PROJECT REPORT

SAP - MATERIAL MANAGEMENT

A PROJECT REPORT OF SAP- MM FOR A COMPANY

Submitted by:
G Shathish
Student SAP MM

EXECUTIVE SUMMARY

This project report deals with the use of SAP MM module for the
management of material in any organization. It contains the enterprise
structure, Purchasing, Inventory Management, Stock Transfer, Transfer
Posting, Master Data Management and External Service Management. In
enterprise structure, we define the company, company code, Plants,
Storage Location and Purchase Organization and the assignment of these
areas with the company code. In Purchasing, we will provide Purchase
Requisitions, Purchase Orders, and Request for Quotations. In Stock
Transfer, Transfer Posting, we will transfer the material from one storage
location to another and from one storage location to another plant. In
Inventory Management, we will provide Goods Receipt, Goods Issue and
Return Delivery. In Master Data Management, we will create new
materials and new vendors. In External Service Management, we will
provide new service organization.
In this report we also show all related transaction codes and path in the
Enterprise structure, Purchasing, Inventory Management, Master Data
Management, Stock Transfer, Transfer Posting and External Service
Management. We have also given the different screen shots of different
paths and features.

Content
Serial no.

Topics

Introduction

Advantage

Disadvantage

Why SAP

Understanding the SAP system landscapes

ASAP methodology

Comparison of SAP and ORACLE

13

Implementation of SAP in ERP

16

TATA COFFEE INDIA LIMITED

17

SAP Easy Access Screen

19

10

ENTERPRISE STRUCTURE

11

Page no.

Company

20

Company code

21

Plant

23

Storage Location

26

Purchase Organization

28

Assignment

30

12

MASTER DATA MANAGEMENT

Material master data

43

Vendor master data

48

Info Record

13

14

15

51

PURCHASING
Request for Quotation

56

PurchaseRequestion

67

Purchase Order

71

INVENTORY MANAGEMENT
Goods Receipt

79

Goods Issue

79

Return Delivery

82

STOCK TRANSFER, TRANSFER POSTING

Transfer Posting

85

Stock Transfer

87

16

PHYSICAL INVENTORY

92

17

EXTERNAL SERVICE MANAGEMENT

Organization

102

Service Category

109

Service Master

113

Service Acceptance

118

INTRODUCTION

SAP, started in 1972 by five former IBM employees in Mannheim, Germany, states that it is
the world's third-largest independent software vendor. The original name for SAP was
German: Systeme, Anwendungen, Produkte. It means "Systems Applications and Products."
The goal of the company was to provide large enterprise customers with the ability to interact
with a corporate database in real-time. Today, the company states that its goal is "to offer the
industry's most comprehensive portfolio of business performance and optimization solutions
for companies of all sizes."
SAP's first software application was a financial accounting software suite that ran on
a mainframe and was known for its stability. It eventually became known as the R/1 system.
The "R" stands for real-time. During the 1980s, the company went international, and the
second iteration of the R system (R/2) accommodated different languages and currencies. In
the 1990s, the third iteration (R/3) moved from the mainframe to a client/server three-tier
architecture composed of a database, software applications and a common graphical user
interface (GUI). SAP used the name R/3 until the 5.0 release. At that time the name was
changed from R/version to ERP Central Component (ECC). The most current version as of
November 2009 is ECC 6.0.
When the Internet became pervasive, SAP responded by providing companies with the
software they needed to sell goods and services online. Their product portfolio got a Web
interface and was rebranded MySAP.com. My SAP was designed to be a corporate
Web portal with role-based permissions for employees . The company promoted how SAP
"solutions" could link commerce conducted over the Internet (e-commerce) with traditional
bricks and mortar commerce to provide one seamless view of the business. Next came SAP
NetWeaver, the companys development and integration platform and middleware
component, and Business Suite, a bundling of SAPs enterprise resource planning (ERP),
customer relationship management (CRM), supply chain management (SCM), product
lifecycle management (PLM) and supplier relationship management (SRM) applications. In
2008, SAP purchased Business Objects, a French enterprise software company that
specializes in business intelligence (BI), which marked a major change in the companys BI
strategy, which was previously focused around SAP's Business Explorer tools.

Page 1

Current products include:

SAP NetWeaver - service-oriented technology platform (SOA) for integrating information
and

business

processes

across

diverse

technologies

and

organizational

structures. NetWeaver provides the foundation for other SAP software bundles.
SAP Business Suite - software applications for large organizations and international
corporations. The applications support core business operations such as supply chain
managment, warehouse management, sales, customer relationship management and
administrative functions. SAP offers software for 25 vertical industries, including banking,
insurance, chemicals, healthcare, retail and consumer products.
SAP Business All-in-One solutions, SAP Business ByDesign and SAP Business One software products that address the needs of small and mid-market companies.

Advantages of Using SAP R/3 in comparison with other Similar Tools

Technology playing a major role in today's business environment. So many companies and
corporations have adopted information technology on a large scale by using Enterprise
Resource Planning (ERP) systems to accomplish their business transaction and data
processing needs. And in this technology SAP R/3 plays a significant role when compared
with other similar tools.
ERP system takes a lead role because of some of the following reasons
Many large corporations use several different and separate information systems, often
because they have merged with and/or acquired other companies with varied systems. An
ERP system integrates these separate information systems and results in improved data
reliability and processing efficiency. ERP systems are not only used by large corporations but
becoming popular with small to mid-sized companies also.
Simplify business transaction processing and thus work load is reduced.

Page 2

Advantages and Disadvantages of SAP

SAP Advantages:
1. Integration
Integration can be the highest benefit of them all. The only real project aim for implementing
ERP is reducing data redundancy and redundant data entry. If this is set as a goal, to automate
inventory posting to G/L, then it might be a successful project. Those companies where
integration is not so important or even dangerous tend to have a hard time with ERP. ERP
does not improve the individual efficiency of users, so if they expect it, it will be a big
disappointment. ERP improves the cooperation of users.
2. Efficiency
Generally, ERP software focuses on integration and tend to not care about the daily needs of
people. I think individual efficiency can suffer by implementing ERP. the big question with
ERP is whether the benefit of integration and cooperation can make up for the loss in
personal efficiency or not.
3. Cost reduction
It reduces cost only if the company took accounting and reporting seriously even before
implementation and had put a lot of manual effort in it. If they didn't care about it, if they just
did some simple accounting to fill mandatory statements and if internal reporting did not
exists of has not been fincancially-oriented, then no cost is reduced.
4. Less personnel
Same as above. Less reporting or accounting personnel, but more sales assistants etc.
5. Accuracy
No. People are accurate, not software. What ERP does is makes the lives of inaccurate people
or organization a complete hell and maybe forces them to be accurate (which means hiring
more people or distributing work better), or it falls.
Disadvantages:
1. Expensive
This entails software, hardware, implementation, consultants, training, etc. Or you can hire a
programmer or two as an employee and only buy business consulting from an outside source,
do all customization and end-user training inside. That can be cost-effective.

Page 3

2. Not very flexible

it depends. SAP can be configured to almost anything. In Navision one can develop almost
anything in days. Other software may not be flexible.

