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1

Materials Management –

Training agenda

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Material management – Training agenda

George GUIU, Rompetrol

Augustin SANDU, Romsys

Nicolai BIRSAN, Romsys

04 - 08.07.2011

11-15.07.2011

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Agenda

  1. SAP Navigation and Overview
  2. Organizational Levels in Purchasing
  3. Master Data in Materials Management
  4. Procurement of Stock Materials
  5. Procurement of Consumable Material
  6. Blanket Purchase Order
  7. Procurement of External Services
  8. Procurement of Fix Assets
  9. Releasing purchasing documents
  10. Goods Receipt

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Agenda

  1. Return Delivery
  2. Goods Issues
  3. Stock Transfers/Transfer Postings
  4. Physical Inventory
  5. Logistic Invoice Verification Procedure
  6. Vendor Consignment Process
  7. Subcontracting Process
  8. Vendor Evaluation
  9. Reporting and Analysis Functions
  10. Evaluation

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Agenda:

DAY 1:

  1. SAP Navigation and Overview - 4h
  2. Organizational Levels in Purchasing - 1h
  3. Master Data in Materials Management - 3h

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1. SAP Overview

Introduction – Benefits of SAP

SAP- Systems, Applications, Products in Data Processing

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1. SAP Overview

Financial Accounting and Controlling Modules:

FI - Financial Accounting: A wide performance spectrum which includes: Cash Management/Electronic Banking, Cash Budget management and consolidation.

CO - Controlling: Closed cost accounting from cost center accounting and cost element accounting through to profitability analysis.

AM - Asset management: the complete management of all fixed assets, from traditional asset accounting and technical assets management up to investment controlling.

PS – The integrated cooperation of all service area for project planning, processing and control.

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1. SAP Overview

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1. SAP Overview

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1. SAP Overview

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1. SAP Overview

Logistic Module

SD – Sales and Distribution: The turnkey solution for the integrated handling of all tasks for sales, shipping and billing.

MM – Material Management: The integrated, closed procurement process with system-supported integration of results and production planning.

PP – Production Planning: The PPC system suitable for all type of production with system supported integration of results and production planning. Quality Management: The system for quality assurance in all areas of the logistic chain.

PM – Plan Maintenance: The industry-neutral solution for the administration and repair of technical systems.

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1. SAP Overview

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1. SAP Overview

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1. SAP Overview

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1. SAP Overview

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1. SAP Overview

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1. SAP Overview

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1. SAP Overview

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1. SAP Navigation

Application Server Selection:

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1. SAP Navigation

Setting new password

Logon with the same user ID

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1. SAP Navigation �

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A typical screen layout (with different elements)

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1. SAP Navigation and Overview�

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User Menu and Favorites

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1. SAP Navigation and Overview�

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System and Help Menus

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1. SAP Navigation and Overview�

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1. SAP Navigation and Overview ��

If the command field is ready for input, you can use the F1 field help (icon on

screen or function key F1 on keyboard) to display possible entries for this field.

The following entries are possible:

  • /n to end the current transaction
  • /nXXXX to start transaction XXXX from another transaction. Without the /n prefix, you can start transaction XXXX only from the SAP Easy Access.
  • /o to display a list of your own sessions.
  • /oXXXX to start transaction XXXX from another transaction in a new session.
  • /nend to log off a session with a confirmation prompt.
  • /nex to end a logon session without a confirmation prompt.
  • /i to delete the current active

You can find the transaction code XXXX for an application either in the overview

menu on the SAP Easy Access screen, in the status bar, or in the respective

application under System → Status. session.

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1. SAP Navigation and Overview�

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Personalization of the User Interface

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1. SAP Navigation and Overview�

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1. SAP Navigation and Overview�

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Procurement Process Overview

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1. SAP Navigation and Overview�

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Purchase Orders

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1. SAP Navigation and Overview�

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Inventory Management

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1. SAP Navigation and Overview�

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Invoice Verification

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2. Organizational Levels in Purchasing ��

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Organizational Levels in the Procurement Process

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2. Organizational Levels in Purchasing ��

The Client is the highest hierarchical level in the SAP system and from a business viewpoint, the client represents a corporate group, for example. It is uniquely defined in the system by a three-digit numeric key.

The Company code is the smallest organizational unit of external accounting for which a complete, self-contained bookkeeping system can be replicated. A company code is defined in the system by means of a four-character alphanumeric key that is unique in the client.

