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 S | Stock | GR/IR | Vendor | Income from price differences | Expense from price differences |
| GR (PO price = valuation price) | Debit | Credit | |||
| GR (PO price > valuation price) | Debit | Credit | Debit | ||
| GR (PO price < valuation price) | Debit | Credit | Credit | ||
| IR (invoice price = PO price) | Debit | Credit | |||
| IR (invoice price > PO price) | Debit | Credit | Debit | ||
| IR (invoice price < PO price) | Debit | Credit | Credit |
| Price Control V | Stock | GR/IR | Vendor | Income from price differences | Expense from price differences |
| GR | Debit | Credit | |||
| IR (invoice price = PO price) | Debit | Credit | |||
| IR (invoice price > PO price & stock quantity >= invoice quantity ) | Debit | Debit | Credit | ||
| IR (invoice price > PO price & stock quantity < invoice quantity) | Debit | Credit | Debit | ||
| IR (invoice price < PO price & stock quantity >= invoice quantity) | Credit | Debit | Credit | ||
| IR (invoice price < PO price & stock quantity < invoice quantity) | Debit | Credit | Credit |
Material Document
1. Material document number
2. Year
Accounting Document
1. Company code
2. Accounting document number
3. Fiscal year
Planned Delivery Costs
| Price Control S | Stock | GR/IR | Vendor | Freight clearing | Expense from price differences |
| GR | Debit | Credit | Credit | Debit | |
| IR | Debit | Credit | Debit |
| Price Control V | Stock | GR/IR | Vendor | Freight clearing |
| GR | Debit | Credit | Credit | |
| IR | Debit | Credit | Debit |
Unplanned Delivery Costs
| Price Control S | Stock | GR/IR | Vendor |
| GR | Debit | Credit | |
| IR | Debit | Credit |
| Price Control V | Stock | GR/IR | Vendor | Expense from price differences |
| GR | Debit | Credit | ||
| IR (PO price + unplanned delivery costs & stock quantity >= invoice quantity ) | Debit | Debit | Credit | |
| IR (PO price + unplanned delivery costs & stock quantity < invoice quantity) | Debit | Credit | Debit |
| Price Control S | Stock | GR/IR | Vendor | Expense from price differences |
| GR (PO price) | Debit | Credit | ||
| IR(PO price + unplanned delivery costs) | Debit | Credit | Debit |