Purchase Order Layout Sets, Message Types

Create a new message types for a different layout of Purchase Order

• M/34 - Maintain message types
• Click the Partner definition button
• Insert the new message type to the Partner
• OMQN - Fined-tuned Message Control
• Add a new Printer Operation 1 - New 2 - Change
• OMFE - Layout sets for Purchase Order
• Attach the new message type to the new layout sets
• M/36 - Maintain message detemination schema : Purchase Order
• OMQS - Assign schema to Purchase Order
• OMGF - Assign Output devices to Purchasing Groups
• MN05 - Assign default Message Type to Purchasing Groups

Information Structure S012

In the SAP standard info structure S012 is updated by the Purchase Order creation date, not the Goods Receipt date. e.g. a Purchase Order is created in January and good receipt is in February and March, S012 will shows the values in period January.

• Transaction MC26
• Info structure S012 Update group (stats) SAP
• Double click on Goods received qty
• In the section Date field for period determination

Vendor Discount Condition

Automatic Discount for Vendor when creating Purchase Order

• Transaction M/06
• Double click on the Discount Condition you want to set e.g. R003
• In the Access Sequence type 0006 - Vendor Discount
• Save it and goto Transaction MEKE
• Enter the Vendor code you want to set and click execute
• Put your cursor on the Vendor Code and click Create
• Type in the Discount Rate and save it
• for larger vendor discount for larger quantity, click the Scales button

If you create your own condition table, you will not be able to use the standard transaction found in the menu Purchasing -> Master data -> Conditions (excluding Other). Instead, you used the transaction MEK1 (Other Condition) to maintain your condition type.

e.g. Transaction MEKE points to the program RM06K023

• In the program RM06K023, double click on the module SAPFM06K
• Click Edit -> Search/replace, type in 044 (condition table for vendor)
• Tick in program SAPFM06K

You can see that SAP hardcoded the standard condition table for the standard transaction found in the menu Purchasing -> Master data -> Conditions (excluding Other)

Puchase Order Condition

Suppose you want to calculate the GST and DISCOUNT for a Net Value of 1000.
Net value 1000
GST 10% of 1000 100
DISCOUNT 10% of 1000 100

Final Net value 900

This is what you do :-

• M/08 - Define calculation schema
• First check the conditions column Steps e.g. PB00 and PBXX belongs to step 1.
• Next check the last Steps after Actual Price
• Now, look at the column Fro To
• If you want the DISCOUNT to be calculated based on 1000, put the Steps number in the column Fro

The Fro To controls the calculation.

Define default values for buyers

Transaction OMFI

• Double click on the default values you want to change.
• Save it.
• Next, you've got to associate via SU01
• Click Parameters, insert a new parameter id EVO to the authorization code.
• Type in Parameters value you want e.g. 01
• You have to assign the control for ALL the SAP buyers via thier SAP users id.
• Logoff and login again. Then try to create a Purchase Order and check the default values.

In the Fast Processing button :-

• you can choose whether to adopt automatically all the line items fields in the Purchaes Requisitions.

Force buyers to create Purchase Order with ref. to a Pur. Req., Quotation or Pur. Ord.

Transaction OMET

• Create a new entry, give it a name and tick :-
• Ref. to PReq
• Ref. to P.O.
• Ref. to quotation
• Next, you've got to associate via SU01
• Click Parameters, insert a new parameter id EFB to the authorization code.
• Type in Parameters value you want e.g. XX
• You have to assign the control for ALL the SAP buyers via thier SAP users id.
• Logoff and login again. Then try to create a Purchase Order without a reference.

Purchasing Tax

ME12 - Purchasing Info Record -> In the Control Section, look for the field Tax Code

Maintaining the Tax Code :-

SM31 - Table T007A - Tax keys
Click Customizing

FTXP - Maintain Tax Code

Purchasing List for Open Purchase Order, Goods Receipt, Invoices

Open Purchase Order = Open Goods Receipts ( Selection parameters WE101)

This two parameters determined what information is shown:

• selection parameter
• scope-of-list parameter

The configuation transaction code is OMEM
You can define additonal selection parameter for your users as well as untick those fields which you does not want it to be printed.

Your can have the Purchasing Documents by :-

• ME2L - Vendor
• ME2M - Material
• ML93 - Service
• ME2K - Account Assignment
• ME2C - Material Group
• ME2B - Requirement Tracking Number
• ME2N - Purchase Order Number
• ME2W - Supplying Plant

Subsequent Adjustment (121)

You must post a subsequent adjustment to correct the goods issue posting when the vendor informs you after goods receipt that a greater or smaller quantity of the components was actually consumed than planned in the purchase order.

To do this, proceed as follows:

MB04 - Subcontracting Subsequent Adjustment
Fill in the Purchase Order Number and hit enter
Tick the checkbox of the components you want to adjust and click the Adopt button or press F5
Enter the quantity difference. If more of the components were consumed, enter a positive amount, if fewer were consumed enter a negative amount.
Finally, post the document.
After saving, the value of the goods receipt is recalculated to include the subsequent quantity.

