SAP mm-fi INTEGRATION step BY Step Notes

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SAP mm-fi

INTEGRATION sTEP BY Step

Notes Ashraf

Corporate & Online Trainer

Material Management Concept:

Material Management is one of the important module in SAP. These module supports the Procurement and Inventory Function occurring in day to day business operations.

This module contains many aspects such as Purchasing,

Good Receiving, Material Storage,

Consumption based Planning and Inventory

MM Module is tightly integrated with other modules of SAP R/3 like Financial Accounting, Controlling, Sales and Distribution, Quality Management, Plant Maintenance, Production Planning and Warehouse Management

It supports all phases of Material Mgmt like Material Planning and Control, Purchasing, Good Receiving, Inventory Mgmt and Invoice verification

MM Organization Structure

Company Code

Plant 1 Plant 2 Plant 3 Plant 4

Storage Location

Purchase Groups

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Purchasing Organization:

It is an MM Org unit, used to categories inventory transactions according to its nature.

Multiple Plants can be assigned to one Purchasing Org.

Plant:

It is a physical location where the Production Activity and Procurement transactions are performed. In SAP Plant can be Production Unit, Sales Office or a Corporate Office.

Note: All Inventory transactions must be Posted at Plant Level

Automatic Posting of Inventory Valuation Transactions in Fin. Accounting depends on Assignment of Company Code to Plant

This Assignment can be 1 : 1 or 1 : N ratio (Company Code Vs Plant) Note: One Plant Cannot be Assigned to Multiple Company Codes Storage Location:

The Place where the Stock are kept. These Locations are maintained under Plant Importance Parameters of MM – FI Integration are

Company Code and Plant Assignment Valuation Level

Moment Type Material Master

Transaction Keys or Event Keys Valuation Sting

Valuation Grouping Code or Valuation Modifier Account Modifier or General Modifier

Valuation Class Posting Keys Sub Module of MM Material Planning Purchasing Inventory Mgmt Vendor Valuation Invoice Verification Statutory Requirement

Procurement To Payment ( P To P Cycle )

All Inventory Managed transaction are posted from MM Module and due to Integration settings, the valuation will hit Financial Accounting in the form of Journal Entries

Purchase Requisition Purchase Order

Goods Received → Inventory A/c Dr To GR/IR Clearing A/c Invoice Receipt → GR/IR Clearing A/c Dr To Vendor A/c

Outgoing Payment → Vendor A/c Dr To Cash / Bank A/c

Procurement of Goods or Assets or Services (Procurement Process P 2 P Cycle )

Goods Receipt Accounting Entry Invoice Verification Accounting Entry

Inventory Account Dr GR/IR Clearing A/c Dr

To GR/IR Clearing A/c To Vendor A/c

Vendor Payment Accounting Entry Material consumption against cost centers production order Accounting Entry

Vendor Account Dr Consumption A/c Dr

To Cash/Bank A/c Inventory A/c

Finished Goods Received From Production Dept. Accounting Entry

Inventory Finished Goods A/c Dr To Change in Stock A/c or To Increase/Decrease A/c or To Factory Production Output A/c

Delivering the Finished Goods To Customer

Movement Type

Goods movement in Logistic is tracked through movement type.

This must be provided against each inventory transaction

List of Movement Type

101 - Good Received with Reference to Purchase Order

102 - Reversal of Movement Type 101 (Cancellation of Good Received) 122 - Return Delivery of the Supplier

201 - Goods Issued to Cost Center for Consumption 241 - Goods Issued to the Assets

261 - Goods Issued Against Production Order 309 - Transfer of Posting from Material to Material

311 - Transfer Posting from Storage Location to another Location 545 - Receipt of Product from Sub-Contractor

554 - Scrapping of Goods

561 - Initial Entry of Stock Balances (Opening Stock) 601 - Goods Issued for Delivery

651 - Good Return from Customer

701 - Inventory Differences Unrestricted Stock

Note: Based on Movement Type system will control the transaction keys. Inventory GL Accounts are maintained against transaction keys

Material Types:

It is used to classify the materials based on material nature and attributes The Material Master must be created with ref. to material type

Each Material Type Control

No. Range of Material Master (Internal/External)

Field Status of Material Master, Views, and Screens Settings It Controls Controlling and Accounting information

List of Material Types:

ROH - Raw Material FERT - Finished Goods VERP - Packing Material ERSA - Spare Parts DIEN - Services

HALB - Semi Finished Goods PIPE - Pipe Line Products HAWA - Traded Goods

Note: Against Material Type, we must maintain quantity update and value update (Material Type Attribute) for each Plant and Valuation Area.

On setting of this indicator system will updates all quantity movements and value of material in a Material Master Material Master:

It is Important Logistic Master Data and consists of all the imp or Key Properties relevant to other modules.

It is maintained with multiple views relevant to MM, SD, PP, PM, WH, FI and CO

It indicates Material Master is central component used for Integration between all others module

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Plant Or Valuation Area:

Plant is Logistic Org unit which is used to track or maintain all inventory transactions All the stocks or Material Master must be maintained at Plant Level

Each Plant must be assigned to a Company Code Valuation Area:

Material can be valuated at Plant Level or at Company Code Level

The Level at which the Materials are valuated into Financial Accounting is called as Valuation Area or Valuation Level Valuation Level at Company Code:

The Material Price must be equal across all the Plants of a Company Code

Valuation At Plant Level

Material Prices are maintained at Plant Level and Price can be differentiated

It is advisable to maintain material valuation at Plant Level Price Indicators:

The Price indicators of Material Master Place a vital/imp Role in Material Valuation Below are Price Indicator available for Valuate inventory

S- Standard Price V- Moving Average Price Standard Price:

The nature of material prices which are Fixed or not Fluctuated frequently are managed with Price indicator ‘S’ and also the in-house manufacturing materials for which the Price is under control also managed with Standard Price The standard price is maintained in material master. All the material/goods movements must be evaluated with the standard price maintained in material master

Any price difference will be posted to Price Difference Account

The Production Department produced 10 more quantity at 12/- Actual Cost.

