decision to select a vendor or a reject a vendor can be based on the price comparison list generated by the
system and by checking the vendors technical competency (specifications, delivery terms), which will be done outside the
system. If vendors are negotiated, the same can be maintained with valid effective period & revised comparison can be
done against the same quotations.
4.3.3 BUSINESS MODEL :
4.4 Process-Purchase Order

A purchase order is a formal request or instruction from a purchasing organization to a vendor or a plant to supply or
provide a certain quantity of goods or services at or by a certain point in time.

A purchase order is an official and binding document issued to a vendor authorizing the expenditure of funds for goods
and services. A purchase order sets forth the descriptions, quantities, prices, discounts, payment terms, date
of performance or shipment, other associated terms and conditions, and identifies a specific seller.

A purchase order (PO) consists of a document header and a number of items.Purchase order will be created by adopting
items from an existing requisition, RFQ, or contract. The purchase order is created in the SAP System. Purchase orders
will be on defined on type of procurement. Subcontracting PO, Scheduling agreements, Service PO and contracts can
be created for a timeline to fix the quantity and price from the vendor.Using the Release procedure, approvals can be set
for POs or other purchasing documents. For R&D division @ Pune production unit there will be separate document type
for procurement as ZR&D. Similarly all procurement @ DFL will be done on document type ZDFL and it will have separate
storage locations.
Release Strategy Workflow to be given
Asset Procurement:-
4.5 Inbound Entry / Gate Entry

This is an activity at the factory gate to confirm the receipt of the material and is treated as a gate entry.
4.5.1 General Explanation (As-IS)

Consul is currently maintaining the manual gate entry in registers at gate and the information of the quantity material
and the supplier is captured at the gate.

Inbound entry is a standard functionality of SAP and the GR will happen with reference to Inbound delivery No. which
captures the information of material received.
4.6 Process- Goods Receipts

A goods receipt (GR) is a goods movement with which the receipt of goods from a vendor or from production is posted. A
goods receipt leads to an increase in Warehouse stock.

A goods receipt (GR) is a goods movement with which the receipt of goods from a vendor or from production is posted. A
goods receipt leads to an increase in Warehouse stock. Goods Receipt Note is a document used to record the inward
entry of the any goods received at the premises of the organization. The document normally consists of the details of
Quantity Received, Quantity Rejected and Quantity Accepted, Supplier Name & P.O. No. The practice of preparing Goods
Receipt is important as it promotes proper inventory control and restricts the unwanted, unauthorized entry of goods in the
organization. Vendor returns and Customer returns all will be treated as Goods receipt in SAP.
Client needs GR to happen with the reference of gate entry no. for all the procurements from the vendors.

Goods receipts for Purchase Orders, goods receipts for production orders, subsequent adjustment of subcontract orders,
initial entry of stock balances in to SAP, vendor returns and customer returns all will be treated as Goods receipt in SAP.
During the material movement, material document is generated for all movements. Relevant accounting and controlling
documents are also created for relevant movement types.
There are materials, which are accepted in to your stores subject to Quality testing. The testing and acceptance will be
done through QM module.
Goods receipts for the stores can be posted to different stock types:
- To GR blocked stock
- Quality Stock
- To Unrestricted stock
Inventory management is part of the MM module and is fully integrated in the entire logistics system. Materials are
procured from external or internal sources on the basis of the requirements determined by Material Planning. The
deliveries are entered in inventory management as a goods receipt. The materials are stored and managed under
inventory management, until it is delivered to customers or is used for internal purposes (production).
Goods Receipt will happen with reference to Inbound delivery no. for the procurements from vendor.
Supplier Batch Number & Serial Numbers (like Batteries) has to be activated for high value items
4.7 Process- Goods Issue

A goods issue (GI) is a goods movement with which a material withdrawal or material issue, a material consumption, or a
shipment of goods to a customer is posted. A goods issue leads to a reduction in Warehouse stock.