The Plant is an organizational unit within logistics that subdivides an enterprise from the viewpoints of production, procurement, and materials planning. A plant is defined in the system by means of a four-character alphanumeric key that is unique in the client.

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Organizational Levels in the Procurement Process

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2. Organizational Levels in Purchasing ��

The Storage location is an organizational unit that facilitates the differentiation of stocks of materials within a plant. A storage location is defined by means of a four-character alphanumeric key that is unique in the plant.

A Purchasing group is a key for a buyer or a group of buyers who is/are responsible for certain purchasing activities. Internally, the purchasing group is responsible for the procurement of a material or class of materials. Externally, it is the principal channel for an enterprise's dealings with its vendors.

The Purchasing organization is an organizational unit within logistics that subdivides the enterprise according to the purchasing requirements. A purchasing organization procures materials or services, negotiates conditions of purchase with vendors, and assumes responsibility for these transactions.

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Organizational Levels in the Procurement Process

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2. Organizational Levels in Purchasing��

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Organizational Levels in Inventory Management

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2. Organizational Levels in Purchasing��

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Plant-Specific Purchasing Organization

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2. Organizational Levels in Purchasing��

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Cross-Plant Purchasing Organization

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2. Organizational Levels in Purchasing��

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Cross-Company-Code Purchasing Organization

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3. Master Data in Materials Management

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Master Data in the Procurement Process

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3. Master Data in Materials Management

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Vendor Master Data

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3. Master Data in Materials Management

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Vendor Master Record: Organizational Levels

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3. Master Data in Materials Management

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Account Group

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3. Master Data in Materials Management�

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Partner Functions

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3. Master Data in Materials Management

Exercise : Create Vendor Master Record

Cod: T-K500Y##

Purchasing Organization: 1000

Company Code: 1000

Account Group: ZTMM ???

Reconciliation Account: ???

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3. Master Data in Materials Management

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Material Master Data

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3. Master Data in Materials Management

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Data Screens in Material Master Record Maintenance

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3. Master Data in Materials Management

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Organizational Levels

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3. Master Data in Materials Management

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Screen Sequence

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3. Master Data in Materials Management

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Material Type

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3. Master Data in Materials Management

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Material Type

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3. Master Data in Materials Management

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Industry Sector

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3. Master Data in Materials Management

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Extending a Material Master Record: Example

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3. Master Data in Materials Management

Exercise : Creation Material Master Record

Code: T-M500Y##

Industry Sector: Mechanical Engineering

Material Type: Raw Material

Plant: 1000

Storage Location: 0001

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3. Master Data in Materials Management

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Sources of Supply: Overview

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3. Master Data in Materials Management

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Purchasing Info Record

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3. Master Data in Materials Management

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Purchasing Info Record

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3. Master Data in Materials Management

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Source List

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END OF DAY 1

Thank you.

Questions?

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Agenda:

DAY 2:

  1. Procurement of Stock Materials - 4h
  2. Procurement of Consumable Material - 3h
  3. Blanket Purchase Order - 1h

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4. Procurement of Stock Materials�

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4. Procurement of Stock Materials�

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Stock Material Procurement

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4. Procurement of Stock Materials�

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Purchase requisition

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4. Procurement of Stock Materials�

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4. Procurement of Stock Materials�

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RFQ and Quotation

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4. Procurement of Stock Materials�

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Collective Number

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4. Procurement of Stock Materials�

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Creating RFQs

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4. Procurement of Stock Materials�

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Quotation Processing

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4. Procurement of Stock Materials�

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Contract

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4. Procurement of Stock Materials�

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Contract

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4. Procurement of Stock Materials�

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Purchase Order

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4. Procurement of Stock Materials�

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4. Procurement of Stock Materials�

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Purchase Order Format

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4. Procurement of Stock Materials�

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4. Procurement of Stock Materials�

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Purchase Order Transaction . Navigation

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4. Procurement of Stock Materials�

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Create a Purchase Order

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4. Procurement of Stock Materials�

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Create a Purchase Order

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4. Procurement of Stock Materials�

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Item Categories

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4. Procurement of Stock Materials �

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Price condition

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4. Procurement of Stock Materials �

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Price condition

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4. Procurement of Stock Materials �

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Price condition

Gross price = Price without taking any other conditions (such as discounts/surcharges or delivery costs) into account (vendor's net price)

Net price = Price taking into account discounts and surcharges with reference to the gross price but excluding delivery costs

