4 Organizational Data A hierarchy in which the organizational units in an enterprise are arranged according to tasks and functions Are static data and are rarely changed The definition of organization units is a fundamental step, it is a critical factor in how the company will be structured
6 Client Company Plant Valuation Area Storage Locations Purchasing Organizations Purchasing Groups
Organizational Structures: Client The client is a unit within an SAP R/3 system that is self-contained both in legal and organizational terms and in terms of data, with separate master records and an independent set of tables. From a business viewpoint, the client represents a corporate group, for example. Client: 3 numerical digits
Organizational Structures: Company & Company code 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 represents an independent unit producing its own balance sheet, for example, a company within a corporate group (client). Company code = 4 characters
9 Organizational Structures: Plant Lowest valuation area Organizational level where Material Requirements (MRP) runs Generally used to describe a production site, a distribution center or centralized warehouse May be a physical or logical unit
10 Organizational Structures: Valuation Area The valuation area determines at which level a material is valuated (inventory value is established) SAP R/3 allows valuation at the company code or plant level, but recommends valuation area be set at the plant level. Means each plant can have its own material prices and account determination
11 Organizational Structures: Storage Location Subdivision of a plant Where materials are managed (inventory management) – Raw Materials – Maintenance, Repair, and Other (MRO) – Finished Product May be a physical or logical unit
Organizational Structures: Purchasing Organizations An organizational unit responsible for procuring materials or services for one or more plants and for negotiating general conditions of purchase with vendors. The purchasing organization assumes legal responsibility for all external purchase transactions.
Purchasing organization purchasing group MG 0, 3 purchasing organization purchasing group MG 1, 4 purchasing group MG 2, 5 purchasing group MG 7, 8, 9 plant purchasing group MG 6 material group
Organizational Structures: Purchasing Organization Groups The purchasing organization is further subdivided into purchasing groups (buyer groups), which are responsible for day-to-day buying activities. A purchasing group can also act for several purchasing organizations.
Inventory Management with a Warehouse Management System client 0001 plant storage location 001 warehouse number 001 storage type 05-04-03 002 05-04-04 storage bin MM WM company code 0001 – ABC inc. 0001 – Jones inc. 0002 – Model Ltd. purchasing organization 0001 0002 0003 0002 0003 0004 0001 0002 0003 0004 distrib.- center factory (physical stock)
MM – interdependencies to other modules MM material master purchasing requirements plan. inventory mgmt. invoice verification MM material master purchasing requirements plan. inventory mgmt. invoice verification SD sales and distrib. SD sales and distrib. PM plant maintenance PM plant maintenance QM quality management QM quality management PP production planning PP production planning Logistik FI financial acc. FI financial acc. CO controlling CO controlling AM fixed assets mgmt. AM fixed assets mgmt.
Basic Data Master records - include information about 1.vendors 2.material and services to be procured 3.the relation between 1. and 2. (purchasing info record) e.g. prices / terms and conditions bills of material for – production planning – purchasing – sales and distribution – withdrawal of Material
invoice entry invoice verification payment handling invoice entry invoice verification payment handling request for quotation quotation processing purch. order handling request for quotation quotation processing purch. order handling Structure of the Vendor Master Record General data name address control data General data name address control data accounting data bank account acc. maintenance payment accounting data bank account acc. maintenance payment purchasing terms and cond. partner functions currency purchasing terms and cond. partner functions currency utilization for each purchasing organization client wide or for each company code client wide or for each company code client wide area of validity sections
Create a Vendor Creating Your Own Vendor Master Record Usage We recommend that you create your own vendor master record for this scenario. If, however, you prefer to use the reference vendor instead, it could be that the order currency has already been changed and this IDES scenario may no longer work. You create a German vendor in company code 1000, IDES AG Germany, to create purchase orders and invoices denominated in euros.
