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35 Cards in this Set
- Front
- Back
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OMJI
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Allow Negative Stocks
- set for which plant to allow negative stock - set for which storage loc of the plant to allow negative stock - set for which special stock to be counted as part of negative stock Caution: In order to allow negative stock, the material master must have set "Negative Stock Allowed" |
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After creation of Goods Receipt / Invoice, the following 2 documents will be auto-generate by system:
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Material document
- contains info: Material, quantity, Where (movement type, stock type, plant), Purchase Order, Partner, Account Assignment (cost centre) - It's considered a "Proof" of a transaction involving goods movement. Accounting document -- Link to FI Accounting module - contains info eg. goods amount - Accounting document aka valuated receipt is a MUST for inventory item - Accounting document is optional (can set to turn off by buyer for not to generate) for consumable item upon creation of Goods receipt; However, it will still be generate while Invoice is created later, then it will called Non-valuated receipt. |
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Vendor Master data
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- Which org. level that is important for this: Client, Company code, Purchasing organization, and plant(sometimes)
- to be maintained in different categories, for use by accounting and purchasing Categories - General data (entire client level, info eg. address, bank details, control data..etc) - Accounting data (company code level, info eg. number of reconciliation a/c, payment methods for automatic payment tranx, tax). Also known as Company code data. - Purchasing data (1 set for each purchasing org.) info eg. PO currency, Incoterms, partner role, etc. Allow also to maintain different data for specific plants or for vendor subranges. 2 types of Setup - Centralized: vendor record is allowed to maintained for Accounting + Purchasing categories - Decentralized (maintain at department level): record is allowed to maintained for Purchasing only. |
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Master Data in Purchasing
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* Purchasing info record
* Source list * Quota arrangement * Time-dependent conditions * Vendor evaluation * Material master * Vendor master |
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Invoicing plan
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1. Vendor master ticked "AutoEvalGRSetmt Del" indicator
2. Framework order creation (ME21N) - Validity start & end - Acct Ass. Cat "K" - Short text (Office rent), Qty (1 month), Delivery date (today), Net price (Rent price), Plant - Delivery tab: Deactivate "GR", "GR non-valuated" - Invoice tab: Specify Invoicing plan type; Tax code; Deactivate "GR-Based IV"; ERS indicator active 3. Invoice plan settlement (MRIS) - execute to auto settle first payment 4. Customization MM -> Purch -> PO -> Invoicing plan -> Invoicing plan type -> Maintain periodic invoicing plan type |
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Vendor master (XK01) - basic setup field?
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- Name
- Country - Language - Reconciliation A/C - Currency - Terms of payment - *AutoEvalGRSetmt Del. (if you want to do auto invoice payment, eg. Invoicing Plan) |
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Material type controls:-
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Material type controls:-
1. Number range 2. screen sequence 3. User departments/ views 4. Type pf procurement 5. Internal or external number assignment |
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What are “Special Stocks”?
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Special Stocks are stocks that are accounted for but are not owned by the client, or are not stored at a regular facility. Consignment, sales
order, and project stock are examples. |
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What are the transactions that will result in a change of stock?
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A Goods Receipt is a posting acknowledging the arrival of materials from a vendor or production, which results in an increase in warehouse stock, a
Goods Issue which results in a reduction in stock, or a Stock Transfer moving materials from one location to another. |
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What is a Reservation?
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A Reservation is a document used to make sure that the warehouse keeps a certain amount of a
material or materials ready for transfer at a later date. It contains information on what, quantity, when, where from and to. Reservations help effective procurement by utilizing the MRP system to avoid out of/lack of stock situations. |
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How is GR/IR account related to Inventory?
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If you are involved with inventory, then you need the GR/IR account (Inventory Account) when the IR is posted. If you are not involved about
inventory, then the system does not need the GR/IR account when the IR is posted; the system needs a G/L instead of the GR/IR account. |
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What are Departmental Views?
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All functional areas of the system use the same material master data. The material master data is defined in individual screens (departmental views) that can be added as needed. Thus a material can be created with only basic data and other departments can add other information later as it becomes available.
