SCM520
Purchasing
mySAP ERP Procurement and Logistics Execution
Date
Training Center
Instructors
Education Website
Participant Handbook
Course Version: 2006 Q2
Course Duration: 5 Day(s)
Material Number: 50078536
An SAP course - use it to learn, reference it for work
Copyright
Copyright © 2006 SAP AG. All rights reserved.
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About This Handbook
This handbook is intended to complement the instructor-led presentation of this
course, and serve as a source of reference. It is not suitable for self-study.
Typographic Conventions
American English is the standard used in this handbook. The following typographic
conventions are also used.
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2006/Q2 © 2006 SAP AG. All rights reserved. iii
About This Handbook SCM520
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iv © 2006 SAP AG. All rights reserved. 2006/Q2
Contents
Course Overview ............................................................................ viii
Course Goals................................................................................ viii
Course Objectives .......................................................................... viii
Unit 1: Master Data for Purchasing Management .......................................1
Purchasing Material Master Record........................................................ 2
Vendor Master Record ..................................................................... 17
Unit 2: Source of Supply.................................................................... 33
Purchasing Information Record ........................................................... 35
Contract ...................................................................................... 58
Scheduling Agreement..................................................................... 81
Unit 3: Source Determination.............................................................121
Source List.................................................................................. 123
Quota Arrangement ....................................................................... 148
Further Aspects of Source Determination .............................................. 172
Unit 4: Optimized Purchasing Management...........................................201
Processing Non-Assigned Purchase Requisitions .................................... 202
Processing Assigned Purchase Requisitions .......................................... 210
Purchase Order Monitoring............................................................... 223
Unit 5: Release Procedure.................................................................241
Release Procedure ........................................................................ 242
Unit 6: Specific Procurement Processes ..............................................277
Invoicing Plan .............................................................................. 278
Blanket Purchase Order .................................................................. 295
Subcontracting ............................................................................. 300
Manufacturer Part Number (MPN) Management (Optional) ......................... 314
Unit 7: Vendor Evaluation .................................................................335
Vendor Evaluation ......................................................................... 336
2006/Q2 © 2006 SAP AG. All rights reserved. v
Contents SCM520
Unit 8: Selected Customizing Topics ...................................................379
Vendor Master Record: Customizing ................................................... 381
Document Types in Purchasing.......................................................... 407
Version Management in Purchasing .................................................... 429
Special Aspects of Customizing ......................................................... 434
Unit 9: External Procurement with mySAP ERP and mySAP Business Suite.449
External Procurement with mySAP ERP ............................................... 450
External Procurement with mySAP SRM (Component of mySAP Business
Suite) .................................................................................... 462
External Procurement with mySAP SCM ............................................... 469
Appendix 1: List of Menu Paths Used ...............................................483
Index ............................................................................................493
vi © 2006 SAP AG. All rights reserved. 2006/Q2
Course Overview
The first unit gives you a brief overview of the master data records that are relevant
to purchasing. The two most important master data records are the material master
and the vendor master.
In the second unit, you learn how to define vendor-specific material prices in the
system. These data records are referred to as sources of supply. Possible sources of
supply are purchasing information records and outline purchase agreements (contracts
and scheduling agreements).
The third unit deals with the possible ways in which requirements of goods and
materials can be matched up with suitable sources of supply. The automatic source
determination process can be controlled with the aid of a source list and/or a quota
arrangement.
In the fourth unit, you will become acquainted with the various options available for
the efficient conversion of requisitions into purchase orders.
The fifth unit deals with the release procedure for purchase requisitions and external
purchasing documents (purchase orders, outline purchase agreements, and requests
for quotation). This electronic document release procedure obviates the need for a
cumbersome manual approval procedure using handwritten signatures.
The sixth unit describes how transactions involving invoicing plans, blanket purchase
orders, subcontracting, and manufacturer part number (MPN) material procurement
can be handled in the SAP system.
The seventh unit gives an overview of vendor evaluation. In particular, you will
learn about scoring levels, various types of evaluation criteria, and ways of carrying
out vendor evaluation.
The eighth unit deals with selected Customizing topics of interest to those involved
in procurement. This unit focuses in particular on the settings for the vendor master
record and purchasing document types.
The ninth unit provides a brief insight into external procurement with mySAP ERP,
mySAP SRM and mySAP SCM. A few selected processes are also introduced and the
relationships between the individual components is explained.
2006/Q2 © 2006 SAP AG. All rights reserved. vii
Course Overview SCM520
Target Audience
This course is intended for the following audiences:
• Project team members responsible for purchasing
• Consultants
Course Prerequisites
Required Knowledge
• SCM500 (Processes in Procurement) or suitable SAP knowledge in the area
of procurement
Course Goals
This course will prepare you to:
• List the different optimization options for Purchasing and their prerequisites
• Describe additional functions in Purchasing
• Illustrate knowledge of Customizing settings for Purchasing
Course Objectives
After completing this course, you will be able to:
• Describe the default values and control values found in material master records
and vendor master records
• Create and manage different types of supply sources
• Use source lists and quota arrangement for controlling automatic supply source
determination
• Execute automatic supply source determination
• Convert purchase requisitions into purchase orders efficiently
• Use procurement processes specific to Purchasing
• Describe the function and process involved in the release method for purchase
requisitions and purchasing documents
• Use and describe the vendor evaluation functions
• Describe the required Customizing settings for vendor master records and for
purchasing documents
viii © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Course Overview
SAP Software Component Information
The information in this course pertains to the following SAP Software Components
and releases:
2006/Q2 © 2006 SAP AG. All rights reserved. ix
Course Overview SCM520
x © 2006 SAP AG. All rights reserved. 2006/Q2
Unit 1
Master Data for Purchasing
Management
Unit Overview
This unit gives you a brief overview of the master data records that are relevant to
purchasing. The two most important master data records are the material master
and the vendor master.
Unit Objectives
After completing this unit, you will be able to:
• Describe how the default values that material master records contain simplify
the purchasing process
• Describe some of the important control parameters for the purchasing process
that are stored in material master records
• Describe how the material type defines and controls how materials are used
• Describe how the default values that vendor master records contain simplify
the purchasing process
• Describe some of the important control parameters for the purchasing process
that are stored in vendor master records
• Create different data for specific plants or vendor subranges in the vendor
master record
Unit Contents
Lesson: Purchasing Material Master Record....................................... 2
Exercise 1: Purchasing Material Master Record .............................. 9
Lesson: Vendor Master Record .................................................... 17
Exercise 2: Vendor Master Record............................................ 25
2006/Q2 © 2006 SAP AG. All rights reserved. 1
Unit 1: Master Data for Purchasing Management SCM520
Lesson: Purchasing Material Master Record
Lesson Overview
This lesson serves as a short refresher with regard to the most important aspects of
using and maintaining material master records in the SAP system. This unit primarily
deals with two key topics: special aspects of the procurement of consumable materials,
and the question of when the existence of a material master record is advantageous
or mandatory for purchasing.
Lesson Objectives
After completing this lesson, you will be able to:
• Describe how the default values that material master records contain simplify
the purchasing process
• Describe some of the important control parameters for the purchasing process
that are stored in material master records
• Describe how the material type defines and controls how materials are used
Business Example
In order to facilitate the purchasing process and be able to utilize the optimization
functions for purchasing, your enterprise has decided to create material master records
for materials that are needed repeatedly. This also applies to materials that you cannot
or do not wish to keep in stock.
Use of the Material Master Record
The material master record contains descriptions of all articles and parts that an
enterprise procures, manufactures, and stores. The material master record is the
central repository of material-specific information (such as figures on existing stocks
and material valuation). Integrating all data on a material in a single master record
eliminates the problem of data redundancy and makes it possible for the stored data to
be used by both purchasing and other areas, such as inventory management, material
requirements planning (MRP), and invoice verification.
2 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Purchasing Material Master Record
Figure 1: Material Master Record
The data stored in the material master record is sorted into individual views reflecting
the various user departments. In the following, the different views of a material master
record are discussed and illustrated by examples.
Basic data
General information (for example, material short text, base unit of measure,
weight and/or volume)
Sales
Information on sales orders and pricing (for example, sales price, minimum
order quantity, name of responsible sales department)
Purchasing
Data made available for a material by purchasing (for example, the responsible
purchasing group, over- and underdelivery tolerances, purchase order unit and
control indicators)
Materials planning
Information for material requirements planning (MRP) (for example, safety
stock, planned delivery time and MRP type for a material)
2006/Q2 © 2006 SAP AG. All rights reserved. 3
Unit 1: Master Data for Purchasing Management SCM520
Accounting
Information relevant to valuation and costing (for example, price control,
previous and future price, current valuation price)
Storage
Information relating to the warehousing and storage of a material (for example,
unit of issue, storage conditions, packaging dimensions)
Forecasting
Information for predicting material requirements (for example, how the material
is procured, forecasting period, and past consumption/usage)
Create/change/display material master record:
SAP Menu → Logistics → Materials Management → Material Master → Material
→ Create / Change / Display
Figure 2: Purchasing Data in Material Master Record
4 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Purchasing Material Master Record
The data on a material is kept at different organizational levels. From the Purchasing
viewpoint, a material master record has the organizational levels client and plant.
• Client
This level contains the data applicable to all individual group companies, all
plants, and all warehouses/stores belonging to an enterprise (corporate group).
Examples of material data that is valid client-wide are the material group, the
short text description of a material, the storage conditions (temperature range,
whether the material is explosive or perishable, and so on), and the purchase
order text.
• Plant
This level contains the data relevant to the individual branches, plants, or
departments within a certain company. The data specific to Purchasing is usually
stored at this level. Examples of this data are the purchasing group, the purchase
order unit, and various control indicators (such as automatic purchase order
source list requirement, or quota arrangement usage).
This data structure facilitates the organization of material-related information within
the whole enterprise. It prevents redundancy in the storage of material data if the same
material is used in more than one plant or stored at more than one storage location.
For the purposes of external procurement, the existence of a material master record
is not mandatory. However, materials without a master record can only be procured
as consumables (materials for direct consumption). Consumable materials can be
assigned to cost centers, sales orders, or projects, for example.
If you wish to benefit from the advantages of the material master record for typical
consumable materials (that is, for materials that are never to be ordered for stock)
too, you should use the material type NLAG. In the standard system, material type
NLAG is set up in such a way that no accounting view can be created and thus no
automatic stock account determination process takes place when a purchase order
(PO) is created. As a result, the PO item has to be assigned to consumption accounts.
If a consumable material is only to be managed on a quantity basis in the stock, you
can make use of the UNBW material type (non-valuated material). Again, in this case
it is not possible to create accounting data for this material type.
Because it is necessary to continually update the quantities and values of materials
that are kept in stock, the existence of a material master record with an accounting
view is mandatory for the procurement of stock materials.
2006/Q2 © 2006 SAP AG. All rights reserved. 5
Unit 1: Master Data for Purchasing Management SCM520
Customizing: Material Types
Figure 3: Material Type: Control Factors Relevant to Purchasing
When you create a material master record, you must assign a material type (for
example, raw material or semifinished product) to the material. In the standard
system, the material type ROH (raw material) specifies that all materials of this type
are procured externally. A material of the type NLAG, on the other hand, can either be
procured externally or produced in-house.
In addition, the material type determines the selection of the accounts to which
postings can be made when a material moves into or out of the warehouse or stores.
Furthermore, the material type determines the number range of the material number
and the type of number assignment (that is, whether the number is assigned internally
by the system or externally by the user).
6 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Purchasing Material Master Record
Generally, the material type determines and/or controls:
• The business application for which the material is used
• The type of number assignment
• Which data screens appear in which order
• Which user department data can or must be entered
• The procurement type of the material (whether the material is produced in-house
or procured externally, or whether both are possible)
• The updating of quantities and values in the relevant valuation areas
Define attributes of material types:
SAP Customizing Implementation Guide → Logistics - General → Material Master
→ Basic Settings → Material Types → Define Attributes of Material Types
2006/Q2 © 2006 SAP AG. All rights reserved. 7
Unit 1: Master Data for Purchasing Management SCM520
Data Sheet
You will use and/or create the following data in the exercises of this course:
Type of data Data in training system
Company code 1000 (IDES AG 1000)
Purchasing organization 1000 (IDES Deutschland)
Plants 1000 (Hamburg), 1100 (Berlin)
Storage location 0001 (material stores)
Purchasing group Z## (SCM520–##)
Materials PK-080, R-B1##,
R-T1##, R-T2##, R-T3##
Create: T-M520A##, T-M520B##,
T-M520C##, T-M520D##, T-M520E##,
T-M520F##,
Material group 001 (Metal processing), 003 (Bulbs),
008 (Packaging), 010 (Consumables),
SCM520 (Purchasing), ZT## (Office
supplies SCM520)
Vendors Create: T-K520A##, T-K520B##,
T-K520C##, T-K520D##, T-K520E##
GL account 400000
Cost center 1000
Currency EUR
8 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Purchasing Material Master Record
Exercise 1: Purchasing Material Master
Record
Exercise Objectives
After completing this exercise, you will be able to:
• Create and copy material master records
Business Example
You have been asked to create master records for three new materials. You have the
relevant data from the purchasing and accounting departments.
Task 1:
Create material master records.
1. You buy packing boxes for production in your plants 1000 and 1100, for which
you require quantity- and value-based inventory management.
Create a new master record for this raw material with the following data:
(## always stands for your group number.)
Material number T-M520A##
Industry sector Mechanical engineering
Material type Raw material (ROH)
Views Basic data 1, Purchasing, Purchase
order text, Accounting 1
Plant 1000
Material description Packing boxes 300x200x100
Base unit of measure pc
Material group ZT##
Purchasing group Z##
Purchase order text Collapsible cardboard box, corrugated
cardboard CB 2.2
Continued on next page
2006/Q2 © 2006 SAP AG. All rights reserved. 9
Unit 1: Master Data for Purchasing Management SCM520
Valuation class 3000
Price control V
Moving price 1.80 EUR
2. Since you also need the new material in plant 1100, you create the material
master record for this plant by using the data from the views already created
for plant 1000 as a copying template.
3. For your plants 1000, 1100, and 1300, you need packing boxes with other
measurements.
Create a second material master record for these three plants by using master
record T-M520A## for the first plant as a template and changing the following
data:
Material number T-M520B##
Industry sector Mechanical engineering
Material type Raw material (ROH)
Views Basic data 1, Purchasing, Accounting
1
Material description Packing boxes 1500x800x600
Moving price 5 EUR
4. You also need regular supplies of photocopying paper for plant 1000.
Create a new master record for this material (which is to be treated as a non-stock
item) with the following data:
Material number T-M520C##
Industry sector Mechanical engineering
Material type Non-stock material (NLAG)
Views Basic data 1, Purchasing, Purchase
Order Text
Plant 1000
Material description Photocopying paper 5x500 sheet size
DINA4
Base unit of measure Cardboard box (KAR)
Continued on next page
10 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Purchasing Material Master Record
Material group ZT##
Purchasing group Z##
Purchase order text Copying paper, white, suitable for
laser printer
5. Make sure you have created all the materials in this task for the appropriate
plants.
Use the materials list for this.
Task 2:
Optional: Compare settings for material types.
1. Compare the settings for the material types raw material and semifinished
product in Customizing. What is the decisive difference between the two
material types from the procurement viewpoint?
2006/Q2 © 2006 SAP AG. All rights reserved. 11
Unit 1: Master Data for Purchasing Management SCM520
Solution 1: Purchasing Material Master
Record
Task 1:
Create material master records.
1. You buy packing boxes for production in your plants 1000 and 1100, for which
you require quantity- and value-based inventory management.
Create a new master record for this raw material with the following data:
(## always stands for your group number.)
Material number T-M520A##
Industry sector Mechanical engineering
Material type Raw material (ROH)
Views Basic data 1, Purchasing, Purchase
order text, Accounting 1
Plant 1000
Material description Packing boxes 300x200x100
Base unit of measure pc
Material group ZT##
Purchasing group Z##
Purchase order text Collapsible cardboard box, corrugated
cardboard CB 2.2
Valuation class 3000
Price control V
Moving price 1.80 EUR
a) SAP Menu → Logistics → Materials Management → Material Master →
Material → Create (Special) → Raw Material
or
SAP Menu → Logistics → Materials Management → Material Master →
Material → Create General → Immediately
Continued on next page
12 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Purchasing Material Master Record
2. Since you also need the new material in plant 1100, you create the material
master record for this plant by using the data from the views already created
for plant 1000 as a copying template.
a) SAP Menu → Logistics → Materials Management → Material Master →
Material → Create (Special) → Raw Material
Copy from material T-M520A##.
Hint: If the Create Views Selected indicator is set, all selected
views will be created without your having to invoke and confirm
every single data screen.
Caution: When you create a material using the referencing
technique (that is, using a template), plant 1000 must be specified
in the organizational data as a template so that not only the
client-wide data, but also the plant-specific data, is copied.
3. For your plants 1000, 1100, and 1300, you need packing boxes with other
measurements.
Create a second material master record for these three plants by using master
record T-M520A## for the first plant as a template and changing the following
data:
Material number T-M520B##
Industry sector Mechanical engineering
Material type Raw material (ROH)
Views Basic data 1, Purchasing, Accounting
1
Material description Packing boxes 1500x800x600
Moving price 5 EUR
a) SAP Menu → Logistics → Materials Management → Material Master →
Material → Create (Special) → Raw Material
Copy from material T-M520A## for plant 1000. Then copy the new
material master record for the other two plants by using the data created for
plant 1000 as a template.
Continued on next page
2006/Q2 © 2006 SAP AG. All rights reserved. 13
Unit 1: Master Data for Purchasing Management SCM520
4. You also need regular supplies of photocopying paper for plant 1000.
Create a new master record for this material (which is to be treated as a non-stock
item) with the following data:
Material number T-M520C##
Industry sector Mechanical engineering
Material type Non-stock material (NLAG)
Views Basic data 1, Purchasing, Purchase
Order Text
Plant 1000
Material description Photocopying paper 5x500 sheet size
DINA4
Base unit of measure Cardboard box (KAR)
Material group ZT##
Purchasing group Z##
Purchase order text Copying paper, white, suitable for
laser printer
a) SAP Menu → Logistics → Materials Management → Material Master →
Material → Create (Special) → Non-Stock Material
5. Make sure you have created all the materials in this task for the appropriate
plants.
Use the materials list for this.
a) SAP Menu → Logistics → Materials Management → Material Master
→ Other → Materials List
Make the selection on the initial screen after your user name.
Hint: Remove the Evaluated materials only indicator so that the
non-stock materials you have created are listed too.
Continued on next page
14 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Purchasing Material Master Record
Task 2:
Optional: Compare settings for material types.
1. Compare the settings for the material types raw material and semifinished
product in Customizing. What is the decisive difference between the two
material types from the procurement viewpoint?
a) SAP Menu → Tools → Customizing → IMG → Execute Project
Choose SAP Reference IMG.
SAP Customizing Implementation Guide → Logistics - General →
Material Master → Basic Settings → Material Types → Define Attributes
of Material Types
The material type semifinished product is defined in such a way that such
materials can be both procured externally and produced in-house. A raw
material, on the other hand, can only be procured externally.
2006/Q2 © 2006 SAP AG. All rights reserved. 15
Unit 1: Master Data for Purchasing Management SCM520
Lesson Summary
You should now be able to:
• Describe how the default values that material master records contain simplify
the purchasing process
• Describe some of the important control parameters for the purchasing process
that are stored in material master records
• Describe how the material type defines and controls how materials are used
Related Information
• Further information on possible material master record settings from the
materials management viewpoint is available in course SCM550 (Customizing
in Materials Management).
16 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Vendor Master Record
Lesson: Vendor Master Record
Lesson Overview
This lesson serves as a short refresher with regard to the most important aspects of
using and maintaining vendor master records in the SAP system. The possibility of
creating plant-dependent purchasing data in the vendor master record is also discussed.
Lesson Objectives
After completing this lesson, you will be able to:
• Describe how the default values that vendor master records contain simplify
the purchasing process
• Describe some of the important control parameters for the purchasing process
that are stored in vendor master records
• Create different data for specific plants or vendor subranges in the vendor
master record
Business Example
To simplify purchasing management and to benefit from the optimization functions
of Purchasing, you have decided to create vendor master records for vendors from
which you procure merchandise regularly.
Use of the Vendor Master Record
The vendor master database contains information on an enterprise's vendors. This
information is stored in individual vendor master records. In addition to the vendor's
name and address, a vendor master record contains data such as:
• The currency used for transactions with the vendor
• Terms of payment
• Names of important contact persons (sales staff)
Since, for accounting purposes, the vendor is simultaneously a creditor of the
enterprise, the vendor master record also contains accounting data, such as the
reconciliation (control) account from general ledger accounting.
2006/Q2 © 2006 SAP AG. All rights reserved. 17
Unit 1: Master Data for Purchasing Management SCM520
Figure 4: Data Levels of the Vendor Master Record
The vendor master record comprises the following three areas:
General data
This is data that applies equally to every company code and every purchasing
organization within your enterprise (for example, address, telephone numbers, or
language of communication with vendor, contact partner).
Company code data
This is data that is kept at company-code level (such as data on payment
transactions, or reconciliation account number).
Purchasing data
This is data that is important for purchasing and is kept for each purchasing
organization (for example, terms of delivery or control indicator).
18 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Vendor Master Record
Figure 5: Purchasing Data in Vendor Master Record
In the purchasing data of a vendor master record, you maintain the PO currency and
the applicable terms of payment (among other things). This data is pulled from the
vendor master record to serve as default values in POs, outline purchase agreements,
and purchasing info records.
The vendor master record also contains important control data. Various indicators
(including Automatic Purchase Order, GR-Based Invoice Verification, Auto ERS Del.,
and Acknowledgement Reqd) determine the use of further purchasing functions (such
as automatic generation of POs from requisitions or automatic GR settlement).
In addition to the purchasing data, you can maintain partner roles in the vendor master
record (these may also be referred to as partner functions). Partner roles are business
partners that take on certain functions in the procurement process for a vendor.
Suppose, for instance, that a different invoicing party is entered in the vendor master
record. When the invoice is posted with reference to a PO of the corresponding vendor
this invoicing party will be determined.
The existence of a vendor master record is a necessary prerequisite for the creation
of an external purchasing document (RFQ, PO, or outline purchase agreement). If
no vendor master record has yet been created for a business partner, you can make
2006/Q2 © 2006 SAP AG. All rights reserved. 19
Unit 1: Master Data for Purchasing Management SCM520
use of so-called one-time vendor master records when creating a purchase order or
an RFQ. Since a one-time vendor master record (or miscellaneous vendor master
record) is used for several vendors, it is not possible to store vendor-specific data in
such a record. When creating a one-time vendor master record, you must assign
a one-time account group. This account group causes the vendor-specific fields to
be suppressed. You must then enter this data manually when creating an external
purchasing document, such as a PO.
Vendor master records can be maintained either centrally or locally. Local master data
maintenance could mean that purchasing is responsible for the ongoing maintenance
of purchasing data, and that accounts payable takes responsibility for maintaining
the accounting data.
Create/change/display vendor master record:
SAP Menu → Logistics → Materials Management → Purchasing → Master Data →
Vendor → Central → Create / Change / Display
SAP Menu → Logistics → Materials Management → Purchasing → Master Data
→ Vendor → Purchasing → Create / Change / Display
In addition to the data that is valid for a purchasing organization, you can maintain
certain purchasing data or partner roles on a plant-specific or vendor-subrange-specific
basis (for example, terms of payment or Incoterms that differ from those applicable to
the purchasing organization as a whole).
20 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Vendor Master Record
Figure 6: Different Data in Vendor Master Record
It is not possible to create all purchasing data in the vendor master record as different
data. Certain data, such as the Subsequent Settlement indicator, can only be maintained
at the purchasing organization level. However, there is certain important data that can
only be created at plant level (for example, the default value for the release creation
profile in scheduling agreement processing with release documentation).
The data retention levels that are provided below the purchasing organization are
defined in Customizing for the account group.
Account Groups
2006/Q2 © 2006 SAP AG. All rights reserved. 21
Unit 1: Master Data for Purchasing Management SCM520
Figure 7: Account Groups
In general, the account group determines the commercial role of the business partner
vis-à-vis the enterprise (for example, whether the business partner acts in the capacity
of actual goods supplier, invoicing party, or forwarder/carrier). The further influences
the account group has on the master record are discussed in detail in Unit 8 (Selected
Topics in Customizing).
Partner Roles
The business partner can assume various roles vis-à-vis your enterprise. For example,
in the course of a procurement transaction, a business partner is first the ordering
address, then the goods supplier, then the invoicing party, and finally the payee.
A prerequisite for the use of partner roles (partner functions) is the existence of a
corresponding master record for the partner in question.
22 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Vendor Master Record
Figure 8: Partner Roles in the Vendor Master Record
Not all the various roles in a particular transaction are necessarily assumed by the
same business partner; a number of different firms may be involved. Because of this,
you have the option of defining relevant partner roles in the vendor master record on a
purchasing-organization-wide or plant-specific basis. These partners are adopted as
default values in the purchasing documents.
To use partner roles in the vendor master record, you must first make various settings
in Customizing. These settings are discussed in detail in Unit 8 (Selected Topics in
Customizing).
2006/Q2 © 2006 SAP AG. All rights reserved. 23
Unit 1: Master Data for Purchasing Management SCM520
24 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Vendor Master Record
Exercise 2: Vendor Master Record
Exercise Objectives
After completing this exercise, you will be able to:
• Create vendor master records
Business Example
Vendor master records are to be created for two new vendors from the head
office viewpoint. You have the relevant data from the Purchasing and Accounting
departments.
Task 1:
Create vendor master record.
1. Create a vendor master record with the following data:
(Name and address of vendor: optional.)
Vendor number T-K520A##
Company code 1000
Purchasing organization 1000
Account group ZTMM
Search term SCM520
Country DE
Language DE
Reconciliation account 160000
Order currency EUR
Terms of payment (purchasing) 0002
Continued on next page
2006/Q2 © 2006 SAP AG. All rights reserved. 25
Unit 1: Master Data for Purchasing Management SCM520
Task 2:
Copy and change vendor master record.
1. Since the data for the second vendor master record T-K520B## differs only
slightly from that of the first master record, you can use the data of record
T-K520A## as a copying template. Create vendor master record T-K520B##
with the account group ZTMM. As in task 1, the name und address of vendor
T-K520B## are optional.
2. Vendor T-K520B## advises you that in the case of POs issued for plant 1000
you will be invoiced by vendor T-K520A##. Furthermore, different terms of
payment have been negotiated for plant 1000. In the event of payment within 10
days, a 5% cash discount is granted.
Change the data for vendor T-K520B## by creating different data for plant 1000.
26 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Vendor Master Record
Solution 2: Vendor Master Record
Task 1:
Create vendor master record.
1. Create a vendor master record with the following data:
(Name and address of vendor: optional.)
Vendor number T-K520A##
Company code 1000
Purchasing organization 1000
Account group ZTMM
Search term SCM520
Country DE
Language DE
Reconciliation account 160000
Order currency EUR
Terms of payment (purchasing) 0002
a) SAP Menu → Logistics → Materials Management → Purchasing →
Master Data → Vendor → Central → Create
Continued on next page
2006/Q2 © 2006 SAP AG. All rights reserved. 27
Unit 1: Master Data for Purchasing Management SCM520
Task 2:
Copy and change vendor master record.
1. Since the data for the second vendor master record T-K520B## differs only
slightly from that of the first master record, you can use the data of record
T-K520A## as a copying template. Create vendor master record T-K520B##
with the account group ZTMM. As in task 1, the name und address of vendor
T-K520B## are optional.
a) SAP Menu → Logistics → Materials Management → Purchasing →
Master Data → Vendor → Central → Create
Caution: When creating a vendor master record with a reference,
you have to inidicate the reference company code and reference
purchasing organization so that more than just the client data is
copied.
2. Vendor T-K520B## advises you that in the case of POs issued for plant 1000
you will be invoiced by vendor T-K520A##. Furthermore, different terms of
payment have been negotiated for plant 1000. In the event of payment within 10
days, a 5% cash discount is granted.
Change the data for vendor T-K520B## by creating different data for plant 1000.
a) SAP Menu → Logistics → Materials Management → Purchasing →
Master Data → Vendor → Central → Change
On the purchasing data screen, accessed via Extras → Alternative Data,
the system asks you whether you wish to create different (alternative)
data. Confirm with Yes.
Enter 1000 in the Plant field and set both indicators (Purchasing Data and
Partner Roles in the Alternative Data area. Confirm your input with Enter.
Change the key for the terms of payment from 0002 to 0014 or ZB13
and confirm your input with Enter.
Enter vendor T-K520A## as the “invoicing party” (partner role RS).
28 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Vendor Master Record
Lesson Summary
You should now be able to:
• Describe how the default values that vendor master records contain simplify
the purchasing process
• Describe some of the important control parameters for the purchasing process
that are stored in vendor master records
• Create different data for specific plants or vendor subranges in the vendor
master record
2006/Q2 © 2006 SAP AG. All rights reserved. 29
Unit Summary SCM520
Unit Summary
You should now be able to:
• Describe how the default values that material master records contain simplify
the purchasing process
• Describe some of the important control parameters for the purchasing process
that are stored in material master records
• Describe how the material type defines and controls how materials are used
• Describe how the default values that vendor master records contain simplify
the purchasing process
• Describe some of the important control parameters for the purchasing process
that are stored in vendor master records
• Create different data for specific plants or vendor subranges in the vendor
master record
30 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Test Your Knowledge
Test Your Knowledge
1. Value-based updating is not provided for a material type. Which view can you
therefore not create in the material master record?
Choose the correct answer(s).
□ A Purchasing
□ B Accounting
□ C Materials planning
□ D Classification
2. Which views are maintained on client level in the material master record?
Choose the correct answer(s).
□ A Materials planning
□ B Purchase order text
□ C Purchasing
□ D Basic data
3. For which of the following can you create different data in the vendor master
record?
Choose the correct answer(s).
□ A Plant
□ B Material group
□ C Purchasing group
□ D Vendor subrange
4. While entering an RFQ, you want to take into account a vendor for which no
vendor master record as yet exists. Which statement is applicable?
Choose the correct answer(s).
□ A An RFQ is not possible in the SAP system in this case.
□ B You have to use a vendor master record where the account group
allows one-time accounts.
□ C You have to use a vendor master record where the account group
allows external number assignment. This enables you to enter a
number in the document that has not yet been assigned.
□ D You have to create the RFQ with a purchasing organization that is not
assigned to a company code or plant. An RFQ is then possible even
without entering a vendor number.
2006/Q2 © 2006 SAP AG. All rights reserved. 31
Test Your Knowledge SCM520
Answers
1. Value-based updating is not provided for a material type. Which view can you
therefore not create in the material master record?
Answer: B
2. Which views are maintained on client level in the material master record?
Answer: B, D
3. For which of the following can you create different data in the vendor master
record?
Answer: A, D
4. While entering an RFQ, you want to take into account a vendor for which no
vendor master record as yet exists. Which statement is applicable?
Answer: B
You always need a vendor number for all purchasing documents. If no vendor
master record exists, you can use a one-time vendor. You then have to enter the
address manually when creating the RFQ.
32 © 2006 SAP AG. All rights reserved. 2006/Q2
Unit 2
Source of Supply
Unit Overview
In this unit, you learn how to define relationships between materials and vendors in
the system. These data records are generally referred to as sources of supply. Possible
sources of supply are purchasing information records, outline purchase agreements
(contracts and scheduling agreements) and plants (for stock transfer processes).
Unit Objectives
After completing this unit, you will be able to:
• Distinguish between and create purchasing info records with and without
material master records
• Distinguish between and create cross-plant and plant-specific purchasing info
records
• Create conditions in purchasing info records
• Distinguish between different forms of contract
• Differentiate between and use item categories M and W in contracts
• Create centrally agreed contracts with plant conditions
• Create contract release orders for different types of contract item
• Enumerate the advantages of using scheduling agreements
• Differentiate between the various types of scheduling agreement
• Create scheduling agreements, SA delivery schedules and SA releases and
generate these automatically
• Describe the functions of the release creation profile
• Distinguish between forecast and JIT delivery schedules
Unit Contents
Lesson: Purchasing Information Record.......................................... 35
Exercise 3: Purchasing Information Record ................................. 47
Lesson: Contract..................................................................... 58
2006/Q2 © 2006 SAP AG. All rights reserved. 33
Unit 2: Source of Supply SCM520
Exercise 4: Contract ............................................................ 71
Lesson: Scheduling Agreement.................................................... 81
Exercise 5: Scheduling Agreement ........................................... 99
34 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Purchasing Information Record
Lesson: Purchasing Information Record
Lesson Overview
In this lesson, you will learn about using purchasing information records as
non-binding sources of materials with and without material master records.
Lesson Objectives
After completing this lesson, you will be able to:
• Distinguish between and create purchasing info records with and without
material master records
• Distinguish between and create cross-plant and plant-specific purchasing info
records
• Create conditions in purchasing info records
Business Example
You would like to create purchasing information records as sources in the system as
you are repeatedly procuring certain materials from the same vendors at the same
conditions. You would also like to use this as the basis for source determination. As
you often procure consumable materials at the same conditions and want to use source
determination for this too, you also create purchasing information records without a
material reference.
2006/Q2 © 2006 SAP AG. All rights reserved. 35
Unit 2: Source of Supply SCM520
Possible Sources of Supply
Figure 9: Sources of Supply: Overview
Purchasing Information Record
The purchasing information record (or info record for short) is a source of information
for the purchasing department. It contains data on a certain material and the supplier
of this material. It can contain data such as the vendor's current price for the material.
The prices and other data stored in the info record are used as default values in
documents such as purchase orders.
Outline agreement items
An outline purchase agreement is a longer-term arrangement between a purchasing
organization and a vendor covering the supply of materials or the provision of services
subject to predetermined conditions. These apply for a predefined period and a
predefined total purchase quantity or certain total purchase value. The two types of
outline agreement are contracts and scheduling agreements.
Plant
If external procurement is to be made by stock transfer from another plant, you do
not need to maintain any special data in Purchasing, as an internal settlement will
normally take place. It is also possible to create plants as vendors however. To do this,
a plant assignment must be entered when maintaining the vendor master record.
36 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Purchasing Information Record
Data in the Purchasing Information Record
The purchasing info record contains data on a certain material and the supplier of
this material.
Figure 10: Purchasing Info Record
When you create an info record, data is pulled from the material and vendor master
records and inserted in the info record as default values. If the info record is to be
generated automatically using the info update indicator, additional data from the
2006/Q2 © 2006 SAP AG. All rights reserved. 37
Unit 2: Source of Supply SCM520
relevant document is transferred to the info record as default values - for example,
conditions from the quotation or the purchase order document number is transferred to
the info record. An info record contains information such as:
• The current prices and delivery costs for the responsible purchasing organization
or plant
• Material number of vendor
• Delivery options (from date or to date)
• Source data
• The number of the last purchase order
• The number of the quotation, if the info record has been generated automatically
• Price control indicator
• Tolerance limits for over- or underdeliveries
• The vendor's planned delivery time for the material
List display functions for info records enable the buyer to find out which materials a
certain vendor has quoted for or supplied to date, and which vendors can quote for
or supply a certain material. An info record can apply to either all plants or just a
single plant of a purchasing organization. Info records can be generated manually or
automatically when a quotation, a PO, or an outline agreement is created.
Create/change/display info record:
SAP Menu → Logistics → Materials Management → Purchasing → Master Data →
Info Record → Create / Change / Display
Conditions
Conditions represent stipulations agreed with vendors with respect to prices, discounts
and surcharges, freight costs, and so on. Such conditions can be created in quotations,
info records, outline agreements, and purchase orders.
You also have the option of maintaining general conditions at vendor level, for
instance. The system then applies the conditions in addition to determine price
determination in purchasing documents. You can enter further conditions manually in
the purchasing document itself.
38 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Purchasing Information Record
Figure 11: Conditions
Create general conditions:
SAP Menu → Logistics → Materials Management → Purchasing → Master Data →
Conditions → Discounts/Surcharges → By Vendor / By Invoicing Party etc.
There are conditions that are valid for a certain period, and conditions for which
no definite validity period can be specified. In the latter case, the validity of the
conditions corresponds to that of the purchasing document in question.
The conditions in POs are always time-independent. Those in info records and
contracts are always time-dependent (as are general conditions).
In the case of scheduling agreements and quotations, the document type determines
whether time-dependent or time-independent conditions can be created. You can set
the Time-Dependent Conditions indicator in Customizing for the document type to
enable time-dependent conditions to be maintained in scheduling agreements and
quotations.
Define time-dependency in scheduling agreements and quotations:
2006/Q2 © 2006 SAP AG. All rights reserved. 39
Unit 2: Source of Supply SCM520
SAP Customizing Implementation Guide → Materials Management → Purchasing →
RFQ/Quotation or Scheduling Agreement → Define Document Types
For time-dependent conditions, you can define validity periods and scales. You can
also specify a price range (upper/lower limit). If the system adopts these conditions in
a purchase order and the condition is then changed in the PO, causing the price range
to be exceeded or undercut, the system issues an error message.
Conditions can be specified in the document header or in the item details. Item
conditions apply exclusively to the relevant item, whereas header conditions are valid
for all items of the document.
Calculation Schema
Figure 12: Calculation Schema
The calculation schema consitutes a set of rules for determining the purchase price.
In the standard calculation schema, the elements of the purchase price (gross price,
net price, and effective price) are defined as follows:
40 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Purchasing Information Record
Gross price
Price without taking any other conditions (such as discounts/surcharges or
delivery costs) into account (vendor's net price)
Net price
Price taking into account discounts and surcharges with reference to the gross
price but excluding delivery costs
Effective price
Net price less cash discount and including miscellaneous provisions, delivery
costs, and non-deductible tax
The calculation schema groups together all condition types that exert an influence
in determining the price. It defines the sequence in which the condition types are
applied in the price calculation.
Condition types are keys defined in Customizing to control how the conditions
are used. For example, in the standard system, condition type PB00 represents a
quantity-dependent gross price.
Other important control settings for the condition type are:
• Group condition: This indicator is used to control whether, for example, a scale
is not to be calculated for each item but for all items of a purchasing document.
• Header condition / item condition: Header conditions can be entered in the
document header and apply to every document item, item conditions are entered
in the document item and only apply to that item. A condition type can be both a
header condition or an item condition.
• Condition class: The condition type can be defined as a price, markup or
discount, for example.
• Calculation rule: This is used to determine whether the condition type is a
fixed amount or whether it is to depend on the purchase order quantity or the
purchase order value.
• Plus/minus sign: The plus/minus sign determines if the condition type is
calculated as a markup or discount.
The condition type is also used to define the reference magnitude for scales. The scale
can relate to the quantity, the item value, or the delivery costs, for example.
2006/Q2 © 2006 SAP AG. All rights reserved. 41
Unit 2: Source of Supply SCM520
Furthermore, the calculation schema defines the following:
• Which subtotals are formed with which condition types
• Which condition types are allowed in the document or info record
• The sequence in which the condition types are applied in calculating the net price
• Which condition types are specified in the message to the vendor
Hint: You can define various calculation schemas (for individual purchasing
organizations and/or vendors, for example). In the standard system, schema
RM0000 is provided for the purpose of price determination in purchasing
documents.
Define condition types:
SAP Customizing Implementation Guide → Materials Management → Purchasing →
Conditions → Define Price Determination Process → Define Condition Types
Define calculation schema:
SAP Customizing Implementation Guide → Materials Management → Purchasing →
Conditions → Define Price Determination Process → Define Calculation Schema
Default Price in Purchase Order
An info record can contain quotation and purchase order data in addition to material-
and vendor-specifc data. The data in the info record (for example, price, or planned
delivery time) is used as default data for purchase orders.
42 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Purchasing Information Record
Figure 13: Default Price from Info Record
You can store data such as current and future quotation conditions
(discounts/surcharges, fixed costs, and so on) in the info record so you can adopt them
in subsequently created POs . You can also store the vendor's conditions directly
in the info record.
A purchasing info record can apply to either all plants or a single plant in a purchasing
organization.
With default data for purchasing documents, whether an info record contains data on
purchasing organization level and/or plant level is critical. If data exists only on
purchasing organization level, then this data is suggested in the purchasing documents
for every plant of this purchasing organization. If plant-specific data exists in the
info record however, this is only proposed when a purchase order is created for the
corresponding plant.
The current conditions from the info record are always suggested. You can use the
pricing date category to find different conditions, for example, those dependent on
the delivery date. If you wish to use the pricing date category GR Date, you must
also select GR-based invoice verification.
2006/Q2 © 2006 SAP AG. All rights reserved. 43
Unit 2: Source of Supply SCM520
Info records can be created manually or automatically when a quotation, a PO, or an
outline agreement is created. Purchase order data is automatically updated in the info
record if the Info Update indicator has been set in the PO.
Hint: Conditions are never created or updated on the basis of the info update
indicator in a purchase order.
Texts
For an info record referencing a material master record, you can specify the following
per purchasing organization or plant:
• Whether only the info record purchase order text is to be displayed and printed
in purchasing documents. To do this, set the No Mat. Text indicator in the
purchasing organization data of the info record.
• The info record PO text and the purchase order text from the material master
record will be displayed and printed in purchasing documents. Both texts are
displayed and printed if the No Mat. Text indicator is not set.
Special Types of Info Records
Figure 14: Info Record for Material Group
44 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Purchasing Information Record
There are two types of info record:
• Info records with material master record (for example, stock material)
These reflect the relationship between a material or service with a material
master record and a vendor.
• Info records without material master record (for example, consumable
material)
These reflect the relationship between a material or service without a material
master record and a vendor.
Info records can be suggested by the system as a source for material groups as sources
when you manually create a requisition item without a material master record.
The system does not automatically take info records for material groups into account
when you create a purchase order. However, you can choose and assign them in the
item overview using the search help Info Records for Material Group on the relevant
field. The order unit and the material group are taken into account as checking criteria.
Info records can also be created for external processing without a material reference.
These frequently have the subcontracting info type and are used in work plans. If
a production order is created with an external processing operation for which an
info record has been entered, a requisition is generated automatically for external
processing.
Hint: As of R/3 Enterprise a program has been available with which you
can compare the actual delivery times with the planned delivery time from
the info record and the material master record. The result enables you to
automatically update the corresponding times. You can find this program
under SAP Menu → Logistics → Materials Management → Purchasing →
Master Data → Planned Delivery Time Calculation
2006/Q2 © 2006 SAP AG. All rights reserved. 45
Unit 2: Source of Supply SCM520
46 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Purchasing Information Record
Exercise 3: Purchasing Information Record
Exercise Objectives
After completing this exercise, you will be able to:
• Create and manage material-specific and material group-specific info records
Business Example
In your enterprise, you use material-specific and material-group-specific info records.
You have been requested to create plant- and purchasing-organization-wide info
records for vendor T-K520A##.
Task 1:
Create purchasing-group-wide info record.
1. Create an info record for material T-M520C## and vendor T-K520A## at the
level of purchasing organization 1000 with the following data:
Planned delivery time 7
Purchasing group Z##
Standard quantity 20
Price 8 EUR per box
Hint: The standard quantity is used as a basis for the calculation of the
effective price in the vendor evaluation and for price determination
when pricing scales are applicable.
Task 2:
Create info record for material group.
1. Your enterprise buys a variety of retractable pencils from the same vendor. No
material master records are to be created for the pencils. Descriptive information
on these office supplies is stored in a purchasing-organization-specific info
record for the material group ZT## with the following data:
Continued on next page
2006/Q2 © 2006 SAP AG. All rights reserved. 47
Unit 2: Source of Supply SCM520
Vendor T-K520A##
Purchasing organization 1000
Short text Retractable pencils 0.5 – 1 mm
Material group ZT##
Order unit Cardboard box (BOX)
Sort term (string) Pencils##
Planned delivery time 5
Purchasing group Z##
Standard quantity 5
Price 10 EUR per box
Price from 10 boxes upwards 9 EUR per box
Adopt the proposed validity period for the conditions.
Task 3:
Create purchase order.
1. Create a purchase order with the following header data:
Vendor T-K520A##
Purchasing organization 1000 (IDES Deutschland)
Purchasing group Z## (SCM520-##)
Company code 1000 (IDES AG)
Hint: Check whether the above values for the purchasing organization,
purchasing group, and company code are included as default values in
the Personal Settings for transaction ME21N. If not, enter the relevant
default values.
Item 1:
20 boxes of material T-M520C## are needed in plant 1000. Choose account
assignment category K for cost center and assign the purchase to G/L account
400000 and cost center 1000.
Must you enter an order price?
Continued on next page
48 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Purchasing Information Record
_________________________________________________
_________________________________________________
Where does the default value for the delivery date come from?
_________________________________________________
_________________________________________________
Item 2:
Order 10 boxes of retractable pencils, 0.5 mm for plant 1000. Use account
assignment category K and assign the purchase to G/L account 400000 and
cost center 1000. Since you know that an info record exists for the retractable
pencils, use the search help Info Record for Material Group to search for a
suitable info record for the sort term pencils## or for material group ZT## in the
Info Record field of the item overview.
What order price does the system suggest?
_________________________________________________
_________________________________________________
Task 4:
Settings for purchase order text.
1. Vendor T-K520A## also supplies material T-M520A##. Create an info record
for purchasing organization 1000 with the following data:
Planned delivery time 7
Purchasing group Z##
Standard quantity 100
Price 2 EUR per pc
Freight absolute (FRB1) 10 EUR
2. Material T-M520A## is delivered by T-K520A## freight prepaid (carriage
paid) if it is ordered for plant 1000. Create a corresponding plant-specific info
record with the following data:
Continued on next page
2006/Q2 © 2006 SAP AG. All rights reserved. 49
Unit 2: Source of Supply SCM520
Planned delivery time 3
Purchasing group Z##
Standard quantity 100
Price 2 EUR per pc
Purchase order text Collapsible box, corrugated cardboard
CB 2.2 freight prepaid delivery
Ensure that the info record PO text - not the material master PO text - is adopted
in purchase orders and other purchasing documents.
3. Create the following purchase order to be issued to vendor T-K520A##:
Item 1:
You need 100 pc of material T-M520A## for plant 1000.
Item 2:
You need another 100 pc of material T-M520A## for plant 1100.
Which conditions were determined?
_________________________________________________
_________________________________________________
Check the PO texts for the two items. Which texts have been adopted in the
purchase order?
_________________________________________________
_________________________________________________
50 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Purchasing Information Record
Solution 3: Purchasing Information Record
Task 1:
Create purchasing-group-wide info record.
1. Create an info record for material T-M520C## and vendor T-K520A## at the
level of purchasing organization 1000 with the following data:
Planned delivery time 7
Purchasing group Z##
Standard quantity 20
Price 8 EUR per box
Hint: The standard quantity is used as a basis for the calculation of the
effective price in the vendor evaluation and for price determination
when pricing scales are applicable.
a) SAP Menu → Logistics → Materials Management → Purchasing →
Master Data → Info Record → Create
You must not enter a plant on the initial screen, or the info record will be
created on a plant-specific basis. Confirm the input on the initial screen
with Enter.
Choose Goto → Purch. Org. Data 1 and enter the data listed in the table.
Task 2:
Create info record for material group.
1. Your enterprise buys a variety of retractable pencils from the same vendor. No
material master records are to be created for the pencils. Descriptive information
on these office supplies is stored in a purchasing-organization-specific info
record for the material group ZT## with the following data:
Vendor T-K520A##
Purchasing organization 1000
Short text Retractable pencils 0.5 – 1 mm
Material group ZT##
Continued on next page
2006/Q2 © 2006 SAP AG. All rights reserved. 51
Unit 2: Source of Supply SCM520
Order unit Cardboard box (BOX)
Sort term (string) Pencils##
Planned delivery time 5
Purchasing group Z##
Standard quantity 5
Price 10 EUR per box
Price from 10 boxes upwards 9 EUR per box
Adopt the proposed validity period for the conditions.
a) SAP Menu → Logistics → Materials Management → Purchasing →
Master Data → Info Record → Create
No material and plant may be specified on the initial screen. Confirm the
input on the initial screen with Enter.
On the General Data screen, enter the short text, the material group, the
purchase order unit of measure, and the sort term (sort string).
Choose Goto → Purch. Org. Data 1 and define the planned delivery time
and the purchasing group. First enter 10 EUR in the Net Price field.
Then choose Conditions.
Select the line with the condition type PB00 and choose Goto → Scales.
Enter the price for 1 or more boxes in the first line and the price for 10
or more in the second line.
Task 3:
Create purchase order.
1. Create a purchase order with the following header data:
Continued on next page
52 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Purchasing Information Record
Vendor T-K520A##
Purchasing organization 1000 (IDES Deutschland)
Purchasing group Z## (SCM520-##)
Company code 1000 (IDES AG)
Hint: Check whether the above values for the purchasing organization,
purchasing group, and company code are included as default values in
the Personal Settings for transaction ME21N. If not, enter the relevant
default values.
Item 1:
20 boxes of material T-M520C## are needed in plant 1000. Choose account
assignment category K for cost center and assign the purchase to G/L account
400000 and cost center 1000.
Must you enter an order price?
_________________________________________________
_________________________________________________
Where does the default value for the delivery date come from?
_________________________________________________
_________________________________________________
Item 2:
Order 10 boxes of retractable pencils, 0.5 mm for plant 1000. Use account
assignment category K and assign the purchase to G/L account 400000 and
cost center 1000. Since you know that an info record exists for the retractable
pencils, use the search help Info Record for Material Group to search for a
suitable info record for the sort term pencils## or for material group ZT## in the
Info Record field of the item overview.
What order price does the system suggest?
_________________________________________________
Continued on next page
2006/Q2 © 2006 SAP AG. All rights reserved. 53
Unit 2: Source of Supply SCM520
_________________________________________________
a) SAP Menu → Logistics → Materials Management → Purchasing →
Purchase Order → Create → Vendor/Supplying Plant Known
b) Item 1: The data from the info record created in Task 1 is adopted in the
PO item as default data. The suggested delivery date was calculated from
the planned delivery time stored in the info record.
c) Item 2: In the standard system, info records for a material group are not
automatically taken into account in a PO item. Only when the number
of the relevant info record has been entered in the Info Record field and
confirmed with Enter are the default values adopted in the PO item.
A purchase order price of 9 EUR per box is defaulted from the info record.
Task 4:
Settings for purchase order text.
1. Vendor T-K520A## also supplies material T-M520A##. Create an info record
for purchasing organization 1000 with the following data:
Planned delivery time 7
Purchasing group Z##
Standard quantity 100
Price 2 EUR per pc
Freight absolute (FRB1) 10 EUR
a) SAP Menu → Logistics → Materials Management → Purchasing →
Master Data → Info Record → Create
2. Material T-M520A## is delivered by T-K520A## freight prepaid (carriage
paid) if it is ordered for plant 1000. Create a corresponding plant-specific info
record with the following data:
Continued on next page
54 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Purchasing Information Record
Planned delivery time 3
Purchasing group Z##
Standard quantity 100
Price 2 EUR per pc
Purchase order text Collapsible box, corrugated cardboard
CB 2.2 freight prepaid delivery
Ensure that the info record PO text - not the material master PO text - is adopted
in purchase orders and other purchasing documents.
a) SAP Menu → Logistics → Materials Management → Purchasing →
Master Data → Info Record → Create
Since the vendor for plant 1000 delivers freight prepaid,
purchasing-organization-wide conditions cannot be adopted. Choose
Conditions and enter the agreed price.
To ensure that the PO text is not taken from the material master record, set
the No Mat. Text indicator on the Purchasing Organization Data 1 screen.
3. Create the following purchase order to be issued to vendor T-K520A##:
Item 1:
You need 100 pc of material T-M520A## for plant 1000.
Item 2:
You need another 100 pc of material T-M520A## for plant 1100.
Which conditions were determined?
_________________________________________________
_________________________________________________
Check the PO texts for the two items. Which texts have been adopted in the
purchase order?
_________________________________________________
Continued on next page
2006/Q2 © 2006 SAP AG. All rights reserved. 55
Unit 2: Source of Supply SCM520
_________________________________________________
a) SAP Menu → Logistics → Materials Management → Purchasing →
Purchase Order → Create → Vendor/Supplying Plant Known
b) Condition types:
The individual conditions from which the effective price of the PO item
is derived are displayed on the Conditions tab page. An effective price of
1.94 EUR per piece is suggested for the first item (plant 1000). This price
is calculated from the gross price amounting to 2 EUR (condition type
PB00) and the cash discount of 3% (condition type SKTO).
An effective price of 2.04 EUR per pc is suggested for the second item
(plant 1100). In the case of plant 1100, the flat-rate freight condition
amounting to 10 EUR (condition type FRB1) has to be additionally taken
into account. This means that a freight surcharge of 0.10 EUR is added.
c) Texts:
The PO texts are displayed on the Texts tab page.
The info record purchase order text is displayed for the first item (plant
1000)
The material master purchase order text is displayed for the second item
(plant 1100)
56 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Purchasing Information Record
Lesson Summary
You should now be able to:
• Distinguish between and create purchasing info records with and without
material master records
• Distinguish between and create cross-plant and plant-specific purchasing info
records
• Create conditions in purchasing info records
2006/Q2 © 2006 SAP AG. All rights reserved. 57
Unit 2: Source of Supply SCM520
Lesson: Contract
Lesson Overview
In this lesson, the contract is presented as a further possible source of supply. In
addition to different types of contract, you will be introduced to the contract-specific
item categories M and W. Furthermore, you will learn to differentiate between
plant-specific and cross-plant contract items. In the case of the cross-plant contracts
(centrally agreed contracts), you have the addional option of defining plant-specific
prices and partner roles.
