M M Purchasing

Slide 1: SAP MM/ WM PRESENTATION VISIT US AT www.sap-topjobs.com 1

Slide 2: MM – Configuration Purchasing Objective To understand Purchase Order Contracts Scheduling agreements Condition Partner Function 2

Slide 3: PURCHASE ORDER 3

Slide 4: Purchase Order 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

Slide 5: Processing Purchase Orders Purchase Vendor/ Create Requisition One-Time Vendor Purchase Order RFQ Purchasing Info Rec Reference PO Price Outline Conditions Agreement

Slide 6: Contents in Purchase Order Account PO PO Pricing Assignment Header Overview Conditions Texts Order History PURCHASE ORDER Delivery Schedules Additional Services Changes Data

Slide 7: Account assignment in PO 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. 7

Slide 8: Multiple Account Assignment Pur Req 1 Pur Req 4 Chair 2 Desk 1 Cost Cost Purchase Order Centre 2200 Centre 7211 Desc Qty Pur Req 2 Chair 6 1. Swivel Chair 12 Cost 2. Desk 01 Centre 2100 Pur Req 3 Chair 4 Cost Centre 3200

Slide 9: Item Category in Purchase Order Item Category Normal Item Consignment Purchase Order Third Party Account Assignment = Mandatory when material Consumable = Optional when material Stocked = Not Allowed when Consignment

Slide 10: CONTRACTS 10

Slide 11: Contracts Contracts are of two types Quantity contract Value contract It can be created with reference to requisition RFQ another contract Or directly 11

Slide 12: Contracts cont.. Contracts does not contain Delivery date Release order created with reference to contract will have the delivery date. Contract has the validity period 12

Slide 13: Processing Contracts Vendor/ Purchase One-Time Create Requisition Vendor Contract Purchasing RFQ Info Rec Reference Price Contract Conditions Release Order March 2000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Stocks 21 22 23 24 25 26 27 28 29 30 31

Slide 14: Item Category in Contract Item Category Standard Item K Consignment Contract M Material Unknown W Material Group Account Assignment = Mandatory when material Consumable = Optional when material Stocked = Not Allowed when Consignment

Slide 15: Contract item category Use M item category for unknown material If contracts specifies target value for all material, use material group W (only in value contract) 15

Slide 16: Account Assignment Category Create Contract Account Assignment Category A Asset C Sales Order K Cost Centre U Unknown X All Auxiliary Account Assignment Account Assignment Category Release Order A Asset C Sales Order K Cost Centre U Unknown X All Auxiliary Account Assignment

Slide 17: Release Orders Release Order Purchasing Contract Qty Date Data Copied Open Target “Qty”

Slide 18: Centrally Agreed Contract Contract Purchase COMN Org. Plant PO PO PO Purch. Purch. Purch. Org. 2100 Org. 2100 Org. 2300 Plant : 9100 Plant : MIND6 Plant : IND7

Slide 19: SCHEDULING AGREEMENT 19

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

Slide 21: Types of Scheduling agreement Scheduling agreement can be With release procedure Without release procedure 21

Slide 22: Processing Scheduling Agreements Reference Purchase Reference Scheduling Request RFQ Agreement Vendor Delivery Scheduling Schedule Agreement 2/24 Vendor ----------------------- 3/24 5/26 -----------------------

Slide 23: CONDITION 23

Slide 24: Pricing Condition Pricing describes the price and cost Pricing is controlled with condition technique Let’s discuss about condition technique before we go to pricing. 24

Slide 25: Condition Technique 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

Slide 26: Condition Technique cont.. Following are the three important component Condition Table / condition type Access sequence Condition record 26

Slide 27: Condition Table Condition table specifies the fields combination. System searches through predefined tables in a sequence. It is defined in the configuration. 27

Slide 28: Condition Type Condition type is the four letter key controls Calculation type Type of changes allowed Scale basis Condition type contains access sequence 28

Slide 29: Access Sequence 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

Slide 30: Condition Record Condition records is the master data. Maintaining values for the condition table is known as condition record. 30

Slide 31: PARTNER FUNCTION 31

Slide 32: Partner Function Defines the responsibilities of people involved in the business. Example in MM are: c. Ordering address d. Supplier of goods e. Invoicing party f. Different payee 32

Slide 33: Partner Function Contd.. 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

Slide 34: Summary You must have understood Purchase Order Contracts Scheduling agreements Condition Partner Function 34