Rajesh Sharma provides an overview of the procurement process for consumable items in SAP. Key points covered include:
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2. The need to specify an account assignment category for consumables to determine the cost objects charged and required assignment data.
3. How purchase requisitions are used to initiate the procurement process and later converted to purchase orders.
4. Features of purchase requisitions like multiple account assignments, creating requisitions without material records, and status indicators.
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3. 1. Difference Between the Procurement of Consumable & Stock Item
2. Account Assignment Category
3. Purchase Requisitions
4. Single and Multiple Account Assignment
5. Request a material without material master record
6 Create Purchase Order with respect to Purchase Requisition
7. Purchase Order Acknowledgement
8. Valuated and Non-Valuated Goods Receipt
9 Blanket Purchase Order
10 Enter a Invoice for Blanket Purchase Order
11 Item Category in Purchasing
Topics
4. 1. Difference Between the Procurement of Consumable & Stock Item
What is Consumable Material?
Consumable material describes a material that is not valuated in inventory and is normally
charged to an expense account or an asset. There for, a consumable material is procured
directly for an account assignment object. Examples of consumable materials are office
supplies, computer system, machines,
When a material is procured directly for consumption, no material master record is
necessary.
Examples:
• Consumable material without material master record
• Consumable material with material master record that is not subject to inventory
management on either or a quantity or a value bases.
• Consumable material with material master record that is subject to inventory
management on a quantity, but not a value bases.
5. As a project team you are going to check the Procurement Process for consumable
materials.
The following material types exist by default for Consumable Materials:
• Non Valuated material (Material Type UNBW)
This type of material is subjected to inventory management on a quantity bases but not on a
value bases. This applies to low value ,materials that have stocks which need to be
monitored (For example, operating manual).
• Non-Stock Material (NLAG) material type NLAG)
Inventory management is not possible for these materials either on quantity bases or a value
bases. For frequently required consumables, the use of this material type enables you to
store the information require to create purchase documents (such as text and units of
measure).
You can procure stock material for stock and for direct consumption. For example
purchasing trading goods, for a particular customers sales order.
You can enter an account assignment for each item of a purchasing of a purchasing
document or purchase requisition if it is intended for direct consumption. In certain cases
account assignment is mandatory.
6. Material Type NLAG & UNBW you can search existing Material Master record T-Code MM02
Search By Material Type
7. You must enter Account Assignment for an item under the following conditions
• If you order a material that is not subject to value based inventory management. In this
case, you need to post the value of the material directly to consumption.
• If you order an article that does not have a material master record
• If you order a service.
8. To Procure any consumable material you must specify the following information in the
Purchasing document:
• Account assignment category
• Additional account assignment data
The account assignment category determines the following decisions:
• The account assignment object category that is charged.
• The account assignment data that must be provided.
• The account that are debited when the goods receipt for the invoice is posted.
Examples of account assignment object cost center (account assignment category K)
are as follows:
• When you make an account assignment category to a cost center, you must enter on the
Account Assignment Data Screen, the G/L account number of the consumption account and
cost center for which the material is to be procured
2. Account Assignment Category
9. • You must specify in customizing that the system automatically proposes the number of the
G/L account to be changed.
Examples of account assignment object asset (account assignment category A) are
as follows:
• If you make an account assignment A, you must enter the asset number on the account
assignment data screen.
• The system automatically determines the G/L account to be changed from the asset
number, you can not enter manually.
• If we select Account assignment un-know U the account assignment data screen
disappear.
13. Create PO for Consumable Item with material master
1. We have create Our Own Material T-Code MM01
Industry type MECHANICAL
Material Type NLAG
14. Create PO for Consumable Item Account Assignment Category
1. Create PO T-Code ME21N For Non-Stock material it is mandatory to assign account
assignment category and I Account assignment tab need to define G/L account Cost
Center also
15. Procurement For Consumption
Stock Material
With Material
Master Record
Account
Assignment
Account Assignment
Automatic
Data from Material Master
Record
Stock Account
Procurement for Consumption
Consumable Material
With Material
Master Record
Without Material
Master Record
Enter Account
Assignment Category
Account Assignment
Manual
Entry By User necessary
Consumption Account
Cost center, asset….
With Account
Assignment Category
16. Stock Material and Consumable Material -
Comparison
Stock Material Consumable Material
Necessary to enter the material
number
Entry of material is not
necessary but possible
No account assignment
category
Account Assignment category
mandatory
Goods Receipt Mandatory Goods Receipt Optional
Posting to stock account Posting to consumption
account
Quantity, value, and
consumption update in material
master record
No value update, quantity and
consumption update in material
master record possible.
