The document discusses various SAP MM business scenarios including procure to pay cycle, vendor consignment, pipeline procurement, subcontracting, and stock transport order. It provides details on the key transactions and accounting entries for each scenario. The procure to pay cycle involves purchase requisition, request for quotation, purchase order processing, goods receipt, and invoice receipt. Vendor consignment uses purchase order, goods movement, and material document. Pipeline procurement uses goods issue and material document. Subcontracting requires BOM, purchase requisition, purchase order, and goods movement. Stock transport order can be intra-company or inter-company.

1. SAP MM Business
Scenarios

2. Business scenarios
 SD  OTC Order to cash
 MM  PTP Procure to Pay
 PP PTP Plan to Produce
 B2B
 B2C

3. Procure to pay - cycle
 PR- ME51N –ME54N
 RFQ – 41
 Maintain quotation  ME47
 Pricing comparison statement – ME49
 PR  PO –processing of purchase order  ME21N --ME28 / ME29N
 MIGO  Goods Receipt
 MIRO  Invoice Receipt
 FB50 – Vendor payment

4. Procure to Pay Cycle
 Determination of requirements - PR from Stores and other departments - ME51N
 Source determination – RFQ to vendors or Supplier or Manufacturers - ME41N
 Price Comparison - Quotations selections wrt Price /qty/quality / delivery time - ME47 / ME49
 Purchase Order processing - Create PO wrt to Selected Vendor – ME21N
 Order management / po follow ups - Delivery schedules
 Goods Receipt (GR) from Vendor or supplier – MIGO
Accounting entry -
Stock A/c debt + 10 (qty) – BSX (Business transaction event key)
(offsetting entry) GR/IR Clearing A/c Credit – 10 (qty/val)- WRX (Business transaction event key)
 Invoice Receipt (IR) to Vendor - MIRO
Accounting entry-
GR/IR Clearing A/c Debit + 10*100=1000 qty (qty/val)- WRX (Business transaction event key)
Vendor A/c Credit (value) -10*100=1000 value – KBS -(Business transaction event key)

5. 3-WAY PO GR IR
STOCK Procurement
Manufacturing -BOM
Direct procurement
Qty Based Procurement
2-WAY PO  IR
Consumables (Non-Stock)
Trading Business
Framework order
Blanket Purchase order
Indirect procurement
Value based procurement

6.  Domestic procurement
 Intra- state procurement - 50% cgst + 50% sgst
 Inter-state procurement - 50% cgst + 50% sgst
 Import procurement – customs duty – po – cir—gr—vir
 Capex procurement – ASSET -- po-gr-ir
 External service procurement - po –ses-ir ( K , D )

7. Vendor consignment - K – PO  GRN -101+K  TP -411 +K  MRKO
Pipeline procurement PIR  GRN 201 +P  MRKO
Subcontracting - inter state , intra state - gst - J1IGSUBCON / J1IGRECON
Bom – pir -  pr  po  gi 541  101 migo  miro
STO -intra company , Inter company
UB –Intra company - Plant to plant -
With delivery - obd 641 –vl10b / vl1og / --ITEM NLN - TWO STEP
With delivery - OBD 647 – ONE STEP
NB - STO –
With delivery & billing – ITEM – NLCC - 643 - TWO STEP
With delivery & billing ITEM – NLCC – 645 – ONE STEP
SALES ORDER PR  PO  OBD  BILLING  MIGO  J_INV_STO  MIRO

8. Vendor consignment -K
 Purchase info record -ME11 /ME12/ME13
 Message condition record -- MRM1
 PO - Item category - K Consignment
 GR – 101 +K (No subsequent accounting entries )
 TP-MAKING TO OWN STOCK -411 + K (MB1B)
 Consignment Settlement - MRKO

9. PIPELINE Procurement
 Maintain Material – with Material type –PIPE
 Maintain Purchase info record – ME11 - M/V/P/PORG
 MIGO – 201 + P
 MRKO – Settlement

10. MIGO – 201 + P

11. MIGO – 201 + P

12. MRKO – PIPELINE SETTLEEMNT

13. Subcontracting - L
 BOM prerequisite & fg and components should be maintained
 a+b = c
 PIR – MANDATORY
 PR
 PO - BOM FG- 10  CHILD ITEMS
 ME2O / MB1B TP --GOODS ISSUE - 541  WITH CHALLAN / WITHOUT - J1IF01 / J1IGSUBCON
 GOODS RECEPIT
 MIRO
 J1IGRECON / J1IFQ
 J_1IGRXSUB - GR reference to subcontracting challans
 J_1IEXCDTL - Excise invoice line item details

14. STO – Stock transport order
 Intra STO – UB
 Inter STO – NB ( inter company Sales scenarios )
 The division is one of the organizational units in Sales & Distribution and is
also required for business area account assignment for logistics transactions in
Financial Accounting. The business area for the material is determined via
the plant and the division defined in the material master record.
 Price exposure determination relies on pricing. Since there is no pricing on
the receiving side for cross-company stock transfers, it is not possible to
determine exposures directly from the receiving company code. The receiving
company code uses purchase order pricing for billing documents, so the
receiving side is a mirror of the issuing side. The exposure from the receiving
company code is also obtained by mirroring the purchase order exposure.

18. Dispatching Location Receiving Plant /
Warehouse
Stock in-transit-MB5T
641
101
STO –INTRA (Within the company code)
647 –ONE STEP

19. Dispatching Location Receiving Plant /
Warehouse
Stock in-transit –MB5T
643
101
STO –INTER ( Across the company code)
645 –ONE STEP

20. Thanks By
Lokesh Modem