PO&SO

[Former Member]

Hi All,

What is Purchase Order, Sales Order, Purchse Requistion, can any body explain me whole process in MM.

Thanks & regds,

Srinivas.

[Former Member]

Hi srinivas,

I am an MMfunctional consultant ,so iam sending you the detailed of MM from A to Z.Please dont hesitate to give me rewards points.

<b>Overview of Material Management</b>

Records:

• Material Master

• Vendor Master

• Info Record

• Source List

Purchase Management :

• Purchase Request

• Request for Quotation

• Purchase Order

• Contract

• Schedule Agreement

• Subcontracting

• Service PO

• Automatic PO

Inventory Management:

• Goods Receipt

• Goods Issue

• Physical Inventory

• Stock Transport Order

General:

• Quota Arrangement

• MRP(Material Requirement)

• BOM (Bill of Material)

• List Displays / Reports

• Overview of ABAP/ 4

Customization:

• Organization Structure

• Pricing Procedure

• General Settings Involved

• Purchase Group / Material group

MM Process Flow

The typical procurement cycle for a service or material consists of the following phases:

1.Determination of Requirements

Materials requirements are identified either in the user departments or via materials planning and control. (This can cover both MRP proper and the demand-based approach to inventory control. The regular checking of stock levels of materials defined by master records, use of the order-point method, and forecasting on the basis of past usage are important aspects of the latter.) You can enter purchase requisitions yourself, or they can be generated automatically by the materials planning and control system.

2. Source Determination

The Purchasing component helps you identify potential sources of supply based on past orders and existing longer-term purchase agreements. This speeds the process of creating requests for quotation (RFQs), which can be sent to vendors electronically via SAP EDI, if desired.

3. Vendor Selection and Comparison of Quotations

The system is capable of simulating pricing scenarios, allowing you to compare a number of different quotations. Rejection letters can be sent automatically.

4. Purchase Order Processing

The Purchasing system adopts information from the requisition and the quotation to help you create a purchase order. As with purchase requisitions, you can generate Pos yourself or have the system generate them automatically. Vendor scheduling agreements and contracts (in the SAP System, types of longer-term purchase agreement) are also supported.

5. Purchase Order Follow-Up

The system checks the reminder periods you have specified and - if necessary - automatically prints reminders or expediters at the predefined intervals. It also provides you with an up-to-date status of all purchase requisitions, quotations, and purchase orders.

6. Goods Receiving and Inventory Management

Goods Receiving personnel can confirm the receipt of goods simply by entering the Po number. By specifying permissible tolerances, buyers can limit over- and under deliveries of ordered goods.

7. Invoice Verification

The system supports the checking and matching of invoices. The accounts payable clerk is notified of quantity and price variances because the system has access to PO and goods receipt data. This speeds the process of auditing and clearing invoices for payment.

MM TABLES FLOW

COMMON TABLES USED IN MM

1) EINA : PURCHASING INFOTYPE DATA.

2) EINE : PURCHASING INFO RECORD(GENERAL DATA)

3) MARA :

4) MAKT

5)MARD (STORAGE LOCATION)

6)MAST

7)EVAN (PURCHASE REQUISTION)

8)EBKN

Purchase order is like this as in general.

Purchase Order

To,

Prime Electronics

Mumbai

I hereby confirm the order placed for Attendance Recording System the

total cost of which is 45,455.00 (Forty Five Thousand Four Hundred Fifty

Five Only) inclusive of all taxes and the breakup is as below

Proximity Reader 22,500.00

Reader 7,875.00

Attendance Software 10,400.00

Proximity Cards(50 pcs) 4,680.00

With Lanyard

Total 45,455.00

Thanking You

[Former Member]

Hi Hitesh,

Thank u once again, but ur answer is not fully related to my question,pls can u check my question once.

Thanks&regds,

srinivas.

[Former Member]

HI

<b>Purchase Order</b>

material number, short text, purchase order quantity, order quantity, delivery date, net price, order price unit, account assignment category, material group, plant, storage location, item cateory in purchasing document.

it contains the header -ekko details ekpo material details from mara makt short text etc.

well if you want to get all details then use BAPI_PO_GET_DETAILS

it will automatically give you all the details without writing any tedious select statements

sales oder

The open sales order are those for which the ordered quantity is not delivered to the customer. This generally happens when custmer had not gven the payment.

PR- asking approval to ur company to purchase the materials

means Concerned Departments will raise the request that these good have to

be needed and have to purchase(We can say Purchase Requisition is an Internal Order with in the departments of the company)

see ME51 for better understandability.