Goods receipt is the process of receiving materials in to the storage location.A goods issue is a goods movement that is
used to post the internal use of material, the issuing of material and the shipment of goods to a customer. A goods issue
results in a decrease of stock in the warehouse.
- Issues to a cost center or project

- Material staging for production
- Delivery of goods to customers

Goods Issue posts a material withdrawal leading to reduction in stock. Goods Issue can be against a purchase order
when the material is issued for stock transfer to another plant. Goods issue can also be for production, projects and
consumption etc. The movement type enables the system to find predefined posting rules as to how the accounts of the
financial accounting system (stock and consumption accounts) are to be posted and how the stock fields in the material
master record are to be updated.The Inventory Management system supports the following types of goods issues:
1. Withdrawal of material for production orders

2. Scrapping and withdrawal of material for sampling
3. Return deliveries to vendors
4. Other types of internal staging of material
5. Deliveries to vendors without the involvement of the SD Shipping component
4.8 Process- Goods Returns (Vendor Return)
The goods return is used to return delivered goods back to the vendor. For example, you may return goods if the
delivered goods are faulty. When you create a goods return, the goods are issued from the warehouse and the quantities
are reduced.

This process is used for returning material to vendor, which is received on purchase order due to quality or quantity
objections. Rejection of material will be decided through quality check.Rejected material is stored as “Vendor Return” in
the receipt store and then sent back to vendor.

If you want to return delivered goods to the vendor for some reason (for example, due to poor quality or because they are
damaged), you can use this function to return the goods, even if you have already posted the goods receipt.
Posting a Return Delivery with Reference to the Material Document (Movement Type 122). Posting a Return Delivery with
Reference to the Purchase Order (along with excise invoice). Posting a New Goods Receipt with Reference to a Return
Delivery
4.9 Process-Stock Transfer

Plant to Plant transfer between Production plant and other plants will be carried out with Stock Transfer Process. A Stock
transfer order will be created in Materials management by receiving plant for the supply of materials.

Stock transfers can occur at three different levels:
- Stock transfer from Plant to branches.
- Stock transfer from plant to plant
- Stock transfer from storage location to storage location (in the plant).
- Intercompany stock transfer.

There are three different procedures for carrying out a stock transfer:
- Stock transfer via stock transfer posting with invoicing and billing with excise.
- Stock transfer using a stock transport order interplant ( with excise transfer no billing)
You can post a stock transfer from storage location to storage location or from plant to plant.
We can monitor the stocks in transit. After the goods issue is posted at the issuing point, the stock appears "in stock
transfer" at the receiving point and is managed as such in the system.
Plant to plant Stock Transfer: Stock transport order is used to do stock transfer between two plants within
the same company code. It involves physical transfer of goods between two locations with delivery but
without any billing along with excise invoice.

Cross-Company Stock Transfer: Stock Transport order can also be used to do stock transfer between two
plants which belong to two different company codes. This involves physical transfer of goods between two
locations with delivery and billing.
4.10 Process- Physical Inventory

Physical inventory is a process of comparing, maintaining and nullifying the difference between the physical stock and the
system stock. This component allows you to carry out a physical inventory of your company’s stocks for balance sheet
purposes.

Physical Inventory management is a business process in which physical stock is matched with book (system) stock.
Cosnsul has separate physical inventory treatment for A B & C class of material.

This component allows you to carry out a physical inventory of your company’s warehouse stocks for balance sheet
purposesPhysical inventory takes place at storage location level. A separate physical inventory document is created for
every storage location.Following two procedures are more commonly used in industry:
 Periodic Inventory (usually Annual Inventory count)
 Cycle Counting
In Annual physical inventory, all materials are counted once in a year on a pre-determined date. On this date, all materials
are blocked for any inventory movement till the physical inventory count is complete. This is more common for Plant /
Storage locations which do not hold too much inventory.
In cycle counting, all materials need not be treated the same way. It allows fast moving materials to be counted more
frequently than slow moving materials or high value items to be counted more frequently than low value items. A cycle
counting indicator is set in material master which determines for a given plant, how frequently the material has to be
counted, as in, once a year, twice a year, thrice a year and so on.Regardless of the physical inventory procedure, the
process of physical inventory can be divided into three phases: Physical inventory preparation, Inventory count recording
and Posting inventory differences.
4.11 Process-Vendor Evaluation

Vendor evaluation is the process of evaluating the vendors. It’s used for evaluating the vendor based upon the various
criteria

Vendor Evaluation is used to evaluate Vendors based on different criteria. This evaluation may be useful in negotiations
with the vendor. Vendor evaluation will enable to you choose the most appropriate vendor for a specific requirement and
supports you in the continuous monitoring of existing supply relationships.
Vendor evaluation is the process of evaluating the vendors on the basis of following main criteria: Price, Quality, Delivery
and Service.