Lesson Objectives
After completing this lesson, you will be able to:
• Distinguish between different forms of contract
• Differentiate between and use item categories M and W in contracts
• Create centrally agreed contracts with plant conditions
• Create contract release orders for different types of contract item
Business Example
In Purchasing, you would like to make a long-term delivery contract with your vendor.
For this reason, you enter contracts as sources. Contracts are a way of defining and
storing conditions agreed with vendors in the system.
Prices negotiated centrally (that is, for an entire corporate group) are represented in
the form of centrally-agreed contracts. These can later be used as a basis for creating
plant-specific contract calls or scheduling agreements.
Outline Agreement
An outline purchase agreement is a longer-term arrangement with a vendor covering
the supply of materials or the provision of services, subject to predetermined
conditions. These apply for a predefined period and a predefined total purchase
quantity or certain total purchase value.
For long-term outline agreements, you can also store several condition records for
each item if, for instance, the outline agreement is to last five years and prices within
this validity period are to decrease annually by three percent.
58 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Contract
An outline agreement does not contain data on specific delivery dates or quantities to
be delivered. This data is transmitted to the vendor in one of two ways, depending
on the type of outline agreement. You notify the vendor of quantities and delivery
dates either in a specialized form of purchase order called a contract release order, or
in a delivery schedule.
Figure 15: Outline Purchase Agreements: Overview
2006/Q2 © 2006 SAP AG. All rights reserved. 59
Unit 2: Source of Supply SCM520
An outline agreement can be a contract or a scheduling agreement. There are two key
differences in the use of these two agreement types:
• The volume of documents
In the case of the contract, as a rule, you create a new purchase order in the
system each time you release goods or services against the contract. With the
scheduling agreement, on the other hand, there is only one further document
apart from the agreement document; this is the delivery schedule, which is
continually extended as new requirement quantities and delivery dates are added.
• Use in automatic materials planning
Requirements planning can be set up in such a way that the contract item is
automatically assigned to a requisition item as the source of supply. However,
this requisition must subsequently be converted into a purchase order (contract
release order). In the case of the scheduling agreement, it is possible to directly
generate scheduling agreement delivery schedules from the planning run, thus
removing the need for any further processing time in the purchasing department.
Create/change/display outline agreement:
SAP Menu → Logistics → Materials Management → Purchasing → Outline
Agreement → Contract / Scheduling Agreement → Create / Change / Display
60 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Contract
Use of Contracts
Figure 16: Working with Contracts: Overview
Contracts can be created without reference to a purchase requisition, an outline
agreement requisition an RFQ or another contract.
Various item categories can be used. The item category influences document field
control.
If the contract item is a stock material item, at the very least purchasing and accounting
data must have been created in the relevant material master record. If the item is
for a consumable material, the account assignment data may already be stored in
the contract. Alternatively, you can use account assignment category U. The use of
account assignment category U means that the account assignment data is specified
for the first time in the contract release order.
2006/Q2 © 2006 SAP AG. All rights reserved. 61
Unit 2: Source of Supply SCM520
The release documentation for the contract item is updated for each PO item created
with reference to a contract. The system provides the following data for each release
order:
• The number of the PO and the relevant item
• The order date
• The order quantity
• The order value
The release documentation also includes the quantity or value already released and
the target quantity in comparison with the still open quantity, or the target value in
comparison with the still open value.
Whether the release documentation is updated with reference to the target value of
the contract, or the target quantity of each individual contract item, depends on the
agreement type used.
Figure 17: Contract Types
62 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Contract
There are three types of contract:
• Quantity contract
The contract is fulfilled when a stipulated target quantity per contract item is
reached as a result of the issue of release orders.
• Value contract
The contract is fulfilled when a stipulated overall target value (total value of all
items) is reached as a result of the issue of release orders.
• Distributed contracts
These are centrally-agreed contracts that are made available to other SAP
systems for the issue of release orders against the contract. You can create
contracts in one SAP system then make them available to other independent
SAP systems (that is, distribute them to other systems). The central system in
which the contract is created and the local systems that also procure using this
contract are all separate, independent SAP systems. The data must therefore be
kept identical in each individual system. In order for changes to be continually
compared and reconciled, thus ensuring that all the systems involved always
have the correct data, data is exchanged via Application Link Enabling (ALE).
You choose the contract type quantity contract (MK) if the total quantity of each
item to be ordered over the duration of the contract is known. After specifying the
validity period of the contract in the header data, you must enter the target quantity at
item level. Specification of the total value in the header data is optional.
You choose the contract type value contract (WK) if the total value of all release
orders issued against this contract is not to exceed a certain amount. The target value
must therefore be specified in the header data of the value contract in addition to the
validity period. Materials that are to be called with reference to the value contract have
to be entered at item level. You can also enter the target quantities for the material in
question, though this is not mandatory.
Hint: You can list all contracts that are due to expire in the near future. The
analysis, which is based on a suitable selection parameter, is run over the
fields Target Value and Total Release Value for value contracts and Target
Quantity and Quantity Released To Date for quantity contracts.
Contracts for Material Group
The contract-specific item categories M (material unknown) and W (material group)
are available to represent contractual agreements for groups of materials.
2006/Q2 © 2006 SAP AG. All rights reserved. 63
Unit 2: Source of Supply SCM520
Figure 18: Item Categories M and W
The item categories M and W are intended for the entry of contract items without
specification of the material number.
Item category M
Recommended for similar materials of the same price. These can be materials with
different material numbers or materials without material master records.
Example of use of item category M:
You have set up a contract with your vendor covering various types of writing paper
(lined, squared, blank, two-/four-hole prepunched, etc.). The different types of paper
have the same weight, the same quality, and the same price.
When entering this contract item of category M, you enter the short description,
material group, target quantity, unit of measure, and price, but no material number.
The short description must then be entered in the contract release order (for example,
lined, two-hole prepunched).
64 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Contract
You also have the option of releasing materials with a material master record against
this contract item in the release order, provided that the material group and purchase
order unit of measure agree.
Item category W
Recommended for materials belonging to the same material group but with different
prices. Item category W can only be used in value contracts.
Example of use of item category W:
You have set up a contract with your vendor for various types of cable. The contract is
to cover all types of cable included in the vendor's price list. However, the exact type
is only determined when a purchase order is created for a certain cable. Instead of
creating one contract item for each type of cable in the vendor's assortment, you could
enter item category W and the appropriate material group (for example, cable). From
the short text, it would then be clear that the contract item covers all types of cable
supplied by the vendor in question. Each release order issued against this contract
would then contain the exact specification of cable type and quantity (for example,
double-shielded coax, 1 meter), and price.
When entering the contract item, you enter only the short text and the material
group. You do not enter the target quantity or price. It is possible to enter additional
conditions. For example, you can enter a discount in the header conditions if the
vendor grants a discount on all POs referencing the contract. The discount is
calculated automatically when a contract release order is created.
The price, the target quantity, and the material number are not specified until you
create a release order. The item (with or without material number) must be assigned
to the same material group as the contract item referenced. Items without material
numbers must have a valid account assignment (such as a cost center).
Centrally Agreed Contracts
An enterprise that operates with a central purchasing organization covering several
plants can often negotiate better conditions at a central level. It has the option of
creating contracts that relate not to just one particular plant, but to the purchasing
organization.
2006/Q2 © 2006 SAP AG. All rights reserved. 65
Unit 2: Source of Supply SCM520
Figure 19: Items of Centrally Agreed and Plant Contracts
The plant is not specified until the contract release order is created. All plants assigned
to the purchasing organization can release against a centrally-agreed contract.
In the case of plant-specific contracts, a release order can only be created for the
relevant plant. In a centrally-agreed contract, you can create different conditions or
partners (for example) for individual plants however.
Hint: If certain plants are not to be allowed to release against the contract,
you should block the centrally agreed contract as a source in the source list
for these plants.
66 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Contract
Figure 20: Plant Conditions in Centrally Agreed Contract
Centrally agreed contracts enable you to specify separate conditions for each receiving
plant. This makes it possible, for example, to make due allowance for different
transportation costs for different routes and distances. Plant conditions are not an
supplementary conditions for the central conditions, but independent conditions for a
specific plant.
Caution: Maintenance of plant conditions in centrally-agreed contracts is
only possible via Edit → Plant Conditions.
Vendors may assume a variety of roles in the procurement process, such as ordering
address, invoicing party, or forwarder/carrier. These are referred to in purchasing
as partner roles.
You can maintain different partner roles either in the vendor master record or in each
individual contract. The partners that you can define in the vendor master record are
valid for a certain purchasing organization. In addition to the partners that are valid
for a purchasing organization, you can create different partners for individual plants or
vendor subranges in the vendor master record.
2006/Q2 © 2006 SAP AG. All rights reserved. 67
Unit 2: Source of Supply SCM520
If the partners have already been defined in the vendor master record, these appear
in the contract as default values. You can only maintain partner roles for the first
time in the contract however.
Figure 21: Partner Roles in Centrally Agreed Contract
Example of use of partner roles:
Goods supplied by vendor 1000 are delivered by different carriers. Different
forwarders/carriers are defined in the vendor master record as follows: Forwarder S01
delivers only to plant 1000, forwarder S02 delivers only to plant 1200.
The partners are usually adopted as default values when creating a contract.
If a buyer wishes to issue a release order for material M-01 with reference to a
centrally agreed contract with vendor 1000, he or she enters the key of the plant for
which the material is to be procured. If this is plant 1000, the system determines
creditor S01 as the forwarder.
If plant 1200 is entered, the system determines creditor S02 as the carrier.
Create plant specific partner in vendor master record:
68 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Contract
SAP Menu → Logistics → Materials Management → Purchasing → Master Data →
Vendor → Purchasing / Central → Create / Change:
On the Partner Roles screen in the vendor master record, choose Extras → Alternative
Data. Then enter the plant on the Create Alternative Data screen, and select Partner
Roles. Choose Continue. The Change Vendor: Partner Roles screen appears.
Create partner in contract:
SAP Menu → Logistics → Materials Management → Purchasing → Outline
Agreement → Contract → Create / Change
In the contract, choose Header → Partner. The Data Retention Level Partners screen
appears.
To create cross-purchasing-organization partners, select the first line and choose
Display Level. You can create new partners via New Entries.
To create plant-specific partners, enter the relevant plant on the Data Retention Level
Partners screen and choose Enter. The next screen to appear is Maintain Partners.
Enter the desired partners and return to the item overview for the contract.
2006/Q2 © 2006 SAP AG. All rights reserved. 69
Unit 2: Source of Supply SCM520
70 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Contract
Exercise 4: Contract
Exercise Objectives
After completing this exercise, you will be able to:
• Create and manage contracts
Business Example
In your enterprise, you use material-specific and material-group-specific contracts.
You have been requested to create plant- and purchasing-organization-wide contracts
for vendor T-K520B##.
Task 1:
Create centrally agreed contract and issue release orders.
1. You have entered into a contractual agreement with vendor T-K520B##
regarding the purchase of 10,000 pc of material T-M520B##.
Hint: To avoid having to enter purchasing group Z## on every initial
screen, define the purchasing group with the parameter ID EKG and the
value Z## in your own user data.
The validity period of the contract starts today and ends in two years. The
agreement applies to all plants of purchasing organization 1000. For two plants,
the prices differ from those of the central conditions. The individual prices are
set out in the following table:
Central price 5.50 EUR
Price for plant 1000 5.20 EUR
Price for plant 1100 5.30 EUR plus 2 % freight (FRA1)
The agreed planned delivery time is 10 days. Enter the agreed planned delivery
time in the additional data for the item.
Which agreement type do you use?
_________________________________________________
_________________________________________________
Continued on next page
2006/Q2 © 2006 SAP AG. All rights reserved. 71
Unit 2: Source of Supply SCM520
Check whether the invoicing party defined in the vendor master record for plant
1000 has been adopted in the contract.
2. 100 pc of material T-M520B## are needed in each of the plants 1000, 1100, and
1300. Create a purchase order referencing the contract and check the default
prices for the relevant plants.
Use the document overview to create the link to the contract. Define a suitable
selection variant and an appropriate layout.
After saving the PO, check the partners. Has the 'different invoicing party'
T-K520A## been adopted in the purchase order? Why or why not?
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
3. Optional: A further 20 pc of material T-M520B## are needed in plant 1000.
Create a PO as a contract release order for plant 1000. After saving the PO,
check the partners.
Has the 'different invoicing party' T-K520A## been adopted in the purchase
order?
_________________________________________________
_________________________________________________
Task 2:
Create material group contract and issue release orders.
1. You have entered into a further contractual agreement with vendor T-K520B##.
The subject of the agreement is the purchase of a total of 5000 packing boxes.
The contract, which applies only to plant 1000, is valid for one year as of today's
date. The packing boxes, which are to be delivered in 5 days, belong to material
group 008 (Packaging). The price is 1 EUR per pc.
Which agreement type do you use?
_________________________________________________
Which item category do you use? Why?
Continued on next page
72 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Contract
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
2. Plant 1000 needs various packing boxes. Order 50 pc of the material with the
number PK-080 and 80 packing boxes, size 5, with reference to the contract
with vendor T-K520B##. There is no material master record for the size 5
packing boxes. Use account assignment category K and assign the packing
boxes to G/L account 400000 and cost center 1000.
After saving the PO, check the contract release order documentation.
Has the data been updated correctly?
Task 3:
Create value contract and issue release orders.
1. A further contractual agreement has been set up with vendor T-K520B##
covering various MRO items. The agreement, which applies only to plant 1000,
is valid for two years. The target value of the contract amounts to 10,000 EUR.
The agreed planned delivery time is 6 days. The MRO items are not specified in
detail in the contract. The MRO items that may be released against the contract
are sundry supplies belonging to material group 010.
Which agreement type do you use?
_________________________________________________
_________________________________________________
Which item category do you use?
_________________________________________________
_________________________________________________
2. Plant 1000 needs lubricating oil. Referencing the value contract set up with
vendor T-K520B##, order 500 liters of lubricating oil at a price of 4 EUR
per liter. There is no master record for this material. Use account assignment
category K and assign the purchase to G/L account 400000 and cost center 1000.
2006/Q2 © 2006 SAP AG. All rights reserved. 73
Unit 2: Source of Supply SCM520
Solution 4: Contract
Task 1:
Create centrally agreed contract and issue release orders.
1. You have entered into a contractual agreement with vendor T-K520B##
regarding the purchase of 10,000 pc of material T-M520B##.
Hint: To avoid having to enter purchasing group Z## on every initial
screen, define the purchasing group with the parameter ID EKG and the
value Z## in your own user data.
The validity period of the contract starts today and ends in two years. The
agreement applies to all plants of purchasing organization 1000. For two plants,
the prices differ from those of the central conditions. The individual prices are
set out in the following table:
Central price 5.50 EUR
Price for plant 1000 5.20 EUR
Price for plant 1100 5.30 EUR plus 2 % freight (FRA1)
The agreed planned delivery time is 10 days. Enter the agreed planned delivery
time in the additional data for the item.
Which agreement type do you use?
_________________________________________________
_________________________________________________
Continued on next page
74 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Contract
Check whether the invoicing party defined in the vendor master record for plant
1000 has been adopted in the contract.
a) SAP Menu → Logistics → Materials Management → Purchasing →
Outline Agreement → Contract → Create
Choose agreement type MK for quantity contracts.
On the initial screen, remove any default plant since this is an item of a
centrally agreed contract.
Enter the validity period of the contract in the header data.
Choose Enter to invoke the Item Overview screen, on which you must
specify the material, target quantity, and the central price.
To enter the conditions for plant 1000, choose Edit → Plant Conditions →
Overview. Enter plant 1000, then choose Enter. Under Item → Conditions,
enter the conditions for plant 1000.
To enter the conditions for the second plant, navigate back to the overview
for plant conditions screen using the green arrow. Enter plant 1100, then
choose Enter. Under Item → Conditions, enter the conditions for plant
1100. Then navigate back to the contract item overview screen.
Enter the planned delivery time under Item → More Functions →
Additional Data.
b) To check whether the partner roles defined in the vendor master record
have been adopted, choose Header → Partner.
Select the desired line and choose Goto → Display level. Here the vendor
T-K520A## should be entered as the invoicing party.
Navigate back to the item overview and save the contract.
2. 100 pc of material T-M520B## are needed in each of the plants 1000, 1100, and
1300. Create a purchase order referencing the contract and check the default
prices for the relevant plants.
Use the document overview to create the link to the contract. Define a suitable
selection variant and an appropriate layout.
After saving the PO, check the partners. Has the 'different invoicing party'
T-K520A## been adopted in the purchase order? Why or why not?
_________________________________________________
_________________________________________________
Continued on next page
2006/Q2 © 2006 SAP AG. All rights reserved. 75
Unit 2: Source of Supply SCM520
_________________________________________________
_________________________________________________
_________________________________________________
a) SAP Menu → Logistics → Materials Management → Purchasing →
Purchase Order → Create → Vendor/Supplying Plant Known
b) Define selection variant:
Choose Document Overview.
Define a selection variant for contracts, in which purchasing organization
1000 and purchasing group Z## are included as selection criteria. Remove
any other parameters. Carry out the selection immediately after saving the
variant. Use the variant name Z##.
c) Define layout:
Define the breakdown and layout in accordance with your requirements and
save the settings as a user-specific layout L###.. Under Manage Layout,
choose this layout as the presetting. Save this setting.
d) Contract release order:
The document overview should show a contract with one item. Release the
desired quantities against the contract by selecting the item and choosing
Adopt. In the Item Overview, you must then enter the PO quantity and the
relevant plant.
Repeat for the remaining two plants.
The corresponding conditions are displayed on the Conditions tab page.
Hint: After saving, display the purchase order by selecting your
PO under Purchase Order → Other Purchase Order.
e) Partner determination:
The partners determined are shown on the Partners tab page in the PO
header. Since the purchase order was not created exclusively for plant
1000, and since no different invoicing party has been defined at purchasing
organization level in the contract, this PO does not contain a different
invoicing party.
Continued on next page
76 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Contract
3. Optional: A further 20 pc of material T-M520B## are needed in plant 1000.
Create a PO as a contract release order for plant 1000. After saving the PO,
check the partners.
Has the 'different invoicing party' T-K520A## been adopted in the purchase
order?
_________________________________________________
_________________________________________________
a) SAP Menu → Logistics → Materials Management → Purchasing →
Purchase Order → Create → Vendor/Supplying Plant Known
The different invoicing party T-K520A## has been adopted in the purchase
order because the order is to be issued for plant 1000 only.
Task 2:
Create material group contract and issue release orders.
1. You have entered into a further contractual agreement with vendor T-K520B##.
The subject of the agreement is the purchase of a total of 5000 packing boxes.
The contract, which applies only to plant 1000, is valid for one year as of today's
date. The packing boxes, which are to be delivered in 5 days, belong to material
group 008 (Packaging). The price is 1 EUR per pc.
Which agreement type do you use?
_________________________________________________
Which item category do you use? Why?
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
Continued on next page
2006/Q2 © 2006 SAP AG. All rights reserved. 77
Unit 2: Source of Supply SCM520
_________________________________________________
a) SAP Menu → Logistics → Materials Management → Purchasing →
Outline Agreement → Contract → Create
Choose agreement type MK (quantity contract), because the agreement
applies to a target quantity of 5000 pc.
The item category M (material unknown) is used for the contract item. At
the time the contract is created, you do not know exactly which packing
boxes will be ordered. The contract covers different kinds of boxes, which
are all purchased from the vendor at the same price.
2. Plant 1000 needs various packing boxes. Order 50 pc of the material with the
number PK-080 and 80 packing boxes, size 5, with reference to the contract
with vendor T-K520B##. There is no material master record for the size 5
packing boxes. Use account assignment category K and assign the packing
boxes to G/L account 400000 and cost center 1000.
After saving the PO, check the contract release order documentation.
Has the data been updated correctly?
a) SAP Menu → Logistics → Materials Management → Purchasing →
Purchase Order → Create → Vendor/Supplying Plant Known
If you have defined the document overview as described in Task 1, the
contract you just created will appear in the overview.
b) Select the contract item in the document overview and choose Adopt. Enter
the relevant material number and the order quantity for the first item.
Repeat for the second item. In addition to entering the short text and the
order quantity, you must specify the account assignment data for the
packing boxes.
c) SAP Menu → Logistics → Materials Management → Purchasing →
Outline Agreement → Contract → Display
Choose Item → Statistics → Release Documentation.
Task 3:
Create value contract and issue release orders.
1. A further contractual agreement has been set up with vendor T-K520B##
covering various MRO items. The agreement, which applies only to plant 1000,
is valid for two years. The target value of the contract amounts to 10,000 EUR.
Continued on next page
78 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Contract
The agreed planned delivery time is 6 days. The MRO items are not specified in
detail in the contract. The MRO items that may be released against the contract
are sundry supplies belonging to material group 010.
Which agreement type do you use?
_________________________________________________
_________________________________________________
Which item category do you use?
_________________________________________________
_________________________________________________
a) SAP Menu → Logistics → Materials Management → Purchasing →
Outline Agreement → Contract → Create
Choose agreement type WK (value contract), since the agreement is for a
target value of 10,000 EUR.
Item category W (material group) is used for the contract item because the
item relates to products belonging to one particular material group where
the prices of the individual products differ.
2. Plant 1000 needs lubricating oil. Referencing the value contract set up with
vendor T-K520B##, order 500 liters of lubricating oil at a price of 4 EUR
per liter. There is no master record for this material. Use account assignment
category K and assign the purchase to G/L account 400000 and cost center 1000.
a) SAP Menu → Logistics → Materials Management → Purchasing →
Purchase Order → Create → Vendor/Supplying Plant Known
If you have defined the document overview as described in Task 1, the
contract you just created will appear in the overview.
b) Select the contract item in the document overview and choose Adopt.
Enter the relevant data in the item.
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Unit 2: Source of Supply SCM520
Lesson Summary
You should now be able to:
• Distinguish between different forms of contract
• Differentiate between and use item categories M and W in contracts
• Create centrally agreed contracts with plant conditions
• Create contract release orders for different types of contract item
80 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Scheduling Agreement
Lesson: Scheduling Agreement
Lesson Overview
This lesson is intended to provide an overview of the advantages of using scheduling
agreements. You will learn about the various types of scheduling agreement and
their uses. You will also discuss the most important Customizing settings relevant to
scheduling agreements.
Lesson Objectives
After completing this lesson, you will be able to:
• Enumerate the advantages of using scheduling agreements
• Differentiate between the various types of scheduling agreement
• Create scheduling agreements, SA delivery schedules and SA releases and
generate these automatically
• Describe the functions of the release creation profile
• Distinguish between forecast and JIT delivery schedules
Business Example
You wish to use scheduling agreements to handle the procurement of certain materials
that are to be delivered on a just-in-time (JIT) basis. Initially, the vendor is to receive
a forecast delivery schedule giving him a rough overview of the quantities you need
over the next 100 days. In another notification, the JIT schedule, your vendor receives
the same data on a just-in-time basis.
Use of Scheduling Agreements
A scheduling agreement is a longer-term arrangement with a vendor covering the
supply of materials subject to predetermined conditions. The conditions are valid for a
predefined period and a predefined total purchase quantity.
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Unit 2: Source of Supply SCM520
Scheduling agreements have several advantages:
• Using scheduling agreements enables you to reduce processing times and the
amount of paperwork within your enterprise. Scheduling agreements can replace
a large number of standard POs or contract release orders.
SA delivery schedule lines do not constitute an independent document but are
part of the scheduling agreement. Procurement via scheduling agreements thus
enables you to reduce the volume of documents used.
• You only have to maintain low warehouse stocks as most of the stock holding
is done by the vendor.
• Your vendors have long-term service commitments which enable them to
negotiate more favorable conditions with respect to their vendors and this
benefits you in turn. In addition you can produce continuously and automate
your process.
Figure 22: Working with Scheduling Agreements: Overview
82 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Scheduling Agreement
Scheduling agreements can be created either with or without reference to a purchase
requisition, an outline agreement requisition, an RFQ, or another scheduling
agreement. Scheduling agreements can also be created with reference to a
centrally-agreed contract, thus facilitating the use of centrally-negotiated prices.
When you create a scheduling agreement, the following item categories are available:
• Standard
• Consignment
• Subcontracting
• Third-party
• Text
Scheduling agreements are always plant-specific. Item categories M and W are not
allowed. For scheduling agreement items with the item category subcontracting, you
can enter the material components to be provided for each delivery date separately.
Conditions may apply for the whole validity period of the scheduling agreement. If
you use a document type that permits time-dependent conditions, you can also enter
conditions for multiple validity periods.
If the scheduling agreement item was created with reference to a centrally agreed
contract, the conditions in the scheduling agreement should not be changed, since the
system always refers to the current conditions of the central contract. Price control is
set so that the conditions are always calculated at the time of goods receipt.
Costs incurred can be distributed among different controlling objects through the
account assignment. You are not allowed to use account assignment U (unknown) in
scheduling agreements.
The total quantity of material to be supplied specified in the scheduling agreement
item can be divided into a series of partial quantities with individual delivery dates in
the lines of the delivery schedule for the scheduling agreement. SA delivery schedule
lines can be created with or without reference to a purchase requisition. Scheduling
agreement delivery schedules can also be generated automatically by requirements
planning.
You can issue scheduling agreement releases (SA releases) notifying the vendor
that he is to deliver the required material on the scheduled dates. You can use
scheduling agreements with or without release documentation. This is determined
via the document type.
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Unit 2: Source of Supply SCM520
Using various types of confirmation, the vendor can indicate his acceptance of
delivery dates or inform you of variances from planned dates.
Hint: Goods receipts can only be posted before schedule line dates with
unlimited overdelivery tolerance and afterwards only within the set tolerances.
Please see Note 737495 on this subject.
Create/change/display scheduling agreement:
SAP Menu → Logistics → Materials Management → Purchasing → Outline
Agreement → Scheduling Agreement → Create / Change / Display
Create SA delivery schedule lines manually:
SAP Menu → Logistics → Materials Management → Purchasing → Outline
Agreement → Delivery Schedule → Maintain / Display
Automatic Scheduling Agreement Schedule Lines
In the case of large-volume transactions with a high degree of repetition (repetitive
manufacturing), it is desirable to have SA delivery schedule lines generated
automatically. A particular advantage in scheduling agreement processing is the
automatic generation of SA delivery schedule lines via MRP.
84 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Scheduling Agreement
Figure 23: Automatic Scheduling Agreement Schedule Lines
SA delivery schedule lines can be generated automatically through MRP if certain
prerequisites are fulfilled:
• The scheduling agreement must be clearly designated as a source of supply for
MRP in the source list (MRP indicator 2).
• The procurement indicator F (external procurement) must have been set in the
MRP data of the material master record (exception: you are working with quota
arrangement).
• Automatic scheduling agreement delivery schedules must be permitted in the
planning run. The Automatic Schedule Lines (Scheduling Agreements) indicator
sets the timeframe for which the the scheduling agreement delivery schedule is
to be generated.
The firm zone and trade-off zone define the degree to which delivery schedule lines
are binding. Scheduled delivery dates in the near future can be more binding than
those in the more distant future.
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Unit 2: Source of Supply SCM520
Figure 24: Firm and Trade-Off Zones
86 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Scheduling Agreement
For an item of a scheduling agreement, you can define a firm zone and a trade-off zone:
• Firm zone (production go-ahead period)
The firm zone defines the point in time (calculated from the current date) at
which the production go-ahead period ends. The production go-ahead period
begins with the current date. The schedule lines falling within this zone, or
period, are fixed, and can thus be regarded as equivalent to firm orders.
Normally, cancellations of and/or changes to delivery schedule lines falling
within this zone on your part would entitle the vendor to charge your enterprise
with any material and production costs incurred as a result. Whether you
actually enter into a contractual obligation with your vendor in this respect,
however, is up to you.
• Trade-off zone (material go-ahead period)
The trade-off zone defines the point in time (calculated from the current date) at
which the material go-ahead period ends. The material go-ahead period begins
with the end of the production go-ahead period. Delivery schedule lines falling
within this period can be less binding in nature than those in the firm zone. MRP
can be set up in such a way that either only the delivery schedule lines within the
firm zone or the lines within both zones are fixed (firmed) automatically.
Fixed delivery schedule lines are no longer changed in the planning run.
All schedule lines with delivery dates lying beyond the firm and trade-off zones (that
is, relatively far in the future) fall within the planning zone.
Both the production and material go-ahead periods are printed in the delivery
schedules and releases for information purposes.
The firm and trade-off zones are both calculated in calendar days. You enter these
zones in the additional data for the relevant scheduling agreement. You also make the
settings for the automatic fixing (firming) of schedule lines in MRP there.
Scheduling Agreements With and Without Release
Documentation
You can use scheduling agreements with or without release documentation. This is
controlled in Customizing, via an indicator, when you define the document type for
scheduling agreements.
The advantage of working with SA release documentation is that you always have a
record of when you sent which delivery schedule information to your vendor, which
you can display at any time.
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Unit 2: Source of Supply SCM520
Figure 25: Types of Scheduling Agreement
88 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Scheduling Agreement
• Without release documentation (in the standard system, document type LP)
The delivery schedule lines have official character - that is to say, they are
transmitted to the vendor as they are saved in the system. The system does not
document in detail releases against the scheduling agreement that have been
sent to the vendor. Therefore, in the case of the document type without release
documentation, the message control facility should be set up in such a way
that a message is immediately sent to the vendor if any changes are made to
the delivery schedule stored in the system. All open scheduling agreements
are always output.
• With release documentation (in the standard system, document type LPA)
If you use scheduling agreements with release documentation, the delivery
schedule lines are not transmitted directly to the vendor. Initially, the lines of
the delivery schedule stored in the system for an LPA scheduling agreement are
for internal information only. A message informing the vendor of your material
requirements cannot be transmitted to the vendor until you explicitly create an
SA release, that is, a forecast (FRC) or Just-in-Time (JIT) delivery schedule.
Through this process, you can change the way the schedule lines are represented.
With the release documentation, you can display the SA releases (delivery
schedules) transmitted to a vendor over a certain period at any time. This enables
you to trace precisely when you sent which information to the vendor.
There are two types of scheduling agreement (SA) release:
– Forecast (FRC) delivery schedules
Can be used to give the vendor a medium-term overview of your material
requirements.
– Just-in-Time (JIT) delivery schedules
Can be used to inform your vendor of your short-term (near future)
requirements. This type of schedule shows requirements per day or even
per hour.
Hint: Delivery schedule lines cannot be generated per hour in the planning
run.
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Unit 2: Source of Supply SCM520
SA releases can only be generated for scheduling agreements with release
documentation. You create a scheduling agreement with release documentation if you
use a document type for which the release documentation indicator has been set in
Customizing. For the standard document type LPA, the indicator is preset.
Figure 26: Scheduling Agreement with Forecast Delivery Schedule
An SA release can be created either manually or automatically on a regular basis with
the aid of a report. When using the report (online or in the background), SA releases
can be generated either for all selected items of a scheduling agreement or only for
those items for which schedule lines have been newly created or changed.
The release documentation enables you to find out when you sent which information
to the vendor.
The vendor can also tell which of their deliveries have already been taken into account.
90 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Scheduling Agreement
Figure 27: Scheduling Agreement with Forecast and JIT Delivery Schedules
Create SA releases:
SAP Menu → Logistics → Materials Management → Purchasing → Outline
Agreement → Delivery Schedule → Create SA Release
Generate SA releases in the scheduling agreement delivery schedule:
Edit → Generate Forecast/JIT Schedule
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Unit 2: Source of Supply SCM520
Figure 28: Control Data for Scheduling Agreements
You create scheduling agreements with or without release documentation. Since the
release documentation indicator is preset in Customizing for the standart document
type LPA, you can work with release documentation if you use this document type.
In the case of the standard document type LP, the release documentation indicator
is not set.
Whether or not you can generate both forecast and JIT delivery schedules against a
scheduling agreement with release documentation is determined by the JIT delivery
schedule indicator in the material master record. In order for you to be able to
work with JIT schedules, the JIT delivery schedule indicator must be set in the
material master record (Purchasing or MRP 2 view) and in the additional data for the
scheduling agreement item. No JIT delivery schedules can be created unless this
indicator has been set. The JIT delivery schedule must be set in the material master
record before the scheduling agreement is created. The JIT indicator cannot be set in
the delivery scheduling agreement if it is not set in the material master record.
A release creation profile exists for a delivery schedule with release documentation.
The use of a release creation profile is optional. The release profile controls the
creation periodicity of SA releases and the aggregation of scheduled quantities.
92 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Scheduling Agreement
If the plant-specific data of a vendor master record already includes the release
creation profile, the latter is automatically adopted in the additional data of a
scheduling agreement item with the vendor and the relevant plant. If the vendor
master record does not include the creation profile, you have the option of entering the
creation profile in the additional data of a scheduling agreement item manually.
Define document types for scheduling agreement:
SAP Customizing Implementation Guide → Materials Management → Purchasing
→ Scheduling Agreement → Define Document Types
Create release creation profile:
SAP Customizing Implementation Guide → Materials Management → Purchasing →
Scheduling Agreement → Maint. Rel. Creation Profile for Sched. Agmt w. Rel. Docu.
You can use release creation profiles to define the criteria for the creation of SA
releases (you can influence the quantities and delivery dates/times to be transmitted to
the vendor, for example).
Figure 29: Aggregation with the Release Creation Profile
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Unit 2: Source of Supply SCM520
The release creation profile is an instrument used to determine how frequently releases
against a scheduling agreement are generated and sent to the vendor.
The creation profile controls the creation periodicity of the SA releases and - starting
from the current date of release creation - the way in which quantities are aggregated.
The release creation periodicity determines the time intervals (for example, daily or
weekly) in which SA releases are generated and transmitted. You can define different
time intervals for forecast delivery schedules and JIT schedules.
Aggregation of scheduled quantities determines the periods for which the schedule
line quantities of a schedule line agreement item are to be consolidated. You can
define different time periods for forecast delivery schedules and JIT schedules. This
enables you to aggregate scheduled quantities for forecast delivery schedules to a
greater extent than for JIT schedules, which are usually transmitted to the vendor
showing delivery requirements for calendar days, or even hours.
You also define the delimitation of the transmission horizon in the release creation
profile. This enables you to send vendors only the data they require for planning.
Example of the exclusive use of forecast delivery schedules:
For a scheduling agreement where delivery schedule lines covering several months
have been maintained, a release creation profile may provide for releases to be
transmitted weekly, for example. The release quantities can be aggregated as follows:
no aggregation of the schedule line data for the first 10 days as of the current date
of release creation; daily aggregation from the 10th to the 30th day and monthly
aggregation from the 30th to the 60th day.
Example of the use of both forecast and JIT delivery schedules:
For a scheduling agreement for which delivery schedule lines covering several months
have been maintained, a release creation profile may provide for the JIT schedules
to be transmitted twice weekly, and forecast schedules to be transmitted only in the
event of changes in the delivery scheduling data that exceed predefined tolerances.
The release quantities can be aggregated as follows: in the case of the JIT schedule,
no aggregation of data for the first seven calendar days, daily aggregation from the
eighth to the 10th day. The forecast delivery schedule consolidates data from the
seventh to the 100th day on a weekly basis.
94 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Scheduling Agreement
Figure 30: Tolerance Limits for Scheduling Agreement Items
Via the creation profile, you can specify that a tolerance check is to be carried out if
SA releases need to be created following changes in the overall delivery schedule.
Releases for SA delivery schedule lines that have been changed can be generated
on the basis that predefined tolerance limits have been exceeded. Using tolerance
limits, you can specify that SA releases are to be generated only in the event of
major changes in the overall delivery schedule. The tolerance limits are defined in
the release creation profile in Customizing. Tolerance limits can be defined for a
maximum of three checking periods per SA release type (FRC and JIT).
Example:
A line of the overall scheduling agreement delivery schedule stored in the system is
changed as follows: instead of the original 100 pc, 103 pc are now needed on the
scheduled delivery date. This represents a change of 3% in the quantity. Since the
upper tolerance limit for JIT agreements (2%) is thus exceeded, a new JIT delivery
schedule is generated for issue to the vendor.
Instead of the original 105 pc, only 104 pc are now needed. This change is within the
set tolerance - the lower tolerance limit for forecast delivery schedules is 5% - so that
no new SA release is generated automatically.
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Unit 2: Source of Supply SCM520
Figure 31: Status of SA Releases
96 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Scheduling Agreement
You can determine the status of the SA releases from the screen for SA delivery
schedule maintenance. The traffic light colors are to be interpreted as follows:
• Yellow
When you first invoke the maintenance screen for a scheduling agreement
delivery schedule, the traffic light always initially shows yellow. This is because
no SA release that could be transmitted to the vendor yet exists. As soon as you
generate a release in the form of a forecast or JIT delivery schedule, the traffic
light changes to green. If or when the current release is sent to the vendor, the
traffic light changes back to yellow.
• Green
The green light signifies that a current release exists, but it has not yet been
transmitted to the vendor. This release can be sent.
• Red
If changes are made to the schedule within the horizon for forecast or JIT delivery
schedules before the last SA release has been transmitted to the vendor, the traffic
light changes to red. The red light signifies that the already existing release data
differs from the current scheduling data. An SA release exists, but its data does
not match up with that of the current overall delivery schedule in the system. As
soon as a new release is generated, the traffic light changes back to green.
Hint: If you use only the SA release type forecast (FRC) delivery schedule
in scheduling agreement processing, the traffic lights relate exclusively to FRC
schedules. If you use both SA release types FRC and JIT delivery schedules,
the traffic lights relate exclusively to the status of the JIT schedules.
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Unit 2: Source of Supply SCM520
98 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Scheduling Agreement
Exercise 5: Scheduling Agreement
Exercise Objectives
After completing this exercise, you will be able to:
• Create scheduling agreements with release documentation and delivery schedule
lines
Business Example
You wish to use scheduling agreements to handle the procurement of certain materials
that are to be delivered on a Just-in-Time basis. Initially, the vendor is to get a rough
overview of the quantities you'll be needing over the next few weeks. Subsequently,
the vendor is to receive Just-in-Time delivery data on the precise quantities needed.
2006/Q2 © 2006 SAP AG. All rights reserved. 99
Unit 2: Source of Supply SCM520
Task 1:
Create scheduling agreement with release documentation.
1. You need a material master record for a new raw material in plant 1000.
The material is to be procured on the basis of scheduling agreements. The
intention is to issue forecast (FRC) and Just-in-Time (JIT) delivery schedules
to the vendor. Which indicator in the Purchasing view of the material master
record controls the use of JIT delivery schedules?
_________________________________________________
_________________________________________________
Create the new material master record with the following data:
Material number T-M520D##
Industry sector Mechanical engineering
Material type Raw material (ROH)
Views Purchasing, Accounting 1
Plant 1000
Material description Headlight 65W
Base unit of measure pc
Purchasing group Z##
Material group 003
JIT delivery schedule indicator 1
Valuation class 3000
Price control V
Moving price 80 EUR
2. Change vendor master record T-K520B## in such a way that when a scheduling
agreement with release documentation is created for plant 1000, the release
creation profile ZTM2 (SCM520) is defaulted from the vendor master record.
3. Create a scheduling agreement for vendor T-K520B## for material T-M520D##.
Which agreement type do you choose to allow the use of both forecast and
JIT delivery schedules?
_________________________________________________
Continued on next page
100 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Scheduling Agreement
_________________________________________________
The agreement begins as of today's date and is valid for two years. The
agreement is valid for plant 1000. The target quantity is 100,000 pc. You have
negotiated a price of 78 EUR per pc. Deliveries are received into storage
location 0001. Before saving the scheduling agreement, branch to Additional
Data and verify that the release creation profile ZTM2 and the JIT delivery
schedule indicator have been adopted from the vendor master record and
material master record, respectively. In the additional data, enter the planned
delivery time of two days.
4. Maintain the following SA delivery schedule:
The inputs relate to workdays and are calculated from today onwards.
Delivery date in Scheduled quantity Time
workdays
In 3 days 50 10:00
In 3 days 60 14:00
In 6 days 80 10:00
In 6 days 40 14:00
In 9 days 60 10:00
In 9 days 80 14:00
In 15 days 150
In 16 days 120
What is the total scheduled quantity?
_________________________________________________
_________________________________________________
5. From the SA delivery schedule maintenance screen, generate a forecast (FRC)
delivery schedule.
Branch to the release documentation for your scheduling agreement item.
Display the transmission details. On the Creation/Transmission tab page, you
can see which release creation profile has been assigned to the scheduling
agreement item.
Creation profile:
_________________________________________________
Continued on next page
2006/Q2 © 2006 SAP AG. All rights reserved. 101
Unit 2: Source of Supply SCM520
_________________________________________________
Display the release creation profile details and determine the settings for forecast
delivery schedules.
Week-based aggregation in workdays:
_________________________________________________
_________________________________________________
Display the consolidation of the schedule lines in your forecast delivery schedule.
What do the schedule lines that are to be sent to the vendor look like?
_________________________________________________
_________________________________________________
_________________________________________________
You save the FRC schedule generated by saving the changes made in delivery
schedule maintenance.
6. From within SA delivery schedule maintenance, generate a Just-in-Time (JIT)
delivery schedule.
Branch to the release documentation for your scheduling agreement item.
Display the release creation profile details and determine the settings for JIT
delivery schedules.
No aggregation in workdays:
_________________________________________________
_________________________________________________
Day-based aggregation in workdays:
_________________________________________________
_________________________________________________
Display the consolidation of the schedule lines in your JIT delivery schedule.
Which schedule lines have not been taken into account in the JIT delivery
schedule?
_________________________________________________
_________________________________________________
Continued on next page
102 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Scheduling Agreement
You save the JIT schedule generated by saving the changes made in delivery
schedule maintenance.
Task 2:
Alternative task: Create scheduling agreement of type LP.
Hint: If you wish to process this task in addition to task 1, please use another
material number (e.g. T-M520L##).
1. You need a material master record for a new raw material in plant 1000.
The material is to be procured on the basis of scheduling agreements.
Create the new material master record with the following data:
Material number T-M520D##
Industry sector Mechanical engineering
Material type Raw material (ROH)
Views Purchasing, Accounting 1
Plant 1000
Material description Headlight 65W
Base unit of measure pc
Purchasing group Z##
Material group 003
Valuation class 3000
Price control V
Moving price 80 EUR
2. Create a scheduling agreement without release documentation for vendor
T-K520B## for material T-M520D##.
Which agreement type do you choose?
_________________________________________________
_________________________________________________
Continued on next page
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Unit 2: Source of Supply SCM520
The agreement begins as of today's date and is valid for two years. The
agreement is valid for plant 1000. The target quantity is 100,000 pc. You have
negotiated a price of 78 EUR per pc. Deliveries are received into storage
location 0001.
Before saving the scheduling agreement, branch to the additional data for the
item.
Specify a planned delivery time of two days.
You have agreed with your vendor that all schedule lines within the first 10
calendar days lie within the firm zone (production go-ahead) and that all
schedule lines within the period from the 11th to the 20th calendar day lie
within the trade-off zone (material go-ahead).
You have also agreed with your materials planner that schedule lines falling
within the firm zone will not be changed automatically in the requirements
planning run. Schedule lines falling within the trade-off zone are to be
automatically changeable in the planning run.
Which setting must the Binding on MRP field have?
_________________________________________________
_________________________________________________
3. Maintain the following SA delivery schedule:
The inputs relate to workdays and are calculated from today onwards.
Delivery date in workdays Scheduled quantity
In 3 days 50
In 6 days 60
In 9 days 80
In 12 days 40
In 17 days 60
In 21 days 50
What is the total scheduled quantity?
_________________________________________________
_________________________________________________
Which schedule lines are assigned to the trade-off zone?
Continued on next page
104 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Scheduling Agreement
_________________________________________________
_________________________________________________
4. Display the messages for the delivery schedule to be transmitted to the vendor.
Which schedule lines will be sent to the vendor?
_________________________________________________
_________________________________________________
Send the message to the vendor.
5. Change any scheduled quantity and then check the new message. Can it be seen
from the message that the scheduled quantity has changed?
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Unit 2: Source of Supply SCM520
Solution 5: Scheduling Agreement
Task 1:
Create scheduling agreement with release documentation.
1. You need a material master record for a new raw material in plant 1000.
The material is to be procured on the basis of scheduling agreements. The
intention is to issue forecast (FRC) and Just-in-Time (JIT) delivery schedules
to the vendor. Which indicator in the Purchasing view of the material master
record controls the use of JIT delivery schedules?
_________________________________________________
_________________________________________________
Create the new material master record with the following data:
Material number T-M520D##
Industry sector Mechanical engineering
Material type Raw material (ROH)
Views Purchasing, Accounting 1
Plant 1000
Material description Headlight 65W
Base unit of measure pc
Purchasing group Z##
Material group 003
JIT delivery schedule indicator 1
Valuation class 3000
Price control V
Moving price 80 EUR
a) SAP Menu → Logistics → Materials Management → Material Master
→ Material → Create General → Immediately
In order for you to be able to generate both forecast and JIT delivery
schedules, the JIT delivery schedule indicator in the Purchasing view of
the material master record must have the value 1.
Continued on next page
106 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Scheduling Agreement
2. Change vendor master record T-K520B## in such a way that when a scheduling
agreement with release documentation is created for plant 1000, the release
creation profile ZTM2 (SCM520) is defaulted from the vendor master record.
a) SAP Menu → Logistics → Materials Management → Purchasing →
Master Data → Vendor → Purchasing → Change (Current)
You can define the release creation profile in the plant-specific purchasing
data (Alternative Data). The field is located among the default values
for the material.
3. Create a scheduling agreement for vendor T-K520B## for material T-M520D##.
Which agreement type do you choose to allow the use of both forecast and
JIT delivery schedules?
_________________________________________________
_________________________________________________
The agreement begins as of today's date and is valid for two years. The
agreement is valid for plant 1000. The target quantity is 100,000 pc. You have
negotiated a price of 78 EUR per pc. Deliveries are received into storage
location 0001. Before saving the scheduling agreement, branch to Additional
Data and verify that the release creation profile ZTM2 and the JIT delivery
schedule indicator have been adopted from the vendor master record and
material master record, respectively. In the additional data, enter the planned
delivery time of two days.
a) SAP Menu → Logistics → Materials Management → Purchasing →
Outline Agreement → Scheduling Agreement → Create → Vendor Known
Choose the agreement type LPA in order to be able to send FRC and JIT
delivery schedules to your vendor.
Access the additional data via Item → More Functions → Additional Data.
4. Maintain the following SA delivery schedule:
The inputs relate to workdays and are calculated from today onwards.
Delivery date in Scheduled quantity Time
workdays
In 3 days 50 10:00
In 3 days 60 14:00
In 6 days 80 10:00
Continued on next page
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Unit 2: Source of Supply SCM520
In 6 days 40 14:00
In 9 days 60 10:00
In 9 days 80 14:00
In 15 days 150
In 16 days 120
What is the total scheduled quantity?
_________________________________________________
_________________________________________________
a) SAP Menu → Logistics → Materials Management → Purchasing →
Outline Agreement → Delivery Schedule → Maintain
Select the item and choose Item → Delivery schedule.
The total scheduled quantity is 640 pc.
5. From the SA delivery schedule maintenance screen, generate a forecast (FRC)
delivery schedule.
Branch to the release documentation for your scheduling agreement item.
Display the transmission details. On the Creation/Transmission tab page, you
can see which release creation profile has been assigned to the scheduling
agreement item.
Creation profile:
_________________________________________________
_________________________________________________
Display the release creation profile details and determine the settings for forecast
delivery schedules.
Week-based aggregation in workdays:
_________________________________________________
_________________________________________________
Display the consolidation of the schedule lines in your forecast delivery schedule.
What do the schedule lines that are to be sent to the vendor look like?
_________________________________________________
_________________________________________________
Continued on next page
108 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Scheduling Agreement
_________________________________________________
You save the FRC schedule generated by saving the changes made in delivery
schedule maintenance.
a) SAP Menu → Logistics → Materials Management → Purchasing →
Outline Agreement → Delivery Schedule → Maintain
Select the item and choose Edit → Generate Forc. Schd.
b) Select the item and choose Item → SA Release Docu. On the
Creation/Transmission tab page, you can see that creation profile ZTM2
has been assigned to the item. Choose Profile Details (i button), to obtain
the following information (Aggregation Horizons tab page):
Week-based aggregation in workdays: 100
c) Select the forecast delivery schedule with the number 1. Under Goto
→ Schedule lines/release, you can see that all schedule lines have been
aggregated by the week.
6. From within SA delivery schedule maintenance, generate a Just-in-Time (JIT)
delivery schedule.
Branch to the release documentation for your scheduling agreement item.
Display the release creation profile details and determine the settings for JIT
delivery schedules.
No aggregation in workdays:
_________________________________________________
_________________________________________________
Day-based aggregation in workdays:
_________________________________________________
_________________________________________________
Display the consolidation of the schedule lines in your JIT delivery schedule.
Which schedule lines have not been taken into account in the JIT delivery
schedule?
_________________________________________________
_________________________________________________
Continued on next page
2006/Q2 © 2006 SAP AG. All rights reserved. 109
Unit 2: Source of Supply SCM520
You save the JIT schedule generated by saving the changes made in delivery
schedule maintenance.
a) SAP Menu → Logistics → Materials Management → Purchasing →
Outline Agreement → Schedule Agreement → Delivery Schedule →
Maintain
Select the item and choose Edit → Generate JIT Sched
b) Select the item and choose Item → SA Release Docu.
On the Creation/Transmission tab page, choose Profile Details, directly
adjacent to the creation profile to obtain the following information
(Aggregation Horizons) tab page:
No aggregation in workdays: 7
Day-based aggregation in workdays: 8-10
c) Select the JIT delivery schedule with the number 1.
Via Goto → Sched. lines/release, you can see that none of the scheduling
agreement delivery schedule lines after the 10th workday have been taken
into account in the JIT schedule.
Task 2:
Alternative task: Create scheduling agreement of type LP.
Hint: If you wish to process this task in addition to task 1, please use another
material number (e.g. T-M520L##).
1. You need a material master record for a new raw material in plant 1000.
The material is to be procured on the basis of scheduling agreements.
Create the new material master record with the following data:
Material number T-M520D##
Industry sector Mechanical engineering
Material type Raw material (ROH)
Views Purchasing, Accounting 1
Plant 1000
Material description Headlight 65W
Continued on next page
110 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Scheduling Agreement
Base unit of measure pc
Purchasing group Z##
Material group 003
Valuation class 3000
Price control V
Moving price 80 EUR
a) SAP Menu → Logistics → Materials Management → Material Master
→ Material → Create General → Immediately
2. Create a scheduling agreement without release documentation for vendor
T-K520B## for material T-M520D##.
Which agreement type do you choose?
_________________________________________________
_________________________________________________
The agreement begins as of today's date and is valid for two years. The
agreement is valid for plant 1000. The target quantity is 100,000 pc. You have
negotiated a price of 78 EUR per pc. Deliveries are received into storage
location 0001.
Before saving the scheduling agreement, branch to the additional data for the
item.
Specify a planned delivery time of two days.
You have agreed with your vendor that all schedule lines within the first 10
calendar days lie within the firm zone (production go-ahead) and that all
schedule lines within the period from the 11th to the 20th calendar day lie
within the trade-off zone (material go-ahead).
You have also agreed with your materials planner that schedule lines falling
within the firm zone will not be changed automatically in the requirements
planning run. Schedule lines falling within the trade-off zone are to be
automatically changeable in the planning run.
Which setting must the Binding on MRP field have?
_________________________________________________
Continued on next page
2006/Q2 © 2006 SAP AG. All rights reserved. 111
Unit 2: Source of Supply SCM520
_________________________________________________
a) SAP Menu → Logistics → Materials Management → Purchasing →
Outline Agreement → Scheduling Agreement → Create → Vendor Known
Choose agreement type LP.
Access the additional data via Item → More Functions → Additional Data.
There you can define the planned delivery time, the firm zone, and the
trade-off zone. In the Binding on MRP field, you must enter the value 1.
3. Maintain the following SA delivery schedule:
The inputs relate to workdays and are calculated from today onwards.
Delivery date in workdays Scheduled quantity
In 3 days 50
In 6 days 60
In 9 days 80
In 12 days 40
In 17 days 60
In 21 days 50
What is the total scheduled quantity?
_________________________________________________
_________________________________________________
Which schedule lines are assigned to the trade-off zone?
_________________________________________________
_________________________________________________
a) SAP Menu → Logistics → Materials Management → Purchasing →
Outline Agreement → Schedule Agreement → Delivery Schedule →
Maintain
Select the item and choose Item → Delivery Schedule.
The total scheduled quantity is 340 pc.
Schedule lines 3 and 4 fall within the trade-off zone.
Continued on next page
112 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Scheduling Agreement
4. Display the messages for the delivery schedule to be transmitted to the vendor.
Which schedule lines will be sent to the vendor?
_________________________________________________
_________________________________________________
Send the message to the vendor.
a) SAP Menu → Logistics → Materials Management → Purchasing →
Outline Agreement → Schedule Agreement → Delivery Schedule →
Print/Transmit
Select your scheduling agreement and choose Execute. Select the item and
choose Display Message.
All scheduled quantities have been included in the delivery schedule sent
to the vendor.
Choose Back.