WHY SAP?
SAP ERP:
BUSINESS BENEFITS
SAP ERP delivers a comprehensive set of integrated, cross-functional business processes.
With SAP ERP, you can gain the following benefits:
Improve alignment of strategies and operations
Run your enterprise in accordance with strategy and plans, accessing the right information in
real time to identify concerns early.
Pursue opportunities proactively.
Achieve corporate objectives by aligning workforce and organizational objectives.
Find the best people and leverage their talent in the right job at the right time.
Improve productivity and insight
Leverage self-services and analytics across your organization.
Improve operational efficiency and productivity within and beyond your enterprise.
Reduce costs through increased flexibility
Use enterprise services architecture to improve process standardization, efficiency, and
adaptability.
Extend transactions, information, and collaboration functions to a broad business community.

Page 4

Support changing industry requirements

Take advantage of the SAP NetWeaver platform's latest open, Web-based technology to
integrate your end-to-end processes seamlessly.
Reduce risk
Solve complex business challenges today with SAP, your trusted partner for long-term
growth, with 30 years of experience working with organizations of all sizes in more countries
than any other vendor.
Join SAP's world-class partner network, uniquely qualified to support the best business
practices in more than 25 industries.
Improve financial management and corporate governance
Gain deep visibility into your organization with financial and management accounting
functionality combined with business analytics.
Increase profitability, improve financial control, and manage risk.
Optimize IT spending
Integrate and optimize business processes.
Eliminate high integration costs and the need to purchase third-party software.
Deploy other SAP Business Suite applications incrementally to improve cash flow and reduce
costly borrowing.
Gain higher ROI faster
Install SAP ERP using rapid-implementation techniques that cost less than half what
traditional approaches cost.
Leverage preset defaults and prepackaged versions available for specific industries.

Page 5

Retain top performers

Retain your top performers through clearly defined career and development plans.
Link employees performance to compensation programs such as variable pay plans and
long-term incentives.
Provide immediate access to enterprise information
Give employees new ways to access the enterprise information required for their daily
activities.

Understanding the SAP System Landscape

What exactly is SAP System Landscape? How does this phenomenon differ from SAP
System Architecture? In this posting, I intend to answer the above mentioned, closely related
questions in a very concise manner, with particular emphasis on the system landscape of
SAP. Often times, SAP users, especially new comers misunderstands the two concepts.

The SAP architecture is typically the technology framework of the SAP system. SAP's
architecture unlike the system landscape has changed over time (and more recently) with the
advent of SAP ECC.
In a prior posting, I "x-rayed" they system architecture of SAP R/3.

They system landscape basically is the set-up or arrangement of your SAP servers. Ideally, in
an SAP environment, a three-system landscape exists. A three-system landscape consists of
the Development Server-DEV, Quality Assurance Server-QAS and the Production ServerPROD. This kind of set-up is not primarily designed to serve as server clusters in case of
system failure, the objective to enhance "configuration pipeline management".

Page 6

A Typical SAP Three-System Landscape

At this juncture, it is important to state that a test system - Sandbox can also exit separately.
The essence of the sandbox is to test the configuration of the business processes of a
company, especially at the inception of the project (before the Business Blue Print is signed).
It can also serve as a practice environment, even after go-live.

Pipeline is the environment where the configuration in the development system is moved to
the quality assurance system and finally to the production system. The whole idea is to ensure
that the configuration of these systems is in sync at any point in time. Suffice to say that,
configuration/changes are first made in the Development system, thoroughly tested in the
Quality Assurance system before been loaded into the production (Live) system.

This approach throws up the transport management system concept. Transport management
system is the coordination of the movement of objects and configuration changes from the
development system to the Quality Assurance system and then to the Production system. At
times, this sequence of movement is not possible, especially in cases where an SAP note
mandates that changes be made directly on the production system.

In such rare cases, objectively confirm that the change transport cannot be performed. Very
likely, your system must have been configured to "not modifiable" (a system locking strategy
that enforces the three-system landscape change transport rule); unlock the system by
changing the global setting option to "modifiable" using transaction SE03. After you have
done that, effect the change(s) on the system. Immediately lock the system back by changing
the global setting option to "not modifiable" using transaction SE03. Replicate the changes on
the other system. Note that transaction SCC4 can also be used to lock the system so that

Page 7

client dependent and independent configuration changes are not carried out directly on the
production system.

By and large, the SAP system landscape ensures that the integrity of data is enhanced via
enforcing a controlled configuration changes effect on the target system - production.

ASAP Methodology
Features
The implementation of your SAP System covers the following phases:
Project Preparation
In this phase you plan your project and lay the foundations for successful implementation. It
is at this stage that you make the strategic decisions crucial to your project:
Define your project goals and objectives
Clarify the scope of your implementation
Define your project schedule, budget plan, and implementation sequence
Establish the project organization and relevant committees and assign resources
Business Blueprint
In this phase you create a blueprint using the Question & Answer database (Q&Adb), which
documents your enterprises requirements and establishes how your business processes and
organizational structure are to be represented in the SAP System. You also refine the original
project goals and objectives and revise the overall project schedule in this phase.

Realization
In this phase, you configure the requirements contained in the Business Blueprint. Baseline
configuration (major scope) is followed by final configuration (remaining scope), which can

Page 8

consist of up to four cycles. Other key focal areas of this phase are conducting integration
tests and drawing up end user documentation.
FinalPreparation
In this phase you complete your preparations, including testing, end user training, system
management, and cutover activities. You also need to resolve all open issues in this phase. At
this stage you need to ensure that all the prerequisites for your system to go live have been
fulfilled.
Go Live & Support
In this phase you move from a pre-production environment to the live system. The most
important elements include setting up production support, monitoring system transactions,
and optimizing overall system performance.
Elements of the Enterprise Structure
The enterprise structure consists of the following elements:
Client
R/3 System clients have an independent status both in legal and organizational terms. The
clients within the system can be distinguished by a three-character, alpha-numeric code and
are defined in Customizing.
When your R/3 System is installed, it is set up with two clients:
Client 000
Client 000 is the SAP standard client. The SAP original system is held in this client. Client
000 contains default values for all tables. SAP updates the default values with every system
upgrade and release upgrade.

You are not allowed to work in this client.

Client 001

Page 9

The content of this client is the same as the 000 client. You can do your customizing in this
client in order to adjust the standard system to your requirements.
Clients are a technical structural feature of an R/3 system. The system makes a distinction
between client-independent and client-dependent elements. Client-independent elements are
objects that are used in all clients. Client-specific elements are objects that are only used in a
specific client.
The following objects are defined as client-independent:

data structures, such as field definitions, table structures, and file set-ups

client-independent tables

transactions

programs

Standard reporting

Authorization objects

R/3 library

The following objects are defined as client-dependent:

client-specific tables that must be copied from the original client, that is, client 000

HR master records

user master records

Authorization profiles

customer-specific programs

The following factors must be taken into consideration when you decide whether or not to
create a client:

You have to adapt the system client-specifically to the enterprise structure.

You cannot access personnel data in other clients. Each clients personnel data is
protected from unauthorized access.

You cannot perform reporting across all clients, and you cannot receive or assign
client-independent access authorizations.

You cannot exchange data between clients.

Page 10

If an employee moves between two clients, you must assign him or her a new
personnel number.

