Master Datanew
Master Datanew
Master Datanew
Implementation
2.JIC_MM:Organization Structure:
JIC_MM-01:Company
The company code is the organizational unit that structures enterprise from a financial
accounting perspective. In the MM module of SAP system, these organizational entities are
important in that these entities form a platform for the creation of master data,
transaction data and MM reporting. In SAP only one company code will represent JICPL
JIC_MM-02:Plant
A plant is an organizational logistics unit that structures the enterprise from the
perspective of production, procurement, plant maintenance, materials planning and
warehousing.
Plant 1100 is the Processing unit for JICPL. The entire procurement, planning, production
and customer delivery of products happens from this unit.
JIC_MM-03:Storage Location
In SAP, storage location is a location of physical storage of stocks within a plant. A storage
location is used in goods receipt, goods issues and returns receipt
JIC_MM-04:Purchase Organisation
JIC_MM-04:Purchasing Group
SAP BBP Document Version 1.0 Page 2 of 27
Project- SAP S/4 Hana
Implementation
A purchasing group is the key for a buyer or group of buyers responsible for certain
purchasing activities.
During Purchase Order creation, it is mandatory to enter the Purchasing Group code to
specify, which department is responsible for that Purchase Order. The Purchasing Group
also decides the process flow for PO Approvals.
3.Master Data
Material master contains information of all the materials that a company produces &
procures, stores & sales. It is the company’s central source for retrieving material specific
data.
JIC01_MM-01:Material Type:
Material type groups together materials with the same basic attributes, for example, raw
materials, semi-finished products, or finished products. When creating a material master
record, materials are assigned to a material type. Material type determines whether the
material number can be assigned internally or externally and the number range from which
the material number is drawn.
The following material types with number ranges which will be used in Plant 1100:
Note: All materials are having Internal number ranges, except SFG & F.G material type.
JIC01_MM-02:Vendor Master:
A vendor is a business partner from whom goods or services can be procured. Every vendor
can carry out a number of different functions, such as delivering goods, issuing invoices.
A vendor master record contains the vendor’s name and address, as well as data such as:
The currency used for ordering from the vendor.
Terms of payment
Names of important contact persons (sales staff)
Since, to the accounts department, vendors are generally creditors (accounts payable),
the vendor master record also contains accounting information, such as the relevant
control account (reconciliation account) in the general ledger.
Therefore, the vendor master record is maintained by both Accounting and Purchasing.
When creating a vendor master record, you must specify an account group. You use the
account group to determine
Which fields are ready to accept input and which fields require entries when master
records are created and changed
Whether the account is a one-time account.
Account
SR.NO Description Number Range
Group
1 ZDOM Domestic Vendor 100000-199999
2 ZIMP Import Vendor 200000-299999
3 ZEMP Employee Vendor 300000-399999
4 ZONE One Time Vendor 400000-499999
Note:
Remember to maintain the field status. If you have not selected a status for a field
group, the associated fields will be hidden.
You use the field status to define
Which fields require the entry of data when a vendor master record is
created (mandatory-entry fields).
Which fields allow the entry of data (optional-entry fields)
Which fields are to be hidden by the System
Purchasing info record contains concise information about a material and a vendor
supplying that material. Information like price, lead times, reminders, etc. can be stored
in the info record. An info record thus represents a material-vendor relationship.
Planned Delivery Time: It is lead time required by the vendor to deliver goods.
Tolerance Limit: It is limit defined for under delivery and over delivery of the goods
acceptable for material-vendor combination.
GR based IV: This field specifies that good receipt based invoice verification has to be
done for a purchase order item or invoice item.
Tax Code: It represent tax category which needs to be considered when making tax
returns to the tax authorities.
The info record contains quotation and ordering data. The data in the info record (prices
for example) is also used as default data for purchase orders.
For instance, one can store the current and future quotation conditions (discounts, fixed
costs etc.) in the info record, in order to be able to copy them into POs. Also the vendor’s
conditions can be maintained directly in the info record.
Business Requirement
JIC01_MM-04:Source List
1. Automatically
2. Manually
In material Master(MM02)-> Purchasing Tab -> Check the box for Source list.
Business Requirement:
Optional maintenance of Source List
JIC01_MM-05:Pricing
We define access sequence and condition types in purchasing conditions and assign these
condition types in the pricing procedure.
Schema Group:
Schema group allow you to group together certain purchase organizations that uses
the same calculation schema, we can also use them to group together vendors for
whom the same calculation schema is valid.
JIC01_MM-06:Service Master:
Service Category
The service category defines certain attributes of the service and has a control
function. It determines number ranges and fields available for a particular service.
It is similar to material types for materials The service category that will be used
here will be Int Number Range.
Vendor will remain common for both material and service procurement but
purchasing document types would be different. For availing services, purchase
order with service document type needs to be selected.
Business Requirement:
JIC01_MM-07:Material Group:
Material group also enables you to group together several materials or services. Material
group can be used for different analytical purposes used in reporting.
