Sap MM Pur Manual Best PDF

USER MANUAL
Materials Management
USER MANUAL
DOCUMENT CONTROL SHEET
GENERAL INFORMATION
Project name Document name Document location

Implementation Materials Management
DOCUMENT INFORMATION
Version Filename Date Author Reviewed Changes from
by previous version
V 1.0
USER PROCEDURE MANUAL
TABLE OF CONTENTS
Error! Bookmark not defined.
1 Procurement of Stock Materials _____________________________________________________ 10
1.1 Procurement of Stock Materials – Raw Material Local / Return __________10
1.1.1 Purpose ________________________________________________________________________ 10
1.1.2 Prerequisites ____________________________________________________________________ 10
1.1.3 Material Master Record ____________________________________________________________ 10
1.1.4 Vendor Master Record ____________________________________________________________ 24
1.1.5 Purchasing Info Record____________________________________________________________ 34
1.1.6 Source List______________________________________________________________________ 41
1.1.7 CIN Master Data _________________________________________________________________ 43
1.1.8 Excise Condition Record ___________________________________________________________ 52
1.2 Request for Quotation (RFQ) ______________________________________55
1.2.1 Use ___________________________________________________________________________ 56
1.2.2 Procedure ______________________________________________________________________ 56
1.2.3 Result _________________________________________________________________________ 61
1.2.4 Example________________________________________________________________________ 61
1.3 Message output: RFQ____________________________________________61
1.3.1 Use ___________________________________________________________________________ 61
1.3.2 Procedure ______________________________________________________________________ 61
1.4 Maintaining Quotation ___________________________________________64
1.4.1 Use ___________________________________________________________________________ 64
1.4.2 Procedure ______________________________________________________________________ 64
1.4.3 Result _________________________________________________________________________ 66
1.4.4 Example________________________________________________________________________ 66
1.5 Price Comparison _______________________________________________66
1.5.1 Use ___________________________________________________________________________ 67
1.5.2 Procedure ______________________________________________________________________ 67
1.5.3 Result _________________________________________________________________________ 68
1.6 Creating Purchase Requisition ____________________________________69
1.6.1 Use ___________________________________________________________________________ 69
1.6.2 Procedure ______________________________________________________________________ 69
1.6.3 Result _________________________________________________________________________ 70
1.6.4 Example________________________________________________________________________ 70
1.7 Release Purchase Requisition_____________________________________70
1.7.1 Procedure ______________________________________________________________________ 70
1.8. Assign and Process Purchase Requisition __________________________74
1.8.1 Use ______________________________________________________________________________ 74
1.8.2 Procedure ______________________________________________________________________ 74
1.8.3 Result _________________________________________________________________________ 76
1.9 Purchase Order _________________________________________________77
1.9.1 Use ___________________________________________________________________________ 77
1.9.2 Procedure ______________________________________________________________________ 77
1.9.3 Result _________________________________________________________________________ 82
1.9.4 Example________________________________________________________________________ 82
1.10. Release Purchase Order __________________________________________83
1.10.1. Procedure ______________________________________________________________________ 83
1.11Message Output__________________________________________________87
1.11.1 Use _____________________________________________________________________________ 87
1.11.2 Procedure ______________________________________________________________________ 87
1.12 Goods Receipt for Purchase Order_________________________________89
1.12.1 Use ___________________________________________________________________________ 89
1.12.2 Prerequisites ____________________________________________________________________ 89
1.12.3 Procedure ______________________________________________________________________ 89
1.12.4 Result _________________________________________________________________________ 99
Material document 5000000009 posted ______________________________________________________ 99
1.12.5 Example________________________________________________________________________ 99
1.13 Logistics Invoice Verification ____________________________________100
1.13.1 Use __________________________________________________________________________ 100
1.13.2 Procedure _____________________________________________________________________ 100
1.13.3 Result ________________________________________________________________________ 105
1.13.4 Example_______________________________________________________________________ 105
1.14 Returning Delivery _____________________________________________106
1.14.1 Use __________________________________________________________________________ 106
1.14.2 Procedure _____________________________________________________________________ 106
1.14.3 Result ________________________________________________________________________ 113
Return Delivery document created _________________________________________________________ 113
1.14.4 Example_______________________________________________________________________ 113
1.15 Excise Invoice Other Movements _________________________________114
1.15.1 Procedure _____________________________________________________________________ 114
1.15.2 Result ________________________________________________________________________ 116
1.15.3 Example_______________________________________________________________________ 116
1.16 Posting and Printing the Excise Invoice____________________________117
1.16.1 Use __________________________________________________________________________ 117
1.16.2 Prerequisites ___________________________________________________________________ 117
1.16.3 Procedure _____________________________________________________________________ 117
1.16.4 Result ________________________________________________________________________ 120
1.17 Credit Memo __________________________________________________121
1.17.1 Use __________________________________________________________________________ 121
1.17.2 Prerequisites ___________________________________________________________________ 121
1.17.3 Procedure _____________________________________________________________________ 121
1.17.4 Result ________________________________________________________________________ 127
1.17.5 Example_______________________________________________________________________ 127
1.18 Reversals / Cancellation of Invoice or Credit Memo __________________127
1.18.1 Use __________________________________________________________________________ 127
1.18.2 Prerequisites ___________________________________________________________________ 128
1.18.3 Procedure _____________________________________________________________________ 128
1.18.4 Result ________________________________________________________________________ 133
1.18.5 Example_______________________________________________________________________ 133
1.19 Reversals / Cancellation of Goods Receipt (GR) _____________________134
1.19.1 Use __________________________________________________________________________ 134
1.19.2 Prerequisites ___________________________________________________________________ 134
1.19.3 Procedure _____________________________________________________________________ 134
1.19.4 Result ________________________________________________________________________ 139
1.19.5 Example_______________________________________________________________________ 139
1.20 Reversing CENVAT Postings_____________________________________140
1.20.1 Purpose _______________________________________________________________________ 140
1.20.2 Prerequisites ___________________________________________________________________ 140
1.20.3 Procedure _____________________________________________________________________ 140
1.20.4 Result ________________________________________________________________________ 144
1.20.5 Example_______________________________________________________________________ 144
1.21 Canceling Excise Invoices _______________________________________145
1.21.1 Purpose _______________________________________________________________________ 145
1.21.2 Prerequisites ___________________________________________________________________ 145
1.21.3 Procedure _____________________________________________________________________ 145
1.21.4 Result ________________________________________________________________________ 150
1.21.5 Example_______________________________________________________________________ 150
2 Procurement of Imported Materials – Business Process Procedure________________________ 151
2.1 Procurement of Imported Materials _________________________________151
2.1.1 Purpose__________________________________________________________________________ 151
2.1.2 Prerequisites ___________________________________________________________________ 151
2.2 Creating Purchase Order __________________________________________152
2.2.1 Use _____________________________________________________________________________ 152
2.2.2 Prerequisites ___________________________________________________________________ 152
2.2.3 Procedure _____________________________________________________________________ 152
2.2.4 Result ________________________________________________________________________ 158
2.2.5 Example_______________________________________________________________________ 158
2.3 Release Purchase Order ________________________________________159
2.3.1 Procedure _____________________________________________________________________ 159
2.4 Message Output _______________________________________________162
2.4.1 Use __________________________________________________________________________ 162
2.4.2 Procedure _____________________________________________________________________ 162
2.5 CAPTURING BILL OF ENTRY ____________________________________163
2.5.1 Use __________________________________________________________________________ 163
2.5.2 Procedure _____________________________________________________________________ 164
2.5.3 Result ________________________________________________________________________ 171
2.5.4 Example_______________________________________________________________________ 171
2.6 Goods Receipt for Imported Purchase Order _______________________172
2.6.1 Use __________________________________________________________________________ 172
2.6.2 Procedure _____________________________________________________________________ 172
2.6.3 Result ________________________________________________________________________ 183
2.6.4 Example_______________________________________________________________________ 183
2.7 Logistics Invoice Verification for the Materials ______________________184
2.7.1 Use __________________________________________________________________________ 184
2.7.2 Procedure _____________________________________________________________________ 184
2.7.3 Result ________________________________________________________________________ 190
2.7.4 Example_______________________________________________________________________ 190
3 Procurement of Subcontracting Materials – Business Process Procedure __________________ 190
3.1 Procurement of Subcontracting Materials __________________________191
3.1.1 Purpose _______________________________________________________________________ 191
3.1.2 Prerequisites ___________________________________________________________________ 191
3.2 Creation of Subcontracting Purchase Order ________________________191
3.2.1 Use __________________________________________________________________________ 191
3.2.2 Prerequisites ___________________________________________________________________ 192
3.2.3 Procedure _____________________________________________________________________ 192
3.2.4 Result ________________________________________________________________________ 196
3.2.5 Example_______________________________________________________________________ 196
3.3 Message Output _______________________________________________197
3.3.1 Use __________________________________________________________________________ 197
3.3.2 Procedure _____________________________________________________________________ 197
3.4 Transfer of Components to Subcontractor _________________________199
3.4.1 Use __________________________________________________________________________ 199
3.4.2 Prerequisites ___________________________________________________________________ 199
3.4.3 Procedure _____________________________________________________________________ 199
3.4.4 Result ________________________________________________________________________ 201
3.4.5 Example_______________________________________________________________________ 201
3.5 Creation of Subcontracting Challan _______________________________202
3.5.1 Use __________________________________________________________________________ 202
3.5.2 Prerequisites ___________________________________________________________________ 202
3.5.3 Procedure _____________________________________________________________________ 202
3.5.4 Result ________________________________________________________________________ 204
3.5.5 Example_______________________________________________________________________ 204
3.6 Printing of Subcontracting Challan ________________________________205
3.6.1 Use _____________________________________________________________________________ 205
3.6.2 Procedure _____________________________________________________________________ 205
3.7 Goods Receipt for Purchase Order________________________________208
3.7.1 Use __________________________________________________________________________ 208
3.7.2 Prerequisites ___________________________________________________________________ 208
3.7.3 Procedure _____________________________________________________________________ 208
3.7.4 Result ________________________________________________________________________ 217
3.7.5 Example_______________________________________________________________________ 217
3.8 Reconciling Subcontracting Challan ______________________________218
3.8.1 Use __________________________________________________________________________ 218
3.8.2 Procedure _____________________________________________________________________ 218
3.8.3 Result ________________________________________________________________________ 220
3.8.4 Example_______________________________________________________________________ 220
3.9 Completing/Reversal/Re-credit Subcontracting Challan ______________220
3.9.1 Use __________________________________________________________________________ 220
3.9.2 Procedure _____________________________________________________________________ 221
3.9.3 Result ________________________________________________________________________ 221
3.9.4 Example_______________________________________________________________________ 222
3.10 Logistics Invoice Verification for Subcontracting Material ____________222
3.10.1 Use __________________________________________________________________________ 222
3.10.2 Procedure _____________________________________________________________________ 222
3.10.3 Result ________________________________________________________________________ 226
3.10.4 Example_______________________________________________________________________ 226
5. Procurement of External Services: Business Process Procedure ________________________ 227
5.1 Procurement of External Services – Procurement Process ____________227
5.1.1 Purpose _______________________________________________________________________ 227
5.1.2 Prerequisites ___________________________________________________________________ 227
5.2 Creating Service Master _________________________________________228
5.2.1 Use __________________________________________________________________________ 228
5.2.2 Procedure _____________________________________________________________________ 228
5.2.3 Result ________________________________________________________________________ 230
5.3 Creating Purchase Requisition ___________________________________231
5.3.1 Use __________________________________________________________________________ 231
5.3.2 Procedure _____________________________________________________________________ 231
5.3.3 Result ________________________________________________________________________ 235
5.3.4 Example_______________________________________________________________________ 235
5.4 Assign and Process Purchase Requisition _________________________236
5.4.1 Use __________________________________________________________________________ 236
5.4.2 Procedure _____________________________________________________________________ 236
5.4.3 Result ________________________________________________________________________ 239
5.6 Purchase Order__________________________________________________239
5.6.1 Use _____________________________________________________________________________ 239
5.6.2 Prerequisites ___________________________________________________________________ 240
5.6.3 Procedure _____________________________________________________________________ 240
5.6.4 Result ________________________________________________________________________ 242
5.6.5 Example_______________________________________________________________________ 243
5.7 For Releasing Purchase Order Refer User Manual of Stock Procurement 243
5.8 Message Output _______________________________________________243
5.8.1 Use __________________________________________________________________________ 243
5.8.2 Procedure _____________________________________________________________________ 243
5.9 Creation and Acceptance of Service Entry Sheet ____________________245
5.9.1 Use __________________________________________________________________________ 245
5.9.2 Procedure _____________________________________________________________________ 246
5.9.3 Result ________________________________________________________________________ 256
5.9.4 Example_______________________________________________________________________ 256
5.10.1 Use __________________________________________________________________________ 257
5.10.2 Procedure _____________________________________________________________________ 257
5.10.3 Result ________________________________________________________________________ 261
5.10.4 Example_______________________________________________________________________ 261
6 Asset Procurement – Business Process Procedure. _____________________________________ 261
6.1 Purchase Order ________________________________________________261
6.1.1 Use __________________________________________________________________________ 261
6.1.2 Procedure _____________________________________________________________________ 262
6.1.3 Result ________________________________________________________________________ 266
6.2 Release of Purchase Order ______________________________________266
6.2.1 Procedure _____________________________________________________________________ 266
6.3 Goods Receipt for Purchase Order________________________________266
6.3.2 Use __________________________________________________________________________ 266
6.3.3 Prerequisites ___________________________________________________________________ 266
6.3.4 Procedure _____________________________________________________________________ 266
6.2.3 Result ________________________________________________________________________ 269
6.4 Post Excise Invoice ____________________________________________269
6.4.1 Procedure ________________________________________________________________________ 269
6.4.2 Result ___________________________________________________________________________ 271
6.5.1 Use __________________________________________________________________________ 272
6.5.2 Procedure _____________________________________________________________________ 272
6.5.3 Result ________________________________________________________________________ 275
7 Excise Periodic Processing – Business Process Procedure_______________________________ 276
7.1 Excise Periodic Processing ______________________________________276
7.1.1 Purpose _______________________________________________________________________ 276
7.1.2 Prerequisites ___________________________________________________________________ 276
7.2 Excise Report - CENVAT Register_________________________________277
7.2.1 Use __________________________________________________________________________ 277
7.2.2 Prerequisites ___________________________________________________________________ 277
7.2.3 Procedure _____________________________________________________________________ 277
7.2.4 Result ________________________________________________________________________ 279
7.3 Excise Register Updation________________________________________________________ 280
7.3Updation of RG1 Register __________________________________________280
7.3.1 Use __________________________________________________________________________ 280
7.3.2 Prerequisites ___________________________________________________________________ 280
7.3.3 Procedure _____________________________________________________________________ 280
7.3.4 Result ________________________________________________________________________ 287
7.4 RG1 Register Extraction_________________________________________288
7.4.1 Use __________________________________________________________________________ 288
7.4.2 Prerequisites ___________________________________________________________________ 288
7.4.3 Procedure _____________________________________________________________________ 288
7.4.4 Result ________________________________________________________________________ 291
7.5 RG1 Register Print Utility ________________________________________292
7.5.1 Use __________________________________________________________________________ 292
7.5.2 Prerequisites ___________________________________________________________________ 292
7.5.3 Procedure _____________________________________________________________________ 292
7.5.4 Result ________________________________________________________________________ 295
8. PLA Register Extraction ________________________________________________________ 295
8.1 PLA Register Extraction_________________________________________295
8.1.1 Use __________________________________________________________________________ 295
8.1.2 Prerequisites ___________________________________________________________________ 295
8.1.3 Procedure _____________________________________________________________________ 295
8.1.4 Result ________________________________________________________________________ 298
8.2 PLA Register Print Utility ________________________________________298
8.2.1 Use __________________________________________________________________________ 298
8.2.2 Prerequisites ___________________________________________________________________ 298
8.2.3 Procedure _____________________________________________________________________ 298
8.2.4 Result ________________________________________________________________________ 300
9. Reports _________________________________________________________________________ 300
7.1 Purchasing ___________________________________________________300
7.1.1 Purchasing Documents per Vendor (ME2L) ___________________________________________ 300
7.1.2 Purchasing Documents per Material (ME2M) __________________________________________ 302
7.1.3 Source List for Material (ME0M) ____________________________________________________ 303
7.1.4 Purchase Info Record per Material (ME1M) ___________________________________________ 303
7.1.5 Purchasing Values(MC$G) ________________________________________________________ 304
9.2 Inventory _____________________________________________________307
9.2.1 Material Document List (MB51)_____________________________________________________ 307
9.2.2 Diplay Warehouse Stock (MB52) ___________________________________________________ 309
9.3.3 Stock on Posting Date (MB5B) ________________________________________________________ 310
9.3.4 Stock Overview (MMBE)_____________________________________________________________ 313
9.3.5 Stock in Transit (MB5T) _____________________________________________________________ 314
9.3.6 Slow Moving Items (MC46)___________________________________________________________ 315
Icons
Icon Meaning
Caution
Example
Note
Recommendation
Syntax
Abbreviations
R Required entry field

