SAP MM Training - Procurement of Stock Materials1 (Video 4) | SAP MM Material Management

by: The Smart Hands

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welcome to our next session of asipi mm training and today we will be starting our next topic which is procurement of stock material so before we start let me explain you what is stock material we have different types of material and as we go further I'll be explaining them one by one but for stock material is a type of material for which we maintain the stock in our business or in our company okay for example it can be your raw materials it can be your trading goods it can be your finished code it can be a semi finished good okay so for these Goods we maintain the stock in our company okay and do the posting for received and issue okay so let's start this topic and the topics that we'll be covering within this stock module will be what is request for quotation quotation processing create purchase all of these reference PIR record conditions violation class violation area stock types material and accounting documents effects of goods received invoice and accounting document and delivery cost so these these are the topics we'll be covering today so let us start with our first topic which is request for quotation okay because for quotation now first we need to understand what is RFQ what is request for quotation and why we need request for quotation okay so for example if I'm working in a company and from a purchasing officer okay I'm and user of Sapa an ama purchasing officer so from the business they I got a requirement that I need to procure this new material it can be raw materials so we need to procure this material okay for the business and probably is the first time we going to buy this material so first of all what I will do is when I got the requirement to to buy the product abc123 for example so I need to find the right vendor who can supply the same product ok on the right conditions on the right time and on the right price ok so in this case what I will do I will ask a couple of vendors ok that we want to buy this much here and give me a price ok it's like in general life for example if I need to buy a laptop what I will do I will go to two three shops and I will ask them ok give me a quotation give me a price ok and whatever price will suit me I will find better cheap and best I will go for that price so same thing here I got the requirement I will ask a couple of vendors to give me a price and this will be done by a thing called request for quotation RFQ so in SP system will be creating RFQ ok and also vandal to give us a price ok so let's see some throat Akali first and that will start some practicals so so far in the previous topics we have seen that we had just seen the how we can create a purchase order the SLP then we have seen that we we have done that go to sip and then we have done the invoicing document ok so we could do a motion document so three things we have seen before but this time we'll be adding another thing in front of purchase order ok and that will be request for quotation and quotation ok so what we'll do we'll start the process not with the purchasing order but with the request for quotation and quotation then we'll move on to purchase order go to shift and invoicing documents so let us start with our first part request for quotation now request for quotation as I said is a document is that we got the requirement from the business and we need to find the right vendor so what I will do we got the will ask vendor a when the we went to see ok give me a the best price and once they provide me that quotation ok I will find which is the right quotation for me and I'll select one of them and reject all others okay so whatever I selected as a right one I will create a purchase or dinner system for others which are not good for me or maybe the price is higher I will create a rejection letter I will reject those offers okay so that's vertically II so these are the processes will be creating in a minute to create a request for quotation and what we do is in the request for quotation is we basically use a thing called collective number okay that means collective number is just like a common number for the one requirement for example if I need to buy a product material m1 okay and I have sent a but chase request for quotation to three different vendors so so the collective number will belong to the same material okay so that means that collective number is a is a separate number assigned to that type of requirement of a bath requirement could have been sent to three vendors can be five under so that's a common number that is linked to that type of requirement okay so we'll see that particular in a minute and suppose we have send the requirement we are surrender when the 11.2 vendor three to give me the price and they have sent the price to us so what we'll do is we receive the price will enter that price in the Isetta system and once we have enter the price will be comparing the price in that safety system okay so it's the first step is will receive the price and we will so let me take a pen okay so first step will be here you can see we will receive the price here okay number one will enter the price okay then in the number two once we have entered the price what we'll do is we'll compare the quotation that is received from all the vendors okay and out of all the quotations we'll select one which is a right one for us okay and for that we'll create a purchase order and whatever is not good for us scrotus rejection letter and we'll send it to the vendor okay so we'll see that article in a minute this is a this is a flow we're going to crew it in in ASAP right now so first we'll create a request for quotation the transaction code in sp is a me 41 then we'll assign a assignee that collective number then third step will be will print display and print the request for quotation and then suppose then we have sent the requirement to the vendors okay give me give a circulation then suppose the vendor has send us that price okay so price I received from the vendor and then we'll we'll maintain those price into those quotation okay then we'll compare the price okay whatever is received from the vendor then whatever is not good for us we'll create to reject them the unwanted quotation and then we'll print objection letter okay in the system and and that's it okay and whatever is good for us and then finally we'll create a purchase order for that so let's create these steps in the sed system so first step we have is we need to create a request for quotation okay so let me create a example here so from my business I got the requirement for ABC procurement of product number ABC one two three okay so we need to procure it first five okay and our purchasing officer and I'm told to create to find the right procurement source for this vendor so let's see how we can do it so let me log into asipi system

