Introduction to Quotation and RFQ in SAP MM

Quotations

Quotations are requests for vendors to provide us information about their best prices, terms and conditions, schedule of deliveries and other information in order to select the best source for our procurement needs.

Below you can see the process flow for quotations in purchasing in SAP MM module.

Quotation process is started with creation of a request for quotation, and afterwards maintenance of the quotations to input all the information received from possible vendors. Then we want to compare the offers and select the best suitable one(s) rejecting the others.In SAP, there are several transaction used in the process.

Automatic Account Determination in SAP MM

What is Automatic Account Determination? 

Different transactions in inventory management and invoice verification are relevant to accounting. These transactions must be recorded in an accounting document containing the postings to the FT G/L accounts. The G/L accounts to which the postings are made in such a document should be determined automatically by the program as far as possible.

Example: 
When a. raw material is issued for a production order, postings are made to stock accounts (under credits) and to consumption accounts (under debits).

in SAP MM process,  automatic account determination is a. procedure applied to accounting-relevant transactions. The system uses it to identify the G/L accounts to which postings are to be made without any user intervention. Therefore, these accounts must be entered in a. special table in Customizing for the transactions in inventory management and invoice verification.

How to Create Service PO in SAP MM Process

Service purchase orders are entered for services that are procured internally or externally. These purchase orders are different from standard ones as they don’t require a goods receipt since they have no stock. Other than that, there are a few small differences in PO creation. First is the document type for these orders. It should be FO – Framework Order.

To procure a service directly for a cost center, we will follow the below procedure.

Step 1)

Go to transaction ME21N.

1. Choose document type FO – Framework Order.
2. Choose vendor.
3. Choose validity start for PO.
4. Choose Account Assignment Category – K and Item Category – D.
5. Enter the description for the service.
6. Enter the quantity and unit of measure.
7. Enter the price for the service (e.g. 900 EUR per 1 AU – activity unit).

How to Select or Reject Quotation in SAP MM

Step 1)

1. Select the quotation that’s favourable (you want to process it further as it’s having the best conditions).
2. Choose the Edit Quotation button on the toolbar.

Step 2) Now you are in the ME47 transaction. Here you can choose the item and go to the item details screen.

1. Select the item.
2. Click on the item details icon.

How to Perform Price Comparison Among Different Quotation in SAP MM

After your quotations are entered, you can compare them to select the best available offer at this moment. We can compare the quotations in transaction code ME49.

We can select which quotations will be compared by using the collective number we addressed before to be an important field that is maintained on RFQ (or directly on the quotation).

If we forget to enter the collective number, we will have to supply all the quotation numbers in the selection field “Quotation”.

Step 1) In transaction ME49, Enter

1. Purchasing organization (e.g. 0001).
2. Collective RFQ (we have used 190123).
3. Execute the transaction.

Create Quotations in SAP MM Procure to Pay Process

Using transaction code ME47, we can create a quotation based on a request for quotation.

Step 1)

1. Transaction code for quotation maintenance – ME47.
2. RFQ: request for quotation that we are using as a reference document.
3. Press ENTER.

Step 2)

1. RFQ quantity
2. Delivery date
3. Net price per unit of measure
4. Storage Location

Create Purchase Order from Purchase Requisition in SAP MM

Upon release purchase requisitions can be converted into purchase orders. This can be accomplished in transaction code ME21N .Process for converting a PR into PO is straight forward, and the steps for performing it are as follows:

Step 1)

1. Execute transaction code ME21N.
2. Choose the appropriate purchase order type: in our case NB – standard PO.
3. Organizational levels: enter them according to needs.
4. Purchase requisition: enter the purchase requisition number released in the previous lesson.

Hit ENTER.

You may have to hit ENTER quite a few times to go through several warning messages.

How to Create Multiple Material Master Data in SAP MM

In order to create multiple materials at once, you should have access to a function like

1. eCatt tool
2. LSMW(Legacy System Migration Workbench)
3. BDC (Batch Data Communication) recordings
4. BAPI (Business Application Programing Interface)

You can also use mass maintenance transaction MM17 to create views in some cases.

But you must keep in mind that not all of the organizational levels should contain the same data (MM17 requires that all data for the materials and organizational levels you select should be the same).

