A solution for Indian GST implementation for simple procurement scenario using TAXINN

 --> GST has two types

--> intra state - CGST / SGST

--> inter state - IGST 

--> we have five slabs - 0%, 5%, 12%, 18%, 25%

--> two type sof TAX - Purchase and Sales

--> Purchase Tax is called Input Tax

--> Sales Tax is called Output Tax

--> when we Purchase a product from vendor it is called Input Tax

--> when a person send goods will give bill+tax pay is calle Output Tax

--> Define Condition types- (OBQ1) 

MWVS - Input Tax

MWAS - Output Tax

Input Condition Type Output Tax

MWVS MWAS

CGSI CGSO

SGTI SGSO

IGSI IGSO

--> Creation of GL account for GST - (FS00)

Create GL account for Input Tax and Output Tax 

Note: Tax Category for Input Tax is -VE and Output Tax is +VE

--> Create Tranction Event Key for Taxes - (OBCN)

Input Transcation Event key Output transction Event Key

VST MWS

CGI CGO

SGI SGO

IGI IGO

--> Assignemt of Transcation Key to GL Account - (OB40)

 Posting Key - Debit - 40 , Credit- 50

--> Create Tax Procedure- (OBQ3)

Fill 16 steps required fields in procedure and save.

-->Assign Tax Procedure to Country- (OBBG)

--> Creation of Tax Codes - (FTXP) 

Input Tax and Output Tax

Regards

SAP-MM4U

Import Procurement Process in SAP MM

•Procuring of goods from US to India or any other places
     India to USA

•Currently India is using GST, so there are no different condition types will trigger

•Whereas in case of different country, the condition types for customs will come into picture

•Remove the tax code or maintain it to 0% and maintain the vendor to unchecked GR based IV

•Once material received to plant then GR and following with IV will happen.

•But if the customs vendor is different then IV needs to be posted before GR and that should be paid

•Orders or u can use even same normal doc type(Preferred to use different)

•Material master—Foreign trade import tab –Fill details what type of products /region and Origin

•Vendor master—remove the GR based IV check for vendor or Invoice tab

•Check calculation schema whether import condition are maintained to calculate charges in PO

•Perform PO with all the details and do the Invoice with planned delivery costs

•Now perform the Goods receipt and Invoice receipt for normal goods

•Payment will release to vendor and prior payment of customs will be processed to vendor.

Subcontracting Process in SAP MM

Subcontracting is one of the procurement processes available in MM. In this process, components are shared to vendor to get the final product.

Steps to perform subcontracting:

1. Create subcontracting Info record (Optional) – T Code – ME11
2. Create subcontracting PO with item category L – T Code – ME21N                                         Steps:  ME21N —>  Enter Item Category L –>, Material (End Product), PO Quantity, Delivery Date, Net Price, Plant  –> Click on Item Details –> Tab Material Data  — >Components, select Explode BOM –> Click on Components button –>  Enter the sub components –> Go back & Save.                                                                                                                                                                                         Note: Components can be exploded through BOM (T Code CS01) or components can be given manually also.
3. Create Transfer Posting with Movement Type 541 to issue the sub components to the vendor T Code -ME2O/ MIGO
4.  Goods Receipt for finished product – T Code -MIGO                                                                                                                                                                                                                                       Note: During goods receipt, final product will be received with movement type 101 and components will be consumed automatically with 543 movement type
5. Invoice Receipt for the services performed – T Code – MIRO

Accounting entries for subcontracting: Example: Components cost is 100 INR, Subcontracting Charges are 40 INR

There will be no account entries at transfer posting 541.

Accounting entries at the time of Goods Receipt 101 (&543) : Finished goods will be received with 101 and the Components will be consumed with Movement type 543. 