JIC01_MM-08:Unit of Measurement
Stock-keeping unit all other units of measure that are used converted to the base unit of
measure.
Under the base unit, a number of alternative units can be used. These units may be
converted from one to the other. If there is no standard formula for converting an
alternative unit of measure to the base unit of measure, the conversion factor for the units
of measure in the material master is to be entered
JIC01_MM-09:Terms of Payment:
Terms of payment is used in SAP to determine the due date and discount calculation.
R011 from the 1st running bill. Invoice shall be generated on monthly basis
100% Advance
R012 Against P.I.
R013 30 days PDC
JIC01_MM-09:IncoTerms:
Inco term is the place of delivery, ex : by air, by road, by ship
Incoterm Code Incoterm Description
Code (3 char) (30 char)
CAD Cash against Document
CFR Costs and freight
COD Cash/Check On Delivery
ETG Ex Works Transport Godown
CIP Carriage & Insurance Paid
EXW Ex Works
FOB Free on board
FOR Free on Road
DDP Door Delivery Freight Paid
DDF Door Delivery Freight To be Paid
GDP Godown Delivery Freight to pay
GDF Godown Delivery Freight to paid
DAS Delivery At site
CIF Costs Insurance and freight
At JICPL internal number range will be used for PR documents, these will be
identified based on the document types of ZNB.
2) Source Determination
At JICPL internal number range will be used for RFQ documents, these will be
identified based on the document types of ZAN.
The system is capable of simulating pricing scenarios, allowing the user to compare
a number of different quotations.
The Purchasing system adopts information from the requisition and the quotation to
help the user to create a purchase order/ scheduling agreements. With purchase
requisitions, the POs can be generated. User can also create Quantity/Value based
Contracts with validity dates, which can be referenced in the POs
At JICPL internal number range will be used for RFQ documents, these will be
identified based on the document types of ZAN.
5) Po Monitoring
Goods receiving personnel can confirm the receipt of goods simply by entering the
PO number/SA number. By specifying permissible tolerances, buyers can limit over-
and under deliveries of ordered goods. The relevant accounting entries are
performed by the SAP system in background.
7) Invoice Verification.
Once goods/services are received then the vendor payment is done for acquired
goods and services. The amount to be paid along with details of material/service is
provided by vendor in form of document. This is maintained in SAP and is known as
invoice verification.
The incoming invoices are verified in terms of their quantity, prices, and taxes.
When the invoice is posted, the invoice data is saved in the system. The system
updates the data saved in the invoice documents in MM and FI modules. Down
Payment cleared by Functionality to be available during Invoice verification. The
same will from Purchase Order.
8) Payment to Vendor
Procurement of Services
Physical Inventory
Issue of Goods
Transfer posting
Batch Management
This purchasing process starts when requirements are generated in the form of purchase
requisition as a procurement proposal and purchasing employee requests quotations for
the supply of a specific material from different vendors. A quotation comparison list
enable s him to select the best source of supply by evaluating the responses/quotations of
the relevant vendors.
The Procurement Process for Raw materials will involve the following steps:
1. Purchase Requisition
2. Approval of Purchase Requisition
3. RFQ creation
4. Quotation comparison
5. Creation of Purchase Order
6. Approval of Purchase Order
7. Posting Goods Receipt
8. Invoice Verification
The Procurement Process for Raw materials will involve the following steps:
Processes T.Code
1. Purchase Requisition ME51N
2. Approval of Purchase Requisition ME54N
3. RFQ creation ME41
4. Maintain Quotation ME47
4. Quotation comparison ME49
5. Creation of Purchase Order ME21N
6. Approval of Purchase Order ME29N
7. Posting Goods Receipt MIGO
8. Invoice Verification MIRO
1. Purchase Requisition:
2. PR Release Procedure:
This component will be used to set up approval procedures for purchase req. In case of PR
the release can be at either item level or header level. If it is at item level then each PR
item has to be released separately.
1. Create RFQ
This component is used to manage and compare requests for quotation (RFQs)
issued to vendors.
In Purchasing, the RFQ and the quotation form a single document. Prices and
conditions quoted by vendors are entered in the original RFQ. If you have issued
an RFQ to several vendors, you can have the system determine the most
favorable quotation submitted. The RFQ can be created by referencing the PR.
Then, all the data available in the purchase requisition is copied by default by the
system.
2. Maintain Quotation:
A quotation is an offer by a vendor to a purchasing organization regarding the
supply of materials subject to specified conditions. The quotation is the
vendor’s response to a request for quotation issued by a purchasing
organization.
A quotation consists of items in which the total quantity and delivery date of an
offered material or service are specified. When you receive the quotation from
a vendor, enter the respective quotations in the system.
3. Price Comparisons:
After entering all the received quotations for a particular enquiry in the system,
the comparison will be done by referring to the collective RFQ number.
Comparison will happen.
. Create a purchase order
Then Carry out a goods receipt (movement type 101) against the purchase
order.
Goods receipt will be created with reference to the purchase order.
