Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Enterprise Structure ® Definition ® Logistics general ®Define Valuation Level

Transaction Code

OX14

Configuration Description

Here we specify the level at which material stocks are valuated. We have used the Plant level since the application component Production Planning (PP) and Costing are being used.

• Depending on the valuation level chosen, accounting data (in particular the valuation price) is maintained for each plant or for each company code in the material master record.
• If material stocks are valuated at company code level, all plant stocks of a material are managed in a joint stock account for each company code.
• If material stocks are valuated at plant level, the material stocks for each plant can be managed in different accounts. We can define a separate account determination for each plant.

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Enterprise Structure ® Definition ® Logistics general ®Define, copy, delete, check plant

Transaction Code

SPRO

Configuration Description

As a part of the Logistics Organizational Structure, Plants are defined in SAP. The ‘Plant’ is an operating area or a branch or a location within a company. Each 'Plant' is assigned to a single 'company code'. A 'company code' can have several 'Plants'. In case of ITZ Pvt. Ltd., the various 'Plants' are assigned to a each 'company code'.

Configuration of One Plant is depicted here, (for list of all please refer to MM KDS Document)

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Enterprise Structure ® Definition ® Materials Management ®Maintain Storage Location

Transaction Code

OX09

Configuration Description

A storage location is the place where stock is physically kept within a plant. There may be one or more storage locations within a plant.

A storage location has the following attributes:

• A storage location has a description and at least one address.
• It is possible to store material data specific to a storage location.
• Stocks are managed only on a quantity basis and not on a value basis at storage location level.
• Physical inventories are carried out at storage location level.

Configuration of Storage Locations under One Plant is depicted here, (for list of all please refer to MM KDS Document)

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Enterprise Structure ® Definition ® Materials Management àMaintain Purchasing Organization

Transaction Code

SPRO

Configuration Description

At this node we configure the Purchasing Organization .The purchasing organization is the highest level of aggregation (after the organizational unit "client") for purchasing statistics.

In case of ITZ One single Purchase Organization is created as under :

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Enterprise Structure ® Assignment ® Logistics general ®Assign Plant to Company Code

Transaction Code

SPRO

Configuration Description

A Plant needs to be assigned to one of the Company Codes, the relation is always one to one i.e. One Plant can be assigned to only one company code

All the plants can’t be shown here(for complete list refer MM KDS document)

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Enterprise Structure ® Assignment ® Logistics general ®Assign purchasing organization to company code

Transaction Code

SPRO

Configuration Description

In this node we assign the Purchasing Organization to the company code under which it works.

In case of ITZ the Purchasing Organization is Central, so it is not assigned to any Company Code

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Enterprise Structure ® Assignment ® Logistics general ®Assign purchasing organization to Plant

Transaction Code

SPRO

Configuration Description

In this step we assign purchasing organizations to the plants for which they are responsible.

In case of ITZ since it operates with Centralized Purchasing Org. we have assigned the Purchasing Org. to all the plants defined as of  now

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Enterprise Structure ® Assignment ® Logistics general ®Assign standard purchasing organization to plant

Transaction Code

SPRO

Configuration Description

If severalpurchasing organisations procure for a certain plant, we can define one of them as the standard purchasing organization for the transactions "pipeline procurement", "consigmnent" and "stock transfers".

In source determination for stock transfers and consignent, the system automatically utilizes this standard purchasing organization. In the case of goods issues of pipeline materials, the purchasing info records of the standard purchasing organization are read.

In ITZ,  we have not defined this Setting as we are using single Purchasing Organisation

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Logistics - General à Material Master à Field SelectionàAssign Fields to Fields Selection Groups

Transaction Code

OMSR

Configuration Description

Assignment of Material Master Fields is required to define whether a field is hidden or displayed, or whether an entry is mandatory or optional in material master maintenance, it is always advisable to work with Standard SAP settings, but for few business requirement some assignments are changed to new field selection groups defined as per reserved name space. in case of ITZ, some of the list of changed entries is as given below:

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Logistics - General à Material Master à Field SelectionàMaintain Field Selection for Data Screens

Transaction Code

OMS9

Configuration Description

In this step we define the nature of a Field belonging to a particular Field Selection Group wrt the Screen Reference of a Material Type. Steps involved are :

• Selecting the field selection group.
• Select the field selection option (hide, display, required entry, or Optional entry) for each field reference as required.

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Logistics - General à Material Master à Basic SettingsàMaintain Company Codes for Materials Management

Transaction Code

OMSY

Configuration Description

This activity is done for making a Company Code relevant for materials Management and to define the starting posting period This is a prerequisite for creating a Material Master

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Logistics - General à Material Master à Basic Settingsà Material TypesàDefine Attributes of Material Types

Transaction Code

OMS2

Configuration Description

Material type is analogous to the family of a material master; all the important attributes of a material are governed by settings in the material type. To be precise it governs :

1. 1. Number range pattern and nature (external/internal)
2. 2. Hide/optional fields in the material master
3. 3. Valuation Control at valuation area level (ultimately used to derive G/L)
4. 4. Control on Production/Purchase

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Logistics - General à Material Master à Basic Settingsà Material TypesàDefine NumberRanges for each Material Types

Transaction Code

MMNR

Configuration Description

In this step, we have defined the type of number assignment and the number range intervals for material master records. When creating a material master record, system must assign it a unique number. There are two ways of doing this:

• internal number assignment

In this case, a number within the number range interval allowed is assigned by the SAP system.

