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- Pages: 142
[YEAR 2019]
USER MANUAL FOR PROCUREMENT CYCLE
FOR
USER MANUAL- Procurement Cycle
DOCUMENT RELEASE DETAILS
Prepared by
Designation
Reviewed By 1 1
Rajiv Sarkar N.K.Kumbhakar
Approved By
Date
Designation Designation
Date Date
Signature
Signature Signature
1
DOCUMENT REVISION DETAILS Document Name: Version No.:
PROCUREMENT CYCLE USER MANUAL 1.0
Revision
Page
Description
Action Taken
No. No. Date
Topic
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Table of Contents 1.
INTRODUCTION....................................................................................................................................4
2.
ORGANIZATION STRUCTURE...........................................................................................................6
3.
PROCUREMENT PROCESS OVERVIEW.........................................................................................8
4.
PROCUREMENT CYCLE STEPS.....................................................................................................11
5.
MASTER DATA MANAGEMENT......................................................................................................12
a.
Material Master Maintenance..........................................................................................................12
b.
Vendor Master Maintenance............................................................................................................38
6.
MATERIAL PROCUREMENT CYCLE..............................................................................................55
a.
Purchase Requisition........................................................................................................................55
b.
Purchase Order..................................................................................................................................70
c.
Creation of Contract..........................................................................................................................91
d.
Goods Receipt..................................................................................................................................102
7.
SERVICE PROCUREMENT CYCLE..............................................................................................107
a.
Service Purchase Requisition.......................................................................................................107
b.
Service Purchase Order.................................................................................................................119
c.
Service Entry.....................................................................................................................................130
8.
GOODS & SERVICE TAX(GST)......................................................................................................137
a.
GST Related Oragnisational Change..........................................................................................137
b.
GST Related Master Data Change................................................................................................138
c.
GST Related Process Change.......................................................................................................141
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1. INTRODUCTION SAP ERP
It is a packaged software integrates all business functionalities together. It saves time and cost in the process
SAP MM
Is a part of logistics area and helps to manage procurement activity of an organization supports all aspects of material management planning and control Other logistics module like Sales and distribution, Production Planning, Plant maintenance, Warehouse management are all obsessed with MM .
Features
SAP MM deals with material management and inventory management SAP MM ensures there is never a shortage of materials or any gaps in the supply chain process It deals with the Procurement Process, Master Data (Material & Vendor Master) , Account Determination & Valuation of Material, Inventory Management, Invoice Verification, Material Requirement Planning etc.
Types of Basic Procurement: 1. External vs Internal Procurement 2. Procurement for Stock vs Consumption External Procurement
It is the process of procuring goods or services from external vendors. There are 3 basic forms of external procurement generally supported by the Purchasing component of IT system.
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One time orders are generally used for material and services that are ordered irregularly. Longer-term contracts with the subsequent issue of release orders - For materials that are being ordered regularly and in large quantities, we can negotiate deal with the vendor seller for pricing or conditions & record then in a contract. In a contract you also specify the validity date. Longer-term scheduling agreements and delivery schedules If a material is ordered on an everyday basis and is to be delivered according to an exact time schedule, then you set
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up a scheduling agreement. Large corporate organizations may own multiple separate businesses or companies. Internal Procurement is process of getting material and services from among identical company. So, each of these companies maintains a complete bookkeeping system with separate Balance, Profit & Loss Statements so that when trade occurs between them it will be recorded.
Procurement for Stock
A stock material is a material that is kept in stock. These materials are kept in stock once received from the vendor. The stock of this material keeps on increasing or decreasing based on amount of the quantity received or issued. To order a material for stock, the material must have a master record within the system.
Procurement for Direct Consumption
When procurement is for direct consumption i.e. it will be consumed as soon as it is received, the user should specify the consumption purpose. To order a material for consumption, the material may have a master record within the system.
Special Procurement: Special stocks are stocks that are managed differently as these stocks did not belong to company and these are being kept at some particular location. Special procurement and special stocks types are divided into the subsequent areas. Consignment Stocks Third-party processing
Pipeline handling
Returnable Transport Stock Subcontracting
Stock transfer using
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Material that is available at our store premises, however it still belongs to the vendor seller/Owner of the material. If you utilize the material from consignment stocks, then you have to pay to the vendor. In third-party processing, a company passes on a sales order to associate external vendor seller who sends the goods directly to the customer. The sales order is not processed by your company, however by the vendor seller. Third-party items can be entered in purchase requisitions, purchase orders and sales orders. In pipeline handling, the company needs not to order or store the material involved. It is obtainable as and when required via a pipeline for example, oil or water, or another style of cable such as electricity. The material that is consumed is settled with the vendor seller on a regular basis. The company orders goods from a vendor seller. The goods are delivered with returnable transport packaging pallets, containers that belongs to the vendor seller and is stored on the customer premises until they return it to the company. The vendor the subcontractor receives components from the ordering party with the help of which it produces a product. The product is ordered by your company through a purchase order. The components required by the vendor seller to manufacture the ordered product are listed in the purchase order and provided to the subcontractor. Goods are procured and supplied within a company. One plant order the
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goods internally from another plant receiving plant/issuing plant. The goods are procured with a special type of purchase order - the stock transport order. You'll be able to request and monitor the transfer of goods with a stock transport order.
2. ORGANIZATION STRUCTURE Organization structure is the framework of company according to which business is conducted in every company .Organization structure consists of many levels which have relationship to one or another. Organization structure is also referred as enterprise structure. Enterprise structure is made up of many organizational units having relationship with one another.
Brief Description of various organization units: Client
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The fundamental explanation of Client is as follows: Client is a commercial organizational unit in R/3 system. It has its own set of master data with independent table sets. According to hierarchy,
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Plant
Storage Location
Purchasing Organization
Purchasing Group
Client is at highest level in SAP system. Data that is maintained at client level is valid for all organizational levels. The fundamental explanation of Company Code is as follows: Within Client, Company code is the independent accounting unit. It is a legal entity that has its own profit, loss and balance statement. It is the smallest unit in organization for which a complete independent account set can be replicated. The fundamental explanation of Plant is as follows: Plant is an organizational unit within a company where activities take place. A plant will produce goods and makes goods available for the company.It is unit having manufacturing facility, warehouse distribution center or a regional sales office within logistic. It subdivides an enterprise in different aspects. The fundamental explanation of Storage Location is as follows: Storage location is an organizational unit which actually differentiates between different material stocks in a Plant. Storage location is a place where stock is kept physically. Plant can be consisting of multiple storage location. All data is stored at storage location level for a particular storage location. The fundamental explanation of Purchasing Organization is as follows: Purchasing Organization is an organizational unit under company or plant which is responsible for procurement activities according to requirements. It is responsible for external Procurement. Purchasing organization can be at client level i.e. centralized purchasing organization. Purchasing organization can be at company or plant level i.e. company specific or plant specific Different forms of purchasing can be described as follows: Centralized Purchasing - Purchasing organization is not assigned to any company code it procures for all company codes belonging to different client. Company specific Purchasing - Purchasing organization is assigned to a company code only, Plant belonging to the company code can purchase through this Purchasing organization. Plant specific Purchasing - Purchasing organization is assigned to a Plant, only this specific Plant can purchase through this Purchasing organization. The fundamental explanation of Purchasing Group is as follows: Purchasing group is an organizational unit which is responsible for everyday procurement activities within an organization. It is a buyer or group of buyer responsible for procurement activities in a purchasing organization.
