SAP MM Process Flow Document | Accounts Payable | Invoice

April 18, 2018 | Author: Anonymous | Category: Documents
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The Basic Flow of SAP MM Process One of the main areas covered by MM module is Purchasing/Procurement. The purchasing pr...

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By SAP MM Consultant GANESH, Collabera Software Pvt Ltd, Bangalore

SAP MM Process Flow Document

Create Material: T – Code MM01

Select Organizational Views The basic organization views are 1. Basic data 1 / 2 2. Sales organization data 1 /2 3. Purchasing 4. MRP 1/2/3/4 if required 5. Account data 1 / 2

By SAP MM Consultant GANESH, Collabera Software Pvt Ltd, Bangalore

Select organizational data Plant/Storage Location/sales Organization/Distributing channel

By SAP MM Consultant GANESH, Collabera Software Pvt Ltd, Bangalore

Basic data 1 screen

By SAP MM Consultant GANESH, Collabera Software Pvt Ltd, Bangalore

By SAP MM Consultant GANESH, Collabera Software Pvt Ltd, Bangalore

The above screen shows the mandatory field required to create material which is shown in Arrow Marks. Basic Data 2 screen

By SAP MM Consultant GANESH, Collabera Software Pvt Ltd, Bangalore

Sales organization data 1 screen

By SAP MM Consultant GANESH, Collabera Software Pvt Ltd, Bangalore

Sales organization data 2 screen

By SAP MM Consultant GANESH, Collabera Software Pvt Ltd, Bangalore

General Plant screen

By SAP MM Consultant GANESH, Collabera Software Pvt Ltd, Bangalore

Required Mandatory fields are shown in arrow mark

Purchasing view screen

By SAP MM Consultant GANESH, Collabera Software Pvt Ltd, Bangalore

If Automatic PO required in Purchase then the parameter Auto PO marked as mandatory shown in arrow mark.

MRP 1/2/3 views as shown in below screen shot. The arrow marks shows the mandatory fields. If materials is under planning these MRP views are mandatory for creating Material in SAP MM. MRP View 1

By SAP MM Consultant GANESH, Collabera Software Pvt Ltd, Bangalore

MRP View 2

By SAP MM Consultant GANESH, Collabera Software Pvt Ltd, Bangalore

By SAP MM Consultant GANESH, Collabera Software Pvt Ltd, Bangalore

MRP View 3

By SAP MM Consultant GANESH, Collabera Software Pvt Ltd, Bangalore

Plant data View

By SAP MM Consultant GANESH, Collabera Software Pvt Ltd, Bangalore

Plant data 2 view

By SAP MM Consultant GANESH, Collabera Software Pvt Ltd, Bangalore

 Accounting data view screen

By SAP MM Consultant GANESH, Collabera Software Pvt Ltd, Bangalore

In accounting data view Valuation class is mandatory to create Material which is shown in above screen shot. Maintain Price like Standard Price or Moving  Average for Material in this view as shown

By SAP MM Consultant GANESH, Collabera Software Pvt Ltd, Bangalore

SAP System will ask for saving the date for creating Material Finished Product say ‘YES’  And save the document

By SAP MM Consultant GANESH, Collabera Software Pvt Ltd, Bangalore

By SAP MM Consultant GANESH, Collabera Software Pvt Ltd, Bangalore

CREATING VENDOR: T – Code XK01

Vendor is mandatory for creating Purchase order in SAP MM. One who supplies the materials/goods to the company is called vendor. The below screen shots flow shows how to create vendor.

By SAP MM Consultant GANESH, Collabera Software Pvt Ltd, Bangalore

Marinating Vendor address

By SAP MM Consultant GANESH, Collabera Software Pvt Ltd, Bangalore

Reconciliation account is mandatory field in Vendor creation as shown in screen shot

Select the required order of currency for India it is INR in the mark as shown in screen shot.