• external number assignment

We have defined the number range intervals for so-called groups. We assign one or more material types to each group.

• If we assign just one material type to a group, we can define both an internal and an external number range interval for the material type.

• If we group together more than one material type, we can define an internal and an external number range interval here too. This allows several material types to have the same number range intervals.

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Logistics - General à Material Master à Basic SettingsàDefine Attributes of system messages

Transaction Code

OMT4

Configuration Description

When processing material master records, the system issues a number of system messages containing important user information. In this activity, we define how the SAP system handles these messages. We have the following options:

• The message can be suppressed.
• The message can be displayed as a warning.
• The message can be displayed as an error message. (can’t be surpassed)

For ITZ requirement Message Numbers MM189 & 312 are changed as Error message

We are using Standard SAP Messages.

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Logistics - General à Material Master à Settings for Key FieldsàDefine Material Groups

Transaction Code

OMSF

Configuration Description

Here we define the Groups for Materials & Services, This Grouping shall be defined keeping in mind the reporting requirement of the company for analysing Purchases, Consumptions, Stocks etc,

Setting is just a table entry, few records are shown in the screen shot, for complete list refer to the MM KDS document or the actual system node

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Logistics - General à Material Master à Settings for Key FieldsàDefine External Material Groups

Transaction Code

SPRO

Configuration Description

Here we define the Groups for giving an extra key for filtering, sorting the list of materials from a criterion other than Material grouping

In case of ITZ we have not used External Material Groups

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Logistics - General à Material Master à ToolsàInitialize Period

Transaction Code

MMPI

Configuration Description

This Transaction can be used to initialize the period in materials management , i.e. it opens the already closed period (thru Txn : MMPV), but opening a period has serious implications on data consistency in SAP so as recommended by SAP  Follow the instructions in Note 487381 before initialization

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Consumption-based Planning à Master Data à MRP Areas àActivate MRP for MRP Areas

Transaction Code

SPRO

Configuration Description

This setting is required if we want to have planning at a level other than plants i.e. either of Storage location / at Subcontractor level.

An MRP area represents an organizational unit for which we can perform material requirements planning separately.

An MRP area can include one or several storage locations of a plant or a subcontractor. We can define MRP areas in a plant.

For ITZ Ltd., we have not used MRP Areas.

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Consumption-based Planning à Master Data à MRP Areas àDefine MRP Areas

Transaction Code

SCAL

Configuration Description

Here we define the MRP areas for a plant for which we would like to carry out material requirements planning separately.

When creating an MRP area, we enter the number, which must have at least 5 digits to avoid any overlapping with the plant MRP area, the description and the MRP area type

In case of ITZ we have  not defined MRP area

Important : If MRP area is activated  Conversion of Planning file entries needs to be run in every new System Client through Report RMDBVM00  in Txn : SE38

The conversion report causes the system to create a new planning file. In addition, the system creates MRP area for the existing plants. These MRP areas do not, however, affect the way material requirements planning is carried out. The number for plant MRP areas is identical to the plant number and therefore consists of four digits.

The conversion of the current planning file (table MDVM) to the new planning file (table DBVM) is a prerequisite for carrying out material requirements planning with MRP areas.

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing à Environment Data àDefine Attributes of System Messages

Transaction Code

SPRO

Configuration Description

In Purchasing, certain system messages containing important information for users may be issued from time to time

In this step, we can specify whether the SAP System:

• Suppresses the relevant information

• Issues it as a warning message

• Issues it as an error message

For ITZ requirement, messages (as a change from standard) are configured as given below:

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing à Material Master àDefine Purchasing Value Keys

Transaction Code

SPRO

Configuration Description

With Purchasing value key we can control following functions by using it in the material master purchasing view, purchasing value key governs:

• The issue of reminders and urging letters (expediters) with respect to nearly due and overdue deliveries
• The admissibility of over- and under deliveries ("overages" and "under ages")
• Order acknowledgment requirements for PO items
• Shipping/packaging instructions

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing à Material Master à Entry Aids for Items Without a Material Master

Transaction Code

SPRO

Configuration Description

In this step we assign In this step, we can assign a purchasing value key and a valuation class to a material group.

The assignment of a purchasing value key default values for reminder levels etc. in purchase order items without a material master record and without an info record.

The assignment of a valuation class to a material group enables the system to determine different accounts for the individual material groups.

For ITZ we have maintained Valuation Classes in the accounting view of the materials.