The Vendor Evaluation component helps you select sources of supply and facilitates the continual monitoring of existing
supply relationships. It provides you with accurate information on prices, and terms of payment and delivery. By
evaluating vendors, you can improve your enterprise's competitiveness.
Vendor evaluation is always evaluated for:

• purchasing organization
• vendor
Each time an evaluation is processed, the vendor gets an overall score, which is determined from the scores of the Main
Criteria with the application of a weighting key. At consul for vendor evaluation Delivery and Quality will be the parameter
for vendor evaluation.
In the SAP System, Vendor Evaluation is completely integrated into the MM Purchasing component within Materials
Management. This means that information such as delivery dates, prices, and quantities can be taken from purchase
orders.
Vendor Evaluation also uses data from the Quality Management component, such as the results of incoming inspections
or quality audits.
Vendor Evaluation accesses basic Materials Management data, Inventory Management data (such as goods receipts),
At consul vendor rating will happen on two parameters Quality (40%) and Delivery (60%).
4.12 Vendor Down payment

In real time whenever there will be an advance given to a vendor against a PO, it is sanctioned by the accounts
department and given by the cash department.

At times Vendor ask some Advance Payments against Purchase Orders. After Receiving the Down payment
vendor will process the Purchase order. This can be Handled Thru Vendor Down Payment Process in SAP.

The vendor down payment request will be created in the system with the reference to the purchasing document.
4.13 Integration
4.13.1 SAP MM Module Integration

The MM module is fully integrated with other modules of SAP R/3. The continuous exchange of information with other
application areas in the R/3 System ensures a real time database. Fully integrated processing helps us to optimize
Production Planning and Execution within the company.
4.13.2 Production-Planning
It is integrated in the areas like Material requirement Planning, Receipts/issues against production orders, Availability
check for stocks etc. Material requirement Planning is done based on Stocks, expected receipts, expected issues. It
generates planned orders or purchase requisitions which can be converted to purchase orders/Contracts. Inventory
Management is responsible for staging of the components required for production orders. The receipt of the finished
products in the Warehouse is posted in Inventory Management.
4.13.3 Sales & Distribution

It is integrated in the areas like Delivery, Availability Check, Stock transfers requirements etc. As soon as a sales order is
created, we can initiate a dynamic availability check of stocks on hand. When the delivery is created, the quantity to be
delivered is marked as "Scheduled for delivery". It is deducted from the total stock when the goods issue is posted.
Purchase order can be directly converted to delivery for a stock transfer requirement.
4.13.4 Finance/Controlling
It is integrated in the area like Material Valuation, Vendor payments, Material costing etc. Whenever any inventory posting
are done, it updates the G/L accounts online in the background. Logistics invoice verification will create vendor liability in
vendor account immediately on posting the document. Any advance given against the purchase order updates the Po
history. For every inventory posting there is corresponding CO document to update profit center accounting reporting.
Finish goods costing is link through MM & PP. Procurement of capital item cost can be directly booked against asset
number.
4.13.5 Quality Management

It is integrated with QM for Quality inspection at Goods Receipt, In process inspection etc. In the case of a goods
movement, the system determines whether the material is subject to an inspection operation. If so, a corresponding
activity is initiated for the movement in the Quality Management system. Based on quality parameters vendor evaluation is
done.
5.0 KEY DATA STRUCTURE:-
PLANT & BRANCHES
Sr. No. Plant / Branch Plant Code
1 Chennai 1 (Old Mahabalipuram) 1001

2 Chennai 2 1002
3 Chennai National Service Centre 1003
4 Chennai Bonded WH 1 1004
5 Chennai Bonded WH 2 1005
6 Pune Prd Unit 2001
7 Pune Service centre 2002
Delhi Dealer Registration
8 1101
Indore Dealer Registration
9 1102
COCHIN
10 1103
Secunderabad
11 1104
Kolkatta
12 1105
Coimbatore
13 1106
Belgaum
14 1107
Mumbai
15 1108
Madurai
16 1109
17 Ahmedabad 1110
18 Vijayawada 1111
19 Ghaziabad 1112
20 Lucknow 1113
21 Chennai sales Office 1114
22 Bhiwandi Thane 1115
23 Vishakhapatnam 1116
24 Bangalore 1117
25 Jaipur 1118
Pune Excisable
26 1119
Pune
27 1120
Raipur
28 1121
Patna
29 1122
Bengaluru
30 1123
Lucknow
31 1124
Bhopal
32 2101
MATERIAL MASTER
MATERIAL TYPE: ORGANIZATIONAL LEVEL
Materials with the same basic attributes are grouped together and assigned to a material type. This allows
you to manage different materials in a uniform manner in accordance with your company’s requirements.
Material Type Description