Here Dr means Debit (+Ve) and Cr means Credit (-Ve)

(BSX) Stock A/c of Assembly – 140 Dr

(BSV) Change in Subcontracting Stock -140 Cr

(FRL) Subcontracting Charges – 40 Dr

(WRX) GR/IR Clearing A/c – 40 Cr

(BSX) Stock A/c of Components – 100 Cr

(GBB-VBO) Consumption A/c of Components – 100 Dr

 

Accounting entries at the time of Invoice Receipt :

(KBS) Vendor A/C – 40 Cr
(WRX) GR/IR Clearing A/C – 40 Dr

Accounting entries at the time of Payment :

Vendor A/C – 40 Dr
Company Bank A/C – 40 Cr

Regards

SAP-MM4U

T codes for SAP MM Module

 T-code for SAP MM( Material Management) module

Material Master

MM01 - Create Material

MM02 - Change Material

MM03 - Display Material

MB03 - Display Material Document

Vendor Master

XK01 - Create Vendor

XK02 - Change Vendor

XK03 - Display Vendor

Purchasing Info Record

ME11 - Create Purchasing Info Record

ME12 - Change Purchasing Info Record

ME13 - Display Purchasing Info Record

Source List

ME01 - Create Source List

ME03 - Change Source List

ME04 - Display Source List

Purchase Requisition

ME51N - Create Purchase Requisition

ME52N - Change Purchase Requisition

ME53N - Display Purchase Requisition

ME54 - Purchase Requisition

ME55 - Collective of Purchase Reqs.

ME56 - Assign Source to Purch. Requisition

Req. for Quotation

ME41 - Create Req. for Quotation

ME42 - Change Req. for Quotation

ME43 - Display Req. for Quotation

Quotations

ME47 - Create Quotation

ME48 - Change Quotation

ME49 - Price Comparison

Purchase Order

ME21N - Create Purchase Order

ME22N - Change Purchase Order

ME23N - Display Purchase Order

Reservation

MB21 - Create Reservation

MB22 - Change Reservation

MB23 - Display Reservation

MB24 - Reservations by Material

MB25 - Reservations by Account Assignment

Physical Inventory Document

MI01 - Create Physical Inventory Document

MI02 - Change Physical Inventory Document

MI03 - Display Physical Inventory Document

Inventory Count

MI04 - Enter Inventory Count with Document

MI05 - Change Inventory Count

MI06 - Display Inventory Count

MI09 - Enter Inventory Count w/o Document

MI08 - Create List of Differences with Doc.

MI10 - Create List of Differences w/o Doc.

MI20 - Print List of Differences

ME57 - Assign and Process Requisitions

ME58 - Ordering: Assigned Requisitions

ME59 - Automatic Generation of POs

ME2C- Display Purchase Orders by Material Group

ME2N - List Purchase Orders by Number

ME5K - Requisitions by Account Assignment

ME2K - List Purchase Orders by Account Assignment

ME2L - Display Purchase Orders by Vendor

ME2M - Display PO by Material

IH09 - Display Material

MM50 - List Extendable Materials

MB51 - Material Doc. List

MB52 - Display Storage Location

MMBE - Stock Overview

MMI1 - Create Operating Supplies

MMN1 - Create Non-Stock Material

MMS1 - Create Service

ME5A - Purchase Requisitions: List Display

ME5J - Purchase Requisitions for Project

MELB - Purch. Transactions by Tracking No.

ME5F - Reminder: Purch. Requisition

MB1C - Other Goods Receipts

MB90 - Output Processing for Mat. Documents

MBRL - Return Delivery per Mat. Document

MB1C - Other Goods Receipts

MB90 - Output Processing for Mat. Documents

MB1B - Transfer Posting

MI11 - Physical Inventory Document Recount

MI07 - Process List of Differences

MI37 - Batch Input: Post Differences

MIGO - Goods Receipt (GR)

MIGO/MB1A - Goods Issue 

MIRO - Logistic Invoice Verification

Regards

SAP-MM4U

Vendor Consignment Process

Vendor Consignment is a process wherein the supplier provides materials and stocks them in the purchaser’s premises. The material remains in the books of the supplier (vendor) until the same is withdrawn from the stock of the consignment and put to use. The inventory gets transferred to the books of the purchaser only when the same is removed from the consignment stock. The supplier (vendor) would not invoice the purchaser initially when they come into the premises of the purchaser. The purchaser is liable to pay the supplier (Vendor) only when the stock is withdrawn (consumed). 

