Master data in SAP MM

What are the different Types of Master data in SAP MM?

The Master data in SAP is used to be base data that can store all the required inform about the transaction. If someone producing, transferring stock, selling, purchasing, doing physical inventory it necessary to maintain some data that includes material master data,vendor master data and purchasing master data.The below post we are going to discuss the information of different types of master data in sap mm.

Material master data, The basic details on materials an enterprise procures externally or produces in-house. The unit of measure and the description of a material are examples of the data stored in a material master record. Other SAP Logistics components also access the material data.

The material master database (often referred to simply as the “material master“, and comprising all the individual material master records stored in the system) contains descriptions of all materials that an enterprise procures, produces, and keeps in stock. It is the central repository of information on materials (such as inventory levels) for the enterprise.

The integration of all material data in a single materials database eliminates the problem of data redundancy and permits the data to be used not only by Purchasing, but by other applications (such as Inventory Management, Materials Planning and Control, Invoice Verification, and so on).

Vendor master data called as Information about external suppliers. The vendor’s name and, the currency the vendor uses, and the vendor number (stored in the SAP system as an account number) are typical vendor data.

The vendor master database contains information about the vendors that supply an enterprise. It consists of a large number of individual vendor master records, each containing the relevant vendor’s name and address as well as data such as:

• The currency used for ordering from the vendor
• Terms of payment
• Names of important contact persons (sales staff)

In Accounting, the vendor represents an account payable, the vendor master record also contains accounting information, such as the relevant control account (reconciliation account) in the general book keeping system.

Therefore, the vendor master record is maintained by both Accounting and Purchasing.

Purchasing master data, such as the following:
Purchasing info record establishes the link between material and vendor, thus facilitating the process of selecting quotations. For example, the info record gives the unit of measure used for ordering from the vendor, and indicates vendor price changes affecting the material over a period of time.

Source list, The source list specifies the possible sources of supply for a material. It shows the time period during which a material may be ordered from a given vendor.

Quota arrangement, specifies which portion of the total requirement of a material over a certain period is to be assigned to particular vendors on the basis of quotas.

This section provides an overview of materials planning and control and shows how the latter affects the purchasing activities in the SAP system.

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Release Procedure for Purchase Requisition in SAP MM

This post describes the release procedure for requisitions in Purchasing. This topic “release” means giving approval, or clearance, to go ahead with the procurement of the materials or services set out in the requisition, and should not be confused with the issuing of orders against longer-term purchase agreements.

The topic discusses how the release (approval) of purchase requisitions is controlled, how you can determine who must release (approve) a purchase requisition, and how a purchase requisition is actually released (approved). In this topic within the Purchasing, there are two procedures for releasing purchase requisitions,

Release procedure 1 (without classification)

Release procedure 2 (with classification)

To Explain Release Procedure 1
 
This procedure serves as a correction and approval procedure for purchase requisitions. Its aim is to check the data on material, quantity, and dates for accuracy and ensure the correctness of the specified account assignment and source of supply. Purchase requisitions are released on an item by item basis.

For example, suppose strategy S1, which is assigned to requisitions with a face value of more than $10,000, requires approvals as shown in the following table.

Release prerequisites in the case of release strategy S1

Release procedure for Purchase Requisition in SAP MM

Strategy –  Release point, Strategy

Prerequisites -S1

1 – Project manager – None

2 – Department manager- None

3 – Cost center manager-  1, 2

4 – Controller- None

5 – CEO-1, 2, 3, 4

In addition, the following release prerequisites apply for release strategy S1:

Release points 1 – 4 must release a requisition before it is released by the CEO (release point 5).

Release point 4 may release at any time, but before release point 5.

After a requisition is released by release points 1 – 3, Purchasing may issue RFQs to potential vendors.

This procedure is only available for purchase requisitions.

What is Release procedure 2

The aim of this procedure is to replace manual written authorization procedures using signatures by an electronic one, while maintaining the dual control principle. The person responsible processes the relevant document in the system, thereby marking it with an “electronic signature” which can give the document legal force. A purchase order contains an item relating to 1,000 pieces of Steel 1 for plant 2.

The material belongs to the material class Metal 05. The item has a value of 15,000 dollars. As soon as the item has been entered, the system passes on the field contents from MM Purchasing to MM Classification in a communication structure. Classification first selects the relevant characteristics and then checks the characteristic values.

For example, let us assume that the Classification System has been set up as follows: System settings for 01-S4 (Group 01, purchase order, strategy S4)

Characteristic – Characteristic value

Plant  1, 2, 3

Material class – Metal 1

Value > $12,000

This means that the characteristics plant, material class, and value of item are relevant for the determination of the release strategy for purchase orders. The system determines the release strategy S4 on the basis of the characteristic values.

This procedure is available not only for purchase requisitions but for all other purchasing documents as well. Release on an item-by-item basis is only possible in the case of requisitions, not in the case of the other purchasing documents.

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Outline agreement in SAP

This post explains general background information on the “outline agreements” (which, outside the SAP System, may also be referred to as blanket, master, framework or umbrella agreements) that are used in the SAP MM Purchasing component. In basic Outline Agreement can be classified with 2 different types. Contract and Scheduling agreements.

Contract is nothing but where you can have contract with the vendor,and this might be predetermined quantity. For example whenever you need the material the you need to make PO reference to this contract and asking for the delivery of the material.

Scheduling agreement is nothing but long term purchase agreement, where you can keep issuing the delivery schedules whenever there is change in requirement or predetermined time intervals. We can classify the delivery schedule on hour or daily or weekly or monthly basis.

An outline agreement is a longer-term arrangement with the vendor regarding the supply of materials or the performance of services according to predetermined terms and conditions. In MM Purchasing, such agreements are subdivided into “contracts”and “scheduling agreements.” Outline agreements may be subject to a release (approval or clearance) procedure.

To Create Contract following the below steps:

Path to create Contract:
Logistics => Materials Management => Purchasing => Outline Agreement => Contract => Create
Transcation Code: ME31L

The Structure of an outline agreement

As in the case of other purchasing documents, an outline agreement consists of the following elements:

Document header:

• It contains information specific to the entire agreement.
• For example: the vendor information and header conditions are in the document header.

Items:

• Items that contain the information specific to the material or service. For example:
• Statistics on ordering activities for the item
• Quantity or price of the item
• Pricing conditions, such as quantity discounts and surcharges

Texts in outline agreements

You can create your own texts from scratch in an agreement or change a text that has been suggested by the system. There are two kinds of agreement text: header text and item text. The texts are further subdivided into text types, for example, shipping and delivery instructions. The text type determines the print sequence on the document printout.

Outline agreement is nothing but long term purchasing agreement with vendor in containing certain terms and conditions regarding the raw material that is supplied by the vendor. Outline agreement which is valid up to certain period of time with some predefined quantity or value.

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SAP ERP: Technosap

SAP ERP is enterprise resource planning software developed by the German company SAP SE. SAP ERP incorporates the key business functions of an organization. The latest version (SAP ERP 6.0) was made available in 2006. The most recent Enhancement Package (EHP7) for SAP ERP 6.0 was released in 2013.

Business Processes included in SAP ERP include Operations (Sales & Distribution, Materials Management, Production Planning, Logistics Execution, and Quality Management), Financials (Financial Accounting, Management Accounting, Financial Supply Chain Management) and Human Capital Management (Payroll, e-Recruiting)

Development

SAP ERP was built based on the former SAP R/3 software. SAP R/3 through version 4.6c consisted of various applications on top of SAP Basis, SAP's set of middleware programs and tools. When SAP R/3 Enterprise was launched in 2002, all applications were built on top of the SAP Web Application Server. Extension sets were used to deliver new features and keep the core as stable as possible. The Web Application Server contained all the capabilities of SAP Basis.

