LSMW is a powerful tool for data migration. It has mainly four ways of data input from legacy system to SAP; Standard Batch/Direct Input, Batch Input recording, BAPI and IDoc. The source of data is, to a large extent, excel sheets and its other filetypes (csv, tab delimited etc).
An enterprise structure defines various levels in an organization. These levels are placed according to some hierarchy. Each level has some specific functionality associated with it, which in a combined way describes the working of an organization. In addition, an enterprise structure defines various organizational units that are present in an enterprise. The organizational structure in MM consists of the following organizational levels −
The following diagram depicts one such organizational structure that describes the levels incorporated in an organization. It puts the client at the topmost, followed by multiple company code, followed by multiple plants, plants having multiple storage location with their own or centralized purchasing organizations.
A client has the following attributes −
Client is a commercial organizational unit in R/3 system.
It has its own set of master data with independent table sets.
According to hierarchy, a client occupies the highest level in a SAP system.
Data that is maintained at the client level is valid for all organizational levels.
A company code has the following attributes −
Within client, a company code is an independent accounting unit.
It is a legal entity that has its own profit, loss and balance statement.
It is the smallest unit in an organization for which a complete independent account set can be replicated.
The basic points to be noted about a plant are as follows −
Plant is an organizational unit within a company where activities take place. A plant will produce goods and make goods available for the company.
It is a unit having manufacturing facility, warehouse distribution center, or a
regional sales office within logistic. It subdivides an enterprise in different aspects.
A storage location has the following attributes −
Storage location is an organizational unit, which actually differentiates between different material stocks in a plant.
Storage location is a place where stock is kept physically.
A plant can consist of multiple storage locations. All data is stored at storage location level for a particular storage location.
The points to be noted about a Purchasing Organization are as follows −
A purchasing organization is an organizational unit under a company or a plant that is responsible for the procurement activities according to requirements. It is responsible for external procurement.
A purchasing organization can be at the client level, which is known as a centralized purchasing organization.
A purchasing organization can also be at the company or plant level, which is known as company-specific or plant-specific purchasing organization.
Different forms of purchasing can be described as follows −
Purchasing organization is not assigned to any company code. It procures for all company codes belonging to different client.
Purchasing organization is assigned to a company code only. The plant belonging to the company code can purchase through this purchasing organization.
Purchasing organization is assigned to a plant. Only this specific plant can purchase through this purchasing organization.
The attributes of a purchasing group are as follows −
Purchasing group is an organizational unit responsible for the everyday procurement activities within an organization.
It is a buyer or a group of buyers responsible for the procurement activities in a purchasing organization.
--> 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
•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 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:
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-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 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:
Accounting Entries:
Here Debit means +Ve and Credit means -Ve.
Consignment Payable – KON – Credit
Stock – BSX – Debit
Accounting Entries:
Consignment Payable(KON) – Debit
Vendor Account – Credit
Accounting Entries:
Bank Account – Credit
Vendor Account – Debit
In SAP MM, procurement process involves the cost of goods and services that needs to be paid to the vendor by an organization. The cost be...