ROH Raw Material
HALB Semifinished material
FERT Finished product
ZCAP Capital Items
VERP Packaging Material
HIBE Consumables
FHMI Tools
ZSTR Stationery
ZITM IT Material / Other Materials
ZSRP Scrap
ZCAP Asset Material
MATERIAL GROUP: BASIC DATA 1
Key that you, use to group together several materials or services with the same attributes, and to assign
them to a particular material group.
SL.NO ITEM DESCRIPTION NEW ID
A RAW MATERIALS/CONSUMABLES
1 ALIMINIUM WINDING WIRES ALW

2 FANS FAN
3 CASTINGS CAS
4 BATTERIES BAT
5 BATTERY RACKS BTR
6 PLASTIC PARTS PLA
7 BOBBINS BOB
8 BUCK BOOST TRANSFORMERS BBT
9 BUSBARS BUS
10 ELECTRONIC COMPONENTS-MISC ECM
11 CABINETS CAB
12 CABLES CBL
13 CAPACITORS CAP
14 CHANNELS/ANGLES CHA
15 CHOKES CHK
16 CIRCUIT BREAKERS MCB
17 CONNECTORS CNN
18 CONTACTORS CON
19 COPPER WINDING WIRES CUW
20 CURRENT TRX/SENSORS CTS
21 DIODES DIO
22 HARDWARES HRD
23 HEATSINKS HTS
24 HYLAM ITEMS HYS
25 ICS ICS
26 IGBTS IGB
27 INSULATION TAPES/SHEETS INS
28 LABELS/STICKERS LAB
29 LAMINATIONS LAM
30 LAMINOR PLATES LMP
31 LUGS/CRIMP PINS LUG
32 MANUALS MAN
33 METAL PARTS MET

34 MISCELLANEOUS MIS
35 PANEL METERS METR
36 CABLE ASSEMBLIES CBA
37 MOTORS MOT
38 OIL--FIRST FILL OIL
39 PACKING MATERIALS PAC
40 PCB ASSEMBLED PCA
41 PCB PLAIN PCP
42 RELAYS RLY
43 RESISTORS RES
44 RUBBER PARTS RUB
45 SCR SCR
46 SMC ITEMS SMC
47 SLEEVES SLE
48 SOLAR PRODUCTS SOP
49 STATIC CONVERTER STC
50 SHEETS SHT
51 SWITCHES SWT
52 TRANSFORMERS TRX
53 TRANSISTORS TRN
54 TERMINAL BLOCKS TER
55 VARIAC VAR
56 VARIAC PARTS VAP
57 WIRING ACCESSORIES WAC
58 WIND TURBINE & COMPONENTS WIN
59 FERRITE CORES FER
60 FUSE FUS
61 STABILIZER STB
62 INVERTER NVI
63 DC DC CONVERTER DDC
64 ISOLATION TRANSFORMER TRI
B SFG
STATIC FREQUENCY CONVERTER SFC

SERVO VOLTAGE STABILIZER SVS
VARIAC ASSEMBLY VAR
TRANSFORMER TRX
FEED BACK ASSEMBLY FED
POWER MODULE ASSEMBLY POM
BUCK BOOST TRANSFORMER ASSEMBLY BBT
UIT ASSEMBLY UIT
C TOOLS , IT PARTS AND FIXED ASSETS

1 TOOLS TOL
2 ITPARTS ITP
3 FIXED ASSETS/CAPITAL GOODS FEA
D FINISHED GOODS
1 UPS 1/1 ML11X
2 UPS 1/1T ML11T
3 UPS 3/1 ML31X
4 UPS 3/1T ML31T
5 UPS 3/3 ML33X
6 UPS 3/3T ML33T
9 UPS 1/1 ATM SURE ML11A
28 INVERTER ELOS IN3EL
29 INVERTER ERD IN3ER
30 SOLAR MPPT SOMPT
37 SOLAR POWER GENERATING SYSTEM SOPGS
38 AMF CONTROLLER AMFC
39 IPEM 1P IPEM1
40 IPEM 2P IPEM2
41 IPEM 3P IPEM3
PURCHASING GROUP: PURCHASING DATA