As a result of marketing changes and changes in the industry, new versions of SAP have been released. The first edition of mySAP ERP was launched in 2003 and bundled previously separate products, including SAP R/3 Enterprise, SAP Strategic Enterprise Management (SEM) and extension sets. The SAP Web Application Server was wrapped into NetWeaver, which was also introduced in 2003.

A complete architecture change took place with the introduction of mySAP ERP edition in 2004. R/3 Enterprise was replaced with the introduction of ERP Central Component (SAP ECC). The SAP Business Warehouse, SAP Strategic Enterprise Management and Internet Transaction Server were also merged into SAP ECC, allowing users to run them under one instance. Architectural changes were also made to support an enterprise service architecture to transition customers to a services-oriented architecture.

ERP advantages and disadvantages

Advantage

• Allows easier global integration (barriers of currency exchange rates, language, and culture can be bridged automatically)
• Updates only need to be done once to be implemented company-wide
• Provides real-time information, reducing the possibility of redundancy errors
• May create a more efficient work environment for employees
• Vendors have past knowledge and expertise on how to best build and implement a system
• User interface is completely customizable allowing end users to dictate the operational structure of the product

Disadvantages

• Locked into relationship by contract and manageability with vendor - a contract can hold a company to the vendor until it expires and it can be unprofitable to switch vendors if switching costs are too high
• Inflexibility - vendor packages may not fit a company's business model well and customization can be expensive
• Return on Investment may take too long to be profitable
• Implementations have a risk of project failure 

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SAP Purchasing info Records Types: Technosap

The purchasing info records is source of information for purchasing. It contains information on a specific material and a vendor supplying the material. For example, the vendor’s current pricing is stored in the info record. The purchasing info records referred to in abbreviated form as called Info record.

Types of SAP Purchasing info records, There are two types of info records available in sap

Info records with a material master record (e.g. for stock material), This type of info record represents the relationship between a material or service (for which a master record exists) and a vendor.

Info records without a material master record (e.g. for consumable materials), This type of info record represents the relationship between a material or service for which no master record exists and a vendor.

Sucontractor info records
A subcontractor info records contains ordering information for subcontract orders. For example, if you subcontract the assembly of a component, the subcontractor info record would include the vendor’s (subcontractor’s) price for assembling the component.

Pipeline info records
The pipeline info record contains information on a vendor’s commodity that is supplied through a pipeline (for example, oil or water) or via similar means (for example, electricity through the mains). The info record contains the vendor’s price for the consumption of such commodities by the buyer (“pipeline withdrawals”). You can store withdrawal/usage prices for different validity periods.

Structure of an info records
An info record contains general data and organizational data:

General data -Data that is valid for each purchasing organization or each plant (for example, origin data, reminder levels, and the order unit). Organizational data – Data such as prices and pricing conditions that you can store for the relevant purchasing organization or plant.

Texts in the info records
The info record contains the following text types: Info record memo.. An internal note that is adopted in the PO item. The info record memo is not printed out

PO text in info records
This text serves to describe the order item and corresponds to the PO text in the material master record. It is adopted in the PO item and included in the printout.

Short text
For material that has a material master record, the short text (short description) is copied directly from the material master record into the PO or the outline purchase agreement.

Purchasing info records stores information on the material and vendor supplying the material. For Example, vendors present price of particular material is stored in info record. Purchase info record can be maintained at plant level or other end its at purchasing organization level.

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SAP SD Online Training Tutorials

Free SAP SD (Sales and Distribution) Training Tutorials

SAP SD ( Sales and Distribution ) Training tutorials by the real time functional consultant and experts . The SAP SD module handles all the processes starting from an Order to delivery. The main operations of this SAP SD module handle Customer Sales Orders processing, pricing, Picking, packing, Shipping, billing and risk management etc.

Sales and Distribution (SD) is one of the core and most-used modules of SAP R/3 products beside Financial (FI), Controlling (CO), Material Management (MM), and Production Planning (PP) modules. The Sales & Distribution (SD) module consists of various components also called sub-modules. Which are follow as below,

(SD-BF) Basic Functions and Master Data in SD Processing. (Also subdivided in several components as: Pricing, Output…etc)
(SD-BF-PR) Pricing and Conditions
(SD-BF-EC) Extra Charge
(SD-BF-CM) Availability Check and Requirements in Sales and Distribution Credit and Risk Management
(SD-BF-AS) Material Sorting
(SD-BF-OC) Output Determination
(SD-SLS) Sales
(SD-SLS-OA) Scheduling Agreements for Component Supplierssap sd training tutorials
(SD-SLS-OA) Customer Service Processing
(SD-FT) Foreign Trade/Customs
(SD-BIL) Billing
(SD-BIL-IV) Payment Card Processing
(CAS) Sales Support: Computer-Aided Selling
(SD-EDI) Electronic Data Interchange/IDoc Interface
(LE-SHP) Shipping
(LE-TRA) Transportation
(SD-IS-REP) Reports and Analyses

SAP SD (Sales and Distribution) module and with the sub module are

• Pre-sales activities, including Inquiry and Quotation creation.
• Sales Order processing, including Sales Order (SO)
• Shipping, including Outbound Delivery document creation.
• Billing, including Billing document and invoice creation.

Sales and Distribution (SD) is a module highly integrated with other SAP Modules as FI, CO, MM, PP & more. This can make SAP SD complex module, so as part of this Introduction we will also try to detail a normal sales process and how the activities integrate and are covered by this module.

Pre-sales activities: It starts when a customer or a prospect requests information by any source about a product or service offered by the company. This request is processed through SAP and the first integration we have is by the creation of an Inquiry Document or a Quotation Document. At this point of the process we still haven’t effectively made a sale that’s why it is considered as a presale activity.

Sales Order processing: Our quotation document previously created is send to our customer so they can make effective their purchase procedure. At this point they may want to negotiate payment terms, price, dates or any adjustments to the original document created by us.

As soon as we receive a Purchase Order (PO) from our Customer we create a Sales Order (SO) which makes reference to the previously created Quotation Document. Now scenario  is adjusted based on the business requirements. In some cases depending on the business Sales Orders (SO) can be made without a previously created quotation document as also in other scenario this can be a requirement.

Inventory Sourcing: The product requirement from the Sales Order at the required date needs to be available by one of the following options:

To fulfill the products requirement from an SO at the required date, we can obtain them by one of these options:

• Taking from Available stock at warehouse. At this point the SD module may trigger stock transfers between warehouses.
• Triggering a production order to produce the products in-house.
• Triggering a purchasing order to purchase the products from vendor.

Here is where the integration between Production Planning (PP) and Material Management (MM) starts.

Shipping: When the product we sold is available at the warehouse, the sales personnel can start shipping activities by creating an outbound delivery document (Delivery Order/DO). Now this Deliver Order (DO) can be created by referring to our original Sales Order (SO). This will trigger the preparation of the product by the personnel of the warehouse. If the Warehouse Management (WM) module is integrated, a Deliver Order (DO) can trigger a Transfer Order. When the products are ready to be sent, the warehouse personnel will post the Goods Issue (GI) transaction that refers to the DO. The GI transaction will reduce the inventory level of products and then the warehouse personnel sends the products to the customer by transportation mode that has been determined in Sales Order (SO) document.