By SAP MM Consultant GANESH, Collabera Software Pvt Ltd, Bangalore

 After this screen entry you can able to create vendor with some number range

The basic Purchasing documents are required to create Purchase order is as follows:

1. Material Master – MM01 2. Vendor Master – XK01 3. RFQ (Request for Quotation) – ME41 4. Info record – ME11

By SAP MM Consultant GANESH, Collabera Software Pvt Ltd, Bangalore

5. Source List – ME01 6. Purchase requisition – ME51

Creating Purchase Requisition T – code ME51N

Create PR for the material with Plant

Create Info Record – T-Code ME11 with the combination combination vendor and Material

By SAP MM Consultant GANESH, Collabera Software Pvt Ltd, Bangalore

By SAP MM Consultant GANESH, Collabera Software Pvt Ltd, Bangalore

Creating Source List T- Code ME01 Create Source list for Material and Plant and enter validity date

Save the Source list

Creating RFQ (Request for Quotation) T – Code ME41

By SAP MM Consultant GANESH, Collabera Software Pvt Ltd, Bangalore

Enter quotation deadline in the above screen as shown

The Basic Flow of SAP MM Process One of the main areas covered by MM module is Purchasing/Procurement. The purc pu rch has asin ing g pr proc oces ess s is in init itia iall lly y st star artted wh when en the here re is a re requ quir irem emen entt of  material/service from a user. If the material/service can not be obtained from company’s internal resource, the responsible person of that company must find the vendor/supplier which can provide it on the required date. The purchasing process is ended when the payment processing to the vendor that supply the material/service has been done.

In this post, I will explain about the basic of the purchasing/procurement process, which usually known as Procurement Cycle as the following steps.

By SAP MM Consultant GANESH, Collabera Software Pvt Ltd, Bangalore 1. Determination of Requirements

In this step, there is a requirement of material or service, which must be procured externally, from the user. The requirement must be recorded as Purchase Requisition (PR) document in SAPMM. Purchase Requisition (PR) is an internal purchasing document in SAP ERP that is used to give notification to responsible department about the requirement of material/service and to keep track of such requirement. PR must contain clear information about the description and quantity of  the material/service, the required date, and other information. PR can be created directly in SAP MM module with ME51N t-code, or  indirectly by another SAP component, such as: materials planning, maintenance order of PM module, production order of PP module, network activity of PS module, etc. We have explained this in the previous article about MM integration with other modules. modules .

2. We can set in SAP that the PR must be approved or released before it can

be passed to the next step of purchasing processes. We have explained about the PR Release Strategy in the previous article. 3. Determination of the source of supply

 After the PR has been created (and released if needed) in the previous step, st ep,

the th e

respon res ponsi sibl ble e

depar de partm tmen entt

(usu (u sual ally ly

purch pur chasi asing/ ng/pro procur curem ement ent

depa de part rtme ment nt of th the e co com mpa pany ny)) mus ustt pr proc oces ess s it it.. Th The e bu buye yerr of the procurement department must determine the possible sources of supply of  the material/service specified in the PR. Witth ME Wi ME57 57 t-c -cod ode, e, the bu buye yerr ca can n ch chec eck k in th the e SA SAP P wh whet ethe herr the mate ma teria rial/ l/se servi rvice ce ne neede eded d ca can n be ob obta tain ined ed fr from om th the e ex exis isti ting ng out outli line ne agreement agreeme nt (contract or schedul scheduling ing agreement) documents documents or not. If there is no existing outline agreement, the buyer can also check whether there is an existi existing ng info record documents (which contain information information about the

By SAP MM Consultant GANESH, Collabera Software Pvt Ltd, Bangalore

price and delivery conditions of the material/service agreed with vendor in the last Purchase Order/PO) that still can be used(valid) as a reference to create new PO to the same vendor. If there is no valid info record at that time, the buyer can create Request for Quotation (RFQ) documents to one or some prospective vendors. The buyer  can access the procurement history of the material/service specified in the PR, so he can see which vendors that have provided it to the company before. He can also create the RFQ to the new prospective vendor that might have never  provided the material/service to the company before.

R e q u e s t f o r Q u o t a t i o n ( R F Q ) i s an external purchasing document that usually used as bidding process invitation. RFQ is sent by a company to the prospective vendor to request the vendor to provide a quotation which contains information information about the price and delivery condit conditions, ions, terms of payment, etc that the vendor formally agree in case it is appointed to provide the material/service to the company. In th the e RF RFQ, Q, the bu buye yerr mu must st in incl clud ude e the inf nfor orma mati tion on ab abou outt the material/service needed from the vendors (can be copied from the PR), the latest submission date of the quotation, the preferred term of delivery, term of payment, currency, etc. 4. Vendor Selection

If in the previous step, there are some outline agreements or info record documents docume nts that can be used as references to create a PO, the buyer can sele se lect ct or cho choos ose e wh which ich ve vendo ndorr th that at wi will ll be ap appo poin inte ted d to pr provi ovide de th the e material/service at this time.

