How to Change Purchase Order in SAP MM

Step 1)

For changing an existing purchase order you can use transaction code ME22N  (or ME22 – the old version).

Immediately after executing transaction code, system will take you to the most recent purchase order you have created, changed or viewed. If you need to change some other purchase order, you can use the option which appears in the menu

How to Post Goods Receipt in SAP MM

Step 1) You can post the goods receipt for a purchase order using transaction code MIGO.

Let’s say we want to do a goods receipt for our purchase order 4500018386.

1. Choose A01 – Goods Receipt.
2. Choose R01 – Purchase Order.
3. Enter your purchase order number.
4. Press ENTER.

Step 2)

How to Release Invoice in SAP MM Process

An invoice request is blocked for payment until its manually released. You can release the invoice by using t-code MRBR.

Step 1)

1. Execute t-code MRBR.
2. On the initial screen enter the company code and invoice number.
3. Check the release method (release manually if you want to process it in the second screen). This can be done choosing Automatically (please note the difference with automatic release in MIRO transaction being blocked and automatic release in t-code MRBR as those are two different things).
4. Our document has a manual payment block, so we will select that option. Execute.

Invoice Verification in SAP MM Process

Invoice verification is done via MIRO transaction.

Step 1)

1. Enter transaction code MIRO.
2. Choose invoice as a transaction type.
3. Enter the invoice date.
4. Enter the purchase order number.
5. Hit ENTER.

Step 2)

On Payment tab choose R – 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).

Release Purchase Order(PO) Strategy and Cancelling PO Release in SAP MM

Releasing a purchasing document means approving it. For this, our MM consultant can create release procedures to be used. There is a vast number of options that can be used for controlling the release of the documents.

Important information to know is that a purchasing document cannot be changed after it is released. That means that only the final version should be released. Unreleased documents (RFQ – request for quotation, PO – purchase order, scheduling agreement, contract) cannot be processed further (convert RFQ to quotation, PO to goods receipt, invoice verification).

Process flow of PO Release in SAP MM:

Create Purchase Order With Reference to Existing Document

Purchase order with reference

Purchase orders can be created with reference to a purchase requisition, RFQ, quotation, another purchase order, contract, sales order etc. To reference a PO to a previous document you can use the appropriate function.

You can create a PO referencing a previous document in 2 ways

1. Using ME58
2. Using ME21N

Referencing through ME58

In our case if we want to create a PO for a purchase requisition, we can use the transaction code ME58.

I will demonstrate the process starting from ME58 as it calls the ME21N and you can see that actually we create a PO in ME21N anyway.

Step 1)

1. Enter t-code ME58.
2. Choose Vendor and purchasing organization and
3. Select document types.
4. Execute.

How to Create Purchase Order in SAP MM Process

Purchase orders are used for a number of processes in procurement. They can be used for internal procurement (from one plant to another), external procurement of goods (direct consumption or stock) and services. It can also be used for subcontracting, third-party and consignment processes.

Purchase order processing is shown in the following diagram.

Purchase orders can be created with reference to a purchase requisition, RFQ, quotation, another purchase order, contract, sales order.

How to create a Purchase Order

Purchase orders are created by using standard transaction ME21N (or ME21 – the old instance of the transaction).

Step 1)

1. Enter transaction code ME21N.
2. Enter vendor.
3. Enter material number that needs to be procured.
4. Enter the quantity and unit of measure (optional – system uses UoM from purchase info record).
5. Press ENTER to confirm the data entered.

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 Create Source List in SAP MM

You can create a sourcelist in ME05 transaction. A source list is a list of possible sources for a material. If a source list requirement exists for the material, you must create a source list to proceed with the ordering.

1. Execute t-code ME05.
2. Enter material, or material list/range.
3. Enter plant.
4. Untick the test run check box to perform the transaction instead of using the test mode.
5. Execute the transaction.

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 Make Changes in Purchase Info Record

We said that the transaction used to create info record is code ME11. When we need to change the info record we can use codeME12 t-code, and for display only we should use code ME13, just as SAP standards are.

Step 1)

1. Transaction code to change the info record.
2. Vendor, material, purchase organization, plant, info record number data: we use it to identify what exactly we need to change in our session. If we fill in all the fields, we will be able to change all the existing views and data in those views. For example, if we don’t specify Purchase Organization we will not be able to edit the Purchase organization Data 1 View.
3. Info category (purchasing type). We are changing the data for this info category (only for views that are info category dependent).

Basic Introduction to Purchase and Purchase Requisition in SAP MM

Purchasing is a component of SAP MM module and its process can be roughly depicted in below diagram.

MRP (material resource planning) creates procurement proposal and later gets converted into Purchase Requisition. Next step is assigning source to Purchase Requisition, and release of Purchase Requisition. The PR gets converted to Purchase Order and upon goods receipt an invoice receipt can be done to complete the purchasing process. Additionally payment is processed (in FI module).

Procurement doesn’t have to start by the MRP, it can be initiated by consumption based planning or by direct creation of PR or PO.

MRP is a system function to determine the material requirements on both the material and BoM level. A BoM (Bill of Materials) is a list of components and subcomponents a single material is consisting of.

How To Create A Purchase Info Record in SAP MM Process

Purchase Info Record in SAP MM

Purchase info records are information about terms for purchasing a specific material from a vendor. They are maintained at vendor/material combination and can contain data for pricing and conditions, overdelivering and underdelivering limits, planned delivery date, availability period.

Procurement types in info record in SAP MM

1. Standard

   A standard info record contains information for standard purchase orders. The info records can be created for materials and services with and without master records.

2. Subcontracting

   A subcontractor info record contains ordering information for subcontract orders. For example, if you subcontract the assembly of a component, the subcontractor info record would include the vendor’s (subcontractor’s) price for assembling the component.
   

How to Change Material Master Data in SAP MM

It may be needed to change certain option in our material master (due to the organizational changes, or changes in processes). We cannot use MM01 as that is the transaction code used only for creating views that are not maintained for certain material. In this case, we need to use MM02 and MM03 transaction codes.

In SAP transactions ending with 01 are for creating, ending with 02 for editing/changing, and the ones ending in 03 are used for viewing data without possibility to change it.

Process to change Material Master in SAP MM

Step 1)

1. Enter transaction code MMO2 in the command prompt
2. Enter the material number whose material master data we want to change.

Create Material by Copying Existing Material Master in SAP MM Process

In this tutorial we will go through the process of copying an existing material master data into new material

Step 1) In transaction MM01

1. Enter material number that you want to create.
2. Enter our existing material from which we want to copy the data.
3. Click on Select Views button.

Step 2)

1. Select the views you need to copy to new material
2. Click Org levels

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