Effective price = Net price less cash discount and including miscellaneous provisions, delivery costs, and non-deductible tax

Freight (Value / % / per Q)

Custom (Value / % / per Q)

Discount (Value / % / per Q)

Surcharge (Value / % / per Q)

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4. Procurement of Stock Materials�

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Issue a Message

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4. Procurement of Stock Materials�

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Goods Receipt

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4. Procurement of Stock Materials�

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Goods Receipt

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4. Procurement of Stock Materials�

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Valuated Goods Receipts

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4. Procurement of Stock Materials�

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Transaction MIGO

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4. Procurement of Stock Materials�

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Enter GR Against a Purchase Order

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4. Procurement of Stock Materials�

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Invoice Receipt

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4. Procurement of Stock Materials�

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Invoice Receipt

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4. Procurement of Stock Materials�

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Invoice Entry . Transaction MIRO

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4. Procurement of Stock Materials�

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Enter Invoice Against Purchase Order

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4. Procurement of Stock Materials�

Exercise - Procurement of Stock Materials

1. Create purchase requisition (NB)

Material code: T-M525C##

Plant: 1000

Storage Location: 0001

2. Create request for quotation (AN)

Purchase organization: 1000

Purchasing group: B##

Collective number: QT##

Vendors: T-K500A##, T-K500C##

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4. Procurement of Stock Materials�

3. Entering quotation

Collective number: QT##

4. Compare prices

Collective number: QT##

5. Create contract (WK)

Purchase organization: 1000

Purchasing group: B##

6. Create purchase order (NB)

7. Create goods receipt

8. Create invoice

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5. Procurement of Consumable Material �

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Procurement for Consumption

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5. Procurement of Consumable Material �

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5. Procurement of Consumable Material �

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5. Procurement of Consumable Material �

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Single or Multiple Account Assignment

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5. Procurement of Consumable Material �

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Consumable Material Procurement: Purchase Order

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5. Procurement of Consumable Material �

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Non-Valuated Goods Receipt

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5. Procurement of Consumable Material �

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Postings for Valuated/Non-Valuated GR

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5. Procurement of Consumable Material �

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Stoc Material VS Consumable material

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5. Procurement of Consumable Material �

Exercise: Procurement of Consumable Material

1. Create purchase requisition (NB):

Account assignment cat. Cost center - K

Delivery date: Today + 7 days

Plant: 1000

Requisitioner: IH##

Req. tracking no: GR##

Cost center: 4100

2. Create purchase order (NB):

Purchase Organization: 1000

Vendor: T-K521A##

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5. Procurement of Consumable Material �

Exercise: Procurement of Consumable Material

3. Create goods receipt

Delivery Note: DEL##

Quantity: 10

4. Create vendor invoice

Reference: REF##

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6. Blanket Purchase Order

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Blanked order is a purchase order with the validity and limitations (value) to simplify the acquisition of materials and external services.

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6. Blanket Purchase Order

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6. Blanket Purchase Order

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6. Blanket Purchase Order

Characteristics of Blanket Purchase Orders

The most important characteristics of a blanket purchase order are:

Order type FO (framework order)

  • Validity period in header of purchase order (field selection)

Item category B (limit)

  • Limit in the item
  • No material number
  • Account assignment category U (unknown) is allowed

No goods receipt or service entry

Accounting data for the item suggested in invoices

Additional or multiple account assignment possible in invoice verification

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6. Blanket Purchase Order

Exercise:

1. Create Purchase Order

Order type = FO

Purchase Organization: 1000

Purchase Group = 000 ; Company Code = 1000

AccAsignCat = U

ItemCat = B

Free text

Vendors: T-K500A##, T-K500C##

2. Create Vendor invoice

Reference: REF##

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END OF DAY 2

Thank you.

Questions?

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Agenda:

DAY 3:

  1. Procurement of External Services - 2h
  2. Procurement of Fix Assets - 2h
  3. Releasing purchasing documents - 2h
  4. Goods Receipt - 1h
  5. Return Delivery - 1h

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7. Procurement of External Services

The following figure, .Process Flow of External Service Procurement, shows all the possible steps that can be involved in procuring external services.

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7. Procurement of External Services

Service Master Record – Transaction AC03

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7. Procurement of External Services

Service conditions

Prices for external services that are valid over a longer period can be recorded in the system in the form of service conditions. You can enter further conditions in the purchasing document itself.