(used in the end-user procedures)
O Optional entry field

C Conditional field
1 Procurement of Stock Materials
1.1 Procurement of Stock Materials – Raw Material Local / Return
1.1.1 Purpose
This process describes the procurement process of raw materials from indigenous source of supply with Country
Version India (CIN) relevant process like processing of Excise Duty (ED) and Sales Tax (ST) process.
1.1.2 Prerequisites
The following scenario specific master data must be created for operation of this building block.
1. Material Master Record

2. Vendor Master Record
3. Purchase Info Record (Optional)
4. Source List (Optional)
5. CIN Master Data
6. Excise Condition Record (if Tax applicable for the Vendor-Material Combination)
1.1.3 Material Master Record
Logistics Materials Management Material Master Material Create

Menu Path
(General)
MM01 – Create
T Code MM02 – Change
MM03 – Display
Internal Number
assignment .
Enter the Industry Sector
Enter the Material Type
Press Enter to see the pop-up window.

Select the required views and press Enter to input the organizational levels.
Press Enter to input the details of the Material.
1.1.3.1 Basic Data Views
Enter the Material

Description
Enter the Unit of Measure
and material Group
Enter the division if Stock

Transfer will happen for this
material
Blocking for Procurement or
BOM enter here
Enter the Gross and Net

Weight for the Finished Goods
Enter here if the material is

returnable packing as VERP and
non returnable packing as LEIH
Press Additional Data to
maintain Alternate Unit of
Measures
Enter any Basic Material is there
Press Additional Data to maintain the Alternate Unit of Measures (for e.g. 1000G= 20Nos for the Semi finished
goods)
Press Main data to go to the next view
1.1.3.2 Purchasing Views
Enter the Purchasing Group –

Person/Group responsible to
procure this material
If the Ordering Unit is other

than the Base UoM, enter the
Unit and make VAR. OUn as 1
Enter the Purchasing Value

Key as G1 (5% Delivery
Tolerance) or G2 (10%
Delivery Tolerance)
Select if QM is not active and
want to post to Inspection
Stock (Mainly used for
Spares)
Source list should be
maintained for this material
select the box.
Enter the No. of Days required

for GR Processing once the
material is arrived at factory.
Enter the PO Text normally
specification is maintained
1.1.3.3 MRP Views
Enter the appropriate MRP

Type)
Work Scheduling View:
1.1.3.4 Quality Management View
1.1.3.5 Accounting Views
Enter the appropriate Valuation

Class (Various Valuation
Classes given below)
Enter the Price Control as V-Moving
Average and S-Standard
If Price Control is V enter the

Moving Average price, S enter
the Standard Price
1.1.3.6 Costing Views
Enter Respective Profit

Centre of Plant/Depot
After entering all the details, press to save the Material.

1.1.4 Vendor Master Record
Logistics Materials Management Purchasing Master Data Vendor
Menu Path
Central
XK01 – Create
T Code XK02 – Change
XK03 – Display
Vendor Number to be put manually
Enter Company Code

Enter Purchasing Organisation
Enter Account Group (Various

Group given below)
Press Enter to input the details of the vendor.

Vendor Account Groups:
VDOM Domestic Vendors
VIMP Import Vendors
VSRV Service Vendors
1.1.4.1 General Data
Click on the CIN Details to enter the
Vendor Excise and Sales Tax details
Enter all the details in the respective fields
Excise Indicator for Vendor as 1 –

100% Taxable
Enter all the details in the respective fields
Enter the detail in the respective field
Enter whether this vendor is approved or on Probation

No need to enter in the below screen.
1.1.4.2 Accounting Data

Enter the appropriate Reconciliation
Accounts (Various Accounts given below)
Reconciliation Accounts:
Enter the appropriate Payment Terms and
Select the Chk double inv
Enter the appropriate Payment Methods

C – Cheque, E – Cash Payment, T – Bank Transfer
The below screen is explained in detail in FI User Manual:

1.1.4.3 Purchasing Data
Enter the Order Currency, Terms of

Payment and Incoterms
Enter the appropriate Schema group, Vendor

(Various groups given below)
1. Select GR-based Inv. Verf if Invoice

verification is done after GR
2.. Select the Srv-based Inv. Verf if Invoice
Verification is done after Service Entry sheet.
Schema group, Vendor:
DM Domestic Schema
IM Import Schema
Enter the Partner for the appropriate Partner
Functions
Press to save the Vendor master and the no is generated automatically.
1.1.5 Purchasing Info Record

SAP Easy Access Logistics Materials Management Purchasing Master
Menu Path
Data Info Record Create
ME11 – Create
T Code ME12 – Change
ME13 - Display
You use this component if you wish to store information on a vendor and a material as master data at purchasing
organization or plant level. You can create purchasing info records for different procurement types (standard,
subcontracting, pipeline, consignment).
Enter the Info Category as

1. Standard – For normal Procurement (Domestic, Import, etc)
2. Sub-Contracting – For Sub-Contracting
Press enter the details in the Purchasing Info Record.

If the message is displayed like this,
intimate the Quality Person to maintain
the QM Info Record (TCode: QI01)
No need to enter anything in the below screen as it copies all the data from the Vendor Master.
It is defaulted from the Material Master
but change for this Vendor-Material
combination if different.
Enter the Standard Quantity
Enter the appropriate Tax Code

Enter the Net Price

1.1.5.1 Result
Purchasing Info Record is created
1.1.5.2 Example
Purchasing Info Record 5300000384 is created.

1.1.6 Source List
SAP Easy Access Logistics Materials Management Purchasing Master
Menu Path
Data Source List Maintain
ME01 – Maintain
T Code ME03 – Display
ME04 - Changes
Enter the Material No. and Plant

Select if the Vendor is blocked for
Select if the Procurement for this particular
Vendor is fixed material alone
Enter 1 to be included
in MRP Run
Maintain the Validity Enter the Vendor and

Period till until which you Purchasing Organisation
will procure this material
from this vendor
Result: Source List changed.

1.1.7 CIN Master Data
Menu Path J1ILN SAP Menu Indirect Taxes Master Data Excise Rate Maintenance
T Code J1ID
1.1.7.1 Chapter IDs
Select Chapter ID and Press

Press New Entries to Create New Chapter ID
Press New Entries to go to the next screen.

Enter the Chapter ID
Enter the Description as per

law
Press to save the data.