Company code
Within a client the company code represents the highest level of the enterprise structure. In
Customizing, the company code is defined by a four-character, alpha-numeric code.
If the Controlling, Financial Accounting, Materials Management or Sales and
Distribution application components are set up in addition to the Personnel
Administration component, you must set up the company code so that it also meets their
requirements. This is not tantamount to a restriction: You define all of the HR Systems most
important control data at the level of the personnel subareas, and these levels belong to
Personnel Administration.
In Personnel Administration, the company code has the following control functions:

The company code is used to generate default values for data entry, for example, an
employees payroll accounting area.

The company code is a selection criterion for reporting.

The company code constitutes an authorization check unit.

At the company code level, the following control features are assigned which are relevant
for Personnel Administration:

the default country key for the employees personal data, address data, and bank data.

a default value for the currency key for employees basic pay.

a language code for text output, for example, employee remuneration information.

This language code is not the same as the logon language, which determines the language
used in the on-line system.

Page 11

Personnel area
Personnel areas divide a company code into sub-units. The individual personnel areas in a
company code are defined in Customizing and have a four-digit alpha-numeric identifier.
The personnel area has the following functions:

The personnel area is used to generate default values for data entry, for example, an
employees payroll accounting area.

The personnel area is a selection criterion for reporting.

The personnel area constitutes an authorization check unit.

Personnel subarea
Personnel subareas are a subdivision of the personnel area. Organizational control of the main
HR subareas, namely the pay scale and wage type structures and work schedule planning,
takes place at the personnel subarea level. In Customizing, the personnel subarea is defined
by a four-character, alpha-numeric code. The respective country-specific control features are
stored here.
The personnel subarea has the following organizational functions:

Specifying the country grouping; this controls the dialog for entering country-specific
personnel data and the setting up and processing of wage types and pay scale groups
in payroll accounting; within a company code, the country grouping must be
unambiguous

Assigning a legal entity to differentiate between the individual companies from a legal
point of view

It specifies groupings for Time Management. This enables you, for example, to set up
work schedules, substitution types, absence types, and leave types on the basis of a
specific personnel subarea.

The personnel subarea is a selection criterion for evaluations.

The personnel subarea is used to generate default values for pay scale area and pay
scale type for an employees basic pay.

It specifies the public holiday calendar.

Defining personnel subarea-specific wage types per personnel area

Page 12

It assigns a legal person for payroll accounting.

Comparison of SAP and ORACLE

SAP

ORACLE

Headquarter

Germany

USA

Position in
Market

The largest vender

of
management
software;
Third-largest
independent software
company
ERP (including
Financial, Human
Resource, etc)
Customer
Relationship
Management
Software
Enterprise
Performance
Management
Software
Internal Audit&
Compliance Software
Supply Train
Management
Software
Business
Intelligence
NetWeaver Tech
Platform
Core System
Policy
Administration
System
Claim
Administration
System
Reinsurance

The largest vender of

data base software
Second largest
independent software
company

Item

Company
Information

Product Line

Experience
in
Insurance
Domain

Product Line

Page 13

Oracle
Oracle Business
Intelligence
(Financial)
PeopleSoft
Data Base Software
Siebel Client
Management Software
Hyperion Enterprise
Performance
Management Software
BEA middleware
products
Oracle business

No core system for

insurance
industry. To purchase
thirdparty
software vender to
fulfill the project

Partner

Software
Package&
Technical
Support

Modules of
Finance Sub
System

Other
Function

Purchase
Method

Administration
System
Commission
Administration
System
Billing& Payment
Administration
System
Insurance Industry
Client Relationship
Administration
System
Financial Assets
Administration
System
ERP
IBM
Accenture
PWC

Financial
Accounting
Management
Accounting
Capital Management
Asset Management
Financial Reporting
Platform
Budget Management
Expense
Management
Financial
Performance
Management
Audit Information
System
GRC
New-Version
Budget
planning
Software package
includes system
performance monitor,
Backup& Restore,
System function, etc

Not based on
module

Base on module
User accounts&
licenses

Page 14

Oralce Financial
OFSA
I-Expense
Treasury
Hyeperion

There is no System
function in the
software
package

Expense
Allocation
Interface
between
Bank and
Insurance
Focus on
Satisfy CIRC
regulation
Enhancement

Platform

Maintenance
Issue
Technical
support
Develop
Language
Data Base

Open Source

Financial accounting
and
management
accounting
are independent, to
support cost
management and
analysis in more
efficient way
Management
accounting
is flexible
Experienced in
interface
between bank and
insurance
Business user
capability
Easy

will also be taken into

price consideration
Complicate in COA
setting, not flexible

There is no expense
allocation function
No such experience

IT capability
Not very easy

Configuration can
satisfy
many enhancement
requirement
User orientation

Many enhancement
Need
to be developed

SAP worldwide
technical support
Java
Open-SQL
IBM DB2
Oracle
MS SQL
Yes

Oracle worldwide
technical support
Java

Page 15

IT orientation

Oracle

No

IMPLEMENTATION OF SAP IN ERP:

1. SAP Labs is the research and development organization of the parent company. SAP
has its development organization spread across the globe. Many, but not all, labs
locations are hosting SAP Research groups.
2. SAP customer support, also called Active Global Support (AGS) is a global
organization to provide support to SAP customers worldwide.
3. User Groups are independent, not-for-profit organizations of SAP customer
companies and partners within the SAP Ecosystem that provide education to their
members, influence SAP product releases and direction, exchange best practices, and
provide insight into the market needs
4. In 2007, the SAP User Group Executive Network (SUGEN) has been established to
foster the information exchange and best practice sharing among SAP User Groups
and to coordinate the collaboration with SAP for strategic topics.
5. Partnerships are core to SAPs strategy and in its 35 years of history the network of
software solution providers, value-added resellers, distributors, technology and
services partners has developed into a broad ecosystem that is among the industry's
largest.

Page 16

TATA COFFEE INDIA LIMITED

COMPANY PROFILE
Areas of business
Tata Coffee is arguably the largest integrated coffee plantation company in the world .Tata
Coffee has a hand in every aspect of the coffee making process, with business activities
ranging from growing and curing of coffee and tea to the manufacture and marketing of
value-added coffee products. Tata Coffee grows coffee on its own estates, processes the
beans, exports green coffee , manufactures and exports Instant Coffee and retails coffee with
its own branding in the domestic market.
Plantations
Coffee
Tata Coffee owns 19 coffee estates located in ideal coffee growing highlands of Southern
India, with fertile soils and invigorating climate. Spread over 8037 hectares in Coorg,
Chickmaglur and Hassan districts of Karnataka and in Valparai district of Tamil Nadu, Tata
Coffee produces 10,000 metric tonnes of natural shade grown Arabica and Robusta coffees,
in both washed and unwashed forms.
These estates are located at various altitudes, and the coffee produced possess distinct cup
characteristics.
Tata Coffee's uniqueness lies in its ability to produce large quantities of estate specific, strain
specific, speciality and premium coffee, while maintaining a strict consistency in quality.
Apart from coffee and tea, pepper and cardamom are also grown as inter crops on its estates.
Monsoon Malabar, Mysore Nugget Extra Bold, and Robusta Kappi Royale are three of the
prominent speciality grades of Indian coffee it grows and processes apart from estate specific
coffees. Mr. Bean, a quality product made from the finest coffee beans at its plantation, was
recently introduced.
Coffee curing
The company has the largest curing facility in the country at Kushal nagar with an installed
capacity of 10,000mt. The coffee is cured in the company's state-of-the-art curing facility at
Kushalnagar in Kodagu district. It has been awarded the prestigious certificate of approval for
quality ISO-9002 through certification by Bureau Veritas Quality International, Netherlands.
This unit is the first curing industry in India to receive ISO-9002 certification.
Tea
The company also owns six tea estates which spans 4755 hectares in Coorg and
Chickmagalur districts of Karnataka and Annamalais district of TN and produce 6.5 million
kilograms of tea.

