MM Purchasing User Manual

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BSNL

USER MANUAL: Purchasing

Version:1.0

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4. MM-ME21N-Create Purchase Order-Project Stock ... 199

5. MM-ME21N-Create Purchase Order-Stock Materials ... 218

6. MM-ME21N-Create Purchase Order-Subcontracting & Repair ... 236

7. MM-ME21N-ZSTE-Stock Transfer PO External ... 243

8. MM-ME21N-ZSTI-Stock Transfer PO Internal... 247

9. MM-ME22N-Change Purchase Order ... 251

10. MM-ME23N-Display Purchase Order ... 256

11. MM-ZMMP_POTOL-PO Tolerance ... 259

12. MM-ME9F-Message Output Purchase Orders ... 262

13. MM-ZMMP_SPO-Ultimate Consignee Details ... 266

14. MM-ZMMF_SPO-Ultimate Consignee Details Print ... 271

15. MM-ZMMP_POAMEND-Purchase Order Amendment ... 275

16. MM-ZMMF_POAMEND-Print Purchase Order Amendment ... 279

5. Approvals ... 283

1. MM-SBWP-PR_APO_PO_RFQ approval process ... 284

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FLOWCHART

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1. Purchase requisition

1. MM-ME51N-Create Purchase Requisition for Account Assignment

Overview

Direct requirements from various departments for O&M materials to be directly charged to cost centre.

Business Process Description Overview

A requisition defines the need for a material or service. It is the primary document in the purchasing cycle.

Purchase Requisition for materials whose cost will be directly charged to cost centre. The document will be used to provide material requirements of non valuated materials from all departments to the purchasing department. The purpose of requisitioning should be expense in nature and the material requisitioned will not be part of inventory at the plant. The requisition authorizes the Purchasing department to purchase materials in specific quantities within a specified time frame. It is an internal document and is not used outside of the company.

Note: A Requisition of this nature will be created for codified materials. Incase material code is not

available; the field may be kept blank. But in that case a proper material text has to be filled along with the material group so as to help classify the item.

-Such a requisition will lead to direct consumption at time of purchase, thus purchase will not affect moving average price of the material as cost will be booked to the cost centre entered in requisition.

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Input - Required Fields Field Value / Comments

Document Type Type of requisition

Material Code Click on the drop down button to select under any one of the options

available – Plant material by description or Material group or Material Type or Old material number

Account Assignment K for Cost Centre

Plant Plant code requiring material - Click on the drop down button to select

Quantity Quantity to be requisitioned ( unit of measurement) will be defaulted

Valuation Price Estimate Price per unit – Will be defaulted if previous purchase

exists ,can be still changed by user

Requisitioner Initials of Requisitioner

Req Tracking Number A reference number for tracking this requisition

Cost Centre Cost Centre to which cost of purchase will be booked

Output - Results Comments

Requisition will be created The requisition is assigned a PR number which is now subject to release in 2 steps – Initiator and Competent Authority.

Tips and Tricks

 Set up the user defaults for each user to force the system to plug in default data, i.e. Plant, Requisitioner and Requisition Tracking Number.

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Procedure Steps

Access transaction by:

Via Menu Logistics>Materials Management>Purchasing>Purchase

Requisition>Create

Via Transaction Code ME51N

On screen “Create Purchase Requisition”: enter header level information specified in the

table below:

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Fields Description R/O/C User Action and Values Comments

Document Type

Defines type of requisition R Please refer the attached annexure

Header Note

Header Text O Any comments that are not

are generic to all items

Will not appear in print out

Required For Required For Item Text O To be entered as text against

the first Item only

Only if this text is maintained against item 1 will it appear in print out Probable Vendor List

Probable Vendor List Item Text

O List of probable vendors

with complete relevant information to be entered as text against the first item only

Only if this text is maintained against item 1 will it appear in print out

Delivery Text Delivery Text O Delivery related texts can be

maintained as text against the first item only

Only if this text is maintained against item 1 will it appear in print out R = Required, O = Optional, C = Conditional

On the same screen, in “Create Purchase Requisition: Item Overview”: enter information

specified in the table below:

Cost Centre Acct assignment Category

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Material Material Code R Material code Click on the

drop down button to select under any one of the options available – Plant material by description or Material group or Material Type or Old material number Account Assignment “A”

Account to book cost R K for Cost Centre

Short Text Description of material C Will be defaulted if material

code is selected otherwise has to be entered manually Material

Group

Classification of materials on basis of nature

C Please refer the attached

annexure

Plant Plant requiring material basis of R Enter plant where material is

to be shipped Valuation

Price

Estimated Price per unit C User to enter in the condition

when the purchase history record is different from his estimate. In case it is a first time purchase, then this field is required to be filled.