The material is valuated at Rs.10/- and difference of Rs.2/- will be posted to Price difference account or Production Variance Account

List of Transaction Keys:-

Moving Average Price:

This indicator is maintained for materials for the Prices which are much fluctuated and not under the control of Organization.

Description

Price Indicator

Standard

Price Actual Price Quantity Value Difference

Material XYZ X 10 5 50

Material XYZ X 12 5 60 10

Ex: - External Procured Materials, Services, Traded goods.

System will always calculate a New Price at each Goods Movement Material Valuation is done at New Price

Transaction Keys:

The inventory GL A/c are mapped to Transactions Keys with the Combination of Chart of Acc (COA), Valuation Grouping Code, Valuation Modifier or Account Modifier and Valuation Class

Based on the Valuation Sting of the movement type system will automatically hit the respective transaction keys.

This code is used to maintain same GL Accounts across all the Plants or to differentiate inventory GL Accounts at Plant Level

COA Plant CoCd Val Grouping Code

1 10 T100 A

1 20 T100 A

1 30 T100 B – Different Chart of Account The Valuation grouping code maintained with above combination COA, Plant, CoCd Valuation Grouping Code

Trans Key COA Valuation Group GL Accounts

BSX T100 A 200100

BSX T225 B - Error 200110

The Valuation Grouping Code maintained with above combination COA, Plant, CoCd, Val Grouping code

Valuation Modifier or Account Modifier:

This Valuation modifier or Account Modifier are used to differentiate Offsetting inventory GL Account.

These modifiers are used along with Transaction Keys like

GBB – (Offsetting Inventory Account) and PRD – (Price Differences) Valuation Grouping Codes:

FR1 Freight Cleaning Account FR2 Freight Provisions Account

GBB Offsetting Entry for Inventory Posting KON Consignment Payable

PRD Cost (Price) Differences

UMB Gain/Loss From Inventory Revaluation

WRX GR/IR Clearing Account

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List of Account Modifier or General Modifier:

SL MODIF DESCRIPTION

1 AUF Production Receipt from Production Order with Account Assignment 2 AUA Production Receipt from Production Order without Account Assignment 3 BSA Initial Stock upload or Opening Stock Balances of Inventory

4 INV Expenses or Incomes form Inventory Differences 5 VAX Goods Deliver to Customer without Account Assignment 6 VAY Goods Deliver to Customer with Account Assignment 7 VBR Inventory Consumption

8 VNG Scrapping

Valuation Class:

It is used to differentiate Inventory GL Accounts based on Material nature Valuation class is assigned to the material master under Accounting view.

Note: The Valuation Class is maintained with reference to Material Type Material Master also created with Reference Material Type

While assignment of Valuation Class to the material master, system validates material types of Material Master and valuation class. If any mismatch will cause error

Note:

All Inventory and goods movements will be posted by logistic users with Movement Type The respective transactions keys area associated with movement type

Against transaction keys inventory GL Accounts are maintained with the Combination of COA, Val Grouping Code, Account Modifier or General Modifier and Valuation Class

Trans Key Chart of Acc Val Grp code Account Modifier Gl Accounts Remarks

BSX 1 A 200100

GBB 1 A VBR 400000 Consumption

GBB 1 A VAX / VAY 400010 Delivery

GBB 1 A AUA / AUF 300200

GBB 1 A VNG 400020

SL GL Acc No Text

1 Finished Goods 220000

2 Semi Finished Goods 221200

3 Raw Material Inventory 221000

4 Packing Material Inventory 221100

5 Raw Material Consumption 400000

6 Cost of Goods Sold 400010

7 Factory Output Production 300200

Trans Chart of Acc

Val rp Code

Account Modifier

Valuation Inventory GL Account

Account Descript

BSX 1 A - 1000 221000 Raw Material

BSX 1 A - 2000 220000 Finished Goods

BSX 1 A - 3000 221200 Semi Finished Goods

GBB 1 A VBR 1000 400000 Raw Material Consumption

GBB 1 A VBR 3000 400001 SFG consumption

WRX 1 - - - 100900 GR/IR Clearing Acc

Configuration Steps for MM – FI Integration

Steps Description T-Code Table Name

Define Plant OX10

SPRO > Enterprise structure > Definition > Logistic general >

Define copy, delete check plant

Define Location

SPRO > Enterprise structure > Definition > Logistic general >

Define Location

Define Division OVXB

SPRO > Enterprise structure > Definition > Logistic general

>Define copy, Delete, check division

Maintain Storage Location OX09 VC_T001L

SPRO > Enterprise structure > Definition > materials

management > Maintain storage location

Maintain Purchasing Organization OX08 V_T024E

SPRO > Enterprise structure > Definition > materials

management > Maintain Purchase Organization

Assign Plant To Company Code OX18

SPRO > Enterprise structure > Assignment > logistics General

> Assign plant to company code

Assign Business Area To Plant/valuation Area and Division OMJ7 SPRO > Enterprise structure > Assignment > logistics General

> plant /valuation area–Division

Assign Purchasing Organization To Company Code OX01 V_T024E SPRO > Enterprise structure > Assignment > Materials

management > Assign purchasing organization to company

code

Assign Purchasing Organization To Plant OX17 W_T024W

SPRO > Enterprise structure > Assignment > Materials

management > Assign Purchase Organization to Plant

Create Purchasing Groups OME4 V_024

SPRO > Materials management > Purchasing > Create

purchasing groups.