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7. Procurement of External Services

Purchase Order for Services (Transaction ME21N)

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Assignment category = U (unknown)

Item category = D (service)

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7. Procurement of External Services

Service Entry Sheet and Acceptance (Transaction ML81N)

The reference document for SES is the Purchase Order.

The system checks that the unplanned services do not exceed the limit set in the purchase order. Postings are not made in Financial Accounting when the service entry sheets are saved.

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7. Procurement of External Services

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7. Procurement of External Services

Invoice Entry

Invoice verification can be carried out with reference to the purchase order. In this case, the system suggests all accepted service entry sheets relating to this PO for invoice verification purposes.

The system compares the prices in the invoice with the prices from the service entry sheets. If there are no discrepancies, you can enter and post the invoice. If the system finds any discrepancies, it blocks the invoice for payment.

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7. Procurement of External Services

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7. Procurement of External Services

Purchase Order History

In the purchase order history, (PO history) all follow-on activities relating to a PO item are listed, that is, all services performed and entered (service entry sheet), all accepted services (material document) and all invoices that have been entered.

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8. Procurement of Fix Assets��

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8. Procurement of Fix Assets��

120

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8. Procurement of Fix Assets��

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Account assignment category A – Assets procurement

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8. Procurement of Fix Assets��

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8. Procurement of Fix Assets��

Exercise:

1. Create Purchase Order

Order type = NB

Purchase Organization: 1000

Purchase Group = 000 ; Company Code = 1000

AccAsignCat = A

Free text sau cod material + Asset No = 1120

Vendors: 5210

2. Create GR with reference to a PO

3. Create Vendor invoice with reference to a PO

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9. Releasing purchasing documents���

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One or several approvals may be required for the release. The release acts as an electronic signature.

It is necessary to differentiate between two types of release:

. Item-wise release

. Overall release

The aim of the release procedure for requisitions is to prevent that these can be converted into follow-on documents. Follow-on documents are requests, purchase orders and outline agreements.

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9. Releasing purchasing documents���

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Release Options for Blocked Purchase Requisitions

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9. Releasing purchasing documents���

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Key Terms

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9. Releasing purchasing documents���

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Overall Release of External Purchasing Documents

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9. Releasing purchasing documents���

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Definition of Release Criteria

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9. Releasing purchasing documents���

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Customizing of Release Procedure with Classification

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9. Releasing purchasing documents���

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Release Strategies

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9. Releasing purchasing documents���

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Authorization Objects

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9. Releasing purchasing documents���

Exercise:

RN for approval: 10013838 🡪 10013858

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Authorization Objects

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10. Goods Receipt

A goods receipt (GR) is a goods movement that leads to an increase of stock.

There are two types of GR in SAP system:

  • GR without references;
  • GR with references
      • Using Purchase Order as reference document;
      • Using Production Order as reference document.

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10. Goods Receipt

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Initial Entry of Stock Balances

Transactions: MIGO, MB1C: movement types:

561 – unrestricted use stock;

563 – quality inspection stock;

565 – blocked stock.

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10. Goods Receipt

Without Purchase Order

Transactions: MIGO, MB1C: movement types:

501 – unrestricted use stock;

503 – quality inspection stock;

505 – blocked stock.

Without Production Order

Transactions: MIGO, MB1C: movement types:

521 – unrestricted use stock;

523 – quality inspection stock;

525 – blocked stock.

Delivery Free of Charge

Transactions: MIGO, MB1C: movement types:

511 – delivery free of charge;

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10. Goods Receipt

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10. Goods Receipt

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Without Purchase Order

Transactions: MIGO

Reference Document = Purchase Order / Production Order

Movement type = 101

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10. Goods Receipt

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10. Goods Receipt

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Automatic Generation of PO at Time of Goods Receipt

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10. Goods Receipt

The system determines the data necessary for the automatic generation of a purchase order as follows:

  • Vendor, material, quantity, plant, and storage location = manual entry by entry clerk at time of goods receipt;
  • Purchasing organization = standard purchasing organization of plant;
  • Purchasing group = purchasing group from the material master record;
  • Delivery date = posting date of goods receipt;
  • Price = price from purchasing info record.

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10. Goods Receipt

Exercise:

1. Create GR with reference to a PO

Purchase Orders for GR: 4500017348 🡪 4500017365

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11. Return Delivery��

Return Delivery

You have entered goods from a vendor in the system with reference to a purchase order. Now you determine that, for example, the incorrect material was delivered, or that the quality of the delivered material is insufficient. In this case, you return the material to the vendor. Such a return delivery can take place from unrestricted-use stock, stock in quality inspection, or blocked stock, but also from non-valuated GR blocked stock, according to the stock you posted the goods to on receipt.