okay so first step we have is great RFQ okay Emmy 41 or you can either go to the menu path here or directly enter the donation code so material management purchasing which is rec which is request for quotation request for quotation Emmy 41 okay so double click here or on the top you can enter me4 d1 press enter so that's the screen here leave everything as it is so just in a quotation deadline select a date what deadlines you want okay so that line will be said say two weeks in the future just say two weeks in the future okay and then select your purchasing organization and your purchasing group okay so thousand thousand is the purchasing organization we're using group you can choose any that the matter the presenter and in this screen see collective number the cursor is automatically on the collective number field okay so here give it a collective number okay so collecting numbers just like a a common number which will give to this requirement okay so you can give any number or I can put my initial okay so I'll put my initial here GS okay you can put an issue you can it can be any number okay once you are done press enter and in the next screen here enter the material number that you worked okay so here I will enter ABC one two three okay and what quantity you want I'll say we need a hundred pieces of this Michelle press enter okay there is a warning at the bottom just ignore that warning press enter again there is a message at the bottom please enter deliberated okay so what is expected delivery date so we'll say okay expected delivery date will be say put a date in the future of three weeks in the future okay

okay looks good so here I am just entering one match here you can enter as many material as you want you can enter more than one Michele yeah okay now we need to assign it to a vendor okay so to find the vendor here click on this button on the top vendor address and he is such for the vendor okay if you remember the code of the vendor is good if you don't remember you can search for it click on this little search button okay so so here how will we create some vendors earlier so I will say study Nash was one of the vendor of the sturdiness star give me all the vendors starting with the name steadiness enter

study star yeah there was a space after study this one okay so I'll pick one vendor here say one double zero five zero one once you split pick that and then press Enter when you press ENTER you can see it will copy all the name address and everything from that vendor okay once you're done click on the Save button on the top save so we have created one RFQ for this vendor okay same way I will create the event the RFQ for another vendor say 105 0 2 press enter the second number okay for this printer as well ABC goods Private Limited I will save it so ii wonder and I will pick another vendor third vendor say 10 enter this is XY that vendor save it that's it okay so we we have send it to three vendors okay so that was a step number one we recruited our queue we have assigned the phylactery number and now what we'll do we'll display and print the RFQ okay so transition code is mi 15 FM e9a so go back so here at the bottom also you can see it's creating the number for RFQ if I click if you click on the message the bottom it look on a message it generated this number okay that and the earlier two numbers were should be so right down here all the numbers it will be 25 26 and 27 3 I refuse we credit with this document number okay so right now we go into this step which is display and print so let's go go to the main screen here you can see under message me9 a double click on that and here it will remember the last number okay so I will change I will copy this number and say from 25 to 27 we had three write and execute so you can see here three documents all together okay so three documents are here okay and so you can see here the phone number one go on to study next run the second one go to ABC third will quit XYZ on this state and that's a partner number date and everything who created and all that okay now before you want you send this one you it's like you sending an email you can think sending the email or you can print it or you can send Y effects depending on what output message you have set up now for example first when I was like that and click on display message that means I want to see how the how the output will look like click on display message so it will show you the output so the output will be looking like this are at cue okay the document number so here you can see other cue document number ok vendor when the name and address like that okay and at the bottom you can also see other stuff like what is the material how many pieces were needed and all that okay so this is not a very good looking output but this output can be customized by the developer okay so that's one message and if you look at the second message say this one display message it will be similar but just a different vendor so here you can see it's ABC good company and that's all this okay there's a dr. of number date and everything scroll down you can see the item number pcs and everything okay so once