Materials Management

This document provides an overview of the scrap return process in subcontracting procurement using a real-time business scenario with challans in SAP. The key sections covered are:

Introduction: Defines subcontracting and provides a business scenario of a manufacturing company outsourcing metal sheet cutting to vendors and receiving back finished sheets and scrap.

Process Steps in SAP: Outlines the SAP transactions for subcontracting procurement – creating a purchase order specifying child and scrap materials, issuing materials to vendor with a challan, goods receipt of finished materials and scrap, and moving scrap to company storage.

Configuration: Highlights SAP configuration required for subcontracting like document types, pricing procedures and movement types.

Stock Monitoring: Shows tracking of material stock at various stages during subcontracting procurement.

Key transactions like ME21N, MIGO, J1IGSUBCON, MBLB are explained along with their purpose. The document provides a clear understanding of the integrated procure-to-pay subcontracting process flow in SAP.

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This training document provides an overview and instructions for using the Source List functionality in SAP. The purpose of a source list in SAP MM is to specify the possible sources of supply for a material. A source list can contain one or more sources, such as vendors, contracts, or scheduling agreements. A source list helps to streamline the procurement process by enabling automatic source determination, quota arrangement, and source selection. A source list also helps to ensure compliance with purchasing policies and contracts. Key sections covered include:

• Overview: Explains what a Source List is and what it is used for in SAP purchasing.
• Source List Transactions: Covers transactions like creating/changing source lists (ME01), displaying (ME03), generating (ME05), analyzing (ME06) and deleting (ME07).
• Source List Reporting: Discusses generating source list reports by material (ME0M).

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This PDF document provides an overview of the subcontracting process in SAP MM (Materials Management). Subcontracting is the process of outsourcing certain manufacturing processes to an external vendor. The key sections covered in this training material include:

• Introduction to Subcontracting: Definition, overview diagram, steps involved.
• Scenario 1 – Simple subcontracting cycle without BOM
• Scenario 2 – Subcontracting with BOM
• Scenario 3 – Sending materials directly from supplying vendor to subcontractor
• Scenario 4 – Subcontracting through MRP
• Scenario 5 – Subsequent adjustments for over and under consumption
• Scenario 6 – Receiving by-products/scraps from subcontractor
• Scenario 7 – Returning materials to plant if PO is deleted
• Scenario 8 – Recursive subcontracting

Each scenario walks through an example with screenshots demonstrating the steps for master data setup, purchase order creation, goods issues, receipt of finished goods, and accounting entries. Key transactions like ME21N, MIGO, MB1B are explained. The document covers important concepts like stock transfers, consumption, and recursive subcontracting.

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This PDF document outlines the vendor retention process in SAP. Vendor retention is the process where a portion of the payment to a vendor is retained by the purchasing company for a specified period as a form of security.

The document covers:

• An overview of what vendor retention is in SAP
• The configuration steps required in SAP to enable vendor retention, including activating the business function, creating a retention document type, setting up number ranges, defining a special GL indicator, configuring the transaction key and parameters
• The execution process for vendor retention, including creating a purchase order with retention percentage, goods receipt, entering vendor invoice, accounting document display, vendor payment, and subsequent payment of the retention amount after the retention period.

The document provides a comprehensive guide to setting up and executing vendor retention processing in SAP.

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This document covers the configuration and process for setting up free goods in SAP Materials Management (MM). Free goods refers to getting a certain quantity of a material free of charge based on the order quantity. There are two types of free goods in SAP – inclusive free goods, where the free goods quantity is part of the order quantity, and exclusive free goods, where the free goods quantity is in addition to the order quantity.

Key topics covered in the document are:

• Define Price Determination Process – Setting up price determination to handle free goods pricing
• Define Schema Groups – Creating schema groups for suppliers and purchasing organizations
• Maintain Access Sequence – Defining the search strategy to find applicable free goods rates
• Define Free Goods Types – Creating new free goods types
• Define and Assign Free Goods Schemas – Defining free goods schemas and assigning them to purchasing organizations and suppliers
• Maintain Free Goods Schema – Defining which free goods types to use and their sequence
• Determine Free Goods Schema – Setting up determination of which free goods schema to use
• Configuration Example – Walkthrough of an example configuration for free goods
• Purchase Order and Invoice Posting – Example of free goods in action on a purchase order and invoice

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This document provides an overview of the complete cycle of the Stock Transfer Process in SAP S4H. The process includes the creation of a reservation, reservation approval, transfer posting, and placement in storage.

The following are the key processes involved in the Stock Transfer Process:

• Create Reservation:
  • Users can enter the transaction code MB21 or navigate through the menu path to create a reservation.
  • The reservation specifies the materials to be transferred, the quantity to be transferred, and the source and destination plants.
• Reservation Approval:
  • The reservation goes through multiple approval levels, with notifications sent to the respective approvers.
  • This ensures that only authorized personnel can approve stock transfers.
• Transfer Posting:
  • Users can use the transaction code MIGO to handle transfer postings.
  • The transfer posting records the movement of materials from the source plant to the destination plant.
• Place In-Storage:
  • This process involves selecting the “Place in Storage” option in the MIGO transaction and entering the relevant material document.
  • This ensures that the materials are physically placed in the destination plant’s storage location.

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This document provides an overview of the complete cycle of the Goods Return Process in SAP S4H. The process includes the creation of a Return Purchase Order, Return Delivery, Quality Rejection, and creation of a Credit Memo.
The following are the key processes involved in the Goods Return Process:

• Vendor Return Delivery – Quality Return (Movement Type – 124):
  • Quality Inspection using transaction code QE51N.
  • Creation of Gate Pass.
• Vendor Return Delivery – After Quality Acceptance & Before Invoice Posting (Movement Type – 122):
  • Return Delivery using transaction code MIGO.
  • Creation of Gate Pass.
• Goods Return with Return Purchase Order (Movement Type – 161):
  • Creation of Return Purchase Order using transaction code ME21N.
  • Return Purchase Order Release through a multi-level approval process.
  • Return Delivery using transaction code MIGO.
  • Credit Memo creation using transaction code MIRO.
  • Creation of Gate Pass.

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