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11. Return Delivery �

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11. Return Delivery �

Subsequent Delivery

If the vendor sends you a substitute delivery after the return delivery, you can enter the new goods receipt as a subsequent delivery. In a subsequent delivery, you refer to the material document of the original goods receipt or to the material document of the return delivery.

Entering a substitute delivery as a subsequent delivery is particularly useful in goods-receipt-based invoice verification. Even if a goods receipt is reversed and a new goods receipt is posted after you have entered the invoice, this should be a subsequent delivery for goods-receipt-based invoice verification.

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11. Return Delivery �

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11. Return Delivery �

Reason for Movement

If you want to be able to analyze why goods were sent back to a vendor, you can enter a reason when you enter the goods movement.

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11. Return Delivery �

Returns for Purchase Order

Returns for a purchase order also concern return deliveries of materials to an external vendor. You therefore do not create a reference to the purchase order that you created for the original delivery or the goods receipt posted. For this type of return, you create a returns item in the purchase order.

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11. Return Delivery �

Cancellation

If you make an error when entering a goods movement (for example, incorrect quantity, incorrect movement type), you have to cancel the material document, since the data in the material document can no longer be changed. Then enter the item with the correct data.

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11. Return Delivery �

We recommend you to enter a cancellation document with reference to the original material document. This has several advantages:

  • You can copy the items to be reversed from the source document.
  • The system automatically determines the reversal movement type.
  • Reversal postings of goods issues, transfer postings, and goods receipts without reference are valuated with the value of the original document.
  • Reversal postings of goods receipts with reference to purchase orders or production orders are valuated with the value determined from the purchase order or production order.
  • You can use the list of canceled material documents (transaction MBSM) to analyze the canceled material documents.

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11. Return Delivery �

Exercise:

  1. Vendor return delivery 1 - MIGO \ A02 \ R02 – Reference Material Document
  2. Vendor return delivery 2 – PO (NB – return mark) + MIGO \ A01 \ R01 – Reference Return Purchase Order

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END OF DAY 3

Thank you.

Questions?

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Agenda:

DAY 4:

  1. Goods Issues - 1h
  2. Stock Transfers/Transfer Postings - 2h
  3. Physical Inventory - 2h
  4. Logistic Invoice Verification Procedure - 3h

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12. Goods Issue

A goods issue (GI) is a goods movement that leads to a reduction in stock.

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12. Goods Issue

The most important effects of a goods issue are the following:

  • A material document and an accounting document are generated.
  • The stock of the material is reduced.
  • The value of the material withdrawn is booked out of the stock account and posted to an offsetting account that depends on the relevant transaction (for example, a consumption account). The value posted is the value from the material master record at the time of posting.
  • If consumption updating has been defined for the material type, the consumption figure for this material is increased by the quantity withdrawn.
  • A distinction is made between planned and unplanned withdrawals. If the withdrawal is planned, total consumption is updated. If the withdrawal is unplanned, total and unplanned consumption are updated.

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12. Goods Issue

There are two types of goods issue for withdrawals of components:

  • Planned goods issue

You enter this goods issue with reference to the dependent reservation for the order. The system automatically determines 261 (consumption for order from warehouse) as the relevant movement type.

  • Unplanned goods issue

You enter this goods issue without reference to a reservation as an other goods issue. In this case, too, you choose movement type 261 (consumption for order from warehouse). Specify the order number as the account assignment.

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12. Goods Issue

GI without references:

Transactions: MIGO/MB1A

Movement types:

  • 201 – on Cost Center;
  • 221 – on Project;
  • 241 – on Asset.

Consumuri cu referinta la BOM:

Transactions : MIGO/MB1A

Movement type: 261 – on Order (Production / Internal)

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12. Goods Issue

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Sampling (without referinta)

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12. Goods Issue

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Scrapping (without referinta)

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12. Goods Issue

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With Reference to a Reservation

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12. Goods Issue

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With Reference to an Order

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13. Stock Transfers/Transfer Postings

In any enterprise, goods movements do not only take the form of goods receipts and goods issues. For organizational reasons (for example, decentralized storage) or due to other factors (such as quality assurance) internal transfer postings and physical stock transfers may be necessary.