1.1.7.2 Material ID and chapter ID combination
Select the Material and Chapter-Id Combination
Select Material and Chapter ID Combination and Press

Press New Entries to Create New Material Number and Chapter ID
Enter the Material No. and Chapter ID Combination
Enter the material type based on

the Material Nature
1.1.7.3 Vendor Excise Details

Either you can maintain here or else in Vendor Master.
Select the Vendor Excise Details
Press New Entries to Create Vendor Master Excise

1.1.7.4 Excise Indicator for Plants

Select the Excise Indicator for Plant
Select Excise Indicator for Plant and Press
Press New Entries to Create Plant Excise

1.1.8 Excise Condition Record

1.1.8.1 Use
When you enter a purchasing document, for example, a purchase order, the R/3 System
automatically calculates the applicable excise duties using the condition technique.
1.1.8.2 Procedure
1. Access the transaction choosing one of the following navigation options:
SAP R/3 menu No Menu path available for this transaction
Transaction code FV11
2. Enter the appropriate Condition type (various condition types given in next page) and maintain the respective
values.
Enter the appropriate condition type

Various combinations to maintain the
condition record
For Raw Material / Packing Material maintain the Plant/Vendor/Material Combination.

For Service Tax /Assets maintain the Plant/Material Group Combination.
.
Enter the Plant and Vendor
Enter the Material No. Enter the Value / amount
3. Press Ctrl+S or
4.
1.1.8.3 Result
Condition records saved.
1.2 Request for Quotation (RFQ)

1.2.1 Use
Request for Quotation is used to float enquiries in market to obtain quotations from prospective vendors.
This transaction is optional for the process.
1.2.2 Procedure
SAP R/3 menu Logistics Material Management Purchasing
RFQ/quotation Request for Quotation Create
Transaction code ME41
2. RFQ can be created with reference to Purchase Requisition, Outline Agreement (Contract) and another RFQ.
3. On the Create RFQ: Initial Screen, make the following entries:
1. Enter the RFQ type as “AN”

2. Enter the Quotation Deadline
3. Enter Purch. Organisation as 1101
4. Enter the respective Purchasing group
Press this button to enter the Collective

No and Vendor Reference
Enter the Submission date
Enter the appropriate 1. Enter the Material No

Item category for Sub- 2. Enter the RFQ Quantity
Contracting & Service 3. Enter the Deliv. Date
4. Enter the Plant if it is Plant specific
4. Choose (header details icon) on the toolbar, then on screen Create RFQ: Header Data, enter information
in the fields as specified in the table below:
Press this button to enter the vendor

code for which it has to be sent?
Enter the Collective No to have a track of
all RFQs related to particular instance
Enter the Your Reference if any

reference given by the vendor
5. Choose (vendor address button) on the toolbar, then on screen Create RFQ: Vendor Address, enter
information in the fields as specified below:
After entering the vendor code and pressing enter the details of vendor will be displayed automatically.
6. Press to Save the RFQ. This will refresh the Create RFQ: Vendor Address screen to allow creation of the
same RFQ data to a new vendor by following the steps outlined above.
1.2.3 Result
RFQ created
Similarly create for other vendor in the same screen and various RFQ Nos will be generated
1.2.4 Example
RFQ created under the number 6000000000.
1.3 Message output: RFQ
1.3.1 Use
A RFQ needs to be printed for transmitting to vendor. This transaction is optional for the process.
1.3.2 Procedure
SAP R/3 menu Logistics Materials Management Purchasing

RFQ/Quotation Request for Quotation Messages
Print/Transmit
Transaction code ME9A
2. On the Message Output screen, make the following entries:

Enter the RFQ Nos to be printed
and Execute (F8)
Press this button to Execute
Select the check box For Printout click

this button which For Print Preview For Direct Printout
will create Spool click this button click this button
Request.
You will see out put as
1.4 Maintaining Quotation
1.4.1 Use
This transaction is used to maintain the quotation, which is submitted by vendors. Vendor communicates
price for material and as a result the RFQ (Request for Quotation) needs to be updated.
1.4.2 Procedure

RFQ/quotation Quotation Maintain
2. On the Maintain Quotation: Initial Screen, make the following entries:
3. Choose the Enter key, or choose green Enter icon to proceed.

4. View the screen “Maintain Quotation: Header Data” by Choosing on the Header data icon in the toolbar.
5. Enter information in the fields as specified in the table below. Some fields will not be available for input, as they
are reference fields only.
2. Press to enter the conditions
1. Press to select the line
6. Once all necessary header data has been maintained, the user can then enter the price information in one of
two fashions:
Enter the Conditions given by vendor.
a. Enter the price in the Net Price field on the Maintain Quotation: Item Overview screen by Choosing
overview icon on toolbar.
b. To enter more detailed information in addition to the net price, select the line item and choose the
Item Details icon. Choose the green Back arrow to return to the ‘Overview’ screen once data has
been maintained.
i. A vendor’s quoted price can be entered in one of two ways.
ii. Enter the net price per unit in the Net price field. This price includes the vendor's normal
discounts and surcharges only. Cash discounts (for prompt payment) and taxes are
calculated separately.
iii. Enter the gross price in the Net price field, and maintain the conditions for the item. Then
the system automatically replaces the entered gross price with the calculated net price. If
the net price for an item is entered for which pricing conditions have been maintained, the
system always replaces the price entered with the calculated net price.
iv. Enter the Tax Code for any relevant taxes (for example, Excise Duty, Sales Taxes etc.) in
the Tax code field. If a purchase order is created by referencing an RFQ, this code
facilitates the determination of the tax amount when the invoice is entered in the system.
v. After entering tax code, after choosing this system may give an information message
showing the effective price, Choose Enter to continue.
7. Once all quotation information has been successfully entered, save the data by Choosing on the Save button,
or Choose the <Ctrl + S> keys. A message will be displayed that the data has been saved.
1.4.3 Result
Quotation is maintained.
Maintain the same for other RFQs.
1.4.4 Example
Quotation for RFQ 6000000000 maintained.
1.5 Price Comparison

1.5.1 Use
Required to compare prices from all quotations received as a result of a competitive bidding process.
1.5.2 Procedure

RFQ/Quotation Quotation Price Comparison
2. On the Price Comparison List screen, make the following entries:
Enter the Purchasing Organisation
Enter the Quotations to be compared or

the Collective RFQ
Parameters included for Comparison
a. Choose the comparison values to be used:

i. Reference quotation: You can compare the quotations within the list with a sample quotation.
The system displays the percentage deviation between each quotation in the list and the
sample quotation.
ii. Mean/minimum value quotation: The price comparison list can also display a "fictitious"
quotation reflecting the average or minimum value of all quotations. Select either the "Mean
value" or "Minimum value" quotation field to choose the type of fictitious quotation.
iii. Percentage basis: The price comparison list displays the percentage of each item in relation to
the maximum, minimum, or average price. To determine the display type, enter one of the
following:
+: The highest value for each item is the 100% value
-: The lowest value for each item is the 100% value
_: The mean value for each item is the 100% value
b. Select the desired price computations:
i. Select the appropriate field to determine which of the following should be included in the
determination of the comparison price:
i. Include cash discounts
ii. Include delivery costs
iii. Determine effective price
3. Once all entries have been made, Choose the Execute.
4. On screen “Price Comparison List in Currency INR”, view the Price Comparison list.
Rank is Mean and

generated Effective Price is
automatically highlighted
5. To view any of the following information for a particular quote included in the comparison, Choose the RFQ
number with the mouse to select it, then Choose the appropriate icon/button on the menu toolbar:
6. Display Material: Allows the user to view the purchasing data in the material master record.
7. Display Vendor: Allows the user to view the vendor master record.
8. Additional Info: Allows the user to view payment terms, bid dates, currency information for all the vendor
quotations in the list.
9. If any information has been modified through the comparison list, save the RFQ before exiting. If changes have
been made and the user attempts to exit without saving, the system will return a message to verify action.
10. To exit the transaction, choose the green Back arrow, the yellow Exit arrow, or Choose the F3 button.
1.5.3 Result
Price Comparison List in Currency INR is displayed on the screen.

1.6 Creating Purchase Requisition
1.6.1 Use
A Purchase Requisition is created to indicate purchase department to procure materials or services with
details like how much quantity is required, when required. Generally it is created automatically for Raw
materials and Packing Materials through MRP Run and Spares and Service related to Plant
Maintenance Purchase Requisition is generated automatically from Plant maintenance Order.
1.6.2 Procedure
SAP R/3 menu Logistics Materials Management Purchasing Purchase

Requisition Create
Transaction code ME51N
2. On the Create Purchase Requisition screen, make the following entries:

Enter Material No. Enter required
Quantity
Enter the Desired Vendor if Vendor is known to

the person who is creating PR
Press or Ctrl+S to Save the Purchase Requisition.
1.6.3 Result
1.6.4 Example
Purchase requisition number 0010000000 created.
1.7 Release Purchase Requisition
1.7.1 Procedure

Requisition Release Individual Release
Click Other Purchase Requisition
Enter PR No.
Click This Icon to Release PR
Click This Icon to Release

Click This Icon to Save
1.8. Assign and Process Purchase Requisition
1.8.1 Use
a) This section explains the functions provided by the SAP System for converting requisitions into
external purchasing documents (purchase orders, contract release orders, scheduling agreement
delivery schedules, RFQs), and the processing options thereby available to you:
• Assigning means defining the desired source for each purchase requisition item
o Further processing involves generating lists of requisitions that have been assigned or flagged as
outlined above, and the subsequent creation of RFQs, purchase orders, or lines of delivery
schedules under scheduling agreements.
Procedure

Requisition Follow-On Functions Assign and Process
3. The assignment of sources to and further processing of purchase requisitions are two distinct functions. You
can choose whether you wish to perform the functions in two separate steps or in just one.
4. Below are the Selection Parameters to restrict the process of PO from PR
1. Enter the appropriate

Purchasing Group
2. Enter the Scope of List as B1 for
PR generated through MRP Run
and A for remaining PR
3. Enter the appropriate Plant
1. Select the Assigned Purchase

Requisition (For Spares PR
normally the End User may have
entered the Vendor in the PR)
2. Select the appropriate Check
boxes for Processing the PR
5. Press or F8 to enter into the next screen.

1. If Source List is
available click this button
After assigning the source
click on to this button to
process the PO or else save
for the assignment of source
1. Since only one source is assigned in

Source list system assigns the source
1. Select the check boxes automatically or else if more than one source
required PR which are to available a Pop-up window will be coming
be converted in to Pos. where one vendor has to be selected.
6. O is explained in next chapter.
1.8.3 Result
The source is assigned to PR and can be processed for PO.

1.9 Purchase Order
1.9.1 Use
A purchase order is a legal document used to record an individual purchase with the vendor. It also
provides the vendor with a reference document to link to shipping (goods receipt) and invoicing (invoice
verification) processes. The purchase order is a commitment to a vendor for a given material, in a
specified quantity at a predetermined price and delivery date.
This transaction is mandatory for the process.
Please ensure that Purchase Order Value does not exceed specified value and if the purchase order value
crosses this limit a release procedure is applied on this purchase order. To release the Purchase Order go
to ME28 for collective release and ME29N for individual release.
1.9.2 Procedure
Order CreateVendor/Supplying Plant Known
2. If you want create purchase order with reference to the purchase requisition, on item details screen enter the
purchase requisition number and item number at Purch. Req. field. System will automatically adopt all the data
from requisition.
Click the
Purchasing
Requisitions
and Press
Adopt
Press this button to view

the Tax Calculation
the message
Check the PO before
Saving
1.9.3 Result
Purchase Order is created.
1.9.4 Example
Standard PO created under the number 210000000.

1.10. Release Purchase Order
1.10.1. Procedure
Access the transaction choosing one of the following navigation options:

Order Release Individual Release
Click Other Purchase Order
Enter PO No.