Key for a buyer or a group of buyers, who is/are responsible for certain purchasing activities.
Sr. Code Description Remark
01 100 Purchasing Group –

Chennai
02 101 Pur GRP IT SRV
102 PUR GRP FI SRV
03 200 Purchasing Group –

Pune
04 201 Purchasing Grp IT SERV
202 Purchasing Grp FI SERV
MATERIAL VALUATION CLASS: ACCOUNTING DATA 1

Default value for the valuation class for valuated stocks of this material, Allows the stock values of materials of the same
material type to be posted to different G/L accounts.
Material Type Description Valuation Class Description

ROH Raw Material 4011 For Domestic ROH
4021 For Imported ROH
HALB Semi finished 3011 Internal Production
3012 External Production
FERT Finished Goods 2011
HIBE Consumables / Operating Supplies 7011
FHMI Tools 5111
VERP Packaging 4091
ZCAP Capital 7925
ZSTA Stationary Material 6111
ZITM IT Material 8111
SCRP Scrap 2811
ZSRV Service Material
HAWA Trading Goods
PURCHASING DOCUMENT
REQUEST FOR QUOTATION
A request for quotation (RFQ) is an invitation extended to a vendor by a purchasing organization to submit a
quotation (bid) for the supply of materials or performance of services.
Code Description Remark
AN Quotation object
RFQ NUMBER RANGE

Sr. Type From To
01 AN(CONSUL) 1100000000 1199999999
02 ZMT(MEGA) 2100000000 2199999999
03 ZDFL(DUTY FREE) 3100000000 3199999999
04 ZR&D (RESEARCH) 3200000000 3299999999
PURCHASE ORDER TYPE

Formal request or instruction from a purchasing organization to a vendor or a plant to supply or provide a
certain quantity of goods or services at or by a certain point in time.
Sr. Code Description Remark
01 NB Standard PO (Domestic)
02 ZSR Service Purchase Order
PURCHASE ORDER: NUMBER RANGE

Purchase Order
New Doc.
Type Description From TO
NB Standard PO 4000000000 4099999999
ZSR Service PO 4200000000 4299999999
PURCHASE ORDER RELEASE PROCEDURE

You use this component if you wish to set up approval procedures for purchase requisitions or other
purchasing documents. Under such a procedure, if a purchase requisition or external purchasing document
fulfills certain conditions, it has to be approved before it can be processed further. This process of
approving is replicated in the SAP System by the "release procedure".
Consul management will provide.
EXCISE GROUP
A unit within an excise registration, in India, which keeps its own set of excise records. Whereas the excise
registration reports to the excise authorities, the excise group is a purely internal organizational unit. Each
excise group keeps records of all transactions that have to be reported to the excise authorities. When the
time comes to present these records to the authorities, the excise registration compiles the information
from all of its excise groups.
Sr.No Excise Group Number Description

1 01 Chennai Unit-1
2 02 Chennai Unit-2
3 20 Pune Unit-1
4 11 Delhi Branch
5 12 Indore Branch
6
7
VENDOR EVALUATION
The system evaluate the vendor by computing a points score for the vendor based on the weightings given to the criteria
Sr. Criteria Weightage
1 On time Delivery 60
2 Quality 40
VENDOR ACCOUNT GROUP

The account group determines, for example, that only those screens and fields of the vendor master record that are needed
for the relevant role of your business partner are displayed and ready to accept user input.
The account group determines:
 The type of number assignment and the number range from which the account number used by the system to identify
the vendor is assigned.
 Whether or not a one-time vendor is involved
Account
Account Group Master Number
Group Name data details Number Ranges From Number Ranges TO Series
Vendors
YBVD Domestic RM 100000 199999 1
Vendor Foreign
YBVF RM 200000 299999 2
Vendor Plant to
YBAC Plant 300000 399999 3
YBAS Vendor Assets 400000 499999 4
Vendor
YBTR Logistics 500000 599999 5
Vendor
YBVS Services 600000 699999 6
YBVO Vendor Others 700000 799999 7
Vendor One
YBVN Time 800000 899999 8
YBVE Vendor 900000 999999 9
Employees
Vendor Dom
YBDT Trading 1100000 1199999 11
Vendor Imp
YBIT Trading 1200000 1299999 11
7.0GAP ANALYSIS
Gap Analysis No. 1
Process Name Workflow on Purchasing Info Record