Define Material Group OMSF V023

SPRO > Logistic General > Material Master > Settings for Key

Fields > Define Material groups

Maintain Company Code For Material Management OMSY V_001_MARV SPRO > Logistic General > Material master - Basic settings >

Maintain company code for materials management

Define Attributes Of Material Types OMS2 MTART

SPRO > Logistic General > Material master-Basic settings >

Material type-Define attributes of material types

Set Tolerance Limits For Price Variance For Purchase Order OMEU VV_169G_PS SPRO > Material management > Purchasing > Purchase Order

> Set Tolerance Limits for Price Variance

Plant parameters 159L V_159L

SPRO > Materials management > Inventories management &

Physical inventory > Plant parameters

Set Tolerance Limits for Goods Receipt OMC0 V_169G

SPRO > Materials management > Inventories Management

and Physical Inventory > Goods Receipt - Set Tolerance Limits

Maintain Default Values For Tax Codes OMR2 V_169V_ST

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Steps Description T-Code Table Name

SPRO > Materials management > Logistics invoice verification

> Incoming invoice> maintain default values for tax codes

Set Tolerance Units for Invoice Verification OMR6 V_169G SPRO > Materials Management > Logistics Invoice Verification

> Invoice Block > Set Tolerance Limits

Define Automatic Status Change OMRV V_169P_K

SPRO > Materials management > Logistics invoice Verification

> Invoice verification in back ground > Define automatic status

change

Group together valuation areas OMWD V_001K_K

SPRO > Material management > Valuation and account assignment > Account determination > Account determination

without wizard > Define Valuation Classes

Define valuation classes OMSK V025

SPRO > Material management > Valuation and account assignment > Account determination > Account determination

without wizard > Define Valuation Classes

Assignment of Accounts for Automatic Postings

(MM to FI Integration ) OBYC T100BSX

SPRO > Material Management > Valuation and Account Assignment > Account Determination > Account Determination

without wizard > Configure Automatic Postings

Creation of Raw Material Master MM01

Logistics > Materials management > Material master-material-

Create(General) > Immediately

Document Types and No. Ranges OBA7

WE - Goods Receipt (FBN1) - No. Range 50

WA - Goods Issue (FBN1) - No. Range 49

RE - Goods Invoice Receipt (FBN1) - No. Range 51

To Open Material Periods MMP

Logistics > Materials management > Material Master > Other-

Close period

Creation of Vendor Master KX01

Purchase order creation ME21N

Goods receipt MIGO

Logistics > Material management > Inventory management >

Goods movement > Goods receipt - for purchase order > PO

number known

View Accounting Document MIGO

View Relation Document

Environment > Doc Envir > Relationship Browser

To View GL Line Items FBL3N

To View Material Documents MB03

To View Stock Overview MMB3

Sap Menu > Logistic > Inv Management > Environment > Stock

> Stock overview

To View Stock Register MB5B

Logistics > Materials management > Inventory management

>Environment > Stock for posting date

Invoice Verification (Invoice Received) MIRO

Logistics > Materials management > Logistics-Invoice

verification > Document entry-> Enter invoice

Step 01 - Define Plants T-Code 0X10

Path: SPRO → Enterprise structure → Definition → Logistic general → Define copy, delete check plant → Double click on Define Plant → New Entries button

Plant T100

Name T100 - Tata Plant - Hyd Factory calendar 01

Save

Country IN Enter

Save

Step 02 - Define Location T-Code 0X10

Path: SPRO → Enterprise structure → Definition → Logistic general → Define Location → New Entries button

Plant T100

Name T100 - Tata Plant - Hyd Factory calendar 01

Save

Country IN Enter

Save

Step 03 - Define Division: T Code OVXB TSPA

Path :SPRO → Enterprise structure → Definition → Logistic general →Define copy, Delete, check division → Define Division → New Entries button

Note : Division is organizational unit of SD, which is used to track sales or profits from Salable Materials or services

Division are used to identity or track business area against logistic transactions Step 04 - Maintain Storage Location T Code OX09 – T001L

Path :SPRO → Enterprise structure → Definition → Materials Management → Maintain Storage Location Give the plant T100 Enter

Select New Entries

Sloc Description

T100 Raw Material

T101 Finished Goods

T102 Semi Finished Goods

T103 Packing Material

T104 Other Material

Save

Step 05 - Maintain Purchasing Organization T Code OX08 – T024E

Path :SPRO → Enterprise structure → Definition → Materials Management → Maintain Purchase Organization

→ New Entries button

Purchase organization Description

T100 T100-Hyd Pur Org

T101 T100-Bom Pur Org

Step 06 - Assign Plant To Company Code: T code is OX18

Path :SPRO → Enterprise structure → Assignment → logistics General → Assign plant to company code → New Entries button