Cost Centre Cost Centre R Cost Centre to which cost

will be booked Storage

location

Key for determining storage location for a specific plant

O Can be entered from drop

down list Delivery

date

Date on which the goods are to be delivered. If delivery date is sooner than the system calculated lead time, a warning will be issued

C This is defaulted as the date

90 days from present date. It can be changed if required.

Purchasing Organizatio

n

The organization for which the procurement needs to be done

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Purchasing

Group

Nature of group preparing requisition

C

Please refer the attached annexure

Requisitioner Indicates for whom the material is ordered

R Initials of requisitioner Req. tracking

number

This number can be used to facilitate the monitoring of material procurement

R A reference number for

tracking this requisition

Item Text Item text O Technical specifications of

the item not covered by the existing material

descriptions

It‟s a text page so there is no system check on its contents. This will be printed in the PR.

Repeat above for each item in Purchase Requisition.

Click on the check button

to check the document

System displays a message at the Bottom of the screen.

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2. MM-ME51N-Create Purchase Requisition for Asset

Overview

Direct requirements from various departments for materials to be directly capitalized to an Internal order.

Purchase Requisition for direct capitalization is for those materials whose cost will be directly capitalized to an Internal order. The document will be used to provide requirements of capital nature items from all departments to the purchasing department. The purpose of requisitioning should be capital in nature and the material requisitioned may/may not be part of inventory at the plant. The requisition authorizes the Purchasing department to purchase materials in specific quantities within a specified time frame. It is an internal document and is not used outside of the company.

Note :

-A Requisition of this nature can be created with or without material codes. Incase material code is not available; the field may be kept blank. But in that case a proper material text has to be filled along with the material group so as to help classify the item.

-Such a requisition will lead to direct cost booking to the Internal order related to the scheme , thus purchase will not affect moving average price of the material as cost will be booked to the order entered in requisition.

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Material Code Click on the drop down button to select under any one of the

options available – Plant material by description or Material group or Material Type or Old material number

Account Assignment “A” A for Assest

Quantity Quantity to be requisitioned ( unit of measurement) will be

defaulted

Req Tracking Number A reference number for tracking this requisition , eg –

Mech/04/08 where Mech represents Mechanical department, 04 for year 2004 and 08 could be a running serial no.

Internal Order Order in Projects to which cost of purchase will be booked

Requisition will be created The requisition is assigned a PR number which is now subject to release in 2 steps – Initiator and Approver. Only after approval the requisition is available for processing at MM Cell.

Tips and Tricks

 Set up the user defaults for each user to force the system to plug in default data, i.e. Plant, Requisitioner and Req Tracking Number.

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Procedure Steps

Access transaction by:

Requisition>Create

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On screen “Create Purchase Requisition”: enter header level information specified in the

table below:

Document Type

Header Note

Required For Required For Item Text R To be entered as text against

the first Item only

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On the same screen “Create Purchase Requisition: Item Overview”: enter information

specified in the table below:

Account to book cost R F Internal Order

Group

annexure

Price

Order Internal Order R Order in Projects to which

cost of purchase will be booked

Storage location

down list Delivery

date

C This is defaulted as the date

90 days from present date. It can be changed if required.

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Purchasing

Organizati on

Organization for which procurement needs to be done

C Please refer the attached annexure

Purchasing Group

C

Please refer the attached annexure

Requisitioner Indicates for whom the material is ordered

number

descriptions

Repeat above for each item in Purchase Requisition

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3. MM-ME51N-Create Purchase Requisition for Non Valuated materials

Overview

Direct requirements from various departments for O&M non valuated materials to be kept in Inventory.

Purchase Requisition for non valuated materials will be used to provide requirements of non valuated materials from all departments to the purchasing department. The purpose of requisitioning should be expense in nature and the material requisitioned should be part of inventory at the plant. The requisition authorizes the Purchasing department to purchase materials in specific quantities within a specified time frame. It is an internal document and is not used outside of the company.

Note :

-A Requisition of this nature will be created for codified materials. Incase material code is not available; the field may be kept blank. But in that case a proper material text has to be filled along with the material group so as to help classify the item.

-Such a requisition will lead to direct consumption at time of purchase thus subsequent tracking of inventory will only be for the sake of quantity and not value as such items have nil stock value.

Account Assignment “A” K for Cost Centre

defaulted

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Req Tracking Number A reference number for tracking this requisition

Cost Centre Cost Centre to which cost of purchase will be booked

Requisition will be created The requisition is assigned a PR number which is now subject to release in 2 steps – Initiator and Final Approver. Only after approval the requisition is available for processing at MM Cell.