Page 17

Estate supplies
Tata Coffee also deals in plantation requirements such as fertilisers and chemicals, estate
implements, and tyres and tubes through it's Estate Supplies Division
Instant Coffee
Tata Coffee also has the capacity to produce 5000 metric tonnes of Instant Coffee per annum,
for which it has a sizable export market. International Tata Caf, Mysore Gold and Malabar
are the popular Instant Coffee brands which are exported
Timber
Tata Cofee has abundant reserves of timber, which is grown for shade. The company's timber
resources on its estates include Rosewood, Silver Oak, and other softwood trees. As part of
its plans to optimise the utilisation of the company's captive timber resources, the company
has entered into 'Timber Value-Addition' industry by getting its Silver Oak timber converted
into plywood of different types and bearing the brand name 'Conswood'.
Locations
Plantations
The Coorg district of Karnataka, India, is one of the main coffee-growing regions in India
and the main plantation operations of Tata Coffee are in Pollibetta, in the Southern part of
Coorg. The company owns 19 coffee estates and 7 tea estates located in the districts of
Coorg, Hassan and Chickmagalur, including one recently acquired coffee estate and five tea
gardens in the Annamallais region of Tamil Nadu. The coffee grown on these estates are
naturally grown, in a mixed shade of two tiers. The plantation's head office is at Pollibetta,
Coorg, Karnataka.
Instant Coffee
Tata Coffee has two Instant Coffee manufacturing facilities, one at Toopran near Hyderabad
and the other at Theni near Madurai in Tamil Nadu. The combined installed capacity of these
two plants is 6500 metric tonnes.
Corporate office
The company's marketing and corporate functions are based out of it's corporate office
located in Bangalore.
The company's shares are listed in the National Stock Exchange, Mumbai, Bangalore Stock
Exchange Ltd., Madras Stock Exchange and Hyderabad Stock Exchange.

Page 18

ENTERPRISE STRUCTURE
Enterprise structure is the option where new company is created. It consists of
following:
Company
Company Code
Plant
Storage Location
Purchase Organization
The SPRO IMG screen is shown in the figure

Click on Enterprise Structure

IMG SCREEN

Company
Overview screen

Page 19

COMPANY
In order to create a company, click on SPRO IMG Enterprise Structure
Definition Financial Accounting Define Company
Click on New Entries as shown above.
Fill the entries as described below:
Company

TCILTD

Company name

TATA COFFEE INDIA LIMITED

Company 2

CORPORATE OFFICE

Street

RAILWAY ROAD, KUMARA PARK WEST

PO Box

1234

Postal Code

560020

City

BANGALORE

Country

IN

Language Key

EN

Currency

INR

Enter the company details here

Once Company is created, Company Code is to be created.

Page 20

COMPANY CODE
Path: SPRO IMG Enterprise Structure Definition Financial
Accounting Edit, Copy, Delete, Check Company Code Edit Company
Code Data.
The Company Code Overview screen appears.
Click on new entries.
Enter the following details:
Company Code

CORG

Company Name

COORG COFFEE ESTATE

City

COORG

Country

IN

Currency

INR

Language

EN

Then fill the address as shown below.

Page 21

Company code overview screen

Click on Address box after filling

the company code details
Enter the company code details
here

Page 22

Enter the address of the

company code here

Similarly another code called ANAM and company name as ANAMALLAI

TEA ESTATE is created and the address details are entered.
Once Company Codes created, next plants are to be created for the company
codes. In this creation our objective is to create 5 plants for each company codes
PLANT
Path: SPRO IMG Enterprise Structure Definition Logistics
General Define, Copy, Delete, Check Plant Define Plant.
The plant overview screen appears as shown below.

Plant overview screen

Page 23

Click on new entries and Enter the following details.

Plant

TCC1

Name 1

COORG COFFEE PLANT 1

Name 2

TATA COFFEE INDIA LIMITED

Enter the address

New entries dialogue box for plant

definition

Enter the plant details and address of the plant as shown below

Page 24

Enter the plant details here

Enter the plant address

details here

Similarly other 4 plants for company code CORG in the name of the plant as
TCC2, TCC3, TCC4 and TCC5 are created and the address details are entered.
And also other 5 plants for company code ANAM in the name of the plant as
TCA1, TCA2, TCA3, TCA4 and TCA5 are created and the address details are
entered.
Once plants create, next step is to create Storage locations for both company
codes having 5 plants each. In this preparation our objective is to create 3
storage locations for each and every plant.

Page 25

STORAGE LOCATION
Path: SPRO IMG Enterprise Structure Definition Material
Management Maintain Storage Location.

Maintenance Initial Screen

T Code : OX09

Enter Plant here

Enter the plant code for which

storage location is to be
created

Enter the plant code and click ok. Then click on new entries and enter the
following details
Plant

TCC1

S Loc

TCS1, TCS2, TCS3

Description :

COORG SLOC 1, 2, 3

Page 26

Storage location overview screen

Enter Storage location details here

Similarly 3 different Storage locations for each and every plant is created.
Storage locations are:
TCS4, 5, 6

TCC2

TAS1, 2, 3

TCA1

TCS7, 8, 9

TCC3

TAS4, 5, 6

TCA2

TC10, 11, 12 TCC4

TAS7, 8, 9

TCA3

TC13, 14, 15 TCC5

TA10, 11, 12

TCA4

TA13, 14, 15

TCA5

Page 27

Once 30 storage locations are created, next objective is to create 1 common

purchase organization for every plant in one company code
PURCHASE ORGANIZATION
Path: SPRO IMG Enterprise Structure Definition Material
Management Maintain Purchase Organization.

Purchase overview screen

Enter the Purchase

Organization details here

Once New entries selected, enter the following details

Purchase Organization

TCPO, TAPO

Description

TATA COFFEE PO

Page 28

CONCLUSION
Thus a company called Tata Coffee India Limited is created under
which two company codes created in the name Coorg coffee estate and
Anamallai tea division.
5 Plants are created for each and every company code in the name of
Coorg coffee plant 1, 2, 3, 4, 5 and Anamallai tea division 1, 2, 3, 4, 5.
3 Storage Locations are created under each and every plant.
1 common purchase organization is created for each company code in the
name of Tata coffee PO.