CoCd Plant Name of the Plant Status

T100 T100 T100-Plant Hyd T100-Tata Company

T100 T101 T100-Plant Bom T100-Tata Company

Save

Division Name

T1 T100 – Tata Hyd Division

T2 T100 – Tata Bom Division

Save

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Step 07 - Assign Business Area To Plant/valuation Area and Division – T Code OMJ7

Path: SPRO → Enterprise Structure → Assignment → Logistics General → Plant /Valuation Area–Division

→ Select plant /valuation area – Division button → New Entries button

Plant Division Name BusA Description

T100 T1 T100-Hyd T101 T100-Hyd Bus Area

T101 T2 T100-Bom T102 T100-Bom Bus Area

Save

Step 08 - Assign Purchasing Organization To Company Code T .Code OX01 – T024E

Path : SPRO → Enterprise Structure → Assignment → Materials Management → Assign Purchasing Organization To Company Code → Position → Purchase org :T100

Porg Des CoCd Company Name Status

T100 T100-Hyd Pur Org T100 T100-Tata Company T101 T00-Bom Pur Org T100 T100-Tata Company Save

Step 09 – Assign Purchasing Organization To Plant: T Code OX17 – T024W

Path : SPRO → Enterprise structure → Assignment → Materials management → Assign Purchase Organization to Plant → New Entries button

Porg Description Plant Name1 Status

T100 T100-Hyd Pur Org T100

T101 T00-Bom Pur Org T101

Save

Step 10 - Create Purchasing Groups T .Code – OME4

Path : SPRO → Materials management → Purchasing → Create purchasing groups → New Entries

Purchasing group Desc Pur Grp TelNo Fax Tel

T10 T100-Pur-Hyd 123456689

T11 T100-Pur-Bom 654825325

Save

Step 11 - Define Material Groups: ( OMSF)

Path : SPRO-Logistic General → Material Master → Settings for Key Fields → Define Material groups → New Entries button

Material group Material Group Desc AGrp Desc1 Desc2 T100FG T100-Finished Goods

T100HB T100-Semi Finished Goods T100RH T100-Raw Material

T100VP T100-Packing Material

T101 Key Boards

T102 Mouses

T103 CPU Cabinet

T104 Monitors

Save

Step 12 - Company Code For Material Management : T Code OMSY

Path :SPRO → Logistic General →Material master - Basic settings → Maintain company code for materials management → Select Position

Cocd Comp Name Year Per FYr MP FYr LM ABp DBp

T100 T100-Tata 2019 12 2019 11 2018 12 X

Note : This period enter carefully, if you once enter it is not modified Select check box Allow Back Period Posting

Save

Ignore the warning message press enter

Note: In some cases, if we are unable to do changes for the period, delete the Plant (OX18) assignment and then you can do above step.

Once done this step, reassign the plant to company code in OX18

Step 13 - Define Attributes Of Material Types: T-Code OMS2

Path :SPRO → Logistic General → Material master-Basic settings → Material type → Define attributes of material types → Select position button

This step is use to Activate the Quantity value update in the material master against the accounting view Select Material Type ROH

Double Click on Folder Quantity/Value Update and Select Qty Upd and Value Update check box → Position Valuation Area T100

Material Type Enter

Save

Select  Arrow

Maintain the same settings for below material types

Select Material Type HALB – Semi Finished Good Products Select Material Type FERT – Finished Products

Select Material Type VERP – Packing Material

Valuation Material Qty Upd Val Update Pipe Mand Pipe Allowd

T100 ROH X X

T100 VERP X X

T100 HALB X X

T100 FERT X X

Save

Select Mtype :VERP

Click on

to add Costing View to the Material Ledger Select Costing (To Activate The View)

Save

Step 14 - Set Tolerance Limits For Price Variance For Purchase Order T-Code: OMEU (T. Code is not Working)

Path: SPRO → Material management → Purchasing → Purchase Order → Set Tolerance Limits for Price Variance

Select TIKY : PE & SE for company code 1000

Against CoCd 1000 → Select the Tolerance Keys PE & SE Copy As → and Change CoCd

Press Enter → SE → Cash Discount → CoCd

Cocd Company Name TlKy Description

T100 T100-Tata PE Price Variance: Purchasing

T100 T100-Tata SE Max Cash Disc. Deduction(Purchasing)

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Save

Note: System will cross check the Price Variances and Cash Discounts of Purchase Order to Purchase Requisition Error Message Generate in case of violation of Tolerances

If you want to fix some Tolerance Limit to PE and SE Select PE and Click on Detail Button

Cocd Company Name TlKy Description

T100 T100-Tata PE Price Variance: Purchasing

Select

Cocd Company Name TlKy Description

T100 T100-Tata PE Price Variance: Purchasing

Step 15 - Plant parameters: T Code 159L (Tr Not Working)

Path: SPRO → Materials Management → Inventories management & Physical inventory → Plant parameters → New Entries → Plant : T100 and Select the values as per image down

Save

Step 16 - Tolerance Limits for Goods Receipt T Code : OMC0

This step is used to check PO Price and Qty with Goods Received Quantities.