PO- after getting approval, send a po to vendor to get materials here you are raising the request to the Outside Vendors.

see ME21 for better understandability.

[Former Member]

Hi Srinivas,

Pass ur mail id . i will mail you the relevant material also.

rewards points

hitesh kumar

[Former Member]

Hi Hitesh,

Thank u very much, can u send me the detailed explaination of PO,SO, Purchase requistion etc.

balla.srinivas9@gmail.com

thanks&regds,

srinivas.

[Former Member]

ELEMANTARY PROCESS TO PRESENT THE BUSINESS TRANSACTION IN FI-CO

COMPANY CODE-PSL

BUSINESS AREA

FORMULATION VACCINE R&D HO

PROFIT CENTRES

• CRITICAL CARE VACCINE FINANCE

• PRO UNICEF FORMULATION CORPORATE

• GROW DOMESTIC -GRD ACCOUNTS

• DIACAR EXPORT -CRD SECRETARIAL

• BOH CHIRON -FRD H.R.

• EXPORT-R PANHEBER -ARD ADMIN.

• EXPORT-S COMMON SERVICES -NPRD

• EXPORT-NEPAL -WORKS MEDICAL RESEARCH

• COMMON SERVICES CORPORATE

-WORKS

-LOGISTICS

-PROCUREMENT

-QUALITY ASSURANCE

-TRAINING

-REGULATORY AFFAIRS (DOMESTIC)

-REGULATORY AFFAIRS (INTERNATIONAL)

-INTELLECTUAL PROPERTY RIGHTS

-CORPORATE

-SALES ADMINSTRATION

MM Process flow

The typical procurement cycle for a service or material consists of the following phases:

1. Determination of Requirements

Materials requirements are identified either in the user departments or via materials planning and control. (This can cover both MRP proper and the demand-based approach to inventory control. The regular checking of stock levels of materials defined by master records, use of the order-point method, and forecasting on the basis of past usage are important aspects of the latter.) You can enter purchase requisitions yourself, or they can be generated automatically by the materials planning and control system.

2. Source Determination

The Purchasing component helps you identify potential sources of supply based on past orders and existing longer-term purchase agreements. This speeds the process of creating requests for quotation (RFQs), which can be sent to vendors electronically via SAP EDI, if desired.

3. Vendor Selection and Comparison of Quotations

The system is capable of simulating pricing scenarios, allowing you to compare a number of different quotations. Rejection letters can be sent automatically.

4. Purchase Order Processing

The Purchasing system adopts information from the requisition and the quotation to help you create a purchase order. As with purchase requisitions, you can generate Pos yourself or have the system generate them automatically. Vendor scheduling agreements and contracts (in the SAP System, types of longer-term purchase agreement) are also supported.

5. Purchase Order Follow-Up

The system checks the reminder periods you have specified and - if necessary - automatically prints reminders or expediters at the predefined intervals. It also provides you with an up-to-date status of all purchase requisitions, quotations, and purchase orders.

6. Goods Receiving and Inventory Management

Goods Receiving personnel can confirm the receipt of goods simply by entering the Po number. By specifying permissible tolerances, buyers can limit over- and underdeliveries of ordered goods.

7. Invoice Verification

The system supports the checking and matching of invoices. The accounts payable clerk is notified of quantity and price variances because the system has access to PO and goods receipt data. This speeds the process of auditing and clearing invoices for payment.

ERP MM - Inventory Management

Inventory management is a component of Material Management. This gives information about the inventory management processes i.e. Receving material with or without reference, material issue with planning or without planning, movements of materials (Inter company, Intra company, within plant, SLoc to SLoc, Material to Material, Batch to Batch, different stock type transfer posting), Material reservations & Physical Inventory.

Inventory Management manages stock in Quantity & also Value basis.IM automatically updates Stock & G/L Accounts when material is received or issued & provides which accounts are updated. Apart from accounts cost center is also updated.Inventory Management can manage various types of a company's own special stocks and externally owned special stocks separately from standard stock.

Pur info record is nothing but a master data like thing which will be maintained for different materials to determine the prices etc.It Specifies the number that uniquely identifies a record.

For Example: an info record is based on Plant Vendor and Material

Based on these three the Material Prices will be calculated

for different combinations different values are taken into consideration.

During pricing it brings these values automatically based on this info record.

Use ME11 Tcode to create this record.

Reward points if helpful.

hitesh kumar