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Is Material Data valid for all organizational levels?
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Control of master data depends largely on how each company sets up its Organizational levels -
centralized or decentralized. Some material data is valid for all organizational levels while other data is valid only at certain levels. (I.e.: client, plant, sales org., etc.). |
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What is the difference between a Blanket Purchase Order and the
Framework Order? |
In general, the Blanket POs are used for consumable materials such as office paper with a short text, with item category B. There need not be a corresponding master record, for the simplicity of the procurement. The FO, Framework
Order, document type is used. Here, the PO validity period as well as the limits are to be mentioned. The GR, or Service Entry for the PO are not necessary in the case of Blanket POs. One need not mention the account assignment category during creation of the PO. It can be U, or unknown and be changed at the time of IR. |
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What is Release Procedure?
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Release Procedure is approving certain documents like PRs or POs by criteria defined in the configuration. It is sensible to define separate release procedures for different groups of materials for which different departments are responsible, and to define separate procedures for investment goods and consumption goods.
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If you have a multi-lineitem PO, can you release the PO item by
item? |
No, a PO is released at the header level meaning a total release or “With Classification”.
PRs, on the other hand, have two release procedures possible. “With Classification” as described above, and “Without Classification” where it is only possible to release the PR item by item. |
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What is a Material Type?
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A Material Type describes the characteristics of a material that are important in regards to Accounting and Inventory Management. A material is assigned a type when you create the material master record. “Raw Materials”, “Finished
Products”, and “Semi-Finished Products” are examples. In the standard MM module, the Material Type of ROH denotes an externally procured material, and FERT indicates that the relevant material is produced in-house. |
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What is a Source List?
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The Source List identifies preferred sources of supply for certain materials. If it’s been maintained, it will ID both the source of supply and
the time period. The Source List facilitates gaining a fixed source of supply, blocked source of supply, and/or helps us to select the proffered source during the source determination process. |
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What are the various “steps” in the MM Cycle from material creation through invoice?
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The following creates a rough picture of the MM Cycle. Create material, create vendor, assign material to vendor, procure raw material through
PR, locate vendor for certain material, processing GR, goods issue, and invoice verification. |
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What are the various features of Consignment Stocks?
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Consignment Stocks remain the legal property of the Vendor until the organization withdraws the material from the consignment stores. The invoice can be due at set periods of time, for example monthly, and it is also a configuration possibility that the organization will take ownership of the stock after a certain period of time. Consignment Stock is allocated to the available stock because the Consignment Stock is managed under the same material number as your company’s stock.
The most important characteristic of Consignment Stock is that it isn’t valuated. When the material is withdrawn, it is valuated at the price of the respective vendor. Before procuring the stock, consideration should be given if one consignment is coming from multiple vendors. If so, we can manage all of them independently at the price of the individual vendors. In the Info Record, we will maintain three different prices for the same material for three different vendors. |
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What is a Quotation?
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Once a vendor has received an RFQ, the vendor will send back a quote that will be legally binding for a certain period of time. Specifically, a Quotation is an offer by a vendor to a purchasing
organization regarding the supply of material(s) or performance of service(s) subject to specified conditions. The Quotation then need to be maintained in the “Maintain Quotation: XXXX” screens. |
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What is an Invoice Verification?
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The Invoice Verification component completes the material procurement process and allows credit memos to be processed. Invoice Verification includes entering invoices and credit memos that have been received, checking accuracy of invoices with respect to price and arithmetic, and checking block invoices (these are the ones which differ too much from the original PO).
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What are the different types of Invoice Verification?
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Invoices based on Purchase Orders. With purchase-order-based Invoice Verification, all of the items of a purchase order can be settled together, regardless of whether or not an item has been received in several partial deliveries. All of the deliveries are totaled and posted as one item.