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing àCreate Purchasing Groups

Transaction Code

SPRO

Configuration Description

It’s a key for a buyer or group of buyers responsible for certain purchasing activities. useful in accessing information, controlling authorizations, setting up release strategies etc. for ITZ ‘s Requirement following groups are configured, configuration is a simple table entry but purchasing group has a comprehensive use in all purchasing transactions/ documents

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing à RFQ/Quotationà Define Document Types

Transaction Code

SPRO

Configuration Description

SAP manages RFQs and quotations as documents which are grouped into different document types., in this step we have :

• Created new document types
• Defined item interval
• Defined admissible follow-on document types
• Assigned document types to a number range group
• Defined number range interval
• Chosen
  • internal
  • external
• Chosen

The update group determines how the data from the document header is updated in the statistics file.

Linkage determines which PR document types can be referenced  for creating a particular  RFQ document type

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing àRFQ /Quotations àDefine Text Types for Header Texts

Transaction Code

SPRO

Configuration Description

In this step we define different Texts which appear in RFQ/Quotation Headers, which are used to store information applicable for a particular RFQ document

We have standard Header Text Types.

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing àRFQ /Quotations àDefine copying rules for Line Texts (RFQ/Quotations)

Transaction Code

SPRO

Configuration Description

In this step we define copying rules for different header  Texts which appear in RFQ/Quotation Line Items

Copying rules are used to determine which texts can be adapted from other objects (for example, vendor master records, contracts) to the header text of the RFQ. We link text types in the RFQ with text types in other objects. System can adopt header texts from the following objects:

• RFQ / Quotation
• Contract
• Scheduling agreement
• Vendor master

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing à Purchase Requisitions àDefine document types (Purchase Requisitions)

Transaction Code

SPRO

Configuration Description

SAP manages Purchase Requisitions as documents which are grouped into various document types., in this step we have :

• Created new document types
• Defined item interval
• Defined admissible follow-on document types
• Assigned document types to a number range group
• Defined number range interval
• Chosen
  • internal
  • external
• Chosen

The update group determines how the data from the document header is updated in the statistics file.

Above linkage governs which type of PO can be created  using PR of a particular type

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing à Purchase Requisitions à Release Procedure àProcedure with Classification à Set Up Procedure with Classification

Transaction Code

SPRO

Configuration Description

In this step, we have set up the release procedure with classification.

Purchase Requisition release is the process in which Purchase Requisition is approved and released by HOD of concern department for request of required material or services specified in Purchase Requisition. Once the Purchase Requisition is approved and released then Purchase Order or RFQ will be created for that material or services against same Purchase Requisition.

Configuration involves following elements in sequence:

Release Group:

Specify for the release group either "overall release" or "item-wise release"

Release codes:

The Release Code is a two-character ID allowing a person to release (approve) a requisition.(analogous to approver code)

Release Indicators:

A release indicator shows the release status of a purchase requisition

Release Indicators also involve:

Field selection key
via the field selection key, we can specify which fields in a purchase requisition with this release indicator can be changed or must be populated

Changes after start of release process

• With the Changeability indicator, we can specify the effects of changes to a requisition. For example, certain changes may require a new release strategy to be determined for the requisition.
• Via the Value change field, we can cause the release strategy to be re-started if the value of a purchase requisition item is increased by more than a certain percentage (e.g. 10%). To do so, set the Changeability indicator to "4 - Changeable, new release in case of new strategy or value change" and enter a percentage in the Value change field.

Release Strategy

The Release Strategy defines the approval process for Purchase Requisitions. The strategy specifies the release codes which are necessary and the sequence in which releases have to be affected. We can define a maximum of eight release codes i.e. 8 Levels of approval.

Release Prerequisites indicate the sequence in which a Purchase Requisition must be approved via the release codes. (In ITZ case release is parallel(either / or so indicators are kept blank)

Release Status indicates the affect after the release by a particular release code

Release Values

These values need to be maintained in every client manually, this forms the basis on which release strategy is triggered for a PR.

An important prerequisite for this is to create Class & Characteristics in class type 032

Characteristics for Release Strategy

Create the Characteristics required for release strategy as master data thru transaction CT04, here the most important setting is to attach the characteristics to corresponding field of structure CEBAN

attach it to the structure

Class for Release Strategy

Create the class as master data thru transaction CL02

and attach the Characteristics created earlier to the class

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing àPurchase order àDefine Number Ranges

Transaction Code

OMH6

Configuration Description

In this step we define number ranges for Purchase order document types, (defined separately in customizing), this setting also includes number ranges for other external purchasing documents i.e. for Contracts/Scheduling Agreements and RFQs.

There are two ways of doing this:

• internal number assignment

In this case, a number within the number range interval allowed is assigned by the SAP system.

• external number assignment

In case of ITZ all the documents are assigned with internal number ranges with the exception for document type “Legacy Open P.O”, as it was required to retain the legacy P.O number for this case.

go in change mode and define the intervals as shown:

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing àPurchase Orders àDefine document types

Transaction Code

SPRO

Configuration Description

SAP manages Purchase Orders as documents which are grouped into various document types., in this step we have :

• Created new document types
• Defined item interval
• Define allowable item categories
• Defined admissible follow-on document types
• Assigned document types to a number range group
• Defined number range interval
• Chosen
  • internal
  • external
• Chosen

The update group determines how the data from the document header is updated in the statistics file.