Billing: This whole process will be managed before the delivery date specified in the Sales Order (SO) document. The finance department will generate a billing document and send an invoice form to the customer. The invoice will request the customer to pay the products we have sent at the price condition and terms of payment we have agreed in SO document.

SAP Sales and Distribution consists of all business processes required in selling, shipping the goods, and final billing of the item. This SAP SD module is closely integrated with other SAP Modules.

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How to Explain Output determination Procedure in SAP SD?

Output determination Transaction code : (NACE T-code)

Output is a form of media from a business to one of its business partners. The possible media forms are printouts, faxes, telexes, e-mails, and EDI. The output can be sent to any of the partners defined in the document. Outputs are usually in the form of order confirmations, delivery notes, invoices, and shipping notifications.



Output determination to maintain 8 activities

A. Sales Activities

B. Sales document’

C. Deliveries

D. Picking lists

E. Shipping units

F. Groups (type of collective processing_

G. Shipments

H. Billing Document

1. Maintain Condition Table

2. Access Sequence

3. Output Type

BA00-Order Confirmation

1. In condition type in general record assign the access sequence

2. Here one can do setting either access sequence should purpose from condition record or customer master records

3. One can set here business partner SP, BP, Ship to party etc. Screen :

Default values

4. Assign Output Types To Partner Functions

Specify a previously defined output type. Specify the allowed partner functions. Define an output medium (for example, printout, telefax, or mail).

5. Maintain Output Determination Procedure

6 Assign output Determination Procedure

Sales order confirmation

1. Maintain output types (Transaction: V/30 or Sales & Distribution -> Basic Functions -> Output -> Output determination -> Output proposal using the condition technique -> Maintain output determination for sales document -> Maintain output types)

1.1. Select and copy BA00 to ZA00

1.2. Access sequence 0003 (Sales org / customer). If one of these is not suitable then you need to maintain condition tables

1.3. Change Transm. Medium to 6 (EDI), partner function SP (Sold to), Time (4 = immediate)

1.4. Check access to conditions and check off multiple issuing

1.5. Save

2. Assign output determination procedure (Transaction V/47 or Sales & Distribution -> Basic Functions -> Output -> Output determination -> Output proposal using the condition technique -> Maintain output determination for sales document -> Assign output determination procedure)

2.1. Create a new entry for ZA00, medium 6, function SP and order confirmation.

3. Maintain output determination procedure (Transaction V/32 or Sales & Distribution -> Basic Functions -> Output -> Output determination -> Output proposal using the condition technique -> Maintain output determination for sales document -> Maintain output determination procedure)

3.1. Check Assign output determination procedures -> Allocate sales document header (Transaction V/43) for the Output procedure being used for order OR and BA00 and you’ll find that it is linked to V10000

3.2. Select V10000 (Transaction v/32) and choose control

3.3. Add a new step for your new output type. Eg. Step 40 (Next Step in sequence), Counter, Type = ZA00 and requirement 22 (Requirement tells when the output is required to be fulfilled. Ie. After order confirmation, after goods issue, …)

4. Create condition records (Menu path: Logistics –

> Sales & Distribution -> Master data. Output -> Sales document – Create)

4.1. If required select the appropriate key combination (in this case the Sales org / customer relationship)

4.2. Enter the customer number (QWM000 in this case) and enter. The rest of the values should be read in except the partner number.

4.3. Enter the required partner number (QWM000 in this case). This is the partner that will be EDI’d the data. It is usefull when you have multiple SAP customers that need to send messages to 1 partner. Eg. All the Wal-Marts send their invoices to 1 office. You would then have a list of customers, relating to each Wal-Mart, pointing to 1 Wal-Mart partner that will receive all the EDI docs.

Advance shipping notification

Similarly the output type was copied from LALE to ZALE and linked to partner QWM000

Based on when a delivery note is created (Transaction V/36)

Invoice

Similarly the output type was copied from RD00 to ZD00 and linked to partner QWM000

Based on when a delivery goods issue is posted. (Transaction V/42)

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Request For Quotation (RFQ)

What is request for quotation (RFQ) in sap?

The Request For Quotation (RFQ) is an invitation to a vendor to indicate his terms and conditions (in particular, his price) for the supply of a material or the provision of a service by submitting a quotation. As in the case of the purchase requisition, the RFQ identifies the material, quantity, and delivery date.

In addition, the RFQ contains information about the vendor to whom the request for quotation (RFQ) is sent (for example, the vendor’s name and address) and important dates for the RFQ (such as the closing date for applications, or pre-qualification date, and bid submission deadlines). RFQs can be subject to a release procedure.

Structure of an RFQ in SAP
The request for quotation is organized as other purchasing documents. The header contains general information about the RFQ, such as the vendor address. Each item identifies the individual materials for which a price is required from the vendor. One main difference between request for quotation (RFQs) and other purchasing document types is the fact that you cannot enter account assignments for RFQ items.

To Create RFQ in SAP use the Transaction code: ME41

What is a quotation in SAP?

The quotation contains the vendor’s pricing and conditions for providing the material or service stated in the RFQ. In SAP MM Purchasing, the request for quotation and quotation are the same document. You enter the vendor’s pricing and conditions in the original RFQ.

Then you can find the below points

• To use the price comparison list to help you determine the best quotation.
• To send rejection letters to the appropriate vendors.
• To store the pricing and terms of delivery for certain quotations in the info record for future reference.

Processing of request for quotation (RFQs) and Quotations.

• You do the following when processing sap request for quotation RFQs and quotations:
• You create an RFQ manually or by referencing a requisition.
• You specify which vendors will receive the request for quotation. A separate document is created for each addressee.
• You enter the prices and conditions from the vendor’s quotation into the request for quotation RFQ.
• You can monitor the status of the request for quotation and quotation as it is further processed (that is, following creation of a contract or purchase order).

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Material Ledger Closing in SAP Quick review

Movements for a material that is valuated with the material ledger are always carried out using the valuation price. If the price control indicator in the material master record is S, movements for the material are carried out with the standard price. If the price control indicator in the material master record is V, movements for the material are carried out with the periodic unit price.

When postings such as invoice receipts occur, the prices can differ from the valuation price. These differences are collected and totaled by the material ledger and taken into account during material ledger closing.

The Before Material Ledger Closing: The differences between the valuation price that occur when postings are made are collected the following categories:

GR/IR (goods receipt/invoice receipt): Differences between actual values and the valuation price that may occur due to invoice receipts are collected here. Differences can occur between a goods receipt and an invoice receipt, because the invoice price is unknown at the time of goods receipt. The values from invoice receipts are posted to a GR/IR clearing account and the offsetting entry is made in the vendor account.

Value Variances: Differences between actual values and the valuation price that can occur due the to the following are collected as,

1. The Goods receipts for the production order
2. Transfer postings
3. Goods issues
4. The Initial entries of inventory data with a specified amount
5. Deliveries free of charge
6. Inward movements from consignment inventory to the company’s own stock
7. Purchase order-related goods receipts

Values from goods receipts are posted to a GR/IR clearing account; the offsetting entry takes place in the material inventory account. If the the order price differs from the valuation price in the goods receipt, the system posts an offsetting entry to the material stock account and the price difference account (transaction key PRD). Such differences are totaled in the material ledger and indicated as to be closed. With goods receipts that are not based on a purchase order item, price difference are posted directly to the price difference accounts.

