1 of 36

SAP Material Management

GR-Based IV vs Non GR-Based IV

LIV price different from PO price

QTY at time of LIV is enough stock

Any Differences between the 2 setup

Establishing the basic Principle behind

GR-Based IV vs Non GR-Based IV

2 of 36

Scenario assumption (local currencies)

3 partial GR for both POs (GR-based and Non GR-based IV)

PO price is $12/pc

GR#1 500

GR#2 800

GR#3 700

Price will be based on PO (assume GR cannot change price)

LIV#1 500 @ $14/pc (higher than $12/pc)

LIV#2 800 @ $10/pc (lower than $12/pc)

LIV#3 700 @ $13/pc (higher than $12/pc)

Stocks at point of LIV enough and variances are all posted back to stocks account

Stock at point of LIV LOWER than IV Qty with be dealt with in another ppt

The main purpose of this demo is to show the basic principles of GR-based IV vs non GR-based IV steps and any impact/differences

in this BASIC scenario

3 of 36

Material MAT1000 & MAT2000 both are “V” Price Control now at $10 unit price

4 of 36

Initial stock entry to prepare for simlation each with 1000 pc of stock @ $10/pc and both now at total stock value of $10,000 (same for both)

5 of 36

Vendor V1

GR-Based IV

Vendor V2

Non

GR-Based IV

6 of 36

PO# 4500017239

Vendor V1

Material MAT1000

Price $12/pc

PO# 4500017240

Vendor V2

Material MAT2000

Price $12/pc

7 of 36

PO# 4500017239

Vendor V1

Material MAT1000

GR-Based IV

PO# 4500017240

Vendor V2

Material MAT2000

Non GR-Based IV

8 of 36

Scenario assumption (local currencies)

3 partial GR for both POs (GR-based and Non GR-based IV)

PO price is $12/pc

GR#1 500

GR#2 800

GR#3 700

Price will be based on PO (assume GR cannot change price)

LIV#1 500 @ $14/pc (higher than $12/pc)

LIV#2 800 @ $10/pc (lower than $12/pc)

LIV#3 700 @ $13/pc (higher than $12/pc)

Stocks at point of LIV enough and variances are all posted back to stocks account

The main purpose of this demo is to show the basic principles of GR-based IV vs non GR-based IV steps and any impact/differences

in this BASIC scenario

9 of 36

PO# 4500017239

Vendor V1

Material MAT1000

GR-Based IV

3 partial GR

PO# 4500017240

Vendor V2

Material MAT2000

Non GR-Based IV

3 partial GR

10 of 36

Material MAT1000

(GR for GR-Based IV PO)

MAP $11.33/pc

Total Stock 3000

Total Value $34000

Material MAT2000

(GR for Non GR-Based IV PO)

MAP $11.33/pc

Total Stock 3000

Total Value $34000

Partial GR

no difference

11 of 36

1000 x $10 + (500 x $12) + (800 x $12) + (700 x $12)

-----------------------------------------------------------------------

1000 + 500 + 800 + 700

= $1000 + $6000 + $9600 + $8400

-----------------------------------------------

3000

= $34000

-----------

3000

= $ 11.33/pc

Both scenario GR-Based IV and Non GR-Based IV

resulting in same situation of MAP values

12 of 36

Scenario assumption (local currencies)

3 partial GR for both POs (GR-based and Non GR-based IV)

PO price is $12/pc

GR#1 500

GR#2 800

GR#3 700

Price will be based on PO (assume GR cannot change price)

LIV#1 500 @ $14/pc (higher than $12/pc)

LIV#2 800 @ $10/pc (lower than $12/pc)

LIV#3 700 @ $13/pc (higher than $12/pc)

Stocks at point of LIV enough and variances are all posted back to stocks account

The main purpose of this demo is to show the basic principles of GR-based IV vs non GR-based IV steps and any impact/differences

in this BASIC scenario

13 of 36

Characteristic of GR-Based IV is to present the separate partial GR into 3 line for LIV (so that if partial invoice based on each partial GR, user only have to de-select or select the appropriate line item)