Procedure Steps

Access transaction by:

Requisition>Create

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On screen “Create Purchase Requisition”: enter header level information specified in the

table below:

Document Type

Header Note

Required For Required For Item Text R To be entered as text against

the first Item only

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On the same screen, in “Create Purchase Requisition: Item Overview”: enter information

specified in the table below:

Account to book cost R K for Cost Centre

Group

annexure

Price

Cost Centre Cost Centre R Cost Centre to which cost

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Storage

location

down list Delivery

date

C It can be changed if required.

Purchasing Organizati on

Organization for which procurement is needs to be done

annexure

Purchasing Group

annexure Requisitioner Indicates for whom the

material is ordered

number

descriptions

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4. MM-ME51N-Create Purchase Requisition for Stock materials

Overview

Direct requirements from various departments for stock materials to be kept in Inventory.

Purchase Requisition for stock materials will be used to provide material requirements from all

departments to the purchasing department. The purpose of requisitioning should be stocking in nature and the material requisitioned should be part of valuated inventory at the plant. The requisition authorizes the Purchasing department to purchase materials in specific quantities within a specified time frame. It is an internal document and is not used outside of the company.

Note :

-A Requisition of this nature will be created for codified materials only.

-Such a requisition is not meant for direct consumption at time of purchase, it is for initiating purchase for purpose of inventorying.

Any consumption will be subsequent by means of a reservation.

- Since objective is to stock this material, no account at the time of requisition is to be assigned.

defaulted

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Requisition will be created The requisition is assigned a PR number which is now subject to release in 2 steps – Initiator and Final Approver. Only after approval the requisition is available for processing at MM Cell.

Tips and Tricks

 Set up the user defaults for each user to force the system to plug in default data, i.e. Plant, Requisitioner and Req Tracking Number.

Procedure Steps

Access transaction by:

Requisition>Create

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On screen “Create Purchase Requisition”: enter header level information specified in the

table below:

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Document Type

Header Note

Required For Required For Item Text O To be entered as text against

the first Item only

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On the same screen, in “Create Purchase Requisition: Item Overview”: enter information

specified in the table below:

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drop down button to select under any one of the options available – Plant material by description or Material group or Material Type or Old material number

Plant Plant requiring material R Enter plant where material is

to be shipped

Type the plant Code or select drop down menu Valuation

Price

when the purchase history record is different from his estimate.

In case if it is adopted from material master, then this field is required to be filled.

Storage location

down list Delivery

date

C It can be changed if required.

Purchasing Organizati on

Organization for which procurement needs to be done

R Please refer the attached

annexure

Purchasing Group

annexure Requisitioner Indicates for whom the

material is ordered

number

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descriptions

R = Required, O = Optional, C = Conditional

Use the check button

.

If the system does not generate any error message then Click on the save

button

or hit

Control + S.

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5. MM-ME52N-Change Purchase Requisition

Overview

A purchase requisition needs to be changed. A change in quantity and/or required date is the primary triggers for this transaction.

Prior to changing or deleting a requisition, the requisitioner needs to know the status of the requisition. If the requisition has been processed into a purchase order, any changes will not be reflected on the purchase order. The requisitioned needs to contact the buyer directly. If someone else has deleted the requisition, a new requisition will have to be created, as it is not possible to change a deleted requisition.

Purchase requisition number Can be found using Display function or List display function

Item Details Identifies what can be changed or deleted

Output – Results Comments

Requisition changed or deleted If Requisition has status „Not Edited‟ then changes made will reflect in RFQ and Purchase Order.

Tips and Tricks

If a requisition has been deleted, you can still use that requisition and create a new one using the canceled requisition as a reference.

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Procedural Steps

Access transaction by:

Via Menus Logistics>Materials Management>Purchase>Purchase

Requisition>Change

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On screen “Change Purchase Requisition”, the last Requisition saved will be displayed as

default. To enter different number select the icon

.System will display another

window to select other document.

Then delete the document default one and type other PR number and select other

document tab.

System will display other Purchase document.

Field Name Description R/O/C User Action and Values Comments

Requisition Number

Requisition Number R If you don‟t want to work with

the defaulted requisition, click on the „Other Requisition‟ button on the header bar (It has been shown with an

arrow).Enter a unique requisition number that requires to be changed. Requisition can be found using the Display or List Display function.

(Note: On above table, in column “R/O/C”; “R” = Required, “O” = Optional, “C” = Conditional)

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On the same screen, to delete requisition or item:

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Click on the Delete (trash can) icon.

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The item is now flagged for deletion (see the column labeled “D”; there will be a

checkmark).

On the same screen, to change quantity, price, date required, text etc., enter information

in the fields as specified in the table below:

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Item Number

Item number R Selects the item number that

needs to be changed

Val. Price Price change O Change price if required

Delivery date

Date Change O Change date if required

Quantity Quantity Change O Change quantity if required

Text Text change O Change or add text if required This holds true

for all texts – Required for, Probable Vendor list and Delivery Text (Note: On above table, in column “R/O/C”; “R” = Required, “O” = Optional, “C” = Conditional)

Finally use check button

System displays

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6. MM-ME53N-Display Purchase Requisition

Overview

User needs to view information regarding purchase requisitions, including item information and status of requisitions.