Posting to a Prior Period: Variances are collected here when a posting is made to the previous period using a valuation price other than the one in the current period.

At Material Ledger Closing: At material ledger closing, the system takes the differences arising in the above categories into account, depending on the price control of the material. If you carry out material ledger closing for a single material (without saving), you can display which postings the material ledger would make and with what amounts if you were to save the material ledger closing at this time

Materials with S price control (standard price): The system calculates for each material, the balance on the GR/IR clearing account and posts this amount to a price difference account (transaction key PRY). Differences that were collected in the Value variances category were posted to various price difference accounts before material ledger closing. These postings are not changed.

Differences that were collected in the Posting to a prior period category were posted to the revaluation account before material ledger closing. These postings are not changed. The new periodic unit price is calculated for statistical information.

Materials with V price control (periodic unit price): The system calculates the balance on the GR/IR clearing account and posts this amount to the material stock account in proportion to the current inventory quantity. The portion of the balances with which the material inventory cannot be debited are posted to a price difference account (transaction key PRY). Differences that were collected in the Value variances category were posted to various price difference accounts before material ledger closing. These postings are offset in total against a separate price difference account at material ledger closing (transaction key PRY).

The system calculates the balance and posts this amount to the material stock account in proportion to the current inventory quantity. The portion of the balances with which the material inventory cannot be debited are posted to a price difference account (transaction key PRY)

Differences that were collected in the Posting to a prior period category were posted to the revaluation account before material ledger closing. The system calculates the balance on this account and posts this amount to the material stock account in proportion to the current inventory quantity.

The portion of the balances with which the material inventory cannot be debited are posted to a price difference account (transaction key PRY). The postings to the material stock account result in a new periodic unit price for the material, found by dividing the inventory value by the inventory quantity.

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SAP SD Tables list Overview

SAP Training Tutorials gives to know more on the SAP SD tables which using frequently in SAP SD sales and distribution module. The list of important SP SD tables as below,

General Tables

• KNA1 : General Data
• KNB1 : Customer Master – Co. Code Data (payment
• method, reconciliation acct)
• KNB4 : Customer Payment History
• KNB5 : Customer Master – Dunning info
• KNBK : Customer Master Bank Data
• KNKA : Customer Master Credit Mgmt.
• KNVP : Partner Function key
• KNVD : Output type
• KNVS : Customer Master Ship Data
• KNKK : Customer Master Credit Control Area Data (creditlimits)
• KNVV : Sales Area Data (terms, order probability)
• KNVI : Customer Master Tax Indicator
• KLPA : Customer/Vendor Link
• VBUK : Header Status and Administrative Data

SAP Sales Order Document Tables

• VBAK : Sales Document – Header Data
• VBKD : Sales Document – Business Data
• VBUP : Item Status
• VBAP : Sales Document – Item Data
• LIPS : Delivery Document item data, includes referencing PO
• LIKP : Delivery Document Header data
• VBPA : Partners
• VBFA : Document Flow
• VBEP : Sales Document Schedule Line
• VBBE : Sales Requirements: Individual Records
• VBRK : Billing Document Header
• VBRP : Billing Document Item
• VEKP : Shipping Unit Item (Content)
• VEPO : Shipping Unit Header

SAP Shipping & Delivery Document Tables

• LIKP : SD Document: Delivery Header Data
• LIPS : SD document: Delivery: Item data
• VEPO : Packing: Handling Unit Item (Contents)
• VEKP : Handling Unit – Header Table
• VTTP : Shipment Item
• VTTK: Shipment Header
• VBLK : SD Document: Delivery Note Header

SAP Billing Document Tables

• VBRK : Billing Document: Header Data
• VBRP : Billing Document: Item Data
• VBSS : Collective Processing: Sales Documents
• VKDFS: SD Index: Billing Initiator
• NAST : Message Status
• VBSK : Collective Processing for a Sales Document Header
• VRPMA: SD Index: Billing Items per Material
• VRKPA : Sales Index: Bills by Partner Functions

SAP Material Master Data Tables

• MARA : General Material Data
• MAKT : Material Descriptions
• MARM : Units of Measure for Material
• STXH : STXD SAPscript text file header
• STXL : STXD SAPscript text file lines
• MARC : Plant Data for Material
• MVKE : Sales Data for Material
• T179 : Materials: Product Hierarchies
• MLAN : Tax Classification for Material

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HR Human Resource Transaction Codes - Technosap.com

SAP HR Transaction Codes
 

SAP HR (Human Resource) module enables each company to effectively manage the employee information in their organization. SAP HR is integrated with other SAP modules and external systems. SAP HR Tcodes (Transaction codes) are the short-cut codes that will help users to take in to directly to the desired screen. To execute the transaction RPDTRA00 to list all
HR Transactions.

The followings are some useful SAP HR Tcodes:

SAP HR Tcodes – Master Data

Transaction Code  Description

PA10 Personnel file
PA20 Display HR Master Data
PA30 Maintain HR Master Data
PA40 Personnel Events
PA41 Change Hiring Data
PA42 Fast Data Entry for Events
PRMP Travel Expenses : Feature TRVPA
PRMD Maintain HR Master Data
PRMF Travel Expenses : Feature TRVFD
PRML Set Country Grouping via Popup
PRMM Personnel Events
PRMO Travel Expenses : Feature TRVCO
PRMS Display HR Master Data
PRMT Update Match code
PS03 Info type Overview
PS04 Individual Maintenance of Info types

SAP HR Tcodes – Time Management

PA51 Display Time Data
PA53 Display Time Data
PA61 Maintain Time Data
PA62 List Entry of Additional Data
PA63 Maintain Time Data
PA71 Fast Entry of Time Data
PBAB Maintain Vacancy? assignments
PT01 Create Work Schedule
PT02 Change Work Schedule
PT03 Display Work Schedule
PA64 Calendar Entry
PA70 Fast Data Entry

SAP HR Tcodes – Payroll

PA03 Change Payroll control record
PC00 Run Payroll
PC10 Payroll menu USA
PE00 Starts Transactions PE01 PE02 PE03
PE01 Schemas
PE02 Calculation Rules
PE03 Features
PE04 Create functions and Operations
PE51 HR form editor
PRCA Payroll Calendar
SPRO IMG
SE16 Data Browser (Table Reports)
PRCT Current Settings
PRCU Printing checks USA
PRD1 Create DME
SM31 Maintain Table
SM12 Locked Secessions
TSTC Table Look up
PP03 PD Tables
PPOM Change Org Unit
PO13 Maintain Positions
PO03 Maintain Jobs

SAP HR Tcodes – Benefits
 
PA85 Benefits – Call RPLBEN11
PA86 Benefits – Call RPLBEN07
PA87 Benefits – Call RPLBEN09
PA89 COBRA Administration
PA97 Salary Administration – Matrix
PA90 Benefits Enrollment
PA91 Benefits – Forms
PA92 Benefits Tables – Maintain
PA93 Benefits Tables – Display
PA94 Benefits – Access Reporting Tree
PA95 Benefits IMG – Jump to Views
PA96 Benefits reporting
PA98 Salary Administration
PA99 Compensation Admin – rel. Changes
PACP HR-CH : Pension fund, interface

SAP HR Tcodes – General Reporting

PM00 Menu for HR Reports
PM01 Dialogs in HR – Create Custom info types
PRFO Standard Form
PSVT Dynamic Tools Menu
PAR1 Flexible Employee Data
PAR2 Employee List