PO# 4500017239

Vendor V1

Material MAT1000

GR-Based IV

LIV#1 500pc @ $14/pc

14 of 36

Invoice#1

$14/pc for 500 pc

(PO price is $12/pc)

user only select item 1 and onlty need to change the value

from

$5000 (500 x $12/pc) to

$7000 (500 x $14/pc)

PO# 4500017239

Vendor V1

Material MAT1000

GR-Based IV

LIV#1 500pc @ $14/pc

Qty no change

15 of 36

Characteristic of

Non GR-Based IV is to present the separate partial GR into TOTAL

User will have to change both Amount and Qty when supplier send partial Invoices

PO# 4500017240

Vendor V2

Material MAT2000

Non GR-Based IV

LIV#1 500pc @ $14/pc

16 of 36

Invoice#1

$14/pc for 500 pc

(PO price is $12/pc)

since the LIV is presented with TOTAL line for Non GR-Based IV PO, the user will have to change both Amount and Qty to match the supplier partial invoice

PO# 4500017240

Vendor V2

Material MAT2000

Non GR-Based IV

LIV#1 500pc @ $14/pc

Both Amount and Qty have to be changed

17 of 36

PO# 4500017239

Vendor V1

Material MAT1000

GR-Based IV

3 partial GR

LIV #1 $ 14/pc

PO# 4500017240

Vendor V2

Material MAT2000

Non GR-Based IV

3 partial GR

LIV #1 $ 14/pc

18 of 36

Material MAT1000

(GR for GR-Based IV PO)

MAP $11.67/pc

Total Stock 3000

Total Value $35000

after LIV#1 @14/pc

Material MAT2000

(GR for Non GR-Based IV PO)

MAP $11.67/pc

Total Stock 3000

Total Value $35000

after LIV#1 @14/pc

after LIV#1

both same

MAP $11.67/pc

19 of 36

= $34000 + (($14-$12) x 500)

-------------------------------------

3000 + 0

= $34000 + ($2 x 500)

--------------------------

3000

= $35000

-----------

3000

= $11.67/pc

Both scenario GR-Based IV and Non GR-Based IV

resulting in same situation of MAP values after LIV#1 @ $14/pc

PO Price is @ $12/pc

20 of 36

Scenario assumption (local currencies)

3 partial GR for both POs (GR-based and Non GR-based IV)

PO price is $12/pc

GR#1 500

GR#2 800

GR#3 700

Price will be based on PO (assume GR cannot change price)

LIV#1 500 @ $14/pc (higher than $12/pc)

LIV#2 800 @ $10/pc (lower than $12/pc)

LIV#3 700 @ $13/pc (higher than $12/pc)

Stocks at point of LIV enough and variances are all posted back to stocks account

The main purpose of this demo is to show the basic principles of GR-based IV vs non GR-based IV steps and any impact/differences

in this BASIC scenario

21 of 36

Characteristic of GR-Based IV

note item 1 completed, remaining partial GRs waiting for LIV

PO# 4500017239

Vendor V1

Material MAT1000

GR-Based IV

LIV#2 800pc @ $10/pc

22 of 36

Invoice#2

$10/pc for 800 pc

(PO price is $12/pc)

user selects only item 2 and change the Amount to $8000 (800 x $10)

Original expected was $9600 (800 x $12)

Qty no change

PO# 4500017239

Vendor V1

Material MAT1000

GR-Based IV

LIV#2 800pc @ $10/pc

23 of 36

Characteristic of

Non GR-Based IV is to present the separate partial GR into TOTAL

remaining to be invoices from all Partial GRs

PO# 4500017240

Vendor V2

Material MAT2000

Non GR-Based IV

LIV#2 800pc @ $10/pc

24 of 36

PO# 4500017240

Vendor V2

Material MAT2000

Non GR-Based IV

LIV#2 800pc @ $10/pc

Invoice#2

$10/pc for 800 pc

(PO price is $12/pc)

since the LIV is presented with TOTAL line for Non GR-Based IV PO, the user will have to change both Amount and Qty to match the supplier partial invoice

Both Amount and Qty have to be changed

25 of 36

PO# 4500017240

Vendor V2

Material MAT2000

Non GR-Based IV

LIV#2 800pc @ $10/pc

PO# 4500017239

Vendor V1

Material MAT1000

GR-Based IV

LIV#2 800pc @ $10/pc

26 of 36

Material MAT1000

(GR for GR-Based IV PO)