3. PROCUREMENT PROCESS OVERVIEW
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Every organization acquires material or services to complete its business needs. The process of buying materials and obtaining services from vendors or dealers is procurement. Procurement process should be done in such a way that it is ordered in correct quantity, with a proper value at the proper time. It is subdivided into following parts: Basic Procurement Special Procurement Basic Procurement
It is a process of acquiring goods or services in the right amount, at the right price at the right time.So the method of getting services, supplies, and equipment from a vendor seller, at the right price at the right time in right amount is termed as Procurement. The quality of procurement is attempting to “get the right balance”, consider the following example:
Organizations try and keep inventory levels at a minimum due to the prices associated with high levels of inventory; however at identical time it is very expensive to prevent production due to shortages in raw materials.
Getting the minimum price for a product or service is often necessary, however the balance between product availability, quality, and vendor seller relations is also necessary.
Procurement Lifecycle Most modern organizations procurement follow some sequential steps which are described below: Requirement and Information Gathering
Procurement process starts with gathering information about product and its quantity. Then for required products and services, it is necessary to look for suppliers who can satisfy the requirements. Supplier Contact
After gathering requirements one will look for the suppliers who can fulfil the requirements. Based on that quotation request or information request can be made to suppliers or direct contact can be made with them. Background Review
Once the supplier is known product/service quality is checked, and any necessities for services such as installation, warranty and its maintenance are investigated. Some samples of the products can be obtained for quality examination.
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Some negotiations with suppliers is made regarding price, availability and delivery schedule of the products/services. After this a contract is signed that is a binding legal document between supplier and ordering party. A contract will include all necessary information like price and quantity of material, delivery date, etc. Order fulfilment
Ordered material will be shipped, delivered to the ordering party and supplier is paid accordingly. Training and Installation of product or services may also be included. Consumption, Maintenance and Disposal
As the products/service is consumed the performance of the products or services is evaluated and any follow up service support if required is analysed. Contract Renewal
Once the product or services are consumed or contract expires and needs to be renewed, or the product or service is to be re-ordered, company experience with vendors and service provider is reviewed. If the products or services are to be re-ordered, the company decides whether to order from previous supplier or think about new suppliers.
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USER MANUAL- Procurement Cycle Basic Procurement Activities Basic Procurement activities flow is given in the following image:
Determination of Requirements
Requisition
Purchase Order
Goods Received/Invoice Received
Brief introduction Invoiceof the procurement activities:
Verification/Vendor Payment
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What material/services are required ?
The form or electronic transmission used to inform the purchasing department. That the item or services are needed for a business purpose
When requisition is approved purchase order is created
The material is received. Condition and quality are verified. The invoice is received from Vendor
Reconciliation of the invoice and PO is accomplished. The vendor is paid.
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Description
Determination of requirement
It is the logical subdivision where it is determined that what material or services are required to company, and which supplier can fulfill the requirement.
Creating Purchase Requisition
It is the phase in which purchasing department is informed about the requirement of items or services required for business purpose. A requisition is a internal document. It is the phase when order is created from requisition and it is approved and assigned to a supplier.
Creating Purchase Order Goods receipt/ Invoice Received Invoice verification/ Vendor Payment
It is the phase in which the material is received by the company and the condition and quality are verified. In this phase Invoice is received from the vendor seller. It is the phase in which the vendor seller is paid from the company and reconciliation of the invoice.
4. PROCUREMENT CYCLE STEPS Procurement Cycle steps have been organised into the following three sections. a) Master Data Management b) Material Procurement Cycle c) Service Procurement Cycle Each of the above is elaborated into detailed steps as below. A. Master Data Management The following key master data required to run the procurement process are explained. Material Master Vendor Master B. Material Procurement Cycle The following basic steps of procurement cycle are elaborated Purchase Requisition Creation/ Change & Display Purchase Order Creation Change and Display Goods Receipt C. Service Procurement Cycle Service Requisition Creation/ Change & Display Service Order Creation Change and Display Service Entry
5. MASTER DATA MANAGEMENT a. Material Master Maintenance Project Name: Training
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USER MANUAL- Procurement Cycle a) Creation of Material Master. T-code-MM01 Ster 1: Enter the T-code or go to the Menu path
Step 2: Select the Industry Sector and Material type. Press Enter
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USER MANUAL- Procurement Cycle Step 3: Select the relevant views and press Enter.
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Step 4: Enter the Plant and Storage Location. Press Enter
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USER MANUAL- Procurement Cycle Step 5: Enter the relevant field data i.e. BASIC DATA-Description, Base unit of Measure, Material group, External material group and press Enter.
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PURCHASING- Purchasing Group, Tax indicator for material, GR processing time and press Enter
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Foreign Trade Import : Enter Control Code(HSN), Press Enter
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Purchase Order Text: Enter the Long Description of that Material and select the next View.
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MRP 1: Enter MRP group, MRP type, MRP controller, Lot Size and press Enter.
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MRP 2: Enter Planned Delivery time, Scheduling Margin Key and press Enter
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Planned delivery time is 0 for ext. procured material
MRP 3: Enter the Availability Check.
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Plant Data/ Storage Location 1: Period indicator for SLED
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Plant Data/Storage Location 2: enter the Profit Center
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Accounting 1: Valuation Category, Valuation Class, Price Control, Price(Standard/ Moving) and press Enter
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Step 6: Click on
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to save .
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Material is created.
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Change of Material Master. T-code:MM02 Step 1:Enter the t-code or go to the menu path
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Step 2: Enter the Material No. and press Enter
Step3 : Select the View/views to change the field data.
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Step 4: Enter the relevant Plant and press Enter.
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Step 5: Do the necessary changes in relevant field .
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Step 6: Click on
Button to save the Change.
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C) Display Material Master: T-code: MM03 Step 1: Enter the T-code or go to menu path
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Step 2: Enter the Material No. and Press Enter.
Step 3: Select the view/views has to be display and press Enter .
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Step4: Enter the Plant and press Enter
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b. Vendor Master Maintenance
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USER MANUAL- Procurement Cycle A) Creation of Vendor Master Data. T-code: XK01 Step 1: Enter the T-code or go to the menu path
Step 2: Enter Company code, Purchasing Organization, Account group and press Enter
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Step 3: Enter Title, Name, Search term ½, Street/House number, Postal Code/City, Country, Region, Telephone, Fax, E-Mail and press Enter
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USER MANUAL- Procurement Cycle Step 4: Enter Tax Number 1, Tax Number 3, Industry
Step 5: Enter Country, Bank key, Bank Account,
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Step 6: Enter Recon. Account, Cash mgmnt group, Release group, Certification date and press Enter
Step 7: Enter Payment Terms, Payment methods, House Bank, Check double inv.
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Step 8: Enter Account Statement and press Enter
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Step 9: Enter Order currency, Terms of payment, Incoterms, Schema Group, Vendor, GR based inv. Verification .