By SAP MM Consultant GANESH, Collabera Software Pvt Ltd, Bangalore

If there is no outline agreement or info record documents that can be used as references to create PO, in the previous steps, the buyer will send the RFQ documents to one or some vendors. The vendors will send their  quotations which include the information about the price, delivery terms, terms of payment, etc that they offered to the company. The buyer can input that information into SAP with ME47 t-code. With ME49 t-code, the buyer bu yer ca can n co comp mpare are th the e of offe feri ring ng of al alll ve vendo ndors rs th that at ha have ve sen sentt th thei eir  r  quotation. The comparison can be used to determine which vendor should be appointed to provide the material/service to the company.

SAP ERP can also create rejection letters to the vendors that are not selected as the supplier of the material/service. 5. PO Processing

In the previous step, the buyer has selected the vendor which will provide the material/service needed in PR. In this step, the buyer creates a Purchase Order (PO) based on the PR and the reference document (that can be an outline agreement, an info record, or a quotation). Purchase Order (PO) is a legally binding document that issued by a company to a vendor which contains information about description, quantity, delivery date, agreed prices, terms of delivery, and terms of  payment for material or service the vendor will provide to the company. 6. POMonitoring

 After the PO has been sent to the vendor, the buyer has the responsibility to monitor whether the vendor delivers the material/service at the right time on the right place. The buyer can monitor whether the material/service has been received by the person responsible (such as the warehouse man) online with PO history function in the PO document. If  the warehouse man or anyone else has received the material/service and posted the Goods Receipt/Service acceptance document, the PO history

By SAP MM Consultant GANESH, Collabera Software Pvt Ltd, Bangalore

will be updated in a real-time basis. SAP ERP can also has a functionality to give the reminder to the buyer if  the PO item has not been GR in the specified period in respect of the delivery date agreed with vendors. 7. GoodsReceipt

When the vendor delivers the material or perform the service, the responsible person of the company must perform the goods receipt (GR) or service acceptance (SA) transaction. The GR/SA will update the PO history. If the PO item is an inventory material, the GR will increase the stock level of the material. When we perform the GR for the PO item for the first time, SAP will propose the quantity to be GR as the PO order quantity. Depends on the delivery terms agreed with the vendor, the vendor might deliver the material partially. We can post the GR partially too, so when the next material delivery is received, SAP will propose the quantity to be GR as the remaining quantity that has not been GR yet. 8. InvoiceVerification

 After the vendor delivered the material/service; it will send the invoice to the person responsible in the company. Invoice is a formal document issued by a vendor to the company to request the payment for the material or service that the vendor has already provide to the company according to the terms of payment agreed in the PO. An invoice is usually attached with the delivery note (goods receipt) document. The person responsible, usually an accounting staff, will perform the three way matches. He will check whether the invoice information (such as price, terms of payment, etc) is the same with the PO, and whether the PO item has been received (GR/SA). If yes, then he will post the Invoice

By SAP MM Consultant GANESH, Collabera Software Pvt Ltd, Bangalore

Receipt (IR) transaction in MM module. The IR transaction will credit the account payable of the vendor which specified in the "pay to" partner  function in the PO. 9. PaymentProcessing

 After the IR transaction has been posted, the vendor’s account payable will increase and the company must process the payment to that vendor  as stated in the terms of payment of the PO. The payment transaction will be pe perf rform ormed ed in FI mo modu dule le.. Af Afte terr th the e pay payme ment nt has be been en pos poste ted, d, th the e vendor’s account payable will be debited and the cash or bank account will be credited. In the next article I will explain the 1st step of the procurement cycle in more details: The Determinati Determination on of Requirement Requirement.. You can get alert when I post new article if you subscribe

Create Purchase order: T- Code ME21N

By SAP MM Consultant GANESH, Collabera Software Pvt Ltd, Bangalore

Maintain the basic parameters to create Purchase order like, Plant/Material/Vendor/Net Price/Organization data/ Invoice Tax code/PR number/RFQ Number/ PO Document Type/Currency as shown in the arrow marks in screen shots.

By SAP MM Consultant GANESH, Collabera Software Pvt Ltd, Bangalore

Maintain the Tax Code in invoice at Item details.

Save the Purchase order.

Goods Receipt: T –Code MIGO Create Goods Receipt for the Purchase order and check by using tick mark button and save the document.

By SAP MM Consultant GANESH, Collabera Software Pvt Ltd, Bangalore

Check Item OK. And Post the GR

By SAP MM Consultant GANESH, Collabera Software Pvt Ltd, Bangalore

Enter the Purchase order number for Goods Receipt The Display of the Material document is shown in the below screen shot

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