Select the item again and choose Output Message
5. Change any scheduled quantity and then check the new message. Can it be seen
from the message that the scheduled quantity has changed?
a) SAP Menu → Logistics → Materials Management → Purchasing →
Outline Agreement → Schedule Agreement → Delivery Schedule →
Print/Transmit
Select your scheduling agreement and choose Execute. Select the item and
choose Goto → Display Message.
From the message, you can see which schedule line has changed, and
by which quantity.
2006/Q2 © 2006 SAP AG. All rights reserved. 113
Unit 2: Source of Supply SCM520
Lesson Summary
You should now be able to:
• Enumerate the advantages of using scheduling agreements
• Differentiate between the various types of scheduling agreement
• Create scheduling agreements, SA delivery schedules and SA releases and
generate these automatically
• Describe the functions of the release creation profile
• Distinguish between forecast and JIT delivery schedules
114 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Unit Summary
Unit Summary
You should now be able to:
• Distinguish between and create purchasing info records with and without
material master records
• Distinguish between and create cross-plant and plant-specific purchasing info
records
• Create conditions in purchasing info records
• Distinguish between different forms of contract
• Differentiate between and use item categories M and W in contracts
• Create centrally agreed contracts with plant conditions
• Create contract release orders for different types of contract item
• Enumerate the advantages of using scheduling agreements
• Differentiate between the various types of scheduling agreement
• Create scheduling agreements, SA delivery schedules and SA releases and
generate these automatically
• Describe the functions of the release creation profile
• Distinguish between forecast and JIT delivery schedules
2006/Q2 © 2006 SAP AG. All rights reserved. 115
Unit Summary SCM520
116 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Test Your Knowledge
Test Your Knowledge
1. Which statements apply for condition maintenance in purchasing information
records?
Choose the correct answer(s).
□ A There is only ever one valid condition record for one date.
□ B If a new validity period exceeds an existing validity period
completely, the latter is deleted when saving.
□ C If a condition record is created with a plant reference, no further
condition records can subsequently be created without a plant
reference.
□ D If a planned delivery time is created in the purchasing information
record, this is transferred to the material master record on saving as
long as a different entry exists there.
2. What types of purchasing information records (= infotypes) are there?
Choose the correct answer(s).
□ A Standard
□ B Third-party
□ C Subcontracting
□ D Plant
3. How do scheduling agreements differ from contracts?
Choose the correct answer(s).
□ A You can create contracts with reference to a scheduling agreement but
you cannot create scheduling agreements with reference to a contract.
□ B Account assignment category U (unknown) is allowed in the contract
but not in the scheduling agreement.
□ C Contracts can contain a plant but scheduling agreements have to.
□ D You can use item category W (material group) in both the contract
and the scheduling agreement but you can only use item category M
(material unknown) in the contract.
2006/Q2 © 2006 SAP AG. All rights reserved. 117
Test Your Knowledge SCM520
4. Which messages are possible for scheduling agreements with release
documentation?
Choose the correct answer(s).
□ A Scheduling agreement (NEW message type)
□ B Forecast delivery schedule
□ C Just-in-Time (JIT) delivery schedule
□ D Scheduling agreement delivery schedule
118 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Test Your Knowledge
Answers
1. Which statements apply for condition maintenance in purchasing information
records?
Answer: A, B
2. What types of purchasing information records (= infotypes) are there?
Answer: A, C
3. How do scheduling agreements differ from contracts?
Answer: B, C
4. Which messages are possible for scheduling agreements with release
documentation?
Answer: A, B, C
Scheduling agreement delivery schedules are only possible for scheduling
agreements without release documentation.
2006/Q2 © 2006 SAP AG. All rights reserved. 119
Unit Summary SCM520
120 © 2006 SAP AG. All rights reserved. 2006/Q2
Unit 3
Source Determination
Unit Overview
For new procurement transactions, you initially wish to make use of data that already
exists in the system. The determination of a new source of supply through the more
time-consuming process of RFQ and quotation is often only an option when you
have discovered that the system does not contain a suitable source for a particular
requirement.
Several sources of supply (info records and outline agreements) can be stored in the
system for one material. The source determination process helps you to find the
desired source of supply for a certain requirement. In this process, the system suggests
a suitable outline agreement or info record for a purchase requisition or purchase order.
Unit Objectives
After completing this unit, you will be able to:
• Describe the various ways of creating source list records
• List the different uses of a source list
• Control the source determination process with the aid of the source list
• Create the quota arrangement for a material
• Describe how the source determination process can be controlled with the aid of
the quota arrangement
• Describe how the automatic source determination process works when purchase
requisitions are assigned manually
• Describe how the automatic source determination process works in the
requirements planning run
• List the options for blocking sources of supply for procurement purposes
2006/Q2 © 2006 SAP AG. All rights reserved. 121
Unit 3: Source Determination SCM520
Unit Contents
Lesson: Source List ................................................................ 123
Exercise 6: Source List ........................................................ 135
Lesson: Quota Arrangement ...................................................... 148
Exercise 7: Quota Arrangement .............................................. 163
Lesson: Further Aspects of Source Determination ............................. 172
Exercise 8: Further Aspects of Source Determination..................... 187
122 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Source List
Lesson: Source List
Lesson Overview
This lesson shows you how the source list is used in purchasing and in material
requirements planning. It provides an overview of how you can use the source list
to influence the process of automatic source determination that takes place when a
purchase requisition is created and during the requirements planning run.
Lesson Objectives
After completing this lesson, you will be able to:
• Describe the various ways of creating source list records
• List the different uses of a source list
• Control the source determination process with the aid of the source list
Business Example
For some of your materials, there is more than one source of supply. You can manage
these supply sources using source lists to control how the application-related supply
sources are used.
Overview of Supply Source Determination
The purpose of the source determination process is to automatically assign a source
of supply to a purchase requisition. If the person entering the requisition has set the
Source Determination indicator in the requisition header, the system searches for
possible sources of supply for all the items of the requisition. If the system finds
several valid sources for an item, the decision process can be supported by a price
simulation or by reference to data from the vendor evaluation facility.
2006/Q2 © 2006 SAP AG. All rights reserved. 123
Unit 3: Source Determination SCM520
Figure 32: Overview of Supply Source Determination
You can use the source list and / or quota arrangement to control the sources.
124 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Source List
Figure 33: Master Data in Purchasing
In the source list, you specify which source of supply is valid for a certain period of
time. You can specify a preferred source as fixed or MRP-relevant for a certain period
in the source list. You can mark an undesired source as blocked.
With the aid of a quota arrangement, you can have material requirements arising
over a certain period divided up among different sources on the basis of quotas. Quota
arrangements determine which source of supply (maybe from among several possible
ones) is automatically assigned to a purchase requisition.
Functions of the Source List
You use the source list to administer your sources of supply. The source list contains a
list of sources for a material in a particular plant and for particular time periods. Each
source is defined by a source list record. The source list has the following purposes:
• Restricting the selection of sources during the source determination process
• Defining a source as a fixed source
• Blocking a source
2006/Q2 © 2006 SAP AG. All rights reserved. 125
Unit 3: Source Determination SCM520
Figure 34: Source List
126 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Source List
Each source list record consists of the following data:
• Validity period
Period within which the settings made in the source list are valid. The time
period always makes reference to the delivery date for a requirement.
• Key source data
Number of the vendor and the responsible purchasing organization (info records)
or number and item of the outline agreement (scheduling agreement or contract)
representing the source of supply for the material.
• Fixed source
Select the Fixed field to define a source as a fixed source for the purposes of
source determination. The fixed source is determined in all cases except the
planning run.
• Procurement plant
If the material can be procured from a plant, enter the plant number in the PPl
field and leave the field for the vendor number and/or contract number empty.
The plant is only determined as part of source determination for an item with
the stock transfer item type.
• Blocked source
Select the Blocked field to define a source of supply as blocked. The info record
or outline agreement is not suggested in the course of the source determination
process and no PO or requisition can be created with this source.
Hint: If you set the Blocked indicator and do not enter a vendor but only
a validity period, the material is excluded from external procurement
which means it cannot be ordered or requested during this period.
• MRP
You use the MRP (MRP-relevant) indicator to control whether a source should
be found during the planning run (indicator 1). If this source is a scheduling
agreement, you can also generate scheduling agreement schedule lines directly
(indicator 2). You can mark multiple source list entries as MRP-relevant if you
want to use this in quota arrangement.
If you wish to prevent a material from being ordered or requested from a vendor for
which no corresponding source has been entered in the source list, define the material
as subject to a source list requirement in the material master record.
2006/Q2 © 2006 SAP AG. All rights reserved. 127
Unit 3: Source Determination SCM520
Figure 35: Source List Requirement (Material-Related)
You can also specify that all materials for a certain plant are to be subject to a source
list requirement in Customizing. If a source list requirement is defined for a plant, you
have to maintain valid source list entries for each material in the plant before this can
be ordered or requested for a certain source.
128 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Source List
Figure 36: Source List Requirement (Plant-Related)
Hint: With the source list analysis, you can find out whether source list
records exist for materials of a plant within a certain period. For plants with a
source list requirement, this enables you to tell which materials source list
records are missing for and call them immediately for maintenance.
Analyze source list:
SAP Menu → Logistics → Materials Management → Purchasing → Master Data →
Source List → Follow-On Functions → Analyze
Define source list requirement at plant level:
SAP Customizing → Implementation Guide → Materials Management → Purchasing
→ Source List → Define Source List Requirement at Plant Level
2006/Q2 © 2006 SAP AG. All rights reserved. 129
Unit 3: Source Determination SCM520
Creation of Source List Records
Figure 37: Create Source List Records
You can create source list records for individual sources of a material as follows:
• Manually
This method is recommended if you have to make numerous changes to, or
new entries in, a source list.
• Creation from within an outline agreement
With this procedure, you can adopt an item from an outline agreement in a
source list when creating or changing the agreement. On the outline agreement
overview screen, select an item for which you wish to enter source list records
and choose Item → Maintain Source List. If you have not entered a plant in the
outline agreement item, you must enter the plant for each source list record.
• Creation from within an info record
130 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Source List
With this procedure, you can enter a vendor in the source list when creating or
changing a purchasing info record. In the info record, choose Extras → Source
List. If the info record is valid for an entire purchasing organization, you can
create the source list for all plants of the organization in question. Choose the
plant via Goto → Plant.
• Automatically
You can have source list records generated automatically by the system. The
source list records can be generated for several materials (collective procedure)
or for a single material (individual procedure). The system thus enables you to
create or update all the records for a certain source list very quickly. With this
procedure, you can generate a source list record for every info record and/or
every outline agreement item for a material or several materials.
Caution: This functionality is not suitable for updating your source
lists because source list records cannot be automatically generated just
for the new sources.
Before generating source list records, you should answer the following questions:
– For which materials or plants are source list records to be generated?
– Are only outline agreement items, only info records, or both to be taken
into account?
– For which period are the source list records that are to be generated to be
valid?
– Do source list records already exist for the materials for which you wish to
generate source list records? If so, you must decide how the system is to
treat the old records (delete or leave unchanged).
– Which indicators (fixed, blocked MRP-relevant) should be set?
Create source list manually:
SAP Menu → Logistics → Materials Management → Purchasing → Master Data →
Source List → Maintain
Generate source list automatically:
SAP Menu → Logistics → Materials Management → Purchasing → Master Data
→ Source List → Follow-On Functions → Generate
2006/Q2 © 2006 SAP AG. All rights reserved. 131
Unit 3: Source Determination SCM520
Source List Records for Material Group Contracts
Figure 38: Source List Records for Material Group Contracts
There may be outline agreement items relating to a material group rather than a single
specific material - for example, an outline agreement item with item category M
(material unknown) or W (material group). You can create material-specific source
list records for these contract items. In doing so, you can decide whether to exclude or
include certain materials of the relevant material group by means of the source list.
• Exclude
Generally, all materials belonging to the material group in question can be
ordered with reference to this contract item except those blocked in the source
list for the material group item.
• Include
Only materials belonging to the material group in question that appear in the
source list for the material group item can be ordered with reference to this
contract item.
Example:
132 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Source List
A contract exists for computer components. It is not necessary for every possible
material to be included in the contract as a separate item. The contract must merely
have a single item covering all materials (for example, the material group ZT99). The
material D-01 that also belongs to material group ZT99 is to be excluded from release
orders issued because it is covered by a separate contract. You therefore decide to use
the source list for the material group item as an exclusion list.
To create the source list for a material group item, proceed as follows:
On the outline agreement overview screen, select the item for which you wish to enter
the source list record and choose Item → Maintain Source List.
To exclude material D-01, keep the Exclusion indicator set and enter the material
number D-01 in the list with the appropriate validity period. The system will then
generate a source list record in which this outline agreement item is blocked as a
source for material D-01.
Hint: Materials without a material master record cannot be blocked using
the source list.
2006/Q2 © 2006 SAP AG. All rights reserved. 133
Unit 3: Source Determination SCM520
134 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Source List
Exercise 6: Source List
Exercise Objectives
After completing this exercise, you will be able to:
• Create and administer a source list
Business Example
For some of your materials, there is more than one possible source of supply. You
administer these sources by means of source lists.
Task 1:
Automatic source determination without a source list.
1. Create a new material master record with the following data:
Material number T-M520E##
Industry sector Mechanical engineering
Material type Semifinished product (HALB)
Views Purchasing, MRP 1, MRP 2,
Accounting 1
Plant 1000
Description Halogen lamp 15W
Base unit of measure pc
Purchasing group Z##
Material group SCM520
MRP type ND
Planned delivery time 10 days
Valuation class 7900
Price control S
Standard price 20 EUR
2. 20 pc of material T-M520E## are needed in plant 1000. Create a purchase
requisition for this requirement. Ensure that the Source Determination indicator
is set. Assign the requirement tracking number SCM520 to the requisition item.
Continued on next page
2006/Q2 © 2006 SAP AG. All rights reserved. 135
Unit 3: Source Determination SCM520
Has a source of supply been assigned to the purchase requisition item?
_________________________________________________
_________________________________________________
Hint: Store the requirement tracking number SCM520 in the personal
settings for the purchase requisition.
3. Create a plant-specific info record with the following data:
Vendor T-K520A##
Material T-M520E##
Purchasing organization 1000
Plant 1000
Planned delivery time 8 days
Purchasing group Z##
Standard quantity 100
Net price 19 EUR per pc
4. A further 100 pc of material T-M520E## are needed in plant 1000. Create
a purchase requisition for this requirement too. Ensure that the Source
Determination indicator is set. Assign the requirement tracking number
SCM520 to the purchase requisition item.
Has a source of supply been assigned to the purchase requisition item?
_________________________________________________
_________________________________________________
5. Create a second info record with the following data:
Vendor T-K520B##
Material T-M520E##
Purchasing organization 1000
Plant 1000
Planned delivery time 7 days
Continued on next page
136 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Source List
Purchasing group Z##
Standard quantity 100
Net price 20 EUR per pc
6. A further 100 pc of material T-M520E## are needed in plant 1000. Create a
purchase requisition for this requirement. Ensure that the Source Determination
indicator is set. Assign the requirement tracking number SCM520 to the
requisition item.
Interpret the result of the automatic source determination process.
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
Assign the source with the lowest effective price to the item.
Task 2:
Automatic source determination with a source list.
1. Create a source list for your material T-M520E## for plant 1000. The validity
period of the source list records begins with today's date and ends on December
31 of next year. Enter vendors T-K520A## and T-K520B## as possible sources
for purchasing organization 1000 (see note). Define vendor T-K520B## as
the fixed source.
Hint: You can have generate source list records automatically via Edit
→ Generate Records. This function lists all the sources that exist
in the system.
2. To check your settings, create a further purchase requisition for material
T-M520E## in plant 1000. Another 100 pc are needed. Ensure that the
Source Determination indicator is set. Assign the requirement tracking number
SCM520 to the purchase requisition item.
Has a source of supply been assigned to the purchase requisition item?
_________________________________________________
_________________________________________________
Continued on next page
2006/Q2 © 2006 SAP AG. All rights reserved. 137
Unit 3: Source Determination SCM520
Task 3:
Optional: Automatic source determination during the requirements planning run.
1. Change the materials planning settings (MRP 1 and 2) for material T-M520E##
in plant 1000 as follows:
MRP type PD
MRP controller 001
MRP lot size ES
Procurement type F
Scheduling margin key 000
Safety stock 500
2. Carry out the planning run for material T-M520E## in plant 1000.
Hint: You should carry out single-level, single-item planning. Do not
carry out overall (total) planning (that is, planning for the entire plant
1000). Have purchase requisitions created during the planning run.
Subsequently display the generated procurement element in the
stock/requirements list.
Has a source of supply been assigned to the purchase requisition?
_________________________________________________
_________________________________________________
3. Change the relevant source list in such a way that the source corresponding to
vendor T-K520A## is flagged as MRP-relevant.
4. Carry out the planning run for material T-M520E## in plant 1000 again.
Hint: You should carry out single-level, single-item planning. Do not
carry out overall (total) planning (that is, planning for the entire plant
1000).
Have purchase requisitions generated during the planning run and change the
planning mode. You want the old planning data to be deleted, and new data
created.
Continued on next page
138 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Source List
Subsequently display the generated procurement element in the
stock/requirements list.
Has a source of supply been assigned to the purchase requisition?
_________________________________________________
_________________________________________________
2006/Q2 © 2006 SAP AG. All rights reserved. 139
Unit 3: Source Determination SCM520
Solution 6: Source List
Task 1:
Automatic source determination without a source list.
1. Create a new material master record with the following data:
Material number T-M520E##
Industry sector Mechanical engineering
Material type Semifinished product (HALB)
Views Purchasing, MRP 1, MRP 2,
Accounting 1
Plant 1000
Description Halogen lamp 15W
Base unit of measure pc
Purchasing group Z##
Material group SCM520
MRP type ND
Planned delivery time 10 days
Valuation class 7900
Price control S
Standard price 20 EUR
a) SAP Menu → Logistics → Materials Management → Material Master →
Material → Create (General) → Immediately
2. 20 pc of material T-M520E## are needed in plant 1000. Create a purchase
requisition for this requirement. Ensure that the Source Determination indicator
is set. Assign the requirement tracking number SCM520 to the requisition item.
Has a source of supply been assigned to the purchase requisition item?
_________________________________________________
Continued on next page
140 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Source List
_________________________________________________
Hint: Store the requirement tracking number SCM520 in the personal
settings for the purchase requisition.
a) SAP Menu → Logistics → Materials Management → Purchasing →
Purchase Requisition → Create
On the Source of Supply tab page, you can see that the system was unable
to determine a source.
b) Personal settings: To be able to populate the Purchasing Group and Plant
fields, you must adopt them in the selection options via More Fields.
3. Create a plant-specific info record with the following data:
Vendor T-K520A##
Material T-M520E##
Purchasing organization 1000
Plant 1000
Planned delivery time 8 days
Purchasing group Z##
Standard quantity 100
Net price 19 EUR per pc
a) SAP Menu → Logistics → Materials Management → Purchasing →
Master Data → Info Record → Create
4. A further 100 pc of material T-M520E## are needed in plant 1000. Create
a purchase requisition for this requirement too. Ensure that the Source
Determination indicator is set. Assign the requirement tracking number
SCM520 to the purchase requisition item.
Has a source of supply been assigned to the purchase requisition item?
_________________________________________________
Continued on next page
2006/Q2 © 2006 SAP AG. All rights reserved. 141
Unit 3: Source Determination SCM520
_________________________________________________
a) SAP Menu → Logistics → Materials Management → Purchasing →
Purchase Requisition → Create
On the Source of Supply tab page, it can be seen that the system has
assigned the info record for vendor T-K520A## to the item as the source.
5. Create a second info record with the following data:
Vendor T-K520B##
Material T-M520E##
Purchasing organization 1000
Plant 1000
Planned delivery time 7 days
Purchasing group Z##
Standard quantity 100
Net price 20 EUR per pc
a) SAP Menu → Logistics → Materials Management → Purchasing →
Master Data → Info Record → Create
6. A further 100 pc of material T-M520E## are needed in plant 1000. Create a
purchase requisition for this requirement. Ensure that the Source Determination
indicator is set. Assign the requirement tracking number SCM520 to the
requisition item.
Interpret the result of the automatic source determination process.
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
Continued on next page
142 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Source List
Assign the source with the lowest effective price to the item.
a) SAP Menu → Logistics → Materials Management → Purchasing →
Purchase Requisition → Create
The system branches to the Source of Supply tab page. The requester is
asked to choose one of the sources listed there. The system does not assign
a source of supply because there are several equally suitable sources.
Choose Price simulation all and display the effective prices.
From a price simulation, you see that the source corresponding to vendor
T-K520A## is the most favorable. Return to the requisition and assign this
source to the item.
Task 2:
Automatic source determination with a source list.
1. Create a source list for your material T-M520E## for plant 1000. The validity
period of the source list records begins with today's date and ends on December
31 of next year. Enter vendors T-K520A## and T-K520B## as possible sources
for purchasing organization 1000 (see note). Define vendor T-K520B## as
the fixed source.
Hint: You can have generate source list records automatically via Edit
→ Generate Records. This function lists all the sources that exist
in the system.
a) SAP Menu → Logistics → Materials Management → Purchasing →
Master Data → Source List → Maintain
Choose Edit → Generate Records to have the system list all valid sources.
Set the Fixed indicator for the source corresponding to vendor T-K520B##.
2. To check your settings, create a further purchase requisition for material
T-M520E## in plant 1000. Another 100 pc are needed. Ensure that the
Source Determination indicator is set. Assign the requirement tracking number
SCM520 to the purchase requisition item.
Has a source of supply been assigned to the purchase requisition item?
_________________________________________________
Continued on next page
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Unit 3: Source Determination SCM520
_________________________________________________
a) SAP Menu → Logistics → Materials Management → Purchasing →
Purchase Requisition → Create
The system has assigned the info record corresponding to vendor
T-K520B## to the item.
Task 3:
Optional: Automatic source determination during the requirements planning run.
1. Change the materials planning settings (MRP 1 and 2) for material T-M520E##
in plant 1000 as follows:
MRP type PD
MRP controller 001
MRP lot size ES
Procurement type F
Scheduling margin key 000
Safety stock 500
a) SAP Menu → Logistics → Materials Management → Material Master →
Material → Change → Immediately
2. Carry out the planning run for material T-M520E## in plant 1000.
Hint: You should carry out single-level, single-item planning. Do not
carry out overall (total) planning (that is, planning for the entire plant
1000). Have purchase requisitions created during the planning run.
Subsequently display the generated procurement element in the
stock/requirements list.
Has a source of supply been assigned to the purchase requisition?
_________________________________________________
Continued on next page
144 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Source List
_________________________________________________
a) SAP Menu → Logistics → Materials Management → Material
Requirements Planning (MRP) → MRP → Planning → Single-Item,
Single-Level
Change the presetting for the Create Purchase Requisition indicator to
1 (purchase requisitions) and carry out the planning run for material
T-M520E##.
b) SAP Menu → Logistics → Materials Management → Material
Requirements Planning (MRP) → MRP → Evaluations → Stock/Reqmts
List
Display the details of the purchase requisition generated as a result of the
planning (Details of Element). No source of supply has been assigned
to the purchase requisition item.
3. Change the relevant source list in such a way that the source corresponding to
vendor T-K520A## is flagged as MRP-relevant.
a) SAP Menu → Logistics → Materials Management → Purchasing →
Master Data → Source List → Maintain
Set the value of the MRP indicator (signifying use of source list in MRP)
for the source corresponding to vendor T-K520A## to 1.
4. Carry out the planning run for material T-M520E## in plant 1000 again.
Hint: You should carry out single-level, single-item planning. Do not
carry out overall (total) planning (that is, planning for the entire plant
1000).
Have purchase requisitions generated during the planning run and change the
planning mode. You want the old planning data to be deleted, and new data
created.
Subsequently display the generated procurement element in the
stock/requirements list.
Has a source of supply been assigned to the purchase requisition?
_________________________________________________
Continued on next page
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Unit 3: Source Determination SCM520
_________________________________________________
a) SAP Menu → Logistics → Materials Management → Material
Requirements Planning (MRP) → MRP → Planning → Single-Item,
Single-Level
Change the preset value of the Create Purchase Requisition indicator to 1
(purchase requisitions). Change the value of the Planning Mode indicator
to 3 (delete and recreate planning data), and carry out the planning run
for material T-M520E##.
b) SAP Menu → Logistics → Materials Management → Material
Requirements Planning (MRP) → MRP → Evaluations → Stock/Reqmts
List
Display the details of the purchase requisition generated as a result of
the planning. The source corresponding to vendor T-K520A## has been
assigned to the purchase requisition item.
146 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Source List
Lesson Summary
You should now be able to:
• Describe the various ways of creating source list records
• List the different uses of a source list
• Control the source determination process with the aid of the source list
2006/Q2 © 2006 SAP AG. All rights reserved. 147
Unit 3: Source Determination SCM520
Lesson: Quota Arrangement
Lesson Overview
A quota arrangement represents an additional source assignment option in the process
of automatic source determination. If a quota arrangement exists for a material, it
has the highest priority during source determination. This lesson describes how a
quota arrangement can be used when you create a purchase requisition, or during
the requirements planning run.
Lesson Objectives
After completing this lesson, you will be able to:
• Create the quota arrangement for a material
• Describe how the source determination process can be controlled with the aid of
the quota arrangement
Business Example
For some of your materials, there is more than one source of supply. Requirements for
these materials are to be apportioned in a fixed ratio among the various sources.
Functions of the Quota Arrangement
Like the source list, the quota arrangement facilitates the administration of sources
of supply at plant level. If you would like to procure a certain material from a
number of different sources within a certain time period, you can assign a quota to
each individual source.
The quota indicates which share of the requirements arising for the material over a
certain period is to be procured from which source.
If a valid quota arrangement exists for a material, it is taken into account during source
determination. A quota arrangement is valid for a specific period of time. A quota
arrangement item is created for each source during that period.
Caution: If a quota arrangement applies, this does not mean that the quantity
of a single manually created purchase requisition is automatically apportioned
among different sources. In such case, the entire requested quantity of the
requisition is assigned to one source - the source that is next in line to receive
the relevant order - in accordance with the quota arrangement. You can only
divide up a single requirement according to the quota in the planning run.
148 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Quota Arrangement
Figure 39: Quota Arrangement
To define a quota allocation procedure for the procurement of a material, proceed as
follows:
After having entered the material and plant numbers on the initial screen, specify, in
the header overview, the date until which the quota arrangement is valid. The start
date is always the current date or the follow-on date from the end of the previous
quota arrangement. Enter a quota arrangement item for each source that you wish to
define in the arrangement, as follows:
1. Specify the procurement type for each source (in-house production or external
procurement).
2. Where appropriate, specify the special procurement type (for example, stock
transfer).
3. Enter the vendor or supplying plant.
4. Specify the quota you want to assign to this source.
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Unit 3: Source Determination SCM520
The system calculates the percentage distribution of the requirements on the basis of
the quotas and updates the quota-allocated quantity following each assignment of
requirements effected on the basis of the quota arrangement.
In Customizing for quota arrangements, you define the number range for the quota
arrangement and specify whether the number is to be assigned internally (by the
system) or externally (through user input).
Create quota arrangement:
SAP Menu → Logistics → Materials Management → Purchasing → Master Data →
Quota Arrangement → Maintain
Specify number ranges for quota arrangement:
SAP Customizing Implementation Guide → Materials Management → Purchasing →
Quota Arrangement → Define Number Ranges
Before a quota arrangement can be maintained for a material, you must specify the
business applications for which the quota arrangement is to be used (for example,
in materials planning or in purchase requisitions). You make this specification in
the Quota Arrangement Usage field, which is to be found in the plant-specific
purchasing/materials planning data of the material master record.
150 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Quota Arrangement
Figure 40: Quota Arrangement Usage
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Unit 3: Source Determination SCM520
An entry in this field determines the areas in which the source determination
facility finds the appropriate source on the basis of the quota arrangement. The
quota-allocated quantity of the relevant quota arrangement item is updated from the
areas specified via this indicator. The following areas can be taken into consideration:
• Purchase requisitions
The source determination process is controlled via the quota arrangement and
the quantity requested for a material is included in the quota-allocated quantity.
• Purchase orders
The material quantity ordered during the validity period is included in the
quota-allocated quantity providing the purchase order was not generated with
reference to a requisition that drew on the quota arrangement.
• Scheduling agreement
The total quantity of the scheduling agreement delivery schedule lines for this
material goes into the quota-allocated quantity.
• Planned orders
The total quantity of all relevant assigned planned orders for this material
goes into the quota-allocated quantity. If the planned order is converted to a
requisition, the quantity-allocated amount is not updated a second time.
• Materials planning
Source determination on the basis of quota arrangements can also be used in
material requirements planning (MRP). Planned orders and purchase requisitions
generated in the planning run have a source assigned on a quota basis, and the
quota-allocated quantity is updated.
• Production order
The total quantity from all production orders for this material goes into the
quota-allocated quantity of a relevant quota arrangement item for in-house
production.
Permissible combinations of the areas listed are stipulated in Customizing and
combined to form keys for quota arrangement usage.
Set quota arrangement usage indicator:
SAP Customizing Implementation Guide → Materials Management → Purchasing →
Quota Arrangement → Define Quota Arrangement Usage
152 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Quota Arrangement
In the case of sources for which you have specified a quota in the current validity
period, the system calculates which source is used next for a requirement. This
calculation is carried out by the system during the source determination process for a
requested material.
Figure 41: Source Determination
The system calculates a quota rating for each of the sources. The quota rating is
calculated as follows:
Quota rating = (quota-allocated quantity + quota base quantity / quota
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Unit 3: Source Determination SCM520
The individual values are as follows:
• Quota-allocated quantity
Total quantity of all requirements included in the quota-allocated quantity
according to the quota arrangement usage indicator in the material master record.
The quota-allocated quantity is updated automatically.
• Quota base quantity
Quantity used for manual control of the quota arrangement (for example, when
new sources are included).
• Quota
Number that determines how requirements are apportioned among the various
sources.
The current quota rating is not displayed in the quota arrangement.
In the source determination process, the source with the lowest quota rating is always
assigned.
The quota base quantity can be used on the one hand when a new source is included
in an already existing quota arrangement and on the other to remedy a disproportion
between quota and quota-allocated quantity. You can use the quota base quantity to
prevent the new source from being assigned all requirements (for example, in the form
of requisitions or purchase orders) until such time as its quota-allocated quantity
exceeds that of one of the existing sources. This is achieved due to the fact that the
quota base quantity acts as an additional quota-allocated quantity in the calculation
of the quota rating.
Use of the quota base quantity - example:
You include a new vendor in an already existing quota arrangement. The existing
quota arrangement consists of two vendors, who are each assigned 50% of the material
requirements that arise. Each of these vendors has a high quota-allocated quantity
because your company has already ordered a lot of material from them during the
validity period of the quota arrangement.
The new vendor is to be assigned the same share of forthcoming requirements as the
other two. However, according to the formula for calculating the quota rating, all
requirements will be allocated to the new vendor until such time as his quota rating
exceeds that of one of the other two vendors.
If the purchase requisitions are to be immediately assigned evenly, as if the new
vendor had always been a party to the quota arrangement, you must define the quota
base quantity for the new vendor appropriately, or have it determined by the system.
154 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Quota Arrangement
The system provides the following procedures for determining the quota base quantity:
• Individual calculation
Calculates the quota base quantity for the selected quota arrangement items.
Select the items whose quota base quantity is to be recalculated and choose Edit
→ Base Quantities → Individual Calculation.
• Collective calculation
Calculates the quota base quantity for all quota arrangement items. Use this
procedure if the allocation of requirements that arise for a material under a quota
arrangement is to be based on the starting situation again, in which all sources
have the same quota rating. Choose Edit → Base Quantities → Collective
Calculation.
Calculation of quota rating - example:
You create a purchase requisition for a material (100 pc) for which the source
determination process in the requisition is regulated on the basis of a quota
arrangement. The following table shows the current situation with regard to the quota
arrangement at the time of source determination:
Vendor Quota Quota-allocated Quota base quantity
quantity
A 3 780 0
B 2 380 0
C 1 0 260
In accordance with the formula mentioned earlier, the quota ratings for vendors A,
B, and C are as follows:
Vendor Quota rating
A (780 + 0) / 3 = 260
B (380 + 0) / 2 = 190
C (0 + 260) / 1 = 260
This means that the source representing vendor B is will be assigned to the requisition
item because this vendor has the lowest quota rating.
After the requisition has been saved, the situation regarding the quota arrangement
is as follows:
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Unit 3: Source Determination SCM520
Vendor Quota Quota-allocated Quota base quantity
quantity
A 3 780 0
B 2 480 0
C 1 0 260
Quota Arrangement in Material Requirements Planning
In contrast to source assignment via quota arrangement, when creating a purchase
requisition manually, you can split up an individual requirement among the various
sources in the quota arrangement in the planning run based on the quota.
Figure 42: Requirement Splitting
156 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Quota Arrangement
You control whether a requirement is split or not using the assigned lot-sizing
procedure and the minimum split quantity in the quota arrangement header. The
indicator for the splitting quota must have been assigned to the lot-sizing procedure
with which the material is planned (in Customizing). In the case of the lot size ES
(exact lot size calculation with splitting), for example, the Splitting indicator is set.
Example of requirement splitting in materials planning:
The starting situation is as follows: There is a requirement for 1000 pc of a certain
material in whose master record the lot size ES (exact lot size calculation with
splitting) has been set. All vendors have the quotas contained in the following table at
their disposal:
Vendor Quota Quota-allocated quantity
A 4 420
B 3 310
C 2 190
D 1 100
In requirements planning, four purchase requisitions are generated, the requirement
of 1000 pc being apportioned among the four sources in the proportion 4:3:2:1. In
the case of a quota arrangement with splitting, the quota-allocated quantity and quota
rating are both irrelevant. This results in the following situation after the quota
arrangement:
Vendor Quota Quota-allocated quantity
A 4 820
B 3 610
C 2 390
D 1 200
To prevent the system from splitting up a requirement that is too small in the course
of a planning run, you can specify a minimum quantity for splitting. The minimum
quantity defines the lowest quantity that a lot must have before it can be split up
among several sources during the requirements planning run.
If the lot is smaller than the minimum quantity, the usual quota arrangement logic
applies.
Example of requirement splitting with minimum splitting quantity:
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Unit 3: Source Determination SCM520
For quota arrangement maintenance for a material with the number M-01, a minimum
splitting quantity of 1200 is set. If there is a requirement of 1000 pc, in the course
of a planning run for material M-01, this requirement will be converted into a single
procurement element. Since the requirement falls below the minimum splitting
quantity, no splitting takes place and the source with the lowest quota rating is
determined by the system as the source for the procurement element.
Define lot-sizing procedure:
SAP Customizing IMG → Materials Management → Consumption-Based Planning
→ Planning → Lot-Size Calculation → Define Lot-Sizing Procedure
When maintaining a quota arrangement, you can also specify a minimum or maximum
lot size for each item of the arrangement. However, the specified lot sizes are only
taken into account in the case of requisitions and planned orders that are generated
automatically (that is, via the MRP system). The lot size specified in the quota
arrangement item overrides the settings in the material master record.
Figure 43: Lot Sizes
158 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Quota Arrangement
• Maximum lot size per quota arrangement item
Maximum lot size is the maximum quantity that may be assigned to a source for
each procurement proposal in the requirements planning run. If the requirement
quantity exceeds the maximum lot size, another quota-allocation process takes
place for the residual quantity. It may then happen that, due to a low quota rating,
the same source is reselected and a second procurement proposal generated
for it. To prevent this, you can set the 1x indicator. If this indicator is set, a
source is not taken into account for more than one lot with a quantity equal to
the maximum lot size for each requirement. The remaining quantity is then
allocated to the remaining sources.
• Minimum lot size per quota arrangement item
Minimum lot size is the minimum PO quantity that may be assigned to a
source for each procurement proposal in the requirements planning run. If the
requirement quantity is less than the minimum lot size, the minimum lot size for
the source is set for the lot.
Example of maximum lot size with 1x indicator:
There is a requirement for 500 pc of a certain material. The starting situation is as
shown in the following table:
Vendor Quota Quota-allocated Max. lot size 1x
quantity
A 3 100 250 x
B 1 200
As the 1x indicator has been set, a planning run will generate a procurement proposal
for 250 pieces with vendor A as the source and a procurement proposal for 250 pieces
with vendor B as the source.
If the 1x indicator is not set, the planning run will generate two procurement proposals
for 250 pieces with vendor A as the source.
In addition to a minimum and/or maximum lot size, you can also specify a maximum
quantity in a quota arrangement item. The maximum quantity is taken into account
in both the manual creation of purchase requisitions and the automatic generation of
procurement proposals in material requirements planning.
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Unit 3: Source Determination SCM520
The maximum quantity acts as a limit value for the quota-allocated quantity for a
source. A quota arrangement item is not suggested as the source if the quota-allocated
quantity is - or would become - greater than or equal to the maximum quantity.
Figure 44: Maximum Quantity
Example of maximum quantity
There is a requirement for 800 pc of material M-01. The quota arrangement has been
maintained in the system according to the following table:
Vendor Quota Quota-allocated Max. quantity
quantity
A 1 1500 2000
B 2 3800
With this starting situation, a planning run would result in the generation of one
procurement proposal for 800 pc with vendor B as the source. Although vendor A has
a lower quota rating than vendor B, the maximum quantity would be exceeded if the
procurement proposal were to be assigned to vendor A due to the quota quantity of
1500 pc already allocated.
160 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Quota Arrangement
If the maximum quantity were not 2000 but 2500 pc, the system would assign vendor
A as the source.
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Unit 3: Source Determination SCM520
162 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Quota Arrangement
Exercise 7: Quota Arrangement
Exercise Objectives
After completing this exercise, you will be able to:
• Create and administer a quota arrangement
Business Example
You administer some sources of supply with the aid of quota arrangements.
Task 1:
Automatic source determination with a quota arrangement.
1. Change the master record for material T-M520E## in plant 1000. Set the Quota
Arrangement Usage indicator to 3 in the Purchasing view.
2. Create a quota arrangement for material T-M520E## in plant 1000. The quota
arrangement is to be valid until the end of next year. Assign the quota 2 to your
vendor T-K520A## and the quota 1 to your second vendor T-K520B##. The
quota arrangement is to be valid for external procurement.
3. Create another purchase requisition with two items. a) 50 pc and b) 20 pc
of material T-M520E## are required in plant 1000. Ensure that the Source
Determination indicator is set. Assign the requirement tracking number
SCM520 to the purchase requisition items.
Did the system assign a source to the first item? If so, which one?
_________________________________________________
_________________________________________________
Did the system assign a source to the second item? If so, which one, and why
was this particular source assigned?
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
4. Display the quota arrangement for the material. What is the quota-allocated
quantity for the two vendors?
Continued on next page
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Unit 3: Source Determination SCM520
Vendor T-K520A##:
_________________________________________________
_________________________________________________
Vendor T-K520B##:
_________________________________________________
_________________________________________________
Task 2:
Automatic source determination with a quota arrangement in the requirements
planning run.
1. Change the materials planning settings (MRP 1 and 2) for material T-M520E##
in plant 1000 as follows:
Hint: If you have carried out the optional task 3, step 1, from exercise
6 (source list), the MRP data shown in the following table will have
already been created.
MRP type PD
MRP controller 001
MRP lot size ES
Procurement type F
Scheduling margin key 000
Safety stock 500
2. Carry out the planning run for material T-M520E## in plant 1000.
Hint: You should carry out single-level, single-item planning. Do not
carry out overall (total) planning (that is, planning for the entire plant
1000). Have purchase requisitions created during the planning run.
Display the result in the stock/requirements list.
Have new procurement elements been generated? If so, have sources been
assigned?
Continued on next page
164 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Quota Arrangement
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
Task 3:
Optional: Stock transfer using a quota arrangement.
1. Copy the views created for material T-M520E## and plant 1000 (Purchasing,
MRP 1, MRP 2, Accounting 1) for plant 1100. In doing so, change the settings
for MRP (MRP 2) as follows:
Procurement type E
In-house production time 8
2. Material T-M520E## is manufactured in plant 1100. 50 % of the quantity of
this material required in plant 1000 can be covered by transferring stock from
plant 1100. To trigger the transfer of material from plant 1100, a requisition with
the item category U (stock transfer) is to be generated during the requirements
planning run. Procurement type F is used in the quota arrangement for this
process too. The special procurement type U and the procurement (=supplying)
plant 1100 (field BWK) must be added to the new item. Change the quota
arrangement created for plant 1000 accordingly.
Which quota must be assigned to plant 1100?
3. Test your settings by carrying out another requirements planning run for material
T-M520E## in plant 1000 and then displaying the stock/requirements list.
Have purchase requisitions generated during the planning run and change the
planning mode. You want the old planning data to be deleted and new data
created.
2006/Q2 © 2006 SAP AG. All rights reserved. 165
Unit 3: Source Determination SCM520
Solution 7: Quota Arrangement
Task 1:
Automatic source determination with a quota arrangement.
1. Change the master record for material T-M520E## in plant 1000. Set the Quota
Arrangement Usage indicator to 3 in the Purchasing view.
a) SAP Menu → Logistics → Materials Management → Material Master →
Material → Change → Immediately
2. Create a quota arrangement for material T-M520E## in plant 1000. The quota
arrangement is to be valid until the end of next year. Assign the quota 2 to your
vendor T-K520A## and the quota 1 to your second vendor T-K520B##. The
quota arrangement is to be valid for external procurement.
a) SAP Menu → Logistics → Materials Management → Purchasing →
Master Data → Quota Arrangement → Maintain.
Enter the material and plant, then press Enter. Enter the valid-to date on
the header screen for the quota arrangement, then choose Goto → Item
Overview. Enter procurement type F for external procurement, the vendor,
and the relevant quotas.
3. Create another purchase requisition with two items. a) 50 pc and b) 20 pc
of material T-M520E## are required in plant 1000. Ensure that the Source
Determination indicator is set. Assign the requirement tracking number
SCM520 to the purchase requisition items.
Did the system assign a source to the first item? If so, which one?
_________________________________________________
_________________________________________________
Did the system assign a source to the second item? If so, which one, and why
was this particular source assigned?
_________________________________________________
_________________________________________________
_________________________________________________
Continued on next page
166 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Quota Arrangement
_________________________________________________
a) SAP Menu → Logistics → Materials Management → Purchasing →
Purchase Requisition → Create
b) The info record for vendor T-K520A## is assigned to the first item.
c) The info record for vendor T-K520B# is assigned to the second item. The
source assignment is based on the quota arrangement set up for material
T-M520E##. After the first item has been created, the quota-allocated
quantity for vendor T-K520A## increases to 50 pc. The quota rating
for vendor T-K520A## now amounts to 25. Since the quota-allocated
quantity (and thus also the quota rating) for vendor T-K520B## prior to the
creation of the second item is still 0, the source corresponding to vendor
T-K520B## is assigned.
4. Display the quota arrangement for the material. What is the quota-allocated
quantity for the two vendors?
Vendor T-K520A##:
_________________________________________________
_________________________________________________
Vendor T-K520B##:
_________________________________________________
_________________________________________________
a) SAP Menu → Logistics → Materials Management → Purchasing →
Master Data → Quota Arrangement → Display.
Select the relevant line in the overview and choose Goto → Item Overview.
The quota-allocated quantities are 50 pc for vendor T-K520A## and 20
pc for vendor T-K520B## .
Continued on next page
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Unit 3: Source Determination SCM520
Task 2:
Automatic source determination with a quota arrangement in the requirements
planning run.
1. Change the materials planning settings (MRP 1 and 2) for material T-M520E##
in plant 1000 as follows:
Hint: If you have carried out the optional task 3, step 1, from exercise
6 (source list), the MRP data shown in the following table will have
already been created.
MRP type PD
MRP controller 001
MRP lot size ES
Procurement type F
Scheduling margin key 000
Safety stock 500
a) SAP Menu → Logistics → Materials Management → Material Master →
Material → Change → Immediately
2. Carry out the planning run for material T-M520E## in plant 1000.
Hint: You should carry out single-level, single-item planning. Do not
carry out overall (total) planning (that is, planning for the entire plant
1000). Have purchase requisitions created during the planning run.
Display the result in the stock/requirements list.
Have new procurement elements been generated? If so, have sources been
assigned?
_________________________________________________
_________________________________________________
_________________________________________________
Continued on next page
168 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Quota Arrangement
_________________________________________________
a) SAP Menu → Logistics → Materials Management → Material
Requirements Planning (MRP) → MRP → Planning → Single-Item,
Single-Level
Change the preset value of the Create Purchase Requisition indicator to
1 (purchase requisitions). Also change the value of the Planning Mode
indicator to 3 (delete and recreate planning data), and carry out the
planning run for material T-M520E##.
b) SAP Menu → Logistics → Materials Management → Material
Requirements Planning (MRP) → MRP → Evaluations → Stock/Reqmts
List
Two purchase requisitions have been generated.
If you display the details for the requisitions that have been generated
via the planning process, you can see that vendor T-K520A## has been
assigned to one of the requisition items and vendor T-K520B## to the
other (Quantity= 36 pieces). The requirement has been split according to
the predefined quotas in the ratio 2:1 because an MRP lot lize with splitting
has been defined in the MRP data of the material master record.
Hint: Note the requisitions not fixed in the stock/requirements list.
These were generated in the planning run. The fixed purchase
requisitions are from past exercises and were created manually.
Task 3:
Optional: Stock transfer using a quota arrangement.
1. Copy the views created for material T-M520E## and plant 1000 (Purchasing,
MRP 1, MRP 2, Accounting 1) for plant 1100. In doing so, change the settings
for MRP (MRP 2) as follows:
Procurement type E
In-house production time 8
a) SAP Menu → Logistics → Materials Management → Material Master
→ Material → Create General → Immediately
Continued on next page
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Unit 3: Source Determination SCM520
2. Material T-M520E## is manufactured in plant 1100. 50 % of the quantity of
this material required in plant 1000 can be covered by transferring stock from
plant 1100. To trigger the transfer of material from plant 1100, a requisition with
the item category U (stock transfer) is to be generated during the requirements
planning run. Procurement type F is used in the quota arrangement for this
process too. The special procurement type U and the procurement (=supplying)
plant 1100 (field BWK) must be added to the new item. Change the quota
arrangement created for plant 1000 accordingly.
Which quota must be assigned to plant 1100?
a) SAP Menu → Logistics → Materials Management → Purchasing →
Master Data → Quota Arrangement → Maintain.
Enter the material and plant, then press Enter. Choose Goto → Item
Overview and add a third quota arrangement item. Enter procurement type
F, special procurement type U, and supplying plant 1100 (field PPl).
In order for 50 % of the requirement to be covered by transfer from plant
1100, the quota 3 (= total of other quotas) must be assigned to plant 1100.
3. Test your settings by carrying out another requirements planning run for material
T-M520E## in plant 1000 and then displaying the stock/requirements list.
Have purchase requisitions generated during the planning run and change the
planning mode. You want the old planning data to be deleted and new data
created.
a) SAP Menu → Logistics → Materials Management → Material
Requirements Planning (MRP) → MRP → Planning → Single-Item,
Single-Level
Change the preset value of the Create Purchase Requisition indicator to
1 (purchase requisitions). Also change the value of the Planning Mode
indicator to 3 (delete and recreate planning data), and carry out the
planning run for material T-M520E##.
b) SAP Menu → Logistics → Materials Management → Material
Requirements Planning (MRP) → MRP → Evaluations → Stock/Reqmts
List
Three requisitions with different sources have been generated. Take a
look at the details for the purchase requisitions generated as a result of the
planning. To do this click the Vendor button. Plant 1100 has been assigned
to one requisition item (Quantity= 55 pieces) as the supplying plant. The
requisition item was generated with item category U.
170 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Quota Arrangement
Lesson Summary
You should now be able to:
• Create the quota arrangement for a material
• Describe how the source determination process can be controlled with the aid of
the quota arrangement
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Unit 3: Source Determination SCM520
Lesson: Further Aspects of Source Determination
Lesson Overview
This lesson will give you an insight into the contexts and priorities of source
determination. You will see that the source determination process that takes place
at the time of the requirements planning run differs from the process that takes
place without materials planning. You will also become acquainted with source
determination for material groups.
Sources of supply can also be blocked in a variety of ways. This unit will teach you
the different ways to block sources.
You will also learn how the regular vendor is used. The regular vendor is an
alternative to using the source list.
Lesson Objectives
After completing this lesson, you will be able to:
• Describe how the automatic source determination process works when purchase
requisitions are assigned manually
• Describe how the automatic source determination process works in the
requirements planning run
• List the options for blocking sources of supply for procurement purposes
Business Example
In your enterprise, the automatic source determination process is controlled with the
aid of source lists and quota arrangements. For just a few materials, you use the
regular vendor to avoid having to create source lists.
Priorities in Source Determination
The flow logic in automatic source determination at the time of the planning run
differs from that in source determination during the manual processing of requisitions.
172 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Further Aspects of Source Determination
Figure 45: Source Determination at Time of Planning Run
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Unit 3: Source Determination SCM520
During the requirements planning run, the source determination process is carried out
in the background. Possible sources are determined by the system during requirements
planning according to the following priorities:
1. Quota arrangement
If a quota arrangement exists for the material, this has the highest priority. You
can only enter vendors and plants in the quota arrangement but no outline
agreements like with the source list. If contracts and scheduling agreements are to
be found as sources, these must be entered in the source list with MRP indicator
1 (MRP-relevant record) or 2 (MRP-relevant record, automatic SA delivery
schedules). If, in the info records, you have entered different delivery times and
minimum order quantities than in the material master record, you should also
maintain MRP-relevant source list entries for the materials concerned.
Source determination takes place according to the settings and rules of the quota
arrangement.
2. Source list
If there is no quota arrangement, the system checks the existing source list
entries for which the MRP indicator 1 or 2 has been set. If the indicator is set for
more than one item, the system takes the first item with an MRP indicator.
For materials for which neither a quota arrangement nor a source list have been
created in the planned plant, procurement proposals are generated without a source.
174 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Further Aspects of Source Determination
Figure 46: Automatic Source Determination
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Unit 3: Source Determination SCM520
Determination of possible sources for a requested material is based on the following
flow logic:
1. Quota Arrangement
The system first checks whether there is a quota arrangement for the material
whose validity period covers the delivery date in the purchase requisition.
If there is a quota arrangement, the system calculates according to the quotas
specified for the source from which the material is to be procured and then
suggests the source.
If there is a valid quota arrangement for a material, the automatic source
determination process always comes up with a unique source assignment.
2. Source List
If there is no valid quota arrangement, the system checks whether there is an
entry in the source list for the material in the relevant plant. The validity period
of the source list entry must cover the delivery date in the requisition. The entry
may take the form of either an info record or an outline agreement (contract or
scheduling agreement).
If the source list contains a unique source, this source is assigned to the purchase
requisition. The source is unique if the Fixed indicator has been set for this
source in the source list, or if the source list contains only one entry. If both an
outline agreement item and an info record are marked as fixed source, the outline
agreement item has higher priority and is thus assigned.
If several sources are found and none of these are marked as a fixed source, a
list will appear from which you can select a source.
3. Outline agreement item and info record
If there is neither a quota arrangement nor a source list, the system searches for
valid outline agreement items and info records. If the source determination
process is already triggered in the requisition header, a unique outline agreement
item or a unique info record is assigned directly. Unique here means here that
there is only one valid outline contract item or one valid info record.
Outline agreement items have a higher priority than info records in this process.
If the source determination process is triggered per item, all valid sources that
exist in the system are offered for selection.
Source Determination: Further Functions
When a requisition is created or changed, an automatic source determination process
can also be carried out for a material without a master record.
176 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Further Aspects of Source Determination
Figure 47: Source Determination for Material Group
The system is able to find sources for a material without a master record if there
is an outline agreement item or an info record for the relevant material group. In
such case, the material group of the outline agreement item or info record must be
identical to the material group of the requested material. The system also checks to
see whether the order units are identical.
If an outline agreement item exists for the material group, it takes priority over an info
record for the material group.
Source Determination in Purchase Orders
It is possible that no purchase requisition has been entered in the system for a
requirement and the procurement process is to commence directly with a PO. This
may be the case, for example, if the requirement has been notified to Purchasing by
'phone and the buyer wishes to create a purchase order immediately, without knowing
the vendor at this stage. You can also use the source determination facility in this case.
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Unit 3: Source Determination SCM520
Figure 48: Create Purchase Order with Source Determination
As in the case of requisitions, the system suggests possible sources of a material for
the purchase order on the basis of existing quota arrangements, source list records,
outline agreements and/or info records. If no source exists, or if none of the existing
sources is assigned, the document can be saved as a requisition.
The Create Purchase Order, Vendor Unknown function represents a combination of
the functions Create Purchase Requisition and Create Purchase Order.
178 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Further Aspects of Source Determination
To create a purchase order with source determination, proceed as follows:
1. On the initial screen, make entries in all mandatory fields (for example,
purchasing group and order date).
If the source determination process is to be carried out automatically for each
item, select the Source Determination field.
2. Enter the item data of the requested materials in the item overview. You can also
adopt items from a requisition by choosing Purchase Order → Copy Requisition.
If you have not selected automatic source determination on the initial screen,
select the items to which a source is to be assigned.
3. Choose Edit → Assign Source
The system suggests potential sources for the material.
If the source determination process produces a unique result on the basis of the
flow logic discussed, the source is automatically assigned to the item. You can
see which source has been assigned in this case by displaying the detail screen
for the item.
If there is more than one potential source, a dialog box containing a list of the
possible sources appears. Either choose a source or close the box if you do not
wish to select any of the sources offered.
