Subcontracting process Create bill of materials and maintain the components Create subcontracting info record Create purchase

order with the item category L. Issue the raw materials to the vendor by transfer posting in the movement type 541 , alternative is transaction me2o Do the Goods receipt 101 When you will do the GR, raw materials will get updated in the movement type 543 Note: to maintain any scrap or byproducts we need to maintain a material as scrap and should mention it as negative quantity in bill of materials. Do the invoice the in the miro documents. List of account entries during the gr of subcontracting process During GR against Subcontracting PO (In MIGO), following A/c Entry should get posted; BSX BSV FRL WRX Assembly Stock A/c Change in Stock A/c Dr Cr 5000.00 5000.00 Dr 1000.00

Subcontracting Charges A/c GR/IR Clearing A/c Cr

1000.00 Dr 4000.00

GBB-VBO BSX

Component Consumption A/c Cr

Component Stock A/c

4000.00

Frame work order: Document type FO GOto additional tab and enter the validity date Account assignment category : U Item category : B Mention short text and material group , go to limit tab and mention the and mention overall limit and expecting limit

There is no GR for frame work order type Invoice can be posted to the frame work order Automatic PO generations for purchase requisition TheAutomatic Purchase Order indicator must have been set in the plant-specific purchasing data of the material master record. . TheAutomatic Purchase Order indicator must have been set in the purchasing data of the vendor master record. . It must be possible to determine valid conditions for the source assigned (for example, from an outline agreement item, an info record, or the lastdocument).

Service Procurement: Goto AC03, here you can create a service master record Goto ML41, here we can display the service conditions which are maintained earlier GOTO ML45, here we can maintain the service condtions Goto ME21N Enter the short text, material group , Item category D, and account assignment category K, mark on service based invoice verification in the service tab. Open the service tab and mention the service number, quantity and cost center Ml81n, creating service entry sheet, and click on the green flag to accept the services and save it. Do the Invoice in the transaction MIRO MRP Procurement: MRP Prerequisites: Requirements planning for the corresponding plant must be activated in Customizing for Materials Management under Consumption-Based Planning Planning Activate Material Requirements Planning. . The plant parameters for the corresponding plant must be activated in Customizing for Materials Management under Consumption-Based Planning Plant Parameters Carry Out Overall Maintenance of PlantParameters. . In the material master record, you have to maintain the MRP data of the materials that are subject to automatic planning.

Material master data to be maintained for the MRP Process

Basic data view: short text, base unit of measure, weight volume, net weight of the material Purchasing view: material group, purchasing group, purchasing value key: Key defining the reminder days and tolerance limits valid, as well as the shipping instructions and order acknowledgment requirement of the material for Purchasing. order unit, automatic po generation tick park, gr processin g time General plant storage view: storage bins, temperatute conditions, storage conditions , shelf life of the material. Mrp1: mrp group : The MRP group contains all the materials from the point of view of MRP for assigning special
control parameters for the total planning run Mrp type, , reorder point, mrp controller, lot size date , minimum lot size , fixed lot size

Mrp2: gr processing time, planned delivery time, safety stock Accounting view Planning run for the materials: MD01: This planning run is used to execute the planning run for all the materials in a single plant or mrp area MD02, this planning run is used to execute the planning for the material single item single level. MD03. This planning run is used to execute the planning for the material single item with mulitilevel ie BOM. Stock requirement list: MRP List : MRP list always displays the stock requirement situation at the time of last planning run, this list is called as static list. MD06 Stock requirement list : It displays the most upto date stock and requirements, this list is also called as dynamic list MD04. VENDOR Consignment: Create the vendor consignment inforecord for the material and vendor combination Create the purchase order with the item category k Do the goods receipt from the movement type 101, here there will no accounting documents get created.

Whenever we need the material , then do the transfer posting from consignment stock to our own stock by using the movement type 411. Now settle the payment with vendor by using the transaction MRKO. Contract management: Type of contracts: Quantity contract(MK): based on quantity, here we need to specify the target quantity and date, total value is an optional . When entering the contract we will mention the short description, material group, target quantity, unit of measure, price. Value contract(WK): based on value of the material, Here we need to specify the target value and validity and the total quantity is an optional. When entering the contract, we will enter the short text, material group and donot enter the target quantity or price. Distributed contract: this contract is create in one sap system and will make them to available in all other non sap or sap systems by using ALE Item categories in contract M material unkown : Same type of materials of the same price, eg : paper- A3, A4, A6, A7), price of the material is same and material group also same but different type of material. We will recommend this type of material in the quantity contract. W material group: material group is same but different Release strategies of PR and PO. In the purchase requisition there are two type of release procedure are available Without classification and with classification Without classification = here we have standard characterstics ie account assignment category, material group, plant and purchase requisition value, apart from these characterstics we cannot able to create our own characterstics, so this type of classification is called as without classification. in this type of classification we can release the purchase requisition by item level.

With classification: here we can create our own characterstic value for the purchase requisition, so this type of classification is called with classification procedure, here we can release the purchase requisition either item by item or overall purchase requisition.