Page 29

ASSIGNMENT
Generally assignment is an option in which Company code is assigned to
company , plant is assigned to company code, purchase organization is assigned
to company code and purchase organization is assigned to plant.
1. Assigning Company Code to Company
Path: SPRO --> IMG --> Enterprise Structure --> Assignment --> Financial
accounting --> Assign Company Code to Company.
Assign Company code overview dialogue box appears

Assign Company code overview

dialog box

Once the dialogue box appears click on Position tab as shown above.
Once the position tab is clicked, it will ask for Company code. Enter the
company code as CORG and click ok.
The company code will come into the table and it will ask for the company to
which the company code is to be assigned. Give TCILTD as company and
save.
The assignment of company code to company process is shown below

Page 30

Enter Company Code here

Enter Company here

Once the Company code CORG is assigned to company TCILTD click save
then the same process for assigning the company code ANAM to the company
TCILTD is done.

Page 31

2. Assigning Plant to Company Code

Once the company codes are assigned to the company, the next objective is to
assign the plant to company code.
Path: SPRO --> IMG --> Enterprise Structure --> Assignment --> Logistic General --> Assign Plant to Company Code.
Plant assignment to company code overview dialogue box appears as shown
Click on new entries and enter the Company codes and Plant codes
respectively so that each plant will get assigned to that particular company.
COMPANY CODE

PLANT
TCC1
TCC2
CORG
TCC3
TCC4
TCC5
TCA1
TCA2
ANAM
TCA3
TCA4
TCA5
Once the company codes are assigned to the plant click on save.

Page 32

Plant assignment to company code

overview dialogue box
T Code : OX18

Overview of added entries

3. Assigning Purchase Organization to Company Code

Once the plant is assigned to Company code click save and our next objective is
to assign Purchase Organization to Company Code.
Path: SPRO --> IMG --> Enterprise Structure --> Assignment --> Material
Management --> Assign Purchase Organization to Company code.
Assign Purchase Organization to Company code overview dialog box appears
Click on Position tab , it will ask for purchase Organization. Enter Purchase
organization as TCPO and enter the company code as CORG and click save.

Page 33

Assign Purchase Organization to

Company code overview screen

Enter Purchase Organization here

Page 34

Enter Company Code here

Once it is assigned click save and the same process for Purchase Organization
TAPO to company code ANAM is repeated and click save.
4. Assigning Purchase Organization to Plant
After assigning purchasing organization to company code, our next objective is
to assign Purchase Organization to Plant.
Path: SPRO --> IMG --> Enterprise Structure --> Assignment --> Material
Management --> Assign Purchase Organization to plant.
Assign Purchase Organization to plant overview screen appears, click on new
entries and assign purchase organization to plants
PURCHASE ORGANIZATION

TCPO

TAPO

PLANT
TCC1
TCC2
TCC3
TCC4
TCC5
TCA1
TCA2
TCA3
TCA4
TCA5

Page 35

Assign Purchase Organization to

Plant Overview Screen

Enter Plant here

Enter purchase organization here

Once the Purchase Organization is assigned to plant click on save.

The Final layout of the assigned organization is shown below:

Page 36

TCILTD
ANAM

CORG
TCS2

TAS2

TCS3

TCC2
TCC3
TCC4

TCS4
TCS5
TCS6
TCS7
TCS8
TCS9
TC10
TC11
TC12

TCC5

TC13

PURCASE ORGANIZATION : TCPO

TAS1

PURCHASE ORGANIZATION : TAPO

TCC1

TCS1

TAS3
TAS4
TAS5

TCA2

TAS6
TAS7
TAS8

TCA3

TAS9
TA10
TA11

TCA4

TA12
TA13

TC14

TA14

TC15

TA15

Page 37

TCA1

TCA5

Once all assigned, the standard data is copied to plant and company code
respectively.
Path: SPRO --> IMG --> Enterprise Structure --> Definition --> Logistics General --> Define, Copy, Delete, Check Plant --> Copy plant.
Organizational object plant screen opens. It will ask for from plant and to plant.
Enter the details From plant : 2000 To plant : TCC1 and click ok.

Enter From Plant here

Enter To Plant here
T Code : EC02
;

Page 38

Thus plant 2000 data is copied to plant TCC1. Click Save and the same
procedure is repeated for all other 9 plants.
Next is to copy the standard data to Company Code CORG and ANAM
Path: SPRO --> IMG --> Enterprise Structure --> Definition --> Financial
Accounting --> Edit, Copy, Delete, Check Company Code --> Copy Company
code.
Organizational object company code screen opens. It will ask for from cc and to
cc. Enter the details From cc : 2000 To cc : CORG and click ok.

Page 39

Enter From company code

here

Enter To company code here

T Code : EC01

Page 40

Page 41

Change Currency from INR to GBP

here

Once the standard data is copied to Company code CORG, the same procedure
for the company code ANAM is done.

Page 42

MASTER DATA MANAGEMENT

Master data management is the process which contains
Material Master
Vendor Master & Info record
MATERIAL MASTER
Material master is the process in which the creation of material is done.
In this process, our objective is to create 5 new material.
Path: SAP --> Material Management --> Material Master --> Material -->
Create - General.
Create material Initial screen appears.
Enter the industry sector as Mechanical Engineering and the Material type as
Raw Material.
Once the material type is given, select the views Basic Data1, 2, Purchasing,
Purchase Order text, General Plant Data/Storage 1, 2 and Accounting 1.
Click ok then organization level screen opens. Enter Plant as TCC1 and storage
location as TCS1 and click ok. Enter the following details
Basic unit of measure

EA

Material Group

00104

Gross Weight

50

Net Weight

50

Weight unit

KG

Material

1477, WHEEL - Basic Data 2

Purchasing Group

001

Purchase Order Text

WHEEL

Price Unit

600

Standard Price

500

Basic Data 1

- Purchasing

Accounting 1

Page 43

Select Industry Sector here

Select Material Type here

T Code : MM01

Select Views Screen

Page 44

Enter Plant here

Enter Storage Location here

Organization level screen

Select Material Group here

Select Basic Unit of Measure here

Enter Gross Weight here
Enter Net Weight here
Basic Data 1 Screen

Page 45

Enter the Material Name here

Basic Data 2 Screen

Enter Purchasing Group here

Purchasing Screen

Page 46

Enter Purchase Order Text here

Purchase Order Text Screen

Select Valuation Class here

Enter Price Unit here

Enter Standard price here

Accounting 1 Screen

Page 47

Material 1477 Created

Similarly other 4 materials in the name as 1478, 1480, 1481 and 1482 is created
with various price and weights and click save. Material Group for 1480 , 1481
& 1482 is R1121
VENDOR MASTER
Vendor master is the process in which new vendor is created.
Path: SAP --> Logistics --> Material Management --> Purchasing --> Master
Data --> Vendor --> Central.
Create Vendor Initial Screen appears. Enter the following details.
Vendor

2310

Company Code

CORG

Purchasing Organization :

TCPO

Account Group

0001

Enter the address details in address box and click ok.

Enter Recon account no as 62110 and cash management group as A1 and enter
Pay terms as 0001 and click enter. The vendor 2310 will be created.

Page 48

Similarly other 2 vendors in the name of 2311 & 2312 is created for TCPO and
2 vendors in the name of 2313 & 2314 is created for TAPO and saved.