Controlling the subcontracting to Vendor (541)

SAP system allows user to issue material to the vender through 541 movement type (transfer posting -MB1B) without refering to any purchasing document.

It's a standard SAP functionality which you can control in two ways:

1. Field settings : Change fields settings for 541 to include Purchase Order number field as mandatory in the screen. But, this is a weak control as you can enter a Purchase Order and send any material to vendor.

OMBW - double click 541 -> double click Material Management

2. Change the IMG settings for movement type 541 and remove the transaction code MB1B as allowed transaction code. Use ME2O only. If you want to issue excess material to vendor, you will have to change the Purchase Order components.

OMJJ - click the Select all button
Type 541 for the Movement Type
Click the Back button
Click Allowed Transactions
Delete transaction code for MB1B

The Subcon Process in SAP Purchasing Modules

Subcontracting Processing

When a main BOM item is a subcontract item (in the item category field of PO/PR line item, the value is "L"), then the system will automatically know that the sub items need to be issued out. Such issue, from the internal system processing view point, is only a transfer from one storage location to the subcontractor vendor storage location rather than a consumption. It will only be deemed a consumption when the parent item is received back from the vendor. The system will automatically track all the items sent to the vendor waiting to be receieved back.

The following are the pre-requisite procedure for handling subcontract items:

• When setting up the subcontracted parent item (material type HALB), the material master has a procurement type of "F" and special procurement of 30. The effect is that when the purchase requistion was created by MRP or manually, the item category will be "L".
• BOM items for the main part has been setup to contain all the materials which must be supplied FOC to the vendor.
• There is no need to setup the routing for the sub-contracted main item.

The following are subcontracted related procedures:

• Finding out what sub-items need to be issued to subcontractors and issue them.
• Finding out what sub-items have been issued to subcontractors and waiting to come back.
• Receiving subcontracting item (from the store viewpoint, there is no difference from normal receiving).
• Invoice processing : the invoice is only for the services and is no difference from normal processing.

Invoke transaction ME2O

• Leave the Date required, Material and Plant blank unless you wish to limit the listing to a specific area. Check the Only Negative available SC stocks if you only want to look at the cases where materials need to be handed to the subcontractor. If you do not check this, then items which have already been issued to the subcontractor and waiting to come back will also be shown.
• To issue the items to the subcontractor, select the item, then click Post goods issue button.
• Enter the storage location from which the sub-items is taken out, and the quantity given.
• If there is not sufficient on hand stock to be given to the subcontractor, then the system will issue a "0 items posted" message. If there is sufficient quantity, the system will transfer the quantity to the vendor storage location. On this screen, you can also check the on hand stock balance by clicking the stock overview and stock/requirement buttons. You may also palce the cursor on a PO number and display the PO details giving rise to this SC issuing requirement.

Subcontract Posting

Material Document
101 + Receive in the new Material after sub-contract
543 - Clear the quantity in Material Provision for Vendor

Accounting Document
Debit Inventory - New Part 150
Credit Inventory - Purchase Offset 150

Debit Service cost for sub-contract 50
Credit GR/IR - Inventory 50

Debit ROH - Material Consumed 100
Credit ROH - Material Consumed 100

Material Returns To Vendor Without Reference To Any PO

Assuming that you have some raw materials which have been in the store for some periods of time. A few months later, some were found to be faulty. So you need to return back the materials to your vendor but it does not relate to any particular PO.

Vendor Returns Without PO Reference

You can used Return Purchase Order, transaction code ME21N

At the item details, look for the Return columns and tick it.

MIGO_GR - Goods Receipt for Return Purchase Order
Movement type will be 161 to deduct the stock and 162 for reversal.
During Goods Receipt for Return Purchase Order, you do not have to change the movement type from 101 to 161 as the system will automatically assign the movement type to 161 upon saving the postings. However, before saving, check if there is a tick in the Return Column to ensure that it is a return Purchase Order.

Create a new Purchase Order Number range to differentiate
OMH6 - Define Number Ranges

Create a new Purchase Order Type to differentiate e.g ZB
OMEC - Define Document Type

Changing the PO Layout sets
OMFE - Messages: Output Programs

/: IF &EKKO-BSART& = 'ZB'.
/ RETURNED PURCHASE ORDER
: ELSE.
/ PURCHASE ORDER
/: ENDIF.

UB - Internal Purchase Order Process

Internal Purchase Order is known as Stock Transport Order in SAP. It is use when a company have multiple plants which purchase from each other.

1. Buying Plant create Purchase Order Type UB directly from ME21N or convert from MD04 during MRP run.

2. A requirement will be prompt by MRP in Selling Plant.

3. If there available stocks, Selling Plant will trasferred it to the designated storage location before Buying Plant can do a
receiving.

SAP Postings in 4.6x :-
Selling Plant Transfer via transaction code MB1B movement type 351 to transfer storage location.
Receiving Plant recieve it via transaction code MIGO_GR movement 101 transfer storage location.