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Step 10: Click on
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to crate Vendor master data.
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Vendor has been created for company code GRSE Purchasing Org. GRSE.
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B) Change Vendor master Data. T-code:XK02 Step 1: Enter the T-code or go to menu path.
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Step 2: Enter Vendor no., Company code, Purchase Org. and select the relevant view/views. Press Enter .
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Step 3: Click on
to save the Changes.
C) Display Vendor master Data. T-code:XK03 Step 1: Enter T-Code or go to Menu path.
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Step 2: Enter Vendor, Company Code, Purchase Organization and select the Views Enter.
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and press
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Step 3: Do the necessary Changes in Relevant Field
6. MATERIAL PROCUREMENT CYCLE a. Purchase Requisition a) Creation of Purchase Requisition: Tcode –ME51N 1. Step 1: Enter the tcode or go to the below menu:
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2. Step 2 : Press enter after entering tcode or double click on the selected menu
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3. Step 3: Enter Documet type, Text at Header note, material , quantity, plant, purchasing group, requested by , tracking no, valuation price
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USER MANUAL- Procurement Cycle 4. Click on the button
5. Now click on
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to check if the document is complete.
button, the purchase requisition will be created .
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b) Change purchase requisition : Tcode ME52N 1. Step 1: Enter the tcode or go to the below menu:
2. Step 2: Press enter or double click the selected menu. Then click on the purchase requisition you want to change
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button, enter the
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Step 3 : Press enter
Step 4: Change the value of the field you want to change (for example quantity)
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Step 5: Click on
button. The purchase requisition is changed.
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USER MANUAL- Procurement Cycle C) Display Purchase requisition. T-code- ME53N
Step 1: Enter the T-code or go to the below menu path.
3. Step 2 : Press enter after entering t-code or double click on the selected menu
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d) Print Purchase requisition. T-code: ZMM_INDENT Step1: Enter the T-code
Step2: Enter the Purchase requisition No. and click on
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button.
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Step3: Go to the menu List>Print
Step4: Select the Output Device and click on
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e) Release of Purchase Requisition. T-code: ME54N Step 1: Enter the T-code or go to the menu path
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Step 2: Click on
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button and enter the relevant Purchase Requisition no. and Press Enter.
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Step 3: Click on
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button of relevant Release Level to release that document for 1 st level
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Step 4: Click on
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button of relevant Release Level to release that document for 2 nd level
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Step 5: click on
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button to release this document for further use.
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b. Purchase Order 7. CREATION OF PURCHASE ORDER. T-CODE:ME21N Step 1: Enter the t-code or go to the menu path
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Step 2: Select the Relevant Document Type .
Step 3: Enter Vendor, Header Texts under Test tab, Purchase org, Purchasing group, Company code under Org. Data tab
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Step 4: Click on “Document Overview on”
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USER MANUAL- Procurement Cycle Step 5: Select Purchase Requition
Step 6: enter the Purchase requisition no. in the relevant field. Press
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button
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Step 7: select the Purchase requisition no. and click on Purchase Order.
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button to Adopt the Purchase requisition in
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Step8: Go to Condition Tab in Item Details.
Step9: Enter the Unit price of the material
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Step 10: select the other condition type (Freight, Discount etc.) by clicking
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.
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Step 11: Enter the Value of respective Conditions.
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Step 12: go to the invoice tab and enter the Tax code
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Step 13: Click on Taxes to see the Tax calculation.
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Step 14: Click on the PO.
button to check the PO. If no message issued during Check then Click on
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to save
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b) Change of Purchase Order. T-code- ME22N Step 1: enter the t-code or go to the menu path
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Step 2: click on
to put the PO no.
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Step 3: DO THE NECESSARY CHANGES AND CLICK ON
BUTTON.
C) DISPLAY OF PURCHASE ORDER. T-code: ME23N Step 1: ENTER THE T-CODE OR GO TO THE MENU PATH
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Step 2: click on
to put the PO no. and press enter.
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USER MANUAL- Procurement Cycle D) Print of Purchase Order. Step 1: Enter the MM03 and enter and click on
button and enter the PO no. press enter.
Step 2: click on Print Overview
Step 3: enter the output device and click on Print preview.
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Release of Purchase Order:
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USER MANUAL- Procurement Cycle c) Release of Purchase Order: Tcode –ME29N 6. Step 1: Enter the tcode or go to the below menu path:
7. Step 2: Click on the Release Field (L0) under Release Option column then click on the (L3) M for Higher Authority Release and save the document.
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USER MANUAL- Procurement Cycle 8. Step 3: P.O Released for both P.O creator and Manager.
4. Step 4 : Save the PO.
c. Creation of Contract A) CREATION OF CONTRACT. T-CODE:ME31K STEP 1: Enter T-code or go to menu path
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Step 2: Enter the Vendor, Agreement type (value/Quantity), Agreement Date, Purchase org, Purchasing group and press Enter
Step 3: Enter Validity Start / End date, Payment terms and Incoterms.
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Step 4: Click on
button and enter the Material, Target Quantity, Net Price, Plant
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USER MANUAL- Procurement Cycle Step 5: Click on
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b) Change of Contract. T-code: ME32K Step 1: Enter the T-code or go to the menu path
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Step 2: Enter the Contract Agreement No. and press Enter.
Step 3: Do the necessary changes in the relevant field (exmpl: change in Qty). and click on
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button .
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Step 4: Click on
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to save the changes.
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Quantity Contract Changed.
B) DISPLAY OF CONTRACT. T-CODE: ME33K Step 1: Enter the T-code or go to the menu path.
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Step 2: Enter the Contract Agreement no. and press Enter.
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d. Goods Receipt a) Creation of Goods Receipt: Tcode –MIGO 1. Step 1: Enter the tcode or go to the below menu path:
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USER MANUAL- Procurement Cycle 2. Step 2: Select Good Receipt, Purchase Order from the drop down give Purchase Order Number, Document Date, Posting Date, Bill of Landing and Tick the Check Button of Individual Slip press ENTER
3. Step 3: Give Storage Location, Good Recipient, Unloading Point.
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USER MANUAL- Procurement Cycle 4. Step 4: Put the Actual Quantity Received from the Vendor or Party in the Qty in Delivery Note Field and Tick the Item Ok
5. Step 5: Give the Valuation Type
6. Step 6: Click on the Check option and Post the document
A new MIGO document is created, message shown below.
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USER MANUAL- Procurement Cycle 7. Step: 7 Go to Display Purchase Order and check the Good Receipt Document / Material Document is visible under tab Purchase Order History.
8. Step: 8 Select Display and Material Document option from the dropdown to display the Good Receipt Document.
Bill Tracking System
1. BTS: Tcode –ZBTSD01 1. Step 1: Enter the tcode: Give BTS Number press ENTER
2. Step: 2 Here we get all the details of BTS related to Vendor Bill Order.
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USER MANUAL- Procurement Cycle 3. Step: 3 Give Remarks, Tick the Good Receipt No. if it contains Material and Service Entry Sheet No. if it contains the service.
4. Step:4 i). Click on the respective dept. ii). Click on the
button if you want to forward the button to certify the Invoice.
iii). Click on the
button for cancel or rejection.