Prerequisites:

1.  Special Procurement type Consignment has to be given in Material Master (Optional)
2. Create Consignment Info Record –Mandatory
3. Maintain OBYC settings for Transaction Key KON –Consignment Accounts Payable
4. Maintain Output Condition Records for Output type KONS with Transaction Code MRM1
5. Process Steps:
6. 1. Create Purchase Order with Item Category K– Consignment- T Code ME21N
   2. Goods Receipt against Consignment Purchase Order,Mvt Type 101 K – No accounting Entries – T Code MIGO-Goods Receipt
   3. Transfer the Consignment Stock to Own stock- Transfer Posting –411 K –T Code MIGO-Transfer Posting

   4. Accounting Entries:

      Here Debit means +Ve and Credit means -Ve.

      Consignment Payable – KON – Credit

      Stock – BSX – Debit

   5. 4. Invoice Settlement – MRKO

      Accounting Entries:

      Consignment Payable(KON) – Debit

      Vendor Account – Credit

   6. 4. Payment F110 or any other payment transaction

      Accounting Entries:

      Bank Account – Credit

      Vendor Account – Debit

   Regards
7. SAP-MM4U

SAP Third Party Process

 What is Third Party?

The company’s Vendor supplies material to the company’s Customer (Or) Vendor Supplies material to a customer of a customer is called the Third-party.

Our Company sales department receives a PO from our customer for the material.

Then the company sends a PO with a delivery address as a Customer to supply this material

The vendor will supply this material directly to the customer

The vendor will send an invoice to the company

The vendor bill will be settled after the company got the payment from the customer

In SAP the Third Party procurement will be done in two ways.

A) With SD Involvement

B) W/o SD Involvement

A) With SD Involvement:

1. Normally Salespeople will take the PO from the customers & they create a Sales Order (VA01) with 3rd party Item cat 'TAS'
2. In the background automatically Purchase Requisition (PR) will be created with Item category 'S' along with the Delivery address.
3. Purchase Dept creates the PO with Item cat 'S' and a/c assignment cat '1'. here customer adds will be copied from the PR.
4. Then this PO will be sent to the Vendor.
5. Based on the PO line items vendor will supply material directly to the customer and invoice to our Purchase organization.
6. Based on the conditions provided in the PO

• If it is PO-based invoice verification you can create a bill (Bill to the Customer) without waiting for Vendor IV.
• If it is GR based invoice Verification we must very the vendor invoice before creating a bill to the customer

B) W/o SD Involvement:

1. No sales order, No PR is generated in the background
2. You can directly create a PO, based on the requirement of the customer with the item cat 'S' and A/c assignment cat 'X' (auxiliary a/c)
3. The rest of the steps are the same as above

Third-Party Scenario Steps

The customer sends the PO to the Sales dept of the Company.

Create customer (XD01) with the account group as sold-to-party

Salespeople will create a Sales Order (VA01) with item category as ‘TAS’, i.e. Third Party.

Create material with

• Material type as HAWA type - Adding a sales view - In Sales Data 1 view:
• General.Item Cat BANS, Division, Tax code
• In sales Data 2 view:
• Item Cat group: BANS
• In sales General/Plant view:
• Availability Check: 01, Transport Group as 0001, Loading as 0001
• In Purchase view: Check Automatic PO - In-Plant data storage loc 2 view: check negative stock allowed. - Accounting view: Valuation class: 3100 (for – HAWA), Price:

Create Vendor (Tcode XK01) – in purchase data view Check Automatic PO checkbox

Maintain Purchasing Info Record (T code ME11) for these vendors and material

Change the SO (VA02) and go to Schedule lines and check whether PR is created?

PR will be generated in the background with Item category 'S' and A/c assignment category '1' or X aux a/c

T code ME59 and enter relevant data to create an automatic PO with respect to PR

Send PO to Vendor.

The vendor delivers the material to the customer.

• If it is PO based invoice verification you can create a bill (Bill to the Customer) without waiting for Vendor Invoice Verification.
• If It is GR based invoice Verification we must verify the vendor invoice before creating a bill to the customer

We can do GR and IV however stock should not be updated.

[Note: If you are not always allowing third party order processing then you can create a material master record with item category group as ‘NORM’ and procurement should be marked as ‘X’ meaning both types of procurement (in-house manufacturing and external product) ]

Regards

SAP-MM4U

INTER STO in SAP MM

INTER STO IN SAP MM

INTER STO: Inter STO means Stock Transfer Order in two plants with cross company code.