In the case of transfer postings, the key aspect is a change in the stock ID number or the stock category of a material. Transfer postings need not involve an actual (physical) goods movement. In the case of stock transfers, on the other hand, there is always a physical movement of goods.

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13. Stock Transfers/Transfer Postings

Transfer Postings (TP)

Stock to Stock

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13. Stock Transfers/Transfer Postings

Transfer Postings (TP)

Material to Material

  • A material-to-material transfer posting is possible only if both materials are managed in the same base unit of management.
  • They cannot be preplanned via a reservation.
  • They can only be posted from unrestricted-use stock of the issuing material to unrestricted-use stock of the receiving material.
  • They can only be posted in a single step.

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13. Stock Transfers/Transfer Postings

Transfer Stock (TR)

Between Storage Locations

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13. Stock Transfers/Transfer Postings

Storage Location to Storage Location: One-Step Procedure

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13. Stock Transfers/Transfer Postings

Storage Location to Storage Location: Two-Step Procedure

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13. Stock Transfers/Transfer Postings

Stock Transfer Between Plants

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13. Stock Transfers/Transfer Postings

Plant to Plant: One-Step/Two-Step Procedures

Possible reasons for a stock transfer using the two-step procedure are that the plants are located far away from each other and the goods remain in transit for a certain time, or that a different employee is responsible in each plant, each of whom can post movements only in his or her own plant.

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14. Physical Inventory

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14. Physical Inventory

Physical Inventory Document

A physical inventory document contains data that includes:

  • The plant and storage location in which counting is to take place
  • The date on which the count is to take place (planned count date)
  • The materials to be counted
      • The batches that are to be counted (in the case of material subject to a batch management requirement)
      • The partial stock that is to be counted (in the case of split valuation)
  • The stock types to be counted
  • The status of the item
  • The status of the PI document

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14. Physical Inventory

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14. Physical Inventory

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14. Physical Inventory

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14. Physical Inventory

The SAP system provides two possible ways of avoiding errors in the physical inventory:

  • Blocking Goods Movements
        • You can block all goods movements relating to a stock management unit for the purposes of a physical inventory.
  • Freezing Book Inventory
        • If it is not possible to block the goods movement for organizational reasons, you can freeze the book inventory in the PI document at the time of the count.

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14. Physical Inventory

175

Blocking Goods Movements

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14. Physical Inventory

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Freezing Book Inventory

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Invoice Verification Environment

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Invoice Verification Environment

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Invoice Verification

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Invoice Verification: ex. 1

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Invoice Verification ex. 2

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Invoice Verification ex. 3

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Invoice Receipt

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Posting an Invoice

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Account Movements

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Price Control

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Logistics Invoice Verification: Initial Screen

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Invoice Verification Procedure: Allocation

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Invoice Verification Procedure: Item List

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Layouts for the Item List

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Other Functions

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Purchase-Order-Based Invoice Verification

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Goods-Receipt-Based Invoice Verification

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Document Parking

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Document Parking: Document Status

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Hold Document

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Document Parking and Saving as Complete

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Exercise – Logistic Invoice Verification with reference to OWN Purchase Orders (and Goods Receipts)

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END OF DAY 4

Thank you.

Questions?

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Agenda:����

DAY 5:

  1. Vendor Consignment Process - 2h
  2. Subcontracting Process - 2h
  3. Vendor Evaluation - 1h
  4. Reporting and Analysis Functions - 1h
  5. Evaluation - 2h

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16. Vendor Consignment Process

Company is keeping in stock a quantity of materials (quantity without value) belonging to a Vendor.

To manage material in the consignment stores, you need the following master data:

  • Material master record:

When you manage the affected material as your own material, it is not necessary to create a new material master record for the consignment material. By using the same material number, the consignment stock can be included in the unrestricted-use stock of a material.

  • Vendor master record for the vendor of the consignment material.
  • Purchasing Information Record of Consignment infotype for the consignment vendors and consignment material.

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17. Subcontracting Process

The processing has the following characteristics:

  • You order the finished product with a subcontract order that also contains entries about the components to be provided for the subcontractor.
  • In Inventory Management, the components are posted/provided in the stock of material provided to vendor.
  • The subcontractor supplies his service and delivers the manufactured or processed material. The goods receipt for the finished product is entered in Inventory Management.
  • The consumed components are cleared from the stock of material provided to vendor.
  • If the subcontractor reports an excess consumption or underconsumption of components after the goods receipt posting, this can be corrected with a subsequent adjustment.
  • The subcontractor shows the service actually planned in the invoice. The invoice is entered in Logistics Invoice Verification (LIV).