7. SERVICE PROCUREMENT CYCLE a. Service Purchase Requisition
Service Purchase Requisition: d) Creation of Service Purchase Requisition: Tcode –ME51N 1. Step 1: Enter the tcode or go to the below menu path:
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2. Step 2: After the enter the tcode or double click on the selected menu Purchase Requisition screen appears.
3). Step 3: Enter the Document Type, Header Note, Account Assignment Catg. (K), Item Category (D) Short Text, Delivery Date,Material Group, Plant, Purchase Group, Requested By, Tracking No. press Enter then automatically a below Line Item will open.
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USER MANUAL- Procurement Cycle 4). Step 4: In the below Line Item we have to fill the Service No. Short text, Quantity and Gross Price.
5. Step 5: In the Account Assignment Tab we have to give G/L Account Number, Cost Center & WBS Element Number (if necessary).
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USER MANUAL- Procurement Cycle 6. Step 6: Click on the check button to check and save new document number will be created.
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the Service P.R, a
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USER MANUAL- Procurement Cycle b)Change of Service Purchase Requisition: Tcode –ME52N 1). Step 1: Enter the tcode or go to the below menu path:
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USER MANUAL- Procurement Cycle 2). Step 2 : Click on the Other Purchase Requisition tools Requisition Number/Document Number Press Enter
put the Purchase
3). Step 3 : Change the Service Quantity of the PR (As per the requirement).
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USER MANUAL- Procurement Cycle 4) Step 4: Click on the save button
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USER MANUAL- Procurement Cycle c). Display of Service Purchase Requisition: Tcode –ME53N 1). Step 1: Enter the tcode or go to the below menu path:
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USER MANUAL- Procurement Cycle 2. Step 2: Click on the Other Purchase Requisition tools put the Purchase Requisition Number/Document Number Press Enter for display
f) Print Purchase requisition. T-code: ZMM_INDENT 1). Step1: Enter the T-code
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USER MANUAL- Procurement Cycle Step2: Enter the Purchase requisition No. and click on
button.
Step3: Go to the menu List>Print
Step4: Select the Output Device and click on
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b. Service Purchase Order Service Purchase Order: b) Creation of Purchase Order: Tcode –ME21N 1. Step 1: Enter the tcode or go to the below menu path:
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2. Step 2: After enter the tcode or double click on the selected menu a new screen appear of Purchase Order.
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3. Step 3: Select the Document Type give Short Text
4. Step 4: Give Purchase Organization number, Purchase Group and Company Code under Org. Data Tab
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USER MANUAL- Procurement Cycle 5. Step 5: Give the Purchase Requisition Number press ENTER then all details will be fetch from the Purchase Requisition in to the Purchase Order.
6. Step 6: Give Tax Code under Invoice Tab.
7. Step 7: In the below Line Item we can change the Conditions under Conditions Tab.
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8. Step 8: Click on the check button to check the error and save Service P.O, a new document number will be created.
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USER MANUAL- Procurement Cycle b) Change of Purchase Order: Tcode –ME22N 1). Step 1: Enter the tcode or go to the below menu path:
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2). Step 2 : Click on the Other Purchase Order option Number Press Enter
put the Purchase Order
3). Step 3 : Change the Service Quantity of the PO (As per the requirement).
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USER MANUAL- Procurement Cycle 4) Step 4: Click on the save button
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USER MANUAL- Procurement Cycle c). Display of Purchase Order: Tcode –ME23N 1). Step 1: Enter the tcode or go to the below menu path:
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USER MANUAL- Procurement Cycle 2. Step 2: Click on the Other Purchase Order option Number Press Enter for Display
put the Purchase Order
g) Print Purchase Order. 1). Step1: Click on the Print Preview Option
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USER MANUAL- Procurement Cycle 2). Step2: Enter the Print Preview button.
3). Step3: Go to the menu Text>Print
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c. Service Entry Service Entry Sheet: c) Creation of Service Entry Sheet: Tcode –ML81N 2. Step 1: Enter the tcode or go to the below menu path:
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3. Step :2 Click on the Other Purchase Order option give the P.O Number press ENTER
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USER MANUAL- Procurement Cycle 4. Step :3 Click on the Create New option
5. Step :4 Give Short Text and Long Text under Long Txt Tab menu
6. Step :5 Give Quality of Service and Service Timeline.
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USER MANUAL- Procurement Cycle 7. Step :6 Give Completion Date under Addnl Data tab
8. Step :7 Give Document Date and Posting Date under Accept. Data Tab.
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USER MANUAL- Procurement Cycle 9. Step :8 Give Service Location, Period, Responsible Internally (Company Person) and Externally (Vendor Name).
10. Step :9 Click on the Service Sel. Option to fetch the Service Line item.
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USER MANUAL- Procurement Cycle 11. Step :10 Click on the Tick Button
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USER MANUAL- Procurement Cycle 12. Step :11 A new screen will appear then select the Line item and click on the Services option on the top left of the screen press ENTER
13. Step :12 Click the Acceptance button Sheet. See the Green Signal Approved.
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USER MANUAL- Procurement Cycle 14. Step :13 Go to Display Purchase Order and check the Service Entry sheet is visible under tab Purchase Order History.
8. GOODS & SERVICE TAX(GST) The new indirect taxation regime in India from July 2019, (GST) requires the businesses to register in every state of establishment. The registration number obtained upon registration is called as GSTIN (GST Identification Number). The GSTINs obtained by the organization must be maintained in the system, along with their registered addresses.
a. GST Related Oragnisational Change In every (A/R and A/P) transaction relevant to tax, the GSTIN of the organization must be captured in the transaction. Periodically, the GST returns are to be submitted to the Government of India, which must contain the relevant GSTIN. GST returns are to be submitted for each GSTIN separately Government of India will be able to identify the organization only through its GSTIN To facilitate this the Business Place feature needs to be activated. For every GSTIN registration in a company, a business place needs to be created in SAP and assigned to the corresponding company code. In order to ensure that every A/R and A/P transaction (triggered from Materials Management and Sales & Distribution) captures the GSTIN of the organization, the business place must be assigned to Plant Multiple plants in one state can be assigned to one Business Place
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b. GST Related Master Data Change Material Master In Material Master we have to enter “0” in the field “Tax ind. F. material” in the Purchasing Tab which indicates that the material is taxable under GST.
After that in the tab “Foreign trade import” we will enter the HSN code of that material.
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SERVICE MASTER Similarly, while creating service master in Tcode AC03, in the tax indicator field we will enter “0” which means taxable under GST and in the field “Tax Tariff Code” we will enter the relevant SAC code for that particular service.
VENDOR MASTER While creating Vendor in Tcode XK01, we will select the CIN details tab and there in the GST details tab we will select “GST VEN class” as blank which means that the vendor is registered.
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Then in tax category “the TAX number 3” field we will enter the GST number of the vendor.
c. GST Related Process Change While creating PO we will enter the relevant tax code in the Invoice tab of Item details, and in the India tab the control code of the material will appear.
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While creating Invoice in Tcode “MIRO”. After GST we will have to enter the Business place and Section in Basic Data tab under “Bus.place/sectn”.
