SAP MM

External Procurement Process
1. Determination of requirements
2. Determination of supply source
3. Vendor selection
4. Purchase order processing
5. Purchase order monitoring
6. Goods receipt
7. Invoice verification
8. Payment processing

Stock Transport Order
1. Create stock transport order for receiving plant
2. Post goods issue from supplying plant
3. Post goods receipt for receiving plant
4. Stock transferred from stock in transit to unrestricted use

Subcontracting
1. Create subcontract purchase order
2. Transfer posting of components to stock of material provided to vendor
3. Post goods receipt with consumption of components posted

Vendor Consignment
1. Create consignment order
2. Post goods receipt
3. Goods withdrawal followed by credit memo

Organizational Structure
1. Client
2. Company code
3. Plant (unique in client)
4. Storage location (not unique in client)
5. Purchasing group
6. Purchasing organization
a. Plant specific purchasing organization – assign purchasing organization to company code and assign purchasing organization to plant
b. Cross-plant purchasing organization – assign purchasing organization to company code and assign purchasing organization to plants
c. Cross-company purchasing organization – no assignment

Purchase Order
Create with reference
1. Purchase order
2. Purchase requisition
3. Quotation
4. Contract
Hold Purchase Order
1. Cannot print message output
2. Cannot release approval
3. Cannot post goods receipt
4. Cannot post invoice
Park Purchase Order
1. Cannot post goods receipt
2. Cannot post invoice

Goods Receipt
Movement type – determines stock or consumption account

Invoice Verification
Create with reference
1. Purchase order number
2. Delivery note number
3. Bill of lading number

Vendor Master
Account group
1. Partner roles
Block
1. MK05
Control
1. Automatic purchase order

Material Master
Storage Location
1. Mass maintenance – MMSC
2. Create automatically

Pricing Conditions
1. Conditions in contract
2. Conditions in purchase info record
3. General conditions
Types
1. Absolute
2. Percentage
3. Quantity-dependent

Request for Quotation/Quotation (same document)
Create with reference
1. Request for quotation
2. Purchase requisition
3. Outline agreement
Collective number
Price comparison

Purchase Info Record
1. Standard
2. Subcontracting
3. Pipeline
4. Consignment
Create with reference
1. Quotation
2.Purchase order
3. Outline agreement
Info Update
1. Quotation – conditions transferred to purchase info record
i. No update
ii. A – update with/without plant if exists; create if not exist
iii. B – update with plant if exists; create with plant if not exist
iv. C – update without plant if exists; create without plant if not exist
2. Purchase order (contract release order or scheduling agreement) – document and item updated as last document
i. No update
ii. Update
a. Purchase info record exists – update
b. No purchase info record and plant level required – create with plant without condition
c. No purchase info record and plant level not required – create without plant without condition
3. Contract – creates purchase info record with condition if one does not exist
i. No update
ii. A – update with/without plant if exists; create if not exist
iii. B – update with plant if exists; create with plant if not exist
iv. C – update without plant if exists; create without plant if not exist

Price Determination
1. Purchase info record at purchasing organization/plant level
a. Valid pricing condition
b. Price from last purchase order
i) Conditions always copied
ii) Conditions not copied if price entered manually
iii) Conditions never copied
2. Purchase info record at purchasing organization level
a. Valid pricing condition
b. Price from last purchase order
i) Conditions always copied
ii) Conditions not copied if price entered manually
iii) Conditions never copied
3. Manual entry

Material Valuation
Price control
1. S (standard price)
a. Goods receipt
i. Debit stock account
ii. Credit GR/IR account
iii. Debit expense from price difference account if purchase order price is greater than valuation price; credit income from price difference account if purchase order price is less than valuation price
b. Invoice receipt
i. Debit GR/IR account
ii. Credit vendor account
iii. Debit expense from price difference account if purchase order price is greater than valuation price; credit income from price difference account if purchase order price is less than valuation price
2. V (moving average price)
q. Goods receipt
i. Debit stock account
ii. Credit GR/IR account

---

End page 196x