User may not have the authority to change, so they can only look in display mode.

This BPP demonstrates a function that allows you to view/monitor the status of individual purchase requisitions.

Purchase requisition number Can be found using Display function or List display function

View status of Requisition

Tips and Tricks

There are two methods for displaying requisitions - Display and List Display.

List display is a more comprehensive method of displaying requisitions, and is addressed in BPP “MM-ME5A-List Display-Purchase Requisitions”

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Via Menus Logistics>Materials Management>Purchase>Purchase

Requisition>Display

Access transaction by:

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On screen “Display Purchase Requisition”, the last Requisition saved will be shown. To

display other requisition select other purchase requisition icon

. Type the respective

PR number and press enter.

Requisition Number

Requisition Number R If you don‟t want to work with

the defaulted requisition, click on the „Other Requisition‟ button on the header bar (It has been shown with an

arrow).Enter a unique requisition number that requires to be displayed. Requisition can be found using the Display or List Display function.

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Click on the Enter button.

Menu Name

Description R/O/C User Action and Values Comments

Details Item Details O Displays every detail from the

item overview screen such as material, qty, material master data, plant etc.

Text Overview

Text Overview O Displays any text fields in the

Purchaser requisition Release

strategy

Purchase requisition approval O Displays strategy for purchase approval

Status Item history statistics O Displays statistics on status of

PR and also the changes made to the requisition

Account Assignment s

Account assignments for items

C Displays the G/L account to

which the items are charged , if it is an account assigned PR

Services Service items C This is only possible in the case of

service items Value

Limits

C This is only possible in the case of service items

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7. MM-ME56-To assign source of supply to requisitions

Overview

To assign source of supply to requisitions

BUSINESS PROCESS PROCEDURE OVERVIEW

When you make any contract you need to assign it to a source of supply/vendor to close the transaction or the requisition processing cycle.

Input – Required Fields Field Values/Comments

Purchase requisition number Purchasing group

If the number is known, enter it. If not, search for it. Enter the purchasing group.

Output - Results

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Access transaction by:

Via Menus (a) Logistics  Material Management Purchasing 

Purchase requisition Follow on functions Assign-ME56

Via Transaction Code ME56

On screen “Assign source of supply to requisitions”, enter information in the fields as

shown in the table below.

Press EXECUTE

Enter the Purchase requisition number.

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Field Name Description R/O/

C

User Action and Values Comments

Purchase requisition

Numeric key that uniquely identifies the purchase requisition document.

O If unknown, conduct a

match-code search Purchasing

group

Purchasing group for the requisition.

O

Press <EXECUTE>

Screen showing the contract number and the requisition number.

Click the CHECK BOX

and press “ASSIGN AUTOMATICALLY”

tab.

The following screen shows the output. Click on SAVE button .

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8. MM-ZMMF_PR- PR Output

Overview

A Purchase requisition needs to be printed.

Business Process Procedure Overview

This procedure details how to print a Purchase requisition in R/3.

Input – Required Fields Field Value/Comments

Purchase Requisition Number Enter the number of the purchase requisition document which

needs to be printed.

A successfully printed Request for Quotation

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Access transaction by:

Via Transaction Code ZMMF_PR

On screen “Purchase requisition output”, enter information in the fields as specified in

the table below:

Field Name Description R/O/C User Action and Values Comment

s Purchase

requisition number

Takes the document number. C Enter the required requisition

document number.

Press <EXECUTE>

The output screen shows the document as displayed below.

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Click on PRINT PREVIEW tab . The print preview screen .

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2. Request for Quotation

1. MM-ME41-Create Quotation

Overview

 Purchasing determines that a quotation is required from vendors.

SAP provides the capability of creating and issuing single or multiple items Request for Quotes (RFQ‟s). Vendors must have master records created or be categorized as „one time‟ vendors

The Request for quotation may be created w.r.t a Purchase Requisition incase requirement has come from user department else it can be created without any reference also. Both cases have been discussed in this document.

RFQ Type Default is „ZRFQ‟ for Material

Language Default is „EN‟ for English

RFQ Date Default is creation date

Quotation Deadline Must be prior to required delivery date specified

Purchasing Org Enter Purchasing Organization identifier

Purchasing group Enter Purchasing group number

Saved RFQ Each RFQ per vendor will receive a separate document number.

Tips and Tricks

The collective number in the header screen of the RFQ is an important method to link the copies of the RFQ issued to the different vendors. SAP treats each issuance to a different vendor as a separate RFQ document and this collective number can be used to search and provide comparison reporting.