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USER MANUAL FOR PROCUREMENT CYCLE
FOR
USER MANUAL- Procurement Cycle
DOCUMENT RELEASE DETAILS
Prepared by
Designation
Reviewed By 1 1
Rajiv Sarkar N.K.Kumbhakar
Approved By
Date
Designation Designation
Date Date
Signature
Signature Signature
1
DOCUMENT REVISION DETAILS Document Name: Version No.:
PROCUREMENT CYCLE USER MANUAL 1.0
Revision
Page
Description
Action Taken
No. No. Date
Topic
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Table of Contents 1.
INTRODUCTION....................................................................................................................................4
2.
ORGANIZATION STRUCTURE...........................................................................................................6
3.
PROCUREMENT PROCESS OVERVIEW.........................................................................................8
4.
PROCUREMENT CYCLE STEPS.....................................................................................................11
5.
MASTER DATA MANAGEMENT......................................................................................................12
a.
Material Master Maintenance..........................................................................................................12
b.
Vendor Master Maintenance............................................................................................................38
6.
MATERIAL PROCUREMENT CYCLE..............................................................................................55
a.
Purchase Requisition........................................................................................................................55
b.
Purchase Order..................................................................................................................................70
c.
Creation of Contract..........................................................................................................................91
d.
Goods Receipt..................................................................................................................................102
7.
SERVICE PROCUREMENT CYCLE..............................................................................................107
a.
Service Purchase Requisition.......................................................................................................107
b.
Service Purchase Order.................................................................................................................119
c.
Service Entry.....................................................................................................................................130
8.
GOODS & SERVICE TAX(GST)......................................................................................................137
a.
GST Related Oragnisational Change..........................................................................................137
b.
GST Related Master Data Change................................................................................................138
c.
GST Related Process Change.......................................................................................................141
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1. INTRODUCTION SAP ERP
It is a packaged software integrates all business functionalities together. It saves time and cost in the process
SAP MM
Is a part of logistics area and helps to manage procurement activity of an organization supports all aspects of material management planning and control Other logistics module like Sales and distribution, Production Planning, Plant maintenance, Warehouse management are all obsessed with MM .
Features
SAP MM deals with material management and inventory management SAP MM ensures there is never a shortage of materials or any gaps in the supply chain process It deals with the Procurement Process, Master Data (Material & Vendor Master) , Account Determination & Valuation of Material, Inventory Management, Invoice Verification, Material Requirement Planning etc.
Types of Basic Procurement: 1. External vs Internal Procurement 2. Procurement for Stock vs Consumption External Procurement
It is the process of procuring goods or services from external vendors. There are 3 basic forms of external procurement generally supported by the Purchasing component of IT system.
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One time orders are generally used for material and services that are ordered irregularly. Longer-term contracts with the subsequent issue of release orders - For materials that are being ordered regularly and in large quantities, we can negotiate deal with the vendor seller for pricing or conditions & record then in a contract. In a contract you also specify the validity date. Longer-term scheduling agreements and delivery schedules If a material is ordered on an everyday basis and is to be delivered according to an exact time schedule, then you set
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up a scheduling agreement. Large corporate organizations may own multiple separate businesses or companies. Internal Procurement is process of getting material and services from among identical company. So, each of these companies maintains a complete bookkeeping system with separate Balance, Profit & Loss Statements so that when trade occurs between them it will be recorded.
Procurement for Stock
A stock material is a material that is kept in stock. These materials are kept in stock once received from the vendor. The stock of this material keeps on increasing or decreasing based on amount of the quantity received or issued. To order a material for stock, the material must have a master record within the system.
Procurement for Direct Consumption
When procurement is for direct consumption i.e. it will be consumed as soon as it is received, the user should specify the consumption purpose. To order a material for consumption, the material may have a master record within the system.
Special Procurement: Special stocks are stocks that are managed differently as these stocks did not belong to company and these are being kept at some particular location. Special procurement and special stocks types are divided into the subsequent areas. Consignment Stocks Third-party processing
Pipeline handling
Returnable Transport Stock Subcontracting
Stock transfer using
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Material that is available at our store premises, however it still belongs to the vendor seller/Owner of the material. If you utilize the material from consignment stocks, then you have to pay to the vendor. In third-party processing, a company passes on a sales order to associate external vendor seller who sends the goods directly to the customer. The sales order is not processed by your company, however by the vendor seller. Third-party items can be entered in purchase requisitions, purchase orders and sales orders. In pipeline handling, the company needs not to order or store the material involved. It is obtainable as and when required via a pipeline for example, oil or water, or another style of cable such as electricity. The material that is consumed is settled with the vendor seller on a regular basis. The company orders goods from a vendor seller. The goods are delivered with returnable transport packaging pallets, containers that belongs to the vendor seller and is stored on the customer premises until they return it to the company. The vendor the subcontractor receives components from the ordering party with the help of which it produces a product. The product is ordered by your company through a purchase order. The components required by the vendor seller to manufacture the ordered product are listed in the purchase order and provided to the subcontractor. Goods are procured and supplied within a company. One plant order the
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goods internally from another plant receiving plant/issuing plant. The goods are procured with a special type of purchase order - the stock transport order. You'll be able to request and monitor the transfer of goods with a stock transport order.
2. ORGANIZATION STRUCTURE Organization structure is the framework of company according to which business is conducted in every company .Organization structure consists of many levels which have relationship to one or another. Organization structure is also referred as enterprise structure. Enterprise structure is made up of many organizational units having relationship with one another.
Brief Description of various organization units: Client
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The fundamental explanation of Client is as follows: Client is a commercial organizational unit in R/3 system. It has its own set of master data with independent table sets. According to hierarchy,
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Plant
Storage Location
Purchasing Organization
Purchasing Group
Client is at highest level in SAP system. Data that is maintained at client level is valid for all organizational levels. The fundamental explanation of Company Code is as follows: Within Client, Company code is the independent accounting unit. It is a legal entity that has its own profit, loss and balance statement. It is the smallest unit in organization for which a complete independent account set can be replicated. The fundamental explanation of Plant is as follows: Plant is an organizational unit within a company where activities take place. A plant will produce goods and makes goods available for the company.It is unit having manufacturing facility, warehouse distribution center or a regional sales office within logistic. It subdivides an enterprise in different aspects. The fundamental explanation of Storage Location is as follows: Storage location is an organizational unit which actually differentiates between different material stocks in a Plant. Storage location is a place where stock is kept physically. Plant can be consisting of multiple storage location. All data is stored at storage location level for a particular storage location. The fundamental explanation of Purchasing Organization is as follows: Purchasing Organization is an organizational unit under company or plant which is responsible for procurement activities according to requirements. It is responsible for external Procurement. Purchasing organization can be at client level i.e. centralized purchasing organization. Purchasing organization can be at company or plant level i.e. company specific or plant specific Different forms of purchasing can be described as follows: Centralized Purchasing - Purchasing organization is not assigned to any company code it procures for all company codes belonging to different client. Company specific Purchasing - Purchasing organization is assigned to a company code only, Plant belonging to the company code can purchase through this Purchasing organization. Plant specific Purchasing - Purchasing organization is assigned to a Plant, only this specific Plant can purchase through this Purchasing organization. The fundamental explanation of Purchasing Group is as follows: Purchasing group is an organizational unit which is responsible for everyday procurement activities within an organization. It is a buyer or group of buyer responsible for procurement activities in a purchasing organization.