Adjustment of moving average
price
18. 3. Purchase Requisition
What is Purchase Requisition?
Purchase Requisition is an internal document in procurement process in which
requisitioned inform to purchase department need for a materials, goods or services
triggers the procurement process.
Purchase requisitions are used for internal requirements gathering and are eventually
converted to Purchase Orders by the purchasing department.
Purchasing Requisition can be created as follows:
• Direct
The purchase requisition is created manually by a person from the requesting
department. The person creating the requisition determines which material or services is
required the quantity, and delivery date.
19. • In Direct
The Purchase requisition is initiated automatically from another SAP components.
Indirect requisitions can be created as follows:
• Based on material requirement planning (MRP).
• Through maintenance orders.
• Through production orders.
• Through networks.
Purchase requisition can also come from SAP Supply Chain Management (SAP SCM) or
SAP Supplier Relationship Management (SAP SRM).
21. Purchase Requisition
1. Command Box
2. Document Overview
& Document Type
3. Source Determination
4. Header Note
5. Material
6. Quantity
7. Plant
8. Fix vendor (if tick on
source determination)
9. Tracking no
10. Valuation class
T-Code ME51N-Create,
ME52N-Change,
ME53N-Display
Menu Path: SAP Easy
access Logistics
Material Management
Purchasing
Purchasing
Requisition Create
Change Display
22. Purchase Requisition
T-Code ME51N-Create,
You can extend the field by
clicking on Header, Item
Overview, Item Details,
Document Over view you
can find existing
Purchasing Documents ,
click on hold you can
keep on hold, click on
check you can check if
there is any error, click
on 2 square button you
can search other
document
23. Purchase Requisition
T-Code ME51N-Create,
Purchase Requisition for
Stock Material, Non-
stock material with
material master and
Non-stock material
without material master.
Click on check button no
issue message during
check if you wish to keep
on hold same document
can keep on hold if not
you can click on save.
The message will display
by the system is PR No
…… is created.
24. Assignment Of Multiple Account assignment
If you want to distribute the quantity of non-stock material to different cost center you have
option to distribute the material on quantity base or percentage base.
By clicking on
4. Multiple Account Assignment
25. Create PR with multiple
account assignment
To create cost center T-Code
KS01 Cost center K,
R1,R2
Create new Non-stock material
Name Computer HP
Pentium 4
27. T-Code ME21N PO is created on text because we not have material master for this material
5. Create PR without Material Master Record
28. Incase of received a partial
invoice if you select option
distribute in sequence
system will distribute the
invoice amount as per
sequence If you select
distribute proportnaly the
system will distribute the
invoice amount proportnaly
to each cost center.
List of Purchase
Requisition T-Code :
ME5A
29. Features of Purchase Requisition
In case of Account assignment
category un known the no further
Account assignment category
required.
In case of When we have maintain
consumable material with material
master record the system will take
price automatically from material
master record.
In case of consumable material
which not have master record that
will be enter as text material and
account assignment category is
required and valuation price will be
enter manually.
30. Status and creation indicator
In status Tab of PR the status is up
dated for example, not edited, PO is
created and so on.
When you click on contract person
tab it will show who created the PR
31. Templates for Purchase Requisition
In SAP New version you can use
public templates or user specific
templates
32. Conversion of Purchase Requisition into Purchase Order
6. Create Purchase Order with reference to Purchase Requisition
Purchase
Requisition
Purchase
Order
• Convert Purchase
into purchase
Order
• Order
Acknowledgement
ConfirmationTransaction
ME51N
Non-valuated
goods receipt
Goods
Receipt
Invoice
Receipt
Consumable Material Procurement – Purchase Order
33. As we receive a purchase requisitions created by user department, the purchasing
department as a buyer need to convert these Purchase requisition in to purchase order. The
Purchasing document can be:
• Purchasing Order
• A contract release order
• A Schedule Agreement Schedule line
• Request of Quotation
Various options are available for converting purchase requisition into a purchasing order.
Before converting a purchase requisition into purchase order you can assign source of
supply when creating or changing a purchase requisition item on the Source of Supply Tab
page. Source determination function also can be used for automatic determination the
source of supply.
Purchase Requisitions Conversion
Purchase requisition item can be convert into purchasing order manually or automatically
with source of supply. The system copies the vendor information from the source of supply
for the purchase requisition.
If you not use source of supply function, you can still create the purchase order with
reference of purchase requisition items, need to enter vendor information manually.