Above linkage governs which type of PR can be referenced created  while creating a particular Contract  document type

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing àPurchase order à Set ToleranceLimits for Price Variance

Transaction Code

SPRO 

Configuration Description

When processing a purchase order, the system checks whether the effective price of a PO item shows variances compared with the valuation price stored in the material master record. In addition, it checks whether the specified cash discount value is admissible.

Variances are allowed within the tolerance limits. If a variance exceeds a tolerance limit, the system issues a warning or error message. In SAP, the types of variance are represented by the tolerance keys. For each tolerance key, we can define percentage and value-dependent upper and lower limits per company code.

• PE Price variance, Purchasing

• Tolerance limit for system message no. 207. This message appears if the specified effective price exceeds the predefined tolerances when compared with the material price.

• SE Maximum cash discount deduction, Purchasing

• Tolerance limit for system message no. 231. This is a warning message, which appears when the specified cash discount percentage exceeds the predefined tolerances.

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing àPurchase Order àRelease Procedure for Purchase Orders

Transaction Code

SPRO

Configuration Description

In this step, we have set up the release procedure for Purchase Orders(this also covers the process for other external purchasing documents e.g. contracts/scheduling agreements)

Purchase Order release is the process in which PO is approved and released by HOD of concern department for request of required material or services specified in PO. Once the Order is approved and released then GR can be created against the PO

In case of ITZ, Release strategy is used in case of all purchases.

Configuration involves following elements in sequence:

Release Group:

Release groups are created for each type of purchasing

Release codes:

The Release Code is a two-character ID allowing a person to release (approve) a requisition.(analogous to approver code)

Release Indicators:

A release indicator shows the release status of a Purchase Order

Release Indicators also involve:

Changeability Indicator
With the Changeability indicator, we can specify the effects of changes to a PO document. For example, certain changes may require a new release strategy to be determined for the requisition.

• Via the Value change field, we can cause the release strategy to be re-started if the value of a purchase order is increased by more than a certain percentage (e.g. 10%). To do so, set the Changeability indicator to "6 - Changeable, new release in case of new strategy or value change" and enter a percentage in the Value change field.

Release Strategy

The Release Strategy defines the approval process for PO. The strategy specifies the release codes which are necessary and the sequence in which releases have to be affected. We can define a maximum of eight release codes i.e. 8 Levels of approval.

Release Prerequisites indicate the sequence in which a Purchase Requisition must be approved via the release codes. (In ITZ case release is by a single authority so there are no prerequisite involved)

Release Status indicates the affect after the release by a particular release code

Release Values

These values need to be maintained in every client manually, this forms the basis on which release strategy is triggered for a PO.

An important prerequisite for this is to create Class & Characteristics in class type 032

Characteristics for Release Strategy

Create the Characteristics required for release strategy as master data thru transaction CT04, here the most important setting is to attach the characteristics to corresponding field of structure CEKKO

And attach it to the structure

Class for Release Strategy

Create the class as master data thru transaction CL02 and attach the Characteristics created earlier to the class

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing àPurchase Orders àDefine Screen Layout at Document Level

Transaction Code

SPRO

Configuration Description

In this step we define the attributes of various fields contained in a field selection key  (defined for a document type) inside which various fields are grouped into fields selection groups.Steps involved in the process  are :

• Selecting the field selection key (defined for a document type)
• Select the field selection option (hide, display, required entry, or Optional entry) for each field inside a field selection group reference as required.

Select a field selection key and set the attributes inside as shown:

get inside a field group and choose the attributes

settings can be made similarly  for other fields in various other groups as & when required

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing àPurchase Order àDefine Text Types for Header Texts

Transaction Code

SPRO

Configuration Description

In this step we define different Texts which appear in Purchase order header, these are used to store information applicable for a particular PO document

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing àPurchase Orders àDefine copying rules for Header Texts

Transaction Code

SPRO

Configuration Description

In this step we define copying rules for different header  Texts which appear in Purchase Order Headers

Copying rules are used to determine which texts can be adapted from other objects (for example, vendor master records, contracts, RFQ) to the header text of the Purchase Order. We link text types in the PO with text types in other objects. System can adopt header texts from the following objects:

• RFQ / Quotation
• Contract
• Scheduling agreement
• Vendor master
• Purchase Requisition

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing àPurchase Order àDefine Text Types for Item Texts

Transaction Code

SPRO

Configuration Description

In this step we define different Texts which appear in Purchase order item level, these are used to store information applicable for a particular PO document line item

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing àPurchase Orders àDefine copying rules for Item Texts

Transaction Code

SPRO

Configuration Description

In this step we define copying rules for different item  Texts which appear in Purchase Order ITEM

Copying rules are used to determine which texts can be adapted from other objects (for example, vendor master records, contracts, RFQ) to the header text of the Purchase Order. We link text types in the PO with text types in other objects. System can adopt header texts from the following objects:

• RFQ / Quotation
• Purchase Requisition
• Purchase Info record
• Contract
• Material master

maintain the rules for a text as under

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing àContracts àDefine Document Types

Transaction Code

OMH6

Configuration Description

SAP manages Contracts as documents which are grouped into various document types., in this step we have :

• Created new document types
• Defined item interval
• Define allowable item categories
• Defined admissible follow-on document types
• Assigned document types to a number range group
• Defined number range interval
• Chosen
  • internal
  • external
• Chosen

The update group determines how the data from the document header is updated in the statistics file.