SAP HR Tcodes – Organizational Management
 
PPOM Change org Unit
PO03 Maintain Jobs
P013 Maintain Position
PO10 Maintain Organizational Unit
PP01 Maintain Plan Data (menu-guided)
PP02 Maintain Plan Data (Open)
PP03 Maintain Plan Data (Event-guided)
PP05 Number Ranges
PP06 Number Ranges Maintenance HR Data
PP07 Tasks/Descriptions
PP69 Choose Text for Organizational Unit
PP90 Setup Organization
PP01 Change Cost Center Assignment
PP02 Display Cost Center Assignment
PP03 Change Reporting Structure
PP04 Display Reporting Structure
PP05 Change Object indicators (O/S)
PP06 Change Object indicators OS
PPOA Display Menu Interface (with dyn.)
PPOC Create Organizational Unit
PPOM Maintain Organizational Plan
PPOS Display Organizational Plan
PQ01 Events for Work Center
PQ02 Events for Training Program
PQ03 Events for Job
PQ04 Events for Business Event Type
PQ06 Local Events
PQ07 Resource Events
PQ08 Events for External Person
PQ09 Events for Business Event Group
PQ10 Events for Organizational Unit
PQ11 Events for Qualification
PQ12 Resource Type Events
PQ13 Events for Position
PQ14 Events for Task
PQ15 Events for Company
PSO5 PD : Administration Tool
PSOA Work Center Reporting
PSOC Job Reporting
PSOG Org Mgmt General Reporting
PSO1 Tools Integration PA-PD
PSOO Organizational Unit Reporting
PSOS Position Reporting
PSOT Task Reporting

SAP HR Tcodes – Recruitment
  
PB10 Initial Entry of applicant master data
PB20 Display applicant master data
PB30 Maintain applicant master data
PB40 Applicant events
PB50 Display applicant actions
PB60 Maintain Applicant Actions
PB80 Evaluate Vacancies
PBA0 Evaluate Advertisements
PBA1 Applicant Index
PBA2 List of applications
PBA3 Applicant vacancy assignment list
PBA4 Receipt of application
HRP1505 DB Table for Infotype 1505
HRP1506 DB Table for Infotype 1506
HRP1507 DB Table for Infotype 1507
HRP1518 DB Table for Infotype 1518
HRP1519 DB Table for Infotype 1519
HRP1520 DB Table for Infotype 1520
HRP1600 Database Table for Infotype 1600
HRP1601 Database Table for Infotype 1601
HRPAD21 Additional data PAD21
HRPAD22 Additional data PAD22
HRPAD23 Additional data PAD23
HRPAD25 Additional data PAD25
HRPAD27 Additional data PAD27
HRPAD31 Additional data PAD31
HRPAD44 PAD44 Additional Data
HRPAD47 PAD47 Additional Data
HRPAD48 Additional Data PAD48
HRPAD50 Additional Data PAD50
HRPAD51 Additional data PAD51
HRPAD53 Additional Data PAD53
HRPAD63 PAD63 Additional Data
HRPAD77 Additional data for PAD77
HRPADBLIST Additional Data Databases
HRPADD2 Additional Data PADD2
HRPADD3 Additional Data PADD3
HRPADIC Additional Data PADD2
HRPADNLIST Additional Data Number List
HRPADNN General Additional Data Table
HRPADP1 Additional Data PADP1
HRPADP2 Additional Data PADP2
HRPADPM Additional Data PADPM
HRPADTI PADTI Additional Data
HRPADUZ PADUZ Additional Data- RequirementsAssignment of Persons
HRPADXN Additional Data PADXN
HRPS_T012K For Decoupled Access to T012K (House Bank and Account)
HRPVAC List of vacant positions

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SAP HR Table list

SAP Training Tutorials gives the to know ore on the SAP HR tables which frequently using SAP HR Module.The list of SAP Human Resources tables as below,

DD01L Domains
DD02L SAP tables
DD06L Pool/cluster structures
DD20L Matchcode Ids
DD03L Table Fields
DD03T DD: Texts for fields (language dependent)
DD04L Data elements
DD04T R/3 DD: Data element texts
DD05S Foreign key fields

DD24S Fields of a matchcode ID
T000 Clients
T001 Company Codes
T001E Company code-dependent address data
T001P Personnel Areas/Subareas
T012 House banks
T012K House bank accounts
T012T House bank account names
T504C Benefit Type (NA)
T500L Personnel Country Grouping
T500P Personnel Areas
T502T Marital Status Designators
T500T Personnel Country Groupings
T501 Employee Group
T501T Employee Group Names
T503 Employee Groups / Subgroups
T503K Employee subgroup
T503T Employee Subgroup Names
T504A Benefits – Default Values (NA)
T504B Benefit Option Texts (North America)
T504D Benefit Credit Group Amount
T504E Benefit Amount
T504F Benefit Costs
T508A Work Schedule Rules
T508T Texts for Employee Subgroup Groupings for Work Schedules
T510 Pay Scale Groups
T510A Pay Scale Types
T510F Assign Pay Scale > Time Unit, Currency
T510G Pay Scale Areas
T510H Payroll Constants with Regard to Time Unit
T510I Standard Working Hours
T512R Cumulation Wage Types in Forms
T512S Texts for Cumulation Wage Types in Forms
T510J Constant Valuations
T510L Levels
T510M Valuation of pay scale groups acc. to hiring date
T510N Pay Scales for Annual Salaries (NA)
T510S Time Wage Type Selection Rule
T510U Pay Scale Groups
T510Y Special Rules for Wage Type Generation
T511 Wage Types
T512T Wage Type Texts
T512W Wage Type Valuation
T512Z Permissibility of Wage Types per Infotype
T513 Jobs
T514S Table Name Texts
T514T Field Name Texts
T51D2 Wage Type Classes
T52C0 Payroll Schemas
T52C1 Payroll Schemas
T52C2 Texts for Personnel Calculation Schemas
T52C3 Texts for Personnel Calculation Schemas
T52C5 Personnel Calculation Rules

T52CC Schema Directory
T51D3 Reduction Rules
T51D4 Cumulation Rules
T527X Organizational Units
T528B Positions – Work Centers
T528C Wage Type Catalog
T528T Position Texts
T529A Personnel Event
T529F Fast Data Entry for Events
T529T Personnel Event Texts
T52BT Texts For HR Objects
T52CD Schema Directory
T52CE Directory of Personnel Calculation Rules
T52CT Text Elements
T52CX Cross References via Generated Schemas
T52D1 Valid Processing Classes
T52D2 Valid Values for Processing Classes
T52D3 Valid Evaluation Classes
T52D4 Permitted Values for Evaluation Classes
T52D5 Wage Type Groups
T52D6 Wage Type Group Texts
T52D7 Assign Wage Types to Wage Type Groups
T52D8 Valid Processing Classes – Texts
T52D9 Valid Values for Processing Classes – Texts
T530 Reasons for Events
T549M Monthly Assignment: Payroll Period
T549N Period Modifiers
T549O Text for date modifier
T549P Valid Time Units for Payroll Accounting
T549Q Payroll Periods
T549R Period Parameters
T549S Payroll date types
T530E Reasons for Changes
T530F Reasons for Changes
T530L Wage Types for Special Payments
T530T Event Reason Texts
T531 Deadline Types
T531S Deadline Type Texts
T533 Leave Types
T533T Leave Type Texts
T539A Default Wage Types for Basic Pay
T539J Base Wage Type Valuation