1.11Message Output
1.11.1 Use
A Purchase Order needs to be printed for transmitting to vendor.
Procedure

Order Messages Print/Transmit
Transaction code ME9F
3. On the Message Output screen, make the following entries
4. Choose to Execute.
5. On screen Message Output select the appropriate Document number and perform the following:
Choose Output Message and/or

Choose Display Message and/or
Choose Message Detail and/or
Choose Trial Printout.
1.12 Goods Receipt for Purchase Order
1.12.1 Use
Goods are received from the Vendor as a result of a Purchase Order at the receiving plant. A goods
movement is entered into the system referencing this PO and a goods receipt material document is
posted. Appropriate general ledger accounts are also posted and stocks are updated.
1.12.2 Prerequisites
Purchase Order
1.12.3 Procedure
SAP R/3 menu Logistics Materials Management Inventory Management
Goods Movement Goods Receipt For Purchase Order
PO Number Known
Transaction code MIGO
2. On the Goods Receipt Purchase Order screen, make the following entries:
Check for correct movement
type whenever doing goods
movement
Enter the Purchase Order No and Press Enter

3. After pressing Enter system will fetch all the data from the Purchase Order as shown below:
Whichever material is in Blue those detail will be seen

in the Item detail
4. System defaults the balance quantity in PO, change the quantity to the received quantity:
Enter the Storage Location in which the
material to be placed.
Enter the Delivery Note
details of the vendor
Select Item Ok and Press Enter and the Excise tab

will appear both in Header and Item Level
Field name Description R/O /C User action and values Comment
Goods Goods Receipt R Select from drop down list
Receipt for action
Purchase Purchase Order R input the PO number which
Order generated above
4500000277
Movement 101
Type
Enter
Document Document Date R Enter document date
Date
Delivery Note in Header O Delivery Number from
Vendor
Vendor Vendor R Defaulted from purchase Grayed out
order
Posting Date Posting date R Enter posting date
Bill of lading Bill of lading O Enter bill of lading
Header text Header text O Enter header text
Close Header Detail data to enlarge the Detail data.

Select Material tab at Detailed Data.
Material Material tab R Defaulted from Purchase Grayed out
Order
Select Quantity tab in Detail data.

Qty in unit of Quantity in unit of R Enter the quantity you have Quantity
entry entry received from vendor. As a defaulted from
default system will give Purchase Order
purchase order quantity
Qty in Quantity in delivery O Enter the quantity as per
delivery note note vendor delivery challan
Select Where tab in Detail data.

Movement Movement type R Defaulted from header
type screen
Stock type Stock type R Defaulted from material

master or purchase order
Plant Plant R Defaulted from purchase
order
1000
Storage Storage location R Defaulted from purchase
location order if entered
1010
Goods Goods Recipient O Enter the name of person
Recipient who received goods
Unloading Unloading point O
point
Text Text O Enter the text if required
Select Purchase Order tab in Detail data.

Purchase Purchase Order R Defaulted from header data Grayed out
Order
Del. Delivery completion O Defaulted by system if PO
completed indicator Qty = GR Qty
ind.
Select Partner tab in Detail data.

Vendor Vendor name O Grayed out
For this material batch management is not active. Just for reference purpose the following
data is given.
Select Batch tab in Detail data.
This tab will come only if material is managed in batches.
Proceed with the following steps if material is batch managed only.

Batch Batch number R Enter batch number as date
for batch managed
materials
Vendor batch Vendor batch O Enter vendor batch number
for reference
5. Select the Check box Item OK, after entering all the data.
You will get Excise Invoice tab at Header Data for capturing vendor excise invoice details and for posting Part I
and Part II.
6. On the Excise Invoice tab at Header Data make the following entries.
Select Appropriate Excise settings
While posting in Case of dealer only
System defaults
the Excise Duty
(BED & ECS)
and in case
Field name Description R/O/C User action and values Comment

Capture & Capture & Post Excise R Choose Capture & Post Defaulted
Post Excise Invoice on Excise Excise Invoice from drop
invoice Action down list
Excise Group Excise Group R Defaulted by the system
Excise Excise invoice R Enter the vendor Excise
Invoice Invoice number
For example:
D013
Excise Inv. Excise Invoice Date R Enter the excise invoice
Date date of vendor
BED Basic Excise Duty R Defaulted from purchase Grayed out
order
AED Additional Excise Duty R Defaulted form purchase Grayed out
order
SED Special Excise Duty R Defaulted from purchase Grayed out
order
NCCD NCCD R Defaulted from purchase Grayed out
order
ECS Education Cess R Defaulted from purchase Grayed out
order
MRP MRP Indicator O Tick the check box
Indicator Note: If the Base Price in
PO is the inclusive of
both the Material Cost
and Excise Value choose
the check box

Select Excise Item tab at Detailed Data (at the last).
Chapter ID Chapter ID of material R Defaulted by the system
No action required
EI Quantity Excise Invoice R Defaulted by the system
Quantity from Goods Receipt
quantity
Base Value Base value of material R Defaulted by the system
BED Basic Excise Duty R Defaulted by the system
AED Additional Excise Duty O Defaulted by the system
NCCD NCCD O Defaulted by the system
SED Special Excise Duty O Defaulted by the system
ECS Education Cess O Defaulted by the system
Please cross check the BED, AED, SED, NCCD and ECS amount of item as per the Vendor
Excise Invoice, legally you cannot avail more than what mentioned in Vendor Excise Invoice. All
other information is defaulted by the system. Hence, no action required by the user.
6. Choose Check at the top of screen.
7. Choose Post to post the document.

Enter Excise Invoice No.
and Date vendor
Also See the account postings

1.12.4 Result
Material document 5000000009 posted
1.12.5 Example
1.13 Logistics Invoice Verification
1.13.1 Use
In this process of Logistics Invoice Verification all the Incoming Invoices are verified in terms of their
content, prices and arithmetic. When the invoice is posted, the invoice data is saved in the system. The
system updates the data saved in the invoice documents in Materials Management and Financial
Accounting.
1.13.2 Procedure
SAP R/3 menu Logistics Materials Management Logistics invoice
Verification Document Entry Enter Invoice
Transaction code MIRO
2. If you are opening for the first time this transaction, system will ask for Company Code, please give 1000 to go
in side the transaction.
3. On the Enter Incoming Invoice: Company Code 1000 screen, make the following entries:
Enter Invoice Date
Change Defaulted V0 Tax

code and tick Calculate tax
tab
Enter the PO No.

If Part II entry is not done then system will not allow you to POST Invoice
Unless and until you post part2 system will not allow invoice verification
Enter the amount

Transaction Invoice R Select Invoice from drop
down list
Header Data Header data of Invoice R Defaulted by system
Basic tab Basic information tab R Select basic information tab
to give initial information
Invoice Date Invoice Date R Enter the Vendor invoice
date
Reference Invoice reference O Enter the vendor invoice
reference
For Example
USERMANUAL
Posting date Posting Date R Enter the posting date of System will give
document current date as
default
Amount Invoice Amount R Enter invoice gross amount Amount
including taxes and duties mentioned is
299,960.20 only an example
Currency R Enter the currency in which

the bill is presented by
vendor, if not entered by
user system will default the
document currency from
purchase order
INR
Calculate tax Check box calculate O Check this tick box, system
tax will calculate tax amount
Tax code R Select the tax code from
drop down list
V1
Bus.place/se Business place or R Enter section code if Tax Leave blank for
ctn section code deduction for source is this process
active for this vendor
Text Text O Enter text if required for
reference
Payment tab Payment tab R Select payment details tab
BaselineDt Base line date for R Enter the base line date for Will be defaulted
payment payment if payment terms
entered in PO
Pmnt terms Payment terms O Payment terms of
document, if entered will be
defaulted from purchase
order
Due on Payment due on O Will be calculated by Grayed out
system
Discount Cash discount O Enter if cash discount is
offered by vendor
Hide Header data for getting full screen of items if required.

Purchase order / R Select Purchase order / Defaulted for
Schedule Agreement Schedule Agreement in the user
reference document
category from drop down
list
Purchase order R Enter the first purchase
number order number generated
above
Goods / service items R Select Goods / Service Defaulted
items in indicator from drop
down list
Layout Layout of invoice R Select All information from
verification drop down list
Choose Enter
4. Choose Enter to complete the document feeding part.
5. To check the document credit and debit is balanced on the top right corner of your screen a traffic light is
displayed. Beside that Balance of the document is displayed.
Ensure that the Balance is ZERO before posting the document and the traffic light is green or yellow color.
6. If you want to see the accounting postings in simulation mode, Choose Simulation on middle of fourth row of
your screen.
Check Simulate Tab
7. Choose Save / Post, for posting the document.

1.13.3 Result
Logistics Invoice verification document is posted.
1.13.4 Example
Document no. 5105600102 created
1.14 Returning Delivery
1.14.1 Use
A material has been received and it needs to be returned for various reasons (i.e. poor quality,
incomplete, damaged). The user can use this transaction to return the material to the vendor via the
original GR document.
This transaction itself is an independent transaction and it is not mandatory in J81 process. This Return
Delivery transaction is used only when material is rejected and needs to be returned to vendor.
If material is rejected by using QM process there is no need to this transaction. This transaction can be
used only without QM process materials.
This transaction is used basically when purchased material is needs to be sent back to vendor because of
various reasons like poor quality, incomplete items, damaged etc.
b)
Bore proceeding with return delivery to vendor please ensure that sufficient stock is available in storage
location and if batch managed in particular batch stocks also. Other wise system will give error message.
Before doing Return Delivery to vendor, check if you have already done Invoice Verification to that Goods
Receipt. If you have already done invoice verification please raise Credit Memo to the extent of Returns
quantity and then proceed with this process. Other wise system will give an error message.
How to create Credit Memo transaction is explained in the chapter mentioned 1.17 below.
1.14.2 Procedure
PO Number Known
2. Select Return Delivery from drop down list to make Return Delivery to vendor.
3. On the Return Delivery Material Document screen, make the following entries:
Enter the quantity to be returned to vendor
Select Blocked Stock to
Return the rejected Material
Enter the appropriate Reason for Movement

Return Return Delivery R You have already selected
Delivery in above step 2
Material Material Document R Select from drop down list
Document number 5000000189
Enter the material
document number which
you have made at the time
of Goods Receipt for
purchase order
Enter
Date
Delivery Note in Header O Delivery Number. Will be
defaulted if you have
already entered in original
document
Bill of lading Bill of lading O Enter bill of lading.
Via Delivery Via Delivery R Tick the check box

Order
Select
Quantity tab
in Detail data.
Qty in unit of Quantity in unit of R Enter the quantity you want You can not
entry entry to return to vendor. As a return more than
default system will give what you have
original Goods Receipt in stock
quantity
5000
Qty in Quantity in delivery O Enter the quantity
delivery note note 100000
Select
Where tab in
Detail data.
Movement Movement type R Defaulted by the system
type with 122 movement
Stock type Stock type R Enter stock type from drop

down list
Plant Plant R Defaulted from original Grayed out
Goods Receipt
1000
Storage Storage location R Enter the store location
location from which you want to
return to vendor

point
Reason for Reason for Movement R Select from the drop down
Movement list the reason for this
movement of material
0001

Order
Del. Delivery completion R Defaulted from purchase
completed indicator order
ind.