3. PROCUREMENT PROCESS OVERVIEW
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Every organization acquires material or services to complete its business needs. The process of buying materials and obtaining services from vendors or dealers is procurement. Procurement process should be done in such a way that it is ordered in correct quantity, with a proper value at the proper time. It is subdivided into following parts: Basic Procurement Special Procurement Basic Procurement
It is a process of acquiring goods or services in the right amount, at the right price at the right time.So the method of getting services, supplies, and equipment from a vendor seller, at the right price at the right time in right amount is termed as Procurement. The quality of procurement is attempting to “get the right balance”, consider the following example:
Organizations try and keep inventory levels at a minimum due to the prices associated with high levels of inventory; however at identical time it is very expensive to prevent production due to shortages in raw materials.
Getting the minimum price for a product or service is often necessary, however the balance between product availability, quality, and vendor seller relations is also necessary.
Procurement Lifecycle Most modern organizations procurement follow some sequential steps which are described below: Requirement and Information Gathering
Procurement process starts with gathering information about product and its quantity. Then for required products and services, it is necessary to look for suppliers who can satisfy the requirements. Supplier Contact
After gathering requirements one will look for the suppliers who can fulfil the requirements. Based on that quotation request or information request can be made to suppliers or direct contact can be made with them. Background Review
Once the supplier is known product/service quality is checked, and any necessities for services such as installation, warranty and its maintenance are investigated. Some samples of the products can be obtained for quality examination.
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Some negotiations with suppliers is made regarding price, availability and delivery schedule of the products/services. After this a contract is signed that is a binding legal document between supplier and ordering party. A contract will include all necessary information like price and quantity of material, delivery date, etc. Order fulfilment
Ordered material will be shipped, delivered to the ordering party and supplier is paid accordingly. Training and Installation of product or services may also be included. Consumption, Maintenance and Disposal
As the products/service is consumed the performance of the products or services is evaluated and any follow up service support if required is analysed. Contract Renewal
Once the product or services are consumed or contract expires and needs to be renewed, or the product or service is to be re-ordered, company experience with vendors and service provider is reviewed. If the products or services are to be re-ordered, the company decides whether to order from previous supplier or think about new suppliers.
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USER MANUAL- Procurement Cycle Basic Procurement Activities Basic Procurement activities flow is given in the following image:
Determination of Requirements
Requisition
Purchase Order
Goods Received/Invoice Received
Brief introduction Invoiceof the procurement activities:
Verification/Vendor Payment
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What material/services are required ?
The form or electronic transmission used to inform the purchasing department. That the item or services are needed for a business purpose
When requisition is approved purchase order is created
The material is received. Condition and quality are verified. The invoice is received from Vendor
Reconciliation of the invoice and PO is accomplished. The vendor is paid.
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Description
Determination of requirement
It is the logical subdivision where it is determined that what material or services are required to company, and which supplier can fulfill the requirement.
Creating Purchase Requisition
It is the phase in which purchasing department is informed about the requirement of items or services required for business purpose. A requisition is a internal document. It is the phase when order is created from requisition and it is approved and assigned to a supplier.
Creating Purchase Order Goods receipt/ Invoice Received Invoice verification/ Vendor Payment
It is the phase in which the material is received by the company and the condition and quality are verified. In this phase Invoice is received from the vendor seller. It is the phase in which the vendor seller is paid from the company and reconciliation of the invoice.
4. PROCUREMENT CYCLE STEPS Procurement Cycle steps have been organised into the following three sections. a) Master Data Management b) Material Procurement Cycle c) Service Procurement Cycle Each of the above is elaborated into detailed steps as below. A. Master Data Management The following key master data required to run the procurement process are explained. Material Master Vendor Master B. Material Procurement Cycle The following basic steps of procurement cycle are elaborated Purchase Requisition Creation/ Change & Display Purchase Order Creation Change and Display Goods Receipt C. Service Procurement Cycle Service Requisition Creation/ Change & Display Service Order Creation Change and Display Service Entry
5. MASTER DATA MANAGEMENT a. Material Master Maintenance Project Name: Training
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USER MANUAL- Procurement Cycle a) Creation of Material Master. T-code-MM01 Ster 1: Enter the T-code or go to the Menu path
Step 2: Select the Industry Sector and Material type. Press Enter
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USER MANUAL- Procurement Cycle Step 3: Select the relevant views and press Enter.
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Step 4: Enter the Plant and Storage Location. Press Enter
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USER MANUAL- Procurement Cycle Step 5: Enter the relevant field data i.e. BASIC DATA-Description, Base unit of Measure, Material group, External material group and press Enter.
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PURCHASING- Purchasing Group, Tax indicator for material, GR processing time and press Enter
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Foreign Trade Import : Enter Control Code(HSN), Press Enter
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Purchase Order Text: Enter the Long Description of that Material and select the next View.
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MRP 1: Enter MRP group, MRP type, MRP controller, Lot Size and press Enter.
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MRP 2: Enter Planned Delivery time, Scheduling Margin Key and press Enter
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Planned delivery time is 0 for ext. procured material
MRP 3: Enter the Availability Check.
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Plant Data/ Storage Location 1: Period indicator for SLED
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Plant Data/Storage Location 2: enter the Profit Center
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Accounting 1: Valuation Category, Valuation Class, Price Control, Price(Standard/ Moving) and press Enter
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Step 6: Click on
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to save .
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Material is created.
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Change of Material Master. T-code:MM02 Step 1:Enter the t-code or go to the menu path
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Step 2: Enter the Material No. and press Enter
Step3 : Select the View/views to change the field data.
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Step 4: Enter the relevant Plant and press Enter.
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Step 5: Do the necessary changes in relevant field .
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Step 6: Click on
Button to save the Change.
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C) Display Material Master: T-code: MM03 Step 1: Enter the T-code or go to menu path
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Step 2: Enter the Material No. and Press Enter.
Step 3: Select the view/views has to be display and press Enter .
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Step4: Enter the Plant and press Enter
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b. Vendor Master Maintenance
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USER MANUAL- Procurement Cycle A) Creation of Vendor Master Data. T-code: XK01 Step 1: Enter the T-code or go to the menu path
Step 2: Enter Company code, Purchasing Organization, Account group and press Enter
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Step 3: Enter Title, Name, Search term ½, Street/House number, Postal Code/City, Country, Region, Telephone, Fax, E-Mail and press Enter
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USER MANUAL- Procurement Cycle Step 4: Enter Tax Number 1, Tax Number 3, Industry
Step 5: Enter Country, Bank key, Bank Account,
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Step 6: Enter Recon. Account, Cash mgmnt group, Release group, Certification date and press Enter
Step 7: Enter Payment Terms, Payment methods, House Bank, Check double inv.
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Step 8: Enter Account Statement and press Enter
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Step 9: Enter Order currency, Terms of payment, Incoterms, Schema Group, Vendor, GR based inv. Verification .
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Step 10: Click on
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to crate Vendor master data.
