Order as direct material

[Former Member]

Hi Experts,

We are on SRM 7.0, ECC 6.0 (classic)

Our indirect procurement is working fine. Please guide as to what changes to make from config side to enable direct material procurement from SRM.

I am aware of the process in portal, but any backend settings?

Thanks

[Former Member · Accepted solution]

Have you replicated your materials to SRM?

If so all you need to do is go shopping, select the material and once in the shopping cart click on the 'Order as Direct Procurement' button and the rest should be all ok from there.

Keith

[Former Member · Accepted solution]

Thanks for the reply Keith.

Yes materials are replicated and I can search them under internal goods. But are there no attributes required or some local purch org to be created before I start shopping?

Any number range/transaction type definintion??...Since PO will be created in SRM even though its classic

Thanks

Edited by: sivakumar lakshminarayanan on Jun 23, 2011 7:45 PM

[Former Member · Accepted solution]

Please note by standard SRM creates local PO (within SRM) for all direct materials when "Order as Direct" flag is checked and account assignment tab will be disabled. If you want the PO to be created in backend ERP system for direct materials then you need to do some custom development.

Thanks,

Jagadish

[Former Member · Accepted solution]

Jagdish,

Can you explain the significance of having the PO created in ECC? When to go for this kind of a scenario? Even under normal circumstances, SRM PO created from order of direct material will be replicated to ECC...so how are the 2 scenarios (PO in SRM & PO in ECC different?)

And what are number range/transaction types to be defined for local SRM PO?

Thanks

[Former Member · Accepted solution]

It depends on what your business scenario demands.

In case of Classic scenario PO will always be created in backend ECC system and SRM will not hold any PO data. This scenario is suitable for those who wants to make use of SRM as the requisition/sourcing system and backend ECC as system of records. In this case generally Doc type EC would be used, internal number range will be created in SRM and maintained in the org structure. Then same doc type EC would be created in backend ECC system with external number range and make sure number range remains same in both systems.

By standard design SRM requires account assignment in order to create PO in backend system (CXlassic scenario).

But for direct material scenario account assignment is not required and hence the flag "Order as direct material" was introduced to let the system that it is direct material and ignore account assignment data and create PO within SRM. For this you need to maintain local PO doc type ex. ECPO in SRM with internal number range. Also maintain same doc type (ECPO) in ECC with external number range. When direct materials are used with Order as direct flag then doc type ECPO would be picked and create PO locally.

Regards,

Jagadish

[Former Member · Accepted solution]

Jagdish,

You have answered one part of my question. Thanks.

However, in direct material ordering, under normal scenario my classic scenario will also function like Ext classic. So local SRM PO will be created which will be replicated to backend. Now how is this different from doing a customisation and creating the leading PO also in ECC than in SRM.

As in, I mean is there any business impact?. Under normal circumstances too, PO will be replicated if not created there. So only thing I notice is that direct material PO can be changed in SRM and not ECC. Anything apart from this changes? I will still be able to issue goods against this PO once goods enter my inventory.

Sorry to ask you in detail but just wanted to know the correct thing and not guess it.

Thanks for your cooperation.

[Former Member · Accepted solution]

Hi Shiva,

there is no difference in business impact. In both the cases i.e. whether you want to create local SRM PO or you want to create the PO in ECC backend system, the accounting entries depend on the settings in automatic account configuration done in ECC system. You can continue to create confirmation and invoice either in SRM system or ECC backend system against the PO.

If you want to create the PO in ECC backend system, you have to clear the accounting entries in backend system in SRM and hide the tab 'order as direct material'. Create a dummy field which indicates that the material is 'to stock' material for ecc. Now, the accounting entries will happen based on the configuration.

Thanks and regards,

Ranjan

[Former Member · Accepted solution]

Thanks Ranjan.

So I plan to go for normal scenario where PO is created in SRM.

I created a direct material SC and after approval in BBP_PD it shows 'item in transfer process' and log in RZ20 shows Shopping cart 0010000203 (PReq. 😞 BBP_PD 002 Interface data contains errors. So dont know what went wrong. Also I am able to create ME21N PO from same data in ECC.

Can you check if my number range definition is right?

In SRM: 03 660000000 669999999 (ECDP has internal number range as 03, so gave 03 here)

In ECC: 66 660000000 669999999 check box on external

and defined transaction type as ECDP with following setting

ECDP Direct PO from SRM 10 45(int) 66(ext)

Please let me know what could be wrong?

Thanks

Edited by: sivakumar lakshminarayanan on Jun 24, 2011 11:38 AM

[Former Member · Accepted solution]

Hi Shiva,

Have you set the document type for PO in ECC properly? Keep the document type in ECC same as the transaction type 'ECDP' so that the same number range is available in both the systems.

Thanks and regards,

Ranjan

[Former Member · Accepted solution]

Hi Ranjan,

As I mentioned, ECDP is created in ECC.

In ECC: 66 660000000 669999999 check box on external

and defined transaction type as ECDP with following setting

ECDP Direct PO from SRM 10 45(int) 66(ext)

Also my local SRM PO is getting created now but this is not transferred to ECC

Do you notice any discrepancy in the number range settings?

What else could be wrong?

Ranjan/Jagadeesh pl help.

Thanks

Edited by: sivakumar lakshminarayanan on Jun 24, 2011 7:18 PM

[Former Member · Accepted solution]

This topic is getting deviated from your first thread question. Earliere you said how to use Order as Direct Material and that question was answered I guess. Now you are asking about the error which is a new quetion. You should open a new thread by assigning points to this thread.

Based on your error message it seems a PR is being created instead of a PO. It happens when the SC is not complte, ex. Fixed Vendor is not assigned. This is standard SRM behaviour. How did you create SC? using internal goods? How was the vendor assigned?

You might have assigned desired vendor and not Fixed vendor to the SC. To create a PO, fixed vendor is required. That is why system is trying to create a PR instead of PO. Please check your SC and assign fixed vendor, this will resolve the issue. Otherwise develop the Badi to create Po even when desired vendor is assigned to the SC for direct material. This all depends on your business scenario how you want to process direct materials. Or maintain a contract for that material so that system will assign it to the SC as a fixed vendor and a PO would be created.

If you still have any further questions open a new thread by closing this one.

Regards,

Jagadisg

[Former Member · Accepted solution]

Jagdish...I thought this forum was about exchanging ideas and helping each other out and not harping about points. I raised a question in the same thread as it was a continuity of the issue I faced.

Btw I have an info record and am not assigning a desired vendor....it is creating a local PO in SRM and failing to create a PO in ECC through an internal goods/services SC.

PS: I am raising a new thread and giving you your points.

Thanks