Enter Vendor code here

Enter Company Code here

Enter Purchasing Organization here

Enter Account Group here

Create Vendor : Initial Screen

T Code : XK01

Enter Vendor Address Details here

Page 49

Enter the Recon account no here

Enter the Cash Management group

here

Enter the Pay terms here

Page 50

Enter the order currency here

Vendor 2310 is created

Once the vendors created, our next objective is to assign info record for the
materials and vendors which were created.
To do info record Enter T Code as ME11. Create Info Record Initial Screen
appears. Enter the following details
Vendor

2310

Material

1480

Purchasing Organization :

TCPO

Plant

TCC3

Page 51

Enter Vendor here

Enter Material here

Create Info Record: Overview Screen

Enter Purchase Organization here

Enter Plant here

T Code : ME11

Enter the Reminder Periods here

Page 52

Enter Delivery Time here

Enter Purchasing Group here

Enter Standard Quantity here

Enter Net Price here

Info Record Created

Similarly the Info Records are created for other 4 materials by providing their
respective Vendors , Purchasing Organization and Plant.
Once Info records has been created, Every materials should be copied to each
and every plants and every vendors. To assign the materials to different plants,
Enter the T Code as MM01 and enter the material number 1477 and click Enter.
The Organization level dialog box appears. Enter Plant as TCC1 and enter
storage location as TCS2 and click enter for 3 to 4 times. the material 1477 will
be assigned to storage location TCS2 .

Page 53

Enter Plant here

Enter Storage Location here

Similarly assign all the materials to all the plants and storage location and click
save.
TCS1 S2 S3 - TCC1
TCS4 S5 S6 - TCC2
1477,1478, 1480, 1481, 1482

TCS7 S8 S9 - TCC3
TC10 C11 C12 - TCC4
TC13 C14 C15 - TCC5
TAS1 S2 S3 - TCA1
TAS4 S5 S6 - TCA2

1477,1478, 1480, 1481, 1482

TAS7 S8 S9 - TCA3
TA10 A11 A12 - TCA4
TA13 A14 A15 - TCA5

Once all the materials are assigned, Info records are created for each and every
assignment which is done above .

Page 54

CONCLUSION
5 different Materials are created in the name 1477, 1478, 1480, 1481 and
1482.
5 different Vendors are created in the name 2310, 2311, 2312, 2313 and
2314.
Each and every material is assigned to each plant and each storage
locations.
Each and every plant and storage material which is assigned with every
material is assigned with every vendors.
Info Records are created for each and every assigned materials and
vendor.

Page 55

PURCHASING
Purchasing is the process menu which contains the following
Request for Quotations
Purchase Requisitions
Purchase Orders
REQUEST FOR QUOTATION
Request for quotation is a process in which Purchase Organization will ask for
quotation for different materials to different vendors.
Path: SPRO IMG Material Management RFQ/Quotation Define
Document type.
Copy the standard RFQ type AN and enter as TATA and enter the description
as RFQ TATA. Click Save.
Next step is click on Define Number Ranges Change Intervals New
Interval. Enter the Number range from 1 to 100 in the name of the interval as 31
and click save.
Once the number ranges are created, go back to document type and enter the
NoRgeInt as 31 and click save.
Now the next step is to create a RFQ. Enter T Code as ME41. Create RFQ
Initial screen appears. Enter the following details.
RFQ Type

TATA

Language Key

EN

RFQ Date

22.07.2013

Quotation Dead Line

25.07.2013

Purchase Organization

TCPO

Purchase Group

001

Coll No

123457

Page 56

Enter the material as 1480, 1481 and 1482 and enter the Quantity in the table
provided for it. Then click on vendor address box. Enter the vendor code to
which you are asking for quotation and click save. RFQ number will be created.
The Screen shots are shown below:

Page 57

Enter the name of RFQ type here

Page 58

Page 59

New Intervals Screen

Page 60

Enter RFQ Type here

Enter RFQ Date here
Enter Quotation
Deadline here

T Code : ME41

Enter P Org here

Enter P group here

Enter Coll No here

Page 61

Enter Material here

Enter RFQ Quantity here

Enter Vendor here

Page 62

RFQ Created

Page 63

Once RFQ is created, next step is to maintain RFQ. To do this Enter the T Code
as ME47 and enter RFQ number as 1 (Number which we created) and click
enter. The RFQ details will get displayed. Enter the Net price for each and every
material and click save. Similarly the same process is repeated for RFQ number
2.
Once the net price is given, next step is to do price comparison. Price
Comparison is the process in which Materials Price difference between vendors
can be compared in order to decide which vendor is to be maintained.
In order to do this, enter the T Code as ME49 and click enter. Price Comparison
list dialog box opens. Enter the following details.
Purchasing Organization :

TCPO

Quotation

1 to 2

Vendor

2310 to 2311

Click enter, the price comparison result will be displayed indicating the
percentage of acceptance and ranking of acceptance.
The Screen shots are shown below:

Page 64

Enter RFQ number here

T Code : ME47

Maintain Quotation: Initial Screen

Enter Net Price here

Page 65

Enter Purchasing Organization here

Enter Quotation number range here
Enter Vendor range here

T Code : ME49

Price Comparison List Screen

Price Comparison List Result Screen

Once Request for Quotation is completed, next step is to create Purchase

Requisition.

Page 66

PURCHASE REQUISITION
Purchase Requisition is a process in which a plant gives request for purchasing
to purchase organization.
Path: SPRO IMG Material Management Purchasing Purchase
Requisition Define Document Type.
Document Types Purchase requisition Change screen occurs.
Choose NB and click Copy As icon and enter the name as TATA and click
save.
Once the document is copied, click on Define Number Ranges. Then Click on
Change Interval in which click new interval, Enter the number range from 1 to
100. Enter the number as 05 and click save.
Once Intervals are assigned, go back to document type and enter the NoRgeInt
as 05 and click save.
Once Document types are assigned, Next step is to create a Purchase
Requisition. In order to do that, go to SAP Menu Material Management
Purchasing Purchasing Requisition Create
Change Purchase Requisition standard to Purchase Requisition TATA and
enter the following details.
MATERIAL
1477
1478
1480
1481
1482

PLANT
TCC1
TCC1
TCC1
TCC1
TCC1

STORAGE LOCATION
TCS1
TCS1
TCS1
TCS1
TCS1

Enter Various Quantities and delivery dates for every material and click save.
Similarly another set of Purchase Requisition is created with same material but
different quantities.

Page 67

Click Copy As

Click this

Enter Purchase Requisition

Type Description here
Enter Purchase
Requisition Type here

Page 68

Enter Number Range here

Page 69

Change NoRgeInt here

Change Purchase Requisition Type

here

T Code : ME51N

Page 70

Enter Materials here

Purchase Requisition Created

Once Purchase Requisition created, next step is to create Purchase Order.

PURCHASE ORDER
Purchase Order is a process in which an order for purchase is given by the
Purchase Organization to the vendors.
Path: SPRO IMG Material Management Purchasing Purchase Order
Define Document Type.
Document Types Purchase order Change screen occurs.