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CASE 1: CREATION OF RFQ W.R.T PURCHASE REQUISITION

Via Menu (a) Logistics > Material Management > Purchasing >

RFQ/quotation > Request for Quotation> Create

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On screen “Create RFQ: Initial Screen”, enter information in the fields as specified in the

table below:

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Now select the tab Reference to PReq Tab and fill the all required field as mentioned in

the table below.

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RFQ Type Default is „AN‟ R Please refer the attached

annexure

Language Default is „EN‟ - English R Not to be changed

RFQ Date Default is creation date R May be changed if required The RFQ can

be created for future issuance. Quotation

Deadline

The due date for vendor quotations

R Enter the due date in the date

format assigned in the system

If the deadline is stated as a date after the required delivery date, the user will be given an error message when the delivery date is entered. Purchasing Org. Purchasing Organization responsible for RFQ

annexure Reference

to Preq

Field to allow Purchase Requisition reference

R Click on this field

Purchase Requisition

Purchase Requisition field for entry

R Enter Requisition No. against

which RFQ is being floated Requisn

Item

Requisition Item number O Enter only if all requisition

items are not to be taken to RFQ

Note: On the above table, in column “R/O/C”; “R” = required, “O” = Optional, “C” = Conditional)

Note: The ‘Default Data for Items’ fields will carry these values against all items on the RFQ. Although carried onto the Item screens, these values may be changed within the transaction. Useful if the majority of the items have common data (delivery date, plant, etc.). Enter the appropriate data if desired. (Optional)

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On screen” Create RFQ: Header Data”, enter information in the fields as specified in the

table below:

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Field

Name

Coll. No. Collective number R Enter a number to track

vendors of the same RFQ

This will be a 10 digit code identifying the BID/ RFQ Validity start

Validity start O Enter date quotation will start

Validity end

Validity end O Enter date quotation will end.

Applic. By Application date O Enter closing date of Bids

Bindg. Per.

Binding period O Enter date period is binding

Target Value

Displays the target value O Enter the target value

BSNL Number

BSNL Document number R Enter any alphanumeric value It is a 50 digit

alphanumeric key

After entering above values press enter to move to next screen - Create RFQ: Selection List: Purchase Requisitions

On screen “Create RFQ: Selection List: Purchase Requisitions”, enter information in the

fields as specified in the table below:

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Sloc Storage Location where

material will

be delivered and stored if ordered

O Enter or select Storage

Location from table Strictly optional. Storage Location may be entered later at the time of P.O. creation or Goods Receipt.

Select Requisition line items for processing and click on the button to copy requisition details to RFQ. System will take you to the next screen – Create RFQ: Item 00001

On screen “Create RFQ: Item 00010”, enter information in the fields as specified in the

table below:

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Delivery Date

Date of delivery R Defaulted from Requisition,

needs to be changed if it is earlier than Quotation deadline date

After entering above values press enter to move to next screen - Create RFQ: Item Overview

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On screen ‘Create RFQ: Vendor Address’, enter information in the fields as specified in

the table below:

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Vendor Vendor number R Enter valid vendor number and

press enter

If vendor master does not exist, use a one-time vendor number (if allowed)

Name Vendor Name C Up to 4 lines available Only

required if One-time vendor. Defaulted from vendor master. Street & House #

Street address and/or House # C Only

required if One-time vendor. Defaulted from vendor master. Postal Code & City

Postal code and city / town / village C Only

required if One-time vendor. Defaulted from vendor master.

Country Name of country C Table validated / selection Only

Region In some countries, the region

forms part of the address. The meaning depends on the country.

C Table validated / selection Only

Postal Code Zip Code / Postal Code C Only

required if One-time vendor.

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Defaulted from vendor master.

Telephone Telephone # C Only

Fax Fax # C Only

E-mail E-Mail address C Only

After entering all vendor details, save the RFQ. This will refresh the Create RFQ: Vendor Address screen to allow creation of the same RFQ data to a new vendor by following the steps outlined in 1.5 above. The system will display the message RFQ Created under the number ___________.

Return to Main Purchasing Menu. (Select Yellow up Pointing Arrow, Shift F3)

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CASE 2: CREATION OF RFQ WITHOUT PURCHASE REQUISITION

Access Transaction by:

Via Menu (a) Logistics > Material Management > Purchasing >

RFQ/quotation > Request for Quotation> Create

On screen “Create RFQ: Initial Screen”, enter information in the fields as specified in the

table below:

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RFQ Type Default is „AN' R Please refer the attached

annexure

Language Default is „EN‟ - English R Not to be changed

RFQ Date Default is creation date R May be changed if required The RFQ can

be created for future issuance. Quotation

Deadline

The due date for vendor quotations

R Enter the due date in the date

format assigned in the system

If the deadline is stated as a date after the required delivery date, the user will be given an error message when the delivery date is entered. Purchasing Org. Purchasing Organization responsible for RFQ

annexure Purchasing

group

Requisitioning group Identifier

annexure If RFQ is being created w.r.t Purchase Requisition then system will pick from Requisition, user need not enter

Item Category

Key defining how the procurement of a material or service item is controlled.