you're happy with this everything then what you can do is you can select one and click on output message or you can select all in select or by clicking on the select all button and click on output message that means system will send the output to the vendor ok so you will see this stick here that means message outputted message output it that's the message here okay so we have sent the requirement to the vet to three different vendors and we have asked for repetition okay give us a price use your best price okay so we are here we have displayed and printed the other cue okay now another scenario vendor will receive this request for quotation and they will work on it and they will send us their best price okay so suppose you have received the price okay we receive the price from all three different vendors so we write down here so when the number one was 105 zero one okay so they send us twice a dollar maybe eighty eight okay each okay third piece okay and discount you can say discount is dog is say five percent discount okay on the standard price when the other vendor when the number of five zero two hundred five zero two okay they send us say ninety five is the price per piece and discount is say ten percent okay third vendor 100 5/10 they send the surprised as say 98 and the same discount will be 14% okay just different sooner if so what we'll do we have received this prices from the vendor will enter them in the into the system okay so maintain quotation so that means your RFQ request for quotation will be converted to a quotation ok RFQ will be converted to here RFQ request for quotation will be converted to a normal rotation once you enter the price is okay so to open the quotation okay Emmy 47 is a translation we can go back and here you can see rotation any 47 open it open for the first document okay first off mine was 25 so 25 I will open here okay select the the item line and click on this little button item condition okay to enter the price and here I will enter the price with so they send me $88 per piece or I'll say okay 88 so there's press Enter so there's a standard gross price okay PB x axis the condition will talk about condition electron and discount is saying 5% so for discount the condition type here we're using is our is 0-1 okay our is 0-1 so they saying are a 0 1 and enter up five 5% you can see the saying R is 0-1 discount on gross 5% okay save it go back and save it go back and save do the same thing for the second one sorry - so 26 26 so the second other vendor select the line click on item condition they send me the price as 95 per piece and 10 person discount so so k95 is a price and 10% is a discount say kissing badly PI and Chan go back and save it and do the same for the last one which is 27 selected item condition so base in winter price is 98 98 and the discount was fourteen fourteen ninety eight and fourteen or good go back save it okay so we have converted the RFQ to a quotation okay so we have the liquidation part and we are here we have now we have maintained a quotation now we'll compare the price in MI 50 49 okay so we'll compare the price here so ami 49 price comparison so here you can enter the quotation number if you want so copy that or instead of entering the quotation number what you can do is enter the collective collective RFQ number okay that's the use of RFQ number so I was using RFQ number SGS so I'll say Jesus is RFQ and execute it will bring up all those quotation okay so there were three quotation only so it is showing you all the three quotation okay now here you can see so we have entered those prices and discount okay price and discount price on this one the system is calculating the value for each okay so system is saying okay for the first you can see the first line here the net price will be 50 120 okay for this one each and the total will be four five one two zero something and for the second one price will be fifty one sixty two H okay as for the second price okay and for third it will be something else okay so what system is doing is system is comparing all three of them okay and it's showing your green once it is a green light here so green light means that this one is the best price okay so system is already comparing them and giving bounce at that okay the green light one is the best price okay so you can see that's the best price so if you are happy with this one so you can say okay I will I want to go for the first one and I will reject the second and third okay so here what you can do is to reject it you can select the second one so for example I want to reject it so I can select this one and I can click on this this chain quotation here maintain quotation here so it will go to that quotation straightaway okay and here you can click on this reject rejection indicator see at the bottom take that that means we're going to reject this quotation save it do the same for the last one third one go to maintain quotation and also will reject this save okay so we have rejected the second and third so first one we are happy with okay so first one is the right one and second and third are higher passes okay so let me check something