MAP $11.13/pc

Total Stock 3000

Total Value $33400

after LIV#2 @10/pc

Material MAT2000

(GR for Non GR-Based IV PO)

MAP $11.13/pc

Total Stock 3000

Total Value $33400

after LIV#2 @10/pc

after LIV#2

both same

MAP $11.13/pc

27 of 36

= $35000 - (($12-10) x 800)

-----------------------------------

3000 + 0

= $35000 - $1600

---------------------------

3000

= $33400

----------

3000

= $11.13/pc

Both scenario GR-Based IV and Non GR-Based IV

resulting in same situation of MAP values after LIV#2 @ $10/pc

PO Price is @ $12/pc

28 of 36

Scenario assumption (local currencies)

3 partial GR for both POs (GR-based and Non GR-based IV)

PO price is $12/pc

GR#1 500

GR#2 800

GR#3 700

Price will be based on PO (assume GR cannot change price)

LIV#1 500 @ $14/pc (higher than $12/pc)

LIV#2 800 @ $10/pc (lower than $12/pc)

LIV#3 700 @ $13/pc (higher than $12/pc)

Stocks at point of LIV enough and variances are all posted back to stocks account

The main purpose of this demo is to show the basic principles of GR-based IV vs non GR-based IV steps and any impact/differences

in this BASIC scenario

29 of 36

Characteristic of GR-Based IV

note item 1 and 2 are completed and only the 3rd partial GR remains to be invoiced

PO# 4500017239

Vendor V1

Material MAT1000

GR-Based IV

LIV#3 700pc @ $13/pc

30 of 36

PO# 4500017239

Vendor V1

Material MAT1000

GR-Based IV

LIV#3 700pc @ $13/pc

Invoice#3

$13/pc for 800 pc

(PO price is $12/pc)

there is only one remaining partial GR item to be invoiced, user just change to amount to match the supplier invoice

Qty no change

31 of 36

Characteristic of

Non GR-Based IV is to present the separate partial GR into TOTAL

remaining to be invoices from all Partial GRs

PO# 4500017240

Vendor V2

Material MAT2000

Non GR-Based IV

LIV#3 700pc @ $13/pc

32 of 36

PO# 4500017240

Vendor V2

Material MAT2000

Non GR-Based IV

LIV#3 700pc @ $13/pc

Invoice#3

$13/pc for 700 pc

(PO price is $12/pc)

since the LIV is presented with TOTAL line for Non GR-Based IV PO, the user will have to change both Amount. Qty is the last to be invoiced, so it remains the same.

Since this is the last invoice, the Qty is remaining and last therefore the same,

33 of 36

PO# 4500017240

Vendor V2

Material MAT2000

Non GR-Based IV

LIV#3 700pc @ $13/pc

PO# 4500017239

Vendor V1

Material MAT1000

GR-Based IV

LIV#3 700pc @ $13/pc

34 of 36

Material MAT1000

(GR for GR-Based IV PO)

MAP $11.37/pc

Total Stock 3000

Total Value $34100

after LIV#3 @13/pc

Material MAT2000

(GR for Non GR-Based IV PO)

MAP $11.37/pc

Total Stock 3000

Total Value $34100

after LIV#3 @13/pc

after LIV#3

both same

MAP $11.37/pc

35 of 36

= $33400 + (($13-12) x 700)

-----------------------------------

3000 + 0

= $33400 + $700

---------------------------

3000

= $34100

----------

3000

= $11.37/pc

Both scenario GR-Based IV and Non GR-Based IV

resulting in same situation of MAP values after LIV#2 @ $13/pc

PO Price is @ $12/pc

36 of 36

In this simulation, we establish that for the scenario of

GR-Based IV and Non GR-Based IV

In Principle,

Variances Postings, MAP re-calculations due to Invoice Price differences are the SAME for both.

(with no other “variables” eg: different currencies, reversals, returns, return delivery, goods issue in this scenario)

The main purpose of GR-Based IV and Non GR-Based IV is

to present the Partial Goods Receipts remaining to be invoiced

in

Separate Line items (GR-Based IV)

or

Total Line items (Non GR-Based IV)