Transaction Code ME11
As Is Info record is a relationship of plant vendor material and tax code
To-be SAP Standard – No ; Workaround – No ;
Gap Analysis Client needs a release strategy on info record
Remarks Consul needs info record to be released by 2 3 authorised people before price starts flowing
on the purchase order
Action to be taken Will follow up with workflow consultant however advised client to handle it throughT code
authorisation
Status Wish list To be incorporated
Gap Analysis No. 2
Process Name Purchase Requisition for RM,PM,Spare Parts

Transaction Code ME51N
As Is Purchase Requisition (PR) is prepared by stores person and sent to Purchase Dept. to procure
materials/services
To-be SAP Standard – Yes ; Workaround – No ;
Gap Analysis Not Applicable- standard practice in SAP.
Remarks Purchase requisition for production order will be created automatically by the system from
MRP run and other requisitions can be created manually for requirements.
Action to be taken Standard SAP best practice to be followed.
Status To be Incorporated
Gap Analysis No. 3
Process Name Request for Quotation for RM,PM,Spare Parts

As Is A request for quotation (RFQ) is an invitation extended to a vendor by a purchasing
organization to submit a quotation (bid) for the supply of materials or performance of
services.
Gap Analysis Process improvement
Remarks
Gap Analysis No. 4
Process Name Quotation evaluation

As Is Quotation is a response from the vendor for a particular RFQ which contains Prices &
Conditions at which the vendor will supply/perform Goods/Services.
Remarks
Gap Analysis No. 5
Process Name Price Comparison- Quotation

As Is Compare the prices from all quotations received as a result of a competitive bidding process
using the price comparison list . The comparison list ranks the quotations by item from lowest
to highest price.
Remarks
Gap Analysis No. 6
Process Name Purchase Order for RM,PM, Spare parts (Domestic)

Transaction Code ME21N / ME31L / ME31K
As Is Purchase Orders are created to procure the materials/services
Remarks Consul requires PR to be mandatory for Po creation and Tax code and price will come from
Info Record and will be in display mode in PO (ME21N) screen.
Gap Analysis No. 7
Process Name Purchase Order for Import Process (procurement at Bonded WH)
As Is Purchase Orders are created to procure the materials from outside India
To-be SAP Standard – NO ; Workaround – YES ;

Remarks The material will be procured @ vendor managed Bonded ware house and will be custom
cleared as and when required and material will be transferred to production units from BWH
on STO on second bill of entry.
Status To be incorporated along with development.
Gap Analysis No. 8
Process Name Purchase Order for Services

As Is Purchase Orders are created to procure services
To-be SAP Standard – YES ; Workaround – NO ;
Remarks Services can be procured cost centre specific with deptt wise release procedure.
Status To be incorporated
Gap Analysis No. 9
Process Name Purchase Order for Capital Equipment process

As Is Purchase Orders are created to procure Assets
Remarks Budget availability should be checked while creating PO for capital items
Gap Analysis No. 10
Process Name Purchase Order for Contracts

Transaction Code ME31K
As Is Contracts are created for longer term agreements
Remarks PO will be created w.r.t Contracts.

Gap Analysis No. 11
Process Name Purchase Order for Scheduling Agreements

Transaction Code ME31L
As Is Scheduling Agreements are created for longer term agreements and delivery of material is
done based on the schedule
Remarks Schedule delivery Lines are generated for material procurement w.r.t scheduling agreement
Gap Analysis No. 12
Process Name Purchase Order for Subcontracting

As Is Subcontracting PO is created for Job Work Process
Remarks Challan 57FC (57F4) creation, monitoring and closure w.r.t PO and GR
Gap Analysis No. 13
Process Name Purchase Order for Stock transfer

As Is Purchase Order is created to transfer the stock from one plant to other plant and to other
company
Remarks Client wants to Stock transfer material with billing and delivery in integration with Sales
Gap Analysis No. 14
Process Name Vendor Evaluation

As Is Vendor Evaluation is used to evaluate Vendors based on different criteria. This evaluation
may be useful in negotiations with the vendor. Vendor evaluation will enable to you choose
the most appropriate vendor for a specific requirement and supports you in the continuous
monitoring of existing supply relationships.
Remarks
Gap Analysis No. 15
Process Name Gate Entry / Inbound Process

