www.sap-topjobs.

com

SAP MM/ WM PRESENTATION

VISIT US AT
www.sap-topjobs.com

MM Configuration
Purchasing

www.sap-topjobs.com

Objective
To understand
Purchase Order
Contracts
Scheduling agreements
Condition
Partner Function
2

www.sap-topjobs.com

PURCHASE ORDER

Purchase Order

www.sap-topjobs.com

PO is the legal document asking

vendor to supply material or services
with agreed conditions.
PO can be controlled with header level
release procedure.
Item category and account assignment
are important in PO like PR.
4

www.sap-topjobs.com

Processing Purchase Orders

Purchase
Requisition

Create

RFQ

Purchase Order

Reference
PO
Outline
Agreement

Vendor/
One-Time
Vendor
Purchasing
Info Rec

Price
Conditions

www.sap-topjobs.com

Contents in Purchase Order

PO
Header

PO
Overview

Account
Assignment

Pricing
Conditions

Texts
PURCHASE
ORDER

Delivery
Schedules

Additional
Data

Services

Changes

Order
History

Account assignment in PO

www.sap-topjobs.com

Every item in PO is assigned to an

account.
One item can be assigned with more
than one accounts also.
E.g. Procurement of certain project
related items has to be accounted
with two cost center.

www.sap-topjobs.com

Multiple Account Assignment

Pur Req 1
Chair
2
Cost
Centre 2200

Pur Req 4
Desk
1
Purchase Order
Desc

Pur Req 2
Chair
6
Cost
Centre 2100

Pur Req 3
Chair
4
Cost
Centre 3200

Qty

1. Swivel Chair 12
2. Desk
01

Cost
Centre 7211

Item Category in Purchase

Order

www.sap-topjobs.com

Purchase Order

Item Category
Normal Item
Consignment
Third Party

Account Assignment
= Mandatory when material Consumable
= Optional when material Stocked
= Not Allowed when Consignment

www.sap-topjobs.com

CONTRACTS

10

Contracts

www.sap-topjobs.com

Contracts are of two types

Quantity contract
Value contract
It can be created with reference to
requisition
RFQ
another contract
Or
directly
11

Contracts

cont..

www.sap-topjobs.com

Contracts does not contain Delivery

date
Release order created with reference
to contract will have the delivery date.
Contract has the validity period

12

www.sap-topjobs.com

Processing Contracts
Purchase
Requisition

Vendor/
One-Time
Vendor

Create

Contract
RFQ

Purchasing
Info Rec

Reference
Contract

Price
Conditions
Release
Order

Stocks

March 2000
1

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

www.sap-topjobs.com

Item Category in Contract

Contract

Item Category
Standard Item
K Consignment
M Material Unknown
W Material Group

Account Assignment
= Mandatory when material Consumable
= Optional when material Stocked
= Not Allowed when Consignment

Contract item category

www.sap-topjobs.com

Use M item category for unknown material

If contracts specifies target value for all material,
use material group W (only in value contract)

15

www.sap-topjobs.com

Account Assignment Category

Create Contract

A
C
K
U
X

Account Assignment Category

Asset
Sales Order
Cost Centre
Unknown
All Auxiliary Account Assignment

Release Order

A
C
K
U
X

Account Assignment Category

Asset
Sales Order
Cost Centre
Unknown
All Auxiliary Account Assignment

www.sap-topjobs.com

Release Orders

Contract

Purchasing
Data
Copied

Open Target
Qty

Release Order
Qty Date

www.sap-topjobs.com

Centrally Agreed Contract

Contract
Purchase
Org.

COMN

Plant

PO

PO

Purch.
Org. 2100

Purch.
Org. 2100

Plant : MIND6

Plant : IND7

PO
Purch.
Org. 2300
Plant : 9100

www.sap-topjobs.com

SCHEDULING AGREEMENT

19

Scheduling agreement

www.sap-topjobs.com

It specifies
Order quantity
Price
specific period to supply
There is a delivery schedule for each
scheduling agreement
Helps to reduce paper work
20

Types of Scheduling agreement

www.sap-topjobs.com

Scheduling agreement can be

With release procedure
Without release procedure

21

Processing Scheduling
Agreements

www.sap-topjobs.com

Purchase
Request

Vendor

Reference
RFQ

Vendor
Scheduling
Agreement
---------------------------------------------

Reference
Scheduling
Agreement

Delivery
Schedule
2/24
3/24
5/26

www.sap-topjobs.com

CONDITION

23

Pricing Condition

www.sap-topjobs.com

Pricing describes the price and cost

Pricing is controlled with condition
technique
Lets discuss about condition
technique before we go to pricing.

24

Condition Technique

www.sap-topjobs.com

It is used across all modules in SAP

output determination
Work flow
Batch determination
Partner determination
Condition technique is used to determine
total cost of purchase in MM

25

Condition Technique

cont..

www.sap-topjobs.com

Following are the three important

component
Condition Table / condition type
Access sequence
Condition record

26

Condition Table

www.sap-topjobs.com

Condition table specifies the fields

combination.
System searches through predefined
tables in a sequence.
It is defined in the configuration.

27

Condition Type

www.sap-topjobs.com

Condition type is the four letter key

controls
Calculation type
Type of changes allowed
Scale basis
Condition type contains access sequence

28

Access Sequence

www.sap-topjobs.com

There can be more than one table used to

define different field combination
It is required to search more than one table
to fetch a record.
Defining the sequence in which these
tables are to be accessed is known as
access sequence.

29

Condition Record

www.sap-topjobs.com

Condition records is the master data.

Maintaining values for the condition
table is known as condition record.

30

www.sap-topjobs.com

PARTNER FUNCTION

31

Partner Function

www.sap-topjobs.com

Defines the responsibilities of people

involved in the business.
Example in MM are:

a.
b.
c.
d.

Ordering address
Supplier of goods
Invoicing party
Different payee

32

Partner Function Contd..

www.sap-topjobs.com

Many business partners can be defined

as partner in SAP.
E.g. Vendors, Carriers
Roles of each partner can be defined.
E.g. Certain vendors are only for
ordering and not for invoicing.

33

Summary

www.sap-topjobs.com

You must have understood

Purchase Order
Contracts
Scheduling agreements
Condition
Partner Function

34