You can carry out a price simulation to help you make a decision. The system
calculates the relevant net or effective price per source for the quantity to be
ordered.
4. Select the assigned items for which you wish to generate POs and choose Edit
→ Generate Purchase Order.
All items not converted into PO items can be saved as requisitions, so that
already entered data is not lost. To save unconverted items as requisitions, select
the relevant item and choose Purchase Order → Save as Requisition. Assigned
items that cannot be converted into POs because they are subject to a release
procedure, for instance, can likewise be saved as requisition items.
5. If the selected items are procured from several vendors, an overview is displayed
for selection purposes. Position the cursor on a vendor and click Choose to
generate the PO. The system consolidates the items for the chosen vendor and
generates a purchase order.
Create purchase order with automatic source determination:
SAP Menu → Logistics → Materials Management → Purchasing → Purchase Order
→ Create → Vendor Unknown
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Unit 3: Source Determination SCM520
Procurement with Catalog
As of mySAP ERP 2005 you have the possibility of connecting a catalog to the Enjoy
transactions in purchase requisitions and purchase orders.
The components for the creation and administration of electronic catalogs , SAP
Catalog Content Management, is included in the scope of supply for both the
mySAP SRM and mySAP ERP2005 applications.
Catalogs from other suppliers can also be connected.
Figure 49: Procurement in ERP with Catalog
After calling the catalog, you can select the material that you wish to request or order.
If you subsequently place items in the shopping cart, these are automatically applied
in the purchase requisition or purchase order.
Hint: You can find detailed information on creating a shopping cart in the
chapter on external procurement with mySAP ERP and mySAP Business
Suite.
Establishing a connection to catalogs:
SAP Customizing Implementation Guide → Materials Management → Purchasing →
Environment Data → Web Services: ID and Description
180 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Further Aspects of Source Determination
If more than one catalog is connected, you can choose the required catalog from a list.
The Regular Vendor
You use the Regular Vendor indicator in the info record to specify that a material is to
be procured client-wide from this vendor. The regular vendor is thus comparable with
the fixed vendor that can be specified in the source list for the lower organizational
level plant.
You should use the regular vendor only if you have nothing other than info records
stored in the system for a material and if you prefer not to create a source list to control
the source determination process.
Figure 50: Regular Vendor
You set the indicator for the regular vendor in the general data of the info record. In
order for the regular vendor to be pulled during source determination, regular vendor
usage must be activated in Customizing for the relevant plant.
If the indicator has been set in the info record and the appropriate Customizing setting
has been made, the regular vendor is proposed as the only source.
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Unit 3: Source Determination SCM520
The indicator can only be set in one info record for each material. If you set this in
another info record, you will receive a warning. The indicator will be deleted in the
other info record if you acknowledge this.
Hint: In requirements planning, the regular vendor is only taken into account
if a retail system is involved.
Activate regular vendor per plant:
SAP Customizing Implementation Guide → Materials Management → Purchasing →
Source Determination → Define Regular Vendor
Blocking Vendors and Source List Entries
In some cases, you may wish to prevent goods from continuing to be procured from a
particular vendor (maybe because the latter has recently supplied products of deficient
quality). The vendor master record allows you to block purchases from such vendors.
Figure 51: Blocking Vendors
182 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Further Aspects of Source Determination
You can block a vendor master record either for all purchasing organizations or for the
purchasing organization selected on the initial screen of the transaction only.
As soon as you set the blocking indicator for a vendor, it is not possible to create any
more POs for that vendor. Neither can you create any RFQs, outline agreements,
quota arrangement records, or source list entries for the blocked vendor. Assigning
an info record or an outline agreement as a source in a requisition is likewise no
longer possible.
The block applies until you remove the blocking indicator.
Block vendor:
Purchasing → Master Data → Vendor → Purchasing → Block
or
Purchasing → Master Data → Vendor → Central → Block
Using the first menu path, you can only block a vendor master record with regard to
purchasing. The second path enables you to impose not only a purchasing block
but also a posting block. The posting block means that no postings can be made to
the creditor account either (1) in any company code, or (2) for the company code
entered in the initial screen. Any attempt to post to this account will cause the system
to generate an error message.
You can also block a vendor from within vendor master account maintenance via
Extras → Blocked Data.
Hint: When you block a vendor, you will receive a warning message from the
system if documents are still open for this vendor. You should pay special
attention to this as you can still enter goods receipts for and undertake changes
to the open documents, but you will not be able to create any invoices if
there is posting block.
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Unit 3: Source Determination SCM520
Figure 52: Blocking Sources of Supply in Source List
184 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Further Aspects of Source Determination
If you set the blocking indicator for a source list entry, the source represented by that
entry can no longer be used in purchasing documents. A distinction is made between
the following cases:
• Blocking a source list line with contract number
If you set the blocking indicator in a source list line with a contract number, you
cannot then create a release order against that contract. However, you could
order the material without reference to the contract.
A blocked source is not suggested during the source determination process in a
requisition or PO. A contract that is blocked in the source list cannot be used
as a source of supply. A corresponding quota arrangement item is likewise no
longer considered if no parallel info record exists.
• Blocking a source list line without contract number
If you set the blocking indicator in a source list line without a contract number
(meaning the source in question is an info record), the consequences are more
far-reaching than if a source list line with a contract number is blocked. In this
case, it is generally not possible to order the relevant material from the vendor
concerned - either with or without reference to an existing contract. During the
source determination process in a purchase requisition, neither an info record nor
a contract is proposed for the blocked combination of material and vendor. An
existing quota arrangement item is no longer taken into account in this case either.
Hint: If you set the blocking indicator and enter just a validity period, the
material is generally blocked from being procured in this plant.
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Unit 3: Source Determination SCM520
186 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Further Aspects of Source Determination
Exercise 8: Further Aspects of Source
Determination
Exercise Objectives
After completing this exercise, you will be able to:
• Reproduce the source determination process
Business Example
In your enterprise, requirements arising in individual user departments are recorded
manually. In the case of certain materials, a source determination process takes place,
which purchasing controls via source lists and quota arrangements.
Task 1:
Analyze priorities in source determination.
1. You need the following materials for plant 1000:
Material Quantity
T-M520A## 50 pc
T-M520B## 80 pc
T-M520D## 100 pc
T-M520E## 50 pc
Create an appropriate purchase requisition and ensure that the Source
Determination indicator is set in the requisition header.
What is the result of the source determination process for the individual items?
Enter the assigned sources and a short reason for the assignment in the following
table:
Continued on next page
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Unit 3: Source Determination SCM520
Material Quantity Vendor Reason for
assignment
T-M520A## 50 pc
T-M520B## 80 pc
T-M520D## 100 pc
T-M520E## 50 pc
2. More materials are needed for plant 1000. Create an appropriate purchase
requisition and ensure that the Source Determination indicator is set.
Use account assignment category K for all items and assign the purchase to G/L
account 400000 and cost center 1000.
Hint: When you enter the account assignment data for the first item,
activate the repeat account assignment facility (Repeat On).
Material Further data
T-M520C## 10 boxes, 10 EUR per box
Propelling pencils, 0.7mm 5 boxes (BOX), material group ZT##,
purchasing group Z##, 9 EUR per box
Packing boxes size 4 10 pc, material group 008, purchasing
group Z##, 1 EUR per pc
Lubricating oil 50 liters (L), material group 010,
purchasing group Z##, 5 EUR per liter
What is the result of the source determination process for the individual items?
Assign the source to items 30 and 40 of the requisition you have created. Enter
the assigned sources and a short reason for the assignment in the following table:
Material Vendor Reason for assignment
T-M520C##
Propelling pencils,
0.7mm
Packing boxes size 4
Lubricating oil
Continued on next page
188 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Further Aspects of Source Determination
Now select the contract with your vendor T-K520B## for the third item.
Task 2:
Block source of supply.
1. Create a source list for material T-M520C## in plant 1000. There is at least one
source of supply (info record for vendor T-K520A##) in the system. Enter this
source in the source list via Edit → Generate Records and adopt the suggested
validity period. Block the vendor from being assigned as the source for the
procurement of material T-M520C## by setting the Blocked indicator.
Hint: Set the Blocked indicator for any other sources of supply for
material T-M520C## that may exist in the system.
2. Test your setting by attempting to create a purchase order for vendor T-K520A##.
Which system message do you get? Can you nevertheless save the document?
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
Task 3:
Purchase order with source determination.
1. You are informed by telephone of the following requirement for cost center
1000 in plant 1000:
Material Further data
T-M520C## 10 boxes, 10 EUR per box
T-M520B## 20 pc
Steel bolts, M 4x15 100 pc, material group 009, 0.25 EUR
per pc
The materials are needed in two weeks.
Continued on next page
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Unit 3: Source Determination SCM520
You wish to record the requirement in the system, carry out an automatic source
determination process, and (if this process is successful) immediately generate a
purchase order to cover the requirement. You wish to save items to which no
sources could be assigned as purchase requisitions.
Create a purchase order with source determination.
How do you ensure that the source is automatically determined after the item
data is entered and, if possible, directly assigned to the item?
_________________________________________________
_________________________________________________
2. Unset the Blocking Indicator in the source list for material T-M520C## and
plant 1000 for vendor T-K520A##.
190 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Further Aspects of Source Determination
Solution 8: Further Aspects of Source
Determination
Task 1:
Analyze priorities in source determination.
1. You need the following materials for plant 1000:
Material Quantity
T-M520A## 50 pc
T-M520B## 80 pc
T-M520D## 100 pc
T-M520E## 50 pc
Create an appropriate purchase requisition and ensure that the Source
Determination indicator is set in the requisition header.
What is the result of the source determination process for the individual items?
Enter the assigned sources and a short reason for the assignment in the following
table:
Continued on next page
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Unit 3: Source Determination SCM520
Material Quantity Vendor Reason for
assignment
T-M520A## 50 pc
T-M520B## 80 pc
T-M520D## 100 pc
T-M520E## 50 pc
a) SAP Menu → Logistics → Materials Management → Purchasing →
Purchase Requisition → Create
The source assigned in each case is shown on the Source of Supply tab page.
The solution to the task can vary depending on which data you have
created in the system.
Material Quantity Vendor Reason for
assignment
T-M520A## 50 pc T-K520A## Sole info record
(info record)
T-M520B## 80 pc T-K520B## Sole outline
(contract) agreement
T-M520D## 100 pc T-K520B## Sole outline
(scheduling agreement
agreement)
T-M520E## 50 pc T-K520B## Quota
arrangement
2. More materials are needed for plant 1000. Create an appropriate purchase
requisition and ensure that the Source Determination indicator is set.
Use account assignment category K for all items and assign the purchase to G/L
account 400000 and cost center 1000.
Hint: When you enter the account assignment data for the first item,
activate the repeat account assignment facility (Repeat On).
Continued on next page
192 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Further Aspects of Source Determination
Material Further data
T-M520C## 10 boxes, 10 EUR per box
Propelling pencils, 0.7mm 5 boxes (BOX), material group ZT##,
purchasing group Z##, 9 EUR per box
Packing boxes size 4 10 pc, material group 008, purchasing
group Z##, 1 EUR per pc
Lubricating oil 50 liters (L), material group 010,
purchasing group Z##, 5 EUR per liter
What is the result of the source determination process for the individual items?
Assign the source to items 30 and 40 of the requisition you have created. Enter
the assigned sources and a short reason for the assignment in the following table:
Material Vendor Reason for assignment
T-M520C##
Propelling pencils,
0.7mm
Packing boxes size 4
Lubricating oil
Continued on next page
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Unit 3: Source Determination SCM520
Now select the contract with your vendor T-K520B## for the third item.
a) SAP Menu → Logistics → Materials Management → Purchasing →
Purchase Requisition → Create
The source assigned in each case is shown on the Source of Supply tab page.
The solution to the task can vary depending on which data you have
created in the system.
Material Vendor Reason for
assignment
T-M520C## T-K520A## Sole info record
Propelling pencils, T-K520A## Sole info record
0.7mm
Packing boxes size 4 Not unique: all There are several
vendors T-K520B* contracts for material
group 008.
Lubricating oil Not unique: all There are several
vendors T-K520B## contracts for material
group 010.
Task 2:
Block source of supply.
1. Create a source list for material T-M520C## in plant 1000. There is at least one
source of supply (info record for vendor T-K520A##) in the system. Enter this
source in the source list via Edit → Generate Records and adopt the suggested
validity period. Block the vendor from being assigned as the source for the
procurement of material T-M520C## by setting the Blocked indicator.
Hint: Set the Blocked indicator for any other sources of supply for
material T-M520C## that may exist in the system.
a) SAP Menu → Logistics → Materials Management → Purchasing →
Master Data → Source List → Maintain
2. Test your setting by attempting to create a purchase order for vendor T-K520A##.
Which system message do you get? Can you nevertheless save the document?
_________________________________________________
Continued on next page
194 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Further Aspects of Source Determination
_________________________________________________
_________________________________________________
_________________________________________________
a) SAP Menu → Logistics → Materials Management → Purchasing →
Purchase Order → Create → Vendor/Supplying Plant Known
The system tells you that according to the source list the source is blocked.
The document cannot be saved. You can hold the document however.
Task 3:
Purchase order with source determination.
1. You are informed by telephone of the following requirement for cost center
1000 in plant 1000:
Material Further data
T-M520C## 10 boxes, 10 EUR per box
T-M520B## 20 pc
Steel bolts, M 4x15 100 pc, material group 009, 0.25 EUR
per pc
The materials are needed in two weeks.
You wish to record the requirement in the system, carry out an automatic source
determination process, and (if this process is successful) immediately generate a
purchase order to cover the requirement. You wish to save items to which no
sources could be assigned as purchase requisitions.
Create a purchase order with source determination.
How do you ensure that the source is automatically determined after the item
data is entered and, if possible, directly assigned to the item?
_________________________________________________
Continued on next page
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Unit 3: Source Determination SCM520
_________________________________________________
a) SAP Menu → Logistics → Materials Management → Purchasing →
Purchase Order → Create → Vendor Unknown
Set the Source Determination indicator to have the source determination
process carried out automatically when the item is entered.
Hint: If you enter the relevant delivery date and accounting
assignment category on the initial screen, this will be adopted in
all items as the default value.
Since only the second item (material T-M520B##) has had a source
assigned to it, select the item and choose Edit → Generate Purchase Order.
Adopt the item in the purchase order and save.
Save the remaining two items as a purchase requisition.
2. Unset the Blocking Indicator in the source list for material T-M520C## and
plant 1000 for vendor T-K520A##.
a) SAP Menu → Logistics → Materials Management → Purchasing →
Master Data → Source List → Maintain
196 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Further Aspects of Source Determination
Lesson Summary
You should now be able to:
• Describe how the automatic source determination process works when purchase
requisitions are assigned manually
• Describe how the automatic source determination process works in the
requirements planning run
• List the options for blocking sources of supply for procurement purposes
2006/Q2 © 2006 SAP AG. All rights reserved. 197
Unit Summary SCM520
Unit Summary
You should now be able to:
• Describe the various ways of creating source list records
• List the different uses of a source list
• Control the source determination process with the aid of the source list
• Create the quota arrangement for a material
• Describe how the source determination process can be controlled with the aid of
the quota arrangement
• Describe how the automatic source determination process works when purchase
requisitions are assigned manually
• Describe how the automatic source determination process works in the
requirements planning run
• List the options for blocking sources of supply for procurement purposes
198 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Test Your Knowledge
Test Your Knowledge
1. You create a requisition using source determination. When is a source found
uniquely?
Choose the correct answer(s).
□ A When there is a valid quota arrangement.
□ B When there is no quota arrangement but a single valid info record
exists as a source list entry without any other indicators.
□ C When there is no quota arrangement but several valid info records
exist as source list entries without any other indicators.
□ D When there is no quota arrangement but multiple valid source list
entries, of which both an outline agreement item and an info record
are selected as fixed sources.
□ E Only when info records exist of which one is selected in the
purchasing organization data as the regular vendor.
2. How do you block sources?
Choose the correct answer(s).
□ A Using a cross-plant vendor status in the vendor master record general
data.
□ B Client-wide in the source list for a material.
□ C Plant-dependent in the source list for a material.
□ D Using a blocking indicator in the vendor master record purchasing
data.
3. You want to create a purchase order but do not know the vendor. Which
statement is applicable?
Choose the correct answer(s).
□ A You have to first create a requisition.
□ B You create a purchase order without a vendor, hold this and then
assign a source to the purchase order using a collective transaction.
□ C Using the "Create PO, vendor unknown" function.
□ D You always have to use a one-time vendor.
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Test Your Knowledge SCM520
Answers
1. You create a requisition using source determination. When is a source found
uniquely?
Answer: A, B, D
If both an outline agreement and an info record are selected as fixed source
(answer B), the outline agreement has even higher priority and is thus found
uniquely. The regular vendor (answer E) is not maintained in the purchasing
organization data but in the general data. The use of the regular vendor must also
be activated in Customizing for the plant.
2. How do you block sources?
Answer: C, D
3. You want to create a purchase order but do not know the vendor. Which
statement is applicable?
Answer: C
200 © 2006 SAP AG. All rights reserved. 2006/Q2
Unit 4
Optimized Purchasing Management
Unit Overview
In this unit, you are introduced to the various possibilities of transforming purchase
requisitions into follow-on documents. Various assignment and processing functions
are available to you for this purpose. A distinction must be made between
non-assigned purchase requisitions (requisitions without source of supply) and
assigned purchase requisitions that have already received a source.
After the transformation you will receive a brief overview of how you can monitor the
current purchase orders and create reminders for order confirmations and deliveries.
Unit Objectives
After completing this unit, you will be able to:
• Automatically assign non-assigned requisitions using a collective transaction,
and convert them into POs and SA delivery schedule lines
• Convert requisition items without a source into RFQs
• Convert assigned purchase requisitions into POs and scheduling agreement items
using collective transactions
• Monitor order confirmations
• Expedite purchasing documents
• Make the settings for confirmation control
Unit Contents
Lesson: Processing Non-Assigned Purchase Requisitions ................... 202
Exercise 9: Processing Non-Assigned Purchase Requisitions. .......... 207
Lesson: Processing Assigned Purchase Requisitions ......................... 210
Exercise 10: Processing Assigned Purchase Requisitions ............... 217
Lesson: Purchase Order Monitoring ............................................. 223
Exercise 11: Optional: Purchase Order Monitoring ........................ 231
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Unit 4: Optimized Purchasing Management SCM520
Lesson: Processing Non-Assigned Purchase Requisitions
Lesson Overview
In this lesson, you will become acquainted with the options provided by the system
for assigning as yet unassigned requisitions to sources of supply as effectively as
possible and converting these into purchase orders and scheduling agreement delivery
schedule lines.
Lesson Objectives
After completing this lesson, you will be able to:
• Automatically assign non-assigned requisitions using a collective transaction,
and convert them into POs and SA delivery schedule lines
• Convert requisition items without a source into RFQs
Business Example
In addition to requisition items that have already been assigned, your company also
requests materials for which a supply source is not or cannot be assigned on creating
the purchase requisition. These purchase requisitions are converted by the purchasing
department into purchase orders, SA delivery schedules and RFQs using the collective
transaction Assign and Process.
Assigning and Processing Purchase Requisitions
In the case of purchase requisition items that were not assigned to sources at the time
of their creation, you have the option of assigning collective sources and converting
the purchase requisitions using a single transaction. Alternatively, you can assign the
requisitions to sources in a first step and then continue processing the assigned items
using other transactions in a second step.
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SCM520 Lesson: Processing Non-Assigned Purchase Requisitions
Figure 53: Assigning and Processing Purchase Requisitions
If you wish to carry out both functions in a single step, choose Purchase Requisition
→ Follow-On Functions → Assign and Process. The Assign and Process Requisitions
function is a combination of the Assign Source to Requisitions and Ordering for
Assigned Requisitions functions.
You can trigger the automatic assignment of sources for all selected purchase
requisition items from a list of open purchase requisitions. If there are several sources
of supply of a material, you can choose the desired one from a list of all possible
sources.
You can manually assign requisitions for which no source can be found to a vendor or
flag them for RFQ processing (Edit → Flag for RFQ → Without Vendor/With Vendor).
Hint: The flag for RFQ cannot be saved. This function is therefore only
available in ME57. Purchase requisitions that are flagged for RFQ must be
converted into RFQs immediately, otherwise the assignment will be lost on
saving.
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Unit 4: Optimized Purchasing Management SCM520
After the assignment phase, you can either save your requisitions with assigned
sources or generate the assignment list in a second step in order to convert the assigned
items into POs, SA delivery schedules or RFQs.
Caution: If requisitions that have already been assigned are selected, and the
automatic source determination process identifies a different source than the
one already entered, the previous source is overwritten without prior warning.
Assign and process purchase requisitions
SAP Menu → Logistics → Materials Management → Purchasing → Purchase
Requisition → Follow-On Functions → Assign and Process
As of SAP R/3 Enterprise, you can use the Enjoy interface for follow-on processing of
purchase requisitions. This enables you to assign sources in a single-screen transaction
and convert requisitions into follow-on documents (POs or RFQs).
Figure 54: Assign and Process Enjoy Purchase Requisitions
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SCM520 Lesson: Processing Non-Assigned Purchase Requisitions
Enjoy follow-on processing
• Gives you the option of changing individual purchase requisitions.
• Enables you to assign individual or multiple requisitions to sources.
• Allows you to convert requisitions into POs and RFQs
To be able to use transaction ME57 as a single-screen transaction, you have to use a
list scope for which ALV Grid Control is active.
To activate ALV Grid Control for a list scope, make the following settings in
Customizing:
SAP Customizing Implementation Guide → Materials Management → Purchasing →
Reporting → Maintain Purchase Requisition Lists → Define Scope of List Details:
Indicator
Use ALV Grid Control indicator.
You can also define this list scope as a default value:
SAP Customizing Implementation Guide → Materials Management → Purchasing
→ Reporting → Maintain Purchase Requisition Lists → Define Default Values for
Transactions
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Unit 4: Optimized Purchasing Management SCM520
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SCM520 Lesson: Processing Non-Assigned Purchase Requisitions
Exercise 9: Processing Non-Assigned
Purchase Requisitions.
Exercise Objectives
After completing this exercise, you will be able to:
• Process non-assigned purchase requisitions
Business Example
You wish to convert non-assigned purchase requisition items into POs, contract
release orders, and scheduling agreement delivery schedule lines with minimum
manual effort. To do this, you must first assign a suitable source of supply, or, if no
source exists in the system, create a request for quotation (RFQ).
Task:
Processing Non-Assigned Purchase Requisitions.
1. To process your non-assigned requisitions, choose SAP Menu → Logistics →
Materials Management → Purchasing → Purchase Requisition → Follow-On
Functions → Assign and Process.
Select all purchase requisitions for your purchasing group Z## for plant 1000.
Set the Released Requisitions Only indicator.
As far as possible, assign a source to every requisition item and then convert the
assigned items into POs or contract release orders.
Optional: If it is not possible to assign a source to a requisition item, flag the
item for the issue of RFQs to vendors T-K520A## and T-K520B##.
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Unit 4: Optimized Purchasing Management SCM520
Solution 9: Processing Non-Assigned
Purchase Requisitions.
Task:
Processing Non-Assigned Purchase Requisitions.
1. To process your non-assigned requisitions, choose SAP Menu → Logistics →
Materials Management → Purchasing → Purchase Requisition → Follow-On
Functions → Assign and Process.
Select all purchase requisitions for your purchasing group Z## for plant 1000.
Set the Released Requisitions Only indicator.
As far as possible, assign a source to every requisition item and then convert the
assigned items into POs or contract release orders.
Optional: If it is not possible to assign a source to a requisition item, flag the
item for the issue of RFQs to vendors T-K520A## and T-K520B##.
a) SAP Menu → Logistics → Materials Management → Purchasing →
Purchase Requisition → Follow-On Functions → Assign and Process
To do so choose Edit → Select → Select All and then Assign Automatically.
Optional: If it was not possible to assign a source to one of the items,
choose Edit → Flag for RFQ → With Vendor.
b) Generate the list of assignments by choosing Goto → Assignment Overview.
Convert the assigned requisitions into POs and RFQs using Process
Assignment. You can use your group number ## as the collective number
in the RFQ.
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SCM520 Lesson: Processing Non-Assigned Purchase Requisitions
Lesson Summary
You should now be able to:
• Automatically assign non-assigned requisitions using a collective transaction,
and convert them into POs and SA delivery schedule lines
• Convert requisition items without a source into RFQs
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Unit 4: Optimized Purchasing Management SCM520
Lesson: Processing Assigned Purchase Requisitions
Lesson Overview
In this lesson, you will become acquainted with the various options provided by the
system for converting requisitions that have already been assigned to a source of
supply into purchase orders and scheduling agreement delivery schedule lines as
efficiently as possible.
Lesson Objectives
After completing this lesson, you will be able to:
• Convert assigned purchase requisitions into POs and scheduling agreement items
using collective transactions
Business Example
In your enterprise, you have set up the source determination facility in such a way
that sources are assigned to purchase requisition items as soon as they are created,
either automatically or manually. You have also assigned sources to the purchase
requisitions as yet unassigned per collective transaction or manually. You want to
continue processing the purchase requisitions with assigned sources from the planning
run too. You now want to convert all these purchase requisition items into purchase
orders or scheduling agreement delivery schedules.
Conversion of Requisitions into Purchase Orders
The SAP system provides the following functions for converting assigned purchase
requisitions to follow-on documents:
210 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Processing Assigned Purchase Requisitions
Figure 55: Collective Transactions for Converting Requisitions
• Assignment list
• Document overview in the PO transaction
• Automatic generation of purchase orders
Assignment list
A prerequisite for the semiautomatic conversion of purchase requisitions into POs
or SA delivery schedule lines, which is possible using the function Create Purchase
Order → Via Assignment List, is that sources must already have been assigned to
the requisitions to be converted.
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Unit 4: Optimized Purchasing Management SCM520
Figure 56: Creating Follow-On Documents via an Assignment List
You obtain a list showing the number of assigned requisition items per source of
supply. You can convert all requisition items that are assigned to the same source into
POs in a single step. Items for which a contract or scheduling agreement is assigned
must be converted separately.
Create Purchase Orders via Assignment Lists:
SAP Menu → Logistics → Materials Management → Purchasing → Purchase Order
→ Create → Via Requisition Assignment List
or
SAP Menu → Logistics → Materials Management → Purchasing → Purchase
Requisition → Follow-On Functions → Create Purchase Order → Via Assignment List
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SCM520 Lesson: Processing Assigned Purchase Requisitions
Document Overview
Instead of creating POs via assignment lists, you can set up the document overview
in the Create Purchase Order transaction in such a way that the conversion of all
requisition items assigned to the same vendor can be carried out in a single step. The
document overview is an alternative to the assignment lists created by the system if
you select just the already assigned, released, and still-open purchase requisition items.
Figure 57: Document Overview as Alternative to Assignment List
For maximum efficiency in the conversion of open requisition items, it is sensible to
define the layout of the document overview for requisitions in such a way that the
breakdown occurs at the highest level after the vendor. With the aid of such a layout,
you can quickly and easily consolidate all items for the same vendor in one purchase
order. You can convert the items either individually or in groups. From time to time,
you should use the Refresh function in the document overview so that it shows only
those requisition items that have not yet been converted.
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Unit 4: Optimized Purchasing Management SCM520
Automatic Generation of Purchase Orders
Requisition items to which a source of supply has already been assigned can also be
converted into POs automatically in an SAP system. This transaction can be run
either online or in the background.
Figure 58: Automatic Generation of Purchase Orders
In automatic PO generation, the system selects only those requisition items that satisfy
the following conditions:
• The Automatic Purchase Order indicator must have been set in the plant-specific
purchasing data of the material master record.
• The Automatic Purchase Order indicator must have been set in the purchasing
data of the vendor master record.
• Valid conditions must have been determined for the assigned source.
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SCM520 Lesson: Processing Assigned Purchase Requisitions
If you have requisitions with an assigned source in the system and want to generate
POs from them automatically, proceed as follows:
1. First enter your organizational selection criteria (for example, responsible
purchasing group and plant) in the upper part of the initial screen in the
transaction Purchase Order → Create → Automatically via Purchase
Requisitions. In the lower part of this screen, enter the selection criteria for the
requisitions (for example, a number interval, a certain material, or a date range
for requisitions released over this period).
2. In the middle part of the screen, specify the cases in which a separate purchase
order is to be created for a requisition item (if, for example, you do not wish
requisition items for different plants to be included in the same purchase order).
The following control parameters are also located in the middle part of the screen:
The Omit Faulty Items indicator causes the system to create a PO with nine items
from a total of 10 requisition items for the same vendor of which one is faulty
(perhaps due to unspecified account assignment), for example. An advantage is
that the reprocessing effort is relatively small. You need only reprocess one item.
A disadvantage is that there is no guarantee that requisition items that actually
belong together are all included in the same PO.
Set the Detailed Log indicator if you wish to perform and log the function in
the background. The log shows which POs have been generated and which
requisition items are faulty. The log provides detailed information indicating the
cause of the error for each faulty item.
Set the Generate Schedule Lines indicator if you wish a single PO item with a
delivery schedule to be generated for multiple requisition items that differ only
in respect of the desired delivery date.
You can also perform the function as a test by setting the Test Run indicator.
3. After the test run, either start the program online or save the screen as a selection
variant and schedule the report as a background job to be carried out at regular
intervals, for example.
Caution: You cannot automatically generate delivery schedule lines against a
scheduling agreement with this transaction. As a rule, SA delivery schedule
lines are generated directly from material requirements planning.
Create purchase orders automatically:
SAP Menu → Logistics → Materials Management → Purchasing → Purchase Order
→ Create → Automatically via Purchase Requisitions
or
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Unit 4: Optimized Purchasing Management SCM520
SAP Menu → Logistics → Materials Management → Purchasing → Purchase
Requisition → Follow-On Functions → Create Purchase Order → Automatically via
Purchase Requisitions
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SCM520 Lesson: Processing Assigned Purchase Requisitions
Exercise 10: Processing Assigned Purchase
Requisitions
Exercise Objectives
After completing this exercise, you will be able to:
• Convert purchase requisitions to purchase orders.
Business Example
You wish to convert assigned purchase requisition items into POs, contract release
orders, and scheduling agreement delivery schedule lines with minimum manual effort.
Task:
Convert assigned requisitions.
1. Use the transaction SAP Menu → Logistics → Materials Management →
Purchasing → Purchase Requisition → Follow-On Functions → Create
Purchase Order → Via Assignment List to convert some of the requisitions you
have already assigned to POs, contract release orders or scheduling agreement
delivery schedules according to the source. Select all assigned requisition items
for your purchasing group Z##.
How many open requisition items exist for each vendor/supplying plant?
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
Convert all requisition items for vendor T-K520A## into purchase orders and
then all requisition items referencing a scheduling agreement for your vendor
T-K520B## into SA delivery schedules.
If necessary, convert the open requisition items for plant 1100.
Exit the transaction without converting the remaining requisition items for
vendor T-K520B##.
2. Convert any still-open assigned requisitions via the document overview in the
Create Purchase Order transaction.
Continued on next page
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Unit 4: Optimized Purchasing Management SCM520
Optional: Define a suitable selection variant and an appropriate layout for
purchase requisitions. In doing so, note the following:
In defining the selection variants, select only assigned, released, and still-open
requisitions. Use your purchasing group Z## as a further selection criterion.
Define the breakdown in such a way that the vendor is shown at the top. Below
the vendor, the purchase requisition number, the item, the material, the short
text, the purchase requirement quantity and the unit of measurement should be
adopted in the layout.
218 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Processing Assigned Purchase Requisitions
Solution 10: Processing Assigned Purchase
Requisitions
Task:
Convert assigned requisitions.
1. Use the transaction SAP Menu → Logistics → Materials Management →
Purchasing → Purchase Requisition → Follow-On Functions → Create
Purchase Order → Via Assignment List to convert some of the requisitions you
have already assigned to POs, contract release orders or scheduling agreement
delivery schedules according to the source. Select all assigned requisition items
for your purchasing group Z##.
How many open requisition items exist for each vendor/supplying plant?
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
Convert all requisition items for vendor T-K520A## into purchase orders and
then all requisition items referencing a scheduling agreement for your vendor
T-K520B## into SA delivery schedules.
If necessary, convert the open requisition items for plant 1100.
Continued on next page
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Unit 4: Optimized Purchasing Management SCM520
Exit the transaction without converting the remaining requisition items for
vendor T-K520B##.
a) SAP Menu → Logistics → Materials Management → Purchasing →
Purchase Requisition → Follow-On Functions → Create Purchase Order
→ Via Assignment List
The number of assigned requisition items can vary. There should be some
requisition items for both vendor T-K520A## and vendor T-K520B##.
b) To convert requisition items, position the cursor on the line containing the
desired source (for example, T-K520A##, line without outline agreement).
Choose Edit → Process Assignment and acknowledge the message with
Continue.
Adopt the requisition items in the purchase order and acknowledge any
system messages with Enter. Save the purchase order.
c) To convert requisition items whose source is a scheduling agreement,
position the cursor on the relevant line and choose Edit → Process
Assignment. This invokes the Maintain Scheduling Agreement Delivery
Schedule´ transaction. Save the new delivery schedule lines.
d) If you have an item with a supplying plant as a source, convert this to a
stock transfer order.
e) Exit the transaction without converting any more requisition items for
vendor T-K520B##.
2. Convert any still-open assigned requisitions via the document overview in the
Create Purchase Order transaction.
Optional: Define a suitable selection variant and an appropriate layout for
purchase requisitions. In doing so, note the following:
In defining the selection variants, select only assigned, released, and still-open
requisitions. Use your purchasing group Z## as a further selection criterion.
Continued on next page
220 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Processing Assigned Purchase Requisitions
Define the breakdown in such a way that the vendor is shown at the top. Below
the vendor, the purchase requisition number, the item, the material, the short
text, the purchase requirement quantity and the unit of measurement should be
adopted in the layout.
a) SAP Menu → Logistics → Materials Management → Purchasing →
Purchase Order → Create → Vendor/Supplying Plant Known
Open the document overview. Choose the selection variant “Purchase
Requisition”.
Perform the steps as described in the task to adjust the breakdown and
the layout.
Afterwards save the layout as a user-specific setting.
Then convert the purchase requisitions.
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Unit 4: Optimized Purchasing Management SCM520
Lesson Summary
You should now be able to:
• Convert assigned purchase requisitions into POs and scheduling agreement items
using collective transactions
222 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Purchase Order Monitoring
Lesson: Purchase Order Monitoring
Lesson Overview
One of the tasks of the purchaser or MRP controller is the monitoring or purchase
orders. The system provides support for this.
Confirmation control can be used to determine which follow-on activities are required
for a purchase order. For example, it can be defined that an inbound delivery (shipping
notification) is required for each purchase order.
Lesson Objectives
After completing this lesson, you will be able to:
• Monitor order confirmations
• Expedite purchasing documents
• Make the settings for confirmation control
Business Example
You wish to ensure that all purchasing documents that you send to your suppliers are
confirmed. To do this you request an order confirmation. You would like to monitor
receipt of confirmations in a simple manner.
After you have checked and recorded the confirmations, you would like to monitor
delivery dates and, if necessary, send delivery reminders or expediters to your vendors.
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Unit 4: Optimized Purchasing Management SCM520
Monitoring Order Confirmations
Figure 59: Confirmations in the Purchasing Process
When working with confirmations, the following possibilities are available:
• You only work with order confirmations:
In this case, the confirmation is solely for informational purposes. You cannot
record the confirmed dates and quantities separately. If a material is also used in
MRP, it cannot be seen if a receipt from a vendor has been confirmed or not.
• You work with several confirmation types (order confirmation / loading
confirmation / inbound delivery, etc.):
In this case, you can record the confirmed dates and quantities in the system.
If a material is also used in MRP, it is possible to see which quantities have
been confirmed on which dates.
Working Only with Order Confirmations
In this case, when creating the purchasing document you select the field Order
Acknowledgement reqd. This suffices to be able to issue an expediter in respect
of outstanding order acknowledgment.
If you have received the order confirmation from your vendor, you enter the
confirmation number in the item screen.
224 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Purchase Order Monitoring
The system checks if an entry is present or not in the Order Confirmation field. If
there is no entry, you can generate an an order acknowledgment expediter.
Hint: If you wish to enter the same confirmation number for all items of
a purchase order, you can do this with the fast change. the corresponding
symbol is located in the purchase order below the item overview.
Working with Different Confirmation Types
In this case, when creating the purchasing document you have to enter the confirmation
key in the item detail. The key determines which confirmations you expect from
vendors and in which sequence.
The key also controls which confirmation types are relevant for MRP planning and
goods receipt.
Hint: If a confirmation control key is present in a purchasing info record,
this is suggested in the purchasing document. You can also preset the
Acknowledgment requirement indicator in the purchasing info record.
You have the following options for entering the confirmation:
• Entering the confirmation in the purchasing document
• Generating an independent document – an inbound delivery. Prerequisite for this
is that you have used a confirmation type that permits a confirmation request.
The data of the inbound delivery is entered in the purchasing document in the
corresponding confirmation fields. You can then enter the goods receipt with
reference to a purchasing document or inbound delivery.
The system checks in the entire ordered quantity has been confirmed. If the quantity
has not been confirmed or has only been partially confirmed, you can generate an
acknowledgement expediter.
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Unit 4: Optimized Purchasing Management SCM520
Generating Order Acknowledgment Expediters
Figure 60: Message Output
The following preconditions must be satisfied to generate order acknowledgment
expediters:
• The Acknowledgment requirement field must be selected
• No confirmation number should be entered for items without a confirmation
control key
• For items with a confirmation control key the ordered quantity has not been
confirmed or only partially confirmed
Hint: Only confirmations are considered that are assigned to the internal
confirmation type 1 (order confirmation).
• The document is output
• The message determination for order acknowledgment expediter is set
• Message records for the order acknowledgment expediter are present in the
master data of the purchase
You generate the messages with the message transaction for the corresponding
document type: Logistics → Materials Management → Purchasing →
Purchase Order/Contract/Scheduling Agreement → Messages→ Monitor Order
Acknowledgments
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SCM520 Lesson: Purchase Order Monitoring
Enter the selection criteria for the purchasing documents and start the program.
The results lists enables you to decide for which documents you wish to generate
messages. After storing you can output the documents with the standard transaction
for message output for the purchasing documents. If the message record contains
transmission time-spot 4 (immediate), the messages are output automatically on
storing.
Hint: If you do not wish to generate expediters, you can also check
confirmations with the simple monitoring transaction. Choose Logistics →
Materials Management → Purchasing → Purchase Order/Outline Agreement
→ Reporting → Monitor Acknowledgments.
Expediters and Reminders
You can issue an expediter for due and overdue purchase orders and RFQs. The
following prerequisites must be satisfied:
• You have entered one or several dunning levels in the line item
• The document has been output
• The message determination for delivery expediter is set
• Message records for the delivery expediter are present in the master data of
the purchase
You generate the messages with the message transaction for the corresponding
document type: Logistics → Materials Management → Purchasing → RFQ/Purchase
Order → Messages→ Urging/Reminders
Enter the selection criteria for the purchasing documents and start the program.
The results lists enables you to decide for which documents you wish to generate
messages. After storing you can output the documents with the standard transaction
for message output for the purchasing documents. If the message record contains
transmission time-spot 4 (immediate), the messages are output automatically on
storing.
On the basis of the reference date entered, the system checks for which documents
expediters can be issued. It also considered confirmations if these have been flagged
as relevant for expediters in Customizing.
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Unit 4: Optimized Purchasing Management SCM520
For RFQs, the quotation deadline is considered rather than the delivery date.
Hint: If you have not entered reminder/expediter days in your purchasing
documents, you can use the list display of open purchasing documents.
Logistics → Materials Management → Purchasing → Purchase Order →
List Displays → By Material/By Vendor ...
Use the selection parameter WE101 and restrict the delivery date to the period
you would like to monitor.
Setting Confirmation Control Keys
Confirmation control keys are set in Customizing.
First you have to define external and internal confirmation types. The external types
can be assigned to internal types.
SAP Customizing Implementation Guide → Materials Management → Purchasing →
Confirmations → Define External Confirmation Categories
SAP Customizing Implementation Guide → Materials Management → Purchasing →
Confirmations → Define Internal Confirmation Categories
Then you can define the confirmation control key:
SAP Customizing Implementation Guide → Materials Management → Purchasing →
Confirmations → Set Up Confirmation Control
228 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Purchase Order Monitoring
Figure 61: Defining Confirmation Control Keys
The Create Inb. Delivery indicator sets whether you can create an inbound delivery
from a purchase order.
You enter an inbound delivery with
SAP Menu → Logistics → Materials Management → Purchasing → Purchase Order
→ Inbound Delivery → Create
In addition you can also decide if a confirmation control key is to be relevant for the
proof of delivery.
You can use the proof of delivery to inform your vendors of goods receipts by means
of EDI.
After you have defined the confirmation control key, you can determine the
confirmation sequence.
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Unit 4: Optimized Purchasing Management SCM520
Figure 62: Confirmation Sequence
One or several confirmations may be required.
For each confirmation you define the following:
• MRP-relevant The confirmation is displayed in the stock/requirements list and
considered in the planning run
• GR-relevant: The confirmation (e.g. inbound delivery) is cancelled by a
goods receipt for the corresponding purchase order item. If the confirmation
sequence contains several confirmations, this indicator can only be set for one
confirmation.
• GR assignment: Only the confirmed quantity is suggested when posting a goods
receipt. Posting a goods receipt without a prior confirmation is not possible. This
indicator can only be used in conjunction with the GR-relevant indicator.
• Monitoring period / reference date: Controls up to what point a confirmation
must be made. The period can be defined with reference to the order date or
the delivery date. If no confirmation has been recorded within this period, an
expediter can be issued automatically as long as the Sbj to Rem indicator has
been set.
Expediters for confirmations cannot be issued unless the subject to reminder
indicator has been set.
230 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Purchase Order Monitoring
Exercise 11: Optional: Purchase Order
Monitoring
Exercise Objectives
After completing this exercise, you will be able to:
• Issue expediters for order confirmations
• Issue expediters for deliveries
Business Example
You would like to check if all purchase orders have been confirmed by your vendors.
An expediter is to be issued for the confirmed purchase orders if the delivery is
overdue.
In both cases, messages are to be sent to the vendors.
Task:
Monitor a purchase order
1. Create a purchase order. Order 10 pc of material T-M520A## from vendor
T-K520A## for delivery the next day. You expect a confirmation for this item.
Set the required indicators.
As you wish to monitor the delivery, enter the reminder/expediter days: The first
expediter is to be issued two days before the delivery date, the second expediter
one day before the delivery date.
Copy the item entered in this way.
Change the delivery date for the second item. The delivery note is to be made
in one week.
Use the Order confirmation confirmation control key for this item.
Store the order and output it.
2. Check if the order confirmations are present for your order and issue an expediter
if the confirmations are still outstanding.
3. Enter the confirmations. The vendor confirms both items at the desired date/time
and in the required quantity. The order confirmation has the number AB##.
4. Check if delivery expediters can be issued for your order and output these
if required.
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Unit 4: Optimized Purchasing Management SCM520
Solution 11: Optional: Purchase Order
Monitoring
Task:
Monitor a purchase order
1. Create a purchase order. Order 10 pc of material T-M520A## from vendor
T-K520A## for delivery the next day. You expect a confirmation for this item.
Set the required indicators.
As you wish to monitor the delivery, enter the reminder/expediter days: The first
expediter is to be issued two days before the delivery date, the second expediter
one day before the delivery date.
Copy the item entered in this way.
Change the delivery date for the second item. The delivery note is to be made
in one week.
Use the Order confirmation confirmation control key for this item.
Continued on next page
232 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Purchase Order Monitoring
Store the order and output it.
a) SAP Menu: SAP Menu → Logistics → Materials Management →
Purchasing → Purchase Order → Create → Vendor/Supplying Plant
Known.
Enter the data as specified in the task The Acknowledgment requirement
field is located in the item detail on the Confirmations tab. The
reminder/expediter days can be entered on the Delivery tab. In the 1st
expediter field enter the value 2- and in the 2nd expediter field enter the
value 1.
Select the item in the item overview and choose Copy item.
Change the delivery date for the second item as described in the task.
On the Confirmations tab in the item detail enter the confirmations control
key Order confirmation.
Save the purchase order.
SAP Menu: Logistics → Materials Management → Purchasing →
RFQ/Purchase Order → Messages→ Print/Transmit
Enter your order number and start the program with Execute.
Select your order and choose Output Message.
2. Check if the order confirmations are present for your order and issue an expediter
if the confirmations are still outstanding.
a) SAP Menu: Logistics → Materials Management → Purchasing →
RFQ/Purchase Order → Messages→ Monitor Order Acknowledgments
Enter your order number and start the program with Execute. Both
purchase order items are suggested for expediters. Select your order and
choose Generate Messages.
Then choose Save.
You can output the messages with SAP Menu: Logistics → Materials
Management → Purchasing → RFQ/Purchase Order → Messages→
Print/Transmit. The generated message has the message type AUFB.
Continued on next page
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Unit 4: Optimized Purchasing Management SCM520
3. Enter the confirmations. The vendor confirms both items at the desired date/time
and in the required quantity. The order confirmation has the number AB##.
a) SAP Menu: Logistics → Materials Management → Purchasing →
Purchase Order → Change
Call up your order and go to the Confirmations tab in the item detail.
For the first item enter the confirmation number AB## in the Order
confirmation field.
For the second item leave the Order confirmation field empty. Instead, enter
the following confirmation data: Confirmation type (CT) AB, Delivery
Date Current date + 1 week, Quantity 10, External document AB-##
Save the purchase order.
Hint: If you perform step 2 again, no documents will be offered
for expediters.
4. Check if delivery expediters can be issued for your order and output these
if required.
a) SAP Menu: Logistics → Materials Management → Purchasing →
Purchase Order → Messages→ Urging/Reminders
Enter your order number and choose Execute.
Only the first item is suggested for an expediter as the second item is only
due in one week.
Select your order and choose Generate Messages.
Then choose Save.
You can output the messages with SAP Menu: Logistics → Materials
Management → Purchasing → RFQ/Purchase Order → Messages→
Print/Transmit. The generated message has the message type MAHN.
234 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Purchase Order Monitoring
Lesson Summary
You should now be able to:
• Monitor order confirmations
• Expedite purchasing documents
• Make the settings for confirmation control
2006/Q2 © 2006 SAP AG. All rights reserved. 235
Unit Summary SCM520
Unit Summary
You should now be able to:
• Automatically assign non-assigned requisitions using a collective transaction,
and convert them into POs and SA delivery schedule lines
• Convert requisition items without a source into RFQs
• Convert assigned purchase requisitions into POs and scheduling agreement items
using collective transactions
• Monitor order confirmations
• Expedite purchasing documents
• Make the settings for confirmation control
236 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Test Your Knowledge
Test Your Knowledge
1. Which documents can you not generate with the "Automatic Generation of
Purchase Orders" transaction (ME59N)?
Choose the correct answer(s).
□ A Contract calls
□ B SA delivery schedules
□ C Purchase orders
□ D RFQs
2. No source was found in the assignment list during automatic assignment of
sources. What can you do?
Choose the correct answer(s).
□ A Assign a source manually.
□ B Flag the purchase requisition for RFQ.
□ C Convert the purchase requisition directly to an RFQ to a one-time
vendor.
□ D Block the purchase requisition automatically.
3. You would like to convert assigned purchase requisitions into follow-on
documents. Which of the following statements apply?
Choose the correct answer(s).
□ A You can convert several requisition items from the same vendor
to a purchase order. In doing so, one requisition item is generated
for each PO item
□ B You can convert several requisition items from the same vendor to a
purchase order. In doing so, requisition items with the same material
are automatically combined for one PO item.
□ C If the assigned source was blocked after the assignment was made in
the source list, it is not possible to convert the relevant requisition
item.
□ D You can convert SA delivery schedules and contract calls together.
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Test Your Knowledge SCM520
4. What determines whether a requisition item is transferred directly to the
document during conversion or displayed initially in the document overview?
Choose the correct answer(s).
□ A Personal settings in the PO transaction.
□ B Personal settings in the assignment transaction.
□ C User parameter EFB
□ D User parameter EVO
238 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Test Your Knowledge
Answers
1. Which documents can you not generate with the "Automatic Generation of
Purchase Orders" transaction (ME59N)?
Answer: B, D
2. No source was found in the assignment list during automatic assignment of
sources. What can you do?
Answer: A, B
During manual assignment, the system checks whether there is a corresponding
info record. A warning message is output in the standard system if an info
record does not exist (Message 06341). Is this is set up as an error message, a
purchasing info record must be available for the fixed vendor being entered.
Flagging the RFQ (answer B) is only possible in the "Assign and Process"
transaction (ME57).
3. You would like to convert assigned purchase requisitions into follow-on
documents. Which of the following statements apply?
Answer: A, C
SA delivery schedules and contract calls (answer D) have to be converted
separately as various follow-on documents are required here. If you use
automatic PO generation and select the schedule lines indicator, answer B also
applies and you then receive one item with schedule lines for each requisition
item. The indicator is not automatically preset in the standard version however.
4. What determines whether a requisition item is transferred directly to the
document during conversion or displayed initially in the document overview?
Answer: D
You learn more about user parameter EVO in the unit "Selected Topics in
Customizing".
2006/Q2 © 2006 SAP AG. All rights reserved. 239
Unit Summary SCM520
240 © 2006 SAP AG. All rights reserved. 2006/Q2
Unit 5
Release Procedure
Unit Overview
This unit deals with the release procedure for purchase requisitions and external
purchasing documents (POs, outline purchase agreements, and RFQs). This electronic
document release procedure obviates the need for a cumbersome manual approval
procedure using handwritten signatures.
Unit Objectives
After completing this unit, you will be able to:
• Describe the function of and steps in a release procedure
• Release requisitions and purchase orders
• Set up your own release procedures in Customizing
Unit Contents
Lesson: Release Procedure ....................................................... 242
Exercise 12: Document Release Procedure ................................ 261
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Unit 5: Release Procedure SCM520
Lesson: Release Procedure
Lesson Overview
In this lesson, you will learn about the various options for releasing blocked
documents. After an introduction to the most important terminology relating to release
procedures, you will learn how to define your own release procedures in Customizing.
Lesson Objectives
After completing this lesson, you will be able to:
• Describe the function of and steps in a release procedure
• Release requisitions and purchase orders
• Set up your own release procedures in Customizing
Business Example
In your enterprise, you wish to have purchase requisition items that exceed a certain
value approved by various individuals or departments before the requested materials
can be ordered.
In addition, you want to have purchase orders whose value exceeds a certain limit
approved before the message output process can take place.
To achieve this, you make use of the electronic release procedure.
Releasing Blocked Purchasing Documents
In the SAP system, you can set up approval procedures in Purchasing for purchase
requisitions and external purchasing documents (POs, contracts, scheduling
agreements, and RFQs).
If a purchase requisition or an external purchasing document fulfills certain conditions
(for example, a requisition item is assigned to a cost center), the document has to be
approved (by the cost center manager, for instance) before further processing can take
place. The approval process can be replicated by an electronic release procedure.
This release procedures automatically blocks the relevant documents for further
processing. Blocked requisition items cannot be converted into follow-on documents.
Blocked purchase orders cannot be output.
242 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Release Procedure
Release Procedure for Requisitions
The aim of the release procedure for requisitions is to prevent that these can be
converted into follow-on documents. Follow-on documents are requests, purchase
orders and outline agreements.
Figure 63: Purchase Requisition Release
One or several approvals may be required for the release. The release acts as an
electronic signature.
It is necessary to differentiate between two types of release:
• Item-wise release
• Overall release
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Unit 5: Release Procedure SCM520
Figure 64: Overall and Item-Wise Release of Purchase Requisitions
With an item-wise release, every item is checked as to whether if corresponds to the
criteria required for release. the check is made as the data is entered.
With the overall release, all items must fulfill these criteria. The criteria for overall
releases must therefore be selected with great care. The check is made with the
purchase requisition is stored or verified.
Each person involved in the release procedure indicates approval in a release
transaction, using his or her release code. An already effected release can be cancelled
with the same code, in which case the original release status is reinstated. This option
exists only as long as a purchase requisition or a purchase requisition item has not
been converted into a follow-on document.
If a connection to SAP Business Workflow has been created for a release code, the
employee responsible for the approval receives a work item in his or her incoming
post. From here, the purchase requisition or purchase requisition item that requires
approval can be called directly.
244 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Release Procedure
The requisitioner can receive information on the result of the approval (agreed or
declined) by means of a workflow.
Hint: Workflows can also be integrated in a mail system (Outlook or Notes).
Whether a requisition has to be released on an item-wise basis or in its entirety is
determined by the document type and the release group in the classification.
For purchase requisitions, two release procedures are available:
• Without classification
With this procedure, purchase requisitions can only be released at item level.
Only the account assignment category, material group, plant and value
characteristics are available as release criteria.
• With classification
This procedure enables you to release requisitions both item by item and in
their entirety. In principle, every field of the purchase requisition can be used
as a criterion for the release.
Caution: The two procedures are mutually exclusive - that is, you must
decide on one of these two alternatives. On delivery, the system does not
have a procedure with classification. As soon as a procedure is created
with classification, the procedure is deactivated automatically without
classification.
If you want to use the procedure without classification, please see the
documentation for the relevant IMG activity regarding any points you need to
note when doing this.