34. Purchase
Requisition
10
20
30
With reference to purchase requisition, enter vendor
number manually
Purchase
Order
10
20
30
Purchase
Requisition
10
20
30
Assign Source of
supply
Purchase
Requisition
10
Source of
supply
vendor ABC
20
Assign Source of
supply
Purchase
Order
10
20
30
manually automatic manually automatic
Converting Purchase Requisition
Purchase Requisition Conversion
35. Special features for Purchase Requisition Conversion
Purchase Requisition
Item M-10 Flat screen 1 PC
Account Assignment: U
Valuation Price: 110 EUR
Item 2 USB Hub 10 pc
Account Assignment K
Valuation Price: 10 EUR
Purchase Order
Item M-10 Flat screen 1 PC
Account Assignment: K
Valuation Price: 95 EUR
Item 2 USB Hub 10 pc
Account Assignment K
Valuation Price: 10 EUR
Purchase Order
with reference to
purchase
requisition
Copying Purchase Requisition Data to the Purchase Order
36. Following are the Special cases to be noted during conversion of purchase requisition
• Purchase requisition item with the account assignment category unknown (U)
The system only allows the account assignment category U in the purchase order in connection with the
item categories Service and Limit. In all over situations, you must select a valid account assignment
object and maintain the corresponding account assignment details when creating the purchase order.
• Purchase requisition items with material master record
If an info record exists for the vendor and the material, the system proposes the purchase price from info
record when you create a purchase order reference to a purchase requisition (without source of supply), if
info record not available you need to enter price manually. The valuation price from the purchase
requisition item is not transferred to the purchase order.
• Purchase requisition items without material master record
If the system transfers the purchase requisition item without a material master to the purchase order, the
system proposes the valuation price as the purchase price from the purchase requisition. The buyer can
change this default price.
37. Create a Purchase Order with reference to a Purchase Requisition
T-Code: ME21 N
Initial screen open
Document Over
view My Purchase
Requisitions
/Purchase Requisition
Click on PR for which
you need to create
PO select and click
adopt button, enter
vendor manually if
not maintain source
of supply indicator,
enter ORG data go to
Item Over view, enter
PR no PR tab and
item no then press
enter , system will
copy some details
from PR, then enter
required entry, check
and if no error click
on save, PO No is
created. For PR NO
10048013
38. T-Code: ME53
N can check
status of PR
Item wise PO no
display on
screen.
40. You can enter vendor acknowledgement for
purchase order or schedule agreement
schedule lines. Confirmation are notification
that are sent to the vendors about the
estimated arrival and quantity of ordered
materials, such as order acknowledgement,
loading and or transportation confirmation,
and shipping notifications, or receive, or
receive them via Electronic Data Interchange
(EDI) and have them processed
automatically.
If confirmations, you have advantage that
MRP does not exclusively depend on the
vendor dates and vendor quantities in the Po
or Schedule agreement, schedule lines.
Acknowledgement enables you to plan
material requirements more accurately by
providing reliable information about the
delivery in the time span between PO date
and the expected delivery date. You can also
monitor receipt of the required confirmation.
If you are expecting a confirmation for a PO
item, you use the confirmation control key in
Item details area in the confirmation tab.
Select the Acknowledgement Required
7. Purchase Order Acknowledgement
41. When you create a Purchase
order reference to purchase
requisition its copy the items and
for Purchase requisition
document, not pick price. For
pricing:
1. First system will check the price
in Purchase Info Record. If PIR
available it will copy the price
from PIR.
2. If PIR not available, system will
copy the price from last PO
created for the item.
3. IF last PO is also not available
you need to put price manually.
In the PO
This applicable only in
Consumable Product
Pricing Access Priority for a Purchase Order
42. When you create a Purchase
8. Valuated & Non Valuated Goods Receipt
Purchase
Requisition
Purchase
Order
• Valuated/ non-
valuated GR
• Consumption
Posting
ConfirmationTransaction
ME51N
Non-valuated
goods receipt
Goods
Receipt
Invoice
Receipt
Consumable Material Procurement – Goods Receipt & Invoice Receipt
43. Converting Purchase Requisition
Procurement for Consumption
When you create a Purchase
Stock Material Consumable Material
Valuated
Posting to stock
account
GR
IR
Stock Account
only if Price
Variance
Valuated Non-Valuated No GR
GR
IR
Posting to
Consumption
account
No
FI Posting
Consumption
Account only if
Price Variance
Posting to
consumption
Account
44. An important difference between the procurement of stock material and consumable item is
that in the later you can decide whether the goods receipt is to be valuated or non-valuated
for order items with account assignments.
If you decide on a non-valuated goods receipt, no posting takes place in accounting at the
time of the goods receipt. The value based consumption posting does not takes place until
you post the invoice. The commitment, created by the PO item with account assignment,
can only be reduced by entering an invoice.
Another alternative for purchase order with account assignments is to perform without the
goods receipt. In this case, Financial Accounting (FI) posting correspond to the posting non-
valuated goods receipt.