In case of ITZ, use of Contracts and Scheduling agreements is very minimal so we have  retained and used standard SAP document types

Above linkage governs which type of PR can be referenced created  while creating a particular Contract  document type

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing àContracts àDefine Screen Layout at Document Level

Transaction Code

SPRO

Configuration Description

In this step we define the attributes of various fields contained in a field selection key  (defined for a document type) inside which various fields are grouped into fields selection groups.Steps involved in the process  are :

• Selecting the field selection key (defined for a document type)
• Select the field selection option (hide, display, required entry, or Optional entry) for each field inside a field selection group reference as required.

Select a field selection key and set the attributes inside as shown:

get inside a field group and choose the attributes

settings can be made similarly  for other fields in various other groups as & when required

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing àContracts àDefine Text Types for Header Texts

Transaction Code

SPRO

Configuration Description

In this step we define different Texts which appear in Contract header, these are used to store information applicable for a particular Contract document

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing àContracts àDefine copying rules for Header Texts

Transaction Code

SPRO

Configuration Description

In this step we define copying rules for different header  Texts which appear in Contract Headers

Copying rules are used to determine which texts can be adapted from other objects (for example, vendor master records, Contract, RFQ) to the header text of the Contract. We link text types in the PO with text types in other objects. System can adopt header texts from the following objects:

• RFQ / Quotation
• Contract
• Vendor master

We are maintaining Standard Text and copying Rules for Header Texts

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing àContracts àDefine Text Types for Item Texts

Transaction Code

SPRO

Configuration Description

In this step we define different Texts which appear in Contract item level, these are used to store information applicable for a particular Contract document line item

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing àContracts àDefine copying rules for Item Texts

Transaction Code

SPRO

Configuration Description

In this step we define copying rules for different item  Texts which appear in Contract Headers

Copying rules are used to determine which texts can be adapted from other objects (for example, vendor master records, contracts, RFQ) to the header text of the Contract. We link text types in the Contract with text types in other objects. System can adopt header texts from the following objects:

• RFQ / Quotation
• Purchase Requisition
• Contract
• Purchase Info record
• Material master

maintain the rules for a text as under

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing àConfirmations àDefine External Confirmation Categories

Transaction Code

SPRO

Configuration Description

Notification from the vendor to the recipient regarding the status of a purchase order., In case of ITZ , CONFIRMATIONS are not being used Confirmation categories are defined to symbolize the key for a type of confirmation

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing àConfirmations àDefine Internal Confirmation Categories

Transaction Code

SPRO

Configuration Description

In this step, we assign an external confirmation category to each internal confirmation category.

Internal Categories are for system controls.

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing àConfirmations àSet Up Confirmation Control

Transaction Code

SPRO

Configuration Description

In this step, we assign an external confirmation category to each internal confirmation category.

Internal Categories are for system controls.

As shown all the conformation categories are relevant for MRP, but the last one is relevant to GR also, which means that when a GR is made against the P.O line item it will get defaulted with qty of last conf. category

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing àConditionsà Define Price Determination Process àDefine Access Sequence

Transaction Code

SPRO

Configuration Description

Access sequence is an important element of pricing determination. It is the Order in which the system searches through the condition tables when searching for particular condition records. The search order goes from specific condition records to general condition records.

1. E.G.

Access sequence is made up of condition table (the level at which data is stored)

In the access sequence shown system will search for the record from first to last table in sequence. (e.g. if Custom duty % for a material is maintained at all the three levels i.e. Incoterms-plant-maerial  / Plant-Material / Plant-Material Type level , then system will take the record from 1^st available level only i.e. Incoterms-plant-maerial in this case)

Each condition table is defined as an combination of fields for data access and is assigned to different condition types ( In case of ITZ , we are not maintaining any access sequence),

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing àConditionsà Define Price Determination Process àDefine Condition Types

Transaction Code

M/06

s
Configuration Description

In this step we have defined condition types.

The condition types are used to represent pricing elements such as prices, discounts, surcharges, taxes, or delivery costs in the SAP. These are stored in the system in condition records.

For condition types for which we want to maintain conditions with their own validity period we have specified an access sequence. (e.g. for all import duty conditions

Important Settings Condition type include:

Condition Class: Defines nature of condition as Prices / surcharge / discounts etc.