okay now what we'll do is so we have ducted the second and third let's see what the next step is reject really unwanted condition okay so we have already acted on hundred predation and now we'll spend a rejection letter in me9 eh okay so if I go to any 9a go back to print the dashing letter so me9 a I can type here me9 a entered and here it was 26 in 27 number quotation execute that okay it will display you those quotation you can select one quotation and click on display message how the output will look like let's have a look so here you can see this is the printed one this is a printout it will be sending to the vendor okay and here you can note that this rejection letter for all at you okay to this vendor okay and there's some standard text here for the session later okay so that will be sent to the wind so if I go back so what will do I will select both of them and I can click on output message that means we have now send the output to the vendor that okay we have rejected your offer okay and we are happy with the first offer okay so we are here so we have done all these steps so let's move on to the next one so we have we got this price and let's remove this one and we are happy with this quotation number okay so I'll say okay rotation okay is that fun okay so what is the next step is now we have we are happy with the price next up will be what what we'll do is we'll be creating purchase order okay as a reference from that quotation so what we'll do I can to how to create a purchase order I can go back to the main screen ma 21 n now because we want to create a purchase order from this one as a reference right purchase order the reference so that means system will copy the data from the quotation to this purchase order okay we don't need to do the entry again system can copy all that okay so let's create a purchase order so that's a purchase order creation screen click on a document overview on it click document over beyond make it wider and click on this little icon on the the first one a selection screen selection variant and because we want to decorate to add a quotation so click select the request for quotation so it's let's let me run for everything it will show you all the quotation that is available so you can see all these quotations are available okay now what was the right one 25 so what we'll do is out say okay we want to refer it to 25 okay so 25 we can copy so what we'll do is select the 25 and pick on this coffee button and system will do the copy so just just keep an eye if I double click on this one it will display that document here let me show you but double click on that well this is not showing it will show you for the requisition sorry not for quotation okay so this will different so to copy that select that and click on this and adopter button to copy that you will see it will copy the data to a requisition see okay and there's a message at the bottom is showing me that the error message here you can see there's a red light here so if I click on the red light it will show me the messages enter the plant okay so we need to enter the plant here only so here in the front section of the thousand number plant press enter okay so there's a warning here just press enter press enter again to get rid of warning and everything is good okay so here you can see if I go to the tab here condition you can see it copied that price that discount and everything that vendor that material the vendor is here the price is here the discount is here okay so the data is copied and I can save it so my purchase order is ready okay so here you can see the particular number I can click on the message at the bottom and I can copy the purchase order number so my purchase order number here is this okay so purchase order is ready from the quotation of quotation reference other thing I want to show is so like this you can select your number and you can click on the copy button and same way you can do it for that equation which we'll see in the next chapter and also you have some setup that I'll show you to change the layout okay so let me show you the change layout so that is when you see this reference here right you'll see the reference you can click on this little button here to change the layout see change layout so that means what type of really want to see here for example I can say I want to see the material number select the material move it to left I want to see the vendor number move it to left when does name move it to left and say check so you can notice here it will show you those fields from that document okay so for example document number six zero to five head material number ABC had vendor number one zero zero five zero one and that's the name of the vendor so every user okay I can have my own default own layout here you can have your own layout here so whoever like whatever they can have their own layout okay and they can only select the fields that are available from here you can see there a couple of fields have level here and a case like that okay so I will undo the changes to undo the changes Schlag back to right it's like that again we will - right and done okay so that's one thing to change the layout and the other thing is what is not a breakdown okay so what it is you can click on this little button to change the breakdown okay so let me show you it's like that so at the moment it is showing you the purchase order document number only okay so you can see only the purchase document number you can see I want to see a material next to it okay you can move it to left okay and you can say I want to see vendor you can move it to left if I check that you will just see the change see it will show you the hierarchy to show the Hobby so so on the top you can see here let me check this one again so that's a vendor number there's a document number there's a material number okay so let me change it to something so let's see the first one just ignore this from the first one okay on the top you have ABC is the material number then you have document number then you here vendor number okay so you can see the in the hierarchy form as well I'll click on this one again okay so you can add anything remove anything from here okay but you can also move it to top and bottom for example you want to say I want to see the banner on the top or purchasing document on the top so it passes in document and you can move it to top I keep a save it it will show you further which is in document number then the vendor number when the material number then the vendor number so it will show you all three or whatever you have selected in the same order that you have selected in the order here and you can change this order with this up and down fields okay so I personally like the standard view so I will remove that I will remove that and I will say I'm happy with this one okay so everyone can have their own views okay so that's the end of this first part which is a request for quotation and quotation