 Create Material(MM01):

Extend material for Receiving plant AP14.

 Create Vendor(XK01):

Assign supplying plant AP11 in purchasing tab.

 Create Customer(XD01):

 Setup Stock Transport Order:

 Define Shipping Data for plant:

For supplying plant Assign sales org., distribution channel & division

For receiving plant Assign Customer number, sales org., distribution channel & division

 Assign Delivery Type and Checking Rule:

 Assign Document type, One Step Procedure & Under delivery Tolerance:

 Assign Shipping Points:

 Define Item Category Determination in Deliveries:

All the configuration for ‘INTER STO’ is done.

For testing go to ‘ME21N’

 Create Purchase Order(ME21N):

 Create Outbound Delivery(VL10D):

 Create Post Goods Issue(VL02N):

Here Inter STO is working properly as per configuration.

Regards

SAP-MM4U

MASTER DATA IN SAP MM

MASTER DATA IN SAP MM

Master data is the core data that is used as a base for any transaction when you are producing, Transferring Stocks, purchasing, selling , doing physical Inventory whatever your activity maybe there should be some Master Data maintained.

It is also called as the backbone of any business process.

Following are the various types of Master Data in SAP MM

1. Material Master

2. Vendor Master

3. Purchase Info Record

4. Source List

5. Quota Arrangement

1. Material Master

It is the database which is mainly used to store the information related to materials. It has to be noted that in SAP MM we always deal with material type.

Transaction Codes Related to Material Master-

MM01-Create Material

MM02-Change Material

MM03-Display individual Material

MM04-Changes Happened to material

MM06-Flag Material for deletion

MM60-Report which is used to display all the materials

MMNR-Define Material master No Ranges

OMS2-Maintain Material types

MMBE-Material Stock Overview

MB51-Material Doc List

MB52-Warehouse Stocks of Material

MASTER DATA IN SAP MM

Create Material Master (MM01)

Tables Related to Material Master Record-

MARA-General Material data

MARC-Plant data for Material

MARD-Storage location data for Material

MBEW-Material valuation

MCHB-Batch Stocks data

MLGN-Material data for each Warehouse Number

MASTER DATA IN SAP MM

2. Vendor Master

Vendor master is a database which is mainly used to store the information related to vendors like name, address, account number or which type of vendor.

Transaction Codes Related to Vendor Master-

XK01- Create Vendor

XK02- Change Vendor

XK03- Display Individual Vendor

XK04- Changes happened to Vendor

XK05- Block vendor

XK06- Flag Vendor for Deletion

XK07- Account group change

Create Vendor (XK01)

MASTER DATA IN SAP MM

Tables Related to Vendor Master-

LFA1- Vendor Master (general section)

LFB1- Vendor Master (Company Code)

LFM1- Vendor Master record Purchasing Organization data

MASTER DATA IN SAP MM

3. Purchase Info Record

It is a source of information which will be used with reference to vendor and material.

In Info Record whatever the price will be maintained same price will reflect in Purchase Order (PO).

E.g. suppose we have five vendors’ v1, v2, v3, v4 & v5 and materials m1, m2 & m3

Then which vendor will give me which material at what price and whatever are the terms and condition all are maintained in the Info Record.

Transaction Codes Related to Purchase Info Record-

ME11- To create Info Record

ME12- Change Info Record

ME13- To display Individual Info Record

ME14- Changes Happened to Info Record

Me15- Flag Info Record for Deletion

ME16 – Deletion proposal for Info Record

ME1L- Display all Info Records with reference to vendors

ME1M- Display all Info Records with reference to materials

Tables Related to Purchase Info Record-

EINA- General Data

EINE- Purchasing Organization Data

MASTER DATA IN SAP MM

Create Info Record (ME11)

Types of Info Records-

 Standard

It is used for creating a Standard purchase order, for material or service i.e. with or without material master record.

 Subcontracting

It is used for creating of a Subcontract purchase order. Subcontracting is a process where company provides raw material to the vendor for rework or assembly. After the required work vendor returns the finished product.