Batch Batch number R Enter batch number if
externally maintained by
you or system will allocate
batch number
for reference
Enter the Goods Issue Indicator as IPD

Enter the Sub type as PR
for Vendor Returns

Select Create Select Create Excise R Choose Create Excise Select from drop
Excise Invoice Invoice from drop down list down list
Invoice
Series Group Excise Series group R Defaulted by the system
Removal time Removal time of R System defaults current
goods time, change if required
order
order
order

No action required
Quantity from return delivery
document
2
Goods Issue Goods Issue Indicator R Select from drop down list
Indicator IPD for this process

1.14.3 Result
Return Delivery document created
1.14.4 Example
Return Delivery Document No. 50000000011 created.
Note: Excise Invoice for Return delivery also will be generated in the back ground for this
transaction
1.15 Excise Invoice Other Movements
1.15.1 Procedure
1. Access the activity choosing one of the following navigation options:
SAP CIN R/3 Indirect taxes Sales / Outbound Movements Excise Invoice
User menu For Other Movements Excise Invoice for Other Movements
Transaction Code J1IS
2. On the Excise Invoice Other Movements – Main Menu screen, make the following entries:
3. Choose Display Excise Invoice icon to start the transaction

Enter the Sub type as PR
for Vendor Returns
Reference
Doc Number Document Number R Enter the return delivery
document number which
you have created in above
step
0000000126
Doc Year Document year R Enter the year of document
created
Example: 2006
Enter
1.15.2 Result
Excise invoice generated is displayed.
1.15.3 Example
Excise invoice 0000000014 generated and displayed.

1.16 Posting and Printing the Excise Invoice
1.16.1 Use
Excise Invoice has to be printed and sent along with the material. This is legal requirement in India.
Excise Invoice Document is generated and posted.
1.16.3 Procedure
SAP CIN R/3 Indirect taxes Sales / Outbound Movements Excise Invoice
User menu For Other Movements Post and Print
Transaction code J1IV
2. On the SAP screen, make the following entries:

3. If the document is not posted in step mentioned above, Choose Release to Accounting to post Financial
Accounting document.
This transaction is used to just printing of excise invoice.

4. Follow the steps mentioned below for taking print of Excise Invoice.
Excise
internal
reference
Select internal excise invoice number from drop down list, you can find it with reference to the
Excise Invoice number generated in above step 1100400070 for example with the combination of
Excise Group 10 and vendor code 10006.
Document Document Number R Enter the Excise Invoice
No. Document Number
generated in above step
For example: 127
Document Document Year R Enter the document year
year 2006
5. To take printout, select Goto from the top main menu and select Print Document from the list. Or Choose
Control + P to get the access of Excise Invoice Printing screen.
6. Choose Execute icon to get list of excise invoice ready to be printed.

7. From the list select the excise invoice number by choosing the check box left side of number.
8. To take printout on printer Choose the Printer icon or Choose F8.

9. To display excise invoice on screen Choose Display icon or Choose F9.
10. System will give popup asking for pre-printed invoice serial number, Enter pre-printed excise invoice number.
In this process Choose 99 for testing purpose (since it is not expected to have pre-printed invoice for testing
purpose).
11. Select printer from the drop down list. Check box for Print Immediately and New spool request.
12. Choose Print Preview or Print icons to display on screen or to print on printer mentioned above.
13. If printer is connected system will print the document on printer.
1.16.4 Result
Excise Invoice is printed.

1.17 Credit Memo
1.17.1 Use
In this process of Logistics Invoice Verification a credit memo is generated on vendor. Please be
careful that during the total process after making logistics invoice verification you have made
return delivery to vendor. To recover that money you need to do this credit memo transaction.
• Logistic Invoice Verification is already made
1.17.3 Procedure
Select Credit Memo in
this tab
Put the Qty and Price to

be returned
Transaction Credit memo R Select Credit memo from
drop down list
date
reference
default
Amount Credit memo Amount R Enter invoice (credit memo)
gross amount including
taxes and duties
purchase order
drop down list
reference
entered in PO
order
system
offered by vendor

reference document
list
Purchase order R Enter the purchase order
number number
down list
Choose Enter
your screen.
7. Choose Save posting the document.

1.17.4 Result
1.17.5 Example
1.18 Reversals / Cancellation of Invoice or Credit Memo

1.18.1 Use
Invoice documents in Invoice Verification are either invoices or credit memos. These documents can be
cancelled. There are two different cases:
• If an invoice is cancelled, the system automatically creates a credit memo.
• If a credit memo is cancelled, the system automatically creates an invoice.
The system takes the amount and quantity for the credit memo or invoice from the invoice or credit
memo to be cancelled, thus avoiding any differences between the invoice and the credit memo or the
credit memo and the invoice.
An invoice document can only be cancelled if:
• it was posted in Logistics Invoice Verification

• It has not already been cancelled
• It is not a cancellation document for another document
When you cancel documents in Logistics Invoice Verification, the document line items are not
automatically cleared in Financial Accounting. We recommend that you periodically clear such
items (using daily background jobs, for example).
1.18.3 Procedure

Verification Further Processing Cancel Invoice Document
Transaction code MR8M
2. The initial screen for reversal appears.

3. In the fields Invoice doc. number and Fiscal year, enter the data for the invoice document you want to cancel.
4. In the Reversal reason field, select the reason for cancelling the invoice. This allows you to differentiate
between different types of cancellations.
Enter the reversal
reason
5. You can display the document to check. Choose Display document to do this. You can look at the items of the
document to be cancelled. Return to the initial screen by choosing Back.
6. Choose Invoice document and reverse or Press Ctrl+S or .
1.18.4 Result
Document Reversed and Clear FI Documents Manually.
1.18.5 Example
Document Reversed with no. 5105600114.
1.19 Reversals / Cancellation of Goods Receipt (GR)
1.19.1 Use
When any data entered incorrect during GR posting it has to be reversed. To do the cancellation of GR,
all the follow on documents should be reversed.
A GR can only be cancelled if:
• Invoice Verification posted if any should be reversed.
1.19.3 Procedure

PO Number Known
2. Choose Cancellation and enter the respective Material Document No. (GR No.)
3. Press enter so that all the data will be captured automatically by the system. If any comment is there to mention
it can be mentioned in the Head Text and Text which is available at the Item level.
4. Press Enter to continue and check all the details
You will get Excise Invoice tab at Header Data and Item Details.

7. Press Ctrl+S or to post the document
1.19.4 Result
Material document posted, please note the document number.
1.19.5 Example

1.20 Reversing CENVAT Postings
1.20.1 Purpose
When the Material Document is cancelled the CENVAT Posting should also be reversed or cancelled.
Material Document (GR) should be reversed.
1.20.3 Procedure

SAP R/3 menu Country India User Menu → Indirect Taxes → Procurement →
Excise Invoice → Incoming Excise Invoice → Central
Processing → Capture / Change / Cancel / Display / Post
Transaction code J1IEX
2. Select Post CENVAT.
3. Select Vendor Excise Invoice.
4. Enter the excise invoice number.
5. Press Enter to continue

6. Choose Simulate CENVAT
7. A dialog box appears, showing which postings the system will make to reverse the CENVAT.
8. Choose Post CENVAT.
1.20.4 Result
CENVAT Posting Reversed.
1.20.5 Example
CENVAT Posting Reversed with document no. 0000000008.

1.21 Canceling Excise Invoices
1.21.1 Purpose
When the Material Document is cancelled the CENVAT Posting should also be reversed or cancelled.
• Material Document (GR) should be reversed.

• CENVAT Posting should be Reversed.
1.21.3 Procedure

SAP R/3 menu Country India User Menu → Indirect Taxes → Procurement →
Excise Invoice → Incoming Excise Invoice → Central
Processing → Capture / Change / Cancel / Display / Post
2. Select Cancel.
3. Select Vendor Excise Invoice.

4. Enter the excise invoice number.
5. Enter the Rejection Code.
Enter the Rejection Code
6. Save the excise invoice.

7. Press Yes to Cancel the Excise Invoice.
1.21.4 Result
Excise Invoice has been successfully cancelled.
1.21.5 Example
Excise Invoice 0000000008 / 2008 ( 1234 ) has been successfully cancelled.

2 Procurement of Imported Materials – Business Process Procedure
2.1 Procurement of Imported Materials
2.1.1 Purpose
This process Procurement of Imported Materials shows you how to handle the Countervailing duty
(CVD) on imports, which is levied in place of excise duty. Unlike other forms of customs duties, such as
basic customs duty or special customs duty, you can credit CVD paid on imports to your CENVAT
account.
Prerequisites
The following scenario specific master data must be created for operation of this building block and
subsequent dependent building blocks.
• Material Master record

(Refer User Manual – Procurement of Stock Materials (Domestic)
• Vendor Master record

Ensure that GR based IV is not selected in Purchasing Data.
• CIN Master Data

2.2 Creating Purchase Order
2.2.1 Use
A purchase order is a legal document used to record an individual purchase with the vendor. It
also provides the vendor with a reference document to link to goods receipt and invoice
verification processes. The purchase order is a commitment to a vendor for a given material, in
a specified quantity at a predetermined price and delivery date.
2.2.2 Prerequisites
Before starting the process, please ensure the following information:
• Commissioner of Customs is created as domestic vendor, for example: vendor code 600000
- RBI Commissioner in this process.
• In master record of main imported vendor GR-based invoice verification tick should not be
there on Purchasing Data screen of vendor master. And Schema group, Vendor is filled
with schema group ZI. For example vendor code 200000 in this process.
• These are basic master data changes with respect to this process only.
For all purchase order a release procedure is applied.
2.2.3 Procedure
6. On the Create Purchase Order screen, make the following entries:

Put Doc Type as Import
Mention Tax code as V0

Don’t Put Tick in GR Based
7. For Basic Customs Duty(JCDB),CVD(JCV1),Addition Customs Duty(JADC),E-cess on CVD(JECV)

E-Cess (JEDB)
Enter the Customs Duties in
respective Condition type fields
Select Each Condition Type related to
Customs and click this Details Button
8. To change the vendor for condition type select JCDB condition type and Choose on Condition detail icon
located at left bottom side of your screen.
9. System will take to new Item – Conditions – Detail: screen. In this screen at right bottom of screen you can find
the vendor code 60000 the main imported vendor is defaulted here. You have to replace this vendor code with
respective vendors and Choose enter and green arrow to come back (F3) to condition tab of purchase order.
Change DS200 to DS250(appropriate vendor)
for each condition types
10. Repeat the same for other condition types such as JCV1, JECV, JADC, and JEDB etc.
11. Purchase Order may be posted by Choosing on the Save icon.

2.2.4 Result
A message will be displayed stating that the purchase order was saved, with the purchase order
number, please note the purchase order number.
2.2.5 Example
2.3 Release Purchase Order
2.3.1 Procedure

Order Release Individual Release
Click Other Purchase Order
Enter PO No

2.4 Message Output
2.4.1 Use
2.4.2 Procedure



2.5 CAPTURING BILL OF ENTRY

2.5.1 Use
Accounting.
2.5.2 Procedure
Choose Planned Delivery Costs

Enter the Amounts of the Customs Duties Manually in the Amount Column with referring to PO.

down list
date
reference
For Example
USERMANUAL
default
39.80 only an example

purchase order
USD
drop down list
V0
reference
entered in PO
order
system
offered by vendor
reference document
list
above
Planned Delivery R Select Planned Delivery
Costs Costs in indicator from
drop down list
Choose Enter
your screen.
13. Choose Display Currency which will lead to small pop-up window having the company code currency and
Document Currency, position the cursor on the INR to convert to Document Currency and press the details
button.
2.5.3 Result
2.5.4 Example
Document no. 5105600121created
2.6 Goods Receipt for Imported Purchase Order
2.6.1 Use
2.6.2 Procedure
PO Number Known

Receipt for action
Inbound Purchase Order R Enter the Purchase Order
Delivery No.generated above
3100000000
Movement 101
Type
Enter
Since this is imported purchase order and you have already done invoice verification for
planned delivery cost. System will give a new popup Excise Invoice item number screen (which
is not there in normal other process) asking for Commercial invoice number and year.
Please enter the invoice verification document number which you have done in above 5105600792
and year 2006.
3. Choose Enter where a small pop-up window will prompt to enter the Commercial Invoice No. and Year (i.e.,
the Invoice Verification posted for Bill of Entry)
Enter the No generated for the posting of Bill of Entry
in the Item detail
5. System defaults the balance quantity in Purchase Order.