Transaction Code VL31N
As Is Client is maintaining gate entry manually.
Remarks Gate entry should be captured before GRN process
Gap Analysis No. 16
Process Name Goods Receipt w.r.t Inbound entry

Transaction Code MIGO
As Is A goods receipt is the physical inbound movement of goods or materials into the warehouse.
It is a goods movement that is used to post goods received from external vendors or from in-
plant production. All goods receipts result in an increase of stock in the warehouse. Goods
receipts are done with respect to Raw/Packing /Spare part Materials
Remarks GR will be done w.r.t to inbound delivery No. which will be treated as gate entry and in case
of STO material will be taken as inward through outbound delivery no.
In case of batteries serial nos. will be maintained at the time of GR. Along with the shelf life
for the calculation of warranty on the system. Client needs Barcode to be incorporated at the
time of GRN of material to capture batch No. and Serial Nos.

Status To be incorporated / Upload program required to update serial nos on GR screen from excel
sheet.
Gap Analysis No. 17
Process Name Goods Issue

Transaction Code MB1A / MIGO
As Is Goods Issue is the physical issue of goods or materials from the warehouse. Goods issue
posting results in a decrease in stock in the warehouse. Goods Issues are done with respect to
Raw/Packing /Spare part Materials
Remarks Goods Issue to WIP location for production purpose.
Gap Analysis No. 18
Process Name Transfer Posting

Transaction Code MB1B / MIGO
As Is Stock transfers can occur at three different levels:
1.Stock transfer from company code to company code with PO
2.Stock transfer from plant to plant with STO PO
3.From storage location to storage location (in the plant)
Remarks Material will be stock transferred through Delivery and billing.
Gap Analysis No. 19
Process Name Goods Returns To Vendors

As Is The goods return is used to return delivered goods back to the vendor. For example, you may
return goods if the delivered goods are faulty.
Remarks Material will be returned to vendor through return PO along with Excise. For returning non
Excisable material finance will create financial invoice to handle VAT.
Gap Analysis No. 20
Process Name Physical Inventory Management

Transaction Code Mi01 / Mi04 / Mi07
As Is Physical Inventory management is a business process in which physical stock is matched with
book (system) stock. Physical Inventory component allows you to carry out a physical
inventory of your company’s warehouse stocks for balance sheet purposes.
Remarks
Gap Analysis No. 21
Process Name Material Valuation

Transaction Code
As Is Material valuation at plant level / Company code level
Remarks Materials valuation should be based on FIFO basis of Material procurement.
Gap Analysis No. 22
Process Name Inventory Level

Transaction Code MM01
As Is Inventory levels are maintained on materials depending on the consumption based planning.
Remarks Client wants to maintain the inventory levels on the material group not on material codes.
Advised will check and revert back however advised to maintain inventory on material codes
which is standard practice in SAP.
Status Wish LIST
Gap Analysis No. 23
Process Name FORM JJ

Transaction Code Development
As Is Client is sending material for Vendor return along with form JJ for VAT
Remarks Advised client to handle VAT through financial postings as JJ form is not an statuary
requirement. Advised client to handle VAT through financial postings as JJ form is not an
statuary requirement
Status ABAP DEVELOPMENT / Wish list.
Gap Analysis No. 24
Process Name Gate Entry Report

Transaction Code ABAP Development
As Is Client needs report for Gate entry w.r.t PO
Remarks Clients needs report on Inbound Delivery w.r.t PO with vendor details along with Po quantity.
Lorry details Etc.
Action to be taken Need to Discuss with ABAPER.
Gap Analysis No. 25
Process Name Document No. Ranges for PO and GRN

Transaction Code ABAP Development
As Is Client need separate Plant wise PO no. range and Plant wise GRN No. range Series.
Remarks Not possible in standard SAP will be a development with ABAPER to give plant wise No. range
for PO. Client asking for Plant wise, company code, Purchasing document type documenttype
document no. range series for PO, GR. Advised Po no. range for DFL and R&D can be handled
through document type however No. range for GR is at client level and will be commonly
shared by Consul and Megatech.
Action to be taken Need to Discuss with ABAPER.