Calculation type: Defines nature of condition unit i.e. Amount type / Percentage / Qty etc

Condition Category : e.g. Packaging, Cost , Tax, Delivery Costs(requiring extra vendor at condition level)

Access Sequence : Allows condition records to be maintained

Header Condition : Allows usage at Header level of Purchasing document

Accruals : Makes a condition irrelevant to net price calculation i.e. excluded from tax base

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing àConditionsà Define Price Determination Process àDefine Calculation Schema

Transaction Code

M/08

Configuration Description

In this step, we have defined the calculation schemas.

In MM area, a calculation schema is a framework of steps used to calculate pricing in as purchasing document

Analogous to this is referred to in the Sales and Distribution (SD) area as a pricing procedure.

In the calculation schema (pricing procedure), we specify which condition types are to be taken into account in which sequence.
In the price (or cost) determination process, the SAP System automatically determines which calculation schema is valid for a business transaction and takes into account, one after another, the condition types it contains.

In case of ITZ we have defined schemas all starting with Z*, these will get derived in different types of purchasing documents as per the rule explained in Schema determination configuration

Select one of the schema and see the control data as shown below:

Important keys in defining Schema are as under:

Step No. & Counter: For determination the sequence of conditions and to act as a base for calculations with in condition

From- To : Base for calculation of condition value, this is only relevant for % type of conditions

Statistical: Makes a condition non-relevant to account postings

Subtotal: Used to pass the condition value in to fields of P.O item tables and other pricing structure

Requirement : Used for validating Condition value determination using small ABAP written formulae

Base Type: Here a Formula for determining the condition basis as an alternative to the standard.

Accrual key: for deriving a separate account during GR / Invoice postings

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing àConditionsà Define Price Determination Process àDefine Schema Group

Transaction Code

SPRO

Configuration Description

Every External Purchase document derives Calculation Schema from a combination of Purchasing Organization and Vendor, to simplify data maintenance for this process SAP works with grouping concept. So all the purchasing org. are grouped in to a Schema group and Vendors requiring same pricing stricture are grouped into a Schema group , now for the combination of these , system derives the pricing schemas

Click on a row to enter :

the other part i.e. vendors are assigned with schema group in vendor master

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing àConditionsà Define Price Determination Process àDefine Schema determination

Transaction Code

SPRO

Configuration Description

In this step we have defined the determination of Pricing schema for different type of Purchasing documents and for Stock transport orders

For standard purchase orders
(depending on the schema group of the vendor and the purchasing organization)

For stock transport orders
(depending on the supplying plant, the document type and the schema group of the purchasing organization)

select first item ,

and second item

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing àConditionsà Define Price Determination Process àDefine Transaction Event keys

Transaction Code

SPRO

Configuration Description

In this step, we have defined transaction/event keys for condition types involving provisions.

This enables the system to find the relevant account for provisions (for accrued delivery costs or miscellaneous provisions, for example),

We have assigned these transaction/event key to each condition type that is relevant to provisions in the step Define Calculation Schema.

Select the 1^st row

Select second row, it displays the usage of key in schema

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing àConditionsà Define Price Determination Process àMaintain Condition Table

Transaction Code

SPRO

Configuration Description

In this step, we create custom tables, these table are used to store condition records for different condition types , for this these tables should be a part of access sequence

With help of this we can derive prices, discounts and surcharges dependent on almost all the fields in a purchasing document.
In a condition table, we specify the combination of fields for which we can create condition records.

As per SAP recommendation we should not change the condition tables that are included in the standard version of the SAP System.

Check the extent to which we can use the condition tables that are supplied with the standard SAP System, for our tables we can only choose names between 501 and 999. If we make no entry, the system will automatically assign a consecutive number.

For ITZ we have not defined any tables:

Steps:

For creating new condition tables. copy a similar condition table and proceed as follows:

• Enter the name of the table we wish to create.
• Note that we can only choose names between 501 and 999. If we make no entry, the system will automatically assign a consecutive number.
• Specify whether we wish to create the table with or without a validity period.
• Enter the type of condition table (for example, transparent table).
• Enter a description for the condition table.
• From the list of allowed fields that are included in the field catalog and which can be extended there, choose the desired fields for the condition table.
• Generate the new condition table.

IMP: All the fields that shall be used to pick up any condition value must be part of Header/Key field in the condition table.

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing àStatistics àDefine Grid for Quantity Variances

Transaction Code

SPRO

Configuration Description

For Purchasing information system for vendor performance the statistics is managed on the amount of quantity variances of vendors.

The delivery quantity variance specifies in percent the variance between the purchase order quantity and the quantity actually delivered.

This key figure is determined if an order item is completed and is updated for the entry date of the goods receipt or for the entry date of purchase order change.

In this step we can determine four interval limits for every purchasing organization. Five intervals are then available to we for evaluation of vendors

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing àStatistics àDefine Grid for Delivery date

Transaction Code

SPRO

Configuration Description

Delivery date variance data is used in statistics for evaluating vendor performance.

The delivery date variance specifies the difference in days the difference between the statistically relevant delivery date and the date of the goods receipt.

This key figure is updated during the goods receipt for the entry date.