Page 71

Choose NB and click Copy As icon and enter the name as TATA and click
save.
Once the document is copied, click on Define Number Ranges. Then Click on
Change Interval in which click new interval, Enter the number range from 101
to 200. Enter the number as 32 and click save.
Once Intervals are assigned, go back to document type and enter the NoRgeInt
as 32 and click save.
Once Document types are assigned, Next step is to create a Purchase Order. In
order to do that, go to SAP Menu Material Management Purchasing
Purchasing Order Create
Change standard PO to Standard PO TATA and enter the following details.
Purchase Organization :

TCPO

Purchasing Group

001

Company Code

CORG

In the hierarchy menu, select My Purchase Requisition. The Purchase

Requisition which we created gets displayed. Select the Purchase Requisition 1
in the hierarchy menu and click Adopt. The Purchase requisition 1 details will
get enter into the Purchase Order tables. Enter the Net Price for the materials
and click save.

Page 72

Click Copy As here

Select NB here

Enter PO type and

description here

Page 73

Enter Number Range here

Enter NoRgeInt here

Page 74

Enter Purchasing Organization &

Company Code here

Page 75

Purchase Order Created

In order to view stock of material in warehouse, enter the T Code as MB52

Display Warehouse Stock of Material Screen appears. Enter the Following
details
Plant

TCC1

Storage Location :

TCS1

Click Execute.
The Warehouse stock of material is displayed.
Initially there will no stock of materials found before the goods acceptance.

Page 76

T Code : MB52
Display Warehouse Stocks of
Material Screen

Enter Plant and Storage Location

here

Page 77

Display Stock of Material Screen

CONCLUSION
Request for Quotation is created under the RFQ Type TATA and
quotation is asked between two vendors 2310 & 2311.
Price comparison is done between two vendors for the materials 1480,
1481 & 1482.
2 Purchase Requisition created for all the materials with various
quantities under the number 1 & 2.
2 Purchase Orders created for the 2 Purchase Requisition under the
number 101 & 102.
Stock of Materials is displayed.

Page 78

INVENTORY MANAGEMENT
In a business accounting context, the word inventory is commonly used to
describe the goods and materials that a business holds for the ultimate purpose
of resale (or repair). Inventory management is mainly about identifying the
amount and the position of the goods that a firm has in their inventory.
Inventory management is imperative as it helps to defend the intended course of
production against the chance of running out of important materials or goods.
Inventory Management undergoes following process.
Goods Receipt.
Goods Issue.
Return Delivery.
GOODS RECEIPT
Goods Receipt is the good received from the vendor on the basis of
purchase order created.
Before doing goods receipt, stock of materials is viewed.
In Order to do this, enter the T Code as MB52 and enter the following details
Material

100 100

Plant

2000

Storage Location :

0001

Click Execute. The stock of material is displayed.

Once Stock of material is viewed, next step is to do goods receipt.
In Order to do this, enter the T Code as MB1B. Goods Receipt Purchase Order
screen appears. Enter the purchase Order number as 4500017176 and click
execute. Enter Document date as 30.11.2006 and Posting date as 30.12.2006.
Click Save once the dates has been entered. The goods have been accepted for
which material document is created. Material Document No: 5000011992.
In order to verify that, go back to display stock of material (MB52) and enter
the plant, material & storage location and click execute. The amount of stock
present is been displayed.
Page 79

Enter Material here

Enter Plant here

Enter Storage Location

here

T Code : MB52

Amount of Material is
been displayed.

Page 80

Enter Purchase Order

Number here

Enter Document Date here

Enter Posting Date here

T Code : MIGO

Display Warehouse Stocks of

Material

Page 81

RETURN DELIVERY
Return delivery is the process of returning the stock to a vendor with a valid
reason for movement like damaged piece etc.
In Order to do this, enter the T Code as MB52 and choose Return Delivery and
Material Document from drop down box. Enter the Material Document in the
space provided. Material Document No: 5000011992.
Click Execute. The Material document displayed. In the Quantity menu, enter
the amount of material should be returned. In the Where menu enter the
reason for movement as 0003 and click Item OK and click save.
Once the goods returned, to verify that go back to MB52 and enter the details as
said above.

Enter Material Document Number

here

Page 82

Material Document created

Page 83

Amount of material is displayed

CONCLUSION
Goods Receipt is done from the Purchase order created.
Return Delivery is done.

Page 84

STOCK TRANSFER, TRANSFER POSTING

TRANSFER POSTING
Transfer Posting is a process of migration of stock inside storage location to
various parts like Unrestricted, Quality and Blocked is called as Transfer
Posting. In order to do transfer posting, enter T Code as MB1B.
Enter Transfer Posting Initial screen occurs. Enter the document date and
posting date. Enter the movement type as 344 (Movement of material from
unrestricted path to blocked), Plant 2000 & Storage Location 0001.

Enter Posting Date here

Enter Document Date here

Enter Movement Type here

Enter Plant & Storage Location

here

Enter Transfer Posting: Initial Screen

T Code : MB1B

Once Movement type, plant and storage location is created click enter.
Collective Processing screen appears. Enter the material as 100 100 and enter
the quantity as 10. It means the amount of 10 material 100 -100 is been transfer
from unrestricted to blocked path in plant 2000 and storage location 0001.
In order to verify the amount of stocks, enter the T Code as MB52.

Page 85

Enter Quantity here

Enter Material here

Document Posted

Page 86

Unrestricted Stock

Blocked Stock

Display Warehouse Stocks of

Material.
T Code : MB52

STOCK TRANSFER
Stock transfer is a process of migration of stocks from one storage location to
another. Before doing the stock transfer process, View the stock in both storage
location for which stock transfer is to be done. In order to do this, enter the T
Code as MB52 and enter the material as 1300 260. Use Storage Locations
0001 & 0002 in plant 2000.

Page 87

Storage
Location

Material

Material Amount
T Code : MB52

Storage
Location

Material

Material Amount

In order to do transfer posting, enter T Code as MB1B.

Enter Transfer Posting Initial screen occurs. Enter the document date and
posting date. Enter the movement type as 311 (Movement of material from one
storage location to another from unrestricted path to unrestricted), Plant 2000 &
Storage Location 0001.

Page 88

Enter Posting Date here

Enter Document Date here

Enter Movement Type here

Enter Plant & Storage

Location here

Enter Receiving Storage

Location here
Enter Quantity here

Enter Material here

Once Movement type, plant and storage location is created click enter.
Collective Processing screen appears. Enter the material as 1300 260 and enter
the quantity as 10. Enter the Receiving Storage Location as 0002. It means the
amount of 10 material 1300 -260 is been transfer from unrestricted to
unrestricted path in storage location 0001 to 0002 in plant 2000.
In order to verify the amount of stocks, enter the T Code as MB52.

Page 89

Document Posted

Storage Location

Material

Material Amount
T Code : MB52

Page 90

Storage Location

Material

Material Amount

CONCLUSION
Transfer Posting is done for Material 100 100 under the movement
type 344 in storage location 0001 and plant 2000.
Stock Transfer is done for material 1300 260 under the movement type
311 in plant 2000 between storage location 0001 and 0002.
Stocks of Material is displayed.