so before you move further I want you to do one little assignment on the server so just follow these steps so first of all create a RFQ for yourself using three different vendors you can use the same material that I used or same vendor and familiarize yourself with the head of an item that out for at you okay so when you go to RFQ if I go to translation Emmy 42 so like every every document every strands action has a header data an item data so that's the header data header data ok header Terrorizer headed allies common for all the items for all the document okay item data is only specific to that item okay so here is a Hyder had a number is that the elected number is that vendor is that okay tradition type is that date for our feels that there's a header data which is valid for all item and then say item data okay so that is this item there's a description that's the quantity we need delivery date we need okay you can enter a second item third item so that is the item specific so there's Hanna data that's item data so that's the first step second now you have traded the RFQ for three different vendors now the second step will be suppose you receive the price from all the vendors so enter your prices in your RFQ okay and create a quotation like I did then compare all the RFQ and reject the revolted quotation and finally create a purchase order as a reference from the one that you like for the quotation and also play with the chain layout and a break down buttons okay I'll just take this blade on and chin layout okay just play with the setting and see how they work okay so that's an end of first part now we'll start the second part which is PAF record what is the information record now what PIR is P is an for purchasing information record and this is like a master of itself okay and in the previous topic we I explained you master data but I didn't explain this master data because this is a master die again but this is a little different okay that's why I'm put put that in this topic here okay because I need to show you some setup as well behind this one so purchasing information record is for example in my company right material ABC for example okay so we make a purchase of this material from different vendors okay from we make the purchase from vendor one will purchase it from vendor one or vendor two or when the three okay all maybe one or maybe more than one so that means when we purchasing it from this vendor this vendor can have different prices different discount different condition okay same with this one that that can have a different price different conditions same with this vendor okay so that means we can maintain the price of this material with this vendor the dis vendor with this vendor and that is maintained in the thing called PIR purchasing in Forth recorder okay we will maintain the price that is specifically linked to a vendor and material hamid okay so when when will buy it so we can either buy it from this vendor or this vendor from this vendor so if we buy from this vendor system will read the price from here if we want from this vendor system will again with the price different price from this record okay so that is the that is why we need to maintain the PIR record okay so you can see here in the screen that you need to buy a screw and when there is one two three four for example so you will maintain that record in the system okay

so let me show you some practical for PIR record VI record so PA record transaction is let me long the system

under Macerata info record m11 okay Emmie lemon to create a meat world to change and we fall into despair so just say right here I'm 11 and I meet 12 is that salvation so and we level to create a Meatwad to change okay so if a double-click on em 11 so here what we do is we maintaining the price for this this material this vendor this purchase of this plant okay so that's that means we're maintaining the vendor and material price which is purchase org and plant specific okay so that means here I can enter say plant is thousand which is the Gauss thousand if we see the material that is a vendor okay so from this vendor by buying this material in this patch is all in this plant okay info record number leave it blank because system will generate a number automatically for this one and then we can maintain for different types of info category okay that means again it has four different types of category so first one is a standard okay like standard vendor Michelle price okay that will maintain in a minute second one is subcontracting so subcontracting will study again later on in the next topics but what subcontracting means is like when we sending some work as subcontract for example if my company's manufacturing laptop okay so I'm doing mine fetching all the raw materials everything but just for the assembly purpose on the assembly of the laptop we sending it to a another third-party vendor only for the support only for the assembly part so this is called some quantity that means a part of the manufacturing process will be done by a binder okay subcontrol a so a third-party vendor will only do the assembly everything else will be done in my company so that is a subcontracting so we can maintain a subset of content a record-high pipeline is used for like the name is in pipeline for pipes for example where we have received some sort of like electricity from the vendor or gas or something like that gas electricity okay water okay so in that case we'll be creating a pipe and consignment again we'll talk about consignment later on again in detail but if you remember in the second topic I told you about customer consignment okay where consignment is nothing consignment is like when the vendor will put their goods in my company for my premises okay as a consignment that means they still own the goods but they put that goods in my company so whenever might come they will need that Goods will pick the goods and we'll create a purchase order so in that case we'll create a consignment record okay so we'll stick to a standard phone