Mass creation is never considered to be end users responsibility.But as a module specialist you may need to work on MM17 . In case of LSMW, BDC or BAPI, it is considered to be developers or consultants work. So you do not have to understand in detail, you just have to know the concept, and that there is this kind of possibility for mass data maintenance.

You can use MM17 for mass changing of material master data (if something can’t be accomplished by this transaction it can be done using LSMW, BDC or BAPI).

Step 1)

1. Enter transaction MM17
2. Select the data type you need to change, for example, we need to change a field in general data.
3. Execute.

Answers of SAP MM Certification Questions: Set 6

1. What does the system do when you perform the function Reducing Invoices?

1. Reduce an invoice
2. Post invoice for the actual quantities and values
3. Post a credit memo for the amount reduced
4. Post a debit memo for the amount reduced
5. Facilitate generation of a letter of complaint to the vendor.

2. A vendor is issued a purchase order for 200 pieces at 10 UNI/pc and 10% tax. There was a goods receipt of 140 Pieces. The vendor sends an invoice for 200 pieces at 12 UNI/pc. The Purchase manager decides on a partial reduction with quantity variance. What will be accounting entries for the invoice and credit memo?

1. Stock account in the invoice document is 300+
2. Stock account does not get affected.
3. Input tax in credit memo is 60-
4. Vendor account in the credit memo is 660+
5. Vendor account in the credit memo is 440+

SAP MM Certification Questions and Answers: Set 6

In this post you can find some of the scenario base SAP MM certification questions which are actually helpful to your SAP MM certification exam. First, try to attempt listed below SAP MM questions and check your answers given at last for respective SAP MM questions. Some of the answers are not reliable for given SAP MM questions set, however you can find real time actual SAP MM questions with my premium set of SAP MM certification questions and answers, because there are lot of chance to get exact SAP MM questions from it and which have accurate answers.

1. What does the system do when you perform the function Reducing Invoices?

1. Reduce an invoice
2. Post invoice for the actual quantities and values
3. Post a credit memo for the amount reduced
4. Post a debit memo for the amount reduced
5. Facilitate generation of a letter of complaint to the vendor.

2. A vendor is issued a purchase order for 200 pieces at 10 UNI/pc and 10% tax. There was a goods receipt of 140 Pieces. The vendor sends an invoice for 200 pieces at 12 UNI/pc. The Purchase manager decides on a partial reduction with quantity variance. What will be accounting entries for the invoice and credit memo?

1. Stock account in the invoice document is 300+
2. Stock account does not get affected.
3. Input tax in credit memo is 60-
4. Vendor account in the credit memo is 660+
5. Vendor account in the credit memo is 440+

3. What can be the possible entries the system can make during invoice verification if a valuated good receipt is defined for a purchase order with account assignment and there is a price variance?

Answers of SAP MM Certification Questions: Set 5

1. In which kind of posting method in IV is the cash discount amount not credited to the stock or cost account?

1. Gross Posting
2. Net posting

2. What controls the posting of invoice as gross or net?

1. Item category
2. Document type

3. How can postings be done in invoice verification for a purchase order in foreign currency?

1. Fixed exchange rate at GR and IV.
2. Current exchange rate at GR and IV
3. Current exchange rate cannot be changed at IV.
4. Exchange rate differences can occur
5. Exchange rate difference postings are Customization based.

SAP MM Certification Questions and Answers: Set 5

In this post you can find some of the scenario base SAP MM certification questions which are actually helpful to your SAP MM certification exam. First, try to attempt listed below SAP MM questions and check your answers given at last for respective SAP MM questions. Some of the answers are not reliable for given SAP MM questions set, however you can find real time actual SAP MM questions with my Premium set of SAP MM certification questions and answers, because there are lot of chance to get exact SAP MM questions from it and which have accurate answers.

1. In which kind of posting method in IV is the cash discount amount not credited to the stock or cost account?

1. Gross Posting
2. Net posting

2. What controls the posting of invoice as gross or net?

1. Item category
2. Document type

3. How can postings be done in invoice verification for a purchase order in foreign currency?

1. Fixed exchange rate at GR and IV.
2. Current exchange rate at GR and IV
3. Current exchange rate cannot be changed at IV.
4. Exchange rate differences can occur
5. Exchange rate difference postings are Customization based.