Page 91

PHYSICAL INVENTORY
Physical Inventory is a process of counting the actual stocks with notebook
stocks. Notebook stocks are the stocks which are entered in computer.
The procedure is explained below with a sample stocks created.
In order to do a physical inventory, the first step is to create a material. (Refer
Material Master Material Creation Procedure). Here the material is created in
the name of S100 with Industry Sector as Mechanical Engineering and the
Material Type as Raw Material.
Here the material is created for the plant 2000 and storage location 0001.
The Material Creation Screenshots are shown below:

Enter Material here

Select Industry Sector here

Select Material Type here

T Code : MMO1

Page 92

Select Views here

Enter Plant & Storage

Location here

Page 93

Enter Gross Weight & Net Weight

here

Page 94

Enter Purchasing Group Here

Enter Purchasing Order Text

Here

Page 95

Enter Valuation Class here

Material Created

Page 96

Once material is created, Info record is created for the material. (Refer Info
record procedure in Master Data Management).

Enter Vendor here

Enter Material here

Enter Purchasing
Organization here
Enter Plant here

T Code : ME11

Enter Reminder
Periods here

Page 97

Enter Purchase Delivery time here

Enter Purchasing group here

Enter Standard Quantity here

Enter Minimum Quantity here

Info Record Created

Physical Inventory process procedure is described below:

Path: SAP Menu Logistics Material Management Physical Inventory
Create Physical Inventory.
Create Physical Inventory Initial Screen occurs. Enter the following details
Plant

2000

Storage Location :

0001

Document Date

11.11.2006

Page 98

Posting Date

12.12.2006

click enter.

Enter the Document date &

Posting date here

Enter Plant & Storage Location

here

T Code : MI01

Material

S100

Click Save. Physical Inventory document created.

Page 99

Enter Material here

Physical Inventory document

Created.

Page 100

Before Proceeding to Inventory count, First step is to display stock materials in

warehouse. In order to do this, enter the T Code as MB52.
Display Warehouse Stocks of Material screen appears. Enter the following
details.
Material

S100

Plant

2000

Storage Location :

0001

Click Execute. Stock of materials is displayed.

Enter Material, Plant & Storage

Location here

T Code : MB52

Display Warehouse Stocks of

Material Screen

Page 101

Next step is to Enter Inventory Count.

Path: SAP Menu Logistics Material Management Physical Inventory
Inventory Count.
Enter Inventory Count Initial screen occurs. Enter the following data.
Physical Inventory Doc :

100001170

Count Date

12.12.2006

Click Enter. Collect processing screen appears displaying the material which we
have entered. Enter the Quantity

Page 102

Enter Physical Inventory

Document here
Enter Count Date here

Enter Inventory Count : Initial Screen

T Code : MI04

Enter Quantity here

Page 103

Count Entered

Once Inventory Count is created, next step is to Post Inventory Difference. In

order to do this, do the following step.
Path: SAP Menu Logistics Material Management Physical Inventory
Post Difference.
Post Inventory Difference initial screen occurs. Enter the following details.
Physical Inventory Document :

100001170

Posting Date

12.12.2006

Click Enter
Inventory difference is posted.
Click Save. Inventory difference is posted with material document created for
additional material. Material Document number is 4900035501
Once Inventory difference is saved, material document 4900035501 is viewed
by entering the T Code as MB03.

Page 104

Enter Physical Inventory Document here

Enter Posting date here

Post Inventory Difference: Initial Screen

T Code : MI07

Difference Quantity posted

here

Page 105

Physical Inventory Document saved with

Material Document created

Enter Material Document here

Display Material Document: Initial Screen
T Code : MB03

Page 106

Material Document displayed

CONCLUSION
Actual Stocks are counted and compared with Notebook stocks.
Material document is created for added amount of stocks which found
when the difference in inventory is posted.

Page 107

EXTERNAL SERVICE MANAGEMENT

External Service Management is the process of creating a service organization.
Service organization consists of service category, service master, service PO
and service entry sheet.
SERVICE ORGANIZATION
Path: SPRO IMG Material Management External Service Management
Service Master Create Organizational status to service categories.
Organization Service category overview screen appears. Copy AS01 and enter
the type as TCIL and enter the description as TCIL Basic Data and click save.
Once the service organization is created, next step is to create service category.

Page 108

Organizational Service Category

Overview screen

Enter the description here

Enter the type here

SERVICE CATEGORY
Path: SPRO IMG Material Management External Service
Management Service Master Define Service Category.
Service Category Overview screen appears. Click on New Entries and enter the
following details.
Service Category

Service Category Description

TCL1

Electrical Service

TCL2

Engineering Service

Page 109

Service Category overview

screen

Enter Service Category

description here
Enter Service Category here

Once service category is created click save. Next step is to create number ranges
for service category. In order to do this, enter the following path.
Path: SPRO IMG Material Management External Service Management
Service Master Define Number Ranges. The intervals screen appears.
Click Maintain Groups menu. Maintain Group number ranges screen appears.
Go to groups menu and select insert groups and enter the text and number range
for a group and click save. Once the number range is saved, assign the number

Page 110

range with the service category. Once it is done, next step is to create service
master.

Page 111

Enter Text here

Enter Number Ranges here

Page 112

SERVICE MASTER
Path: SAP Menu Logistics Material Management Service Master
Service Service Master. Display Service screen appears. Click Create new
service master. Enter the following details.
Text

MONTHLY WIRING SERVICE

Service Category

ELECTRICAL SERVICE

Basic Unit of Measure

EA

Similarly 2 other various service is created under the name Monthly Voltage
Inspection and Meter Service. Similarly 3 other various service is created in
the name as Gear Service, Chain Service and Monthly Oil Inspection under
the service category Engineering Service.

Page 113

Display Screen
T Code : AC03

Page 114

Enter Text here

Enter Service Category here

Enter Basic Unit of Measure
here

Once the service master is created, Next step is to create Service PO (Refer
Purchase Order creation in purchasing).

Page 115

Enter PO description
here

Enter PO type here

Enter Number range

here

Page 116

Enter NoRgeInt here

In Service PO enter the Item category as D and Account category as K and short
text as Electrical Service. Enter the Service assistance No as 101, 102 and 103
in the table provided. Enter the Cost Center as 2 -1000 and click Save.
Similarly create another PO in the name as Engineering Service and service
assistance no 104, 105 and 106.

Page 117

Enter Short Text here

Select Cost Centre here

Enter Service Assistance No here

T Code : ME21N

PO Created

SERVICE ENTRY SHEET

Service Entry Sheet is the Service acceptance in which the service PO is
accepted. In order to do this, enter the T Code as ML81N. Service entry sheet
appears. Click on Other Purchase Order menu and give the PO number as 1 and
click enter. Click on new entry sheet. Enter the short text as Electrical Service
Acceptance.

Page 118

Service Entry Sheet screen

T Code : ML81N

Select PO number here

Once short text is written, enter the service assistance and adopt full quantity
and click accept. Once the accept flag is selected, click on save. Service entry
sheet will be saved and service will be accepted.

Page 119

Enter Short Text here

Enter Service assistance here

Service Entry Sheet accepted

CONCLUSION
1 Service Organization is created.
2 Service Category is created for the service organization.
3 Service master is created for each service category.
Domestic Service PO is created.
2 PO is created. Each PO has 3 services.
Service Entry sheet is done and accepted.

Page 120