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Unit 5: Release Procedure SCM520
Figure 65: Release Options for Blocked Purchase Requisitions
There are two ways of releasing purchase requisitions:
• Individual release
You release individual items of a requisition, or - if the requisition must be
released complete - the entire document.
With individual releases, you can also refuse the release.
• Collective release
You release several requisition items or requisitions awaiting release by your
release code at one time.
To execute this transaction, you need only enter your release code. The system
then lists all requisition items whose release is possible with the relevant code.
You can limit the scope of this list using various selection options on the initial
screen.
A refusal is not possible with the collective release.
246 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Release Procedure
Release purchase requisitions:
SAP Menu → Logistics → Materials Management → Purchasing → Purchase
Requisition → Release → Individual Release
SAP Menu → Logistics → Materials Management → Purchasing → Purchase
Requisition → Release → Collective Release
Release Procedure for Purchasing Documents
The purpose of the release procedure is to prevent the printout or transmission of
the documents.
Purchasing documents are released or refused at header level. A item-wise release or
refusal is not possible. The check is made with the purchase document is stored or
verified.
Figure 66: Overall Release of External Purchasing Documents
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Unit 5: Release Procedure SCM520
The collective transaction Purchase Order/Contract/Scheduling Agreement/RFQ
→ Release is provided for the release of external purchasing documents. These
transactions give you the option of displaying the print preview of the message
record for the blocked document. However, this message cannot be output (printed or
transmitted).
Hint: As of SAP R/3 Enterprise, it is possible to release purchase orders not
only collectively, but also individually. In transaction ME29N, the individual
authorized to effect release can display the current version of a purchase order
and, on the basis of this information, effect release with his or her release
code, refuse to effect release, or cancel an already effected release - without
changing transactions.
If you wish to make external purchasing documents subject to a release procedure,
you can only use the procedure with classification.
Release purchasing documents:
SAP Menu → Logistics → Materials Management → Purchasing →
Contract/Scheduling Agreement/RFQ → Release
SAP Menu → Logistics → Materials Management → Purchasing → Purchase Order
→ Release → Individual Release
SAP Menu → Logistics → Materials Management → Purchasing → Purchase Order
→ Release → Collective Release
Key Terms for Release Procedures
In the following, the key terminology with regard to release procedures is discussed.
The initial basis for this should be a purchase requisition that is blocked by the system.
If the purchase requisition is blocked by the system, the Release strategy tab appears
on which you can find more detailed information on the release. For item-wise
releases the tab is in the item details, for overall releases, it is in the header details.
248 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Release Procedure
Figure 67: Key Terms
Release group
Several release strategies can be compiled in a release group.
Release group 01 is intended for purchase requisitions, release group 02 for purchasing
documents.
The release group and the document type decide if the purchase requisitions are
subject to item-wise or overall releases.
Release strategy
The release strategy shows you where the criteria are stored that have resulted in the
blocking of the item or the document.
Hint: The criteria which cause the block are are not shown. They are defined
in Customizing for the release strategy.
Release indicator
The release indicator is a key denoting the current release status of the item or
document. At the start of the release procedure, the condition is usually Blocked.
Release code
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Unit 5: Release Procedure SCM520
The release code is a two-character ID that allows an individual or group of individuals
to release a blocked document or cancel an already effected release. Who may use
which release codes is controlled via authorizations.
Setting Up Release Strategies in Customizing
Two types of procedure can be specified in Customizing for release procedures
for purchase requisitions. Procedures without classification and procedures with
classification. This course deals exclusively with setting up release procedures with
classification.
Release procedures for purchasing documents are only possible with classification.
To set up a release procedure with classification, you must make the following
Customizing settings in this order:
1. Create characteristics and classes
2. Create release group
3. Create release codes
4. Create release indicators
5. Create release strategy
6. (Optional) defining a workflow
In the following, the individual steps are discussed in detail examining the example of
the purchase requisition.
Step 1: Create characteristics and classes
A precondition for a release strategy with classification is that a class with
characteristics has been created for each document type (requisition, PO etc.). The
individual release strategies differ by virtue of the different instances of all the
characteristics a class contains. If you wish to set up both overall and item-wise
release procedures for requisitions, you must create one class for each.
250 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Release Procedure
2006/Q2 © 2006 SAP AG. All rights reserved. 251
Unit 5: Release Procedure SCM520
Figure 68: Definition of Release Criteria
• Create characteristics
SAP Customizing Implementation Guide → Materials Management →
Purchasing → Purchase Requisition → Release Procedure → Procedure with
Classification → Edit Characteristics
The communication structure CEBAN (for requisitions) contains all fields
that can be defined as release characteristics. You can cover any additional
requirements via the customer exit provided by SAP.
For each field, you must create a characteristic from the communication structure
CEBAN that acts as a criterion for your release strategy. You have a free
choice of names for the characteristic. The characteristic must be linked in the
Additional data tab with the database table CEBAN and the field name from
this table.
The "Multiple Value" attribute can be assigned to a classification characteristic
so that not only single values, but also multiple values, can be entered for the
characteristic.
For characteristics of the data type NUM (numerical format) or CURR (currency
format), you should allow interval values.
• Create class
SAP Customizing Implementation Guide → Materials Management →
Purchasing → Purchase Requisition → Release Procedure → Procedure with
Classification → Edit Classes
All characteristics that are to be used in release strategies for requisitions or
external purchasing documents must be collected together in classes. The classes
must be assigned to class type 032. You can define a maximum of two classes
for requisitions (one each for overall and item-wise release). The names of the
classes can be chosen freely.
Step 2: Create release group
SAP Customizing Implementation Guide → Materials Management → Purchasing
→ Purchase Requisition → Release Procedure → Procedure with Classification
→ Set Up Procedure With Classification
252 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Release Procedure
Figure 69: Customizing of Release Procedure with Classification
With the release group, you link the release class to the purchase requisition release
object. You must also specify whether the release group is for item-wise or overall
release.
Hint: Please only create one group for item-wise release and one group for
overall release.
Step 3: Create release codes
Create all the release codes (with short descriptions) needed for your release strategies
and assign them to the required release group.
If a workflow is to be initiated by a release code, set the corresponding indicator.
Step 4: Create release indicators
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Unit 5: Release Procedure SCM520
The following release indicators are necessary for each release procedure:
• A release indicator for the initial status
As a rule you must first release a purchase requisition before you can create an
RFQ or a PO referencing the requisition. For this reason, a release indicator
is assigned to a requisition to denote initial status and prevent it from being
converted to an RFQ or a PO. You may not select the indicators for release for
issue of an RFQ or a PO on the detail screen for this indicator.
• A release indicator for the released status
You must select the indicators for release for issue of an RFQ or a PO on the
detail screen for this indicator. At least one of these indicators must be selected.
You can protect a purchase requisition that is has been generated in a planning run
against changes caused by a new planning run with a fixing indicator.
You can use a field selection key to prevent certain fields being changed during
later processing. Otherwise you can use the Changeability indicator to specify the
consequence of changing the document after the start of the release procedure.
For value changes you can define a percentage that will be tolerated.
Step 5: Create release strategy
254 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Release Procedure
Figure 70: Release Strategies
The release strategies define the criteria that result in the blocking of a purchase
requisition and the expiry of the release process. First you define the strategies that
you wish to create. You define the following information for every strategy:
1. Release codes
In the first step towards defining your new release strategy, you specify which
release points (release codes) are to be involved in the release process.
2. Release prerequisites
The release prerequisites determine the order in which the release points
(individuals or groups of individuals) involved may effect release via their
release codes.
Example:
The figure shows a release strategy with two release codes.
You can seen that there is no release prerequisite for code Z1. For release code
Z2, a release with release code Z1 is prerequisite. This is implemented by
checking code Z1 as prerequisite for code Z2.
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Unit 5: Release Procedure SCM520
3. Release status
You specify the status of a document after it has been released by certain release
points. You must specify the status the document would have in all situations
that are liable to occur during the release process. The conditions must be
logical. The first condition is usually Blocked, the final condition must contain
all of the desired follow-on documents.
4. Classification
In the classification you define the attributes of the characteristics, that is, which
field values in which fields result in the determination of a certain release
strategy.
You can define several field values for multi-valued fields.
In doing so, please note that
• You cannot use jokers or placeholders
• Characteristics without a field value must also be empty in the document
Hint: Value intervals can only be specified for numerical values (e.g. an
interval from 10,000 to 15,000 EUR for the value of the requisition item).
Also note the special features of individual attributes:
• You have to use the internal designation for the item type
• Cost centers have ten places in the standard version and must be
created with zeros at the start
If you do not wish to restrict a characteristic, delete it from the release
class.
5. Release simulation
The release simulation function enables you to check which status a document
would acquire with this release strategy after having been released by a certain
release point.
Choose Simulate Release and effect release by double-clicking on the release
code. The system displays the status the document would acquire as a result of
this release.
6. Step 6: (Optional) defining a workflow
Here you can determine the recipient of a workflow if a specific release code is
determined that is intended for a workflow connection.
256 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Release Procedure
The determination is performed using a combination of the release group,
release code and plant.
Hint: Other settings are also required for the workflow. For example,
the workflow must be active and the individual workflow steps must
be assigned to the employee who is to receive the workflow in the
organizational structure of the workflow.
The following variations apply for purchasing documents:
• There are only processes with classification
• The communication structure which contains the fields for release characteristics
is called CEKCO
• No field selection key can be assigned to the release indicator.
Authorizations
Figure 71: Authorization Objects
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Unit 5: Release Procedure SCM520
The authorization object Release Code and Release Group in Purchasing
(M_EINK_FRG) determines which purchasing documents the user may release
and which release codes he or she may use to do so. The authorization object
M_EINK_FRG comprises the following fields:
• Release group
You use the release group to determine which purchasing documents the user
may release.
Example 1:
You have created different release groups for purchase orders for different plants
(for example, release group 10 for POs in plant 0001, release group 20 for POs
in plant 0002). Using the release group, you can now specify whether a user can
release POs for plant 0001 only, or for both plant 0001 and plant 0002.
Example 2:
You have created the following release groups for different document categories:
release group 01 for POs; 02 for RFQs; and 03 for contracts. Using the release
group, you can now specify whether the user can release RFQs only, or POs
and contracts as well.
• Release code
You use the release code to determine how the user may release purchasing
documents.
Example:
The following values have been defined in the authorization object for the user
Miller: release groups 01 and 02 (from example 2), and release code Z1.
User Miller may thus release POs and RFQs using release code Z1.
Hint: If you use the release procedure for requisitions without classification,
you must create authorizations for the authorization object Release Code in
Purchase Requisitions (M_BANF_FRG).
Authorization maintenance:
SAP Menu → Tools → Administration → User Maintenance → Role Administration
or
258 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Release Procedure
SAP Menu → Tools → Administration → User Maintenance → Authorizations and
Profiles (Manual Maintenance) → Edit Authorizations/Profiles Manually
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Unit 5: Release Procedure SCM520
260 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Release Procedure
Exercise 12: Document Release Procedure
Exercise Objectives
After completing this exercise, you will be able to:
• Release purchase requisitions and purchase orders
• Set up release procedures
Business Example
You wish to use a release procedure to ensure that requisitions and POs that exceed
a certain value limit are approved by various persons before the requested materials
can be ordered or the PO can be issued to the vendor.
Task 1:
Release purchase requisitions.
1. You have already created various requisitions, some of which need to be
approved. First check how many blocked requisition items there are for your
purchasing group Z##. Use a suitable list display for purchase requisitions
for this purpose.
Number of requisition items:__________________
Check the following information on the release status of a blocked purchase
requisition item:
Release indicator: _________________
Release strategy: __________________
Release points/codes: ______________
2. Take a look at the Customizing settings for the release procedure for purchase
requisitions (with classification).
On the basis of which criteria was release strategy ZZ assigned to the
requisition items?
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
Continued on next page
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Unit 5: Release Procedure SCM520
_________________________________________________
_________________________________________________
_________________________________________________
Which release point can signify approval without a prerequisite for release?
_________________________________________________
_________________________________________________
Which prerequisite must be fulfilled before release point Z2 can release a
purchase requisition item?
_________________________________________________
_________________________________________________
What is the status of a requisition item after just Z1 has effected release?
_________________________________________________
_________________________________________________
3. Approve all blocked purchase requisition items with release code Z1.
Use the collective release function for requisitions and enter the number of your
purchasing group Z## as a selection criterion on the initial screen.
4. After release has been effected, check whether the release indicator and the
release status of your requisition items have changed. Use a suitable list display
for purchase requisitions.
5. Now release the requisition items assigned to purchasing group Z## for the
issue of POs. Use code Z2 to effect release. What is the release status of the
items after their release?
Task 2:
Generate POs automatically and release them.
1. Some of the released requisition items have already been assigned to a source
of supply. You wish to convert the requisition items into purchase orders
automatically.
Use a suitable list display to determine the following data:
How many open, released, and assigned requisition items exist for your
purchasing group Z##?__________
Continued on next page
262 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Release Procedure
Which materials are requested for which plants in these items?
_________________________________________________
_________________________________________________
Which vendors have been assigned to the items?
_________________________________________________
_________________________________________________
2. For the requisition items from step 1 to be automatically converted into POs,
the Automatic Purchase Order indicator must have been set in the vendor and
material master records. Change the relevant master records by setting the
indicator for automatic PO generation.
3. Have your released and assigned purchase requisitions automatically converted
into POs.
Run the program after selecting via your purchasing group Z## and the relevant
vendor numbers.
4. Purchase orders generated and any other purchase orders you have created must
be approved if their total value is greater than 2,000 euros. Check in the purchase
order header to see if a release is necessary.
If a purchase order is blocked, call the release function for purchase orders and
release all blocked POs for purchasing group Z## with release code Z3.
Which release strategy has been assigned to these POs?
_________________________________________________
_________________________________________________
Is it possible to check the print preview of the purchase order for correctness
prior to releasing the PO?
_________________________________________________
_________________________________________________
Task 3:
Optional: Create new release procedure.
1. In your enterprise, users must enter requirement tracking numbers when creating
purchase requisitions. For requisitions created with the requirement tracking
number SCM520-##, you need a new release strategy and a new release code.
Continued on next page
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Unit 5: Release Procedure SCM520
You must therefore define a new release strategy for requisitions.
First define your own release code ## for release group 01.
Then define the new release strategy ## with the short description Strategy ##.
This should likewise be assigned to release group 01.
Assign release code ## to your release strategy. Confirm the release prerequisites
and statuses proposed by the system.
Define the criteria for your release strategy as follows:
Account assignment category blank
Material group SCM520
Plant 1000
Purchasing group Z##
Requirement tracking number SCM520–##
Total value of item > 1000 EUR
Document type NB (purchase requisition)
Save your release strategy.
2. Create a requisition for 100 pc of your material T-M520E## to test your new
release strategy. Use requirement tracking number SCM520-##.
Has the item been blocked? If so, which strategy was assigned?
_________________________________________________
_________________________________________________
264 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Release Procedure
Solution 12: Document Release Procedure
Task 1:
Release purchase requisitions.
1. You have already created various requisitions, some of which need to be
approved. First check how many blocked requisition items there are for your
purchasing group Z##. Use a suitable list display for purchase requisitions
for this purpose.
Number of requisition items:__________________
Check the following information on the release status of a blocked purchase
requisition item:
Release indicator: _________________
Release strategy: __________________
Release points/codes: ______________
a) SAP Menu → Logistics → Materials Management → Purchasing →
Purchase Requisition → List Displays → General
Use the dynamic selections and select the Release indicator field. Look for
documents with the release indicator S (blocked). There should be at least
three blocked requisition items. If you do not make this restriction, you can
see from the release indicator (R) in the list display whether a purchase
requisition item is blocked (indicator S).
b) Position the cursor on a blocked requisition item and choose Goto →
Release strategy or go to the purchase requisition via Environment →
Display requisition. The relevant information is shown on the Release
Strategy tab page.
Release indicator: S (Blocked)
Release strategy: ZZ
Release codes: Z1, Z2
2. Take a look at the Customizing settings for the release procedure for purchase
requisitions (with classification).
On the basis of which criteria was release strategy ZZ assigned to the
requisition items?
_________________________________________________
Continued on next page
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Unit 5: Release Procedure SCM520
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
Which release point can signify approval without a prerequisite for release?
_________________________________________________
_________________________________________________
Which prerequisite must be fulfilled before release point Z2 can release a
purchase requisition item?
_________________________________________________
_________________________________________________
What is the status of a requisition item after just Z1 has effected release?
_________________________________________________
Continued on next page
266 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Release Procedure
_________________________________________________
a) SAP Menu → Tools → Customizing → IMG → Execute Project
Choose SAP Reference IMG.
SAP Customizing Implementation Guide → Materials Management →
Purchasing → Purchase Requisition → Release Procedure → Procedure
with Classification → Set Up Procedure With Classification
Choose Release Strategies.
Select the entry for release strategy ZZ and access the detailed data for
that strategy via Goto → Details.
b) The criteria on the basis of which a requisition item is blocked are shown
under Classification. According to strategy ZZ, a requisition is blocked if
the following criteria are satisfied:
Account assignment category blank
Material group SCM520
Plant 1000
Purchasing group Z##
Requirement tracking number SCM520
Total value of item > 1000 EUR
Document type NB (purchase requisition)
c) The release prerequisites for release points Z1 and Z2 can be seen under
Release Prerequisites. The table shows that there are no prerequisites
for release with code Z1.
There is one prerequisite for release with code Z2. Z1 must have effected
release before Z2 is able to do so.
d) The possible release statuses of a requisition item can be seen under
Release Statuses. A requisition item that has been released with code Z1
has the release status A (fixed, RFQ).
3. Approve all blocked purchase requisition items with release code Z1.
Continued on next page
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Unit 5: Release Procedure SCM520
Use the collective release function for requisitions and enter the number of your
purchasing group Z## as a selection criterion on the initial screen.
a) SAP Menu → Logistics → Materials Management → Purchasing →
Purchase Requisition → Release → Collective Release
Select all requisitions and choose List → Save Release.
4. After release has been effected, check whether the release indicator and the
release status of your requisition items have changed. Use a suitable list display
for purchase requisitions.
a) SAP Menu → Logistics → Materials Management → Purchasing →
Purchase Requisition → List Displays → General
The requisition items that have been released with code Z1 have the release
indicator A (Fixed, RFQ).
5. Now release the requisition items assigned to purchasing group Z## for the
issue of POs. Use code Z2 to effect release. What is the release status of the
items after their release?
a) SAP Menu → Logistics → Materials Management → Purchasing →
Purchase Requisition → Release → Collective Release
After the release has been saved, the items have the release status B (fixed,
RFQ/PO).
Task 2:
Generate POs automatically and release them.
1. Some of the released requisition items have already been assigned to a source
of supply. You wish to convert the requisition items into purchase orders
automatically.
Use a suitable list display to determine the following data:
How many open, released, and assigned requisition items exist for your
purchasing group Z##?__________
Which materials are requested for which plants in these items?
_________________________________________________
_________________________________________________
Which vendors have been assigned to the items?
_________________________________________________
Continued on next page
268 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Release Procedure
_________________________________________________
a) SAP Menu → Logistics → Materials Management → Purchasing →
Purchase Requisition → List Displays → General
Set the Released requisitions only indicator on the initial screen and choose
Goto → Assignment overview in the list display.
There should be at least three already assigned purchase requisition items.
Material T-M520E## is requested for plant 1000 in all three requisition
items.
Vendors T-K520A## and T-K520B## are assigned to the items.
2. For the requisition items from step 1 to be automatically converted into POs,
the Automatic Purchase Order indicator must have been set in the vendor and
material master records. Change the relevant master records by setting the
indicator for automatic PO generation.
a) SAP Menu → Logistics → Materials Management → Material Master →
Material → Change → Immediately
The Automatic Purchase Order indicator is located among the
plant-specific purchasing data.
b) SAP Menu → Logistics → Materials Management → Purchasing →
Master Data → Vendor → Purchasing → Change (Current)
The Automatic Purchase Order indicator is located among the purchasing
data of the vendor master record.
3. Have your released and assigned purchase requisitions automatically converted
into POs.
Run the program after selecting via your purchasing group Z## and the relevant
vendor numbers.
a) SAP Menu → Logistics → Materials Management → Purchasing →
Purchase Order → Create → Automatically via Purchase Requisitions
On the initial screen, enter your purchasing group Z## and the relevant
vendors, and then choose Execute.
4. Purchase orders generated and any other purchase orders you have created must
be approved if their total value is greater than 2,000 euros. Check in the purchase
order header to see if a release is necessary.
If a purchase order is blocked, call the release function for purchase orders and
release all blocked POs for purchasing group Z## with release code Z3.
Continued on next page
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Unit 5: Release Procedure SCM520
Which release strategy has been assigned to these POs?
_________________________________________________
_________________________________________________
Is it possible to check the print preview of the purchase order for correctness
prior to releasing the PO?
_________________________________________________
_________________________________________________
a) SAP Menu → Logistics → Materials Management → Purchasing →
Purchase Order → Release → Collective Release
Choose Goto → Release strategy. The POs are subject to release strategy
ZY.
It is possible to check the print preview prior to releasing the PO. A
message record is generated for blocked POs for this purpose. However, the
message cannot be transmitted to the vendor until the PO has been released.
Release all purchase orders.
Hint: Using the BEST_ALV list scope will provide you with a
more user friendly interface for this transaction.
Task 3:
Optional: Create new release procedure.
1. In your enterprise, users must enter requirement tracking numbers when creating
purchase requisitions. For requisitions created with the requirement tracking
number SCM520-##, you need a new release strategy and a new release code.
You must therefore define a new release strategy for requisitions.
First define your own release code ## for release group 01.
Then define the new release strategy ## with the short description Strategy ##.
This should likewise be assigned to release group 01.
Assign release code ## to your release strategy. Confirm the release prerequisites
and statuses proposed by the system.
Define the criteria for your release strategy as follows:
Continued on next page
270 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Release Procedure
Account assignment category blank
Material group SCM520
Plant 1000
Purchasing group Z##
Requirement tracking number SCM520–##
Total value of item > 1000 EUR
Document type NB (purchase requisition)
Save your release strategy.
a) SAP Menu → Tools → Customizing → IMG → Execute Project
Choose SAP Reference IMG.
SAP Customizing Implementation Guide → Materials Management →
Purchasing → Purchase Requisition → Release Procedure → Procedure
with Classification → Set Up Procedure With Classification
Under Release Codes, choose New Entries to create the release code ##
with the description Group ## for release group 01.
Choose New Entries under Release Strategies. Enter release group 01 and
release strategy ## (strategy-##).
You need only a release point with the release code ##.
Go to the Release Prerequisites and Release Statuses and confirm all
system proposals.
Then choose Classification to assign the appropriate values to the
characteristics.
Navigate back until you can save your data.
2. Create a requisition for 100 pc of your material T-M520E## to test your new
release strategy. Use requirement tracking number SCM520-##.
Has the item been blocked? If so, which strategy was assigned?
_________________________________________________
_________________________________________________
a) SAP Menu → Logistics → Materials Management → Purchasing →
Purchase Requisition → Create
The item should have been blocked with strategy ##.
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Unit 5: Release Procedure SCM520
Lesson Summary
You should now be able to:
• Describe the function of and steps in a release procedure
• Release requisitions and purchase orders
• Set up your own release procedures in Customizing
272 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Unit Summary
Unit Summary
You should now be able to:
• Describe the function of and steps in a release procedure
• Release requisitions and purchase orders
• Set up your own release procedures in Customizing
2006/Q2 © 2006 SAP AG. All rights reserved. 273
Unit Summary SCM520
274 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Test Your Knowledge
Test Your Knowledge
1. Where in Customizing can you maintain release strategies for Purchasing?
Choose the correct answer(s).
□ A For all document types.
□ B For requisitions and purchasing documents separately according
to document type.
□ C For requisitions and purchase orders regardless of the document type
and for all other purchasing documents only with the appropriate
document type.
□ D For requisitions with the document type purchase order and for
purchase documents with all types of purchasing document, as these
are all stored in the same table.
2. What is the maximum number of release codes you can use in a release strategy?
Choose the correct answer(s).
□ A 2
□ B 5
□ C 8
□ D 10
3. No release procedure with classification is available for requisitions in your
system. For which document data can you set up a release procedure without
classification?
Choose the correct answer(s).
□ A Item category
□ B Account assignment category
□ C Plant
□ D Purchasing group
4. What can you not do with a purchase order that has not been released?
Choose the correct answer(s).
□ A Output it
□ B Change it
□ C Call the print view.
□ D Add another item to the purchase order.
2006/Q2 © 2006 SAP AG. All rights reserved. 275
Test Your Knowledge SCM520
Answers
1. Where in Customizing can you maintain release strategies for Purchasing?
Answer: B, D
Purchasing documents only have one table for release strategy. Distinction
can be made by purchasing document type if this is a component part of the
release strategy.
2. What is the maximum number of release codes you can use in a release strategy?
Answer: C
3. No release procedure with classification is available for requisitions in your
system. For which document data can you set up a release procedure without
classification?
Answer: B, C
See also the documentation for the IMG activity "Setting up procedure without
classification".
4. What can you not do with a purchase order that has not been released?
Answer: A
The purchase order can be changed at any time before the release is started
(answer B). After the release process has started it depends on the settings in the
release indicator assigned to the release step as to whether it can be changed or
not.
276 © 2006 SAP AG. All rights reserved. 2006/Q2
Unit 6
Specific Procurement Processes
Unit Overview
This unit describes how special procurement processes (such as invoicing plans and
subcontracting) can be replicated in the SAP system.
Unit Objectives
After completing this unit, you will be able to:
• Differentiate between periodic and partial invoicing plans
• Create periodic and partial invoicing plans
• Carry out the automatic settlement of invoicing plan items
• Explain the advantage of using blanket purchase orders in the procurement of
consumable materials
• Create blanket purchase orders
• Explain the subcontracting process from the purchasing viewpoint
• Create a subcontracting item
• Describe the possibilities afforded by the use of MPNs
Unit Contents
Lesson: Invoicing Plan ............................................................. 278
Exercise 13: Invoicing Plan ................................................... 287
Lesson: Blanket Purchase Order ................................................. 295
Lesson: Subcontracting ............................................................ 300
Exercise 14: Subcontracting .................................................. 307
Lesson: Manufacturer Part Number (MPN) Management (Optional) ........ 314
Exercise 15: Manufacturer Part Numbers (Optional) ...................... 321
2006/Q2 © 2006 SAP AG. All rights reserved. 277
Unit 6: Specific Procurement Processes SCM520
Lesson: Invoicing Plan
Lesson Overview
This lesson outlines how both regularly recurring payments and procurement
transactions with a fixed payment plan can be handled using invoicing plans.
Particularly advantageous is the automatic settlement option, which allows you to
generate invoices automatically in the background on the relevant due dates.
Lesson Objectives
After completing this lesson, you will be able to:
• Differentiate between periodic and partial invoicing plans
• Create periodic and partial invoicing plans
• Carry out the automatic settlement of invoicing plan items
Business Example
Through the use of invoicing plans for leasing agreements and suchlike, your
enterprise aims to considerably reduce the manual data entry effort in the purchasing
and invoice verification departments. You intend to have the invoices generated
automatically in the background on the relevant due dates.
Invoicing Plans
The invoicing plan is not an independent document type, but a particular type of
purchase order. The invoicing plan enables you to schedule the desired dates for
the creation of invoices relating to the planned procurement of materials or services
independently of the actual receipt of the goods or actual performance of the services.
It lists the dates on which you wish to create and then pay the invoices.
You have the system create the invoices automatically on the basis of the data in
the purchase order, thereby triggering payment of the vendor. It is also possible to
enter the invoice for an invoicing plan manually. Automatic settlement is carried
out using the transaction Logistics Invoice Verification → Automatic Settlement →
Invoicing Plan Settlement.
278 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Invoicing Plan
Figure 72: Invoicing Plans
There are two kinds of invoicing plan: periodic invoicing plans and partial
invoicing plans.
To be able to create an invoicing plan in a purchase order item
• A goods receipt or unvaluated goods receipt may not be provided for the
purchase order item
• The purchase order item must have an account assignment.
Before you can use automatic settlement, you and the vendor must have agreed to use
the automatic invoice creation facility. The AutoEvalGRSetmt Del. indicator must
be selected in the vendor master record.
If the indicator is not set in the vendor master record, it cannot be set in the purchase
order item either.
For periodic invoicing plans you should use a document type in which a validity
period must be entered in the header of the purchase order.
2006/Q2 © 2006 SAP AG. All rights reserved. 279
Unit 6: Specific Procurement Processes SCM520
Periodic Invoicing Plan
The periodic invoicing plan can be used for regularly recurring procurement
transactions, such as rental and lease installment payments. In the case of the periodic
invoicing plan, the net value of the PO item is invoiced on each due date.
Figure 73: Periodic Invoicing Plan
Example of a periodic invoicing plan:
The monthly rental for a training room is 500 EUR. This is charged to cost center 123.
The rental agreement with the landlord is valid for five years. The monthly rental is
renegotiated annually at the beginning of the year.
You create an appropriate invoicing plan type in Customizing. The invoicing plan type
determines that the invoicing dates for one year are generated automatically when the
invoicing plan is created. The dates are calculated in such a way that the rent can be
paid at the end of the month for the forthcoming month in each case.
280 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Invoicing Plan
You can specify in Customizing for Purchasing whether the dates are to be maintained
manually or whether the system is to put forward date proposals according to the
specified rules.
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Unit 6: Specific Procurement Processes SCM520
To create a periodic invoicing plan, proceed as follows:
1. Create a purchase order with document type FO (Framework Order) if possible
or enter the validity period in the document header. If the invoicing plan is to be
unlimited, leave the validity period end unfilled. You can fill this in later in the
case of a magazine subscription if you cancel this at some point for instance.
2. Maintain the desired material or service, its quantity and price, and the account
assignment category. In the item details, enter the relevant account assignment
data for the item.
Caution: The account assignment category cannot be changed once you
have created the item. Only the detailed data dependent on the account
assignment category, such as the specification of the cost center in the
case of account assignment category K, can be changed at any time.
3. Ensure that the indicators for GR and IR control are set correctly on the item
detail screen. The Goods Receipt indicator may only be set in combination
with the Goods Receipt Non-Valuated indicator. The InvoiceReceipt indicator
must be set. For the automatic creation of invoices, the ERS (evaluated receipt
settlement) indicator (indicator for automatic settlement) must be set. A further
prerequisite for automatic settlement is that a tax code and payment conditions
must be entered in the purchase order.
4. Choose the Invoicing Plan button in the item details on the Invoice tab page.
A window appears in which you can choose the desired invoicing plan type
from those predefined in Customizing.
If the Dialog Pur. Order indicator is set in Customizing for the invoicing plan
type, you obtain an overview of the invoicing dates determined by the system
on the basis of the settings. The invoicing date and the value to be invoiced are
displayed for each settlement period (for example, month). In the case of the
periodic invoicing plan, the value is the net value of the PO item.
You can change the date proposals and, if necessary, block individual invoicing
dates with regard to automatic invoice creation.
The Dates From and Dates To fields determine the period for the automatic
generation of invoicing dates.
If a horizon is specified in Customizing, it overrides the invoicing date proposals
stemming from the aforementioned fields.
With the In Advance indicator, you specify whether the invoice is to be created
for a period in advance or in arrears.
282 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Invoicing Plan
Partial Invoicing Plan
You can use the partial invoicing plan to invoice consumption material or service
items that are settled in stages (for example, in plant construction) or to invoice the
individual phases of a building project upon completion of each phase.
In a partial invoicing plan, you can designate certain dates as dates for down payments
for instance (billing rule 4 or 5). The amounts for these dates are not taken into
account in the sum total of the invoice items.
With the partial invoicing plan, the total value of the PO item is split over the
individual dates of the plan.
The partial invoicing plan is only of limited use for items where payment due dates
are event-dependent (such as building projects).
Figure 74: Partial Invoicing Plan
Example of a partial invoicing plan:
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Unit 6: Specific Procurement Processes SCM520
A total budget of 20,000 EUR has been provided for a market survey. 5,000 EUR is to
be paid upon completion of the initial analysis, 4,000 EUR after the survey has been
carried out, and the rest, amounting to 6,000 EUR, upon submission of the final report.
If you intend to have this survey carried out on a regular basis in future, it makes
sense to create a reference invoicing plan for partial invoicing plans in Customizing.
This can then be used as a template for the automatic generation of the appropriate
invoicing dates. Without a reference invoicing plan, you must specify the invoicing
dates in the invoicing plan manually.
The procedure for creating a partial invoicing plan is similar to that for creating a
periodic invoicing plan. In the case of a partial invoicing plan, too, specification of an
account assignment category is mandatory. The materials or services procured using
an invoicing plan cannot be procured for stock.
After maintaining the data in the PO item overview, choose a partial invoicing plan
type on the Invoice tab page in the item details. You obtain a date overview, in which
you can enter the desired dates manually. If a reference invoicing plan has been
created in Customizing, the system generates the relevant date proposals.
When creating a partial invoicing plan, you can flag a date as a date for a down
payment in the field B (billing/invoicing plan rule).
Caution: Once you have assigned an invoicing plan type to an item (for
example, partial invoicing plan), you cannot subsequently change it. If you
wish to assign a different invoicing plan type, you must delete the item and
create a new one.
284 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Invoicing Plan
Settlement
Figure 75: GR/IR Control
GR/IR control must be set up in such a way that only receipt of an invoice is expected
rather than a valuated goods receipt (or, in the case of services, rather than a valuated
service entry). Only a non-valuated goods receipt is possible. With regard to goods
receipt control, you can thus choose between two alternatives:
• Set both the Goods Receipt indicator and the GR Non-Valuated indicator
• Deactivate the Goods Receipt indicator
If you wish to use automatic settlement, the Evaluated Receipt Settlement indicator
must be set in addition to the Invoice indicator. The former indicator, which must
already have been set in the vendor master record, then appears as the default when
a purchase order is created for the vendor in question.
A further prerequisite for automatic settlement is the tax code, which must be set in
the item detail for an invoicing plan item.
The documents for settlement must also contain payment terms.
If, in the system, you have several PO items with invoicing plans that are set to
generate invoices on a variety of different dates, it is advisable to carry out a settlement
run for your invoicing plans on a daily basis.
2006/Q2 © 2006 SAP AG. All rights reserved. 285
Unit 6: Specific Procurement Processes SCM520
To carry out automatic settlement with regard to invoicing plans, proceed as follows:
1. After entering the selection criteria for invoicing plans requiring settlement
(company code, plant, vendor, purchasing document and item) on the selection
screen for automatic invoicing plan settlement, you can specify (as a processing
option) which rule the system is to apply when generating invoice documents
against the invoicing plan.
• Per vendor
• Per purchase order
• Per PO item
2. You can set the Test Run indicator to simulate the results of the settlement
(invoice generation) run.
On completion of the settlement run, you obtain a log listing the invoiced
transactions and drawing your attention to any errors that may have occurred.
The invoices generated through the automatic invoicing plan settlement run are
then processed further in Financial Accounting.
Hint: The invoicing plan settlement run can be carried out either online
or in the background.
You can generate a message for the invoice documents you have generated and then
send this to the vendor.
You can also settle invoicing plans manually if vendors create invoices and send
these to you.
Automatic settlement with regard to invoicing plans:
SAP Menu → Logistics → Materials Management → Logistics Invoice Verification
→ Automatic Settlement → Invoicing Plan Settlement
Customizing settings for invoicing plans:
SAP Customizing Implementation Guide → Materials Management → Purchasing
→ Purchase Order → Invoicing Plan
Hint: Further information on problems with invoicing plans can be found
in Note 499523.
286 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Invoicing Plan
Exercise 13: Invoicing Plan
Exercise Objectives
After completing this exercise, you will be able to:
• Create invoicing plans and carry out automatic settlement
Business Example
The use of invoicing plans can considerably reduce the manual data entry effort within
the purchasing department.
Task:
Create periodic invoicing plan.
1. You wish to record a rental agreement in the system in the form of a periodic
invoicing plan. For this purpose, the following data on the landlord must be
stored in a vendor master record:
Vendor number T-K520C##
Company code 1000
Purchasing organization 1000
Account group ZTMM
Search term SCM520
Country DE
Language DE
Reconciliation account 160000
Currency EUR
Terms of payment (purchasing) 0002
The rent is to be settled (invoiced and paid) automatically. Which indicator must
be set in the vendor master record for this purpose?
_________________________________________________
_________________________________________________
Set the relevant indicator in vendor master record T-K520C## and acknowledge
the message re GR-based invoice verification.
Continued on next page
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Unit 6: Specific Procurement Processes SCM520
2. Create the rental agreement with vendor T-K520C## as a purchase order of
document type FO (framework order).
The rental agreement begins on the first day of the current month and is valid for
12 months.
Enter the following item data:
Account assignment category K
Short text Office rent
Quantity 1
Unit of measure Month (Mon)
Price 4000 EUR per month
Material group SCM520
Plant 1000
GL account 400000
Cost center 1000
Since you do not expect a goods receipt for this item, change the relevant settings
regarding goods receipts on the Delivery tab page.
Hint: Check the settings for automatic settlement on the Invoice tab
page. Has the AutoEvalGRSetmt Del. indicator been adopted from the
vendor master record? If necessary, deselect the GR-Based Invoice
Verification indicator.
For the invoice to be generated automatically, a tax code (for example,
1I) must have been defined in the purchase order.
To create the invoicing dates, assign the invoicing plan type Period. Training
MM to the item. To do so, choose Invoicing Plan on the Invoice tab page.
What is the invoicing date of the first rental payment, and what status does
this date have?
_________________________________________________
_________________________________________________
Go back to the item overview and save the invoicing plan.
Continued on next page
288 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Invoicing Plan
3. Generate the invoice that is due according to the invoicing plan. Use the
following selection criteria for this purpose:
Company code 1000
Plant 1000
Vendor T-K520C##
Make sure the Test run indicator is not set.
Display the invoicing plan by branching from the payroll log display to the
purchase order.
Is invoicing complete for the first invoicing date? Check the invoice status.
_________________________________________________
_________________________________________________
4. Display the settings in Customizing for the periodic invoicing plan type MM
(Period. Training MM).
According to which date rule are the default values for the invoicing date
calculated?
_________________________________________________
_________________________________________________
Do invoice amounts for a settlement period become due for payment in advance
or in arrears?
_________________________________________________
_________________________________________________
Are the invoicing dates proposed automatically in the purchase order?
_________________________________________________
_________________________________________________
5. Unset the indicator for automatic settlement in vendor master record
T-K520C##.
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Unit 6: Specific Procurement Processes SCM520
Solution 13: Invoicing Plan
Task:
Create periodic invoicing plan.
1. You wish to record a rental agreement in the system in the form of a periodic
invoicing plan. For this purpose, the following data on the landlord must be
stored in a vendor master record:
Vendor number T-K520C##
Company code 1000
Purchasing organization 1000
Account group ZTMM
Search term SCM520
Country DE
Language DE
Reconciliation account 160000
Currency EUR
Terms of payment (purchasing) 0002
The rent is to be settled (invoiced and paid) automatically. Which indicator must
be set in the vendor master record for this purpose?
_________________________________________________
_________________________________________________
Set the relevant indicator in vendor master record T-K520C## and acknowledge
the message re GR-based invoice verification.
a) SAP Menu → Logistics → Materials Management → Purchasing →
Master Data → Vendor → Central → Create
To enable the rental payments to be settled automatically, the
AutoEvalGRSetmt Del. indicator must be set in the vendor master record.
2. Create the rental agreement with vendor T-K520C## as a purchase order of
document type FO (framework order).
The rental agreement begins on the first day of the current month and is valid for
12 months.
Continued on next page
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SCM520 Lesson: Invoicing Plan
Enter the following item data:
Account assignment category K
Short text Office rent
Quantity 1
Unit of measure Month (Mon)
Price 4000 EUR per month
Material group SCM520
Plant 1000
GL account 400000
Cost center 1000
Since you do not expect a goods receipt for this item, change the relevant settings
regarding goods receipts on the Delivery tab page.
Hint: Check the settings for automatic settlement on the Invoice tab
page. Has the AutoEvalGRSetmt Del. indicator been adopted from the
vendor master record? If necessary, deselect the GR-Based Invoice
Verification indicator.
For the invoice to be generated automatically, a tax code (for example,
1I) must have been defined in the purchase order.
To create the invoicing dates, assign the invoicing plan type Period. Training
MM to the item. To do so, choose Invoicing Plan on the Invoice tab page.
What is the invoicing date of the first rental payment, and what status does
this date have?
_________________________________________________
_________________________________________________
Continued on next page
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Unit 6: Specific Procurement Processes SCM520
Go back to the item overview and save the invoicing plan.
a) SAP Menu → Logistics → Materials Management → Purchasing →
Purchase Order → Create → Vendor/Supplying Plant Known
Change the document type from standard purchase order to framework
order. Specify the validity period of the rental agreement in the Validity
Start and Validity End fields.
The invoicing dates are generated on the basis of the invoicing plan type
defined in Customizing. The invoice date of the first rental payment is the
last day of the previous month. The status of this date is A (not processed).
3. Generate the invoice that is due according to the invoicing plan. Use the
following selection criteria for this purpose:
Company code 1000
Plant 1000
Vendor T-K520C##
Make sure the Test run indicator is not set.
Display the invoicing plan by branching from the payroll log display to the
purchase order.
Is invoicing complete for the first invoicing date? Check the invoice status.
_________________________________________________
_________________________________________________
a) SAP Menu → Logistics → Materials Management → Logistics Invoice
Verification → Automatic Settlement → Invoicing Plan Settlement
The first invoicing date has the status C (completely processed).
4. Display the settings in Customizing for the periodic invoicing plan type MM
(Period. Training MM).
According to which date rule are the default values for the invoicing date
calculated?
_________________________________________________
_________________________________________________
Do invoice amounts for a settlement period become due for payment in advance
or in arrears?
Continued on next page
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SCM520 Lesson: Invoicing Plan
_________________________________________________
_________________________________________________
Are the invoicing dates proposed automatically in the purchase order?
_________________________________________________
_________________________________________________
a) SAP Menu → Tools → Customizing → IMG → Execute Project
Choose SAP Reference IMG.
SAP Customizing Implementation Guide → Materials Management →
Purchasing → Purchase Order → Invoicing Plan → Invoicing Plan Types
→ Maintain Periodic Invoicing Plan Types
Select invoicing plan type MM and choose Goto → Details.
Hint: You can also call data from the purchase order by
double-clicking on the invoicing plan type.
The Invoice Date field in the invoicing plan contains the date rule 50,
meaning the invoice date is the last day of the month.
The invoice amounts are due in advance because the In Advance indicator
has been set.
The invoicing dates are proposed automatically because the Dialog
Purchase Order indicator has been set.
5. Unset the indicator for automatic settlement in vendor master record
T-K520C##.
a) SAP Menu → Logistics → Materials Management → Purchasing →
Master Data → Vendor → Central → Change
In vendor master record T-K520C##, unset the AutoEvalGRSetmt Del.
indicator.
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Unit 6: Specific Procurement Processes SCM520
Lesson Summary
You should now be able to:
• Differentiate between periodic and partial invoicing plans
• Create periodic and partial invoicing plans
• Carry out the automatic settlement of invoicing plan items
294 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Blanket Purchase Order
Lesson: Blanket Purchase Order
Lesson Overview
The use of blanket purchase orders enables you to simplify the procurement process
for low-value consumables and thus reduce costs. The aim of this lesson is to provide
a brief overview of the options afforded by the use of blanket purchase orders.
Lesson Objectives
After completing this lesson, you will be able to:
• Explain the advantage of using blanket purchase orders in the procurement of
consumable materials
• Create blanket purchase orders
Business Example
For some of the office supplies needed by your firm, you can simply phone your
vendor to give notification of your requirements. The goods are then delivered
directly to the individual offices, so that a confirmed goods receipt does not have to
be recorded in the system. To cover such transactions, you have created a blanket
purchase order in the system. The system checks each invoice you receive from the
vendor against the limit and validity period of the blanket PO.
Advantages of Blanket POs
With certain procurement transactions, the costs of procurement are disproportionately
high in relation to the value of the material or service involved. This is frequently the
case with office supplies (such as pencils and notepads) and services of relatively
minor importance (such as small repairs, cleaning work, and courier services), for
example.
Hint: You can only use a blanket purchase order for accounted items.
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Unit 6: Specific Procurement Processes SCM520
Figure 76: Requirement Value Versus Procurement Costs
Process costs can be in total contrast to a low requirement value and do not bear any
sort of relation to the value of materials or services procured. You can reduce these
process costs, which may be very high in the case of procurement costs, by using what
is known as a blanket purchase order instead of a standard purchase order. Such
a single long-term purchase order can be used to procure a variety of materials or
services whose modest value does not justify the high processing cost of issuing a
series of individual POs.
The main advantage of using blanket POs is the resultant reduction in order processing
costs. These are significantly lower because:
• The blanket PO is valid for a longer period.
• There is no goods receipt or service entry.
• It is not necessary to create PO items for individual procurement transactions.
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SCM520 Lesson: Blanket Purchase Order
Figure 77: Blanket Purchase Order
When creating a blanket PO, you should use document type FO (framework order).
With this document type, the Validity Start and Validity End header fields appear
automatically and Validity Start is defined as a mandatory entry field.
You must enter the item category B (Limit) and an accounting type in the PO item
overview. Entering this item category ensures the Limits tab page appears on the item
detail screen. There, you enter an overall limit and an expected value.
The overall limit represents the maximum value for which invoices referencing the
PO item can be posted without the system issuing messages. If the overall limit is
exceeded when an invoice is posted, the system issues a warning or error message,
depending on the settings in Customizing.
The expected value is the anticipated end value of the order placed with the vendor. If
you work with the release procedure for purchasing documents, this value can serve as
the basis for assigning this blanket PO to a release strategy. Controlling establishes the
PO commitment from this value. The system does not check whether the expected
value is exceeded when an invoice is posted with reference to a blanket order.
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Unit 6: Specific Procurement Processes SCM520
In the standard system, the account assignment category U (unknown) is allowed for
PO items of item category B. You need not specify the account assignment until
the time of invoice entry.
Hint: You can define which account assignment categories you allow in
conjunction with blanket purchase orders in Customizing. For more detailed
information on this subject, refer to Unit 8 (Selected Topics in Customizing).
When creating a blanket purchase order, you need enter neither an order quantity nor a
net price. As soon as the expected value is specified during the creation of the blanket
PO, it is automatically adopted as the net price.
298 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Blanket Purchase Order
Lesson Summary
You should now be able to:
• Explain the advantage of using blanket purchase orders in the procurement of
consumable materials
• Create blanket purchase orders
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Unit 6: Specific Procurement Processes SCM520
Lesson: Subcontracting
Lesson Overview
This lesson provides a brief overview of the subcontracting process from the
purchasing viewpoint. You will learn which special factors are involved when you
use item category L (subcontracting) and how you can use the automatic source
determination facility in connection with subcontracting.
Hint: The inventory management-relevant processes such as subsequent
allocation, physical inventory of the stock of material provided to vendor, etc.
are discussed in course SCM510 on inventory management.
Lesson Objectives
After completing this lesson, you will be able to:
• Explain the subcontracting process from the purchasing viewpoint
• Create a subcontracting item
Business Example
Subcontracting involves providing your vendor (that is, the subcontractor) with
components from which he manufactures a finished product. Your enterprise places
a purchase order for the finished product with the subcontractor. The components
required by, and subsequently provided to, the subcontractor to manufacture the
ordered product are listed in the purchase order. The components are determined via a
bill of material (BOM).
Subcontracting
Subcontracting is the process whereby a material you procure from a vendor requires
certain components to be produced and these are either provided by the orderer or
ordered by you from a third party and then delivered directly to the subcontractor.
300 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Subcontracting
Figure 78: Subcontracting: Overview
The material the subcontractor is to manufacture can be requested in a purchase
requisition and ordered via a purchase order or scheduling agreement item of the
category L (subcontracting). Item category L enables you to create subitems covering
the components to be provided to the subcontractor.
The individual component items can be:
• Entered manually, or
• Generated via the BOM explosion, if a BOM exists for the ordered material
The material to be ordered does not require a material master record. On the other
hand, components that are provided must have a material master record.
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Unit 6: Specific Procurement Processes SCM520
Figure 79: Master Data for Subcontracting
For a purchase requisition for subcontracting with a source to be generated from
within materials planning, the following prerequisites must be satisfied:
• A special procurement key for subcontracting must be set in the
material master record (MRP 2).
• At least one source of supply (subcontracting info record or outline purchase
agreement with subcontracting item) must exist.
• The MRP-relevant indicator must have been set for one of these sources of
supply in the source list. If several sources of supply exist, a quota arrangement
with the special procurement type L for subcontracting can be created.
• A BOM containing the components to be provided must exist.
If a requirement arises for a material with the special procurement key
"Subcontracting", a requisition with the item category L (subcontracting) or a planned
order with the "Subcontracting" special procurement key is generated during the
planning run. The item category L is assigned to a planned order when it is converted
to a purchase requisition item.
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SCM520 Lesson: Subcontracting
In the planning run, the system explodes the BOM and generates dependent
requirements for the components. The dependent requirements are included in the
net requirements calculation as specially designated dependent requirements (MRP
element SubReq).
To achieve targeted control of the provision of components to the subcontractor,
the latter can be defined as an MRP area for subcontractor. An MRP area is an
organizational unit for which separate materials planning can be carried out. In the
case of requirement undercoverage (shortage situation: not enough stock to cover a
requirement), a stock transfer reservation is generated for the components in the MRP
area. A reservation is created in the plant.
If you have not set up a separate MRP area for your subcontractor, you can determine
whether the components needed for the subcontracting item are available from
the vendor. You can also post the goods issue for the necessary components to be
provided to the subcontractor or create a delivery (outward delivery via shipping) in
the Subcontracting Stocks per Vendor transaction.
The goods receipt for the ordered material is entered with reference to the
subcontracting item. At the same time, consumption of the components is posted. It
should be noted that the quantity of components actually needed to make the ordered
product may differ from the quantity shown in the PO as provided for that purpose.
Hint: Ideally you should obtain a report on the component consumption on
delivery, particularly with materials not provided on a PO-related basis. You
can then enter any deviation in the component consumption directly when
posting the goods receipt.
Check stocks of materials provided to subcontractor:
SAP Menu → Logistics → Materials Management → Purchasing → Purchase Order
→ Reporting → SC Stocks per Vendor
You can store conditions and enter vendor-dependent purchasing data for
subcontracting in a subcontracting info record or in an outline purchase agreement
(contract or scheduling agreement).
In an outline agreement, an item of category L is created for the material to be
manufactured, without specification of the components to be provided to the
subcontractor. The fact that you do not enter the components until you create a
contract release order ensures that the current BOM is always determined. Similarly,
in the case of a scheduling agreement, the components are determined at the time
the delivery schedule lines are created.
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Unit 6: Specific Procurement Processes SCM520
You can also utilize the source determination facility with source lists and/or quota
arrangements in the subcontracting process if you have created subcontracting info
records or outline agreements. In the quota arrangement, you must enter the special
procurement type L (subcontracting).
In connection with the subcontracting process in purchasing, you should note the
following:
• If you change the PO or schedule line quantity, the quantities of the components
to be provided are changed proportionally providing the Fixed Quantity indicator
has not been set.
• If you change the delivery date, only the date on which the components are
required is recalculated; the components themselves are not redetermined from
the BOM. If the components are to be redetermined, a new BOM explosion
must be carried out
• The order date always appears as the default date required for the components.
Properties of Item Type L (Subcontracting)
The item category L (subcontracting) determines that subcontracting components have
to be provided for the manufacture of a material that is to be ordered. Information on
other item-category-dependent controls is available in Customizing for purchasing
under External Representation of Item Categories.
Hint: Item categories cannot be changed or redefined.
304 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Subcontracting
Figure 80: Controls Based on Item Category L
The use of item category L has the following effects on a PO item:
• The PO item can be created with or without a material master record. If a PO
item is created with a material number, specification of an account assignment
category is optional.
• The indicators for goods receipt and invoice receipt are set on the basis of the
Purchase Order Item Linked indicator.
• The GR indicator cannot be changed. This means that a goods receipt must be
posted against the purchase order. However, the IR indicator can be unset.
• The indicator for non-valuated goods receipt is not proposed; neither can it
be set manually.
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Unit 6: Specific Procurement Processes SCM520
306 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Subcontracting
Exercise 14: Subcontracting
Exercise Objectives
After completing this exercise, you will be able to:
• Reproduce the subcontracting process
Business Example
Subcontracting involves providing your vendor (that is, the subcontractor) with
components from which he manufactures a finished product. Your enterprise places
a purchase order for the finished product with the subcontractor. The components
required by, and subsequently provided to, the subcontractor to manufacture the
ordered product are listed in the purchase order.
Task:
Create subcontracting requirement.
1. Change the materials planning settings (MRP 2) for material R-B1## in plant
1000 as follows:
Special procurement type 30
Safety stock 50
2. Carry out the planning run for material R-B1## in plant 1000.
Hint: You should carry out single-level, single-item planning. Do not
carry out overall (total) planning (that is, planning for the entire plant
1000).
Then display the procurement element you have generated in the current
stock/requirements list.
Has an item category been assigned to the purchase requisition?
_________________________________________________
_________________________________________________
Have subcontracting components been assigned to the requisition item? If so,
which components are involved and what is the required quantity in each case?