351 - Transfer Posting by Selling Plant
MM documents
Stocks move from Selling Plant unrestricted to Buying Plants transfer in MMBE
In MMBE, double click Buying Plant and check the field stock in transit to check the stocks that were being transfer from
the Selling Plant

FI documents
Debit Buying Plant Inventory 999
Credit Selling Plant Inventory -999

101 - Goods Receipts by Buying Plant
MM documents
Stocks move from Buying Plant transfer to Buying Plant unrestricted in MMBE

No FI documents

Blocking Price Change in PO

I need to know how to block the price in a Purchase Order from being change on initial entry when the PO is with reference to an Outline Agreement (Contract) without blocking the ability to change the price for other types
of POs being entered. I have tried using Transaction OMF4 in configuration. But if I change for document type ME21 the Price and price unit to display only it changes it for all POs not just those that are created from contracts.

I think that the Invoice Verification component is part of the Materials Management (MM) system. It provides the link between the MM component and the Financial Accounting, Controlling, and Asset Accounting components.

Invoice Verification in Materials Management serves the following purposes:
- It completes the materials procurement process - which starts with the purchase requisition, continues with purchasing and Goods receipt and ends with the invoice receipt.
- It allows invoices that do not originate in materials procurement (for example, services, expenses, course costs, etc.) to be processed.
- It allows credit memos to be processed, either as invoice cancellations or discounts
Invoice Verification does not handle the payment or the analysis of invoices. The information required for these processes is passed on to other departments.
Invoice Verification tasks include:
- Entering invoices and credit memos that have been received
- Checking the accuracy of invoices with respect to contents, prices, and arithmetic
- Executing the account postings resulting from an invoice
- Updating certain data in the SAP system, for example, open items and material prices
- Checking invoices that were blocked because they varied too greatly from the purchase order
An example on how to enter an Invoice Receipts :-
Transaction code MRHR - MM Invoice Verification and Material Valuation

There are two ways to force close a PO:
1. You can set Delivery Completed Indicator in Purchase Order or at time of doing goods receipt. That simply means you cannot do further GR for that item. You can still process Open Invoices .
2. You can block material at purchase order level which means, you will not be able to do any GR , Invoice against that specific item in PO.
The recommended is the first option though.

Second option is used in case of : -
1. to cancel an item
2. An item is closed and can be archived

MEI1: Automatic purchasing document change.
MEI6: Delete purchasing document index.
ME52N: Change purchase REq.

Configure Goods/Invoice Receipts for PO in SAP

Goods Receipts/Invoice Receipts for Purchase Order

Transaction OMW1 allows you to set whether the Price Control is a mandatory "S" or "V".

V indicate that you want the system to value the stocks with the latest price.
S indicate that you want the system to value the stocks with a fixed price method.

Price Control V - Moving Average Price

Assume Material Master current price is 10

Goods Receipts for Purchase Order - Movement Type 101

• Material Document Posting created - inventory increases
• Accounting Document Posting created
• Debit 12345 Inventory 12
• Credit 67890 GR/IR 12
• New Moving Average Price = ( GR value + Total value ) / ( GR quantity + Total stock )

Invoice Recipts for Purchase Order - MR01

• Accounting Document Posting created
• Debit 67890 GR/IR 12
• Debit 12345 Inventory 3
• Credit 45678 Vendor 15
• New Moving Average Price = ( Inventory difference of 2 + Total value ) / ( Total Stock)

Price Control S - Standard Price

Material and Accounting Document is the same.
The one with the lower value will be posted with a price variance entry.

Goods Receipts for Purchase Order - Movement Type 101

• Material Document Posting created - inventory increases
• Accounting Document Posting created
• Debit 12345 Inventory 10
• Debit 23456 Price Variance 2
• Credit 67890 GR/IR 12
• No change in Standard Price

Invoice Recipts for Purchase Order - MR01

• Accounting Document Posting created
• Debit 67890 GR/IR 12
• Debit 23456 Price Variance 3
• Credit 45678 Vendor 15
• No change in Standard Price

General Ledger Account Configuration
Transaction OMWB - Automatic posting for inventory
Inventory posting BSX
Goods receipt/inv.receipt clearing acct WRX
Cost (price) differences PRD
Transaction XK03 - Account Payable Vendor Master
Tick Accounting info. and hit the Enter key
Field name Reconcil.acct 45678

Purchase Order List Configuration

In the MM purchasing module, SAP provides numerous standard reports which is more than enough for the most users to used. For e.g. ME2N

User Report Menu Path:

Logistics -> Materials Management -> Purchasing -> Purchase Order -> List Display

As a MM consultant, you have the flexibility of defining the fields that can be display on the list.

Followings are the step where you can configure the fields that are display on the report such as tcode ME2N

Configuration for List and Selection Parameters: Purchasing Lists - OMEM

Click the Scope of lists Button or the Selection parameters Button.

In the Scope of lists - double click on the Scope of lists

In the Selection parameters - double click on the Selection parameters