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The purchase order price is the price of the vendor subcontracting work and

the materials provided by the subcontractor. You can define conditions for

subcontracting in a subcontracting purchasing info record.

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17. Subcontracting Process

Inventory Management supports the following functions within subcontracting:

  • Provision of components, special stock form: stock of material provided by vendor
  • Goods receipt for finished product with consumption of components
  • Subsequent adjustment if excess consumption or underconsumption of components
  • Transfer postings (material to material, stock to stock, plant to plant)

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Stock of Material Provided to Vendor

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Provision of Components

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There are different options available for providing components:

  • In Inventory Management, you can refer to the SC item in the purchase order when entering a transfer posting (trz. MB1B);
  • In Purchasing, you can post from the Monitoring of subcontracting stock for vendors list from a goods issue (GI) for the components (trz. ME2O);
  • You can also provide components without reference to an SC order by entering another transfer posting with movement type 541 and manually entering the requested materials, quantities, and subcontractor (trz. MB1B);

Transaction: MBLB = Stock with Subcontractor

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Subsequent Adjustment

If the subcontractor reports an excess consumption or under consumption of subcontracting components after delivery of the finished product, you have to post a subsequent adjustment to correct the component consumption.

In the transaction for goods movement, MIGO, choose Subsequent Adjustment from the list of business transactions. As a reference document, the system automatically chooses Purchase Order. Enter the document number of the purchase order and the item number for which

Transfer Postings of Stock of Material Provided

The following transfer postings are allowed for the stock of material provided to vendor special stock:

  • Plant to plant in the one-step procedure (movement type 301)
  • Material to material (movement type 309)
  • Stock in quality inspection to unrestricted-use stock (movement type 321)

To execute these transfer postings for the stock of material provided to the vendor, you have to specify the special stock indicator O.

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Vendor Evaluation Analyses

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Vendor Evaluation in Source Determination

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Scoring Levels in Vendor Evaluation

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Types of Subcriteria

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Automatic Subcriteria

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Manual Maintenance

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Automatic Reevaluation

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Evaluation in the Background

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Quantity Reliability

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On-time Delivery Performance

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Price Level

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19. Reporting and Analysis Functions �

Standard Reports at Document Level

In a production environment, you generate a wide variety of documents including purchasing documents, material documents, invoice documents, and accounting documents. The documents are posted in the system and stored in database tables.

Standard reports enable you to evaluate this document information.

As well as analyzing documents, you can also run analyses of master data. For example, you can output a list of all purchasing info records for a material or vendor, or obtain an overview of the material master records for a certain material type.

SAP List Viewer and ALV Grid Control

The SAP List Viewer and ALV Grid Control standardize and simplify the handling of lists in SAP systems. There is a uniform user interface and list format for lists.

In this way, redundant functions can be avoided. ALV Grid Control is used not only in list displays (such as the list of material documents), but also in other transactions (for example, purchase requisition).

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Functions of the SAP List Viewer / ALV Grid Control

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Layout (Display Variant)

You can use layouts or change variants to change the appearance of many lists.

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Variants

If you have to run reports or analyses with the same selection values at regular intervals, it is advisable to use variants.

To create a variant for a report, first enter the desired selection values on the initial screen for the report. Then choose Goto → Variants → Save as Variant... or

Save. On the following screen, you enter a Variant Name and a Description

for the variant and reselect Save.

If, during the execution of a variant you want to access a variant, choose Goto →

Variants → Get... or Get Variants... .

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Reporting and Analysis Functions in Purchasing

You want to know the following, for example:

  • Which purchase orders were created for a particular vendor over a certain period?
  • For how many purchase orders have goods already been received? For which purchase orders are the relevant goods receipts still open?
  • Do the goods and invoices received agree with the purchase order data?
  • What is the average PO value achieved by a certain purchasing group?

In Purchasing, you can influence the appearance of your list by using the scope-of-list and selection parameters (ex. Transaction ME80FN)

The selection parameter determines which purchasing documents are analyzed by the report. You can generate reports that select only open purchase orders, POs for which no invoice has yet been received, or expired scheduling agreements, for example.

The scope-of-list parameter determines which data is displayed for a selected document (which lines appear in your report).