4. How is the quantity that has already been invoiced valuated at goods receipt if the invoice is posted before goods receipt and the subsequent GR quantity is greater than the invoice quantity?

1. At purchase order price
2. At invoice price

5. During the check of invoices with which of the following variances does the system perform Date variance?

Answers of SAP MM Certification Questions: Set 4

1. What are the ways in which invoice postings are possible?

1. Manual posting
2. Automatically through electronic transfer
3. Evaluated receipt settlement
4. Invoicing plan
5. Consignment settlement

2. From where can the terms of payment be an input for invoice verification?

1. User entry
2. Purchase order
3. Purchase order history
4. Vendor master
5. Material master

3. Which of the following does the system copy from the purchase order during invoice verification entry?

1. Purchase order number
2. Tax amount
3. Currency
4. Vendor
5. Bank information

SAP MM Certification Questions and Answers: Set 4

Here, I am posting sample of SAP MM questions ans answers set with only True-False. First try to answers yourself and check the correct answers at bottom. Note: In real time exam, you will not get question on true-false, these SAP MM questions and answers will helps you to clear your concept on respective topic. Some of the answers are not reliable for given SAP MM questions set, however you can find real time actual SAP MM questions with my Premium Set of SAP MM Certification Questions and Answers, because there are lot of chance to get exact SAP MM questions from it and which have accurate

1. What are the ways in which invoice postings are possible in SAP MM Process?

1. Manual posting
2. Automatically through electronic transfer
3. Evaluated receipt settlement
4. Invoicing plan
5. Consignment settlement

2. From where in SAP MM Process, can the terms of payment be an input for invoice verification?

1. User entry
2. Purchase order
3. Purchase order history
4. Vendor master
5. Material master

3. Which of the following does the system copy from the purchase order during invoice verification entry?

SAP MM Certification Questions and Answers: Set 3

In this post you can find some of the scenario base SAP MM certification questions which are actually helpful to your SAP MM certification exam. First, try to attempt listed below SAP MM questions and check your answers given at last for respective SAP MM questions. Some of the answers are not reliable for given SAP MM questions set, however you can find real time actual SAP MM questions with my premium set of SAP MM certification questions and answers, because there are lot of chance to get exact SAP MM questions from it and which have accurate answers.

SAP MM Questions:

1. Which of the following are examples of Organizational elements in SAP?
   1. Company Code
   2. Material
   3. Vendor
   4. Purchase Organization
   5. Plant
2. A material master has been created for material 1234 in Plant 1000. You want to extend the material master to Plant 1100 for Purchasing, Storage and Accounting. Which transaction would you use?

SAP MM Certification Questions and Answers: Set 2

Here I am posting sample of SAP MM questions ans answers set with only True-False. First try to answers yourself and check the correct answers at bottom. Note: In real time exam, you will not get questions on true-false, these SAP MM questions and answers will helps you to clear your concept on respective topic. Some of the answers are not reliable for given SAP MM questions set, however you can find real time actual SAP MM questions with my premium set of SAP MM certification questions and answers, because there are lot of chance to get exact SAP MM questions from it and which have accurate

1. For valuation, a plant is assigned to chart of accounts?
   1. True
   2. False
2. In SAP MM process, for a Framework requisition (type FO) the validity dates are entered on header level?

SAP MM Certification Questions and Answers: Set 1

Here, I am posting sample of SAP MM questions ans answers set with only True-False. First try to answers yourself and check the correct answers at bottom. Note: In real time exam, you will not get question on true-false, these SAP MM questions and answers will helps you to clear your concept on respective topic. Some of the answers are not reliable for given SAP MM questions set, however you can find real time actual SAP MM questions with my Premium Set of SAP MM Certification Questions and Answers, because there are lot of chance to get exact SAP MM questions from it and which have accurate

1. Invoices can be released on item and header level in SAP MM?
   1. True
   2. False
2. In SAP MM process, on a Purchase Order with more than one line item, the different items can have prices (gross price condition) that are on different currencies?