GRN should be plant specific number ranges
Declaration
The core team and the process owners gone through this business blue print documentation and understood the contents
and agreed upon the same.
Role Name Signature Date
Core Team Member Mr. Jaishankar
Process Owner Mr. Ganesh Kini
Process Owner Mr. Rashik Kataria
GM - Finance Mr. Vishwanathan V
Project Manager-CONSUL Mr. Vijaya Krishna KS
CFO Mr. Yogeshwaran N
CEO Mr. Sriram Ramakrishnan

Business Blueprint: by Kpit Cummins Infosystems

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Project SHAKTHI Blue Print Document – Materials Management

Name Version No. Description

Revision Action taken Preceding New Revision

These are confidential documents. Unauthorized access or copying is prohibited.

Purpose of this Document

Related Documents/ References

Sl. No. Title Version Author Remarks

01 Business Blue Print 2.0 Tazim Hashmi

03 KDS Tazim Hashmi

04 Gap Analysis Tazim Hashmi

Role Name Signature Date

Functional Consultant Mr. Tazim Hashmi

Project Manager-KPIT Mr. Ravichandra

Core Team Member Mr. Jaishankar

Process Owner Mr. Ganesh Kini

Process Owner Mr. Rashik Kataria

GM - Finance Mr. Vishwanathan V

Project Manager-CONSUL Mr. Vijaya Krishna KS

CFO Mr. Yogeshwaran N

CEO Mr. Sriram Ramakrishnan

GENERAL EXPLANATION .................................................................................................... 9

1.0 ORGANIZATION STRUCTURE .................................................................................10

1.1 CLIENT: .......................................................................................................................10

1.2 COMPANY CODE: .....................................................................................................11

1.3 PLANT: ........................................................................................................................11

1.4 STORAGE LOCATION: .............................................................................................13

1.5 PURCHASING ORGANIZATION:..............................................................................14

1.6 PURCHASING GROUP:.............................................................................................14

2.0 MASTER DATA FOR MATERIALS MANAGEMENT ...............................................15

2.1 MATERIAL MASTER .................................................................................................16

2.2 VENDOR MASTER .....................................................................................................20

2.3 SERVICE MASTER ....................................................................................................22

2.4 PURCHASE INFO RECORD......................................................................................22

2.5 SOURCE LIST ............................................................................................................23

3.0 MATERIAL VALUATION............................................................................................23

4.0 BUSINESS PROCESSES ..........................................................................................24

4.1 PROCESS- PURCHASE REQUISITION ...................................................................24

4.1.1 GENERAL EXPLANATIONS (AS – IS) .....................................................................24

4.1.2 SOLUTION IN SAP (TO BE) ......................................................................................24

4.1.3 BUSINESS MODEL: ...................................................................................................25

4.2 PROCESS- REQUEST FOR QUOTATION ...............................................................25

4.2.1 GENERAL EXPLANATIONS (AS – IS) .....................................................................25

4.2.2 SOLUTION IN SAP (TO BE) ......................................................................................26

4.2.3 BUSINESS MODEL: ...................................................................................................26

4.3 PROCESS-MAINTAIN QUOTATION & PRICE COMPARISON ..............................26

4.3.1 GENERAL EXPLANATIONS (AS – IS) .....................................................................26

4.3.2 SOLUTION IN SAP (TO BE) ......................................................................................27

4.3.3 BUSINESS MODEL : ..................................................................................................27

4.4 PROCESS-PURCHASE ORDER ...............................................................................27

4.4.1 GENERAL EXPLANATIONS (AS – IS) .....................................................................28

4.4.2 SOLUTION IN SAP (TO BE) ......................................................................................28

4.4.3 BUSINESS MODEL: ...................................................................................................28

4.5 INBOUND ENTRY / GATE ENTRY ...........................................................................31

4.5.1 GENERAL EXPLANATION (AS-IS) ..........................................................................31

4.5.2 SOLUTION IN SAP (TO BE) ......................................................................................31

4.5.3 BUSINESS MODEL: ...................................................................................................32

4.6 PROCESS- GOODS RECEIPTS................................................................................32

4.6.1 GENERAL EXPLANATIONS (AS – IS) .....................................................................32

4.6.2 SOLUTION IN SAP (TO BE) ......................................................................................32

4.6.3 BUSINESS MODEL: ...................................................................................................33

4.7 PROCESS- GOODS ISSUE .......................................................................................33

4.7.1 GENERAL EXPLANATIONS (AS – IS) .....................................................................33

4.7.2 SOLUTION IN SAP (TO BE) ......................................................................................34