T539R Events for Standard Wage Maintenance
T539S Wage Types for Standard Wage Maintenance
T548 Date Types
T548S Date Conversion
T548T Date Types
T548Y Date Types
T549A Payroll Areas
T549B Company Features
T549C Decision Trees for Features (Customers)
T549D Feature Directory
T549L Date modifiers
T549T Payroll Areas
T549M Monthly Assignment: Payroll Period
T549N Period Modifiers
T549O Text for date modifier
T549P Valid Time Units for Payroll Accounting
T549Q Payroll Periods
T549R Period Parameters
T549S Payroll date types
T549T Payroll Areas
T554S Absence and Attendance Types
T554T Absence and Attendance Texts
T554V Defaults for Absence Types
T554Y Time Constraints in HR TIME
T555A Time Types
T555B Time Type Designations
T559A Working Weeks
T559B Name of Working Week
T572F Event Texts
T572G Allowed Values for Events
T572H Event Value Texts
T582A Infotypes
T582B Infotypes Which Are Created Automatically
T582S Infotype Texts
T582V Assignment of Infotypes to Views
T582W Assigns Infotype View to Primary Infotype
T582Z Control Table for PA Time Management
T584A Checking Procedures – Infotype Assignment
T588A Transaction Codes
T588B Infotype Menus
T588C Infotype Menus/Info Groups
T588D Infogroups for Events
T588J Screen Header Definition
T588M Infotype Screen Control
T588N Screen Modification for Account Assignment Block
T588O Screen Modification for Assignment Data
T588Q Screen types for fast entry
T588R Selection Reports for Fast Data Entry
T588S Screen Types for Fast Entry
T588T Menu and Infogroup Designations
T588V Business object type
T588W Event types for infotype operations
T588X Cust. composite definition of event types for IT operations
T588Z Dynamic Events
T591A Subtype Characteristics
T591B Time Constraints for Wage Types
T591S Subtype Texts
T596F HR Subroutines
T596G Cumulation wage types
T596H _Cumulation wage type texts
T596I Calculation rule for cumulation wage types
T596U Conversion Table
T599B Report Classes
T599C Report Classes
T599D Report Categories
T599F Report Classes – Select Options
T777A Building Addresses
T777T Infotypes
T777Z Infotype Time Constraints
T778T Infotypes
T778U Subtypes

Error Messages tables
T100 Messages
T100A Message IDs for T100
T100C Control of messages by the user
T100O Assignment of message to object
T100S Configurable system messages
T100T Table T100A text
T100V Assignment of messages to tables/views
T100W Assign Messages to Workflow
T100X Error Messages: Supplements

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What is Purchase order in SAP? | SAP online training

This post provides general information about purchase order and how they are processed with Material Management (MM) Purchasing. The purchase order defines a formal request or instruction from purchasing organization to vendor or a plant to supply certain quantity of goods or services by certain point in time.

What is a purchase order?

The purchase order represents the formal and final approval of a purchasing transaction with the vendor. It identifies the below

• The vendor
• The material or service to be ordered
• The quantity
• The price
• The delivery date and terms of delivery
• The terms of payment

In addition, the purchase order determines whether the ordered material is placed in stock or consumed directly upon goods receipt. Purchase orders can be subject to a release procedure.

Structure of a purchase order

As in the case of other purchasing documents, the PO consist of:

1. Header, It containing information specific to the entire PO. For example, the terms of payment and the delivery terms are in the header.

2. Tems, It containing information specific to the material or service.
For example:

• Material number or short description (“short text”)
• Quantity
• Price

For each item, you can enter additional information such as time-spot schedule lines and item-specific texts. The PO history menu enables you to monitor deliveries and invoices received with regard to the item.

Item category

The item category defines whether a purchase order item:

• Requires a material number
• Requires an account assignment
• Will be placed in stock
• Requires a goods receipt (GR) and/or an invoice receipt (IR)

The following are the item categories defined in the standard system:

Standard items categories in POs

Standard, It provides for normal goods and invoice receipt

Consignment

• Material number required- no account assignments
• Kept in stock
• GR necessary
• IR not necessary

Subcontracting

• GR allowed
• IR necessary

Stock transfer

• Material number required
• GR necessary
• No IR

Third-party

• Account assignment required
• GR and IR allowed

Standard

 
Items with the item category “Standard” are orders for goods that are to be procured externally. In this case, goods and invoice receipt are possible.

Consignment

 
Items with the item category “Consignment” are items relating to goods procured on a consignment basis. Account assignments cannot be made for material ordered on consignment. Consignment stocks are managed separately and are not valuated.

Subcontracting

Order items with the item category Subcontracting are used to order finished assemblies from a subcontractor, for example. Any components the subcontractor requires to assemble the final product are entered as “material to be provided.”

Stock transport order (inter-plant stock transfer order)

The stock transport order is a mechanism facilitating the transfer of stock from one plant to another (that is, a transfer involving transport over a longer distance). The stock transport order is one of the special order types in Purchasing.

Third-party order

Part of a triangular business deal. A third-party order is an order placed with a vendor instructing the latter to supply goods to or perform a service for a third party (for example,
one of your customers). The third-party order is specified in the item category field of a requisition or purchase order. The third-party order is one of the special order types in Purchasing.

Item category and account assignment

The item category requires an account assignment for materials that are consumed directly (that is, materials that are not taken into stock). In the case of stock material, an account assignment is possible, but not mandatory.

PO texts

You can enter text in a purchase order directly or change texts that are suggested by the system. There are two kinds of text:

• Header text – applies to the entire document
• Item text – applies to an individual item

You define which texts appear in which order on printouts in Customizing. You can enter several header or item texts, which you can identify by your own codes

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ASAP Methodology Implementation Steps

The SAP ASAP Methodology (Accelerated SAP) provides the roadmap for optimizing and continuous implementation of SAP systems in the real time business processes. 

The ASAP roadmap brings in to multiple number of tools, information and accelerators to assist team members with the implementation of SAP R/3. The various phases of ASAP Methodology which consist below

Project Preparation

This phase to discuss the requirements of the project initial aspects.

• Identification of team members
• Developing a high level plan
• Estimation of cost of the project
• Duration of the project

Business Blue print Phase

• To understand the business goals of the company.
• To determine the business requirements needed to support the business goals.
• Formulating the TO BE processes after thorough review of questionnaires sent to the key users/core users.

Realization Phase

• Mainly to implement all the business and process requirements based on the business blue print.
• The system is customized step by step in two work packages: Baseline and Final configuration.
• The mapping done on how the system should get configured and tested

Final Preparation Phase

• Main purpose is to complete testing, end user training, system management and cut over ativities.
• Critical open issues should be resolved here.
• Upon successful completion of this phase the business transactions are ready to run in the SAP system.

Go live and Support Phase

• Transition from a project oriented, pre- productive environment to a successful and live productive operation.
• Post implementation support.
• System monitoring and fine-tuning.

The ASAP Methodology will cover the entire project life cycle right from the initial preparation and evaluation via delivery and till the end of post project management. The other side ASAP is concerned with the process and value of the application life cycle.

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Scheduling agreement in SAP MM

The scheduling agreement has similarities with a quantity contract: it states the target quantity of material to be ordered from a vendor over a period of time, and the price. For each material to be procured, you create a scheduling agreement item. For each scheduling agreement item in SAP, you subsequently set up a rolling delivery schedule by creating a number of individual schedule lines.