Enter the storage
location
Select Item Ok and Press Enter and the Excise tab
will appear both in Header and Item Level

Receipt for action
Inbound Purchase Order R input the Purchase Order
Delivery number which generated
above
4500000059
Movement 101
Type
Enter
Date
Vendor
order

Material Material tab R Defaulted from Inbound Grayed out
Delivery


type screen

order
1000
Storage Storage location R Defaulted from Inbound
location delivery if entered
1010

point

Order
ind.

data is given.


for batch managed
materials
for reference
You will get Excise Invoice tab at Header Data for capturing vendor excise invoice details and for posting
Part I and Part II.
8. On the Excise Invoice tab at Header Data make the following entries.
Capture & Capture & Post Excise R Choose Capture & Post Defaulted
Post Excise Invoice on Excise Excise Invoice from drop
invoice Action down list
Excise Excise invoice R Enter the vendor Excise
Invoice Invoice number
For example:
4500000059
Excise Inv. Excise Invoice Date R Enter the excise invoice
Date date of vendor
order
order
order
NCCD NCCD R Defaulted from purchase Grayed out
order
ECS Education Cess R Defaulted from purchase Grayed out
order

No action required
Quantity from Goods Receipt
quantity
AED Additional Excise Duty O Defaulted by the system
Please cross check the BED, ECS (CVD in this case) amount of item as per the bill of lading,
legally you can not avail more than what mentioned in Vendor Excise Invoice.
In case of imported purchase order in normal case system will default CVD and ECess (invoice
verification made on commissioner of customs) amount as BED and ECS i.e. CENVAT amount.

2.6.3 Result
Material document posted.
2.6.4 Example
You can see account posting here

2.7 Logistics Invoice Verification for the Materials
2.7.1 Use
Accounting.
2.7.2 Procedure
Select Goods
/Service Items

down list
date
reference
For Example
1000
default
100 only an example

purchase order
USD
drop down list
V0
reference
entered in PO
order
system
offered by vendor

reference document
list
above
down list
Choose Enter
your screen.
Choose Display Currency to change in INR

7. Choose Display Currency which will lead to small pop-up window having the company code currency and
Document Currency, position the cursor on the INR to convert to Document Currency and press the details
button.
2.7.3 Result
2.7.4 Example
3 Procurement of Subcontracting Materials – Business Process Procedure

3.1 Procurement of Subcontracting Materials
3.1.1 Purpose
In Indian subcontracting process when you issue materials to a subcontractor, you need to keep
track of what materials you have issued and when they have to be returned by subcontractor. The
reason for this close monitoring has to do with Indian tax law. Under excise law 57AC, when you
send materials to a subcontractor for processing, you are not required to pay any excise duty, even
though the materials have left your premises. However, if the materials have not been returned to
you within 180 days specified by the law, you will have to reverse any excise credit that you posted
when you have purchased the materials. When you send material out of your factory premises you
need to send with 57F4 Challan. In this process you are going to do the same.
3.1.2 Prerequisites
• Material Master record (Refer User Manual – Procurement of Stock Materials (Domestic))
• Vendor Master record (Refer User Manual – Procurement of Stock Materials (Domestic))
• Purchasing Info Record (Optional)
Ensure that Sub-Contracting as Info Category.

(Refer User Manual – Procurement of Stock Materials (Domestic))
• CIN Master Data (Refer User Manual – Procurement of Stock Materials (Domestic))
o Chapter IDs
o Material ID and chapter ID combination (Ensure Sub-Contract check box is selected for
the Materials that provided to vendor)
o CENVAT Determination
o Vendor Excise Details
o Excise Indicator for Plants
o Excise Indicator for Plant and Vendor
o Excise Tax Rates
3.2 Creation of Subcontracting Purchase Order

3.2.1 Use
provides the vendor with a reference document to link to goods receipt and invoice verification
processes. The purchase order is a commitment to a vendor for a given subcontracting activity, in a
3.2.2 Prerequisites
Components stock should be available for providing to subcontracting vendor.
3.2.3 Procedure
2. On the Create Purchase Order screen, make the following entries:

Select ZSC Document Type for
Subcontracting Order
Enter L as Item Category for
Sub-Contracting Procurement
Click here to enter Bill of components

that are supplying to Subcontractor
After filling the above data, choose on Material Data tab at item Details screen. There you will find a new icon
called Components, you have to choose on that icon to give the components list which you are likely to transfer
post to vendors and give the flowing inputs.
3. Click on the Components or Explode BOM and enter the materials that had to be sent:
4. Choose on Green Arrow or F3 to come back to main purchase order screen.
5. Ensure appropriate tax code have been entered for both the line items (V0 – Nil Tax for Sub-Contracting Item)
Ensure Taxcode V0 for Sub-Contracting Item
and click on the Taxes to view the tax calculation
6. The Purchase Order may be posted by choosing on the Save icon.
3.2.4 Result
A message will be displayed stating that the purchase order was saved, with the purchase order
number.
3.2.5 Example
Standard PO created under the number 2400000000

3.3 Message Output
3.3.1 Use
3.3.2 Procedure
3.4 Transfer of Components to Subcontractor
3.4.1 Use
The Nature of subcontracting purchase order is that company will provide components to subcontractor.
This process describes how to transfer post materials to subcontractor.
3.4.2 Prerequisites
Sufficient stocks of components should be available for making transfer posting.
3.4.3 Procedure
Goods Movement Transfer posting
Transaction code MB1B
2. On the Enter Transfer Posting: Initial Screen, make the following entries:
Document Document Date R Input date
Date
Posting Date Posting Date R Input date
Movement Movement Type R 541
Type
Plant Plant R 1000
Storage Storage location R 1010
Location
Press To Purchase Order

3. Choose on To Purchase Order icon on the top of the screen or choose F9 on key board. System will give new
popup screen asking for purchase order number. Give the 45000000## purchase order number and choose
enter to continue.
4. System will display components from purchase order with quantities

5. Choose only the Material that you are sending and enter the Storage Location from which it has to be issued.
6. Choose on Adopt + Details icon or F6.
7. Choose Enter if required the quantity of components can be changed.

8. Choose Save icon or Control + S to post the document.
3.4.4 Result
A message will be displayed stating that the document posted.
3.4.5 Example
Material document 4900000039 posted.
3.5 Creation of Subcontracting Challan

3.5.1 Use
It is statutory requirement to send the components to subcontractor with 57F4 Challan.
3.5.2 Prerequisites
• Select the Sub-Contracting Material in Material and Chapter ID Combination of the Excise
Master (J1ID) for the sending Material.
• Ensure that the details of the receiving Material maintained in the Excise Master (J1ID).
• CENVAT Determination of the Excise Master (J1ID) Maintained for the both sending and
receiving Material.
• Ensure that the Assessable value for the sending material is maintained in the Excise Master
(J1ID)
3.5.3 Procedure
SAP User menu Indirect Taxes Procurement Subcontracting
CIN Menu Subcontracting Challans Create
Transaction code J1IF01
2. On the Subcontracting Challan - Create, make the following entries:
Material Doc. Material document number R 4900000039
Mat. Doc. Year Material document year R 2006 Appropriate
Excise Group Excise Group R 10 Appropriate
Series Group Series Group R W3 Appropriate
3. Choose Enter to continue, system will take new Subcontracting Challan – Create screen, make the following
entries:

Select Posting tab
Posting date & time Posting date and R Input date and time of
time material removal
Print Immediately Print Immediately O Check this box if you want
challan printout immediately.
Select Overview Tab
Preprinted no Preprinted number O Enter pre-printed number if
you have
4. Save challan by choosing on Save icon or Control + S.
3.5.4 Result
A message will be displayed stating that the document posted.
3.5.5 Example
Subcontracting Challan 000010001 2008; Series Group B1 successfully created.

3.6 Printing of Subcontracting Challan
3.6.1 Use
It is statutory requirement to send the components to subcontractor with 57F4 Challan.
3.6.2 Procedure
CIN Menu Subcontracting Challans Change
Click the Print Immediately Tab
Press Save Icon

Click the Print Immediately Tab
Press Enter
Click the Icon to be the Print Preview of the Challan
Execute the Print to Get Print Out.

3.7 Goods Receipt for Purchase Order
3.7.1 Use
Normally Goods are received from the Vendor as a result of a Purchase Order at the receiving plant
3.7.2 Prerequisites
Purchase Order
3.7.3 Procedure
PO Number Known
Enter the Purchase Order No and Press Enter
12. First do the posting for the Sub-Contracting Material.

in the Item detail
13. System defaults the balance quantity in PO, change the quantity to the received quantity if it is different from
defaulted quantity:
14. Ensure that the Movement Type is 101.
Select Item Ok
and
Receipt for action
Purchase Purchase Order R input the PO number which
Order generated above
4500000054
Movement 101
Type
Enter
Date
Vendor
order

Order


type screen

order
1000

point

Order
ind.

data is given.

for batch managed
materials
for reference


3.7.4 Result
Material document posted.
3.7.5 Example
Material document 5000000028 posted, You can see accounting Entries
3.8 Reconciling Subcontracting Challan
3.8.1 Use
After making Goods Receipt the GR has to be reconciled with the challan sent to subcontractor.
3.8.2 Procedure
CIN Menu Subcontracting Challans Reconcile Quantity
Transaction code J1IFQ
As we have refered challan During Goods receipt here we are getting following message, If you have not refred
challan during Gr following is the Process
2. On the Quantity reconciliation for Subcontracting Challan screen, make the following entriees.
Field name Description R/O /C User action and Comment

values
Material Document Goods Receipt document R 5000000344
number
Mat. Doc. Year Year of document R 2006
Year Subcontacting challan year R 2006
Chalan No Subcontacting challan No R 000000031
Choose on Reconcile icon or F8 to go reconciliation screen.
3. System will take you to new Quantity reconciliation for Subcontracting Challans.
4. Here on this you can see system display items from Goods Receipt at top and items from challan at bottom of
screen.
5. Here you need to allocate the components consumed in GR stage are reconciled with challan to do this, choose
on Allocate based on FIFO icon in the middle of screen with calculator icon.
6. Or you can do allocation by entering manually also in respective line items at bottom, where Assigned quantity
filed is located in white color.
7. After assignment save the document by choosing Save icon or choose Control + S
3.8.3 Result
Material document was successfully reconciled.
3.8.4 Example
Material Document 5000000028, 2008 was successfully reconciled.
3.9 Completing/Reversal/Re-credit Subcontracting Challan

3.9.1 Use
This transaction is basically used to complete the challan if you have reconciled as stated above step.
There may be cases subcontractor may not able to supply within stipulated 180 days limit then in this
case also same transaction is used for reversal of challan or re-crediting the amount.
3.9.2 Procedure
CIN Menu Subcontracting Challans Complete/Reverse/Recredit
2. On the Subcontracting Challan – Complete/Reverse/Recredit screen, make the following entries:

Chalan No Subcontacting challan No R 0000000031
Excise year Document year R 2006
3. Choose enter to go to inside the challan document.
4. Select the radio button Complete Challan and.

5. Save the document by choosing Save icon or choose Control + S.
3.9.3 Result
Subcontracting challan successfully completed.

3.9.4 Example
Subcontracting Challan 0000001 2008; Series Group B1 successfully completed.
3.10 Logistics Invoice Verification for Subcontracting Material

3.10.1 Use
Accounting.
3.10.2 Procedure
4. Choose only the Subcontracting material to post the document:

down list
date
reference
For Example
USERMANUAL
default

purchase order
INR
drop down list
V0
reference
entered in PO
order
system
offered by vendor

reference document
list
above
down list
Choose Enter

your screen.