O Enter Item Category if required

Delivery Date

Date on which the goods are to be delivered or the service is to be performed.

O Enter delivery date

Plant Key for location within the

company code where goods are required.

O Enter Plant

Storage Location

Number of the storage location where the material is stored. A plant may contain one or more storage locations.

O Enter Storage Location

Material Group

Key that you use to group together several materials or services with the same attributes, and to assign them to a particular material group.

O Please refer the attached

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Requisition

Tracking Number

Number that facilitates monitoring of the procurement process for required materials or services. This number can relate to an external "need note" (notice of requirements) that was not generated in the system.

O Enter requisition tracking

number

Note: On the above table, in column “R/O/C”; “R” = required, “O” = Optional, “C” = Conditional)

Note: The ‘Default Data for Items’ fields will carry these values against all items on the RFQ. Although carried onto the Item screens, these values may be changed within the transaction. Useful if the majority of the items have common data (delivery date, plant, etc.). Enter the appropriate data if desired. (Optional)

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On screen” Create RFQ: Header Data”, enter information in the fields as specified in the

table below:

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Field

Name

Company code

Company code R Needs to be entered

Coll. No. Collective number R Enter a number to track

vendors of the same RFQ

This will be a 10 digit code identifying the BID/ RFQ Validity start

Validity start O Enter date quotation will start

Validity end

Validity end O Enter date quotation will end.

Bindg. Per.

Binding period O Enter date period is binding

After entering above values press enter to move to next screen - Create RFQ: Item overview

On screen “Create RFQ: Item Overview”, enter information in the fields as specified in the

table below:

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Item Number that uniquely

identifies an item within the RFQ

R Defaults - Line items are

defined by the system in increments of 10.

No User Action

I Item Category - determines if

standard

purchase or other such as 3rd party order, etc.

O Default is

blank - standard purchase

Typically no user action required

Material Material Number R Enter material number All stock

material must have material numbers RFQ Quantity Quantity of Material requested for quotation

R Must be numeric

Delivery Date

Date required if ordered R Must be in correct date format

Material Group

Group of material which this material belongs

N/A Please refer the attached annexure Needs to be entered in case of non codified materials

Plant Plant where material is

required

R Enter or select Plant from

table.

Note: the material master must exist for that plant.

Sloc Storage Location where

material will

be delivered and stored if ordered

O Enter or select Storage

Location from table Strictly optional. Storage Location may be entered later at the time of P.O. creation or Goods receipt

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Now specify the vendors invited to quote by clicking on the Vendor address button or F7 key.

On screen ‘Create RFQ: Vendor Address’, enter information in the fields as specified in

the table below:

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Vendor Vendor number R Enter valid vendor number and

press enter

If vendor master does not exist, use a one-time vendor number (if allowed)

Name Vendor Name C Up to 4 lines available Only

required if One-time vendor. Defaulted from vendor master. Street & House #

Street address and/or House # C Only

required if One-time vendor. Defaulted from vendor master. Postal Code & City

Postal code and city / town / village C Only

Country Name of country C Table validated / selection Only

Region In some countries, the region

forms part of the address. The meaning depends on the country.

C Table validated / selection Only

Postal Code Zip Code / Postal Code C Only

required if One-time vendor.

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Defaulted from vendor master.

Telephone Telephone # C Only

Fax Fax # C Only

E-mail E-Mail address C Only

After entering all vendor details, save the RFQ. This will refresh the Create RFQ: Vendor Address screen to allow creation of the same RFQ data to a new vendor by following the steps outlined in 2.5 above. The system will display the message RFQ Created under the number ___________.

Return to Main Purchasing Menu. (Select Yellow up Pointing Arrow, Shift F3)

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2. MM-ME47-Maintain Quotation

Overview

Vendor communicates price for material and as a result the RFQ (Request for Quotation) needs to be updated.

In Purchasing, the RFQ and the quotation form a single document. Prices and conditions quoted by vendors are

entered in the original RFQ. If you have issued an RFQ to several vendors, you can have the system display the

most favorable quotation submitted. You can also store the prices and terms of delivery from certain quotations in an info record

for future accessing. A quotation is legally binding on the vendor for a certain period. The quotation is the vendor‟s response

to a request for quotation issued by a purchasing organization. A quotation consists of items in which the total quantity

and delivery date of an offered material or service is specified.

Input – Required Fields Field Value/Comments

RFQ Enter RFQ No. for which a price or prices need to be entered.

Quotation entered Enter all relevant data received by vendor, price, date available,

etc.