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Reporting and Analysis Functions in Inventory Management can be divided into three groups:

  • Analyses of stock situation (ex. Transaction MB5L)
  • Analyses of goods movements (ex. Transaction MB51)
  • Analyses that serve to indentify inconsistencies in stock data (ex. Transaction MB5K)

Document lists:

  • Material documents (ex. Transaction MB51/MB03)
  • Accounting documents for material (ex. Transaction MR51)
  • Cancelled material documents (ex. Transaction MBSM)
  • Reason for movement (ex. Transaction MBGR)

Stock lists:

  • Stock overview (ex. Transaction MB52)
  • Transit Stock (ex. Transaction MB5T)
  • Plant stock availability (ex. Transaction MB53)
  • Warehouse stock (ex. Transaction MB52)
  • Stock for posting date (ex. Transaction MB5B)

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Valuations in Invoice Verification (ex. Transaction MIR5)

The information provided by the list of invoice documents includes the following:

  • Person who entered the invoice
  • Document date
  • Posting date
  • Number of invoice document
  • Number of associated accounting document
  • Status of invoice (for example, posted, parked, on hold)

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Logistics Information System (LIS)

Basic Structure and Concept of the LIS

In Logistics, you can distinguish between the following information systems:

- Sales Information System (SIS)

- Purchasing Information System (PURCHIS)

- Inventory Controlling (INVCO)

- Warehouse Management Information System (WMIS)

- Shop Floor Information System (SFIS)

- Quality Management Information System (QMIS)

- Plant Maintenance Information System (PMIS)

- Retail Information System (RIS)

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Logistics Information System (LIS)

Logistics Data Warehouse

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The information systems of the LIS are continuously supplied with data from the operative applications (Sales and Distribution, Purchasing, Production, Plant Maintenance and so on). This level is also known as Online Transaction Processing (OLTP). The data is derived from documents from SAP R/2, SAP R/3, or external/non-SAP systems.

Above the OLTP level is the Logistics Data Warehouse. For each business transaction within the operative application, important information is stored in aggregated form in separate databases of the Logistics Data Warehouse parallel to the OLTP level. In the process, first a quantitative reduction in the data volume takes place as a result of the period-wise updating, and second the information is qualitatively reduced to the statistically relevant portions.

The databases of the Logistics Data Warehouse are known as information structures. They constitute the data basis of the LIS.

The evaluation of the data is carried out at Online Analytical Processing (OLAP) level. A variety of reporting and analysis tools are available at this level.

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Logistics Information System (LIS)

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Reports List

MB5M – Lista stoc expirat;

MB5B – Stoc la data postarii;

MB5T – Stoc in tranzit;

MBLB – Stoc la Subcontractor;

MB54 – Lista stoc in custodie proprie;

MB5S – Lista Balanta GR/IR ;

MI20 – Lista Diferente Inventar;

MIR5 – Lista Facturi;

b) LIS

MC.A – Receptii/Consumuri;

MC.2 – Analiza Plant: Receptii/Consumuri;

MC$G – Analiza Valori Aprovizionate per Material;

MC$I – Analiza Cantitati Aprovizionate per Material;

MC$4 – Analiza Valori Aprovizionate per Vendor;

a) Standard SAP - MM

ME1L – Lista Inforecorduri dupa Vendor;

ME1M – Lista Inforecorduri dupa Material;

ME1W – Lista Inforecorduri dupa Grup Material;

ME0M – Lista Sursa dupa Material;

MKVZ – Lista Furnizori;

MM60 – Lista Materiale;

AC06 – Lista de Servicii;

MB20 – Lista Rezervari;

ME5A – Lista RN General;

ME5K – Lista RN dupa Asignare Cont;

MSRV2 – Lista RN dupa Serviciu;

ME4L – Lista RFQ dupa Vendor;

ME4M – Lista RFQ dupa Material;

MSRV4 – Lista RFQ dupa Serviciu;

ME2L – Lista CA dupa Vendor;

ME2M – Lista CA dupa Material;

ME80FN – Lista Documente Aprovizionare - Analize Generale;

MSRV3 – Lista CA dupa Serviciu;

MB51 – Lista Documente de Material;

MR51 – Lista Documente FI;

MBSM – Lista Documente de Material Anulate;

MBGR – Lista Documente de Material dupa Motiv Miscare;

MB52 – Stoc depozit;

MB53 – Stoc plant;

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END OF DAY 5

Thank you.

Questions?

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