 Pipeline

It contains information regarding procurement via pipeline for example, water or gas procure through the pipeline.

 Consignment

It is the process in which owner of the stock belongs to the vendor till the stock is transferred to the third party.

MASTER DATA IN SAP MM

4. Source list

It is the list of sources from which we will purchase the material with a material data.

We maintain Source list.

Transaction Codes Related to Source List-

ME01-To create Source List

ME03-To display Source List

ME04- Changes happened to Source List

Tables Related to Source List-

EORD- Purchasing Source List

To create Source list (ME01)

MASTER DATA IN SAP MM

5. Quota Arrangement

When a material has to be purchased from different source of supply Quota arrangement will be used.

For example.

Consider we have 3 vendors’ v1, v2 & v3 and 2 materials m1 & m2

If we want to purchase from all 3 vendors then Quota Arrangement concept is used.

Order will be sent to the vendor having lowest Quota Rating & as per quantity the fixed vendor will change.

Transaction Codes Related to Quota Arrangement-

MEQ1-Maintain Quota Arrangement

MEQ3-Display Quota Arrangement

MEQ4-Changes happened to Quota Arrangement

MEQ6-Analyze Quota Arrangement

MEQ7-Reorganize Quota Arrangement

MEQ8-Monitor Quota Arrangement

Tables Related to Quota Arrangement-

EQUK- Quota file: Header

EQUP- Quota file: Item

Maintain Quota Arrangement (MEQ1)

Regards

SAP-MM4U

IDOC Overview SAP MM

 IDOC Overview SAP MM

• Basics of iDocs and Overview

• Customization and configuration steps

• Partner profile maintenance

• iDoc Structure and Recorders

• Sending and receiving iDoc

• Documentation for iDoc type

• Common iDoc messages

• ALE

• EDI

• Configuration

Configuration Steps:

We should always try to reuse Idocs Message Types provided with standard SAP content, there could be

scenarios where you need to create completely new

Message Type and iDoc type with in your own custom processing logic.

Overview of Steps to Create Custom

1.Register Logical System BD54 or Sale

2.Create custom iDocs WE31

3.Define idoc WE30

•Create iDoc type

•Assign segments to iDoc

•Configure segment properties

WE30-->Set release the segment

WE31-->Set iDocs release

4. Create custom message type WE81

5. Assign iDoc Basic type to Message type WE82

6. Create Function Group SE82

7. Develop IDoc processing Function Module se37

Define iDoc processing Function Module

Code iDoc data processing ABAP logic

8. Assign FM to Message Type/Basic Type combination--> we57

9. Configure characteristics of processing FM--> bd51

10. Configure custom inbound Process Code-- > we42

Create inbound Process Code

Assign processing FM to Process Code

Assign iDoc Message Type to inbound Process Code

11. Setup Partner Profile-->we20

-->Create Partner Profile

-->Configure inbound parameters of

the Partner Profile

Idoc Structure : Its contains three type of records

Control Record : Header data what is send and to whom is send?

Data Record : Whether it is Inbound or Outbound, the fields in which data record

As a functional consultants we need to go display

idocs structure>T Code: WE02 Display the Idoc structure

Electronic Data InterChange :

EDI is a tool that helps to transfer the data from SAP to Non

SAP or Non SAP to SAP. We use EDI

if the customer is using industry specific documents. Industry specific docs are ANSI format. If

we use EDI as a tool to transfer the data we require translators.

Standard message types from which data is sent from one system to another system:

Material Master ====MATMAS

Customer Master ==DEBMAS

Vendor Master ====CREMAS

Order ===ORDERS

Delivery === DESADV

Invoice === INVOIC

T Code : WE02/ WE05/WE07/WE09 To display Idocs

T Code : BD10 to send Material Master from sender to receiver.

T Code : BD12 to send Customer Master from sender to receiver.

T Code : BD14 to send Vendor Master from sender to receiver.

For Outbound Messages Number Range is-->0 to 49

For Inbound Messages Number Range is-->50 and above

Success message number in Outbound is-- >03

Success message number in Inbound is-- >53

Failure message in Inbound is--> 51

T Code : BD87 to reprocess the data with the same Idoc no.

T Code : WE19 to reprocess the data with different Idoc no.