Continued on next page
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Unit 6: Specific Procurement Processes SCM520
_________________________________________________
_________________________________________________
_________________________________________________
3. Create a subcontracting info record with the following data:
Vendor T-K520C##
Material R-B1##
Purchasing organization 1000
Plant 1000
Info type Subcontracting
Planned delivery time 8 days
Purchasing group Z##
Standard quantity 50
Net price 45 EUR per pc
4. Convert the requisition into a purchase order for vendor T-K520C##. Must you
enter an order price?____________________________
5. Post the goods issue from storage location 0001 for the components required
by the subcontractor using the transaction Purchase Order → Reporting →
SC Stocks per Vendor.
Has the value of the stock booked out also been recorded?
6. Post a goods receipt against this PO to storage location 0001. You receive a
partial delivery of 20 pc.
Display the material document. Interpret the individual lines.
Does an accounting document exist?
308 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Subcontracting
Solution 14: Subcontracting
Task:
Create subcontracting requirement.
1. Change the materials planning settings (MRP 2) for material R-B1## in plant
1000 as follows:
Special procurement type 30
Safety stock 50
a) SAP Menu → Logistics → Materials Management → Material Master →
Material → Change → Immediately
2. Carry out the planning run for material R-B1## in plant 1000.
Hint: You should carry out single-level, single-item planning. Do not
carry out overall (total) planning (that is, planning for the entire plant
1000).
Then display the procurement element you have generated in the current
stock/requirements list.
Has an item category been assigned to the purchase requisition?
_________________________________________________
_________________________________________________
Have subcontracting components been assigned to the requisition item? If so,
which components are involved and what is the required quantity in each case?
_________________________________________________
_________________________________________________
Continued on next page
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Unit 6: Specific Procurement Processes SCM520
_________________________________________________
a) SAP Menu → Logistics → Materials Management → Material
Requirements Planning (MRP) → MRP → Planning → Single-Item,
Single-Level
Carry out the planning run for material R-B1##. Confirm the message to
say you have checked the input parameters.
b) SAP Menu → Logistics → Materials Management → Material
Requirements Planning (MRP) → MRP → Evaluations → Stock/Reqmts
List
Display the details of the purchase requisition generated as a result of the
planning (Details of Element). The requisition item has been assigned
category L.
The subcontracting components R-T1## (required quantity 40 pc), R-T2##
(required quantity 40 pc), and R-T3## (required quantity 320 pc) were
calculated from the BOM (Material data tab page) assigned to material
R-B1##.
3. Create a subcontracting info record with the following data:
Vendor T-K520C##
Material R-B1##
Purchasing organization 1000
Plant 1000
Info type Subcontracting
Planned delivery time 8 days
Purchasing group Z##
Standard quantity 50
Net price 45 EUR per pc
a) SAP Menu → Logistics → Materials Management → Purchasing →
Master Data → Info Record → Create
Continued on next page
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SCM520 Lesson: Subcontracting
4. Convert the requisition into a purchase order for vendor T-K520C##. Must you
enter an order price?____________________________
a) SAP Menu → Logistics → Materials Management → Purchasing →
Purchase Order → Create → Vendor/Supplying Plant Known
Hint: You can also generate the purchase order directly from the
current stock/requirements list. To do this double-click on the
requisition you have generated and activate the button –> Purchase
Order
The order price is adopted from the subcontracting info record.
5. Post the goods issue from storage location 0001 for the components required
by the subcontractor using the transaction Purchase Order → Reporting →
SC Stocks per Vendor.
Has the value of the stock booked out also been recorded?
a) SAP Menu → Logistics → Materials Management → Purchasing →
Purchase Order → Reporting → SC Stocks per Vendor
On the initial screen, select by vendor T-K520C##.
Select the individual lines and post the goods issue via Edit → Post Goods
Issue from storage location 0001.
This goods issue posting causes the relevant quantity of the materials to be
transferred to stock with subcontractor. The value of this goods issue is not
posted until the receipt of the ordered material is posted.
6. Post a goods receipt against this PO to storage location 0001. You receive a
partial delivery of 20 pc.
Display the material document. Interpret the individual lines.
Continued on next page
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Unit 6: Specific Procurement Processes SCM520
Does an accounting document exist?
a) SAP Menu → Logistics → Materials Management → Inventory
Management → Goods Movement → Goods Movement (MIGO)
Use the search help to find the PO issued to vendor T-K520C## and
confirm the input with Enter.
Close the detailed data so that the line of the item overview is ready to
accept input.
Change the quantity of the item to 20 pc and set the OK indicator.
Post the goods receipt.
b) Choose Display and Material Document to view the material document
you have just posted.
Four items have been posted:
The receipt of 20 pc of material R-B1## was posted with movement type
101.
The proportional consumption for the three components provided to the
subcontractor (R-T1##, R-T2## and R-T3##) with movement type 543
(goods issue, issue to SC stock).
Choose the FI/CO documents on the Document Info tab page to view the
relevant accounting document.
312 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Subcontracting
Lesson Summary
You should now be able to:
• Explain the subcontracting process from the purchasing viewpoint
• Create a subcontracting item
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Unit 6: Specific Procurement Processes SCM520
Lesson: Manufacturer Part Number (MPN) Management
(Optional)
Lesson Overview
Manufacturer part numbers (MPNs) enable the material or part number used by the
manufacturer to be used in the procurement process along with the one used by your
own enterprise. This lesson outlines the prerequisites for the use of manufacturer part
numbers and the advantages, particularly in the procurement of spare parts.
Lesson Objectives
After completing this lesson, you will be able to:
• Describe the possibilities afforded by the use of MPNs
Business Example
The procurement of spare parts for some of your production equipment is handled
through a dealer. However, the latter requires you to specify the manufacturer part
number in each purchase order. In addition, your dealer grants different concessions
on the various MPN materials, which you wish to record in the system.
Manufacturer Part Numbers: Possible Uses
You may wish to influence the source or quality of materials that you do not order
direct from the manufacturer. To this end, you can inform the vendor from whom you
procure a certain material (that is, a vendor who acts as a middleman, or dealer) of the
desired manufacturer's name and the part number used by the latter for the material.
You can also let your vendor know precisely which of the manufacturer's plants you
wish to source the material from.
The vendor is notified of the manufacturer's part number, the external description
used by the manufacturer, and - if applicable - the desired manufacturer plant in the
purchasing document that is sent to him.
Example:
Your vendor procures ball bearings for resale from the manufacturers Snyder Co.
and Miller Corp. Since the quality of Snyder ball bearings does not satisfy your
requirements, you wish to have the Miller product. You inform your vendor of this by
specifying the manufacturer and the manufacturer part number in the purchase order.
314 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Manufacturer Part Number (MPN) Management (Optional)
Figure 81: Manufacturer part number
You can use the manufacturer part number (MPN) in the procurement process along
with your internal (that is, your firm's own) material number.
Stocks are managed only under your internal material number. Likewise, material
requirements planning is only carried out with respect to your internal material
number. Once the goods receipt into stock is posted for the ordered MPN materials,
any additional MPN information on the material is lost.
Material valuation, too, is based exclusively on your internal material number.
You can store the manufacturer name, manufacturer number, and specific material
designations and texts in MPN material master records.
You have the option of creating purchasing info records with special conditions and
control data for MPN materials. The source determination process for MPN materials
can be controlled with the aid of source lists and quota arrangements.
If you wish to check whether a certain manufacturer part may be ordered and used,
you should use the approved manufacturer parts list (AMPL).
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Unit 6: Specific Procurement Processes SCM520
Prerequisites and Master Data
The following preconditions must be satisfied before you can work with manufacturer
part numbers:
1. The general use of MPNs must be activated in Customizing.
2. At least one manufacturer part profile must be defined in Customizing.
3. A master record must be created for your company's own material in each case.
4. If there is more than one MPN material, further MPN material master records
must be created.
Individual prerequisites are discussed in more detail in the following:
Activate MPN usage and define manufacturer part profile
Manufacturer part profiles needed in order to work with manufacturer parts are created
in Customizing for purchasing.
Figure 82: Prerequisites in Customizing
316 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Manufacturer Part Number (MPN) Management (Optional)
Manufacturer part profiles enable you to specify, for each of your firm's own materials,
the conditions under which the MPN material may be used in the procurement process.
In the profile, you can specify the following (among other things):
• Whether it is mandatory to enter an MPN material in the purchase order
• Whether purchasing info records are created for your firm's own material or
for the MPN materials
• Whether MPN materials can be changed in the procurement process
• Whether the system is to check the approved manufacturer parts list when an
MPN material is entered (AMPL management)
• Whether the purchase order text for your firm's own material or the MPN
material is used
• Whether the manufacturer must be entered as a partner (HS partner role) in the
vendor master record for the use of AMPL
Hint: Note that where a change is made to the MPN material when posting
the goods receipt, new price determination is not possible. If the parts
have different prices, you should override the change using an appropriate
manufacturer profile or ensure that the purchase order is changed accordingly
before the goods receipt is posted.
You enter the MPN profile in the purchasing view of the master record for your
internal material.
Activate MPN usage:
(SAP Customizing Implementation Guide → Logistics - General → Material Master
→ Basic Settings → Make Global Settings)
Create manufacturer part profile:
SAP Customizing Implementation Guide → Materials Management → Purchasing →
Material Master → Define Manufacturer Part Profile
Hint: If the list of permitted MPN parts is activated in the manufacturer
profile, manufacturer master records with the account group MNFR must
also be available.
Creating MPN material master records
When you have made the necessary settings in Customizing and have created all
necessary manufacturer master records, you can create the material master records.
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Unit 6: Specific Procurement Processes SCM520
Figure 83: Material Master Records
If you work with manufacturer part numbers, the number of manufacturers of a part
corresponding to your internal material determines the number of material master
records you have to create.
• If there is just one manufacturer part number for one of your internal materials,
you can enter it and the manufacturer directly in the master record for your
internal material. In this case, you need not create an MPN material.
• If there are several manufacturer part numbers for your internal material, you
must create MPN material master records with the material type HERS. In the
purchasing view for the MPN material master records, enter the manufacturer
part number and your own company-specific, inventory-managed material.
Depending on the manufacturer part profile, it may also be necessary to enter
the manufacturer.
318 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Manufacturer Part Number (MPN) Management (Optional)
If you wish to define different prices for different MPN materials corresponding to
one of your internal materials, you should create purchasing info records not for your
firm's own material but for the MPN materials. To do so, you must stipulate in the
MPN profile that purchasing info records can be created for MPN materials only. You
cannot then create an info record for your internal material.
You can always create contracts for both the MPN material and your internal
inventory-managed material. If you do not specify the MPN material in the contract
itself, you can do so in subsequent contract release orders.
Figure 84: Source Determination for MPN Materials
When creating a purchase requisition, you can enter either the internal material or
the MPN material in the item overview. If you enter the MPN material, the system
converts it into the internal material - that is, in the item overview, you always see the
number of the internal material and the MPN. The MPN material is displayed in the
item details on the Source of Supply tab page.
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Unit 6: Specific Procurement Processes SCM520
The automatic source determination process then takes place according to the same
rules that apply to the source determination process without the use of MPN materials.
If you have stored more than one source of supply per MPN material in the system, you
can control the source determination process using a source list or quota arrangement.
If an MPN requirement has been set in the relevant manufacturer part profile, you
must specify an MPN material instead of the firm's own material in every purchase
order and in every scheduling agreement. If no MPN requirement has been defined in
the manufacturer part profile for the material to be procured, you can enter either the
MPN material or your internal material.
320 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Manufacturer Part Number (MPN) Management (Optional)
Exercise 15: Manufacturer Part Numbers
(Optional)
Exercise Objectives
After completing this exercise, you will be able to:
• Create MPN materials and use them in purchasing
Business Example
In your enterprise, you use a material that you procure from a middleman. Since the
middleman requires the exact name of the manufacturer and the manufacturer's part
number in purchase orders you issue to him, you use MPN materials.
Task 1:
Create MPN material master record.
1. Create a new material master record with the following data:
Material number T-M520F##
Industry sector Mechanical engineering
Material type Non-stock material (NLAG)
Views Purchasing
Plant 1000
Description Ball bearings
Base unit of measure pc
Purchasing group Z##
Material group 001
Manufacturer part profile 2001
2. Display the settings for manufacturer part profile 2001 in Customizing.
Which functions for MPN materials have been activated?
_________________________________________________
_________________________________________________
_________________________________________________
Continued on next page
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Unit 6: Specific Procurement Processes SCM520
_________________________________________________
3. Material T-M520F## is procured from a middleman. The middleman obtains
the material from two manufacturers. Create two material master records for
MPN materials with the following data:
1st material:
Material number T-M520F##-A
Industry sector Mechanical engineering
Material type Manufacturer part
Views Purchasing
Description Ball bearing F##-1
Inventory-managed Material T-M520F##
Manufacturer part number A-1234
Material group 001
2nd. material:
Material number T-M520F##-B
Industry sector Mechanical engineering
Material type Manufacturer part
Views Purchasing
Description Ball bearing F##-2
Inventory-managed Material T-M520F##
Manufacturer part number B–9876
Material group 001
Continued on next page
322 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Manufacturer Part Number (MPN) Management (Optional)
Task 2:
Purchase MPN materials.
1. Vendor T-K520C## supplies materials T-M520F##-A and T-M520F##-B to
purchasing organization 1000 subject to different conditions. Create two info
records with the following data:
Hint: Ensure that you use the standard infotype. The subcontracting
info type may also be selected as a default value from the last lesson.
Material Price Further data
T-M520F##-A 90 EUR Planned delivery time 10
days, purchasing group
Z##, standard quantity
10
T-M520F##-B 110 EUR Planned delivery time 12
days, purchasing group
Z##, standard quantity
10
2. You need 4 pc of material T-M520F##-A for cost center 1000. Create a
purchase requisition for plant 1000. The valuation price amounts to 100 EUR.
Make sure that the indicator for source determination has been set.
Which material number has been adopted in the item overview screen?
_________________________________________________
_________________________________________________
Which info record has been assigned to the purchase requisition item?
3. Convert the requisition into a purchase order. Create a second PO item: 2 pc of
MPN material T-M520F##-B are needed in plant 1000 for cost center 1000.
Which conditions were determined?
Save the PO and then display it. Check the print preview of the PO. Is the
information on the manufacturer and the MPN shown in the print preview?
Continued on next page
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Unit 6: Specific Procurement Processes SCM520
4. Post the goods receipt against the PO from task 2, step 3. Instead of 2 pc of the
MPN material T-M520F##-B, the vendor has delivered a total of 6 pc (4 + 2) of
MPN material T-M520F##-A. To be able to post the goods receipt, change the
MPN number for the second item. Post the goods receipt.
Why is it possible to change the MPN material number at all at the time of
goods receipt?
_________________________________________________
_________________________________________________
324 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Manufacturer Part Number (MPN) Management (Optional)
Solution 15: Manufacturer Part Numbers
(Optional)
Task 1:
Create MPN material master record.
1. Create a new material master record with the following data:
Material number T-M520F##
Industry sector Mechanical engineering
Material type Non-stock material (NLAG)
Views Purchasing
Plant 1000
Description Ball bearings
Base unit of measure pc
Purchasing group Z##
Material group 001
Manufacturer part profile 2001
a) SAP Menu → Logistics → Materials Management → Material Master →
Material → Create (General) → Immediately
2. Display the settings for manufacturer part profile 2001 in Customizing.
Which functions for MPN materials have been activated?
_________________________________________________
_________________________________________________
_________________________________________________
Continued on next page
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Unit 6: Specific Procurement Processes SCM520
_________________________________________________
a) SAP Menu → Tools → Customizing → IMG → Execute Project
Choose SAP Reference IMG.
SAP Customizing → Implementation Guide → Materials Management →
Purchasing → Material Master → Define Manufacturer Part Profile
Select the entry for profile 2001 and choose Goto → Details.
The functions MPN mandatory, Change in MPN, and Info Records for
manufacturer part number have been activated.
3. Material T-M520F## is procured from a middleman. The middleman obtains
the material from two manufacturers. Create two material master records for
MPN materials with the following data:
1st material:
Material number T-M520F##-A
Industry sector Mechanical engineering
Material type Manufacturer part
Views Purchasing
Description Ball bearing F##-1
Inventory-managed Material T-M520F##
Manufacturer part number A-1234
Material group 001
2nd. material:
Material number T-M520F##-B
Industry sector Mechanical engineering
Material type Manufacturer part
Views Purchasing
Description Ball bearing F##-2
Continued on next page
326 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Manufacturer Part Number (MPN) Management (Optional)
Inventory-managed Material T-M520F##
Manufacturer part number B–9876
Material group 001
a) SAP Menu → Logistics → Materials Management → Material Master →
Material → Create (General) → Immediately
Task 2:
Purchase MPN materials.
1. Vendor T-K520C## supplies materials T-M520F##-A and T-M520F##-B to
purchasing organization 1000 subject to different conditions. Create two info
records with the following data:
Hint: Ensure that you use the standard infotype. The subcontracting
info type may also be selected as a default value from the last lesson.
Material Price Further data
T-M520F##-A 90 EUR Planned delivery time 10
days, purchasing group
Z##, standard quantity
10
T-M520F##-B 110 EUR Planned delivery time 12
days, purchasing group
Z##, standard quantity
10
a) SAP Menu → Logistics → Materials Management → Purchasing →
Master Data → Info Record → Create
2. You need 4 pc of material T-M520F##-A for cost center 1000. Create a
purchase requisition for plant 1000. The valuation price amounts to 100 EUR.
Make sure that the indicator for source determination has been set.
Which material number has been adopted in the item overview screen?
_________________________________________________
_________________________________________________
Continued on next page
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Unit 6: Specific Procurement Processes SCM520
Which info record has been assigned to the purchase requisition item?
a) SAP Menu → Logistics → Materials Management → Purchasing →
Purchase Requisition → Create
In the item overview, the MPN material number is replaced by the firm's
own material number. On the Material Data tab page, you can see that this
is a requirement for an MPN material.
The system has assigned the appropriate info record to the MPN material
T-M520F##-A.
3. Convert the requisition into a purchase order. Create a second PO item: 2 pc of
MPN material T-M520F##-B are needed in plant 1000 for cost center 1000.
Which conditions were determined?
Save the PO and then display it. Check the print preview of the PO. Is the
information on the manufacturer and the MPN shown in the print preview?
a) SAP Menu → Logistics → Materials Management → Purchasing →
Purchase Order → Create → Vendor/Supplying Plant Known
When the requisition item is converted into a PO item, the MPN material
number is adopted in the item overview.
For the second item, the system determines conditions amounting to 110
EUR. These conditions are stored in the info record for the MPN material
T-M520F##-B.
4. Post the goods receipt against the PO from task 2, step 3. Instead of 2 pc of the
MPN material T-M520F##-B, the vendor has delivered a total of 6 pc (4 + 2) of
MPN material T-M520F##-A. To be able to post the goods receipt, change the
MPN number for the second item. Post the goods receipt.
Why is it possible to change the MPN material number at all at the time of
goods receipt?
_________________________________________________
Continued on next page
328 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Manufacturer Part Number (MPN) Management (Optional)
_________________________________________________
a) SAP Menu → Logistics → Materials Management → Inventory
Management → Goods Movement → Goods Movement (MIGO)
Search for the purchase order for vendor T-K520C## using the input help
and confirm the input with Enter.
Close the detailed data so that all lines of the item overview are ready
to accept input.
Shift the item overview to the right until the fields with the MPN material
numbers appear. Change the second line as appropriate and set the OK
indicator for both items.
You can change the MPN number because such a change is allowed
according to MPN profile 2001.
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Unit 6: Specific Procurement Processes SCM520
Lesson Summary
You should now be able to:
• Describe the possibilities afforded by the use of MPNs
330 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Unit Summary
Unit Summary
You should now be able to:
• Differentiate between periodic and partial invoicing plans
• Create periodic and partial invoicing plans
• Carry out the automatic settlement of invoicing plan items
• Explain the advantage of using blanket purchase orders in the procurement of
consumable materials
• Create blanket purchase orders
• Explain the subcontracting process from the purchasing viewpoint
• Create a subcontracting item
• Describe the possibilities afforded by the use of MPNs
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Unit Summary SCM520
332 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Test Your Knowledge
Test Your Knowledge
1. Which operations are periodic invoicing plans suitable for?
Choose the correct answer(s).
□ A Rental payments
□ B Magazine subscriptions
□ C Telephone bills
□ D Credit card settlements
2. Which of the following statements apply to blanket purchase orders?
Choose the correct answer(s).
□ A The administrative cost of using blanket POs is very high.
□ B Blanket POs are only suitable for the procurement of consumable
materials (materials intended for direct consumption).
□ C Blanket POs are especially suitable for the procurement of stock
materials.
□ D Item category B has the effect that no goods receipt can be posted.
□ E The account assignment need not be known at the time of ordering.
3. What identifies a subcontracting item in a purchase order?
Choose the correct answer(s).
□ A Item category for subcontracting
□ B An account assignment category must also be used in conjunction
with the subcontracting item category.
□ C One component at minimum must be provided.
□ D The material ordered and material provided can be identical.
4. The stock posting is posted for a subcontracting item on goods receipt using
which value?
Choose the correct answer(s).
□ A Delivery quantity * order price
□ B For price control S (standard price): Delivery quantity * standard
price
□ C For price control V (moving average price): delivery quantity * value
of components
□ D For price control V (moving average price): delivery quantity * order
price + value of components
2006/Q2 © 2006 SAP AG. All rights reserved. 333
Test Your Knowledge SCM520
Answers
1. Which operations are periodic invoicing plans suitable for?
Answer: A, B
Periodic invoicing plans are not suitable for telephone bills and credit card
settlements as these are for a different amount each month.
2. Which of the following statements apply to blanket purchase orders?
Answer: B, D, E
Blanket purchase orders can be used only for the procurement of consumable
materials (materials intended for direct consumption). The procurement process
is simplified by virtue of the facts that no goods receipt can be posted and that
the account assignment need not be known at the time the purchase order is
created. Administrative costs are thus reduced.
3. What identifies a subcontracting item in a purchase order?
Answer: A, C, D
The material ordered can be identical with the material provided (answer D).
This is known as recursion. This is a good idea for repairs to inventory-managed
materials for example.
4. The stock posting is posted for a subcontracting item on goods receipt using
which value?
Answer: B, D
334 © 2006 SAP AG. All rights reserved. 2006/Q2
Unit 7
Vendor Evaluation
Unit Overview
This unit provides you with an overview of vendor evaluation. In particular, you will
learn about scoring levels, various types of evaluation criteria, and ways of carrying
out vendor evaluation.
Unit Objectives
After completing this unit, you will be able to:
• Differentiate between evaluation levels and the various types of evaluation
criteria
• Carry out the vendor evaluation process
• Describe the process of awarding scores for automatic subcriteria
• Differentiate between and apply the various reports and analyses that are
available for vendor evaluation purposes
Unit Contents
Lesson: Vendor Evaluation ........................................................ 336
Exercise 16: Vendor Evaluation .............................................. 363
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Unit 7: Vendor Evaluation SCM520
Lesson: Vendor Evaluation
Lesson Overview
You can use the vendor evaluation functionality to support the process of selecting
sources of supply. This unit provides you with an overview of vendor evaluation.
In particular, it provides information on existing scoring levels, various types of
evaluation criteria, and the different approaches to vendor evaluation. Three examples
illustrate how vendor scores are calculated internally on the basis of your Customizing
settings.
Lesson Objectives
After completing this lesson, you will be able to:
• Differentiate between evaluation levels and the various types of evaluation
criteria
• Carry out the vendor evaluation process
• Describe the process of awarding scores for automatic subcriteria
• Differentiate between and apply the various reports and analyses that are
available for vendor evaluation purposes
Business Example
Your company wants to evaluate its vendors based on different criteria. This
evaluation may be useful in negotiations with the vendor.
A precondition for the use of vendor evaluation is that you previously specify in
Customizing the criteria by which your vendors are to be evaluated and how which
aspects of their performance are to be rated.
Vendor Evaluation Functions
The vendor evaluation supports you in optimizing your procurement processes for both
materials and external services. In an SAP system, vendor evaluation is completely
integrated into the component MM - Purchasing within Materials Management.
Vendor evaluation accesses basic data from materials management, data from
inventory management (for example, goods receipts), and data stored in the Logistics
Information System (LIS). Vendor evaluation also makes use of data from quality
management. This can include the results of incoming inspections or quality audits,
for example.
336 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Vendor Evaluation
Vendor evaluation supports you in selecting sources of supply and in the ongoing
monitoring of existing supply relationships. You can quickly identify any difficulties
that may arise during the procurement process and take remedial measures in
collaboration with the relevant vendor on the basis of detailed information.
Hint: When you are executing procurement transactions with mySAP SRM
, you should use the vendor evaluation in mySAP SRM because all the
evaluation data can be combined there. In ECC 6.0, the data from mySAP
SRM is not available.
Figure 85: Vendor Evaluation Analyses
In order for a particular vendor's performance to be assessed in comparison with that of
others, a scoring range must be used. The SAP system provides a scoring range of 1 to
100 points, making the vendors' performance in relation to the main evaluation criteria
measurable. This scale is easy to read and, at the same time, permits fine graduation
in the representation of the performance of individual vendors. The scoring range is
defined when the system is configured. The maximum possible points score is 999.
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Unit 7: Vendor Evaluation SCM520
The organizational level at which vendors are evaluated is the purchasing organization;
each purchasing organization evaluates the vendors assigned to it. A system-supported
comparison of vendor evaluations at company code or plant level is not possible
in the standard system.
Various analyses are available to interpret the results of vendor evaluations. For
example, you can generate ranking lists of the evaluated vendors by the overall score
for all materials, for a special material group only, or for a special material. The
general scores of a vendor can be compared with those for a special material or with
those for a special material group.
Figure 86: Vendor Evaluation in Source Determination
338 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Vendor Evaluation
Vendor assessment is also integrated into source determination and the quotation price
comparison list. This improves the decision basis when selecting sources in cases
where there are two same-price quotations.
Hint: If you invoke the vendor evaluation facility from within the source
determination process, you obtain the ranking list for all materials. From
there, however, you can invoke the ranking list for a specific material or
material group.
In the quotation price comparison list, the presentation of results depends on
the cursor position from which you call up the menu path Environment →
Vendor Evaluation:
• From the headers bidder, material and submission, the overall
evaluation of the respective vendor is displayed.
• From the table fields price, value and rank you obtain the evaluation
comparison between vendor and material.
• From the column fields material and quantity you obtain the ranking list
of all vendors in the quotation price comparison list.
List displays for vendor evaluation:
SAP Menu → Logistics → Materials Management → Purchasing → Master Data →
Vendor Evaluation → List Displays → Ranking Lists
SAP Menu → Logistics → Materials Management → Purchasing → Master Data →
Vendor Evaluation → List Displays → Evaluations per Material/Material Group
SAP Menu → Logistics → Materials Management → Purchasing → Master Data →
Vendor Evaluation → Compare Evaluations
SAP Menu → Logistics → Materials Management → Purchasing → Master Data →
Vendor Evaluation → Standard Analysis
SAP Menu → Logistics → Materials Management → Purchasing → Master Data →
Vendor Evaluation → Changes
Scores in Vendor Evaluation
Main criteria constitute the basis for assessing a vendor's performance. The system
computes a vendor's overall score from the scores for the main criteria. On the basis
of the overall score, you can compare various vendors with each other without taking
details of the evaluation into account. The scores for the main criteria reflect a
vendor's performance more precisely than the overall score.
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Unit 7: Vendor Evaluation SCM520
By comparing scores at the main criteria level, for example, you may find that
although vendor Smith & Co. achieved a lower overall score than vendor Acme Corp.,
Smith did better than Acme with regard to the main criterion Price. If the price of a
material is the deciding factor for the placement of your next purchase order, Smith &
Co. would be given preference over Acme Corp.
Figure 87: Scoring Levels in Vendor Evaluation
The type and number of main criteria can be specified on an enterprise-specific
basis. The system supports a maximum of 99 main criteria. For each purchasing
organization, it has to be decided which and how many main criteria are to comprise
the basis for the overall score. The following five main criteria are provided in the
standard system:
• Price
• Quality
• Delivery
• Service
340 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Vendor Evaluation
These are the four main criteria used to assess deliveries. In doing so, accounted PO
items are also taken into account.
• External service provision
This main criterion is used to assess services.
Hint: The service criterion is not activated in some training systems. If you
require use of this, please see Note 79166
You can use a weighting system to assign greater or lesser influence to certain main
criteria when the overall score is calculated.
Example:
A vendor has been awarded 80 points for the criterion Price and 90 points for the
criterion Delivery. Since the price of the material is considerably more important to
you than punctual delivery, you assign the weighting share 3 to the criterion Price
and the weighting share 1 to the criterion Delivery. This means the 80 points for
the price count three times when calculating the total points but the 90 points for
the criterion Delivery only once.
All weightings that you wish to use enterprise-wide in vendor evaluation must be
defined as weighting keys in Customizing. You can then specify which weighting
keys may be used by each purchasing organization. When an evaluation is carried out
for the first time, you must assign a weighting key to each vendor.
Caution: If different weighting keys are used, you should define a vendor
class for each weighting key. You can select by these vendor classes in the
analyses, so that you don't compare vendors with different weighting keys.
Each main criterion is subdivided into several subcriteria. The standard version of the
system provides a certain number of subcriteria that serve as a basis for evaluation.
You also have the option of defining your own additional subcriteria for each main
criterion. The system supports a maximum of 20 subcriteria for each main criterion.
All additionally defined criteria (main and subcriteria) are criteria for which the scores
cannot be computed internally by the system. Such additional criteria thus increase
the manual maintenance effort involved, as well as the subjectivity of the vendor
evaluation process.
When computing the score for the relevant main criteria, you can define different
weightings for individual subcriteria for each purchasing organization in Customizing.
The setting applies to all vendors within the relevant purchasing organization.
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Unit 7: Vendor Evaluation SCM520
The scores for the subcriteria are calculated at the time of the evaluation and represent
the average of the individual scores for the relevant materials.
Subcriteria are the smallest units in vendor evaluation for which scores are awarded.
The system determines the score for the superordinate main criterion from the scores a
vendor obtained for the various subcriteria.
Figure 88: Types of Subcriteria
342 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Vendor Evaluation
There are three types of subcriteria:
• Automatic criteria
You do not enter any data yourself. The system determines the scores for
automatic subcriteria from data entered at other points in the enterprise,
independently of the vendor evaluation system (for example, at the time of goods
receipt, or in quality management).
• Manual criteria
You enter the score yourself when carrying out the vendor evaluation manually.
• Semiautomatic criteria
You enter scores for a material at info record level (Extras → Vendor Evaluation),
for example, for the criterion Market behavior. These scores are entered in the
score of the main criterion when carrying out vendor evaluation.
The automatic subcriteria provided in the standard system are sufficient to evaluate
a vendor from whom you procure materials. That is to say, you do not necessarily
have to maintain scores for manual or semiautomatic subcriteria in order to carry
out evaluations.
In the standard system, two automatic subcriteria are available for the main criterion
Price, three for the main criterion Quality, and four for the main criterion Delivery.
There are no automatic subcriteria for the main criteria Service or External service
provision. However, in the standard system there are three semiautomatic criteria
for the former and two for the latter. You can define an additional 17 or 18 manual
or semiautomatic subcriteria respectively for these main criteria (which means not
more than 20 altogether in each case).
When defining manual subcriteria, you should note that a lower number is more
manageable and involves less maintenance effort.
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Unit 7: Vendor Evaluation SCM520
Figure 89: Automatic Subcriteria
The following briefly describes what the various automatic and semi-automatic
subcriteria are intended to evaluate:
• Main criterion Price
– Price level
This subcriterion evaluates the relationship of a vendor's price to the market
price. If the vendor's price is below the market price, he is awarded a better
score. If his price is above it, he is awarded an inferior score.
If no market price has been stored in the system, the average of all current
info record prices is taken.
– Price history
This subcriterion evaluates how a vendor's price has changed over time
in comparison with the development of the market price (or the average
of all info record prices).
• Main criterion Quality
344 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Vendor Evaluation
– GR lots
This subcriterion evaluates the quality of the materials supplied by the
vendor. The quality inspection (incoming inspection) takes place at the
time of goods receipt.
– Quality audit
This subcriterion assesses the effectiveness of the quality assurance system
employed by an enterprise in the manufacture of its products.
– Complaints level (shopfloor complaints/rejection)
This criterion is used to assess whether, after passing the quality check on
goods receipt, materials delivered by a vendor proved unusable during
the subsequent manufacturing process, thus resulting in extra effort and
expenditure.
This score is determined in Quality Management and then passed on to
vendor evaluation in Purchasing.
• Main criterion Delivery
– On-time delivery performance
This subcriterion is used to assess the extent to which a vendor delivers
ordered goods punctually.
– Quantity reliability
This subcriterion is used to assess the extent to which a vendor delivers the
quantities specified in purchase orders.
– Compliance with shipping instructions
This subcriterion is used to assess how closely a vendor complies with
the instructions he is given with regard to the shipping or packing of an
ordered material.
– Shipping notification reliability
This criterion is used to assess whether a vendor adheres to the delivery
date promised in his confirmation, that is, whether the goods actually arrive
on the confirmed date.
Carrying Out the Vendor Evaluation Process
You can carry out the vendor evaluation process manually for each vendor or in the
background for several vendors.
2006/Q2 © 2006 SAP AG. All rights reserved. 345
Unit 7: Vendor Evaluation SCM520
Two transactions are available for manual execution per vendor:
• Vendor Evaluation → Maintain
In this transaction, the scores for the manual main criteria and subcriteria can be
entered.
• Vendor Evaluation → Automatic New Evaluation
Carrying out this evaluation provides you with a list comparing the scores from
the last evaluation with the newly-calculated scores.
Figure 90: Manual Maintenance
346 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Vendor Evaluation
Manual maintenance of vendor evaluations involves the following steps:
1. On the initial screen for vendor evaluation maintenance, enter the purchasing
organization and vendor.
The overview of the main criteria that are valid for this purchasing organization
appears.
2. If necessary, enter the desired weighting key.
3. If manual main criteria are used in the vendor evaluation, you can award the
relevant scores.
4. Choose Edit → Auto. New Evaluation to have the system first recalculate the
scores for the automatic and semiautomatic subcriteria, then the scores for the
main criteria, and then the overall score for the vendor. The computation of the
scores for the automatic and semiautomatic subcriteria can be tracked via a log.
If, instead of an overall evaluation being carried out on the basis of all main
criteria, only the score for a single main criterion is to be recalculated, you can
use the Auto. New Eval./MCrit function.
After selecting the relevant main criterion, choose Main criterion → Details and
start the automatic reevalution for this main criterion by means of the relevant
button. If manual subcriteria are used in the vendor evaluation, award the scores
for these criteria.
You can display the log of the calculation of the scores for the automatic subcriteria
of this main criterion. To do so, choose Goto → Log Per Main Criter. or Goto →
All Logs. Note that these logs are only available to you prior to saving the vendor
evaluation.
Manual changes to the individual scores can be retraced at any time by reference
to the change documentation.
You can record the evaluation that the system has determined for a vendor in an
evaluation sheet and print it out. The header of the evaluation sheet shows the name
of the person who created the sheet, its date of creation, and the name of the vendor.
Below this, the overall evaluation and the scores for the individual main criteria are
shown. The scores for the subcriteria of each main criterion are listed under Detailed
Evaluation.
Print evaluation sheet:
2006/Q2 © 2006 SAP AG. All rights reserved. 347
Unit 7: Vendor Evaluation SCM520
SAP Menu → Logistics → Materials Management → Purchasing → Master Data →
Vendor Evaluation → Follow-On Functions → Print Evaluation Sheet
Hint: In Customizing, you can specify whether the scores for automatic
and semiautomatic criteria can be changed manually. If manual changes are
allowed, the relevant fields in the transaction Vendor Evaluation → Maintain
are ready to accept input, and the automatically calculated scores can be
changed at will. Manual changes are logged in the change documentation.
However, if you should subsequently re-run the vendor evaluation, the system
does not take the manually changed scores into account but determines the
new scores on the basis of the data from the info records and the Logistics
Information System (LIS).
Maintain vendor evaluation:
SAP Menu → Logistics → Materials Management → Purchasing → Master Data →
Vendor Evaluation → Maintain
Automatic Reevaluation
The Automatic Reevaluation function enables you to update the scores for the
automatic and semiautomatic subcriteria for a vendor. The scores for manual criteria
cannot be updated automatically.
348 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Vendor Evaluation
Figure 91: Automatic Reevaluation
If the vendor has not yet been evaluated at all, you must specify a weighting key for
automatic reevaluation.
The result of the automatic reevaluation process is a comparison of the old and newly
calculated points scores for all automatic and semiautomatic critiera. When the
evaluation is saved, the old scores are replaced by the new scores.
The manually maintained scores of the last evaluation are not displayed with the
other scores but are included unchanged in the overall score so that the results remain
comparable. You can reproduce calculation of automatic and semi-automatic criteria
using a log.
Automatic reevaluation of vendors:
SAP Menu → Logistics → Materials Management → Purchasing → Master Data →
Vendor Evaluation → Automatic New Evaluation
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Unit 7: Vendor Evaluation SCM520
Vendor Evaluation in the Background
For mass-maintenance purposes, vendor evaluation should be carried out in the
background.
In the background process, automatic and semiautomatic criteria are taken into
account. If a vendor evaluation is to be carried out in the background, a selection
variant - limiting the range of vendors to be evaluated, for example - is required.
Figure 92: Evaluation in the Background
In the case of an evaluation in the background, existing evaluation records can be
updated or new ones created for not-yet-evaluated vendors. As a rule, you carry out
background maintenance of the evaluations of vendors belonging to the same vendor
class or to which the same weighting key has been assigned.
However, it is possible to select a range covering different groups of vendors. For
this reason, you have the option of not specifying a weighting key for background
evaluation. In order for the scores to be calculated correctly, the weighting key for
such evaluation records must be maintained subsequently. The system finds the
evaluation records involved by means of the report Vendors Without Weighting Key.
Set up vendor evaluation as background job:
350 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Vendor Evaluation
SAP Menu → Logistics → Materials Management → Purchasing → Master Data →
Vendor Evaluation → Follow-On Functions → Evaluation in Background
Reprocess evaluation records without weighting key:
SAP Menu → Logistics → Materials Management → Purchasing → Master Data →
Vendor Evaluation → Follow-On Functions → Vendors Without Weighting Key
Automatic Calculation of Scores for Subcriteria: Selected
Examples
The principles of the system calculation of the scores for automatic subcriteria are
discussed in detail in the following, taking the subcriteria quantity reliability, on-time
delivery performance, and price level as examples. Information on the internal
calculation of the scores for all other criteria is available under
Information Systems (MM-IS) → MM Vendor Evaluation → How the System
Computes Scores
in the materials management documentation.
Quantity Reliability
The first example illustrates how the score for the automatic subcriterion quantity
reliability (main criterion Delivery) is calculated.
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Unit 7: Vendor Evaluation SCM520
Figure 93: Quantity Reliability
The individual score for quantity reliability for a material and a vendor in the relevant
info structure is updated when a PO item is closed - that is, when one of the following
events occurs:
• Despite the full PO quantity not having been delivered and the delivery quantity
not being within the permitted underdelivery tolerance for the PO item, the
person responsible for posting the goods receipt manually sets the delivery
completed indicator to indicate delivery has been completed for one PO item.
• Only 90 pieces of a PO quantity of 100 pieces are delivered and the buyer
reduces the PO quantity to 90 or else sets the delivery completed indicator for
the PO item.
• The buyer deletes a PO item by setting the deletion indicator.
• The goods receipt quantity is within the underdelivery tolerance, equals or
exceeds the PO quantity
The system takes into account only goods receipts against a PO and the release of GR
blocked stock into the warehouse/stores. In the standard system, such transactions
are represented by the movement types 101 and 105.
352 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Vendor Evaluation
If one of the events described occurs, the system calculates the new individual score
(material-dependent) for the subcriterion quantity reliability as follows:
1. In the case of a goods receipt (GR) against a purchase order (PO), the system
calculates the percentage variance of the quantity delivered from the PO quantity
using the formula (GR quantity - PO quantity) x 100 / PO quantity.
In the process, the system differentiates between an overdelivery and an
underdelivery through the appropriate sign (+/-).
The under- and overdelivery tolerances stored in the material master record are
not taken into account in calculating the score.
2. The system then awards the score defined in the Customizing settings for the
purchasing organization for the relevant percentage variance (taking the +/-
sign into account).
3. After this, the new composite individual score is calculated from the new
individual score just calculated and the previously existing individual score for
the material and vendor for the subcriterion quantity reliability. In doing so, the
system applies the smoothing factor defined in the Customizing settings for the
purchasing organization. The higher the smoothing factor, the lower the weight
assigned to the previous individual score.
The system uses the following formula:
New individual score = old individual score x (1– smoothing factor) + score for
a goods movement x smoothing factor.
This new individual score is updated in info structure S013.
4. When you run a new evaluation, the system calculates the average score from
the individual scores for all materials on the basis of info structure S013. The
result is the vendor's score for quality reliability.
Hint: In the case of scheduling agreements, quality reliability is not updated
following each goods receipt, but only once, when the target quantity has
been reached.
Caution: Reversals have only a very limited effect on the compilation of the
score for the subcriterion quantity reliability. The system takes into account
only reversals of goods receipts against POs into the warehouse/stores and
releases of GR blocked stock into the warehouse/stores. In the standard
system, such transactions are represented by the movement types 102 and 106.
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Unit 7: Vendor Evaluation SCM520
The purpose of this function is to correct faulty input that the goods receiving
clerk notices immediately, since the system only considers the last GR that
caused the score to be updated.
The score awarded for the last goods receipt is cancelled when a GR is
reversed. If the reversal quantity is less than or equal to the last GR quantity,
the system checks whether the GR quantity is greater than or equal to the PO
quantity. If so, a new score is assigned.
On-time Delivery Performance
The following describes how the score for the automatic subcriterion On-time delivery
performance (main criterion Delivery) is calculated internally by the system.
Figure 94: On-time Delivery Performance
The system calculates date variances on the basis of the statistics-relevant delivery
date in the purchase order and the goods receipt date.
354 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Vendor Evaluation
The statistics-relevant delivery date is used, for example, in a situation in which the
vendor will not be able to deliver the material ordered for the September 15 until the
30th. September 30 (the date relevant to materials planning) is entered as the delivery
date, whereas the statistics-relevant delivery date remains September 15. When
calculating on-time delivery performance, the system uses not the actual delivery date
but the statistics-relevant delivery date. The score for the goods receipt worsens as
a result.
Just as in the case of quantity reliability, the system takes into account only goods
receipts against POs and scheduling agreements into the warehouse/stores and
releases of GR blocked stock into the warehouse/stores in the case of on-time delivery
performance too.
If delivery is punctual, the system only calculates the new individual score for the
subcriterion on-time delivery performance when the check regarding the minimum
delivery quantity has been successfully carried out. The check of the minimum
delivery quantity prevents a vendor from being awarded a very good score for a
punctual goods receipt with an inadequate delivery quantity.
The minimum delivery percentage is specified in the purchasing-organization-wide
Customizing settings for vendor evaluation. The percentage specified can be overriden
by a minimum delivery percentage defined in the purchasing value key of the material
master record.
To express date variances in days, the parameter Standard Delivery Time Variance
must have been defined. The standard delivery time variance indicates how many
days' variance correspond to a percentage variance of 100%. If the standard delivery
time variance were ten days, for example, one day's delay in delivery would mean
a percentage variance of 10%.
The value for the standard delivery time variance is specified in the
purchasing-organization-wide Customizing settings for vendor evaluation. As in the
case of the minimum delivery percentage, the standard delivery time variance can be
overridden by a value specified in the purchasing value key of the material master
record.
If a calendar has been stored in the control data for vendor evaluation, public holidays,
Saturdays and Sundays can be excluded from the date variance calculation.
After the percentage date variance has been calculated (taking the +/- sign into
account), the system runs through all further steps in exactly the same way as in the
calculation of the score for the subcriterion quantity reliability.
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Unit 7: Vendor Evaluation SCM520
The table values and the smoothing factor must be specially defined for the
subcriterion on-time delivery performance.
Hint: If a goods receipt covers several delivery schedule lines, the system
runs through the scoring process for each individual schedule line. Each of
these scores is multiplied by the delivered quantity relating to the relevant
schedule line (weighted by quantity). The sum of these weighted points
scores is then divided by the goods receipt quantity. The result is the score
for this one goods receipt.
Price Level
Unlike with the subcriteria on-time-delivery and quantity variance, the price level
criterion is calculated currently for each reevaluation. This means the system does not
use data stored in info structure S013 and there are no smoothing factors.
Figure 95: Price Level
To determine a vendor's price level, the system compares the effective prices stored in
the info records for the vendor with the market price of the materials.
356 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Vendor Evaluation
In calculating the score for the price level, the system runs through the following
steps for each material or material group:
1. The system first checks whether a market price has been stored for the material
or material group.
The market price can be stored in the master data for purchasing
(SAP Menu → Logistics → Materials Management → Purchasing → Master
Data → Conditions → Prices → Market Price)
Hint: The market price can be saved directly from a quotation price
comparison list. In doing so you can either select the mean value or a
random quotation and and save the corresponding value as the market
price.
2. If no market price is stored, the system calculates the average of the effective
prices for all info records for this material except the info record of the vendor
to be evaluated.
3. In the next step, the vendor's effective price is compared with the market price or
average price. The percentage variance is determined from this comparison.
4. Via the relevant table in Customizing, the system assigns the score defined
there to the percentage of the variance.
5. Then the average is calculated from the scores determined for all materials or
material groups of a vendor for which current info record conditions exist. The
result is the vendor's score for the subcriterion price level.
In the Customizing settings for the subcriterion price level, you must specify the
consequences for vendor evaluation if there is only one vendor for a certain material.
You use the Single/Sole Vendor indicator for this purpose. If the indicator has been set,
the system calculates a variance of 0%.
Hint: You can use transaction MCE2 to check which scores have been
updated for a purchasing document. After entering the transaction, you
choose Info structure S013.
Customizing for Vendor Evaluation
The following graphic provides an overview of the Customizing settings necessary
for vendor evaluation:
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Unit 7: Vendor Evaluation SCM520
Figure 96: Customizing Overview
All weighting keys and criteria to be used in vendor evaluation must be defined
client-wide. It is possible to define various kinds of lists, each showing different main
criteria or the same main criteria in a different order.
358 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Vendor Evaluation
You can make the following settings for vendor evaluation at purchasing organization
level:
• Main criteria
The permissible main criteria are defined for each purchasing organization. You
can also specify whether the points scores may be changed manually.
• Subcriteria
The individual subcriteria plus weighting keys are assigned to each main
criterion. If maintaining or changing the scores for the individual subcriteria
manually is to be allowed, the Manual Maintenance indicator must be set.
• Weighting
At least one weighting key with the relevant weightings must be defined for
each purchasing organization.
• Points for automatic criteria
The scores for all automatic subcriteria for which percentage variances must be
converted into corresponding scores are stored in the table for each purchasing
organization.
• Control Data
The following graphic provides an overview of the data defined on the detail
screen for the purchasing organization:
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Unit 7: Vendor Evaluation SCM520
Figure 97: Control Data
The applicability period indicates the time in calendar days within which data for
vendor evaluation is taken into account for the criteria GR lots and complaints level,
and semiautomatic criteria.
If no new data is available for the criteria quantity reliability, on-time delivery
performance, confirmation date variance, compliance with shipping instructions,
and quality audit within the applicability period for a vendor, no scores are usually
calculated for these criteria when this vendor is evaluated.
The applicability period is not taken into account for the criteria price level and
price history.
Make Customizing settings for vendor evaluation:
SAP Customizing Implementation Guide → Materials Management → Purchasing →
Vendor Evaluation → Define Weighting Keys
SAP Customizing Implementation Guide → Materials Management → Purchasing →
Vendor Evaluation → Define Criteria
360 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Vendor Evaluation
SAP Customizing Implementation Guide → Materials Management → Purchasing →
Vendor Evaluation → Define Scope of List
SAP Customizing Implementation Guide → Materials Management → Purchasing →
Vendor Evaluation → Define Purchasing Organization Data
Define purchasing value keys:
SAP Customizing → Implementation Guide → Materials Management → Purchasing
→ Material Master → Define Purchasing Value Keys
Define market price:
SAP Menu → Logistics → Materials Management → Purchasing → Master Data →
Conditions → Prices → Market Price
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Unit 7: Vendor Evaluation SCM520
362 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Vendor Evaluation
Exercise 16: Vendor Evaluation
Exercise Objectives
After completing this exercise, you will be able to:
• Perform vendor evaluation and reproduce this procedure
Business Example
Your enterprise wishes to evaluate its vendors on the basis of various performance
criteria. This evaluation may be useful in negotiations with vendors. A prerequisite for
vendor evaluation is that the appropriate settings must have been made in Customizing
with regard to the general criteria by which vendors are to be appraised and how
which aspects of vendors' performance are to be rated.
Task 1:
Carry out a vendor evaluation.
1. Create a new vendor master record for the vendor evaluation. Use the following
data for this purpose:
Vendor number T-K520D##
Company code 1000
Purchasing organization 1000
Account group ZTMM
Search term SCM520
Country DE
Language DE
Reconciliation account 160000
Currency EUR
Terms of payment (purchasing) 0002
2. Order the following materials from vendor T-K520D## for plant 1000 and
storage location 0001:
Continued on next page
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Unit 7: Vendor Evaluation SCM520
Material Delivery date Further data
T-M520A## Today 50 pc, 2 EUR per pc
T-M520B## Yesterday 20 pc, 5 EUR per pc
T-M520E## Today 10 pc, 20 EUR per pc
Hint: Ignore all warning messages.
3. Post a goods receipt against this PO at storage location 0001. You receive a
partial delivery of 40 pc against the first PO item. The second item is delivered
in full. With regard to the third item of the purchase order, again, only part of the
ordered quantity is delivered. In this case, you receive just 2 pc.
4. Perform the vendor evaluation for vendor T-K520D## in purchasing
organization 1000.
Assign the weighting key 01 to the vendor.
What does this weighting key stand for?
_________________________________________________
_________________________________________________
Branch to the detail screen for the main criterion Delivery. Which subcriteria are
assigned to this main criterion, how are they weighted, and by which method are
they scored (automatically, semiautomatically, manually)?
Subcriterion Weighting Calculation Method
5. Carry out an automatic reevaluation for the main criterion Delivery.
Which scores does the system calculate?
Main criterion Delivery: _________
Subcriterion On-time delivery: _________
Subcriterion Quantity reliability: _________
Continued on next page
364 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Vendor Evaluation
Display the log by choosing Goto → All Logs. Which individual scores have
been calculated for the subcriteria Quantity reliability and On-time delivery
performance?
Material On-time Delivery Quantity Reliability
Performance
T-M520A##
T-M520B##
T-M520E##
Why was no score calculated for the subcriterion Quantity reliability for material
T-M520A##?
_________________________________________________
_________________________________________________
Why were no scores calculated for the subcriteria Quantity reliability and
On-time delivery for material T-M520E##?
_________________________________________________
_________________________________________________
Save the vendor evaluation.
6. Take a look at the Customizing settings for vendor evaluation. Note down the
following settings for purchasing organization 1000:
Weighting of the subcriterion On-time delivery: ________
Weighting of the subcriterion Quantity reliability: ________
Points score for on-time delivery in the case of a percentage variance of +10
%: ________
Standardizing value for delivery time variance: ________
Minimum delivery quantity in percent: ________
Smoothing factor for timeliness of service provision: ________
Smoothing factor for quantity reliability: ________
Is the general or the material-specific standardizing value for delivery time
variance taken as a basis for determining the score for On-time delivery
performance?
Continued on next page
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Unit 7: Vendor Evaluation SCM520
_________________________________________________
_________________________________________________
7. Update the evaluation of vendor T-K520D## in purchasing organization 1000
by performing the function Automatic Reevaluation.
Old overall score: ________
New overall score: ________
Save the evaluation.
Task 2:
Optional: Vendor evaluation functions
1. Post some goods receipts against the open POs issued to vendors T-K520A##
and T-K520B##.
2. Carry out the evaluation of vendors T-K520A## and T-K520B## in purchasing
organization 1000 by performing the function Automatic Reevaluation.
Assign the weighting key 01 to the two vendors.
3. A buyer occasionally wishes to check the current scores of potential sources of
supply during the source determination process.
Delete the quota arrangement for material T-M520E##.
Remove the source list entries for material T-M520E## and plant 1000.
Create a purchase requisition for 10 pc of material T-M520E## for plant 1000.
Make sure that the indicator for automatic source determination has been set.
When the list of possible sources appears, choose Vendor Evaluation to compare
the scores for the subcriteria.
4. Have a ranking list of the evaluations for vendors T-K520A* generated.
Which vendor has achieved the best overall score? _______________
Which vendor has the worst overall score? _______________
5. Which evaluated vendors supply material T-M520E##?
_________________________________________________
_________________________________________________
366 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Vendor Evaluation
Solution 16: Vendor Evaluation
Task 1:
Carry out a vendor evaluation.