Following data needs to be entered
a. Enter the header data – invoice date and posting date for the GR.
b. Select the movement type:
c. Since the Qty delivered is intended consumption/usage,select Mov type 101.
7.Invoice Receipt:
After Goods Receipt, the invoice is received from the vendor. The process of
invoice verification and subsequent payment to the vendor is covered in the FI
process document.
Same as above
Procurement process for Packaging Materials will be same as mentioned above only
material type & Valuation Class will be changed as below
Same as above
Procurement process for Spare Parts Materials will be same as mentioned above only
material type & Valuation Class will be changed as below
Same as above
Same as above
Procurement process for Consumable Materials will be same as mentioned above only
material type & Valuation Class will be changed as below:
Procurement process for Capital Goods/Asset will be same as mentioned above only
Account Assignment Category "A" need to be Selected:
Account Assignment Category: The account assignment category controls the accounting data of
purchase requisition item and determines which account assignment data (such as cost center, account
number and so on) is necessary for the item.
Item Category: Item category defines how the procurement of a material or service
item is controlled. The item category determines the field selection and whether any
additional data
Note:
Valuation class-5000
Service Procurement starts with concerned user raising a request for service. This request
is further converted into service order or Service PO.
Terms and condition are finalized while creating a service PO. After the mentioned service
is done service entry sheet has to be created and filled.
Service entry sheet is later on accepted by concerned user. On the basis of accepted
services invoice passing is done.
1. Purchase Requisitions
2. Approval of Purchase Requisition
3. RFQ creation(where applicable)
4. Quotation comparison (where applicable)
5. Creation of Purchase Order
6. Entry of services actually performed
7. Acceptance of services performed
8. Verification of invoices for services
1. Planned Services:
2. Unplanned Services:
With the setting of a value limit only. Unplanned services, these services that
cannot be specified in detail because their precise nature and scope are not
initially known, or services which for various reasons do not wish to plan.
Unplanned services
Therefore have no descriptions.
Steps:
1. Purchase Requisitions:
In the procurement of external services, the specifications to list the services with
descriptions, quantities, prices and other detailed information below the document
item level
Once the above details are maintained at the item level a separate tab will open to
enter the service details for the item. The following details need to be maintained at
the service screen:
• Service master number
• Quantity of service
The account assignment category ‘K’ will open a window for entering the account
assignment. Here the user will have to maintain his cost center.
Note: The indenter can maintain the additional data such as justification for services,
details etc. in the PR line item Text section, and this can be viewed by the
Approver (when doing release) and the Purchasing team, who will view the PR.
2. PR Release Procedure:
The release strategy for PR approval will be provided as per JICPL.
3. RFQ is Optional.
4. Create Purchase Order:
Purchase order can be created by directly referencing :
• Purchase Requisition:- All the line items for service purchase orders will be
account assigned and with item category “D”.
• It is required to maintain a short text at document item level.
5. Release Purchase Order:
The release strategy for PO approval will be provided as per RCM.
i. Collective Release: ME28
ii. Individual Release :ME29N
6. Service Entry Sheet:
The services actually performed (work actually done) so a service provider is recorded
in a Service Entry Sheet with reference to the purchase order. A service provider's
invoice relating to a certain invoice can be entered only after the entry sheet has been
accepted.
The following functions are available for service entry sheets: Create New Entry Sheet:
While creating an entry sheet planned services are defaulted from the purchase order.
The actual units of work done have to put in the entry sheet, in case the entire work for
the service item in the PO is done then the defaulted quantity from the PO can remain.
This purchasing process starts when requirements are generated in the form of purchase
requisition as a procurement proposal and purchasing employee requests quotations for the
supply of a specific material from different vendors. A quotation comparison list enable s
him to select the best source of supply by evaluating the responses/quotations of the
relevant vendors.
The Procurement Process for Raw materials will involve the following steps:
The Procurement Process for Import Raw materials will involve the following steps:
Processes T.Code
1. Purchase Requisition (Optional) ME51N
2. Approval of Purchase Requisition ME54N
3. RFQ creation (Optional) ME41
4. Maintain Quotation ME47
4. Quotation comparison ME49
5. Creation of Purchase Order ME21N
6. Approval of Purchase Order ME29N
7. Posting Custom Invoice MIRO
8. Posting Goods Receipt MIGO
9. Invoice Verification MIRO
Steps:
6. Process same till purchase order Release.
SAP BBP Document Version 1.0 Page 25 of 27
Project- SAP S/4 Hana
Implementation
7. Custom MIRO
At the time of receiving customs invoice, during the IV process, the Accounts
Team will require to process using the Currency INR, and manually change the
proposed duties, as per the amount received in the invoice.
FI department makes the relevant payments to custom vendor.
8. Goods Receipt
Carry out a goods receipt (movement type 101) against the Purchase Order.
(If the material is activated for Quality inspection after GR, then it will go to
inspection stock after GR.)
This component will be used to post the receipt of goods from an external vendor.
Goods receipt will be created with reference to the PO.
9. Invoice Verification
Final post the vendor invoice using transaction code MIRO