Tips and Tricks

If you are simply entering a price against a RFQ, you can follow these easy steps: Choose RFQ/quotation Quotation Maintain.

(The initial screen for maintaining quotations appears.) Enter the number of the RFQ and press ENTER. (The RFQ item overview screen appears.)

You can enter the vendor's price per item on the item detail screen (see steps 4 and 5) or directly on the item overview screen.

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Choose Item ils to enter quotation data on the item detail screen. Enter the vendor’s quotation.

Save your data.

Access transaction by:

Via Menu (a) Logistics > Materials Management > Purchasing >

RFQ/quotation > Quotation > Maintain

On screen “Maintain Quotation: Initial Screen”, enter information in the fields as

specified in the table below:

RFQ RFQ Number R Enter RFQ Number for

which price entries are to be made.

Search help can be used to locate the appropriate value.

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Press the Enter key, or click on the green Enter icon to proceed.

View the screen “Maintain Quotation: Header Data” by clicking on the Header data

icon in the toolbar.

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Enter information in the fields as specified in the table below. Some fields will not be

available for input, as they are reference fields only.

Administrative Fields:

Qout. Dead. Quotation deadline R Supplied from initial screen

Validity start Validity start O Enter date quotation will start

Validity end Validity end O Enter date quotation will end.

Bindg. Per. Binding period O Enter date period is binding

Terms of Payment & Delivery:

Payment terms Key for defining payment terms composed of cash discount percentages and payment periods.

O Enter appropriate value if

necessary.

(F4) search help can be used to locate the appropriate value.

Reference Data:

Quotation Date Date quotation submitted

O Enter date if desired.

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Once all necessary header data has been maintained, the user can then enter the price

information in one of two fashions:

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Enter the price in the “Net Price” field on the “Maintain Quotation: Item Overview”

screen. This price should be the basic price exclusive of discounts/surcharges.

To enter more detailed information in addition to the net price, select the line item and

click on the Item conditions icon.

Here various conditions as per vendor quotation will be maintained.

Drop down on the open field of “Condition type” and choose the type of condition to be levied for this

basic price. Please note that basic price is referred to as Gross price in this screen since Net will be

calculated after taking into account all conditions.

Examples could be Discount (start with -), Surcharge (start with +), Freight charges, Inspection charges etc. Most conditions are either in % or per unit or Absolute value basis.

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1.6.3.2 If CST/LST or Excise duty is applicable, the same has to be entered via the tax code. To choose this code, go back to Item overview screen. Select the material item line and go to Item Details screen. Enter the tax code here. If a purchase order is created by referencing an RFQ, this code facilitates the determination of the tax amount when the invoice is entered in the system. The tax code has to be entered for each item in the Quotation.

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Header Conditions – There may be some conditions that are applicable on the total amount of the Quotation. These header conditions can be maintained at header level so that item wise repetition is not required. To enter these conditions, goto Item overview screen and Choose Header  Conditions. The value of these conditions will be apportioned to individual items.

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Click on the green Back arrow to return to the ‘Overview’ screen once data has been

maintained.

There is a field for quotation comments that will segregate quotations as per their status, Comments such as Not Responded, Regret case, Technically Unqualified, Commercially Unqualified, Techno-commercially Accepted, Unsuccessful bid, Lowest Technocomm. Accepted are available to choose from. These comments are to be entered in the Item details screen under Quotation comments.

Once all quotation information has been successfully entered, save the data by clicking

on the Save button, or press the <Ctrl + S> keys. A message will be displayed that the data

has been saved.

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3. MM-ME48-Display Quotation

Overview

The need arises to display a quotation already maintained for an RFQ (Request for Quotation) in the system.

This BPP will discuss the procedure to display a quotation in the R/3 system.

RFQ number RFQ number for which you want to display quotation information.

Quotation is displayed. Display Only format.

Tips and Tricks

By consistently using the collective number field on RFQ’s, the search for the required RFQ number is much simpler.

Changes can not be made in this mode. If changes are required, transaction ME47can be used to maintain quotation data. See BPP MM-ME47-Maintain Quotation.doc for reference.

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Access transaction by:

Via Menu Logistics > Materials Management > Purchasing > RFQ/Quotation >

Quotation > Display

On the “Display Quotation: Initial Screen” screen, enter information in the fields as

specified in the table below:

RFQ RFQ number R Enter RFQ number (typically a

non-intelligent system generated number).

Matchcode (F4) search functions can be used to find an appropriate RFQ in the system.

Press the Enter key or click on the green

Enter icon.