3.10.3 Result
3.10.4 Example
Document no. 5105600132 created, Account postings are following
5. Procurement of External Services: Business Process Procedure
Procurement of External Services – Procurement Process
Purpose
External Services Management is an application component within Materials Management Module. It
covers from creation of service master, bid invitation, order placements process, entering and
accepting services and finally invoice verification process.
Prerequisites
• Service Master record
o AMC Charges for Testing Machine
• Vendor Master record
Refer the document of “Procurement of Stock Materials”

Creating Service Master
Use
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 services. 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.
Procedure
SAP R/3 Menu Logistics Materials Management Service Master Service
Service Master
Transaction code AC03
9. On the Display Service screen, make the following entries:
10. Click on Create new service icon or press F5 (white paper icon) to create new service master.
11. Then you will get Create Service Master Record screen, make the following entries:
No Need to Enter as Internal No will be

generated and Enter the Short Text only
Blocking of service procurement can be
done by entering appropriately here
Conversion can be maintained here

Service Service master record R You can see %_1 will be Leave blank
Number (internally assigned) displayed on this field,
leave it as blank. System
will assign internal service
number
Service description R Annual Mait. Contract for Input the value
Testing M/C.
Service Service Category R Service:ALL complete Select from drop
Category down
Base unit of Base unit of R AU for Activity Unit
Measurement Measurement
Basic Data
Mat/srv.grp Material Group or R 91
Service Group
Division Division O
Valuation Valuation class R 3200
class
Long Text
This is free input O Annual Maintenance Contract
place. You can fully for Testing Machine.
input the service
specification.
12. Press enter to complete the entries.

13. Press Save icon or Control + S to save the entries.
Result
Service Master Record is created.

Creating Purchase Requisition
Use
A Purchase Requisition is created to indicate purchase department to procure materials or services with
details like how much quantity is required, when required. Generally it is created automatically for Raw
materials and Packing Materials through MRP Run and Spares and Service related to Plant
Maintenance Purchase Requisition is generated automatically from Plant maintenance Order. In this
process Purchase Requisition is created against Quantity Contract created in above step 1.1.4 with
exact delivery / requirement date.
Procedure

Requisition Create
3. On the Create Purchase Requisition screen, make the following entries:
Enter the A/c Assignment Category Enter the Enter the appropriate
as K for Cost center and Item Short Text Material Group Plant and
Category D for Services Purchasing Group
When Item Category D is enterer one new

tab in the Item Detail Services is generated
to enter the Service No.
Enter the Service No, Quantity and Gross
Price and press Enter
4. After pressing enter system shows a small pop-up window where respective G/L Account and Cost Center to be
entered.
Enter the appropriate G/L

Account and Cost Center
Enter the Desired Vendor if Vendor is known to
the person who is creating PR
5. Press or Ctrl+S to Save the Purchase Requisition.

Result
Purchase Requisition is created,
Example
Purchase requisition number 0010000180 created.

Assign and Process Purchase Requisition
Use
c) This section explains the functions provided by the SAP System for converting requisitions into
external purchasing documents (purchase orders, contract release orders, scheduling agreement
delivery schedules, RFQs), and the processing options thereby available to you:
• Assigning means defining the desired source for each purchase requisition item
o Further processing involves generating lists of requisitions that have been assigned or flagged as
outlined above, and the subsequent creation of RFQs, purchase orders, or lines of delivery
schedules under scheduling agreements.
Procedure

Requisition Follow-On Functions Assign and Process
7. The assignment of sources to and further processing of purchase requisitions are two distinct functions. You
can choose whether you wish to perform the functions in two separate steps or in just one.
8. Below are the Selection Parameters to restrict the process of PO from PR
1. Enter the appropriate

Purchasing Group
2. Enter the Scope of List as B1 for
PR generated through MRP Run
and A for remaining PR
3. Enter the appropriate Plant
4. Enter the Item category as D
1. Select the Assigned Purchase

Requisition (For Spares PR
normally the End User may have
entered the Vendor in the PR)
2. Select the appropriate Check
boxes for Processing the PR
9. Press or F8 to enter into the next screen.
1. If Source List is For Manual Assignment of

available click this button source click this Icon
1. Select the check boxes
required PR which are to
be converted in to Pos.
Click SAVE Icon.
Source has been assigned for this Requisition
Result
The source is assigned to PR and can be processed for PO.
5.5. For Releasing Purchase Requisition Refer User Manual for Stock Procurement
5.6 Purchase Order

5.6.1 Use

Please ensure that Purchase Order Value does not exceed specified value and if the purchase order value
crosses this limit a release procedure is applied on this purchase order. To release the Purchase Order go
to ME28 for collective release and ME29N for individual release.
Prerequisites
1. Before creating purchase order if this vendor is subject to Tax Deduction at Source (TDS) or with
holding tax please ensures that necessary entries in vendor master is updated.
Procedure
7. If you want create purchase order with reference to the purchase requisition, on item details screen enter the
purchase requisition number and item number at Purch. Req. field. System will automatically adopt all the data
from requisition.
Click the
Purchasing
Requisitions
and Press
Adopt

Select this check box if Invoice the Tax Calculation
Verification is done after
Service Entry Sheet
Condition Record for JSVD and JEC4 should be Maintained in FV11 with Material Group/Plant
Combination.
Select
Invoice
tab
Tax code Enter Tax code R S1 Select S1 tax
code
Since the procurement services covered with service tax of 10% (for example only, check for
legal requirement), it is advised to select V1 tax code.
Jurisdiction Jurisdiction code R Will be defaulted from plant
code parameters
Depending on for which plant you are procuring the services system will select Jurisdiction
code. In system the following Jurisdiction codes were configured IN00 – Central
GR-based IV Goods Receipt based O Tick this check box
invoice verification
Srv.-based IV Service based invoice O Tick this check box If Invoice
verification Verification will
be done after
the Service
Entry sheet
8. The Purchase Order may be posted by Choosing on the Save button or Choose Control + S for saving.
Result
Purchase Order is created.

Example
For Releasing Purchase Order Refer User Manual of Stock Procurement
5.8 Message Output

5.8.1 Use
5.8.2 Procedure

5.9 Creation and Acceptance of Service Entry Sheet

5.9.1 Use
The services actually performed (work actually done) by a service vendor are recorded in a Service
Entry Sheet with reference to the purchase order.
5.9.2 Procedure
SAP R/3 Menu Logistics Materials Management Service Entry Sheet
Maintain
Transaction code ML81N
2. On the Service Entry Sheet screen, make the following entries:
3. Click on Other Purch. Orders icon or Shift + F5, system will popup new screen.
4. In this screen against Purchase Order field give the purchase order number which is created in above steps and
press enter to continue.
5. You will get new Service Entry Against Purchase Order
6. Here on this screen click Create Entry Sheet (white paper icon) or Shift + F1 to get new entry sheet.
7. System allocates service entry sheet number internally and you will get the number on screen.
Press Service Selection and a
dialog box appears
8. System will give a popup screen with purchase order number on that, press enter to continue.
9. Select the line item 10 and click on Services or F9 (Adopt services) icon on top of screen.
10. For example the following screen name will come:
11. You can observe the system copied the service line item from purchase order with open item quantity i.e. 1 AU.
12. Change the quantity as per your requirement

13. With this the basic information of service entry sheet is fully completed. As per the requirement you can fill
other fields also if required.
14. To accept the service click on Accept icon or Control + F1 (Green flag icon).
Press Green Colour Flag Button
15. You can see the traffic light is become Yellow color. That means it is ready to save the service entry sheet.
The colour changes from red to
yellow and Press Save
16. Press or Ctrl+S to save the document.

5.9.3 Result
A message indicates that the service entry sheet saved, acceptance document posted.
5.9.4 Example
Service entry sheet saved, acceptance document 5000000134 posted.

5.10 Logistics Invoice Verification
5.10.1 Use
Accounting.
5.10.2 Procedure
down list
date
reference
For Example
USERMANUAL
default
purchase order
INR
drop down list
S1
reference
entered in PO
order
system
offered by vendor

reference document
list
above
down list
Choose Enter
your screen.

5.10.3 Result
5.10.4 Example
6 Asset Procurement – Business Process Procedure.

Purchase Order
Use
Prerequisites
1. Before creating purchase order if this vendor is subject to Tax Deduction at Source (TDS) or with holding tax
please ensures that necessary entries in vendor master is updated.
2. Asset Management Module Active.
Procedure
Enter Account Enter PO Qty,Net

Assignment ‘A’ Price,Currency,
and Short text of Material Group
the Assest
Enter Code V1
1. Enter the respective Asset No.
Enter the Asset
No.
3. Click Taxes Tab to View the Tax Details
IIN FV11 maintain Condition record for respective Tax Conditions with Material Group/Plant combination.
3.Click Save Button to Save the PO.
Result
Purchase Order Created with No. 230000000.
Release of Purchase Order

Procedure
For Release of Purchase order Please refer Stock Procurement Manual.
Goods Receipt for Purchase Order

Use
Prerequisites
Purchase Order
Procedure
PO Number Known
Select Only Capture
Excise Invoice
Save the Document.
Result
Material Document 500000029 Posted.
Post Excise Invoice

6.4.1 Procedure
SAP R/3 menu CIN Easy Screen(J1ILN) Indirect Taxes Procurement
Incoming Invoice Central Processing ->Post Excise Invoice
Click Simulate Cenvat.
Click Post Cenvat.
Click Continue
6.4.2 Result
Excise Invoice Posted.
Logistics Invoice Verification
6.5.1 Use
Accounting.
6.5.2 Procedure
Click Simulate
Click Save.
6.5.3 Result
Invoice Document 5105600133 Posted.
7 Excise Periodic Processing – Business Process Procedure
Excise Periodic Processing
Purpose
Excise Periodic Processing’s that are to be carried out at end of a period. Excise Periodic Processing
helps you prepare and carry out the activities required for day-end or month-end and year-end
closing.
• TR6 Challan Posting with PLA Register Updation

• Utilization of CENVAT
• RG1 Register updation
• Proforma for Monthly Return under Rule 7 of the Cenvat Credit Rules, 2001
Prerequisites
Before execute business scenarios, you need to post the business processes transactions from other
scenarios.
As part of the integrated scenario, this scenario needs several User Manuals as prerequisites to
demonstrate these include:
• Production Planning and Discrete Manufacturing

• Procurement of Stock Materials
• Sales and Distribution
Excise Report - CENVAT Register
Use
Details to submit an Annexure to the Excise Authorities as a Monthly Return Under Rule 57AE of the
Central Excise Rules, 2001. CENVAT Register displays input credit details for Raw materials or
Capital Goods. This report can be generated detailed as Annexure or summary as Abstract.
Prerequisites
User must be assigned the Indian Localization menu.
Procedure
SAP R/3 menu Country India User Menu → Indirect Taxes → Registers →
Excise Tax → CENVAT Register
Transaction code J2I9
10. On the Proforma for Monthly Return Under Rule 57AE of the Central Excise Rule screen, make the following
entries:
Select the Radio Button for Capital Goods / Inputs to

display Annexure / Abstract
Company Company code R 1000
Code
Excise Group Excise Group for R 10
which ID for which
CENVAT Register is
being generated
Posting Date Posting date range R The date from
the beginning of
the month to
end of the
month
Annexure Output to be C Select this radio button if At time you can
generated Annexure the out put is being generate an
or Abstract generated for Annexure Annexure or
Abstract
Abstract Output to be C Select this radio button if At time you can
generated Annexure the out put is being generate an
or Abstract generated for Abstract Annexure or
Abstract
Inputs Annexure to be C Select this radio button if At time you can
generated for Input the out put Annexure is generate an
materials or Capital being generated for Input Annexure for
Goods Materials Input materials
or Capital
Goods
Capital Annexure to be C Select this radio button if At time you can
Goods generated for Input the out put Annexure is generate an
materials or Capital being generated for Capital Annexure for
Goods Goods Input materials
or Capital
Goods
11. The out put can be saved into a local file or printed by using the print options.
Result
You are able to generate Proforma for Monthly Return Under Rule 57AE of the Central Excise Rule.
Excise Register Updation
7.3Updation of RG1 Register
Use
RG1 register maintained at Manufacturing Plants for excisable finished goods. The register shows
goods movements from the factory to a store and stores to customer, specifically for excisable
finished goods. The R/3 System generates all the necessary entries in the register.
This report only creates register entries for goods movements that have not already been entered. It
does not create duplicate entries.
Using this activity, you can also update the goods issue into RG23A Part I and RG23C Part I, Register by
select the radio button option in the Registers.
Prerequisites
To extract the data to RG1 Register, Material numbers has to be maintained in the table J_2IRG1BAL
- Opening/Closing balance table for RG1.
Procedure
Excise Tax → Update RG23A/C Issues and RG1
2. On the Update of Registers RG1 and RG23(Part1) screen, make the following entries:
Select appropriate Classification
Select the Radio Button for RG1 / RG23A Part 1 / RG23C