Path: SPRO → Materials management → Inventories Management and Physical Inventory → Goods Receipt → Set Tolerance Limits

Select tolerance key B1, B2, VP for company code 1000 Select copy as button and change to CoCd : T100

CoCd Company Name TlKey Deception

T100 Tata Company B1 Order Price Qty Variance (GR)/E-Msg T100 Tata Company B2 Order Price Qty Variance (GR)/W-Msg

T100 Tata Company VP Moving Average Price Variance

Note : If you want to see the details inside this table values

Select B1/B2/VP and Click on Details Button – It will give the default values, you can change accordingly Step 17 - Maintain Default Values For Tax Codes T Code OMR2

Path: SPRO → Materials Management → Logistics Invoice Verification-Incoming Invoice→ Maintain Default Values For Tax Codes → Select New Entries Button

Company code T100 Tata Company

Tax Code V0 (Exempted Input Tax)

Default Value Unplanned delivery costs

Tax Code V0 (Exempted Input Tax)

Save

Msg Default valued Unplanned Delivery Cost

Step 18 - Set Tolerance Units for Invoice Verification T.Code OMR6 – V_169G

Path: SPRO → Materials Management → Logistics Invoice Verification → Invoice Block → Set Tolerance Limits Select tolerance key BD, PP, ST & VP for company code 1000

➔ Click on Copy As and Change CoCd to : T100

Cocd Company Name TlKy Description

T100 T100-Tata Company BD Form small differences automatically T100 T100-Tata Company PP Price variance

T100 T100-Tata Company ST Date variance (value x days) T100 T100-Tata Company VP Moving average price variance Save

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Step 19 - Define Automatic Status Change T.Code OMRV

While Posting of Invoice Recd, system validates the status of the invoice in the background as verified as Correct or Completed. System automatically set the invoice status to complete if purchase order quantity is received and invoice was generated

Path: SPRO → Materials management → Logistics invoice Verification → Invoice verification in back ground → Define automatic status change → New Entries

CoCd Company Name Corrections T100 T100 – Tata Company X

Save

Save

Step 20 - Group Together Valuation Areas: T-Code OMWD

Path SPRO → Material Management → Valuation And Account Assignment → Account Determination → Account Determination Without Wizard → Group Together Valuation Areas → Position : T100

Val Area CoCd Company Name Chrts/Accts Val.Grpg Code

T100 T100 T100-Tata Company T100 T100

Save

Step 20 - Define Valuation Classes: T-Code OMSK – V025

Valuation class allows us to customize account determination according to a particular material.

It is used for assignment of a material to a group of GL Accounts.

This value class can be classified as

1. Material belongs to same type but accounting in different GL Accounts 2. Material belongs to different type but accounting may in single GL Accounts

This is achieved by assigning different valuation classes in material master records on Accounting 1 tab

Path SPRO → Material Management → Valuation And Account Assignment → Account Determination → Account Determination Without Wizard → Define Valuation Classes → D.Click on Account Category Reference

→ Select ARef 0001 / 0004 / 0008 / 0009 and Click Copy As Button and Change Accordingly ARef Description

T100 Reference For Raw Materials T101 Ref. For Finished Products T102 Ref. For Semi-Finished Products T103 Reference For Packaging T104 Reference For Services Save

Select  Button

Click on Material Type/Account Category Reference Click on Position : ROH

Save and Do for Other Materials like Below

Mtype Material Type Desc ARef Description

ROH Raw Material T100 Ref for Raw Material

FERT Finished Product T101 Ref for Finished Product HALB Semi-Finished Product T102 Ref for Semi Finished Product VERP Packing Material T103 Ref for Packing Material Save

Select  Button

Note: SAP Delivered Standard Valuation Classes Like

Select Valuation Classes as per below details and Click on Copy As Button and Change Accordingly 3000 - Raw Material T100 – Raw Material

7920 - Finished Products T101 – Finished Goods 7900 - Semi Finished Products T102 – Semi Finished Goods 8520 - Packing Material T103 – Packing Material 3040 - Spare Parts T104 – Services

3100 - Trading Goods T105 – Trading Goods Save

Select and Double Click on Valuation Class Button

→ New Entries

ValClass ARef Description Description

T100 T100 Reference For Raw Materials Reference For Raw Materials T101 T101 Ref. For Finished Products Ref. For Finished Products T102 T102 Ref. For Semi Finished Products Ref. For Semi Finished Products T103 T103 Reference For Packaging Reference For Packaging T104 T104 Reference For Services Reference For Services Save

Step 21 – Define MRP Controllers – OMD0

The MRP controller is a person or a group of persons responsible for monitoring material availability. You can use the number entered here, for example, to select the planning results per MRP controller

Path: SPRO → Production → Material Requirement Planning → Master Data → Define MRP Controllers → New Entries

Save

Step 22 – Define Schedule Margin Keys – OPJZ

Path: SPRO → Production → Shop Floor Controls → Operations → Scheduling → Define Scheduling Margin Keys →

→ Select 0001/1000 and Click on Copy As Button and Change Accordingly

Plant Name Key Open Float After Float Before Release Period T100 T100-Hyd Plant 000

T100 T100-Hyd Plant 001 10 1 2 5

Save

Step 23 - Account Determination : - Configure Automatic Postings

Assignment of Accounts for Automatic Postings (MM to FI Integration ) (T Code is OBYC)

We do configurations relevant to transactions in Inventory Management (for example, goods movements ) and in Invoice Verification (for example, invoice receipt for automatic postings to G/L accounts in Financial Accounting and Cost Accounting).