On the “Display Quotation: Item Overview” screen the following data will be returned in

display-only format:

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Field Name Description

Item Number Item within RFQ

Material Material master number

Short Text Description of the material or service to be procured

RFQ quantity The quantity of material required

OuN Order Unit

Delivery Date Date that the material will be due

Price The price that the vendor has quoted for this item

Material Group Material group that the item most closely belongs to

Plant Plant number

Storage Location Storage location number

D Deletion indicator

R Rejection indicator specifying that the vendor is to receive a rejection letter in

respect of his quotation.

Texts Text associated with a line item. An icon will appear in the text field if text has

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More detailed information can be viewed by clicking on any one of the following toolbar

icons.

Button Name Information Returned

Header details (F6) Administrative field values and Reference data.

Vendor address (F7) Vendor name, address, search terms, communication data, etc. Partners (Ctrl-Shift-F5) Partner Schema (if applicable)

Messages (Shift-F1) Printing information

Item details (F2) Line item specific data (select line on RFQ and click on icon)

Example: In the event that the header data needs to be displayed, use the menu path Header  Details, or click on the Display Header icon. On the “Display Quotation: Header Data” screen the following data will be returned in display only format:

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Field Name Description

RFQ RFQ number

RFQ Type Type of RFQ

Vendor Vendor number

Company Code Company code

Purchasing Group Purchasing group code

Purchasing Organization Purchasing organization number

RFQ date Date of RFQ creation.

Validity start Start of the period in which the RFQ may be submitted

Validity end End of the period in which the RFQ may be submitted

Payment terms Terms stipulated by vendor

Collective number Number used to collectively group RFQ‟s

Quot. dead. Date by which the vendor is to submit the quotation

Applic. by Date by which the bidder is to express an interest in submitting a bid.

Bindg. per. Date for which the quotation is valid and binding

Target val Target value of the contract.

Quotation date Date quote submitted by vendor

To return , click on the green Back button , the yellow Exit button or press the <Shift + F3> keys.

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4. MM-ME49-RFQ Comparison

Overview

The need arises to make a price based comparison of the different quotations sent by vendors to select the most suitable vendor.

BUSINESS PROCESS PROCEDURE OVERVIEW

This BPP will discuss the procedure to compare different quotations to select the most suitable vendor for the material.

Input – Required Fields Field Values/Comments

Purchasing Organization Enter the number of the purchasing organization under which the

procurement will be done.

Collective RFQ number Enter the Collective RFQ number for the quotations to be

compared.

Output - Results

A list o A comparative analysis of the different quotations.

Access transaction by:

Via Menu

Via Transaction Code

Logistics>Material

management>Purchasing>RFQ/Quotation>Quotation>ME49 Price Comparison

ME49

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On screen “Price Comparison List”,enter information in the fields as specified in the below table:

Purchasing Organizatio n Collective RFQ number Mean Value Quotation Minimum Value Quotation Include discounts Purchasing Organization number

Collective RFQ number for the quotations to be compared

Select this indicator if the basis for comparison is to be the average price from all quotations.

Select this indicator if the R

R

O

Enter Purchasing Organization number

Enter the collective RFQ number

Click on <EXECUTE>

Match code (F4) Enter the Purchasing

Organization and the Collective RFQ number

MM Purchasing User Manual

Page | 1

BSNL

USER MANUAL: Purchasing

Version:1.0

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Table of Contents

Page | 3

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FLOWCHART

Page | 5

1. Purchase requisition

1. MM-ME51N-Create Purchase Requisition for Account Assignment

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Access transaction by:

On screen “Create Purchase Requisition”: enter header level information specified in the

table below:

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On the same screen, in “Create Purchase Requisition: Item Overview”: enter information

specified in the table below:

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Click on the check button

to check the document

System displays a message at the Bottom of the screen.

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2. MM-ME51N-Create Purchase Requisition for Asset

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Access transaction by:

Page | 15

On screen “Create Purchase Requisition”: enter header level information specified in the

table below:

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On the same screen “Create Purchase Requisition: Item Overview”: enter information

specified in the table below:

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3. MM-ME51N-Create Purchase Requisition for Non Valuated materials

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Access transaction by:

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On screen “Create Purchase Requisition”: enter header level information specified in the

table below:

Page | 21

On the same screen, in “Create Purchase Requisition: Item Overview”: enter information

specified in the table below:

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4. MM-ME51N-Create Purchase Requisition for Stock materials

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Access transaction by:

Page | 25

On screen “Create Purchase Requisition”: enter header level information specified in the

table below:

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On the same screen, in “Create Purchase Requisition: Item Overview”: enter information

specified in the table below:

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Use the check button

.

If the system does not generate any error message then Click on the save

or hit

Control + S.

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5. MM-ME52N-Change Purchase Requisition

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Access transaction by:

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On screen “Change Purchase Requisition”, the last Requisition saved will be displayed as

default. To enter different number select the icon

.System will display another

window to select other document.

Then delete the document default one and type other PR number and select other

document tab.

System will display other Purchase document.

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