In vendor scheduling, vendors receive a scheduling agreement release (comprising a header and a rolling delivery schedule made up of individual schedule lines) rather than discrete purchase or release orders. (Note that in addition to standing for a method of ordering materials or services – as here, in the SAP System, the terms “release” and “releasing” may also be
applied to an internal purchasing document approval or clearance process.).

The delivery schedule specifies the quantities to be delivered, the delivery dates, and possibly also delivery time-spots, and may contain data on previous goods receipts. A delivery schedule may contain firm, semi-firm, or planned (forecast) delivery dates.

If you are using scheduling agreements, you can work with or without release documentation. Working with such type of documentation affords the advantage that you can display the valid scheduling agreement releases transmitted to a vendor over a certain period whenever necessary. If you work with scheduling agreements without release documentation, the current schedule is automatically outputted via the message (output) control program.

If you work with scheduling agreements with release documentation, internally you can make as many changes to the individual schedule lines as you wish. As soon as the schedule lines for a certain item have been finalized and the schedule is ready to be transmitted to the vendor, you
generate a scheduling agreement release. This triggers the transmission of the relevant data to the vendor. The information is recorded in the system, allowing you to verify at any time exactly when you sent which data to which vendor.

The key advantages of Scheduling Agreements

Procurement via scheduling agreements has several significant
advantages:

• The streamlines paperwork, shortens processing times –one delivery schedule can replace many purchase ordersor contract release orders.
• To promotes low inventories – you can specify the exact time to deliver, allowing for minimum stock levels and just in-time (JIT) deliveries.
• To shorter vendor lead times – because the delivery schedule extends into the future, the vendor has less need to backlog orders, thus reducing the lead time for a delivery.
• The automatic generation of delivery schedule lines via the MRP system (a precondition for this is that Purchasing must assign a scheduling agreement as a unique source of supply using the quota arrangement and source list mechanisms)

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What is Condition Technique in SAP?

To discuss the Condition technique in sap,

The condition technique is used to define pricing across applications. For example, it is used in the SAP SD (Sales & Distribution) module as well as in the SAP MM module. The goal of the condition technique is to calculate the effective price in a purchase order. Master conditions are simply conditions defined with the condition technique. While this section is not essential to your understanding of master conditions in purchase orders, it does provide useful
background information on the mechanism for determining pricing in Purchasing.

The Basic elements of the condition technique, The condition technique consists of four main elements:

• Condition types
• Condition tables
• Access sequences
• Calculation schema (pricing procedure)

These concepts are important for understanding how the system determines pricing in master conditions.

Condition type is a representation of a pricing element. Condition types exist for discounts, surcharges, and freight costs, for example. You use condition types to enter pricing in purchasing documents. You learned how to specify condition types when entering pricing in quotations and purchase orders, for example.

Condition table defines the combination of fields (the key) that identifies an individual condition record. The system stores the condition data you enter in the form of a condition record. For example, when you enter a vendor’s pricing in a purchasing info record with reference to a material master record, the key of the condition table includes the vendor number and the material number.

The actual pricing information – such as the gross price and any discounts – is stored in a condition record under this key.

Access sequence is a search strategy that the system uses to find condition records for a particular condition type. The access sequence determines the sequence in which the system searches condition records for a valid price.

Price calculation schema (pricing procedure), The calculation schema (also known as a pricing procedure, but the same mechanism can also be used to calculate tax amounts, periodend rebates, or costs, for example) is a group of condition types, defined in a particular sequence. It enables the system to determine that a particular set of condition types, in a specified sequence, apply in given circumstances. For example, the calculation schema determines which condition types apply to the gross price. The calculation schema also determines that the condition types for discounts are calculated in the effective price automatically.

With SAP MM Customizing, you can define price calculation schemas for specific vendors and/or purchasing organizations. The system searches for pricing data in condition records. The criteria it uses in the search depend on the keys in the condition table. The sequence of the search depends on the access sequence specified for the condition type. Which condition types are used in the search are defined in the calculation schema.

For example, suppose that you have just created an info record that specifies a 10% discount from the gross price. This condition is then stored in a condition record under the vendor and material number. When the material is ordered from the vendor in a PO, the system searches for the discount using the access sequence. The calculation schema ensures that the 10% discount is deducted from the gross price instead of the net price during the price calculation process.

The different ways of maintaining master conditions, you can maintain conditions in the following ways:

Prices, As this method you can list or maintain the conditions that determine the net price in a single info record or contract. You can enter the going market price for a material.

Discounts and surcharges, As this method, you can enter discounts or surcharges that apply to all info records or contracts meeting your pricing criteria.

Other condition types,If your company has defined its own condition types, access sequences, and condition tables, you can define master conditions that use these pricing elements.

Price changes, You can change pricing by a fixed amount globally.

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Material Ledger Closing in SAP Quick review

Movements for a material that is valuated with the material ledger are always carried out using the valuation price. If the price control indicator in the material master record is S, movements for the material are carried out with the standard price. If the price control indicator in the material master record is V, movements for the material are carried
out with the periodic unit price.

When postings such as invoice receipts occur, the prices can differ from the valuation price. These differences are collected and totaled by the material ledger and taken into account during material ledger closing.

The Before Material Ledger Closing:
The differences between the valuation price that occur when postings are made are collected the following categories:

GR/IR (goods receipt/invoice receipt):
Differences between actual values and the valuation price that may occur due to invoice receipts are collected here. Differences can occur between a goods receipt and an invoice receipt, because the invoice price is unknown at the time of goods receipt. The values from invoice receipts are posted to a GR/IR clearing account and the offsetting entry is made in the vendor account.

Value Variances:
Differences between actual values and the valuation price that can occur due the to the following are collected as,

1. The Goods receipts for the production order
2. Transfer postings
3. Goods issues
4. The Initial entries of inventory data with a specified amount
5. Deliveries free of charge
6. Inward movements from consignment inventory to the company’s own stock
7. Purchase order-related goods receipts

Values from goods receipts are posted to a GR/IR clearing account; the offsetting entry takes place in the material inventory account. If the the order price differs from the valuation price in the goods receipt, the system posts an offsetting entry to the material stock account and the price difference account (transaction key PRD). Such differences are totaled in the material ledger and indicated as to be closed.

With goods receipts that are not based on a purchase order item, price difference are posted directly to the price difference accounts.

Posting to a Prior Period:
Variances are collected here when a posting is made to the previous period using a valuation price other than the one in the current period.

At Material Ledger Closing:
At material ledger closing, the system takes the differences arising in the above categories into account, depending on the price control of the material. If you carry out material ledger closing for a single material (without saving), you can display which postings the material ledger would make and with what amounts if you were to save the material ledger closing at
this time.

Materials with S price control (standard price):
The system calculates for each material, the balance on the GR/IR clearing account and posts this amount to a price difference account (transaction key PRY). Differences that were collected in the Value variances category were posted to various price difference accounts before material ledger closing. These postings are not changed. 

Differences that were collected in the Posting to a prior period category were posted to the revaluation account before material ledger closing. These postings are not changed. The new periodic unit price is calculated for statistical information.

Materials with V price control (periodic unit price):
The system calculates the balance on the GR/IR clearing account and posts this amount to the material stock account in proportion to the current inventory quantity. The portion of the balances with which the material inventory cannot be debited are posted to a price difference account (transaction key PRY).

Differences that were collected in the Value variances category were posted to various price difference accounts before material ledger closing. These postings are offset in total against a separate price difference account at material ledger closing (transaction key PRY).