Invoices based on Goods Receipts. With goods receipt-based Invoice Verification, each individual goods receipt is invoiced separately. Invoices without an order reference. When there is no reference to a PO, it is possible to post the transaction directly to a Material Account, a G/L Account, or an Asset Account. |
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What are some of the initial configuration steps for Purchase
Requisitions? |
Define Document Types, Processing Time, Release Procedure (with and without classification), Setup Authorization Check for G/L Accounts, Define Number Range.
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How can you post a Goods Receipt if the PO number is not known?
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If you selected PO Number Not Known in Transaction MIGO, you can specify search criteria for the POs on the initial screen. The system then displays a list of purchase orders. Select and copy
the required PO items. |
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How do you generate an automatic PO after creating a PR using a particular material?
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In MMR and VMR check Auto PO (MM02/XK02).
Maintain the Source List and select the indicator for the source list record as MRP relevant (ME01). If more than one source list record is generated, make one of them fixed. Run MRP and the PRs generated will be pre-assigned with the source of supply (MD01). Enter ME59 for automatically creating POs from PRs. |
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What is the difference between a PR with a Master Record and without a Master Record for the material being ordered?
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If the master record exists, then all of the information about the Source List, Information Record, and Vendor Evaluation already exist in the
system. If we don’t have a Master record for the material we are ordering, the material is generally being ordered for direct usage or consumption. You can specify which consumption account is to be charged which is also known as Account Assignment. For example, we assign the purchase costs associated with a requisition to our sales order or cost center. If the first situation exists, many times purchasing enters into a longer-term purchasing agreement with a Vendor, which is called an “Outline Agreement”. If the Outline Agreement is done, then Purchasing cannot issue a purchase order against a PR. It can only set up such an agreement (either a “Contract” or a “Scheduling Agreement”). |
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Can you change a Purchase
Requisition after it has been created? |
Yes. Use Transaction ME52N. Check to see if the PR has already had a PO issued against it. If so, you must inform the Purchasing Group. Check if the PR has been approved. If so, you may only
make changes to a limited extent and may be subject of approval. Check if the PR was created by MRP. In this case, you don’t have much control over the modification process. All changes to items are logged and stored. Information stored includes when the information was changed, who changed it, what the changes were, etc. Select the desired item in the item overview and choose Go To -> Statistics -> Changes. |
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How do we create Consignment Stocks?
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Everything is the same as a normal PR or PO, except: Enter the item category “K” for the consignment item. This ensures that the Goods
Receipt is posted to the consignment stores and an invoice receipt cannot be generated for the item. Also, do not enter a net price. |
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What is Vendor Evaluation and how do you maintain it?
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Vendor Evaluation helps you select the Source of Supply by a score assigned to a particular vendor. The scores are on a scale of 1 to 100 and are based on differing criteria. Use Transaction ME61 and enter the Purchasing Organization and
Vendor Number. |
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What are the components
of the Master Data that details a company’s procurement; used by, Vendor Evaluation for example? |
The key components of Master Data are: Info Record (ME11), Source List (ME01), Quota Arrangement (MEQ1), Vendor (MK01), Vendor
Evaluation (ME61), and Condition Type (MEKA). |
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How do we get a proper list of vendors to send an RFQ?
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Either use the Information Record to see who has sold a particular material to the organization in the past, or go through the Source List.
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How will items be returned to the vendor?
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When you are posting a Goods Receipt for a PO, you can also enter items that you want to return to the vendor. To do this, you no longer
have to reference the purchase order with which the goods were originally delivered. From the item overview, choose 161 (Return for PO) as the default value for the Movement Type. Enter the data for the return item(s) and post the document. |
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How do you perform a Goods Issue?
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How do you perform an Invoice Verification?
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If the Invoice refers to an existing document (PO, etc.), then the system pulls up all of the relevant information like Vendor, Material, Quantity, Terms of Delivery, and Payment Terms etc. When the Invoice is entered, the system will find the relevant account. Automatic posting for Sales Tax, Cash Discount, Corrections etc. When the Invoice is posted, certain data such as Average Price of Material and Price History are updated. Use
Transaction MIRO. |
