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Purchase Order?
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Pipeline.
The stock supplied by the vendor is in the purchasing company’s premises but the
company has no liability for the same. The liability for the company will only arise
one the goods are issued from the consignment stock for use. However, in this
case, even before the use, purchasing company can check in system how much
category ‘L’. Input material is sent to vendor for processing with movement type
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541. When GR is done using movement type 101, movement type 543 takes place
When we maintain price in Info Records, we can make use of scales. It is used
when price of a material is dependent on quantity purchased. For eg. For 500
pieces of material ABC, price is Rs. 10, however, if the order quantity is more than
500, price is Rs. 9. Scales are maintained in various master data like info record,
quota arrangement etc. from where scales can be pulled in a Purchase Order.
A material must be flagged for deletion before deleting it using Archive and Delete
program. A deletion flag can be set at client level, plant level or storage location
level. Whatever level you flag a material for deletion, it is flagged for deletion at all
deletion.
Yes, even after flagging a material for deletion, it can be used till it is actually
deleted. It will just trigger a warning message whenever the material is used. If
you want a material to be blocked for any use with immediate effect, you should
use a material status which is there in Basic View 1 for general level or in MRP 1
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Valuation grouping code is used to group the valuation area, In SAP, we can have
General practice is to use the valuation area at plant level, because valuation may
differ from one plant to another. The valuation grouping code makes it easier to
determination for several valuation areas, we can assign same valuation grouping
code to all those valuation areas. We can maintain the valuation group code in
pipeline, project, sales order stock, Returnable transport packaging, stock transfer,
Agreements?
for a certain period of time. Specific delivery dates are not mentioned in the
that materials can be delivered at plant. These are generally used for materials
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This strategy can be used only on 4 parameters which are Account assignment
unit which has unique specification. Normally, a batch is assigned to the quantity
At client level: The same batch number can be assigned only once within the
entire client.
At material and plant combination level: Same batch number can be assigned to
specification for all plants where material is extended. Batch number can be
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While creating PO, we can tick the item as free item in item overview section of
master?
important information such as valuation class and price control. Valuation class
helps in determining the relevant GL account used for account posting. It is also
Using material types, we can control which all views are required for a material
type, which fields are required or optional, the material number range etc.
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Average Price(V). If the indicator is set to S, all inventory postings are posted at
account.
If price control indicator is set at V, goods received will be done at GR price. The
moving average price will be adjusted in material master using weighted average
formula. If goods movements or invoice receipts are posted using a price that
differs from the moving average price, the differences are posted to the stock
account.
‘Stock transfer’. Stock transfer can be either a single step process or a two-step
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Restricted Stock
Quality Inspection Stock (Not the unrestricted stock but can be considered for
MRP)
Continuous Inventory (stocks are counted continuously during the entire fiscal
year)
the balance sheet key date. If variances are small enough, it is presumed that the
use split valuation in such cases. In this case, material is managed at several
partial stocks which are sub-stocks of main material stock. Any transaction,
relevant for valuation, is carried at this partial stock level. In accounting view, we
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LIFO(Last In First Out): Materials received last are consumed first. You can
assume example of elevator where people who enter last exit first!
Lowest Value Method: Stocks are valued at their original price or the current
Once OBYC settings are properly done, system finds the correct G/L account using
Transaction Key: eg. BSX, GBB etc. Transaction keys are determined
(inventory management).
Valuation class of material or (in case of split valuation) the valuation type: The
different G/L accounts to the posting transaction for every valuation class
Since each movement type is assigned to a ‘value string’ which in turn is identified
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with a transaction key, the goods movement determines the correct transaction
BSX, WRX, and PRD are relevant for a GR with reference to a purchase order for a
material with standard price control. The transaction key UMB is used when the
standard price has changed and the movement is posted to a previous period. GBB
is used to identify the GL account to post to as the offsetting entry to the stock
receipts, goods issues for sales orders with no account assignment, and scrapping
etc.
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incurrence. For example, any department can be a cost center for recording all
to recognize your profit. Profit center is attached to material master at plant level.
Tax can be calculated for each line item of a PO separately based on the tax code.
Earlier TAXINJ, which is a formula based tax procedure, was used. Now,
procedure contains the condition type and necessary specification for each
condition type. Account keys are assigned to condition types and these account
keys determine the G/L to which the tax amount is to be posted(OB40). These
account keys are maintained using t-code OBCN. (All these transactions are under
Settings). Tax codes are assigned to country codes and country are linked with tax
and then calculation is done based on condition types in that tax procedure.
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When you create BOM using CS01, we can maintain main components with + ve
When you make Goods Receipt for Subcontracting Purchase Order with 101
543 By Products / Scrap are updated as stock provided to vendor movement type
545. Now we can receive this scrap/ By product back in company’s inventory using
process?
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If there is a price difference and customization is done for accounting for price
Master?
specific view as MRP is done at plant level. Various procurement types in material
No procurement
MRP1 view should be maintained (e.g.. Reorder point, Safety stock etc.)
MRP Area is an organizational unit for which material requirement planning can
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After defining MRP areas, MRP area is assigned to material in material master.
The system creates MRP lists during the planning run. The MRP list always
displays the future stock/requirements situation at the time of the last planning
run. The MRP list is stored in the system until it is either deleted manually or
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transactions to complete the process. Document types are defined at client level.
43. Can we receive the goods before the scheduled delivery date in
scheduling agreement?
No, we cannot receive the goods before scheduled delivery date. GR can be posted
on or after the scheduled dates. Though, SAP has provided some OSS notes to
documents?
A material ledger retains all transactions that relate to the purchase and use of
materials for producing goods. Material ledger data is valuation and control data
for a material in a plant for a specific posting period. Material ledger contains data
for material movements that are relevant to the valuation of the material.
Return Delivery is used if we want to return goods to a vendor for any reason such
as bad quality, or bad packaging etc. In normal cases, return delivery is done by
movement type 122. For creating return delivery, reason for return is a mandatory
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field.
transactions?
number (EAN) is created as a unique indicator for each of these units of measure.
The most important use of EANs within a company is to identify articles at the
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