Thank You 

SAP-MM4U

Difference between ECC and Hana

 

Regards

SAP-MM4U

Auto PO Creation SAP MM

AUTOMATIC PO CREATION

Introduction:-

This process will enable system to create the Purchase Orders automatically from the Purchase Requisitions created in the system, without manual intervention, and at regular intervals of time with predetermined master data set up and with a predefined job schedule to run at regular intervals of time. 

In this process system will convert the Requirements created in the form of Purchase Requisitions created through MRP or created manually. Auto PO process once introduced in the system will

make an Optimized Purchasing in the system. Prior to Going into the Details of the AUTO PO process a Brief overview of the

Purchasing Process.

In Order to get fulfilled with the Auto PO process, there are certain prerequisites to get existed in the system.

Prerequisites :-

In order to see that the POs to get created automatically, there are some prerequisites to be defined in the system.

1.Material Master Data:-

a. Material Master (MM01). Proper material master needed to get created for the material with all the relevant data for

Purchasing and MRP to get filled.

b. A check Box for Auto PO in the Purchasing View to be checked.

2. Vendor Master Data:-

a. Vendor Master (XK01) needed to be created for the company code of the plant by which the PO is to be created and to

be created for the Purchase Organization by which the PO is going to be created.

b. The Auto PO check Box in the Purchasing view needed to be checked.

Vendor 0000102035 created.

3.Outline Agreement :

Outline Agreement ( ME31K) is an internal Purchasing document which will be created with the vendor and the plant for the

materials for which the vendor to supply for an agreed price .This acts as a valid source for the Purchase Requisition to get

created with a vendor assigned . For a PO to get created automatically, it is a must to assign a vendor.

4. Source List :

A valid source list (ME01) which is fixed for a vendor need to get existed in the system.It is a List created in the system under

a plant for a material which links to possible vendors for the material supply. Furthermore the source list will have validity

and a vendor can be fixed in the system for supply.

5.Info Record:

A valid Info record must exist in the system. Info Record is a record created in the system for a vendor and material for the

purchase Organization and Plant through which the PO is going to be created. This can be created at the Transaction code

ME11.

6. Condition Records for Output type:

A Condition Record is a record which will be created for the Output Type which is to be used for assigning an output type

automatically to the PO, which in turn either prints, or Fax or Email the PO to the vendor. These can be created at MN04.

Process involved for auto PO creation:-

1. Purchase Requisition Creation through MRP / or through ME51N screen. If MRP run is made scheduled to run at regular

intervals of time Purchase Requisitions will get created automatically.

2. Assign a source of Supply: During the creation of the PR, system needs to assign a valid source of supply to the Purchase

Requisitions. Means system is deciding about the vendor who has to supply the requirement at the Requirement generation

only. In Order to happen this master data which has been defined earlier will serve the purpose in the order Outline Agreement

or Info Record or Source list. With this step, system generates the Purchase Requisitions with a vendor assigned..

Purchase requisition 0010000134 and 0010000136 created through T-code ME51N

Process the Assigned Requisitions:

a) Assigned Purchase Requisitions will need to get processed to convert into Purchase Orders. The run of the Transaction

ME59N for the required input criteria will convert the able Purchase Requisitions into Purchase Orders automaticity

without any manual intervention. In this step if the ME59N transaction is scheduled to run at regular intervals of time for

the pre-defined input criteria, without any Manual intervention, Purchase Orders will get created automatically.

b) If there exists Proper condition record for the output type, system will pick the condition record assigned for the

combination of the Purchase Group and the mode of Transmission, and assigns to the POs created and send to vendor

automatically. Automatic PO created using T-code ME59N:-

ME59N run to create auto POs

and send to vendor

Conclusion:

Normally any Auto process will reduce the cycle time involved in that particular process enabling reduced user intervention.

The Cycle Time reduction will save time taken for the Buyer to fall back on the transactions in SAP in creating the documents

rather he can spend upon the analysis for his purchases and for expending the purchases and can save the cost involved in

purchasing there by meeting the requirement flow in time and can meet the Purchasing Budget . Also the sourcing team will

get reduced in a course of time making the purchasing cycle optimized.

Thank you

SAP-MM4U