The GR and GR Non-Value checkboxes can be found in the following transactions.
• In the Purchase Order (enter ME21N/ME22N/ME23N), in item detail area on delivery tab
page.
• In the Purchase Requisition (ME51N,ME52N,ME53N), in item detail area on the valuation
tab page.
If no updates taken place in accounting at the time of the goods receipt, you can change the
account assignment during invoice entry, if the account assignment category allows this.
45. Posting for Valuated or Non-Valuated Goods Receipt
The figure shows the consumption account to be debited,
as purchase order item is assigned to a account
assignment category. If the item were not assigned to
account assignment, it would have been debited to stock
account.
Valuated Goods Receipt
At the time of GR, the system debits the consumption
account that you specified in the PO item with the
procurement price 130 EUR. The system posts an
offsetting entry to the GR/IR clearing account. During
invoice receipt, the system clears the GR/IR account
completely. The system posts an offsetting entry to the
vendor account. If the Invoice price varies from the order
price, the corresponding difference will be posted to the
consumption account.
Non-Valuated GR
At the time of GR, there are no posting to the
consumption account. Therefore, posting to the GR/IR
clearing account is not applicable. During IR, the system
debits the consumption account with the invoice amount
of 130EUR. The system posts the offsetting entry to the
vendor account.
46. 9. Blanket Purchase Order
Blanket Purchase Order Creation
Purchase
Order
Invoice
Receipt
Blanket
Purchase
Order
Account
Assignment
• Document Type:
Frame Order
Item Category :
Limit
• Entry of account
assignment in the
invoice
Blanket Purchase Order Overview
47. Standard Procurement of Consumable Item
In the standard process of consumable materials,
you must create at least one purchase order for
each procurement transactions. Use this PO as
the basis for invoice verification.
You can also enter GR for the purchase orders. In
some cases, preceding documents, such as
purchase requisitions or quotations, exists.
A GR is not mandatory in the case of blanket PO.
Most users prefer to use this type of PO when GR
is not preferable.
January 01
December31
48. Standard Procurement of Consumable Item
Characteristics of a Blanket Purchase Order
• Order type field and value FO (Framework)
Validity period in header of the PO Field selection)
• Item category field and Value B (limit)
- Value Limit for the item.
- No material number allowed
- Account assignment category U allowed
- No GR and service entry allowed
• Proposes data in the invoice if you specify account assignment
in the PO
• Additional or multiple account assignment possible in invoice
verification.
• Checks on the validity period and limit in Invoice verification
49. Create GR T-Code MIGO
Enter Invoice T-Code MIRO click on Post the Invoice you
can check PO history in Purchase Order update in PO
when you post the invoice. It will show how much amount
is consumed how much the balance.
10. Enter GR & Invoice for Blanket Purchase Order
50. 11. Item Category in Purchasing
B
K
L
M
S
T
U
W
D
Standard
Limit
Consignment
Subcontracting
Material Unknown
Third-Party
Text
Stock Transfer
Material Group
Services
Item Category
51. Item Category enables you to map different procurement processes. You use item
categories in all purchasing documents. The document type determines which item
categories are available for selection. You can use different item categories for individual
items of a purchasing document.
You can change the short descriptions of the individual items categories in customizing
for Material management Purchasing Define External Representation of Item
Categories. You will also find the precise item category controls. You can not change
this.
The item category specifies whether a material number, an account assignment, a GR
and /or an Invoice Receipt are possible or required for an item.
53. Item Categories are predefined as follows:
Standard
This category is used for materials that you procure externally. This category has
following characteristics.
• Material number is possible
• Account assignment is possible
• Goods receipt is possible
• Invoice receipt is possible
Limit
This category used for procure materials or services with a value limit. This category
has the following characteristics.
• Material number not possible
• GR is not possible.
• Account assignment is mandatory
• Invoice receipt possible
Consignment
This category used to procure materials from a vendor, which you then manage as
consignment stock. The materials belongs to the vendor until it is withdrawn. The
placement of an ordered consignment material in storage does not belongs immediately
lead to the valuation of material or the creation of liability in relation to the vendor. A
liability only arise when material is withdrawn from the vendor consignment store.
54. Consignment Category has the following characteristics:
• Non-valuated goods receipt is required
• Invoice receipt is not possible
Subcontracting
In this category the finished product is ordered from a vendor. The components that the
vendor needs to manufacture are recorded as material to be provided.
Stock Transport order
In this category, the material is transferred from one plant to an other plant.
Third-party
In this category, the vendor delivers the ordered materials directly to third party. For
example, a customer. You receive the invoice for the material from the vendor.