In this step we can determine four interval limits for every purchasing organization. Five intervals are then available to we for evaluation of vendors

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing àVendor Evaluation àDefine Weighing keys

Transaction Code

SPRO

Configuration Description

In vendor evaluation criteria are weighted according to their importance through Weighing key.

For example, the overall evaluation of a vendor is calculated from the scores awarded for the main evaluation criteria "price," "quality," and "delivery." The latter comprises "on-time delivery performance" and "quantity reliability."

If we consider a vendor's price to be more important than quality, and quality to be more important than delivery, we can assign weights to the criteria in a ratio of three for price, two for quality, and one for delivery. This ratio is recorded in a weighting key.

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing àVendor Evaluation àDefine Criterion

Transaction Code

SPRO

Configuration Description

Here we have defined the criteria by which the system computes scores for vendors and specify whether the scores for the subcriteria are computed manually, semi-automatically, or automatically.

Select One of the criterion and drilldown to sub criterion

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing àVendor Evaluation àDefine Scope of List

Transaction Code

SPRO

Configuration Description

In this step we define various types of list, each representing different main criteria or the same main criteria in a different order.

In the standard system, the scope-of-list parameters 'standard' and 'version 1' are supplied as an example:

• The parameter Standard provides the user with a ranking list of vendors by overall score. The main criteria are arranged in the order "Price", "Quality", "Delivery", "General service/support” and "Externally performed service/work".

• The parameter Version 1 yields a ranking list of vendors sorted according to the score for the main criterion "Price". Then follow the overall evaluation and the main criteria "General service/support", "Quality", "Delivery", and "Externally performed service/work".

check the details of list inside

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing àVendor Evaluation àMaintain Purchasing Organization data

Transaction Code

SPRO

Configuration Description

Select a row and displays criterion for Purchasing Organization

Sub criterions for main criterion

Weighing for a Purchasing Org.

We have provided Equal Weighting to the Criteria as we have different weighing parameters for ITZ

Point scores for a Purchasing Org.

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing àPartner Determination à Partner RolesàDefine Permissible Partner Roles per Account Group

Transaction Code

SPRO

Configuration Description

Here we can specify for each account group of the vendor which roles the vendor may assume. Example we can specify that certain vendors may only serve as an ordering address, not as an invoicing party.

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing àPartner Determination à Partner settings in Vendor Master recordsàDefine Partner Schemas

Transaction Code

SPRO

Configuration Description

Partner schemas allow us to group various partner roles. We can specify that certain roles in a schema are mandatory, i.e. cannot be changed after entry.

For ITZ, Schema groups Z1 is defined

select a schema to detail the allowed partner functions

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing àPartner Determination à Partner settings in Vendor Master recordsà Assign Partner Schemas to account groups

Transaction Code

SPRO

Configuration Description

Here we assign the already defined schema groups to vendor account groups

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing àPartner Determination à Partner settings in Purchasing documentsàDefinePartner Schemas

Transaction Code

SPRO

Configuration Description

Partner schemas allow us to group various purchasing documents for partner determination. We can specify that certain roles in a schema are mandatory, i.e. cannot be changed after entry.

For ITZ, Schema group Z001 is defined

Select a Schema to detail the partner function allowed

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à Purchasing àPartner Determination à Partner settings in Purchasing documentsàAssignPartner Schemas to document types

Transaction Code

SPRO

Configuration Description

In this step, we have assigned the partner schemas to the various types of purchasing document.

As a result, only the roles of the schema in question can be maintained in documents of the relevant types.

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à External Services Managementà Service Master à Define Service Category

Transaction Code

SPRO

Configuration Description

In this step, we define the service category.

The service category is the most important criterion for structuring

Service master records. It provides a default value for the valuation

1. Classes. Service master records can be assigned to number ranges on the basis of the service category.

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à External Services Managementà Service Master à Define NumberRanges

Transaction Code

SPRO

Configuration Description

In this step, we define NumberRanges for each service category.

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à External Services Managementà Service Master à Define Service Category

Transaction Code

SPRO

Configuration Description

In this step, we define the service category.

The service category is the most important criterion for structuring

Service master records. It provides a default value for the valuation

1. Classes. Service master records can be assigned to number ranges on the basis of the service category.

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management à External Services Managementà Service Master à Define Service Category

Transaction Code

SPRO

Configuration Description

In External Services Management, a number of system messages containing important information for users may be issued. Users can process this information further.

In this step, we can define whether the SAP System

• Suppresses this information
• Issues it in the form of a warning

• Issues it in the form of an error message

For ITZ requirement, additional messages no. SE 346 / 347 / 361 is activated as Error along with other additional Standard SAP Messages

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management ® Inventory Management and Physical Inventory ®Plant Parameters

Transaction Code

SPRO

Configuration Description

In this step, we make the general plant settings for ‘Inventory Management’. All settings are also contained in the individual steps of the Implementation Guide for Inventory Management.

• If we have created a plant in the enterprise structure using the Copy plant function, we do not need to make any settings.
• If we have created a plant manually, we have to create a new entry for the plant parameters.