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Vendor has been created for company code GRSE Purchasing Org. GRSE.
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B) Change Vendor master Data. T-code:XK02 Step 1: Enter the T-code or go to menu path.
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Step 2: Enter Vendor no., Company code, Purchase Org. and select the relevant view/views. Press Enter .
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Step 3: Click on
to save the Changes.
C) Display Vendor master Data. T-code:XK03 Step 1: Enter T-Code or go to Menu path.
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Step 2: Enter Vendor, Company Code, Purchase Organization and select the Views Enter.
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Step 3: Do the necessary Changes in Relevant Field
6. MATERIAL PROCUREMENT CYCLE a. Purchase Requisition a) Creation of Purchase Requisition: Tcode –ME51N 1. Step 1: Enter the tcode or go to the below menu:
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2. Step 2 : Press enter after entering tcode or double click on the selected menu
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3. Step 3: Enter Documet type, Text at Header note, material , quantity, plant, purchasing group, requested by , tracking no, valuation price
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USER MANUAL- Procurement Cycle 4. Click on the button
5. Now click on
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to check if the document is complete.
button, the purchase requisition will be created .
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b) Change purchase requisition : Tcode ME52N 1. Step 1: Enter the tcode or go to the below menu:
2. Step 2: Press enter or double click the selected menu. Then click on the purchase requisition you want to change
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button, enter the
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Step 3 : Press enter
Step 4: Change the value of the field you want to change (for example quantity)
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Step 5: Click on
button. The purchase requisition is changed.
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USER MANUAL- Procurement Cycle C) Display Purchase requisition. T-code- ME53N
Step 1: Enter the T-code or go to the below menu path.
3. Step 2 : Press enter after entering t-code or double click on the selected menu
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d) Print Purchase requisition. T-code: ZMM_INDENT Step1: Enter the T-code
Step2: Enter the Purchase requisition No. and click on
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button.
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Step3: Go to the menu List>Print
Step4: Select the Output Device and click on
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e) Release of Purchase Requisition. T-code: ME54N Step 1: Enter the T-code or go to the menu path
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Step 2: Click on
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button and enter the relevant Purchase Requisition no. and Press Enter.
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Step 3: Click on
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button of relevant Release Level to release that document for 1 st level
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Step 4: Click on
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button of relevant Release Level to release that document for 2 nd level
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Step 5: click on
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button to release this document for further use.
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b. Purchase Order 7. CREATION OF PURCHASE ORDER. T-CODE:ME21N Step 1: Enter the t-code or go to the menu path
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Step 2: Select the Relevant Document Type .
Step 3: Enter Vendor, Header Texts under Test tab, Purchase org, Purchasing group, Company code under Org. Data tab
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Step 4: Click on “Document Overview on”
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USER MANUAL- Procurement Cycle Step 5: Select Purchase Requition
Step 6: enter the Purchase requisition no. in the relevant field. Press
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button
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Step 7: select the Purchase requisition no. and click on Purchase Order.
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button to Adopt the Purchase requisition in
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Step8: Go to Condition Tab in Item Details.
Step9: Enter the Unit price of the material
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Step 10: select the other condition type (Freight, Discount etc.) by clicking
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.
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Step 11: Enter the Value of respective Conditions.
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Step 12: go to the invoice tab and enter the Tax code
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Step 13: Click on Taxes to see the Tax calculation.
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Step 14: Click on the PO.
button to check the PO. If no message issued during Check then Click on
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to save
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b) Change of Purchase Order. T-code- ME22N Step 1: enter the t-code or go to the menu path
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Step 2: click on
to put the PO no.
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Step 3: DO THE NECESSARY CHANGES AND CLICK ON
BUTTON.
C) DISPLAY OF PURCHASE ORDER. T-code: ME23N Step 1: ENTER THE T-CODE OR GO TO THE MENU PATH
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Step 2: click on
to put the PO no. and press enter.
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USER MANUAL- Procurement Cycle D) Print of Purchase Order. Step 1: Enter the MM03 and enter and click on
button and enter the PO no. press enter.
Step 2: click on Print Overview
Step 3: enter the output device and click on Print preview.
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Release of Purchase Order:
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USER MANUAL- Procurement Cycle c) Release of Purchase Order: Tcode –ME29N 6. Step 1: Enter the tcode or go to the below menu path:
7. Step 2: Click on the Release Field (L0) under Release Option column then click on the (L3) M for Higher Authority Release and save the document.
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USER MANUAL- Procurement Cycle 8. Step 3: P.O Released for both P.O creator and Manager.
4. Step 4 : Save the PO.
c. Creation of Contract A) CREATION OF CONTRACT. T-CODE:ME31K STEP 1: Enter T-code or go to menu path
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Step 2: Enter the Vendor, Agreement type (value/Quantity), Agreement Date, Purchase org, Purchasing group and press Enter
Step 3: Enter Validity Start / End date, Payment terms and Incoterms.
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Step 4: Click on
button and enter the Material, Target Quantity, Net Price, Plant
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USER MANUAL- Procurement Cycle Step 5: Click on
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b) Change of Contract. T-code: ME32K Step 1: Enter the T-code or go to the menu path
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Step 2: Enter the Contract Agreement No. and press Enter.
Step 3: Do the necessary changes in the relevant field (exmpl: change in Qty). and click on
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button .
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Step 4: Click on
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to save the changes.
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Quantity Contract Changed.
B) DISPLAY OF CONTRACT. T-CODE: ME33K Step 1: Enter the T-code or go to the menu path.
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Step 2: Enter the Contract Agreement no. and press Enter.
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d. Goods Receipt a) Creation of Goods Receipt: Tcode –MIGO 1. Step 1: Enter the tcode or go to the below menu path:
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USER MANUAL- Procurement Cycle 2. Step 2: Select Good Receipt, Purchase Order from the drop down give Purchase Order Number, Document Date, Posting Date, Bill of Landing and Tick the Check Button of Individual Slip press ENTER
3. Step 3: Give Storage Location, Good Recipient, Unloading Point.
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USER MANUAL- Procurement Cycle 4. Step 4: Put the Actual Quantity Received from the Vendor or Party in the Qty in Delivery Note Field and Tick the Item Ok
5. Step 5: Give the Valuation Type
6. Step 6: Click on the Check option and Post the document
A new MIGO document is created, message shown below.
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USER MANUAL- Procurement Cycle 7. Step: 7 Go to Display Purchase Order and check the Good Receipt Document / Material Document is visible under tab Purchase Order History.
8. Step: 8 Select Display and Material Document option from the dropdown to display the Good Receipt Document.
Bill Tracking System
1. BTS: Tcode –ZBTSD01 1. Step 1: Enter the tcode: Give BTS Number press ENTER
2. Step: 2 Here we get all the details of BTS related to Vendor Bill Order.
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USER MANUAL- Procurement Cycle 3. Step: 3 Give Remarks, Tick the Good Receipt No. if it contains Material and Service Entry Sheet No. if it contains the service.
4. Step:4 i). Click on the respective dept. ii). Click on the
button if you want to forward the button to certify the Invoice.
iii). Click on the
button for cancel or rejection.