Plant Name 1 MRP Cont MRP Controller Name

T100 T100-Hyd Plant MRP T100-MRP Controller

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Path: SPRO → Material Management → Valuation and Account Assignment → Account Determination → Account Determination without wizard → Configure Automatic Postings - OMWB

Note: System prompts Valuation Area screen, if we go through by path

Click on Cancel Button

Click on Account Assignment Button

Double Click on Transaction Key - BSX - Inventory Posting Give Chart of Account - T100

Select Valuation Modifier Check Box - X

Select Valuation Class - X

Save

Enter the Following Values as stated below Valuation

Method

Valuation Class

GL Account

T100 T100 221000 – Raw Material T100 T101 220000 – Finished Goods T100 T102 221200 – Semi Finished Goods T100 T103 221100 – Packing Material

T100 T104

Save

Note: If you don’t give Valuation Modifier then you will get above error as Account Determination for entry T100 BSX T100 ____ not possible

Select  Button

Double Click on Transaction Key WRX – GR/IR Clearing Account Please Don’t Select any of the item

Save Posting Rules

Give Account Assignment as 120000 – GR/IR Clearing Acc

Save

Note : Same GR/IR Clearing Account can be used across all the materials

Invoice Process in 3 Way Match:

While processing of invoices system checks the invoice Quantity and Prices with PO and Good Received Qty

P.Order Quantity Price Total

PO 100 10 1000

1 Goods Received 90 Inv Recd 1000

2 Invoice Received 100 12 1200

In these case also Invoice Blocked for Payment

If the match is successful then invoice can be paid if there is a difference, then invoice is blocked for payment

Step 24 - Creation of GL masters FS00 GL Acc

Number

Acct Group

GL Acc Name BS

PL

Recn Acc

OB LC

LI D

Sort Key

Field Stat

Tax Code

Open ITMg

Post Auto

120000 Liab GR/IR Clearing BS LIAB X X 001 G045

*

400050 Exp Material Scrapping PL X 001 G006

100400 Liab Good Received But Invoice Not Received

BS Liab X X 001 G001 X

221000 Assets Raw Material Inventory BS Asset X X 001 G006

*

220000 Assets Finished Goods Invtry BS Asset X X 001 G006

*

221200 Assets Semi Finished Inventry BS Asset X X 001 G006

*

221100 Assets Packing Material Invent BS Asset X X 001 G006

*

221300 Assets Invoiced Received But Goods Not Received

BS Asset X X 001 G001

Step 25 - Document Types and No. Ranges (OBA7)

WE :Goods Receipt (FBN1) No Range : 50 Interval :

WA :Goods Issue No Range : 49 Interval :

RE : Gross Invoice Receipt No Range : 51

Interval :

Step 26 - To Open Material Periods: (T Code MMPV)

Path : Logistics → Materials management → Material Master → Other-Close period

From company code T100

Give the period 12

Fiscal year 2019

Select check and close period radio button Execute

Note : If you have given the period as 01 in Maintain Company Code for Material Management then you need to open and close all the 05 periods

T.Code MMPV

From company code T100 T100 T100 T100 T100 T100 T100 T100 T100

Give the period 01 02 03 04 05 06 07 08 09

Fiscal year 2019 2019 2019 2019 2019 2019 2019 2019 2019

Select check and close period radio button

X X X X X X X X X

Execute

From company code T100 T100 T100

Give the period 10 11 12

Fiscal year 2019 2019 2019

Select check and close period radio button

X X X

Execute

No Year From To

50 2014 500000 50500

No Year From To

49 2014 490000 40500

No Year From To

51 2014 510000 51500

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Current Valuation in MM01:

Step 27 - Creation of Raw Material Master T Code MM01

Path: Logistics → Materials Management → Material Master → Material → Create (General) → MM01-Immediately Material <Automatic Number Assignment >

Industry sector Mechanical Engr (From List)

Material type Raw Material

Select Views Basic Data1,2, Purchasing, General Plant, Data/ Storage1/ Accounting1 / 2, Costing1 / MRP1 / MRP2 / MRP3

Press Enter OK Button

Select organization levels button

Give the plant T100

Storage location T100

Press Enter

General Basic Data 1

Give the description Monitors 19”

Basic unit of measurement PC

Material Group T100RH

Division T1 (Hyd Paint Division)

Dimension/EANs Gross Weight Weight Unit Net Weight

Select Purchasing Tab

Purchasing group T10

Material Group T100RH (Raw Material)

Select Purchase Order Text

Give Text

Purchase of Monitor 19"

Select MRP1 Tab

MRP Type PD ()

MRP Controller MRP

Lot Sixe EX - Lot-for-lot order quantity

Select MRP2 Tab

Proc Type F (External Procurement)

Plant Delivery Time 1 Day

Scheduling Key 000

Select MRP3 Tab

Period Indicator P Fiscal Year Variant : V3

Availability Check KP

Select MRP4 Tab Selection Method

Individual/Coll 1 – Individual Reqmnt

Select Accounting One Tab

Valuation class T100 - Raw Material

Price control V (Moving Avg Price) Price Unit : 1 Moving price 5000 Standard Price : Select Accounting Two Tab

Select Costing One Tab

Basic Unit of Measure PC

Select X X With Qty Structure X Material Margin

Profit Center 3000

Costing Lot Size 1 Select Costing Two Tab

Save

Msg:- Material 60000010 Create

Create More Materials by Same Process Msg:- Material 60000011 Create

Step 28 – View Material List

Path: Main Menu → Logistics → Material Management → Material Master → Other – MM60 – Material List Material

Plant T100

Execute

Step 29 - Creation of Vendor Master T.Code XK01

Vendor

CoCd T100

Purchase Org T100

Acct Group T100 Press Enter

Title – Company Name AAA Enterprise

Country In

Region 01

Reconciliation Account 100700 (Domestic Payable) Click 4 Times Next Screen

Sort Key 001

Click Next Screen

Payment Term 0001

Credit Memo Term 0001

Check Double Invoice – X Under Purchasing Data

Order Currency – INR Term of Payment – 0001 Control Data

Select Check Box X GR-Based Invoice Verification Save

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Step 30 - Purchase order creation T.Code ME21N