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management ® Inventory Management and Physical Inventory ® Number Assignment ®Define Number Assignment for Accounting Documents

Transaction Code

OMBA

Configuration Description

In this step, we set the number ranges for the accounting documents which are created when goods movements or inventory differences are posted.

For accounting-relevant goods movements, the system creates two different documents:

• material document
• accounting document

Both the material documents and the accounting documents have their own document numbers. When inventory differences are posted, the system also creates an accounting document for the physical inventory document.

In this step, we only maintain the number assignment for accounting documents.

Accounting documents are split into document types to allow differentiated document number assignment, which is the basis for distinguishing between the various accounting operations. A number range is assigned to each document type. In a company code, we have to define number intervals for each number range and fiscal year. In inventory management, the transaction determines which document type is used.

Goods Issue Document Type

Goods Receipt Document Type

Automatic Movements Document Type

Physical Inventory Document Type

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management ® Inventory Management and Physical Inventory ® Number Assignment ®Define Number Assignment for Material and Phys.Inv Documents

Transaction Code

OMBT

Configuration Description

In this step, we maintain the number assignment for the following documents:

• material documents
• physical inventory documents

The number assignment for these documents is not to be confused with the number assignment for accounting documents which we completed in the step Define number assignment for accounting documents. The number assignment for accounting documents depends on the document type which is allocated to the transaction.

The number assignment for material documents and physical inventory documents depends on the transaction/event type which is also allocated to each transaction in Inventory Management. The transaction/event types are divided into groups of number ranges. A number range interval has to be defined for each group.

Note

We cannot change the transaction/event types. However, we can change the number range intervals or we can allocate transaction/event types to new groups.

SPRO-> IMG-> Materials Management-> Inventory Management and Physical Inventory-> Number Assignment-> Define Number Assignment for Material and Phys. Inv. Docs
Her you ned to maintain the number ranges for the group attched to the key.

If you want to maintain new number range intervals for an existing group:
a) Choose Group -> Maintain.
b) Select a group and choose Interval -> Maintain.
c) Choose Edit -> Insert year.
d) Maintain the number interval for the new fiscal year.

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management ® Inventory Management and Physical Inventory ® Number Assignment ®Define Number Assignment for Reservations

Transaction Code

OMJK

Configuration Description

In this step, we set up number assignment for reservations.

The number assignment applies to all plants in the client.

Note

If we create reservations with method CreateFromData1 (function module BAPI_RESERVATION_CREATE1), we can use the number range RB for an external number assignment.

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management ® Inventory Management and Physical Inventory ®Field Selection for Goods Movement/Header Screens

Transaction Code

OMJN

Configuration Description

In this step, we define the field selection for goods movements initial and header screens.

Note that the field selection for the item screens depends on the movement type and is configured in separate steps.

In this step, we specify whether the fields are input, mandatory, display or hidden.

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management ® Inventory Management and Physical Inventory ® Settings for Enjoy Transactions ® Settings for Goods Movements ®Field Selection for MIGO

Transaction Code

OMJX

Configuration Description

Here we can:

• Hide the header data completely or hide particular fields that we do not require
• Hide pushbuttons that we do not require
• Define the Delivery note and Bill of lading fields as mandatory entries if we use evaluated receipt settlement
• Show the GR/GI slip (GOHEAD-XABLN) field if we use GR/GI slip numbers (only necessary in certain countries)
• Show the Plant (GODYNPRO-PO_WERKS) field if we require the ordering-plant name for purchase-order-related goods movements as a selection criterion in addition to the purchase order number and item number

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management ® Inventory Management and Physical Inventory ® Settings for Enjoy Transactions ® Settings for Goods Movements ®Field Selection per Mvt Type

Transaction Code

SPRO

Configuration Description

In this step, we maintain all the settings for field selection by movement type. This step replaces the activity Define Screen Layout for the Enjoy transactions. The settings from Define Screen Layout are adopted in these settings automatically so that we do not need to maintain new entries here.

We can specify for each field whether it is an optional entry or a mandatory entry. In the table, we see all fields that are visible. We can access the setting Field Invisible by deleting the appropriate entry from the table.

There is no distinction between different special stock indicators in these entries. Special stock fields are always suppressed automatically.

Menu path

1. Implementation Guide for R/3 Customizing (IMG) ® Materials Management ® Inventory Management and Physical Inventory ® Settings for Enjoy Transactions ® Settings for Goods Movements ®Settings for Transactions and Reference Documents

Transaction Code

SPRO

Configuration Description

We can limit the number of selectable transactions (goods receipt, goods issue, and so on) and reference documents (material document, delivery note), and we can specify the movement type that the system is to propose for every reference document.

If we need only certain transactions (for example, goods receipts or goods issues), we can choose from the following preset transactions:

MIGO - Used to enter all goods receipts.

MIGO_GR - Used to enter goods receipts from external procurement.

MIGO_GO - Used to enter goods receipts for production orders.

MIGO_GI - Used to enter goods issues.

We can always display material documents.

Transaction MIGO; Actions Mentioned in the table

Reference Document Types (For details go to the path mentioned)