Part 1 Updation
Field name Description R/O /C User action and Comment

values
Company Company Code R 1000
Code
Plant Plant – for which RG1 R 1000
Register is being
maintained
Excise Group Excise Group for R 10
which RG1 register is
being maintained
Material Material document O Based on the updation
Document number criteria enter values
Number
Document Material document O Material document year
Year year
Posting Date Date of Material R Enter the Material
document Posted Document
Posting Date
Movement Movement Type used O
Type for posting the
materials
Storage Storage location used O
Location for posting the
material movements
Material Material number to O
update the RG1
Register
Document Document date of the O
Date material document
Batch Batch number of the O
materials
Stock Type Stock Type declared O
Rule Excise Classification O
Rule
Classification Pre-defined R IIM Receipts
Classifications For updating of RMA- Receipt from
goods receipts manufacture
from ROP-Receipt from
Manufacturing outside under any other
plant use RMA provision
Issues
For updating of IDH-Removal from
Goods issue, factory on payment of
i.e. Removal duty for Home use
from factory on IDE-Removal on
payment of duty payment of duty for
for home use – export under no bond
IDH
IWE-Removal without
payment of duty for
export under bond
IWT-Removal without
payment of duty for
transfers
IWO-Removal without
payment of duty for
other purpose
RG23/ RG1 RG23 / RG1 updation R Select the Date to be considered by
date appropriate radio the system for updation of
button to update RG1 Register
the RG1 Document Entry date
Register. Please
Document posting date
select the
document entry System date
date radio button
Registers Register to update R Select the By using this Transaction
RG23A radio you can update the
button to update following Registers
the RG1 RG23A Part1
Register,
RG23C Pat1
RG1
Please press enter and ignore any messages.
Update the Receipts to RG1 Register and then update the issue to RG1 Registers. Follow the sequence of
transactions.
You can update the RG1 Register by selecting material document header values or Material document line
item level details or both together.
The following Classification codes need to be used while updating the Excise Registers:
Register Type Goods issues Goods receipts
RG 23A IIM ROP
IPD
IWD
RG23C IIM ROP
IPD
IWD
RG1 IDH RMA
IDE ROP
IWE
IWT
IWO
3. System will display the ‘Update of Registers RG1 and RG23 (Part1’) screen:
Displays all the line items to meet the selection criteria to update the RG1 Register.
Select Check Boxes for which Updation to be
4. Select the line items which needs to be updated to RG1 Register by selecting the check box at the beginning of
the each line item
Press Simulate
5. Simulate the selection by using the Simulate function or use Shift+F10 to simulate the selection
6. System will display the selection Green or Red Traffic lights. The line items which can be updated will be
displayed with Green Traffic Lights and the line items which can not be updated will be displayed with Red
Traffic Lights.
7. After selecting the right documents select the line item and use the Create button to update the RG1 Register or
use CTRL+Shit+F11 to make register entry.
Processing over for 3 records
Result
Processing over for <number of records selected> records

RG1 Register Extraction
Use
This step needs to be performed in order to create the RG1 details into the respective tables.
Prerequisites
You have to complete the update of RG1 Register before performing this step.
Procedure
Excise Tax → Extract
2. On the Excise Registers Extraction screen, make the following entries:
Choose Execute
Excise Group Excise group for which R 10
RG1 Register being
generated
State Date Starting date of R Starting date of data to be
Extraction extracted for RG1 registers
End Date Ending date of R Ending date of data to be
Extraction extracted for RG1 registers
Selection Mass extraction of R Select the radio button User can
Registers data to all registers Select Any Register option generate all the
registers
together or
individual
register wise
Select Selection of individual R Activate the RG1 Check
individual register box to extract the RG1
Registers Register
Display Last Displays the O
Extracted previously upto what
dates date the register has
been extracted for
information
3. Click on execute icon or Press F8 or Program Execute
Press Yes which appears in the Dialog
4. If the RG1 Register is being generated for the Period First Time, system will execute the report and display
the pop-screen with Register name and Green Tick mark, if it is successfully extracted, otherwise it will
show the Red Cross.
Result
RG1 data has been extracted
Using this activity, you can also extract the following Excise Registers in addition to RG1.
• RG23A Part I
• RG23A Part II
• RG23C Part I
• RG23C Part II
• PLA
In the Registers select option, if you select All registers, the system will create an extract for all registers. If you only
want to create an extract for specific registers, select Select any register and then the registers that you want to
extract.
RG1 Register Print Utility
Use
The objective of this process is to print the RG1 Register or to display on the screen.
Prerequisites
The data must be extracted to the RG1 Register for the period to which RG1 Register need to be
printed.
Procedure
Excise Tax → Print Utility program
2. On the Print Excise Registers screen, select the RG1 Radio button to print the RG1 Register.
Choose
3. Click on Execute icon or Press F8 or Program Execute
4. On the Print RG1 Register screen, make the following entries:
Choose

Excise Group Excise group for which R 10 Enter the Excise
RG1 Register is being Group
generated
Start Date Starting date of the R For example Starting Date
period for which 01.09.2005
currently RG1Register
is being generated
End Date Ending date of the R For example: Ending Date
currently RG1Register
is being generated
6. System will display the Print parameters maintenance screen assign the out put device name and select the
Print Preview option. System will display the output on the screen.
7. See the output on the screen and based on the requirement print the output using Ctrl + P option or through
menu Text Print.
Result
RG1 Register ready to print or you can see on the screen.
Using this activity, you can also view or print the following Excise Registers in addition to RG1
• RG23A Part I
• RG23A Part II
• RG23C Part I
• RG23C Part II
• PLA
You have to print or see the registers one after another.
8. PLA Register Extraction

PLA Register Extraction
Use
This step needs to be performed in order to extract the data relating to PLA Register to respective
tables.
Prerequisites
The following process has been executed, if any transactions took place during the period of PLA
register extraction for payment of CENVAT and Sale of goods
• TR6 Challan Updation

• Utilization of CENVAT
Procedure
Excise Tax → Extract
2. On the Excise Registers Extraction screen, make the following entries:
Choose

Excise Group Excise group for R 10
which PLA Register
being generated
State Date Starting date of R Starting date of data to be
Extraction extracted for PLA registers
End Date Ending date of R Ending date of data to be
Extraction extracted for PLA registers
Selection Mass extraction of R Select the radio button Select User can
Registers data to all registers Any Register option generate all the
registers
together or
individual
register wise
Select Selection of R Activate the PLA Check box to
individual individual register extract the PLA Register
Registers
Display Last Displays the O System will
Extracted previously upto display the last
dates what date the extraction date
register has been on the screen
extracted for
information
3. Click on execute icon or Press F8 or Program Execute
4. If the PLA Register is being extract for the Period First Time, system will execute the report and display the pop-
screen with Register name and Green Tick mark, if it is successfully extracted, otherwise it will show the Red
Cross.
Result
PLA data has been extracted
PLA Register Print Utility

Use
The objective of this process is to print the PLA Register or to display on the screen.
Prerequisites
The data must be extracted to the PLA Register for the period to which PLA Register need to be
printed.
Procedure
Excise Tax → Print Utility program
2. On the Print Excise Registers screen, select the PLA Radio button to print the PLA Register.
Choose
4. On the Print PLA Register screen, make the following entries:
Choose

Excise Group Excise group for which R 10 Enter the Excise
PLA Register is being Group
generated
Start Date Starting date of the R For example Starting Date
currently PLA Register
is being generated
End Date Ending date of the R For example Ending Date
currently PLA Register
is being generated
6. System will display the Print parameters maintenance screen assign the out put device name and select the
Print Preview option. System will display the output on the screen.
7. See the output on the screen and based on the requirement print the output using Ctrl + P option or through
menu Text Print.
Result
PLA register displayed on screen or printed.
9. Reports
Purchasing
Purchasing Documents per Vendor (ME2L)
Chose Execute Icon
Purchasing Documents per Material (ME2M)
Choose Execute
Source List for Material (ME0M)
Purchase Info Record per Material (ME1M)

Purchasing Values(MC$G)
Choose Execute
Click Switch Drill Down Icon

9.2 Inventory
9.2.1 Material Document List (MB51)
Choose Execute
Click this Icon to have
Detail View.
9.2.2 Diplay Warehouse Stock (MB52)
Choose Appropriate
Input for your selection.
Choose Execute or Press F8.

9.3.3 Stock on Posting Date (MB5B)
Select Apropriate Entries

For your selection
Choose Execute or Press F8

9.3.4 Stock Overview (MMBE)
Choose Execute or Press F8

9.3.5 Stock in Transit (MB5T)
Choose Execute or Press F8.
This means no stock in transit

9.3.6 Slow Moving Items (MC46)
Select Appropriate Input

Entries
Choose Execute and Press F8.

Sap MM Pur Manual Best PDF

Hochgeladen von

Dokumentinformationen

Originaltitel

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

Sap MM Pur Manual Best PDF

Hochgeladen von

Copyright:

Verfügbare Formate

USER MANUAL

DOCUMENT CONTROL SHEET

Project name Document name Document location

R Required entry field

O Optional entry field

1.1 Procurement of Stock Materials – Raw Material Local / Return

1. Material Master Record

1.1.3 Material Master Record

Logistics Materials Management Material Master Material Create

Press Enter to see the pop-up window.

1.1.3.1 Basic Data Views

Enter the Material

Enter the division if Stock

Enter the Gross and Net

Enter here if the material is

Enter any Basic Material is there

Enter the Purchasing Group –

If the Ordering Unit is other

Enter the Purchasing Value

Enter the No. of Days required

Enter the appropriate MRP

Enter the appropriate Valuation

If Price Control is V enter the

Enter Respective Profit

After entering all the details, press to save the Material.

Vendor Number to be put manually

Enter Company Code

Enter Account Group (Various

Press Enter to input the details of the vendor.

Excise Indicator for Vendor as 1 –

Enter whether this vendor is approved or on Probation

1.1.4.2 Accounting Data

Enter the appropriate Payment Methods

The below screen is explained in detail in FI User Manual:

Enter the Order Currency, Terms of

Enter the appropriate Schema group, Vendor

1. Select GR-based Inv. Verf if Invoice

Schema group, Vendor:

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

1.1.5 Purchasing Info Record

Enter the Info Category as

Press enter the details in the Purchasing Info Record.

Enter the Standard Quantity

Enter the appropriate Tax Code

It is defaulted from the Material Master

Enter the Net Price

Purchasing Info Record is created

Purchasing Info Record 5300000384 is created.

Enter the Material No. and Plant

Maintain the Validity Enter the Vendor and

Result: Source List changed.

1.1.7.1 Chapter IDs

Select Chapter ID and Press

Press New Entries to go to the next screen.

Enter the Description as per

Press to save the data.

Select the Material and Chapter-Id Combination

Select Material and Chapter ID Combination and Press

Enter the material type based on

Press to save the data.

1.1.7.3 Vendor Excise Details

Select the Vendor Excise Details

Press New Entries to Create Vendor Master Excise