The system calculates the balance and posts this amount to the material stock account in proportion to the current inventory quantity. The portion of the balances with which the material inventory cannot be debited are posted to a price difference account (transaction key PRY).

Differences that were collected in the Posting to a prior period category were posted to the revaluation account before material ledger closing. The system calculates the balance on this account and posts this amount to the material stock account in proportion to the current inventory quantity.

The portion of the balances with which the material inventory cannot be debited are posted to a price difference account (transaction key PRY). The postings to the material stock account result in a new periodic unit price for the material, found by dividing the inventory value by the inventory quantity.

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SAP Vendor Evaluation System

What is SAP Vendor Evaluation System and how Integrated?

The vendor Evaluation component has been completely integrated into SAP MM Purchasing. The information such as delivery dates, prices, and quantities can be taken from purchase orders. The SAP Vendor Evaluation uses the various data from Quality Management, and this will be shows the result of incoming inspections or other way the quality audits of the system. It also accesses basic data in Materials
Management, which as goods receipt data from Inventory Management, and data from the Logistics Information System (LIS).

What is Vendor Evaluation?

The Vendor Evaluation in sap System which supports you in the optimization of your procurement processes in the case of both materials and services.

Procurement of Materials

The system helps you select sources of supply and facilitates the continual monitoring of existing supply relationships. It provides you with accurate information on prices, and terms of payment and delivery. By evaluating vendors, you can improve your enterprise’s competitiveness. You can quickly determine
and resolve any procurement problems that may arise on the basis of detailed information and in collaboration with the relevant vendors

Procurement of Services

You can check the reliability of the vendors from which you procure services on a plant by plant basis. You can determine whether the vendors perform the services within the specified timeframes and appraise the quality of the work carried out.

Scores and Criteria

The SAP Standard System offers you a scoring range from 1 to 100 points, which is used to measure the performance of your vendors on the basis of five main criteria. You can determine and compare the performance of your vendors by reference to their overall scores. The main criteria available in the standard system are:

1), Price
2), Quality
3),Delivery
4), General service/support

These four main criteria serve as a basis for the evaluation of vendors from whom you procure materials.

1), External service

This main criterion serves as a basis for the evaluation of vendors you employ as external service providers.

You can also define other or further main criteria, as required. You can assign different weights to the individual criteria. The vendor’s overall score is computed taking into account the weighted scores awarded for each of the main criteria. The Vendor Evaluation System ensures that evaluation of vendors
is objective, since all vendors are assessed according to uniform criteria and the scores are computed automatically.

In this way, subjective impressions and judgments can be largely avoided. To create a detailed evaluation, each main criterion can be divided into several subcriteria. The standard system provides you with certain subcriteria which suffice as a basis for evaluation, but you can also define your own additional subcriteria.

The scores for the subcriteria are calculated in three different ways.

Automatic, The scores are calculated by the system on the basis of existing data.

Semi-automatic, You enter individual scores for important materials, or for the quality and timeliness of a service performed, yourself. The system then calculates the higherlevel score from these.

Manual,You enter a blanket score for a subcriterion per vendor and you can decide yourself which of these methods you want to use.

Analyses

The results of sap vendor evaluation are displayed in the form of analyses. For example, you can generate ranking lists of the best vendors according to overall score or ranking lists for
specific materials. Changes to evaluations are recorded in logs, and you have the option of printing out evaluation sheets.

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SAP Tutorials

What is Master Conditions in SAP?

Master conditions in SAP are conditions that determine the effective price in the purchase order. They serve as a central repository of pricing for purchase orders. They are automatically included in the price calculation in the purchase order if the PO references a contract or an info record, or if it meets certain criteria defined in the extended conditions.

There are three types of master conditions in SAP,

Conditions in contracts – Conditions in a contract apply to all release orders issued against the contract.

Conditions in info records – Conditions in the info record apply to orders that specify the material and vendor contained in the info record.

Extended conditions – These are a flexible way of setting vendor pricing. Extended conditions are master conditions that are included in the price calculation in a purchase order only if the PO meets certain criteria. One way to use extended conditions would be to define a 10% discount on all orders placed with a specific vendor that are created by a certain purchasing organization. In this case, the vendor number and purchasing organization are the two criteria a PO must meet before the price in the PO can be calculated.

Extended conditions are more flexible than master conditions in info records or contracts because you can define which criteria they must meet before they are applied to a purchase order.
     
The documentation on outline agreements and purchasing info records shows how the conditions specified in outline agreements and purchasing info records, respectively,
influence the calculation of the effective price in the purchase order.

The next post will learn how to specify conditions that apply to the pricing of all orders for any material with a vendor, not only for a specific material or material group as is the case with outline agreements and info records.


What is Condition Technique in SAP?

To discuss the Condition technique in sap, The condition technique is used to define pricing across applications. For example, it is used in the SAP SD (Sales & Distribution) module as well as in the SAP MM module. The goal of the condition technique is to calculate the effective price in a purchase order. Master conditions are simply conditions defined with the condition technique. While this section is not essential to your understanding of master conditions in purchase orders, it does provide useful background information on the mechanism for determining pricing in Purchasing.

The Basic elements of the condition technique,The condition technique consists of four main elements:

• Condition types
• Condition tables
• Access sequences
• Calculation schema (pricing procedure)

These concepts are important for understanding how the system determines pricing in master conditions.

Condition type is a representation of a pricing element. Condition types exist for discounts, surcharges, and freight costs, for example. You use condition types to enter pricing in purchasing documents. You learned how to specify condition types when entering pricing in quotations and purchase orders, for example.

Condition table defines the combination of fields (the key) that identifies an individual condition record. The system stores the condition data you enter in the form of a condition record. For example, when you enter a vendor’s pricing in a purchasing info record with reference to a material master record, the key of the condition table includes the vendor number and the material number.

The actual pricing information – such as the gross price and any discounts – is stored in a condition record under this key.

Access sequence is a search strategy that the system uses to find condition records for a particular condition type. The access sequence determines the sequence in which the system searches condition records for a valid price.

Price calculation schema (pricing procedure), The calculation schema (also known as a pricing procedure, but the same mechanism can also be used to calculate tax amounts, periodend rebates, or costs, for example) is a group of condition types, defined in a particular sequence. It enables the system to determine that a particular set of condition types, in a specified sequence, apply in given circumstances. For example, the  calculation schema  determines Which condition
types apply to the gross price. The calculation schema also determines that the condition types for discounts are calculated in the effective price automatically.

With SAP MM Customizing, you can define price calculation schemas for specific vendors and/or purchasing organizations. The system searches for pricing data in condition records. The criteria it uses in the search depend on the keys in the condition table. The sequence of the search depends on the access sequence specified for the condition type. Which condition types are used in the search are defined in the calculation schema.

For example, suppose that you have just created an info record that specifies a 10% discount from the gross price. This

condition is then stored in a condition record under the vendor and material number. When the material is ordered from the vendor in a PO, the system searches for the discount using the access sequence. The calculation schema ensures that the 10% discount is deducted from the gross price instead of the net price during the price calculation process.
     
The different ways of maintaining master conditions, you can maintain conditions in the following ways:

Prices, As this method you can list or maintain the conditions that determine the net price in a single info record or contract. You can enter the going market price for a material.

Discounts and surcharges, As this method, you can enter discounts or surcharges that apply to all info records or contracts meeting your pricing criteria.

Other condition types, If your company has defined its own condition types, access sequences, and condition tables, you can define master conditions that use these pricing elements.

Price changes, You can change pricing by a fixed amount globally.

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