1. Create a new vendor master record for the vendor evaluation. Use the following
data for this purpose:
Vendor number T-K520D##
Company code 1000
Purchasing organization 1000
Account group ZTMM
Search term SCM520
Country DE
Language DE
Reconciliation account 160000
Currency EUR
Terms of payment (purchasing) 0002
a) SAP Menu → Logistics → Materials Management → Purchasing →
Master Data → Vendor → Central → Create
2. Order the following materials from vendor T-K520D## for plant 1000 and
storage location 0001:
Material Delivery date Further data
T-M520A## Today 50 pc, 2 EUR per pc
T-M520B## Yesterday 20 pc, 5 EUR per pc
T-M520E## Today 10 pc, 20 EUR per pc
Hint: Ignore all warning messages.
a) SAP Menu → Logistics → Materials Management → Purchasing →
Purchase Order → Create → Vendor/Supplying Plant Known
Continued on next page
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Unit 7: Vendor Evaluation SCM520
3. Post a goods receipt against this PO at storage location 0001. You receive a
partial delivery of 40 pc against the first PO item. The second item is delivered
in full. With regard to the third item of the purchase order, again, only part of the
ordered quantity is delivered. In this case, you receive just 2 pc.
a) SAP Menu → Logistics → Materials Management → Inventory
Management → Goods Movement → Goods Movement (MIGO)
Search for the purchase order for vendor T-K520D## using the input help
and confirm the input with Enter.
Close the detailed data so that all lines of the item overview are ready
to accept input.
Change the quantities of the individual items as appropriate and set the
OK indicator for each line.
Post the goods receipt.
4. Perform the vendor evaluation for vendor T-K520D## in purchasing
organization 1000.
Assign the weighting key 01 to the vendor.
What does this weighting key stand for?
_________________________________________________
_________________________________________________
Branch to the detail screen for the main criterion Delivery. Which subcriteria are
assigned to this main criterion, how are they weighted, and by which method are
they scored (automatically, semiautomatically, manually)?
Continued on next page
368 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Vendor Evaluation
Subcriterion Weighting Calculation Method
a) SAP Menu → Logistics → Materials Management → Purchasing →
Master Data → Vendor Evaluation → Maintain
Weighting key 01 specifies that the scores for all main criteria are to go
into the calculation of the overall score with the same weighting.
b) Select the main criterion Delivery and choose Main Criterion → Details.
Subcriterion Weighting Calculation Method
On-time Delivery 30 3 (automatic)
Performance
Quantity Reliability 40 2 (automatic)
Compliance with 10 6 (automatic)
shipping instructions
Shipping notification 20 B (automatic)
reliability
5. Carry out an automatic reevaluation for the main criterion Delivery.
Which scores does the system calculate?
Main criterion Delivery: _________
Subcriterion On-time delivery: _________
Subcriterion Quantity reliability: _________
Display the log by choosing Goto → All Logs. Which individual scores have
been calculated for the subcriteria Quantity reliability and On-time delivery
performance?
Continued on next page
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Unit 7: Vendor Evaluation SCM520
Material On-time Delivery Quantity Reliability
Performance
T-M520A##
T-M520B##
T-M520E##
Why was no score calculated for the subcriterion Quantity reliability for material
T-M520A##?
_________________________________________________
_________________________________________________
Why were no scores calculated for the subcriteria Quantity reliability and
On-time delivery for material T-M520E##?
_________________________________________________
_________________________________________________
Continued on next page
370 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Vendor Evaluation
Save the vendor evaluation.
a) Choose Auto.new eval./MCrit.
The reevaluation produces the following result:
Subcriterion On-time delivery: 90 points
Subcriterion Quantity reliability: 100 points
Main criterion Delivery: 96 points
Material On-time Delivery Quantity Reliability
Performance
T-M520A## 100 ––
T-M520B## 80 100
T-M520E## –– ––
Note that the scores for the subcriteria and the individual scores may differ
from participant to participant, depending on how the previous exercises
were done.
Only a partial delivery was posted for material T-M520A##. The score
for quantity reliability is not determined until final delivery has been
effected for the PO item.
Only a partial delivery was posted for material T-M520E## too. No
score was calculated for the subcriterion On-time delivery for material
T-M520E## because the minimum delivery percentage was not reached.
6. Take a look at the Customizing settings for vendor evaluation. Note down the
following settings for purchasing organization 1000:
Weighting of the subcriterion On-time delivery: ________
Weighting of the subcriterion Quantity reliability: ________
Points score for on-time delivery in the case of a percentage variance of +10
%: ________
Standardizing value for delivery time variance: ________
Minimum delivery quantity in percent: ________
Smoothing factor for timeliness of service provision: ________
Smoothing factor for quantity reliability: ________
Continued on next page
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Unit 7: Vendor Evaluation SCM520
Is the general or the material-specific standardizing value for delivery time
variance taken as a basis for determining the score for On-time delivery
performance?
_________________________________________________
_________________________________________________
a) SAP Menu → Tools → Customizing → IMG → Execute Project
Choose SAP Reference IMG.
SAP Customizing Implementation Guide → Materials Management →
Purchasing → Vendor Evaluation → Define Purchasing Organization Data
Select purchasing organization 1000 and choose Main Criteria in the
dialog structure.
Select the main criterion Delivery and choose Subcriteria in the dialog
structure.
Weighting of the subcriterion On-time delivery: 30
Weighting of the subcriterion Quantity reliability: 40
b) Choose Points Scores for Automatic Criteria in the dialog structure.
Score for on-time delivery in the case of a percentage variance of +10
%: 80 points
c) Navigate back to the purchasing organization. Select purchasing
organization 1000 and choose Goto → Details.
Standardizing value for delivery time variance: 10 days
Minimum delivery quantity: 30%
Smoothing factor for on-time delivery performance: 0.20
Smoothing factor for quantity reliability: 0.20
To determine the score for on-time delivery performance,
the material-specific value is taken because the indicator
MinDelQty/StdDlTmVar from Material has been set.
7. Update the evaluation of vendor T-K520D## in purchasing organization 1000
by performing the function Automatic Reevaluation.
Old overall score: ________
New overall score: ________
Continued on next page
372 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Vendor Evaluation
Save the evaluation.
a) SAP Menu → Logistics → Materials Management → Purchasing →
Master Data → Vendor Evaluation → Automatic Reevaluation
Task 2:
Optional: Vendor evaluation functions
1. Post some goods receipts against the open POs issued to vendors T-K520A##
and T-K520B##.
a) SAP Menu → Logistics → Materials Management → Inventory
Management → Goods Movement → Goods Movement (MIGO)
Use the search help to find the POs issued to vendors T-K520A## and
T-K520B## and confirm the input with Enter.
Close the detailed data so that all lines of the item overview are ready
to accept input.
2. Carry out the evaluation of vendors T-K520A## and T-K520B## in purchasing
organization 1000 by performing the function Automatic Reevaluation.
Assign the weighting key 01 to the two vendors.
a) SAP Menu → Logistics → Materials Management → Purchasing →
Master Data → Vendor Evaluation → Automatic Reevaluation
3. A buyer occasionally wishes to check the current scores of potential sources of
supply during the source determination process.
Delete the quota arrangement for material T-M520E##.
Remove the source list entries for material T-M520E## and plant 1000.
Create a purchase requisition for 10 pc of material T-M520E## for plant 1000.
Make sure that the indicator for automatic source determination has been set.
When the list of possible sources appears, choose Vendor Evaluation to compare
the scores for the subcriteria.
a) SAP Menu → Logistics → Materials Management → Purchasing →
Master Data → Quota Arrangement → Follow-On Functions → Delete
b) SAP Menu → Logistics → Materials Management → Purchasing →
Master Data → Source List → Follow-On Functions → Delete
c) SAP Menu → Logistics → Materials Management → Purchasing →
Purchase Requisition → Create
Continued on next page
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Unit 7: Vendor Evaluation SCM520
4. Have a ranking list of the evaluations for vendors T-K520A* generated.
Which vendor has achieved the best overall score? _______________
Which vendor has the worst overall score? _______________
a) SAP Menu → Logistics → Materials Management → Purchasing →
Master Data → Vendor Evaluation → List Displays → Ranking Lists
5. Which evaluated vendors supply material T-M520E##?
_________________________________________________
_________________________________________________
a) SAP Menu → Logistics → Materials Management → Purchasing →
Master Data → Vendor Evaluation → List Displays → Evaluation per
Material/Material Group
374 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Vendor Evaluation
Lesson Summary
You should now be able to:
• Differentiate between evaluation levels and the various types of evaluation
criteria
• Carry out the vendor evaluation process
• Describe the process of awarding scores for automatic subcriteria
• Differentiate between and apply the various reports and analyses that are
available for vendor evaluation purposes
2006/Q2 © 2006 SAP AG. All rights reserved. 375
Unit Summary SCM520
Unit Summary
You should now be able to:
• Differentiate between evaluation levels and the various types of evaluation
criteria
• Carry out the vendor evaluation process
• Describe the process of awarding scores for automatic subcriteria
• Differentiate between and apply the various reports and analyses that are
available for vendor evaluation purposes
376 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Test Your Knowledge
Test Your Knowledge
1. What is the maximum score value that can be achieved in the system for vendor
evaluation?
Choose the correct answer(s).
□ A 99
□ B 100
□ C 999
□ D 1000
2. What types of evaluation criteria are used?
Choose the correct answer(s).
□ A Semiautomatic criteria
□ B Automatic criteria
□ C Manual criteria
□ D Forecast-based criteria
3. Which deadlines are compared when calculating points values for on-time
delivery performance?
Choose the correct answer(s).
□ A Delivery date for purchase order and goods receipt date
□ B Static delivery date and goods receipt date for purchase order
□ C Goods receipt date and delivery note date
□ D Delivery date and static delivery date for the purchase order
4. What can you use to influence the results of vendor evaluation?
Choose the correct answer(s).
□ A Smoothing factors
□ B Validity period
□ C Weighting keys
□ D Plant-specific scores
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Test Your Knowledge SCM520
Answers
1. What is the maximum score value that can be achieved in the system for vendor
evaluation?
Answer: C
2. What types of evaluation criteria are used?
Answer: A, B, C
3. Which deadlines are compared when calculating points values for on-time
delivery performance?
Answer: B
4. What can you use to influence the results of vendor evaluation?
Answer: A, B, C
Vendor evaluation takes place on purchasing organization level (answer D).
Plant-specific scores are not possible.
378 © 2006 SAP AG. All rights reserved. 2006/Q2
Unit 8
Selected Customizing Topics
Unit Overview
This unit deals with selected Customizing topics of interest to those involved in
procurement.
First, the possible settings for the vendor master record are introduced. In this
connection, the settings for partner determination are also outlined.
The second lesson shows how procurement functions can be controlled via document
types.
The third lesson contains information on version management available since SAP
R/3 Enterprise.
The last lesson deals with further aspects of Customizing relevant to procurement.
These include user-dependent controls via purchasing parameters and settings for the
info update indicator in the Enjoy purchase order transaction.
Unit Objectives
After completing this unit, you will be able to:
• Describe the control options afforded by the account group
• Name the factors influencing field selection in the vendor master record
• Describe the Customizing settings for partner determination
• Describe the settings necessary to define a new document type
• Set up the use of the item and account assignment categories dependent on
the document type
• Name the influencing factors with regard to the control of purchasing document
field selection
• Describe the advantages of using version management
• Use version management in purchasing
• Describe the settings that can or must be made for version management in
Customizing for purchasing
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Unit 8: Selected Customizing Topics SCM520
• Explain the significance of user parameters EVO and EFB
• Name the available options for controlling the use of the info update indicator
Unit Contents
Lesson: Vendor Master Record: Customizing .................................. 381
Exercise 17: Vendor Master Record: Customizing ........................ 397
Lesson: Document Types in Purchasing ........................................ 407
Exercise 18: Document Types ................................................ 421
Lesson: Version Management in Purchasing ................................... 429
Lesson: Special Aspects of Customizing ........................................ 434
380 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Vendor Master Record: Customizing
Lesson: Vendor Master Record: Customizing
Lesson Overview
In this lesson you receive an overview of all Customizing settings relating to the
vendor master record and affecting purchasing.
Lesson Objectives
After completing this lesson, you will be able to:
• Describe the control options afforded by the account group
• Name the factors influencing field selection in the vendor master record
• Describe the Customizing settings for partner determination
Business Example
An SAP system is being implemented at your company. As part of the implementation
process, you have been given the task of identifying possible Customizing settings
for the vendor master record.
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Unit 8: Selected Customizing Topics SCM520
Vendor Master Record: Customizing Overview
Figure 98: Vendor Master Record: Customizing
Among other things, the account group ensures that only the fields needed for the
relevant role of your business partner are displayed or are ready to receive input in the
vendor master record. However, control of field selection in the vendor master record
is not only a function of the account group, but also depends on the transaction used,
for example and the purchasing organization.
By making the appropriate settings for number assignment, you can ensure that
different business partners are managed in different number ranges in the system.
Relevant Customizing settings also include those for partner determination, since you
can store different partner roles (partner functions) in the vendor master record.
Account Group
Each vendor whose data is created in the SAP system must be assigned to an account
group. The desired account group is assigned when a new vendor master record
is created.
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SCM520 Lesson: Vendor Master Record: Customizing
The account group helps to determine how the business partner is used in the system.
The standard system, for example, contains different account groups for vendors
(suppliers), manufacturers, forwarders/carriers, and invoicers.
It is possible to create new account groups in Customizing.
Figure 99: What the Account Group Determines
You use the account group to determine:
• The field status (= field selection)
• Whether a vendor master record is used as a one-time account master record
• Use of the data retention levels vendor subrange and/or plant
• The number range interval and the type of number assignment (internal or
external)
• The permissible partner roles
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Unit 8: Selected Customizing Topics SCM520
Figure 100: Customizing: Account Group
With the field status, you specify:
• Which fields are not to be displayed
• Which fields are for display only and cannot receive input
• Fields in which data must be entered
• Fields in which data can be entered
The account group is just one of four factors influencing the field status in the vendor
master record.
Hint: During the creation of a vendor master record, a screen does not appear
if all the fields it contains are suppressed (hidden).
Example of the use of different account groups:
The account group can be used as a classification aid. For example, you can create
different account groups for foreign and domestic vendors. If the number range is
defined differently for these account groups, you can tell immediately from the vendor
number whether a certain supplier is a foreign or domestic vendor.
384 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Vendor Master Record: Customizing
Create account groups:
SAP Customizing Implementation Guide → Logistics - General → Business Partner
→ Vendors → Control → Define Account Groups and Field Selection (Vendor)
Field Selection in the Vendor Master Record
The account group is just one factor that influences field selection in the vendor
master record.
Figure 101: Field Status: Influencing Factors
The field status can be controlled by the transaction used, the account group, the
purchasing organization, or the company code.
The fields to be defined are divided into the following areas:
• General data
• Company code data
• Purchasing data
• Purchasing vendor subrange level
• Purchasing plant level
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Unit 8: Selected Customizing Topics SCM520
The individual influencing factors control different areas. Through the company code,
for example, you can only influence the group of company code data. On the other
hand, the transaction used can determine the status of all fields.
Define field status via account group, transaction, and purchasing organization:
SAP Customizing Implementation Guide → Logistics - General → Business Partner
→ Vendor → Control → Define Account Groups and Field Selection (Vendor)/Define
Screen Layout Specific to Purchasing Organization/Define Transaction-Dependent
Screen Layout
Define field status via company code:
SAP Customizing Implementation Guide → Financial Accounting → Accounts
Receivable and Accounts Payable → Vendor Accounts → Master Data →
Preparations for Creating Vendor Master Data → Define Screen Layout per Company
Code (Vendors)
Hint: Frequently, the field status is to have an identical definition for (nearly)
all purchasing organizations and/or company codes. For this reason, it is
possible to use an asterisk (*) when defining field statuses. The settings for
the purchasing organization or company code marked with an asterisk then
apply to all purchasing organizations or company codes that are not explicitly
shown on the list.
Since the field status depends on several influencing factors, link rules are necessary.
These rules determine which property a field has if the various influencing factors
have different values. The following graphic show the field status priorities:
386 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Vendor Master Record: Customizing
Figure 102: Priorities
Suppose, for example, that a field should be suppressed for the account group, but be
defined as a mandatory field for the purchasing organization. The following link rules
decide which status the field actually has in the vendor master record:
Instance Suppress Display Required Optional
entry entry
Suppress Suppress Suppress Suppress Suppress
Display Suppress Display Display Display
Required Suppress Display Required Required
entry entry entry
Optional Suppress Display Required Optional
entry entry entry
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Unit 8: Selected Customizing Topics SCM520
The instance Hide has the highest priority and thus overrides all other instances. If a
field is suppressed (hidden) as a result of the account group, what was specified via
the transaction-dependent screen layout is irrelevant. The field in question will be
hidden during creation, changing, and displaying of the vendor master record.
The instance Display overrides the instances Required Entry and Optional Entry. The
field status Required Entry overrides the status Optional Entry. A field can thus only
have the status Optional Entry if this status has been defined as optional entry for
all influencing factors.
Number Assignment
When a vendor master record is created, a number is assigned, which uniquely
identifies that record. This number comes from the number range (numeric or
alphanumeric) defined for the account group.
Figure 103: Control of Number Assignment
388 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Vendor Master Record: Customizing
The number assignment can take one of two forms:
• Internal number assignment
The system automatically assigns a sequential number from the predefined
number range interval. The last-assigned number is recorded as the current
number. Numerical number ranges only are possible.
• External number assignment
In the case of external assignment, the user must assign a number from the
predefined number range when creating the vendor master record. This number
must be contained in the number range interval defined. It can be numeric or
alphanumeric.
When creating a new number range, you perform the following steps:
1. Creation of a new number interval
The individual number range intervals must not overlap. If a number range is
intended for external number assignment, the relevant indicator must be set.
2. Assignment to account group
In the second step you assign the desired account group to your new number
range.
Hint: In contrast to the material master, where you can assign both an internal
and an external number range interval for each material type, with account
groups, only one number range interval is possible per account group. This
can be internal or external.
Define number ranges for vendor master records
SAP Customizing Implementation Guide → Logistics - General → Business Partner
→ Vendors → Control → Define Number Ranges for Vendor Master Records
Partner Roles
The business partner can assume various roles viz-à-viz your enterprise. (Note that
partner roles are sometimes also referred to as partner functions.) For example, in the
course of a procurement transaction, a business partner is first the ordering address,
then the goods supplier, then the invoicing party, and finally the payee. A prerequisite
for the use of partner roles is the existence of a corresponding master record for the
partner in question.
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Unit 8: Selected Customizing Topics SCM520
Figure 104: Using Partner Roles
Not all the various roles in a particular transaction are necessarily assumed by the
same business partner - a number of different firms may be involved. Therefore, you
have the option of defining the relevant partner roles in the vendor master record on a
purchasing-organization-wide and plant-specific basis. These partners are adopted as
default values in the relevant documents. Thus, for example, a different invoicing party
is transferred from the vendor master record to a purchase order and automatically
appears as the default value for this purchase order when the invoice is posted.
To use partner roles in the vendor master record, you must first make various settings
in Customizing.
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SCM520 Lesson: Vendor Master Record: Customizing
Figure 105: Partner Determination (1)
First, all the partner roles that you wish to use client-wide must be defined. In the
process, you can specify that a partner role may be used in a vendor's master data once
only per organizational level. If the Unique indicator has not been set, several ordering
addresses may be defined per organizational level, for example. When creating a
purchase order, the buyer would then obtain a list of all possible ordering addresses.
He or she would then be able to choose the desired address from the list.
Hint: If several partners have been defined for a partner role, one of them
can be designated as the default value. The default value is shown in the first
position in the selection list when a purchasing document is created.
If a hierarchy is to be used in connection with partner roles, it is sensible to use
superordinate partner roles. In this way, you can replicate dependencies between
partner roles.
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Unit 8: Selected Customizing Topics SCM520
After the partner roles have been defined, they must be assigned to the relevant
account groups. This assignment controls the meaningful use of the roles. It makes
little sense, for example, for the account group for invoicing parties to allow the
partner role ordering address.
To be able to use the partner determination facility, you must define at least one partner
schema for vendor master records and one for purchasing documents. When schemas
are defined, the previously created partner roles are assigned to the relevant schema.
The partner schema enables you to create various groupings for partner roles and
assign these to the various account groups and purchasing document types.
Figure 106: Partner Determination (2)
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SCM520 Lesson: Vendor Master Record: Customizing
When defining partner schemas, you can set various indicators:
• No Change indicator
If it is not subsequently to be possible to change the partner defined in the vendor
master record, you must set the No Change indicator in the partner schema
for the vendor master records.
If the partner role adopted as the default value from the vendor master record is
not subsequently to be changeable, the relevant indicator must be set when the
partner schema is defined for the purchasing document.
• Mandatory indicator
The Mandatory indicator determines whether or not a partner role is mandatory
in a certain object (such as a vendor master record or purchase order).
When defining the partner schemas for purchasing documents, you must take two
further control parameters into account:
• Higher Levels indicator
If the Higher Level indicator has been set, the system searches for partner roles at
purchasing organization level if none exist at the plant or vendor subrange levels.
• End indicator
The End indicator specifies the time of partner determination. If the End
indicator has been set, the partner roles are defaulted from the vendor master
record (or, in the case of release orders, from the relevant contract) at the end
of the document entry process (when the document is saved/checked). If the
indicator has not been set, the partner roles are determined when a purchasing
document is created.
Partner determination at the time the document is checked/saved is particularly
advantageous if different data has been stored in the vendor master record at
the plant and/or vendor subrange levels (that is to say, if partners have been
maintained at these levels). The system checks whether all document items
contain the same plant or subrange. If so, the system searches for partners that
are defined just at this level.
If partner determination takes place immediately, the plant from the default
values (personal settings in the purchase order) is used for the partner
determination process.
Only if the process takes place at the end are the plants that were actually entered
in the items taken into account. If a PO contains several items with different
plants, the partners are determined at purchasing organization level, irrespective
of whether or not the Higher Level indicator has been selected.
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Unit 8: Selected Customizing Topics SCM520
Caution: Different invoicing parties that are not determined until the
check/save phase are not taken into account in price determination.
Example: Conditions have been created for a different invoicing party
(SAP Menu → Materials Management → Purchasing → Master Data
→ Conditions → Discounts/Surcharges → By Invoicing Party). Since
price determination is carried out at the start but the invoicing party is not
determined until the end (due to the fact that the End indicator has been set),
the conditions of the invoicing party are not found. In order for the invoicing
party's conditions to be found, you should carry out a new price determination
process or cancel the end indicator in the partner schema.
Figure 107: Practical Example with Partner Roles
394 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Vendor Master Record: Customizing
Example:You want to use partners for the message determination. The following is
required:
1. You determine the account group for the vendor for which you want to enter the
partner. You will find the account group in the administrative data of the vendor
master record. In our example, the account group LIEF is for the vendor 1005.
2. Determine the partner schema for this account group. In our example, three
partner schemas are stored for the account group LIEF: IDE1 for the purchasing
organization, IDE2 for the vendor subranges and IDE3 for the plant data.
3. Check whether these partner schemas contain the partner role ordering address.
If the role has not already been entered, you must add it.
4. You determine the account group for the vendor which you want to enter as
the ordering address. In our example, this is the account group 0001 for the
vendor 1040.
5. Check whether the partner role ordering address is permitted for vendors of
the account group 0001. If the role is not already permitted, you must add the
missing table entry.
6. Enter the vendor 1040 as the partner ordering address (BA) in the vendor master
record for vendor 1005 on the level of the purchasing organization.
If the indicator Higher level is not set in the purchasing document (step 8), you
must also enter the partner role on the plant subrange level, and if necessary
on the vendor subrange level.
7. Check which partner schema is used to determine the partner roles for the
purchasing document type with which you want to create the purchasing
document. In our example, this is the partner schema 0002 for the purchasing
document type NB.
8. Check whether the partner schema 0002 for purchasing documents contains the
partner role ordering address. If the partner role has not already been entered,
you must add it. If necessary, set the indicator Higher level (see step 6).
If you now create a purchasing document with document type NB for the vendor 1005,
the partner 1005 is determined as the ordering address.
In order to be able to output a message to this partner, there must be a message
condition record in the master data of Purchasing that determines the partner.
Hint: For planned delivery costs, you can also enter a vendor directly in
the condition details for a condition type defined as delivery costs in the
purchasing document or info record. This is then calculated for planned
delivery costs automatically when the invoice is created, without partner
settings having to be made for this purpose.
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Unit 8: Selected Customizing Topics SCM520
Define partner roles:
SAP Customizing → Implementation Guide → Materials Management → Purchasing
→ Partner Determination → Partner Roles → Define Partner Roles
SAP Customizing → Implementation Guide → Materials Management → Purchasing
→ Partner Determination → Partner Roles → Define Permissible Partner Roles
per Account Group
Define partner schema for vendor master records
SAP Customizing → Implementation Guide → Materials Management → Purchasing
→ Partner Determination → Partner Settings in Vendor Master Record → Define
Partner Schemas
SAP Customizing → Implementation Guide → Materials Management → Purchasing
→ Partner Determination → Partner Settings in Vendor Master Record → Assign
Partner Schemas to Account groups
Define partner schema for purchasing documents:
SAP Customizing → Implementation Guide → Materials Management → Purchasing
→ Partner Determination → Partner Settings in Purchasing Documents → Define
Partner Schemas
SAP Customizing Einführungsleitfaden → Materialwirtschaft → Einkauf →
Partnerfindung → Partnereinstellung in Einkaufsbelegen → Partnerschemata zu
Belegarten zuordnen
Create message condition record:
SAP Menu → Logistics → Materials Management → Purchasing → Master Data
→ Messages → Purchase Order / RFQ / Outline Agreement / Scheduling Agreement
Delivery Schedule → Create
396 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Vendor Master Record: Customizing
Exercise 17: Vendor Master Record:
Customizing
Exercise Objectives
After completing this exercise, you will be able to:
• Create account groups and use new partner roles
Business Example
You are using an e-procurement system in your enterprise. It is therefore desirable
that the Internet address of a vendor that is passed on to the e-procurement system is
already stored in that vendor's master record. In addition, it is necessary to redefine
the partner determination process for this vendor.
Task 1:
Analyze the field control settings in the vendor master record.
1. Which influencing factors determine the field status of the general data in the
vendor master record?
2. Which influencing factors determine the field status of the purchasing data
in the vendor master record?
3. What is the status of the fields PO Currency (purchasing data), External
Manufacturer (general data), and Internet Mail Address (general data), during
the creation of a vendor master record with the account group ZTMM for
purchasing organization 1000? Check the settings made for the individual
influencing factors in Customizing.
Field Account group Purchasing Transaction
ZTMM organization Create Vendor
1000 Centrally
Order currency
External
manufacturer
Internet e-mail
address
Continued on next page
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Unit 8: Selected Customizing Topics SCM520
4. What is the net effect of the influencing factors mentioned with respect to the
resulting field status when create a vendor with the relevant organizational data?
Field Field status Reason
PO currency
External manufacturer
Internet mail address
Task 2:
Create new account group.
1. For some vendors belonging to purchasing organization 1000, you need the
Internet mail address in the vendor master record data.
Create a new account group GR## with the short description account group
##. Create the new account group by copying group ZTMM. Set up the field
control in such a way that the Internet Mail Address field has to be maintained
when a vendor master record is created.
Why is it sufficient to change the field control of the account group accordingly?
2. Test the newly-designed field selection by creating a new vendor master record
T-K520E## with the account group GR## for purchasing organization 1000.
Task 3:
Optional: Change partner setting for vendor master record.
1. You need a new partner role ## for the vendors assigned to account group
GR##. Create a new partner role with the following data:
Hint: For group 01 only
You cannot create role 01 because it already exists. Change the data of
the existing role 01 accordingly.
Partner role ##
Description Partner role ##
Type of partner number LI (vendor)
Continued on next page
398 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Vendor Master Record: Customizing
The new partner role is to be capable of being used just once in the master data
for a vendor.
2. Assign partner role ## (partner role ##) to account group ZTMM.
3. Define a new partner schema PS## for vendor master records with the
description schema-##, containing the partner roles vendor, invoicing party
and the new partner role.
4. Assign partner schema PS## to account group GR## at all three organizational
levels.
5. Test the new settings by changing vendor master record T-K520E##. Create
vendor T-K520A## at the level of the purchasing organization 1000 with
partner role ## as partner.
6. Is it possible to specify that vendor 1000 assumes the role ## (instead of vendor
T-K520A##) in the vendor master record T-K520E##? Give reasons for the
result.
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Unit 8: Selected Customizing Topics SCM520
Solution 17: Vendor Master Record:
Customizing
Task 1:
Analyze the field control settings in the vendor master record.
1. Which influencing factors determine the field status of the general data in the
vendor master record?
a) Both the account group and the transaction used are factors influencing the
field status of the general data in the vendor master record.
2. Which influencing factors determine the field status of the purchasing data
in the vendor master record?
a) The field status of the purchasing data is determined by the account group,
the transaction used, and the purchasing organization.
3. What is the status of the fields PO Currency (purchasing data), External
Manufacturer (general data), and Internet Mail Address (general data), during
the creation of a vendor master record with the account group ZTMM for
purchasing organization 1000? Check the settings made for the individual
influencing factors in Customizing.
Field Account group Purchasing Transaction
ZTMM organization Create Vendor
1000 Centrally
Order currency
External
manufacturer
Internet e-mail
address
a) SAP Menu → Tools → Customizing → IMG → Execute Project
Choose SAP Reference IMG.
SAP Customizing Implementation Guide → Logistics - General →
Business Partner → Vendors → Control → Define Account Groups and
Field Selection (Vendor)
Continued on next page
400 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Vendor Master Record: Customizing
Position the cursor on the account group ZTMM and branch to the detail
screen via Goto → Details. In the Field Status area, choose Purchasing
Data. Among others, the Purchasing Data group includes the mandatory
field PO Currency.
Navigate back to the detail screen for the account group. Now go to the
Communication group under General Data. The Internet Mail Address
field is hidden due to the account group.
Navigate one step back and choose the field selection group Control. The
External Manufacturer field is located on the second page of the data. You
access the second page via Next Page in the system function bar. The
External Manufacturer field is defined as an optional-entry field.
b) SAP Customizing Implementation Guide → Logistics - General →
Business Partner → Vendors → Control → Define Screen Layout Specific
to Purchasing Organization
Via Goto → Details, access the detail screen for the Purchasing
Organization * (default field status), and from there go to the Purchasing
Data group by means of Purchasing Data. The Purchase Order Currency
field is defined as an optional-entry field.
c) SAP Customizing Implementation Guide → Logistics - General →
Business Partner → Vendors → Control → Define Transaction-Dependent
Screen Layout
By means of Goto → Details, branch to the detail screen for the activity
category Create Vendor (Centrally) and proceed as per the field selection
determined by means of the account group. All three fields are defined as
optional-entry fields.
d)
Field Account group Purchasing Transaction
ZTMM organization Create Vendor
1000
Order currency Required entry Optional entry Optional entry
External Optional entry __ Optional entry
manufacturer
Internet mail Suppress __ Optional entry
address
Continued on next page
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Unit 8: Selected Customizing Topics SCM520
4. What is the net effect of the influencing factors mentioned with respect to the
resulting field status when create a vendor with the relevant organizational data?
Field Field status Reason
PO currency
External manufacturer
Internet mail address
a)
Field Field status Reason
Order currency Required entry A required
(mandatory) entry
has higher priority
than an optional entry.
External manufacturer Optional entry All influencing factors
determine that the
field is an optional
entry field.
Internet mail address Suppress Hide has the highest
priority.
Task 2:
Create new account group.
1. For some vendors belonging to purchasing organization 1000, you need the
Internet mail address in the vendor master record data.
Create a new account group GR## with the short description account group
##. Create the new account group by copying group ZTMM. Set up the field
control in such a way that the Internet Mail Address field has to be maintained
when a vendor master record is created.
Continued on next page
402 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Vendor Master Record: Customizing
Why is it sufficient to change the field control of the account group accordingly?
a) The status of the Internet Mail Address field is defined as optional entry
in Customizing (influencing factors account group and transaction). If
the Internet Mail Address field is defined as a required-entry field in
Customizing for the account group, this setting has a higher priority for
the field status than optional entry.
b) SAP Menu → Tools → Customizing → IMG → Execute Project
Choose SAP Reference IMG.
SAP Customizing Implementation Guide → Logistics - General →
Business Partner → Vendors → Control → Define Account Groups and
Field Selection (Vendor)
Copy the account group ZTMM and designate the copy GR## (account
group ##). Change the field status by specifying the Internet Mail
Address field as a required-entry field (under General Data, field group
Communication).
2. Test the newly-designed field selection by creating a new vendor master record
T-K520E## with the account group GR## for purchasing organization 1000.
a) SAP Menu → Logistics → Materials Management → Purchasing →
Master Data → Vendor → Central → Create
The e-mail field is now a required-entry field.
Task 3:
Optional: Change partner setting for vendor master record.
1. You need a new partner role ## for the vendors assigned to account group
GR##. Create a new partner role with the following data:
Hint: For group 01 only
You cannot create role 01 because it already exists. Change the data of
the existing role 01 accordingly.
Partner role ##
Description Partner role ##
Type of partner number LI (vendor)
Continued on next page
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Unit 8: Selected Customizing Topics SCM520
The new partner role is to be capable of being used just once in the master data
for a vendor.
a) SAP Menu → Tools → Customizing → IMG → Execute Project
Choose SAP Reference IMG.
SAP Customizing → Implementation Guide → Materials Management
→ Purchasing → Partner Determination → Partner Roles → Define
Partner Roles
Using New Entries, you enter the partner role ## with the specified
designation and type of partner number. Since the partner role is only to
be used once in the master data for a vendor, you must set the Unique
indicator in the master data.
2. Assign partner role ## (partner role ##) to account group ZTMM.
a) SAP Customizing → Implementation Guide → Materials Management
→ Purchasing → Partner Determination → Partner Roles → Define
Permissible Partner Roles per Account Group
Via New Entries, enter the partner role ## (partner role ##) and the account
group ZTMM.
Do not enter any other indicators.
3. Define a new partner schema PS## for vendor master records with the
description schema-##, containing the partner roles vendor, invoicing party
and the new partner role.
a) SAP Customizing → Implementation Guide → Materials Management
→ Purchasing → Partner Determination → Partner Settings in Vendor
Master Record → Define Partner Schemas
Via New Entries, create a new partner schema with the description PS##
(schema-##).
Select the new entry and branch to the partner roles for this schema via the
dialog structure. Via New Entries, create the partner roles VN (vendor), IP
(invoicing party), and ## (partner role ##). Save your input.
Continued on next page
404 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Vendor Master Record: Customizing
4. Assign partner schema PS## to account group GR## at all three organizational
levels.
a) SAP Customizing → Implementation Guide → Materials Management
→ Purchasing → Partner Determination → Partner Settings in Vendor
Master Record → Assign Partner Schemas to Account groups
For account group GR##, enter schema PS## as partner schema instead of
IDE1 and IDE2 at all organizational levels. Save your entries.
5. Test the new settings by changing vendor master record T-K520E##. Create
vendor T-K520A## at the level of the purchasing organization 1000 with
partner role ## as partner.
a) SAP Menu → Logistics → Materials Management → Purchasing →
Master Data → Vendor → Purchasing → Change (Current)
6. Is it possible to specify that vendor 1000 assumes the role ## (instead of vendor
T-K520A##) in the vendor master record T-K520E##? Give reasons for the
result.
a) Vendor 1000 cannot assume the role ## in the vendor master record
T-K520E##. This is because the partner role ## has only been assigned
to the account group ZTMM. Vendor 1000 has been created with the
account group 0001; there is no assignment of partner role ## to account
group 0001.
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Unit 8: Selected Customizing Topics SCM520
Lesson Summary
You should now be able to:
• Describe the control options afforded by the account group
• Name the factors influencing field selection in the vendor master record
• Describe the Customizing settings for partner determination
406 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Document Types in Purchasing
Lesson: Document Types in Purchasing
Lesson Overview
This lesson focuses on documents relevant for purchasing and field control on
document level. We will also discuss the relationship between the document type, the
item category, and the account assignment category.
Lesson Objectives
After completing this lesson, you will be able to:
• Describe the settings necessary to define a new document type
• Set up the use of the item and account assignment categories dependent on
the document type
• Name the influencing factors with regard to the control of purchasing document
field selection
Business Example
As part of a project in your company, you have been given the task of setting
document types relevant to purchasing in Customizing for the SAP system according
to the requirement catalog.
Definition of Document Types in Customizing
For each document category (requisitions, RFQs, purchase orders, contracts, and
scheduling agreements) in purchasing, you can define several document types. You
create new document types for the relevant document category in Customizing for
purchasing.
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Unit 8: Selected Customizing Topics SCM520
Figure 108: Document Types in Purchasing
Various control parameters are stored in the system for each document type. You can
assign a number range for internal number assignment and a second number range for
external number assignment to each document type. The following graphic shows
further settings you can make when defining document types:
408 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Document Types in Purchasing
Figure 109: What the Document Type Determines
The definition of new document types is carried out in three steps.
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Unit 8: Selected Customizing Topics SCM520
Figure 110: Define Document Types
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SCM520 Lesson: Document Types in Purchasing
In the first step, you can define the following general parameters:
• Item number interval
The item number interval determines the size of the steps between the default
item numbers in purchasing documents.
• Field selection key
This determines, for the relevant purchasing document type, which attributes
the fields of the purchasing document are to have. You maintain the field
attributes in Customizing for the relevant document in Define Screen Layout at
Document Level.
• Control indicator
This indicator allows you to differentiate between the various possible uses of a
purchasing document. In connection with purchase orders, the control indicator
determines that certain document categories can only be used to carry out stock
transfers without a billing document, for example (control indicator T).
In the case of purchase requisitions, you can use this indicator to determine that
the setting up of an outline purchase agreement is requested (control indicator R).
• Layout (display variant)
The layout (formerly known as the display variant) controls the appearance of a
document. For example, an outline agreement has a different layout than a
standard purchase order, and thus a different document structure.
• The Stock Transfer: Take Vendor Data into Account indicator
This indicator determines whether the data from the vendor master record is to
be taken into account when a stock transport order or stock transport scheduling
agreement is created. For this to occur, a vendor master record must have been
assigned to the supplying plant.
The system then adopts the data from the vendor master record (such as the
currency, and price determination indicator) and from the info record (for
example, the planned delivery time and order unit), and updates the statistics
of the logistics information system for the vendor.
• ArchiveLink document type
This classifies purchasing documents so that they can be stored via SAP
ArchiveLink by document type.
After you have defined these parameters in the first step, you must then assign the
permissible item categories in a second step. To do so, select the document type and
branch via the dialog structure to the Allowed Item Categories screen.
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Unit 8: Selected Customizing Topics SCM520
Figure 111: Assign Item Categories
All item categories that are to be used when the selected document type is used must
be listed in this table. When creating a new purchasing document type, you can only
use the item categories offered by the system via the input help.
In the third step, you link the external purchasing document directly to the requisition.
412 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Document Types in Purchasing
Figure 112: Link Purchase Requisition and External Purchasing Document
All combinations of document type and item category that can serve as a basis for
converting a requisition into a purchase order must be listed.
Example:
It is to be possible to convert requisition items with the item category blank (standard)
and item category L (subcontracting) into purchase orders with the item category L.
For this purpose, the following table entries must exist:
Purchase requisition Purchasing document (purchase
order)
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Unit 8: Selected Customizing Topics SCM520
Document Description ItemCat Dscr ItemCat Dscr
type ItemCat ItemCat
NB Purchase Standard L Subcon-
Requisition tracting
NB Purchase L Subcon- L Subcon-
Requisition tracting tracting
The following additional parameters can be defined for each table entry:
• No Acct Assgt indicator
This specifies that a purchase order item may not contain any account
assignment, regardless of whether there is an account assignment in the purchase
requisition or not.
• Contract Release Order/SA Delivery Schedule indicator
This determines whether release orders or delivery schedule lines are possible in
the purchasing document (for example, contract or scheduling agreement).
• Dialog indicator
This indicator determines whether the system issues a message to the user in the
event of a certain combination of document type and item category. The message
draws the user's attention to the fact that the document type of the requisition
differs from that of the external purchasing document.
Define Document Types:
SAP Customizing Implementation Guide → Materials Management → Purchasing →
Purchasing Document (e.g. Purchase Order, Contract) → Define Document Types
To be able to use account assignment categories in purchasing documents, you must
store all desired combinations of item category and account assignment category
in a table.
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SCM520 Lesson: Document Types in Purchasing
Figure 113: Combination of Item Categories/Account Assignment Categories
Example:
In your enterprise, PO items with the item category L are to be generally assigned
to cost centers. In order that such PO items can only be created with the account
assignment category K, (a) you must assign account assignment category K to the item
category L in this table, and (b) no other entry must exist for item category L.
In contrast to the item categories, you can use your own account assignment
categories. The following graphic shows which controls are possible using account
assignment categories, taking category K (Cost center) as an example:
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Unit 8: Selected Customizing Topics SCM520
Figure 114: Detail Screen for Account Assignment Category K
You can store various control parameters in the detail view of the individual account
assignment categories. These include control parameters for goods or invoice receipts
and settings controlling the options for changing the account assignment in purchasing
and invoice verification.
Furthermore, the field selection of a purchasing document can be determined in
dependence on the account assignment at this point.
Define combination of item categories and account assignment categories:
SAP Customizing Implementation Guide → Materials Management → Purchasing →
Account Assignment → Define Combination of Item Categories/Account Assignment
Categories
Define account assignment categories:
SAP Customizing Implementation Guide → Materials Management → Purchasing →
Account Assignment → Maintain Account Assignment Categories
416 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Document Types in Purchasing
Define Screen Layout of Purchasing Documents
You can define the field status for all purchasing documents by means of field selection
keys. A field selection key determines whether the following applies to a field:
• Entry is not possible because the field is suppressed (hidden)
• Entry is not possible, but the value of the field is displayed (display field)
• Entry is mandatory (required-entry field)
• Entry is optional (optional-entry field)
Figure 115: Factors Influencing Field Selection in Purchasing Documents
The screen layout of a purchasing document depends on the following influencing
factors:
• Transaction used
• Activity category
• Document type
• Item category
• Account assignment category
• Release status of document
• User parameter EFB
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Unit 8: Selected Customizing Topics SCM520
Attributes of fields can be controlled by each individual factor. If the attribute of a
field is determined variously by several factors, the following linkage schema applies:
Instance Suppress Display Required Optional
entry entry
Suppress Suppress Suppress Suppress Suppress
Display Suppress Display Display Display
Required Suppress Display Required Required
entry entry entry
Optional Suppress Display Required Optional
entry entry entry
Example:
When creating a standard purchase order with the standard item category, the
following field selection key is determined for the Material group field:
• Field selection key ME21N (Create/Change Purchase Order transaction):
The Material Group field is an optional field.
• Field selection key AKTH(Create activity category):
The Material Group field is an optional field.
• Field selection key NBF (purchasing document type NB):
The Material Group field is an optional field.
• Field selection key PT0F (item category Standard):
The Material Group field is a mandatory (required-entry) field.
The combination of field selection keys ME21N, AKTH and NBF means that the field
is an optional field. Because the Material Group field is defined as a mandatory field
in the field selection key PT0F however, this means that the field requires an entry
when a purchase order is being created.
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SCM520 Lesson: Document Types in Purchasing
Field Selection Keys for Purchasing Documents
There are various types of field selection keys for purchasing documents:
• Field selection key transaction
This field selection key is firmly linked to the transaction used. For the Change
Contract transaction, for example, this is field selection key ME32and for the
Display Contract transaction, it is key ME33. For the Enjoy purchase order,
there is only one field selection key, ME21N.
• Field selection key activity category
There are four activity categories
– AKTH (creation of items)
– AKTV (changing of items)
– AKTA (display of items)
– AKTE (PO extension)
The field selection key Activity Category is necessary because it is possible to
add an item in the Change Contract transaction (ME32), for example. The field
selection key AKTH would be used for this item.
• Field selection key purchasing document type
A separate field selection key can be assigned to each type of purchasing
document. For example, the field selection key UBF is assigned to the document
type UB (stock transport orders within a company code). In this field selection
key, the Price and Price Unit fields are suppressed.
• Field selection key item category/document category
This field selection key is determined from the item category in combination
with the document category. The first two characters of the field selection key
consist of the letters PT, the third of the item category (internal representation),
and the fourth of the document category:
– A for RFQs
– B for requisitions
– F for purchase orders
– K for contracts
– L for scheduling agreements
This would mean you would use field selection key PT3F for a subcontracting
item in a purchase order.
• Field selection key function authorization (EFB)
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Unit 8: Selected Customizing Topics SCM520
This field selection reference key serves to control authorization for price display
or entry in external purchasing documents (POs or outline purchase agreements).
If the user parameter EFB (function authorizations in purchasing) has been
assigned to a user, this field selection key is used as well.
• Field selection key release status
The field status of a purchase requisition can be set using the field selection
key for the release indicator independently of the current release status of the
requisition.
Hint: The field selection keys listed should not be deleted because this would
cause terminations in the dialog processing. However, you can change the
attributes of the individual fields in the field selection keys.
Define/change field selection key:
SAP Customizing Implementation Guide → Materials Management → Purchasing
→ Purchasing Document (Purchase Requisition, Purchase Order, etc.) → Define
Screen Layout at Document Level
Define/change parameter EFB:
SAP Customizing Implementation Guide → Materials Management → Purchasing →
Authorization Management → Define Function Authorizations for Buyers
You can find additional information on the EFB parameter in the lesson 'Special
Aspects of Customizing'.
420 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Document Types in Purchasing
Exercise 18: Document Types
Exercise Objectives
After completing this exercise, you will be able to:
• Define new document types
Business Example
Up to now, you have been using just a release strategy with item-wise release for
purchase requisitions. You also intend to define a release strategy with overall release.
For this reason, a new document type has to be defined for requisitions. To make sure
that the requisitioner is entered in the requisition, the field control also has to be
changed.
Task 1:
Define new document type for purchase requisitions.
1. Create a new document type for requisitions with overall release. To do so,
copy document type NB (purchase requisition).
Give the new document type GR## the designation Requisition##. Set the
appropriate indicator to enable overall release for purchase requisitions.
During the copying process, you will be asked to specify the objects to be
copied. Copy only the entry itself.
2. You want purchase requisition items with the item type Normal only to be
created for the new document type.
Specify that the item category standard is to be the only permissible category
for the new document type.
3. All requisitions created with the new document type are only to be capable
of being converted into POs of the document type NB with the item category
standard. Establish the corresponding linkage between requisition and purchase
order.
4. Optional: Check in Customizing whether the corresponding entry for the new
document type GR## for requisitions exists for POs with the document type NB.
5. Test the new document type by creating a requisition with the document type
GR##. Request 10 pc of material T-M520A## for plant 1000.
Continued on next page
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Unit 8: Selected Customizing Topics SCM520
6. Try to convert the requisition from task 1.5 into a purchase order with the
document type FO (framework order). Use vendor T-K520A## for the
purchase order.
Which system message do you get? Can you save the PO?
_________________________________________________
_________________________________________________
7. Convert the requisition from task 1.5 into a PO of document type NB (standard
purchase order). Use vendor T-K520A## again.
Task 2:
Change field control for the new document type.
1. What can field selection depend on when processing purchase requisitions?
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
2. The field selection should therefore be changed in such a way that the
requisitioned (requester) has to be specified when a requisition of document
type GR## is created. For this purpose, define a new field selection key B## by
copying the key NBB and making the desired change in the new key.
Change the document type GR## by assigning the new field selection key B##
to the new document type.
3. Test the newly defined field selection by creating a requisition with the document
type GR##. Request 20 pc of material T-M520A## for plant 1000.
422 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Document Types in Purchasing
Solution 18: Document Types
Task 1:
Define new document type for purchase requisitions.
1. Create a new document type for requisitions with overall release. To do so,
copy document type NB (purchase requisition).
Give the new document type GR## the designation Requisition##. Set the
appropriate indicator to enable overall release for purchase requisitions.
During the copying process, you will be asked to specify the objects to be
copied. Copy only the entry itself.
a) SAP Menu → Tools → Customizing → IMG → Execute Project
Choose SAP Reference IMG.
SAP Customizing Implementation Guide → Materials Management →
Purchasing → Purchasing Requisition → Define Document Types
Select the document type NB (purchase requisition) and copy it.
Enter the new document type GR## with the designation Purchase
Requisition##. Set the indicator for overall release. Confirm your input
with Enter and choose the alternative Copy Entry Only. Save your data.
2. You want purchase requisition items with the item type Normal only to be
created for the new document type.
Specify that the item category standard is to be the only permissible category
for the new document type.
a) SAP Customizing Implementation Guide → Materials Management →
Purchasing → Purchasing Requisition → Define Document Types
Select the new document type GR## and then branch to the admissible
item categories via the dialog structure. Enter the item category standard
via New Entries. Return to the overview screen.
Continued on next page
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Unit 8: Selected Customizing Topics SCM520
3. All requisitions created with the new document type are only to be capable
of being converted into POs of the document type NB with the item category
standard. Establish the corresponding linkage between requisition and purchase
order.
a) SAP Customizing Implementation Guide → Materials Management →
Purchasing → Purchasing Requisition → Define Document Types
Select the document type GR## and branch to the permissible item
categories via the dialog structure. Select the item category blank
(standard) and branch further to the requisition/document type linkage via
the dialog structure. Go to New Entries and choose the document type NB
(standard purchase order) from the first column.
Confirm your entry with Enter. This will cause the standard item type to be
entered automatically in the line for both document types. Save your data.
4. Optional: Check in Customizing whether the corresponding entry for the new
document type GR## for requisitions exists for POs with the document type NB.
a) SAP Customizing Implementation Guide → Materials Management →
Purchasing → Purchase Orders → Define Document Types
Select document type NB and branch to the permissible item categories via
the dialog structure. Select the item category blank (standard) and branch
further to the requisition/document type linkage via the dialog structure.
The table shown there contains the corresponding entry for the new
document type GR## for purchase requisitions.
5. Test the new document type by creating a requisition with the document type
GR##. Request 10 pc of material T-M520A## for plant 1000.
a) SAP Menu → Logistics → Materials Management → Purchasing →
Purchase Requisition → Create
6. Try to convert the requisition from task 1.5 into a purchase order with the
document type FO (framework order). Use vendor T-K520A## for the
purchase order.
Which system message do you get? Can you save the PO?
_________________________________________________
Continued on next page
424 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Document Types in Purchasing
_________________________________________________
a) SAP Menu → Logistics → Materials Management → Purchasing →
Purchase Order → Create → Vendor/Supplying Plant Known
You get an error message. The purchase requisition from task 1.5, which
has document type GR##, cannot be converted into a PO of document type
FO (framework order) because the settings in Customizing do not allow
this. Terminate the transaction.
7. Convert the requisition from task 1.5 into a PO of document type NB (standard
purchase order). Use vendor T-K520A## again.
a) SAP Menu → Logistics → Materials Management → Purchasing →
Purchase Order → Create → Vendor/Supplying Plant Known
The PO can be created because the Customizing settings allow requisitions
of document type GR## to be converted into POs of document type NB
(standard purchase order).
Task 2:
Change field control for the new document type.
1. What can field selection depend on when processing purchase requisitions?
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
Continued on next page
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Unit 8: Selected Customizing Topics SCM520
_________________________________________________
a) On the document type:SAP Customizing Implementation Guide →
Materials Management → Purchasing → Purchase Requisition → Define
Document Types
Note the field selection key for the document type you are working with.
SAP Customizing Implementation Guide → Materials Management →
Purchasing → Purchase Requisition → Define Screen Layout at Document
Level
The other field selection keys besides the field selection key for document
type are:
• AKT* for activity
• ME5* for transaction
• PT*B for item type
• FZ* for release status
• $$* for user parameter EFB
You can find the field selection for the accounting assignment category
directly from the accounting assignment category:
SAP Customizing Implementation Guide → Materials Management →
Purchasing → Account Assignment → Maintain Account Assignment
Categories
The document data determines which field selection key is actually
effective in the application. There is no analysis function on the basis of
which a field has a certain attribute.
2. The field selection should therefore be changed in such a way that the
requisitioned (requester) has to be specified when a requisition of document
type GR## is created. For this purpose, define a new field selection key B## by
copying the key NBB and making the desired change in the new key.
Continued on next page
426 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Document Types in Purchasing
Change the document type GR## by assigning the new field selection key B##
to the new document type.
a) SAP Customizing Implementation Guide → Materials Management →
Purchasing → Purchase Requisition → Define Screen Layout at Document
Level
Copy the field selection key NBB and change the description to B##
(group ##). After confirming your input with Enter, go to the detail screen
for the new field selection key via Goto → Details and define requester
as a mandatory field in the field selection group Reference Data: Item.
Navigate back to the overview screen and save your data.
b) SAP Customizing Implementation Guide → Materials Management →
Purchasing → Purchasing Requisition → Define Document Types
Enter the new field selection key B## on the overview screen for the
document type GR##.
3. Test the newly defined field selection by creating a requisition with the document
type GR##. Request 20 pc of material T-M520A## for plant 1000.
a) SAP Menu → Logistics → Materials Management → Purchasing →
Purchase Requisition → Create
The system requires you to enter the requisitioner.
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Unit 8: Selected Customizing Topics SCM520
Lesson Summary
You should now be able to:
• Describe the settings necessary to define a new document type
• Set up the use of the item and account assignment categories dependent on
the document type
• Name the influencing factors with regard to the control of purchasing document
field selection
428 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Version Management in Purchasing
Lesson: Version Management in Purchasing
Lesson Overview
This unit gives you an overview of version management in purchasing. Version
management is available within purchasing as of SAP R/3 Enterprise. The principal
advantage of using this facility is that it enables you to track changes made to
requisitions and external purchasing documents in the course of time.
