Materials Management

Automatically Generating Purchase Order at the Time of Goods Receipt

As a business requirement it is sometimes necessary to enable automatic generation of the purchase order during goods receipt of a material. For mapping this requirement in the standard SAP R/3 system some prerequisites are required both in the application and in customizing (SPRO) settings. After this is set up, upon goods receipt of material, the purchase order number is automatically generated by the system.

This article illustrates one of the Important functionalities offered by SAP R/3 in Goods receipts procedure in Material Management . This article will demonstrate the process of creation of Automatic Purchase Order at the time of Goods receipts. It shows the settings in the IMG Guide and the master data maintenance to achieve Automatic purchase Order Generation on Goods receipt

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Customizing Steps of Purchasing Document Types

In the SAP System, the different kinds of purchasing document are distinguished from one another by means of the document type. The Document type determines the relevant number range and the fields that are offered to you for data maintenance purpose.

Document types are defined for RFQs, purchase orders, and contracts, for example. The standard SAP system includes certain document types.

The following purchasing document types can exist for the purchasing document category purchase order,for instance:

  • Standard purchase order -NB
  • Stock transport order – UB
  • Framework order – FO

This article illustrates the use and customizing steps of Purchasing Document Types -Material Management. It shows the settings in the IMG Guide and the outcome of such customize setting changes.

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SAP Invoice Verification End-User Training Manual

This course focuses on Verification Vendor Invoices for Materials (Non Stock) and Services in SAP, The invoices from Vendor are recorded in SAP by referring to:

  • Purchase order number (against which the non-materials/services are delivered by the Vendor) and the system would list down all the eligible line items from Purchase order for processing the Invoice. The relevant line items specific to the invoice presented by the Vendor needs to be selected before proceeding further.
  • Vendor code, where the system will list down all the eligible items (materials/services), from various purchase orders, for invoice processing. The relevant items (materials/services) are selected from this list, which is indicated in the Vendor’s invoice, for further processing.
  • The Vendor (Invoice Party Partner), the vendor document number, date of invoice receipt and total value of the Invoice are mandatory fields on the header of the Invoice.
  • The value and currency from the Vendor’s Invoice are entered during Invoice processing and the system gives message for any differences between the value from Vendor’s Invoice and the Purchase order values and the quantity in the Goods Receipt.  The invoice will not be posted until the difference is zero between the debits/credits (or within the allowed tolerances).
  • A document number is generated after successful posting of Vendor’s invoice and this would now enable processing of payment to vendor (against this invoice) using the baseline date of the entered vendors document date and the terms of payment.An accounting document is also created automatically in the background to recognize Vendor liability and to clear the GR/IR.

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Solution Guide to Incorrect Material Movement in SAP – An Approach to COGI Errors

The theoretical part of this study deals with materials handling, especially from the viewpoint of effective warehouse operation. Other issues addressed in the theoretical part consist of warehouse management, goods reception, the Just-in-Time approach to production and Material Requirements Planning.

The problems related to the incorrect material movements are specified and presented in the present situation description. A description of the processes where material movements are involved is also included in the section.

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Basic Concepts of SAP Materials Management – Movement Types

This document is provided as an introductory material after SAP Implementation for a university to give basic core concepts of Materials Management module. After reading this document you will be able to:

  • Understand the relationship between the organizational structure and master data
  • Use SAP transaction codes to execute various goods movements
  • Create a personal favorites list of frequently used movement types
  • Understand the relationship between goods movements and movement types
  • Execute goods movements in SAP
  • Cancel/ reverse goods movements
  • Execute a return to vendor transaction and issue goods using specific transaction codes to cost centers, work orders, reservations and scrap
  • Transfer materials from one location to another
  • Pick and issue materials
  • Differentiate between a stock and non-stock material

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Stock Transfer Between Plants 1-Step and 2-Step in SAP

1- Step Transfer
This process describes to transfer the material stock between plants 1-step. This type of stock transfer can only be carried out in Inventory Management. Neither Shipping in the issuing plant nor purchasing in the receiving plant is involved in the process. Transferring stock in one step has the following characteristics: – The stock transfer is entered as a transfer posting in Inventory Management. Creating a reservation can plan the transfer posting. The quantity of the stock transferred is posted immediately from the unrestricted-use stock of the issuing plant to the unrestricted-use stock of the receiving plant The transfer posting is valuated at the valuation price of the material in the issuing plant. If the plants involved belong to different company codes, the transfer between plants is also a transfer between company codes. In this case, the system creates two accounting documents for the transfer posting. The stock posting is offset against a company code clearing account.

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