7. SERVICE PROCUREMENT CYCLE a. Service Purchase Requisition
Service Purchase Requisition: d) Creation of Service Purchase Requisition: Tcode –ME51N 1. Step 1: Enter the tcode or go to the below menu path:
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2. Step 2: After the enter the tcode or double click on the selected menu Purchase Requisition screen appears.
3). Step 3: Enter the Document Type, Header Note, Account Assignment Catg. (K), Item Category (D) Short Text, Delivery Date,Material Group, Plant, Purchase Group, Requested By, Tracking No. press Enter then automatically a below Line Item will open.
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USER MANUAL- Procurement Cycle 4). Step 4: In the below Line Item we have to fill the Service No. Short text, Quantity and Gross Price.
5. Step 5: In the Account Assignment Tab we have to give G/L Account Number, Cost Center & WBS Element Number (if necessary).
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USER MANUAL- Procurement Cycle 6. Step 6: Click on the check button to check and save new document number will be created.
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the Service P.R, a
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USER MANUAL- Procurement Cycle b)Change of Service Purchase Requisition: Tcode –ME52N 1). Step 1: Enter the tcode or go to the below menu path:
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USER MANUAL- Procurement Cycle 2). Step 2 : Click on the Other Purchase Requisition tools Requisition Number/Document Number Press Enter
put the Purchase
3). Step 3 : Change the Service Quantity of the PR (As per the requirement).
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USER MANUAL- Procurement Cycle 4) Step 4: Click on the save button
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to save the Service P.R
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USER MANUAL- Procurement Cycle c). Display of Service Purchase Requisition: Tcode –ME53N 1). Step 1: Enter the tcode or go to the below menu path:
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USER MANUAL- Procurement Cycle 2. Step 2: Click on the Other Purchase Requisition tools put the Purchase Requisition Number/Document Number Press Enter for display
f) Print Purchase requisition. T-code: ZMM_INDENT 1). Step1: Enter the T-code
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USER MANUAL- Procurement Cycle Step2: Enter the Purchase requisition No. and click on
button.
Step3: Go to the menu List>Print
Step4: Select the Output Device and click on
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b. Service Purchase Order Service Purchase Order: b) Creation of Purchase Order: Tcode –ME21N 1. Step 1: Enter the tcode or go to the below menu path:
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2. Step 2: After enter the tcode or double click on the selected menu a new screen appear of Purchase Order.
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3. Step 3: Select the Document Type give Short Text
4. Step 4: Give Purchase Organization number, Purchase Group and Company Code under Org. Data Tab
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USER MANUAL- Procurement Cycle 5. Step 5: Give the Purchase Requisition Number press ENTER then all details will be fetch from the Purchase Requisition in to the Purchase Order.
6. Step 6: Give Tax Code under Invoice Tab.
7. Step 7: In the below Line Item we can change the Conditions under Conditions Tab.
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8. Step 8: Click on the check button to check the error and save Service P.O, a new document number will be created.
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the
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USER MANUAL- Procurement Cycle b) Change of Purchase Order: Tcode –ME22N 1). Step 1: Enter the tcode or go to the below menu path:
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2). Step 2 : Click on the Other Purchase Order option Number Press Enter
put the Purchase Order
3). Step 3 : Change the Service Quantity of the PO (As per the requirement).
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USER MANUAL- Procurement Cycle 4) Step 4: Click on the save button
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to save the P.O
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USER MANUAL- Procurement Cycle c). Display of Purchase Order: Tcode –ME23N 1). Step 1: Enter the tcode or go to the below menu path:
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USER MANUAL- Procurement Cycle 2. Step 2: Click on the Other Purchase Order option Number Press Enter for Display
put the Purchase Order
g) Print Purchase Order. 1). Step1: Click on the Print Preview Option
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USER MANUAL- Procurement Cycle 2). Step2: Enter the Print Preview button.
3). Step3: Go to the menu Text>Print
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c. Service Entry Service Entry Sheet: c) Creation of Service Entry Sheet: Tcode –ML81N 2. Step 1: Enter the tcode or go to the below menu path:
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3. Step :2 Click on the Other Purchase Order option give the P.O Number press ENTER
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USER MANUAL- Procurement Cycle 4. Step :3 Click on the Create New option
5. Step :4 Give Short Text and Long Text under Long Txt Tab menu
6. Step :5 Give Quality of Service and Service Timeline.
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USER MANUAL- Procurement Cycle 7. Step :6 Give Completion Date under Addnl Data tab
8. Step :7 Give Document Date and Posting Date under Accept. Data Tab.
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USER MANUAL- Procurement Cycle 9. Step :8 Give Service Location, Period, Responsible Internally (Company Person) and Externally (Vendor Name).
10. Step :9 Click on the Service Sel. Option to fetch the Service Line item.
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USER MANUAL- Procurement Cycle 11. Step :10 Click on the Tick Button
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USER MANUAL- Procurement Cycle 12. Step :11 A new screen will appear then select the Line item and click on the Services option on the top left of the screen press ENTER
13. Step :12 Click the Acceptance button Sheet. See the Green Signal Approved.
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and save the Service Entry which means this Entry Sheet is
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USER MANUAL- Procurement Cycle 14. Step :13 Go to Display Purchase Order and check the Service Entry sheet is visible under tab Purchase Order History.
8. GOODS & SERVICE TAX(GST) The new indirect taxation regime in India from July 2019, (GST) requires the businesses to register in every state of establishment. The registration number obtained upon registration is called as GSTIN (GST Identification Number). The GSTINs obtained by the organization must be maintained in the system, along with their registered addresses.
a. GST Related Oragnisational Change In every (A/R and A/P) transaction relevant to tax, the GSTIN of the organization must be captured in the transaction. Periodically, the GST returns are to be submitted to the Government of India, which must contain the relevant GSTIN. GST returns are to be submitted for each GSTIN separately Government of India will be able to identify the organization only through its GSTIN To facilitate this the Business Place feature needs to be activated. For every GSTIN registration in a company, a business place needs to be created in SAP and assigned to the corresponding company code. In order to ensure that every A/R and A/P transaction (triggered from Materials Management and Sales & Distribution) captures the GSTIN of the organization, the business place must be assigned to Plant Multiple plants in one state can be assigned to one Business Place
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b. GST Related Master Data Change Material Master In Material Master we have to enter “0” in the field “Tax ind. F. material” in the Purchasing Tab which indicates that the material is taxable under GST.
After that in the tab “Foreign trade import” we will enter the HSN code of that material.
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SERVICE MASTER Similarly, while creating service master in Tcode AC03, in the tax indicator field we will enter “0” which means taxable under GST and in the field “Tax Tariff Code” we will enter the relevant SAC code for that particular service.
VENDOR MASTER While creating Vendor in Tcode XK01, we will select the CIN details tab and there in the GST details tab we will select “GST VEN class” as blank which means that the vendor is registered.
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Then in tax category “the TAX number 3” field we will enter the GST number of the vendor.
c. GST Related Process Change While creating PO we will enter the relevant tax code in the Invoice tab of Item details, and in the India tab the control code of the material will appear.
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While creating Invoice in Tcode “MIRO”. After GST we will have to enter the Business place and Section in Basic Data tab under “Bus.place/sectn”.
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