Lesson Objectives
After completing this lesson, you will be able to:
• Describe the advantages of using version management
• Use version management in purchasing
• Describe the settings that can or must be made for version management in
Customizing for purchasing
Business Example
In your enterprise, requisitions and other purchasing documents are subject to frequent
revision. For this reason, you wish to keep track of all changes made to documents
after their initial creation.
Version Management in Purchasing
As of SAP R/3 Enterprise, it is possible to generate versions of requisitions and
external purchasing documents using the version management facility. A version
represents a collection of change documents generated through the further processing
of an existing requisition or purchasing document. It indicates the status of such a
document and extends any previously existing change documentation.
Version management affords the following advantages for procurement:
• Changes can be tracked easily.
• Data transmitted to the vendor can be checked at any time.
• Communication with the vendor is made easier. You can now refer to a certain
version of a purchase order when speaking to a vendor's representative on the
phone for instance.
• Changes to long texts are documented. Previously, it was not possible to track
changes to long texts. Version management enables you to compare different
editions of a text with each other.
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Unit 8: Selected Customizing Topics SCM520
Version Management in Purchase Requisitions
As of SAP R/3 Enterprise, you can generate versions of purchase requisitions in
transaction ME51N. A version comprises the change documents generated as a result
of subsequent changes made to the original requisition.
Figure 116: Version Management in Purchase Requisitions (ME51N)
In Customizing, you can specify which changes to a field in a purchase requisition are
version-relevant. Only a change to a version-relevant field results in the generation of
a new version. Version-relevant fields are defined as a function of the document type.
Not until a version has been flagged as Completed can the requisition be converted
into a purchase order. The processor of a requisition can manually flag versions as
Completed. However, you also have the option of having the first version (version
0, which is created automatically when a requisition is initially created) flagged as
Completed by the system.
430 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Version Management in Purchasing
Version Management in External Purchasing Documents
In addition to versions of requisitions, as of SAP R/3 Enterprise, you can also
generate versions of other purchasing documents, such as POs. A version represents
a collection of change documents generated through the further processing of an
existing purchasing document.
Figure 117: Version Management in Purchase Orders (ME21N)
If a version of a purchase order has been created, for instance, the message for the
PO is generated immediately. However, this message cannot be outputted until the
version has been flagged as Completed.
In contrast to versions of requisitions, you do not have the option of defining
version-relevant fields for versions of external purchasing documents in Customizing.
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Unit 8: Selected Customizing Topics SCM520
Customizing for Version Management
To be able to use version management, you must first activate it in the Customizing
for Purchasing under Version Management
• For Purchase Requisitions - depending on the document type
• For External Purchasing Documents - depending on the document category,
document type, and purchasing organization
(You thus have to bear in mind the distinction between internal and external
purchasing documents.)
Figure 118: Customizing Settings for Version Management
Via field selection, you can stipulate for both requisitions and external purchasing
documents whether a reason has to be recorded for each relevant change, for instance.
Set up version management:
SAP Customizing Implementation Guide → Materials Management → Purchasing →
Version Management → Set Up Version Managment for Purchase Requsitions/External
Purchasing Documents
432 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Version Management in Purchasing
Lesson Summary
You should now be able to:
• Describe the advantages of using version management
• Use version management in purchasing
• Describe the settings that can or must be made for version management in
Customizing for purchasing
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Unit 8: Selected Customizing Topics SCM520
Lesson: Special Aspects of Customizing
Lesson Overview
In particular, we will focus on user parameters and the info update indicator.
Lesson Objectives
After completing this lesson, you will be able to:
• Explain the significance of user parameters EVO and EFB
• Name the available options for controlling the use of the info update indicator
Business Example
You have been given the task of making special purchasing-relevant Customizing
settings during the implementation of an SAP system in your enterprise.
User Parameters in Purchasing
There are two purchasing-specific user parameters that can influence and control
the activities of buyers. These are the parameters EVO (default values) and EFB
(function authorizations).
434 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Special Aspects of Customizing
Figure 119: User Parameters in Purchasing
Both user parameters are defined in Customizing for purchasing and then assigned to
the relevant user by entering the keys for the parameter IDs in the user data.
Create user parameter EVO:
SAP Customizing Implementation Guide → Materials Management → Purchasing →
Environment Data → Define Default Values for Buyers
Create user parameter EFB:
SAP Customizing Implementation Guide → Materials Management → Purchasing →
Authorization Management → Define Function Authorizations for Buyers
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Unit 8: Selected Customizing Topics SCM520
User Parameter EVO
Figure 120: User Parameter EVO
This parameter enables you to change the standard settings for certain fields on a
user-specific basis. The following settings are possible on the individual tab pages:
• Indicators
On the Indicators tab page, you can influence the default values for the info
update indicator in purchase orders and quotations. If the user data does not
contain an EVO parameter, the info update indicator is preselected in purchase
orders as the default setting. In quotations, the default setting is that the info
update indicator is not preselected.
Setting the Set Acknowledgment Requirement Automatically indicator causes the
Acknowledgment Required indicator to be preselected. You can make separate
settings for POs, contracts, and scheduling agreements.
• Overview screens
436 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: Special Aspects of Customizing
On the Overview Screens tab page, you can specify whether the overview screens
for entering document items in purchasing are to be have a two-line display
(step-loop technique) or a one-line display (table control technique).
Hint: Use of the step-loop technique is not possible in the case of the
Enjoy transactions.
• Fast processing:
Since the process of creating POs with reference to a requisition was changed
substantially in SAP R/3 4.6C, most settings for fast processing are now
irrelevant. Only the Adopt All → Assign and Process Requisition indicator can
still be used in the Enjoy transactions to simplify the process of converting
requisitions to POs. The other indicators are only relevant for RFQs and outline
agreements.
By setting the Adopt All → Assign and Process Requisition indicator, you specify
that assigned requisition items are to be automatically adopted in the relevant
purchasing documents (as PO or RFQ items, or scheduling agreement delivery
schedules). This setting affects the Assign and Process Requisition transaction
and the conversion of requisitions to POs from the current stock/requirements
situation (or MRP list).
• Variants
Here you can specify whether or not the following is/are to be displayed in lists
and in the purchasing document item overview when configurable materials
are used:
– The line for the configurable material only
– The lines for the variants of a configurable material only
– Both
• Additional screens
The Change Document Type When Saving Requisition indicator enables you to
switch the document type within the transaction Purchase Order → Create →
Vendor Unknown when saving items as requisitions.
Example:
When creating a PO using the transaction Purchase Order → Create → Vendor
Unknown, you enter the desired order type for the PO on the initial screen.
The document type also applies to items that are saved not as a PO, but as a
requisition.
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Unit 8: Selected Customizing Topics SCM520
However, if the document type used does not exist for requisitions, the items
cannot be saved. Setting the Change Document Type When Saving Requisition
indicator causes a dialog box in which the document type can be reselected to
appear when items are saved as requisitions.
The Detailed Information: Availability Check in Case of Stock Transfers
indicator determines whether or not detailed information regarding the
availability of a material is shown when a stock transfer order is created using
transaction ME27. If a stock transfer order is created using transaction ME21N,
you can access the detailed information via Environment → Availability,
irrespective of the indicator setting.
• Adoption of price
You can use the EVO parameter to prevent a price from being pulled from the
last PO as a default value.
The Manual Price Becomes Gross Price indicator causes a gross price that has
been determined to be overwritten by the manually entered price. However, this
applies exclusively to the gross price condition type. All other condition types
continue to be calculated and proposed by the price determination facility.
• Source determination
The indicators for automatic source determination control the relevant default
value in the transactions Create Purchase Requisition and Purchase Order →
Create → Vendor Unknown.
If the Check Delivery Date indicator has been set, in the course of automatic
source determination the system proposes only those sources that can deliver on
the desired date. In doing so, it takes the planned delivery time and purchasing
department processing time into account.
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SCM520 Lesson: Special Aspects of Customizing
User Parameter EFB
Figure 121: User Parameter EFB
User parameter EFB enables you to restrict the function authorizations for the
requisitioning and ordering transactions on a user-specific basis.
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Unit 8: Selected Customizing Topics SCM520
With the aid of parameter EFB, you can make the following settings:
• General parameters
The EFB parameter enables you to determine whether a user can create
conditions in purchasing documents or only display them. If the Display
Conditions indicator has not been set, the relevant fields and tab pages in the
purchasing document (PO and outline agreement) are hidden. If the Enter
Conditions indicator has not been set, a field selection key controlling the field
status (display or hide) of the relevant fields must additionally be defined. If
both indicators are not selected, then the field selection key does not have to be
entered.
The Without Material indicator determines whether PO items without a material
master record may be created.
The Price Adoption indicator enables you to specify, when creating or changing a
purchase requisition item, whether the internal valuation price of the requisition
is to be adopted in the PO. It is possible to adopt the valuation price as a net price
or gross price in the purchase order.
Via the field selection keys for the purchase order (Field Sel. field) and the
Enjoy purchase requisition (FieldSelKey:Release field), it is possible to control
the statuses of individual fields on a user-specific basis.
• Possible reference objects
The indicators from these areas relate exclusively to the creation of PO items.
The indicators can be used to determine whether you must reference a preceding
document when you create a PO item. They can also be used to determine which
procurement options are allowed.
The conditions of the last purchase order are only adopted in a new PO item if
the Info Record Without Quotation indicator has been set.
• Manual source assignment
If the relevant indicators for manual source assignment have not been set,
a requester (requisitioner) can only use the automatic source determination
facility. In this case, only sources that have been entered in the source list are
taken into account. The process of automatic source determination via source list
and quota arrangement takes place independently of the status of the indicators
of the EFB parameter.
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SCM520 Lesson: Special Aspects of Customizing
Info Update Indicator
When creating a purchase order using transaction ME21N, a buyer can only stipulate
whether a corresponding info record is to be created or, if one already exists, updated.
As of SAP R/3 4.6A, the settings for the status of the info update indicator in the
purchase order have been moved to Customizing. The status of the info update
indicator in transaction ME21N is controlled by both general and user-dependent
settings.
• General setting
The setting controlling the use of plant-specific conditions is made in
Customizing for purchasing (condition control). The setting made there
determines the user-independent status of the info update indicator in transaction
ME21N.
– If conditions may be created with or without a plant (indicator blank), this
corresponds to status C of the info update indicator. Status C means that
a purchasing-organization-wide info record is created if no info record
yet exists for the relevant organizational levels (plant or purchasing
organization). If a plant-specific or purchasing-organization-wide info
record already exists, it is updated.
– If conditions may only be created on a plant-specific basis (indicator +),
this corresponds to status B of the info update indicator. Status B means
that a plant-specific info record will be created if no such record yet exists.
An existing info record will be updated.
– If conditions may not be created on a plant-specific basis (indicator -), this
corresponds to status A of the info update indicator. Status A means that a
purchasing-organization-wide info record will be created if no such info
record yet exists for the relevant organization. An existing info record
will be updated.
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Unit 8: Selected Customizing Topics SCM520
Figure 122: General Setting for Info Update Indicator
• User-dependent setting
The settings for the info update indicator incorporated in parameter EVO
override the general settings, thus affording you the opportunity to define the
status of that indicator on a user-specific basis. If the user data does not include
an EVO parameter, the info update indicator is set in a PO item as a default
value. Parameter EVO enables you to override this setting.
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SCM520 Lesson: Special Aspects of Customizing
Figure 123: User-Dependent Setting for Info Update Indicator
General setting of info update indicator for transaction ME21N:
SAP Customizing Implementation Guide → Materials Management → Purchasing →
Conditions → Define Control of Condition at Plant Level
User-dependent setting of info update indicator for PO and quotation
transactions:
SAP Customizing Implementation Guide → Materials Management → Purchasing →
Environment Data → Define Default Values for Buyers
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Unit 8: Selected Customizing Topics SCM520
Lesson Summary
You should now be able to:
• Explain the significance of user parameters EVO and EFB
• Name the available options for controlling the use of the info update indicator
444 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Unit Summary
Unit Summary
You should now be able to:
• Describe the control options afforded by the account group
• Name the factors influencing field selection in the vendor master record
• Describe the Customizing settings for partner determination
• Describe the settings necessary to define a new document type
• Set up the use of the item and account assignment categories dependent on
the document type
• Name the influencing factors with regard to the control of purchasing document
field selection
• Describe the advantages of using version management
• Use version management in purchasing
• Describe the settings that can or must be made for version management in
Customizing for purchasing
• Explain the significance of user parameters EVO and EFB
• Name the available options for controlling the use of the info update indicator
Related Information
• More information on Customizing for Materials Management is available in
course SCM550 (Cross-Application Customizing in MM).
• More information on price determination is available in course SCM521
(Conditions and Price Determination in Purchasing).
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Unit Summary SCM520
446 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Test Your Knowledge
Test Your Knowledge
1. Which document types must be linked together so that these can be referenced
when a purchasing document is being created?
Choose the correct answer(s).
□ A Requisitions and RFQs
□ B Requisitions and purchase orders
□ C RFQs and purchase orders
□ D Purchase orders and contracts
2. When a document type is copied for a purchase document, what is not copied
with it?
Choose the correct answer(s).
□ A Field selection key
□ B Number ranges
□ C Partner schema
□ D Allowed item categories
3. Parameter EVO enables you to set the default value for the info update indicator
on a user-dependent basis.
Determine whether this statement is true or false.
□ True
□ False
4. Which of the following statements apply to the parameter EFB?
The parameter EFB enables you to determine whether
Choose the correct answer(s).
□ A The price from the last purchase order appears as the default value
when a new PO is created.
□ B The conditions in an outline agreement are displayed to a user.
□ C A user may create a PO without reference to a preceding document.
□ D The planned delivery time is checked against the delivery date during
the source determination process.
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Test Your Knowledge SCM520
Answers
1. Which document types must be linked together so that these can be referenced
when a purchasing document is being created?
Answer: A, B
Links need only be maintained to the purchase requisition. No link is required
between purchasing document types.
2. When a document type is copied for a purchase document, what is not copied
with it?
Answer: C
In the IMG activity "Assign Partner Schemas to Document Types", the partner
schema must be entered manually after the copying.
3. Parameter EVO enables you to set the default value for the info update indicator
on a user-dependent basis.
Answer: True
On the Indicators tab page of parameter EVO, you can influence the default
values for the info update indicator in purchase orders and quotations.
4. Which of the following statements apply to the parameter EFB?
The parameter EFB enables you to determine whether
Answer: B, C
Statements A and D apply not to parameter EFB, but to parameter EVO.
448 © 2006 SAP AG. All rights reserved. 2006/Q2
Unit 9
External Procurement with mySAP ERP
and mySAP Business Suite
Unit Overview
This lesson provides an overview of how you can use components of mySAP ERP to
structure your procurement processes. You also learn which other possibilities are
available using mySAP Business Suite.
Unit Objectives
After completing this unit, you will be able to:
• Describe a procurement process in mySAP ERP that is carried out with the help
of SAP Enterprise Portal and SAP Enterprise Buyer.
• Explain the functions of Supplier Self Services.
• Explain the difference between scenarios in mySAP ERP and mySAP Business
Suite.
• Name the components of mySAP SCM and explain how you can use these
in the procurement process.
Unit Contents
Lesson: External Procurement with mySAP ERP .............................. 450
Lesson: External Procurement with mySAP SRM (Component of mySAP
Business Suite)...................................................................... 462
Lesson: External Procurement with mySAP SCM.............................. 469
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Unit 9: External Procurement with mySAP ERP and mySAP Business Suite SCM520
Lesson: External Procurement with mySAP ERP
Lesson Overview
This lesson provides an overview of the components of mySAP ERP and how you
can use these to structure your procurement processes. This short introduction mainly
focuses on procurement of consumable materials with Enterprise Buyer using the
Enterprise Portal.
Lesson Objectives
After completing this lesson, you will be able to:
• Describe a procurement process in mySAP ERP that is carried out with the help
of SAP Enterprise Portal and SAP Enterprise Buyer.
• Explain the functions of Supplier Self Services.
Business Example
Some of your employees only have to request consumable materials occasionally. As
a result you want to introduce a simplified procurement process so that employees can
choose the required material from an electronic catalog. This requirement is converted
to a backend purchase order and sent to the vendor from the backend system. The
vendor then confirms receipt of the purchase order using Supplier Self Services
(SUS). When the goods are delivered, the data for the goods receipt is entered in the
backend system. To complete the procedure, the vendor uses Supplier Self Services
again to create the invoice.
The mySAP ERP Application
mySAP ERP combines the advantages of efficient Enterprise Resource Planning
(ERP) software with a flexible and open technology platform (SAP NetWeaver).
This solution provides you with greater productivity, increased transparency in your
company and the necessary flexibility to adapt your business strategies quickly while
enhancing ERP functions with solutions from mySAP Business Suite.
450 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: External Procurement with mySAP ERP
Figure 124: The mySAP ERP Application
mySAP ERP provides universal functions for analyses, financial accounting,
human resources, the operating site and central enterprise entities. In addition, the
solution supports system management tasks such as user management, configuration
management, central data management and enterprise-wide use of Web Services.
Delimiting mySAP ERP and mySAP SRM
This lesson describes the subareas of mySAP ERP Procurement and Logistics
Execution.
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Unit 9: External Procurement with mySAP ERP and mySAP Business Suite SCM520
Figure 125: Delimiting mySAP ERP and mySAP SRM
The Self-Service Procurement enables employees to enter data for their requirements
directly using Employee Self-Services.
The Supplier Order Collaboration enables the technical connection of the vendor to
your procurement processes with mySAP ERP and / or mySAP SRM.
The vendor can use Supplier Self Services to confirm purchase orders, create invoices
for goods that have been delivered, and monitor the payment status.
The Catalog Content Management is used to create electronic catalogs to be used
with mySAP ERP and mySAP SRM. It may also be used to connect external catalogs.
452 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: External Procurement with mySAP ERP
Process Overview
Figure 126: Process Overview
The process depicted in the diagram consists of the following steps:
1. Using SAP Employee Self Services (ESS), the employee selects the required
item(s) from one or more catalogs.
2. This requirement results in a purchase order in the connected backend system
(SAP ERP Central Component), which is then transmitted to the vendor.
3. The vendor creates an order confirmation or delivery note for this purchase order
using SAP Supplier Self Services (SUS).
4. The goods receipt is posted in the backend system.
5. The vendor creates the invoice using SAP Supplier Self Services (SUS). The
vendor can then use SUS to check the payment status too.
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Unit 9: External Procurement with mySAP ERP and mySAP Business Suite SCM520
System Infrastructure in mySAP ERP
Figure 127: System Infrastructure in mySAP ERP
To be able to map the aforementioned process, you require the following my SAP
ERP product components:
• SAP ERP Central Component (SAP ECC) as backend system
• SAP Supplier Relationship Management (including SAP Enterprise Buyer and
SAP Supplier Self Services)
• SAP Exchange Infrastructure (SAP XI as part of SAP NetWeaver). SAP XI
serves to give processes a flexible design and enables data exchange between
components.
Hint: Please note that, as a mySAP ERP product component, SAP Supplier
Relationship Management only contains the self-service procurement scenario
(classic procurement scenario). The full scope of SRM is available as part
of the mySAP Supplier Relationship Management solution. You can find
out more information about this in the lesson "External procurement with
mySAP SRM".
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SCM520 Lesson: External Procurement with mySAP ERP
With mySAP ERP 2005 you can operate the mySAP SRM components SAP
Enterprise Buyer and SAP Supplier Self Services as add-ons in the same system. This
leads to corresponding advantages in the system operation.
You will find additional technical information in the online documentation for mySAP
ERP 2005.
The Classic Scenario
Figure 128: Classic Scenario
In the classic scenario, a shopping cart item always results in a follow-on document in
the Materials Management of the ERP system. The posting of goods receipts and the
recording of invoices can be performed in both systems.
The diagrams that follow describe the individual steps that this involves.
Requirement Request Procedure
To start with, the employee creates a shopping cart.
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Unit 9: External Procurement with mySAP ERP and mySAP Business Suite SCM520
Figure 129: Selecting Goods
The employee can assemble the contents of his or her shopping cart from various
catalogs and also add items without reference to a catalog.
Figure 130: Checking the Shopping Cart
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SCM520 Lesson: External Procurement with mySAP ERP
The employee can give the shopping cart a name and check whether this requires
approval (approval preview).
Figure 131: Completing the Shopping Cart
Enterprise Buyer Using SAP Employee Self Service and
the SAP Enterprise Portal
MySAP ERP also allows you to use the SAP Enterprise Portal. This enables
centralized access to various applications. Employees just have to log on centrally.
Employee Self Services and SAP Enterprise Buyer in the
Enterprise Portal
Employee Self Services offers direct access to Enterprise Buyer. Employees create
their shopping carts as described above.
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Unit 9: External Procurement with mySAP ERP and mySAP Business Suite SCM520
Figure 132: Creating a Shopping Cart from the Portal
The Purchasing Agent Role in the Enterprise Portal
The "Purchasing Agent" role has been created in mySAP ERP for purchasers for
the Enterprise Portal. Purchasers can use this to perform all purchase-order-related
activities such as monitoring deadlines, assigning sources, calling evaluations and so
on. These activities are carried out in the ECC backend system.
Evaluations can also be used from SAP Business Warehouse.
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SCM520 Lesson: External Procurement with mySAP ERP
Figure 133: The Purchasing Agent Role in the Enterprise Portal
By using Supplier Self Services, you can transfer vendor-relevant follow-on
documents to the Supplier Order Collaboration by means of the SAP NetWeaver
Exchange Infrastructure.
Integration of the Vendor
Vendors can download purchase orders from SUS or print them out as PDFs. A role is
assigned to vendors for this purpose that contains their authorizations.
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Unit 9: External Procurement with mySAP ERP and mySAP Business Suite SCM520
Figure 134: Integration of the Vendor
The vendor then enters data for the order confirmation and, if required, creates a
delivery note too. Once delivery has been made, the vendor also creates the invoice.
This data is then transferred to the backend system using the Exchange Infrastructure,
where it is available for the purchaser or invoice verification clerk.
460 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: External Procurement with mySAP ERP
Lesson Summary
You should now be able to:
• Describe a procurement process in mySAP ERP that is carried out with the help
of SAP Enterprise Portal and SAP Enterprise Buyer.
• Explain the functions of Supplier Self Services.
Related Information
• Further information on the subject of EBP is provided in the following courses:
– SAPSRM (Overview of mySAP SRM Solution)
– SRM210 (Enterprise Buyer)
– SRM260 (SAP Catalog and Content Management)
• Up-to-date information on mySAP SRM training courses is available at:
www.sap.com/education
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Unit 9: External Procurement with mySAP ERP and mySAP Business Suite SCM520
Lesson: External Procurement with mySAP SRM
(Component of mySAP Business Suite)
Lesson Overview
This lesson describes the additional procurement options available when using mySAP
Business Suite that enable you to use the full mySAP SRM service scope.
Lesson Objectives
After completing this lesson, you will be able to:
• Explain the difference between scenarios in mySAP ERP and mySAP Business
Suite.
Business Example
In addition to ERP processes that always result in follow-on documents in the
back-end system, you also require local scenarios in Enterprise Buyer. Enterprise
Buyer is also to be used for bid invitations and auctions.
Stand-Alone Scenario
Figure 135: Stand-Alone Scenario
462 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: External Procurement with mySAP SRM (Component of mySAP Business Suite)
With the stand-alone scenario, all purchasing documents are created only in Enterprise
Buyer. Employees first create a shopping cart. If the shopping cart requires approval,
a workflow is started. Once the shopping cart has been approved, Enterprise Buyer
generates purchasing documents. You can also use Enterprise Buyer to confirm
the goods receipt and create the invoice. Financial accounting documents only are
generated in the back-end system. Payment is made in the backend system too.
Decoupled Scenario
Figure 136: Decoupled Scenario
In a decoupled scenario, the purchasing documents stemming from shopping carts are
created either in Enterprise Buyer or in the back-end system.
Where the purchasing documents are created depends on the product category
(material group) of the ordered item. All checks affecting financial accounting are
carried out in the backend system.
After you have created the purchasing documents, subsequent process steps
(confirmation of goods receipt and receipt of invoice) are made in Enterprise Buyer or
in the back-end system.
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Unit 9: External Procurement with mySAP ERP and mySAP Business Suite SCM520
Integration of Additional Components
You can also use Enterprise Buyer in combination with other components of the
backend system as an interface for all your procurement activities.
Figure 137: Integration of Additional Components
By connecting to mySAP SACM, you can also use Enterprise Buyer to further process
requirements that have been generated in Advanced Planning and Optimization
(APO). Business Warehouse can be used for evaluations. This can be integrated
either in the portal or in Enterprise Buyer.
Bid Invitations and Auctions
You can also carry out bid invitations and auctions with mySAP SRM.
464 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: External Procurement with mySAP SRM (Component of mySAP Business Suite)
Figure 138: Bid Invitations
There are two types ofbid invitations:
• Public bid invitations can be made accessible to potential bidders over the
Internet and be published in portals for example. Bidders can then access your
website directly from the portal via a hyperlink, log on to your SRM system
and use this to enter their bid.
• Restricted bid invitations are only accessible to known bidders via e-mail.
Bidders can access your website directly via a hyperlink, log on to your SRM
system and use this to create their bid.
For bid invitations to be carried out in the form of an auction, you can use what is
known as the Live Auction component. You can also create an auction directly without
a bid invitation. The following is a brief excerpt from the live auction function:
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Unit 9: External Procurement with mySAP ERP and mySAP Business Suite SCM520
Figure 139: Auction
You stipulate a time period and regulations for the auction (for instance, acceptable
levels for price reductions).
The purchaser can monitor the auction and thus view incoming bids. The information
(such as competitors' prices, current ranking, and so on) that the bidder can see can
be configured separately.
Once the auction is finished, you can accept or reject bids. Follow-on documents
(purchase orders and contracts) can also be generated.
Evaluation Example: Vendor Evaluation
If, after a bid invitation or auction, there are no significant differences in bids, the
purchaser needs to use other decision criteria.
One example of a such a criterion might be a vendor evaluation. As well as vendor
evaluation in the back-end system, this may also take place in the Business Warehouse.
Data is made available in the analysis area of Enterprise Buyer.
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SCM520 Lesson: External Procurement with mySAP SRM (Component of mySAP Business Suite)
Figure 140: Vendor Evaluation in Enterprise Buyer
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Unit 9: External Procurement with mySAP ERP and mySAP Business Suite SCM520
Lesson Summary
You should now be able to:
• Explain the difference between scenarios in mySAP ERP and mySAP Business
Suite.
468 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: External Procurement with mySAP SCM
Lesson: External Procurement with mySAP SCM
Lesson Overview
This lesson provide an overview of the components of mySAP SCM and how you
can use these to structure your procurement processes.
Lesson Objectives
After completing this lesson, you will be able to:
• Name the components of mySAP SCM and explain how you can use these
in the procurement process.
Business Example
As your enterprise consists of several plants, requirements planning and source
determination are carried out using Advanced Planning and Optimization (APO).
The planning results are then further processed in the back-end system.
Inventory management is also to be carried out in conjunction with the vendor. This
provides you with insight into the possibilities of the Inventory Collaboration Hub
(ICH)
Component Structure
Figure 141: Overview of the mySAP SCM Solution
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Unit 9: External Procurement with mySAP ERP and mySAP Business Suite SCM520
The mySAP Supply Chain Management (mySAP SCM) solution is part of the mySAP
Business Suite. mySAP SCM enables vendors, manufacturers, dealers, business
partners and customers to:
• Collaborate in reconciling forecast and replenishment (SC Collaboration)
• Simulate and optimize strategic, operational and tactical planning targets and
convert these to feasible plans (SC Planning)
• Exchange and monitor information related to the order (SC Coordination)
• Convert planning results to sales orders and realize these (SC Execution)
Advanced Planning and Optimization (SAP APO)
SAP APO enables cross-process chain planning. Whereas planning in ERP
Central Component (ECC) is made plant by plant, which can result in conflicts in
cross-company processes, planning in SAP APO takes any possible confilict into
account from the outset and thus avoids this problem in planning.
As well as the company's own plants, vendors can also be integrated into the process
chain. This enables you to control the process so that, for example, your own
resources are taken into account in planning at the beginning before an external
procurement process is initiated.
The planning process in SAP APO contains the following components:
Figure 142: Planning Components in SAP APO
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SCM520 Lesson: External Procurement with mySAP SCM
• Supply Chain Cockpit: Graphical tool for evaluation and control of the supply
chain.
• Demand Planning (DP): Aggregated and detailed demand planning with a
wide variety of forecasting techniques on the basis of aggregated sales figures.
• Supply Network Planning (SNP): Plans the medium- to long-term horizon. In
the process, a quantity-based, cross-location, rough production and distribution
plan is created with its own rough bills of materials (BOMs) and rough work
plans. The SNP BOM contains critical products manufactured using bottleneck
resources and products with long replenishment lead times. SNP ensures that the
right quantity is available on the right day without overloading critical resources.
The maximum scheduling precision is days.
• Production Planning and Detailed Scheduling (PP/DS): Finite detailed
production planning. PP/DS uses simultaneous material and capacity planning
and optimization procedures to generate feasible sequence-optimized and
setup-optimized plans.
• Transportation Planning/Vehicle Scheduling (TP/VS): Optimizes the use of
the various means of transport and the selection of freight forwarders/carriers.
Generates deliveries and transportation orders.
• Global Available-to-Promise (ATP): Rule-based availability check; integrated
into production planning and product allocation.
Definitions of Terms
Terms used in SAP APO are different to those in ECC:
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Unit 9: External Procurement with mySAP ERP and mySAP Business Suite SCM520
Figure 143: Terms in SAP APO
Master data is maintained in the ECC (in the back-end system) and transferred from
there to SAP APO
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SCM520 Lesson: External Procurement with mySAP SCM
Process Description
Figure 144: Procurement Process with SAP APO
If a unique external procurement relationship exists for a product in SAP APO, this is
assigned as a source during the planning run for the requisition. The requisition is
then transferred to the back-end system.
This purchase requisition is then converted to a purchase order in the back-end system
and the order number transferred to SAP APO. A delivery note is then created in the
back-end system. As soon as the delivery note is created in the back-end sysem, this
is transferred automatically to SAP APO. The requirement quantities in SAP APO
are then reduced by the notified quantity. All goods movements are entered in the
back-end system. As soon as the goods receipt for the purchase order is posted, the
goods receipt is automatically transferred to SAP APO, the stock is increased and open
order quantity reduced. The delivery note is then reduced by the goods receipt amount
in SAP APO (if used). In this example, the purchase requisiton is generated in SAP
APO and all other steps, such as conversion of the purchase requisition to a purchase
order, are made in the back-end system.
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Unit 9: External Procurement with mySAP ERP and mySAP Business Suite SCM520
Inventory Collaboration Hub (SAP ICH)
Collaboration is increasingly gaining in significance due to the development
of traditional supply chains into supply networks. For manufacturers and their
component suppliers, successful collaboration starts with the guarantee of a simple
stock information flow for all involved parties, so that component suppliers always
know when a requirement exists with their customers and what it is they require.
This sort of transparency is often not so easy to guarantee in reality however. Supply
networks are usually complex and comprise a multitude of different component
suppliers, making real-time access to stock information difficult.
SAP Inventory Collaboration Hub (SAP ICH) is an internet-based software application
that guarantees more transparency, improves cooperation with component suppliers
and ensures your supply network is faster, more accurate and more flexible.
With the help of SAP ICH, mySAP SCM can provide seamless and convenient
access to stock information for you and your partners in the supply network.
SAP ICH provides the following enterprise scenarios for replenishment procurement:
1. Supplier Managed Inventory (SMI)
2. Scheduling agreement release processing
Prerequisites
Supplier Managed Inventory in SAP ICH is an independent business process. All
business partners concerned can collaborate via the platform by exchanging messages.
As various technical message formats may be used in the individual enterprises in
some cases, these must all be converted to a format that can receive SAP ICH: SAP
XML.
A prerequisite for message-based transactions is the SAP Exchange Infrastructure
(XI), which converts messages of all formats to SAP XML. This is explained more
clearly in the following graphic:
474 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: External Procurement with mySAP SCM
Figure 145: The ICH Process and System Infrastructure
The Inventory Collaboration Hub (SAP ICH) is an application component of the
mySAP Supply Chain Management (mySAP SCM) solution.
Business partners that procure replenishment can access the Inventory Collaboration
Hub hosted by their business partner via the Internet. To do this they require only
Internet access and a browser.
Edits of delivery schedules can also be downloaded from the Inventory Collaboration
Hub and can, for instance, be used in conjunction with Microsoft Office software
(Excel).
Objective
SAP ICH is intended to increase availability of materials and decrease reserve stock
at the same time.
This is achieved by vendors being able to view the requirements and stock situations
for the materials they deliver directly in the system. As a result they can recognize
changes in requirements promptly and react at once. A prerequisite for this is, of
course, that maintenance of both stock and requirements are correct. SAP ICH is
ideal for enterprises using serial production (such as the automobile industry) and
retail companies.
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Unit 9: External Procurement with mySAP ERP and mySAP Business Suite SCM520
Further Information
If you are interested in learning about the possibilities of mySAP SCM, you can find
descriptions of the individual components on our Internet site.
476 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Lesson: External Procurement with mySAP SCM
Lesson Summary
You should now be able to:
• Name the components of mySAP SCM and explain how you can use these
in the procurement process.
Related Information
• Further information on mySAP SCM is provided in the following courses:
– SAPSCM
2006/Q2 © 2006 SAP AG. All rights reserved. 477
Unit Summary SCM520
Unit Summary
You should now be able to:
• Describe a procurement process in mySAP ERP that is carried out with the help
of SAP Enterprise Portal and SAP Enterprise Buyer.
• Explain the functions of Supplier Self Services.
• Explain the difference between scenarios in mySAP ERP and mySAP Business
Suite.
• Name the components of mySAP SCM and explain how you can use these
in the procurement process.
478 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Test Your Knowledge
Test Your Knowledge
1. Which of the following statements apply to the procurement of consumable
materials using mySAP ERP?
Choose the correct answer(s).
□ A The burden is eased on the purchaser if requesters enter their
requirements in Enterprise Buyer themselves
□ B Each requester that wants to create a shopping cart in Enterprise
Buyer must also exist in the backend system as a user.
□ C You can use catalogs to support requesters in selecting the correct
products.
□ D Each requirement in Enterprise Buyer is converted to a purchase
requisition in the back-end system and is subject to the approval
process there.
2. Name three important types of APO master data for external procurement.
3. Which statements are applicable for the Inventory Collaboration Hub (SAP
ICH)?
Choose the correct answer(s).
□ A Component suppliers can use any software system
□ B Component suppliers receive messages intended for them using the
SAP Exchange Infrastructure
□ C Vendors require their own ICH system
□ D The Inventory Collaboration Hub is operated by the customer and
the manufacturer
□ E Vendors require only Internet access and browser for access to the ICH
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Test Your Knowledge SCM520
Answers
1. Which of the following statements apply to the procurement of consumable
materials using mySAP ERP?
Answer: A, C
Statement B is false. The requester only requires a user name in Enterprise Buyer.
Statement D is false. The approval process is carried out entirely in Enterprise
Buyer. Thereafter it can be decided on a process-dependent basis which
follow-on document is created in which system.
2. Name three important types of APO master data for external procurement.
Answer: Important master data for external procurement in APO includes:
location, product, and external procurement relationship.
3. Which statements are applicable for the Inventory Collaboration Hub (SAP
ICH)?
Answer: A, B, D, E
You can connect as many vendors as you like to an ICH
480 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Course Summary
Course Summary
You should now be able to:
• Describe the default values and control values found in material master records
and vendor master records
• Create and manage different types of supply sources
• Use source lists and quota arrangement for controlling automatic supply source
determination
• Execute automatic supply source determination
• Convert purchase requisitions into purchase orders efficiently
• Use procurement processes specific to Purchasing
• Describe the function and process involved in the release method for purchase
requisitions and purchasing documents
• Use and describe the vendor evaluation functions
• Describe the required Customizing settings for vendor master records and for
purchasing documents
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Course Summary SCM520
482 © 2006 SAP AG. All rights reserved. 2006/Q2
Appendix 1
List of Menu Paths Used
Unit 1: Master Data in Purchasing
Create/change/display material master record (MM01/MM02/MM03):
SAP Menu → Logistics → Materials Management → Material Master → Material
→ Create / Change / Display
Define attributes of material types (OMS2):
SAP Customizing Implementation Guide → Logistics - General → Material Master
→ Basic Settings → Material Types → Define Attributes of Material Types
Create/change/display vendor master record:
SAP Menu → Logistics → Materials Management → Purchasing → Master Data →
Vendor → Central → Create / Change / Display (XK01/XK02/XK03)
SAP Menu → Logistics → Materials Management → Purchasing → Master Data →
Vendor → Purchasing → Create / Change / Display (MK01/MK02/MK03)
Unit 2: Sources of Supply
Create/change/display info record (ME11/ME12/ME13):
SAP Menu → Logistics → Materials Management → Purchasing → Master Data →
Info Record → Create / Change / Display
Create general conditions (MEKE/MEKJ etc.):
SAP Menu → Logistics → Materials Management → Purchasing → Master Data →
Conditions → Discounts/Surcharges → By Vendor / By Invoicing Party etc.
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Appendix 1: List of Menu Paths Used SCM520
Define time-dependency in scheduling agreements and quotations (OMED and
OMEA):
SAP Customizing Implementation Guide → Materials Management → Purchasing →
RFQ/Quotation or Scheduling Agreement → Define Document Types
Define condition types:
SAP Customizing Implementation Guide → Materials Management → Purchasing →
Conditions → Define Price Determination Process → Define Condition Types
Define calculation schema:
SAP Customizing Implementation Guide → Materials Management → Purchasing →
Conditions → Define Price Determination Process → Define Calculation Schema
Create/change/display outline agreement (ME31K/ME32K/ME33K):
SAP Menu → Logistics → Materials Management → Purchasing → Outline
Agreement → Contract / Scheduling Agreement → Create / Change / Display
Create/change/display outline agreement (ME31L/ME32L/ME33L):
SAP Menu → Logistics → Materials Management → Purchasing → Outline
Agreement → Scheduling Agreement → Create / Change / Display
Create SA delivery schedule lines manually (ME38):
SAP Menu → Logistics → Materials Management → Purchasing → Outline
Agreement → Scheduling Agreement → Delivery Schedule → Maintain / Display
Create SA releases (ME84):
SAP Menu → Logistics → Materials Management → Purchasing → Outline
Agreement → Scheduling Agreement → Delivery Schedule → Create SA Release
Create SA releases from SA delivery schedule lines:
SAP Menu → Logistics → Materials Management → Purchasing → Outline
Agreement → Scheduling Agreement → Delivery Schedule → Maintain
Edit → Generate Forecast/JIT Schedule
Define document types for scheduling agreement (OMED):
SAP Customizing Implementation Guide → Materials Management → Purchasing
→ Scheduling Agreement → Define Document Types
Create release creation profile (OMUP):
SAP Customizing Implementation Guide → Materials Management → Purchasing →
Scheduling Agreement → Maint. Rel. Creation Profile for Sched. Agmt w. Rel. Docu.
484 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Appendix 1: List of Menu Paths Used
Unit 3: Source Determination
Analyze source list (ME06):
SAP Menu → Logistics → Materials Management → Purchasing → Master Data →
Source List → Follow-On Functions → Analyze
Define source list requirement at plant level (OME5):
SAP Customizing → Implementation Guide → Materials Management → Purchasing
→ Source List → Define Source List Requirement at Plant Level
Create source list manually (ME01):
SAP Menu → Logistics → Materials Management → Purchasing → Master Data →
Source List → Maintain/Display
Generate source list automatically (ME05):
SAP Menu → Logistics → Materials Management → Purchasing → Master Data
→ Source List → Follow-On Functions → Generate
Create quota arrangement (MEQ1):
SAP Menu → Logistics → Materials Management → Purchasing → Master Data →
Quota Arrangement → Maintain
Specify number ranges for quota arrangement (OMEP):
SAP Customizing Implementation Guide → Materials Management → Purchasing →
Quota Arrangement → Define Number Ranges
Set quota arrangement usage indicator (OMEQ):
SAP Customizing Implementation Guide → Materials Management → Purchasing →
Quota Arrangement → Define Quota Arrangement Usage
Define lot-sizing procedure (OM14):
SAP Customizing IMG → Materials Management → Consumption-Based Planning
→ Planning → Lot-Size Calculation → Define Lot-Sizing Procedure
Create purchase order with automatic source determination (ME25):
SAP Menu → Logistics → Materials Management → Purchasing → Purchase Order
→ Create → Vendor Unknown
Activate regular vendor per plant (OMKH):
SAP Customizing Implementation Guide → Materials Management → Purchasing →
Source Determination → Define Regular Vendor
Block vendor (MK05 and XK05):
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Appendix 1: List of Menu Paths Used SCM520
Purchasing → Master Data → Vendor → Purchasing → Block
or
Purchasing → Master Data → Vendor → Central → Block
Unit 4: Optimized Purchasing
Create purchase orders via assignment lists (ME58):
SAP Menu → Logistics → Materials Management → Purchasing → Purchase Order
→ Create → Via Requisition Assignment List
or
SAP Menu → Logistics → Materials Management → Purchasing → Purchase
Requisition → Follow-On Functions → Create Purchase Order → Via Assignment List
Create purchase orders automatically (ME59N):
SAP Menu → Logistics → Materials Management → Purchasing → Purchase Order
→ Create → Automatically via Purchase Requisitions
or
SAP Menu → Logistics → Materials Management → Purchasing → Purchase
Requisition → Follow-On Functions → Create Purchase Order → Automatically via
Purchase Requisitions
Assign and process purchase requisitions (ME57):
SAP Menu → Logistics → Materials Management → Purchasing → Purchase
Requisition → Follow-On Functions → Assign and Process
Unit 5: Special Procurement Processes
Automatic settlement with regard to invoicing plans (MRIS):
SAP Menu → Logistics → Materials Management → Logistics Invoice Verification
→ Automatic Settlement → Invoicing Plan Settlement
Customizing settings for invoicing plans:
SAP Customizing Implementation Guide → Materials Management → Purchasing
→ Purchase Order → Invoicing Plan
Check stocks of materials provided to subcontractor (ME20):
SAP Menu → Logistics → Materials Management → Purchasing → Purchase Order
→ Reporting → SC Stocks per Vendor
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SCM520 Appendix 1: List of Menu Paths Used
Activate MPN usage (OMT0):
(SAP Customizing Implementation Guide → Logistics - General → Material Master
→ Basic Settings → Make Global Settings
Create manufacturer part profile (OMPN):
SAP Customizing → Implementation Guide → Materials Management → Purchasing
→ Material Master → Define Manufacturer Part Profile
Unit 6: Document Release Procedure
Release external purchasing documents and purchase requisitions:
SAP Menu → Logistics → Materials Management → Purchasing → Outline
Agreement → Contract/Scheduling Agreement/RFQ/Quotation → Release
(ME35K/ME35L/ME45)
SAP Menu → Logistics → Materials Management → Purchasing → Purchase Order
→ Release → Individual Release (ME29N)
SAP Menu → Logistics → Materials Management → Purchasing → Purchase Order
→ Release → Collective Release (ME28)
SAP Menu → Logistics → Materials Management → Purchasing → Purchase
Requisition → Release → Individual Release (ME54N)
SAP Menu → Logistics → Materials Management → Purchasing → Purchase
Requisition → Release → Collective Release (ME55)
Create characteristics in the application (CT04):
SAP Menu → Cross-Application Components → Classification System → Master
Data → Characteristics
Create characteristics in Customizing (CT04):
SAP Customizing Implementation Guide → Materials Management → Purchasing
→ Purchase Requisition → Release Procedure → Procedure with Classification
→ Edit Characteristics
Create classes in the application (CL02):
SAP Menu → Cross-Application Components → Classification System → Master
Data → Classes
Create classes in Customizing (CL02):
SAP Customizing Implementation Guide → Materials Management → Purchasing
→ Purchase Requisition → Release Procedure → Procedure with Classification →
Edit Classes
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Appendix 1: List of Menu Paths Used SCM520
Set up release strategy with classification (OMGQ and OMGS):
SAP Customizing Implementation Guide → Materials Management → Purchasing
→ Purchase Requisition (or relevant External Purchasing Document) → Release
Procedure → Procedure with Classification → Set Up Procedure With Classification
Authorization maintenance:
SAP Menu → Tools → Administration → User Maintenance → Role Administration
→ Roles (PFCG)
or
SAP Menu → Tools → Administration → User Maintenance → Authorizations
and Profiles (Manual Maintenance) → Edit Authorizations/Profiles Manually
(SU03/SU02)
Unit 7: Vendor Evaluation
List displays for vendor evaluation:
SAP Menu → Logistics → Materials Management → Purchasing → Master Data →
Vendor Evaluation → List Displays → Ranking Lists (ME65)
SAP Menu → Logistics → Materials Management → Purchasing → Master Data
→ Vendor Evaluation → List Displays → Evaluations per Material/Material Group
(ME6B)
SAP Menu → Logistics → Materials Management → Purchasing → Master Data →
Vendor Evaluation → Compare Evaluations (ME64)
Execute vendor evaluation (ME61):
SAP Menu → Logistics → Materials Management → Purchasing → Master Data →
Vendor Evaluation → Maintain
Automatic new evaluation of vendors (ME63):
SAP Menu → Logistics → Materials Management → Purchasing → Master Data →
Vendor Evaluation → Automatic New Evaluation
Set up vendor evaluation as background job (ME6G):
SAP Menu → Logistics → Materials Management → Purchasing → Master Data →
Vendor Evaluation → Follow-On Functions → Evaluation in Background
Reprocess evaluation records without weighting key (ME6E):
SAP Menu → Logistics → Materials Management → Purchasing → Master Data →
Vendor Evaluation → Follow-On Functions → Vendors Without Weighting Key
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SCM520 Appendix 1: List of Menu Paths Used
Make Customizing settings for vendor evaluation:
SAP Customizing Implementation Guide → Materials Management → Purchasing →
Vendor Evaluation → Define Weighting Keys (OM6C)
SAP Customizing Implementation Guide → Materials Management → Purchasing →
Vendor Evaluation → Define Criteria (OMGI)
SAP Customizing Implementation Guide → Materials Management → Purchasing
→ Vendor Evaluation → Define Scope of List (OMGU)
SAP Customizing Implementation Guide → Materials Management → Purchasing →
Vendor Evaluation → Maintain Purchasing Organization Data (OMGL)
Define Purchasing Values Key (OME1):
SAP Customizing → Implementation Guide → Materials Management → Purchasing
→ Material Master → Define Purchasing Value Keys
Unit 8: Selected Customizing Topics
Create account groups (OMSG):
SAP Customizing Implementation Guide → Logistics - General → Business Partner
→ Vendors → Control → Define Account Groups and Field Selection (Vendor)
Define field status via account group, transaction and purchasing organization
(OMSG/OMFK/OMSX):
SAP Customizing Implementation Guide → Logistics - General → Business Partner
→ Vendor → Control → Define Account Groups and Field Selection (Vendor)/Define
Screen Layout Specific to Purchasing Organization/Define Transaction-Dependent
Screen Layout
Define field status via company code (OB24):
SAP Customizing Implementation Guide → Financial Accounting → Accounts
Receivable and Accounts Payable → Vendor Accounts → Master Data →
Preparations for Creating Vendor Master Data → Define Screen Layout per Company
Code (Vendors)
Define number ranges for vendor master records (OMSJ):
SAP Customizing Implementation Guide → Logistics - General → Business Partner
→ Vendors → Control → Define Number Ranges for Vendor Master Records
Define partner roles:
SAP Customizing → Implementation Guide → Materials Management → Purchasing
→ Partner Determination → Partner Roles → Define Partner Roles (OMZ1)
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Appendix 1: List of Menu Paths Used SCM520
SAP Customizing → Implementation Guide → Materials Management → Purchasing
→ Partner Determination → Partner Roles → Define Permissible Partner Roles per
Account Group (OMZ3)
Define partner schema for vendor master records
SAP Customizing → Implementation Guide → Materials Management → Purchasing
→ Partner Determination → Partner Settings in Vendor Master Record → Define
Partner Schemas. (OMZ4)
SAP Customizing → Implementation Guide → Materials Management → Purchasing
→ Partner Determination → Partner Settings in Vendor Master Record → Assign
Partner Schemas to Account groups. (OMZ5)
Define partner schema for purchasing documents:
SAP Customizing Implementation Guide → Materials Management → Purchasing
→ Partner Determination → Partner Settings in Purchasing Documents → Define
Partner Schemas (OMZ4)
SAP Customizing → Implementation Guide → Materials Management → Purchasing
→ Partner Determination → Partner Settings in Purchasing Documents → Assign
Partner Schemas to Document Types. (OMZ7)
Set document types (OMEC/OMEF etc.):
SAP Customizing Implementation Guide → Materials Management → Purchasing →
Purchasing Document (e.g. Purchase Order, Contract) → Define Document Types
Define combination of item categories and account assignment categories
(OMG0):
SAP Customizing Implementation Guide → Materials Management → Purchasing →
Account Assignment → Define Combination of Item Categories/Account Assignment
Categories
Define account assignment categories (OME9):
SAP Customizing Implementation Guide → Materials Management → Purchasing →
Account Assignment → Maintain Account Assignment Categories
Define/Change Field Selection Key (OMF2/OMF4 etc.):
SAP Customizing Implementation Guide → Materials Management → Purchasing
→ Purchasing Document (Purchase Requisition, Purchase Order, etc.) → Define
Screen Layout at Document Level
Create user parameter EVO (OMFI):
SAP Customizing Implementation Guide → Materials Management → Purchasing →
Environment Data → Define Default Values for Buyers
490 © 2006 SAP AG. All rights reserved. 2006/Q2
SCM520 Appendix 1: List of Menu Paths Used
Create user parameter EFB (OMET):
SAP Customizing Implementation Guide → Materials Management → Purchasing →
Authorization Management → Define Function Authorizations for Buyers
General setting of info update indicator for transaction ME21N (OMF0):
SAP Customizing Implementation Guide → Materials Management → Purchasing →
Conditions → Define Condition Control at Plant Level
User-dependent setting of info update indicator for PO and quotation
transactions (OMFI):
SAP Customizing Implementation Guide → Materials Management → Purchasing →
Environment Data → Define Default Values for Buyers
Specify settings for version management for requisitions and purchasing
documents:
SAP Customizing Implementation Guide → Materials Management → Purchasing →
Version Management → Set Up Version Managment for Purchase Requsitions/External
Purchasing Documents
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Appendix 1: List of Menu Paths Used SCM520
492 © 2006 SAP AG. All rights reserved. 2006/Q2
Index
A document overview, 213
Account assignment category, Document type, 407
414 E
account group, 22
employee self services, 453
Account Group, 382
enterprise portal, 457
Acknowledgement requirement,
224 F
advanced planning and Field Selection in the Vendor
optimization, 469 Master Record, 385
approval procedure, 242 Field selection key, 418
Assignment list, 211 firm and trade-off zones, 85
authorization to release, 258 Forecast delivery schedule, 90
Automatic Generation of
Purchase Orders, 214
I
Automatic Source Individual release, 246
Determination, 172 info record, 37
Info record for material group,
B 45
Bid Invitations, 465 Info Update Indicator, 441
Blanket Purchase Order, 295 inventory collaboration hub,
block, 182 469
C Invoicing Plan, 278
Item category, 412
calculation schema, 40
item category L, 304
Catalog content management,
Item category M, 64
452
Item category W, 64
centrally agreed contract, 65
Collective release, 246 L
conditions, 38 lot size, 158
Contract, 60
M
D Main criteria, 339
detailed scheduling, 471 manufacturer, 314
Different Data in Vendor Master Manufacturer part number, 314
Record, 20 manufacturer part profile, 316
document category, 407 Material Master Record, 2
2006/Q2 © 2006 SAP AG. All rights reserved. 493
Index SCM520
material type, 5 release procedure, 242
Maximum Quantity, 159 Release strategy, 249
requirement splitting, 157
N
number range, 388 S
Scheduling Agreement, 81
O
scheduling agreement (SA), 60
On-time Delivery Performance, Scheduling agreement delivery
354 schedule, 84
Outline Agreement, 58 scheduling agreement release,
P 90
Partial Invoicing Plan, 283 scheduling agreement type, 87
partner role, 22, 67, 389 screen layout, 417
Periodic Invoicing Plan, 280 Self-service procurement, 452
Price Level, 356 source determination, 123
process purchase requisition, Source List, 125
202 source list requirement, 127
production planning, 471 Subcontracting, 300
purchasing data in material Subcriteria, 342
master record, 5 Supplier order collaboration,
purchasing data in vendor 452
master record, 19 supplier self services, 452
purchasing information record, Supplier Self Services, 450
37 Supply Network Planning, 471
Q U
Quantity contracts, 63 User Parameter EFB, 439
Quantity Reliability, 351 User Parameter EVO, 436
Quota Arrangement, 148 user parameters, 434
Quota Arrangement Usage, 150 V
Quota base quantity, 154 Value contract, 63
Quota-allocated quantity, 154 Vendor Evaluation, 336
R vendor master record, 382
Regular Vendor, 181 Vendor Master Record, 17
Release code, 250 versions, 429
release creation profile, 92 W
release documentation, 92 weighting key, 341
Release group, 249
Release indicator, 249
494 © 2006 SAP AG. All rights reserved. 2006/Q2
Feedback
SAP AG has made every effort in the preparation of this course to ensure the accuracy
and completeness of the materials. If you have any corrections or suggestions for
improvement, please record them in the appropriate place in the course evaluation.
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