Create a Vendor Menu Path Logistics Materials Management Purchasing Master Data Vendor Central Create Transaction CodeXK01 Procedure 1.Call up the transaction as follows:
Create a vendor FieldData Vendor Your own vendor (choose a number between 1000 and 1999) Company code1000 Purch. organization1000 Account groupLIEF Reference vendor1080 Reference company code1000 Reference purchasing organization 1000. On the Create Vendor: Initial Screen, enter the following data:
Create a Vendor On the Create Vendor: Address screen, enter the following data: FieldData DescriptionAny Search termAny, for example "euro" Street/House numberAny Postal code/City5-figure, numerical (any) CountryDE LanguageDE
1.Choose until you reach the Create Vendor: Accounting and make sure that 160000 appears in the Reconciliation Account 160000 field. 2.Choose until the Create Vendor: Purchasing Data screen appears. 3.On the Create Vendor: Purchasing Data screen, check that the order currency is EUR. 4.Choose until the Create Vendor: Partner Functions screen appears. 5.Choose until the Create Vendor: Partner Functions screen appears. 6.Choose until the Create Vendor: Partner Functions screen appears. Create a Vendor
Views on the Material Master Record each view is maintained by a certain user department of the firm accounting: valuation- und calculation-specific information requirements planning: information about material requirements planning (e. g. reorder point) purchasing: e. g. responsible purchasing group, order unit engineering: technical information storage: information about warehousing, material movements,... forecast: i nformation about the forecasting of the material requirements S & D: informationen about sales orders and price determination
purchasing info record info record prices terms & cond. PO statistics tolerance levels date prices terms & cond. PO statistics tolerance levels date quotation order outline agreement
outline agreem. PO Purchasing Process MM XXX XX determination: requirements XXX XX determination: source of supply vendor 1 vendor 2 vendor selection vendor PO purchase order processing PO monitoring goods received & inventory mgmt. POinvoice ?=?= invoice verification ?
Create Purchase Order (PO) 1 vendor known purch. order vendor 2 2 vendor not known terms & cond. outline agrement source list vendor info record 3 assigned purchase requisition exists (from user department) purch. req. vendor 2 purch. order
Purchasing Process Create a requisition First release of requisition Create RFQ (Request for Quotation) with reference to requisition Create PO (Purchase Order) with reference to RFQ Department receives material ordered (GR) Department pays invoice (MIRO).
Purchase Requisition Document generated by a user department or storeroom-personnel to notify the purchasing department of items it needs to order, their quantity, and the timeframe. It may also contain the authorization to proceed with the purchase. Also called purchase request or requisition.
Request for Quotation Is a standard business process whose purpose is to invite suppliers into a bidding process to bid on specific products or services. RFQ generally means the same thing as IFB (Invitation For Bid)
Purchase Order Buyer-generated document that authorizes a purchase transaction. It sets forth the descriptions, quantities, prices, discounts, payment terms, date of performance or shipment, other associated terms and conditions, and identifies a specific seller.
Open document overview: Click on document overview button Choose “Selection variant list” icon Then select “My purchase requisition”, you will get your purchase requisition listed Click on “adopt” icon, your purchase requisition will be copied to the purchase order (or you can drag and drop it into the shopping cart)
Posting an Order Entry (Goods Receipt) MM Logistics purchasing req. planning inventory controlling invoice verification goods receipt inventory mgmt. goods issue. transfer posting SD sales and distrib. SD sales and distrib. PM plant maintenance PM plant maintenance QM quality management QM quality management PP production planning PP production planning FI financial acc. FI financial acc. CO controlling CO controlling AM fixed assets mgmt. AM fixed assets mgmt.
Demo: Posting Order Entry (Goods Received) 1. Use T_code : MIGO 2. Select Goods Receipt 3. Select Purchase Order 4. Enter PO number for goods to be received. 5. Hit "Enter"
Demo: Posting Order Entry (Goods Received) 6. Enter Document date & posting date 7. Enter Header text (comment) if necessary. 8. Close detail data.
Demo: Posting Order Entry (Goods Received) 9. Notice that movement data is "101" 10. If you only received first item, then Check the "OK" box for first line item.therefore, the second item need not be processed
Demo: Posting Order Entry (Goods Received) 11. If you only received 3 pcs out of 10 pcs of item one & 2 pcs out of 10 pcs of item two, then Check the "OK" box for both line item 12. Input actual quantity (3 & 2 pcs ). 13. Hit "Enter"
Demo: Posting Order Entry (Goods Received) 14. Click "Check" button to find out if there is any error. 15. Check the "status" column.. Green means OK. Yellow means Warning. Red means error
Invoice Verification input information input information invoice verification output information output information orders actions: enter invoice verify invoice post invoice update relevant data (re-edit invoice) goods receipt master data: material vendors accounts terms & cond. financial accounting asset management cost accounting
Create Invoice Create Invoice using Tcode MIRO Enter the Purchase order no. and click on Enter, to display the material details. Enter the Required details in all Tabs
Create Invoice (contd..) Click the check box, to calculate the Tax
Create Invoice (contd..) Enter the Amount and click on save