Path : Logistics → Material management → Purchasing → Purchase Order-Create → ME21N - Vendor/supplying Plant Known

Vendor 1502

Purchase Group T10 Company Code T100

Standard PO Vendor 1512 Doc. Date 04.03.2020 Item Material Text PO

Qty

OUn C Del Date Net Price

Curr Per OPU Matl Group

Plant Stor Loc 60000010 Monitors

19”

10 PC D 04.03.2020 5,300 INR 1 PC Raw Mat

T100 T100 Save

Click on Check – No message issued during check → Save

Step 31 - Goods Receipt Against Purchase Order : T.Code MIGO

Path: Logistics → Material Management → Inventory Management → Goods Movement → Goods Receipt → For Purchase Order → MIGO_GR - GR for Purchase Order (MIGO) or /N MIGO

Goods Received Purchase Order 4500022396 Plant T100 Execute

The details of Purchase Order Copied to goods receipt transactions based on Copy Control Settings maintained by MM Consultant

Against Material Linen item Select “OK” button check Box and also click on Detail Data

Select “Where” Tab Movement Type 101 Unrestricted stock type means the material Purchase can be used or Consumed against transfer Cost Centers, Sales Order Or Production Orders etc.

Click on - Check Button Msg - Document OK Click on Post Button Once the Document are posted Note the Material Document no

Step 32 - View Accounting Document – MIGO From The Above Screen

Click on Display Material Document 5000001340 2020 Click Execute The System will show the flowing screen

Click on Doc Info – Button Then Click on - FI Document Button

Note : In this view we are unable to see the purchasing document no. In such a case, you need to make changes in layout scree.

Select Screen Layout and Add Purchasing Document to the left side and Save.

Now the system will display Purchasing Document Ref Number as below

The Profit Center is extracted from Material Master and Business area is extracted from Division and Plant Step 33 - View Relation Document – FB03

/N FB03

Document Number 50003 Company Code T100 Fiscal Year 2019 Enter

From Menu Environment → Doc Envir → Relationship Browser Accounting Doc 500000 – Select and Click on Display Button Material Doc 50003 – Select and Click on Display Button

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Step 34: To View GL Line Items FBL3N

G/L Account 221000

Company Code T100

Select Open Item

Click on Execute

Step 35: To View Material Documents – MB03 Material Doc No 500001340

Mat Doc Year 2020

Press Enter

Step 36: To View Stock Overview MMBE

Sap Menu → Logistic → Material Management → Inventory Management → Environment → Stock → MMBE – Stock Overview

Material 60000010

Plant T100

Storage Location T100 Execute

Note In Case of Error

Error Msg: No Material Found or Activated Goto MM02

Select Views Plant and Storage Location Click Org. Level

Give Plant T100

Storage Location T100 Enter → Material → Change → Activate This will activate the material list

Step 37: To View Stock Ledger MB5B

Path : Logistics → Materials management → Inventory management → Environment → Stock → MB5B – Stock for Posting Date

Material Number 60000010 To

Company Code T100 To

Plant T100

Storage Location T100

Step 38: Invoice Received Against Purchase Order (Transaction code is MIRO)

Path: Logistics → Materials Management → Logistics-Invoice Verification → Document Entry → MIRO-Enter Invoice Transaction Invoice

Diff. Posting Tab Basic Data

Invoice Date 04.03.2020 Posting Date 04.03.2020

Amount 53,000

Text Invoice Received

Down : Select Tab PO Reference Item Amount Qty Ord

Status

Status Purchase Order

Item PO Text 1 53000 10 PC OK 104500022396 10 Monitor 19”

Select Tab: Payment

Payt Term 0001

Payment Method A

House Bank 2000 / Acc-2

Similarly Give Other Details- If Required in Tab – Details / Tax / Contracts / Note etc

→ Click on Document Simulate Button

→ Check and Post

→ Msg : Document no. 5105609472 Created

Note: In Case of Error for Tax Code as we have not given here, we are not getting any error. In future if we use Tax Code such as V1

→ Goto OB40 : Select VST Transaction

Chart of Accounts T100

Save

Select Accounts

Assign GL Account 400501 as Tax on Purchase/Sales Account

Save

Repeat the Same Process For Invoice Recd for Qty 50 Msg: Document No. 5105609473 Created

Step 39: To View Accounting Document

Menu → Invoice Document → Display → Follow Documents

Note: Here I am getting 2 Debits line item, because I have received items in two times.

Step 40: Updating Initial Balances

Path: Logistics → Materials Management → Inventory Management → Goods Movement → Goods Received → MB1C – Other

Document Date 04.03.2020 Posting Date 04.03.2020

Material Slip

Defaults for Document Items

Movement Type 561 Special Stock

Plant T100 Reason for Movement

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Storage Location T100

GR/GI Slip

X Indiv.Slip w.Inspect.Text Press Enter Item Material Qty UnE Sloc Plant

01 50065565 10 EA T100 T100

02 50065576 10 PC T100 T100

03 60000000 10 KG T100 T100

04 60000001 10 PC T100 T100

05 60000000 10 KG T100 T100

06 60000011 10 EA T100 T100

07 60000300 10 EA T100 T100

Save

Msg: Document 4900004120 Posted

Click on Accounting Document Button

Click on From Menu – Document → Print Preview

GR/IR Clearing Account:

This Account is a Temporary or Clearing GL Account used to identify GR & IR transactions against Purchase Order During GR/IR system will Post Transactions to GR/IR Clearing Account

1. To identify any mismatch of Qty and Prices between GR and Invoice Received

2. To meet Fin. Reporting (Periodically) of Goods Received But Not Yet Invoiced and Invoiced But Not Yet Goods Received. By Classifying the values of GR & IR – Clearing Account

Step 41 - Testing of GR/IR - Reclassification

During month end to meet Financial Reporting Business must execute GR/IR Reclassification transactions.