Steps in defining the release procedures: CEBAN is the structure table which contains all the fields of the purchase requisition, we can select any one of the fields in this table and can select as the character. 1. Define characterstics: here you create a new characterstic, say for example you need to create a character for plant, field name of the plant is WERKS, give a character name and go to additional data tab and give the filed name as WERKS and table name as CEBAN, system will copies all the data from the abap dictionary. 2. Define class: Class is used to group all the set of characters created. ahere you will create a class and assign all the set of characters created for the release procedure, note: assign the class type as 032 for this class, and goto character tab and enter all the characters. 3. Define Release groups: Here create a release group and assign the class name created in the above step , say eg release group : EA 4. Release codes: here we need to mention the persons and their designation with the above release group name.which will defined as release codes in SAP. Eg : a1: supervisor , a2: purchaser, a3: purchasing manager, a4:department head etc. 5. Release Indicator: mention the indicator for the release status, for example whenever the supervisor releases the PR it should show still the PR is blocked 1 = block, 2 = release So set supervisor is block ie a1 = 1 6. Define a release strategy : here we define a release strategy with the release group and mention the release codes.

Automatic Account Determination ie MM FI Integration: What is Automatic postings: G/L accounts are posted automatically for inventory management and invoice verification transactions which are relevant to Financial Accounting and Cost Accounting How does the system determine the G/L accounts? Chart of accounts for the company code: If the user enters a company code or a plant when entering a transaction, the ERP system determines the chart of accounts which is valid for the company code Valuation grouping code for the valuation area: If the automatic account determination within a chart of accounts is to run differently for certain company codes or plants (valuation areas), assign different valuation grouping codes to these valuation areas Transaction key: Posting transactions are predefined for those inventory management and invoice verification transactions relevant to accounting. Posting records, which are generalized in the value string, are assigned to each relevant movement type in inventory management and each transaction in invoice verification. These contain keys for the relevant posting transaction (for example, inventory posting and consumption posting) instead of actual G/L account numbers

Account grouping(general modifiers): Since the posting transaction "Offsetting entry for inventory posting" is used for different transactions (for example, goods issue, scrapping, physical inventory), which are assigned to different accounts (for example, consumption account, scrapping, expense/income from inventory differences), it is necessary to divide the posting transaction according to a further key: account grouping code. An account grouping is assigned to each movement type in inventory management which uses the posting transaction "Offsetting entry for inventory posting"

Valuation class for the material or (for split valuation) the valuation type: The valuation class allows you to define automatic account determination that is dependent on the material. for example: you post a goods receipt of a raw material to a different stock account than if the goods receipt were for trading goods, even though the user enters the same transaction for both materials.

Step1 : Active valuation grouping code Step2: Group together the valuation areas(ie plants) Step3: Material type Create Account category reference, it is used to group together the valuation classes. Create valuation class and also mention the account category reference to make under one group Link the material type and account category reference to connect valuation classes to the material type, after this connection whenever we create a material master record, the above valuation classes will be getting displayed. Step 3: Configure automatic postings: goto to OBYC, click on BSX type the chart of accounts INT, here you need to mention the valuation modifier or valuation grouping code and also the valuation class and the GL account After configuring the above , if we do the goods receipt then system will picks the GL account specified in the above, because BSX is the inventory posting Keys. Now to configure the invoice posting key, click on WRX Then specify the gl account for WRX.

Goto GBB, ie offsetting entries: for example when you do the goods issue, or incase of price difference system will picks the transaction key GBB, inside this you will find general modifiers or account modifiers. Goto GBB Here you wil find valuation modifiers, general modifiers( or account modifiers) valuation class , debit gl account and credit gl account. Some of the general modifiers used in mm AUF: goods receipt for production orders with account assignment BSA: Initial entries of stock balance. INV : Inventory differences VBO: Consumptions of stock provided to vendor VBR: Internal goods issues Goto OMJJ and select the offsetting entries GBB with respect to movement types and specify the above general modifiers Eg: for movement 201, select offsetting entry GBB and specify the genral modifiers VBR.

Pricing Procedure Condition Type :The condition type is used for different functions. In pricing, for example, the condition type lets you differentiate between different kinds of discount; in output determination, between different output types such as order confirmation or delivery note. Eg: of condition types used in mm PB00-Gross Price , PBXX Manual gross price, RA00 Discount on Net, RA01 Discount on Gross value, FRA1 Freight Value, PB00 PBXX RA00 RA01 FRA1 SKTO Gross Price Manual Gross Price Discount on Net Price Discount on Gross Price Frieght charges Cash Discount

Eg condition type PB00 Condition class: it will tells whether it is price, expenses, taxes, discount etc. Calculation type: it will tells whether it has to be calculated on quantity, percentage, fixed amount or any formula etc. Condition categories: A classification of conditions according to pre-defined categories (for example, all conditions that relate to freight costs). PLUS/MINUS : plus is for gross price it will add the value, minus is for discount price it will reduce the price. Header conditions Manual entries is marked only for pbxx Item conditions: it is marked Pricing procedure Access Sequence PB00

PBXX

RA01

FRA01

Concept of Pricing Procedure First create condition tables Condition tables are used to store the condition records, for example for calculation of price of PB00 ie gross price we will create different tables Eg: based on 1. material, plant 2. Material, plant and vendor 3, material plant and purchasing organization , 4 plant and purchasing organization, 6 contract management, plant info record, material info record. So each of the above combination is called table, We will create the condition table