Note: For Reclassification, we must use GR/IR Adjustment Account without Disturbing GR/IR Clearing Account During Reclassification System copies items of GR/IR – Clearing Account to GR/IR Clearing Adj Account and then Reclassifies.

The Reclassification must be reversed in the following month

Step 42 - Maintain Automatic Account GR/IR – Classification Account - FBKP

SPRO → Img → FA (N) → AR/AP → Bus Transaction → Posting with Alternative Reconciliation Account → Other Special G/L Transactions → Define Alternative Reconciliation Account for Customers → Select Automatic Posting

➔ D. Click on Goods/Issue Recd Clearing

D .Click on BNG Invoiced But Not Yet Delivered

Give Chart of Accounts T100 Give the Accounts as per below details

Recon Acc Adjustment Target Acct

120000 120010 221300

Save

GO Back

D .Click on GNB Goods Delivered But Not Yet Invoiced

Give Chart of Accounts T100

Give the Accounts as per below details

Recon Acc Adjustment Target Acct

120000 120010 100400

Testing Of Complete Cycle

Step 01 - Create a New Purchase Order – ME21N

Create One More Purchase Order

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Step 02 - Recording of Goods Received – MIGO

Step 03 – Invoice Received – MIRO4

Step 04 – To View GL Balances – FBL3N GL Account 120000

Company Code T100 Select Open Items Execute

Step 43 - Setup Auto Clearing Account Of Line Items – F.13

As per periodic activity Business Users must execute Auto Clearing Transactions against GL Accounts. Customers and Vendors to Set Off or Knock Off Debit with Credits, which are matching with Assignment Filed and Open Item Status set to Clear Status

Path – Accounting → F A → GL → Periodic Processing → Automatic Clearing → F.13 Without Specification of Clearing Currency

CoCd T100

Fiscal Year 2019

X – Select G/L Accounts GL A/c – 120000

X – GR/IR Accounts Special Process X – Test Run

Execute

Auto Clearing Status Updated Will Appear Go Back and Remove X – Test Run Execute Again

Error Msg – This program run is a Production Run Just Press Enter

Msg Document No 1019 Posted

Step 44 – View Clearing Document – FB03

Document No 1019 Company Code T100 Press Enter

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Note: If we have not received the any invoice, then that line item will be shown under Open Line Items

Step 45 – Analyze or Reclassify GR/IR Account

Path – Accounting → F A → GL → Periodic Processing → Closing → Reclassify → GR/IR Clearing → F.19 – GR/IR Clearing

GL Account 120000

CoCd T100

X GR/IR Clearing Execute

Click on Postings Button

It is used to bypass

40 120010 GR/IR – Adjustment Account 265,000 50 100400 Good Recd But Inv Not Recd 265,000

It will appear In Balance Sheet

Liabilities Amount Assets Amount

Goods Recd But Inv Not Recd 26,000 Raw Materials 26,000

Account Assignment Category:

It is used to bypass inventory GL Account with other GL Accounts and Cost objects necessary for an item Ex. Purchase of Stationary through Purchase Order without material master

Purchase of Material used against Fixed Asset, Production Order Projects etc. on using of Account Assignment category System Post to the respective GL Accounts and Cost objects instead of hitting to inventory accounts.

Note: When ever you Assign Account Assign Category → It will not hit to BSX inventory

Testing Scenario - Purchase of Stationary through Purchase Order Step 01 – Create Purchase Order - ME21N

Vendor 1502

Purchase Group T10 Company Code T100

Standard PO Vendor 1512 Doc. Date 04.03.2020 Acct

Asst

Material Text PO Qty OUn

C Del Date Net Price

Curr Per OPU Matl Group

Plant Stor Loc

K Stationary 500 EA D 04.03.2020 5 INR 1 PC T100FG T100 T100

CCtr

From Down - Click on Account Assignment Tab

GL Account 421001 - Stationary Business Area T101

CO Area T100

Cost Center 2100 Profit Center 3000

Save

Msg: Standard PO Created under the number 4500022399 Step 02 - Goods Received – MIGO

Good Receipt Purchase Order

4500022399 Plant T100 FR GR goods Receipt

101 Press Enter

Go Down TO The Page

Select X - Item OK Check

Post

Msg Material Document 5000001350 Posted Select

Display Material Document 5000001350 2020 Click Execute Click on Doc Info

Click on FI Document Select Accounting Document

Go Back and Click on Controlling Document

Step 03 – Invoice Received – MIRO

Go Back and Change the Amount to Rs.2600

Select Data Tab Amount 2600

Select Detail Tab Unpl Del. Csts 100 Simulate

Post: Document No.5105609484 Created .

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View Document

From Menu → Invoice Document → Display → Follow-On Documents → Select Accounting Document

Note : When invoice is receiving with difference of account, adjust the amount in Unplanned Delivery Cost