one for now so standard select standard and enter your material a vendor number material number which is organ clutch okay press enter again in this PR record there are different views okay one view is called general general data first we use general data okay we're here you can see some judge general okay I'll show you in a minute then the second view is your purchasing of data and third view is your plan daughter so the three views are there okay so let's have a look into all these reviews you entered your material vendors purchase organ plan and press enter since the warning just press ENTER again so that is your on the general data see in the top you can see creating for record general the ROM on the general data screen as I said here general that are the first one so general data here you can enter the what is the vendor material number like what mid if I'm calling in my company abc123 what commander is calling in their company they may be calling XYZ one two three okay telephone number so just enter the important fields here so and and that's it once you're done with this one press enter now Monda butt-kissing or data okay you can say the changing or data purchasing or data so here but chasing or data specific will be will be entering so you can see plan delivery time how many days it will take to deliver the goods so 25 so this 25 is coming from the material master this okay if I open this material I'll show you one more screen here if I open this material you can notice system is copying go to n102 here we maintain 25 earlier I guess here see line through time is 25 so that 25 here is copied to this one okay and we can change it if you want you can change it here if you want you can make it 26 or something else okay and what standard of quantity you want to buy so you can say minimum 10 or standard 10 or standard is 5 you can make that something like that what minimum quantity should be mine 5 or 10 or to whatever you want to enter and here you can enter the net price see net price and here we'll say okay what is the price that this vendor will be charging okay so I'm maintaining ABC material which is this one and I'm maintaining with the vendor this 105 time so I'll say 105 time

okay so so this vendor was shouting say $88 per piece okay press ENTER and here you are on the purchasing another two tab just there is nothing not much here we can maintain press enter here you can maintain the text see you can maintain some text so some some important at whatever text you can say okay the price is valid till December 2014 for example okay and save it and also there is another thing you can do is you can I can from here I can jump to general data purchase order conditioner that we haven't maintained that condition data so condition if I go to condition data choose ok so 88 I entered earlier okay so 80 error condition now here I can enter so then such net net price if you want you can enter some discount here okay so the discount here select R is 0-1 for discount or a zero so discount also okay this con will be 6% okay so you can rent a price and discount in this info record so whenever at parties are all will be credit it will read this info record okay also you can maintain what we call is scale price if you ever heard about the scale price okay scale price is like I show you you double-click on this price or put the cursor here click on this scales here we can maintain the scale price scale patch means when we buy say minimum 10 price will be say 80 for each when we buy minimum 20 price will be 80 like that so that's a scale price so you you can maintain as big a scale possible when you buy 30 price will be 75 when you buy 40 minimum price will be 70 so you can maintain the scale price so depending on how much quantity you you're creating in the purchase order system we'll pick the right price from here okay so once you're done with this one go step back click on the back button so we are ready the scale prices here you can see it put a tick here in the scale that means for this one there is a scale passes maintained so he can double click on this one to see the display to see the scale prices or go back okay go back again and once you're done save it so when you save it system will create an for record you can see 30 line for record for you okay five three zero zero zero record number something x-rated okay so next time you create an order it will pick up the price from here okay and other thing we can do is so similarly you can maintain cycle for this vendor similarly I can maintain the price for another vendor okay so say this time I want to maintain with zero one run the number so what I loop same thing change to 0 1 enter to the warning here press Enter so this one is calling it's a GTG one two three press ENTER minimum quantity is one why still be say 92 click on condition choose here I will enter some discount say 8% will not maintain the scale here and save it like that okay so you can see I'm ending with this one and I will maintain it with the another vendor say when the 5-0 to change it to enter its the enter and to paisius a 98 conditions choose are a so discount will be say maybe 12% enter save so we maintain the price with three different vendors for this one okay now suppose you know the good question here is that

how to search for the price for example okay for example this material here abc123 okay so i I know that we purchasing this material from a couple of vendor okay and if I need to check that to which vendor this pass is set up within the P I recalled how do I check okay so as you know amid 12 is a transaction so what I'll do I will go to Emma 12 yeah a mutual and here I will enter the vendor number material number and all that press ENTER and it will show you the setup price and everything here okay but suppose if I don't know I know that this material is cooled from a lot of different vendors which vendor I don't know but in M it well when I go to Ma 12 I need to enter the vendor number if I don't enter the vendor number if I press Enter these error at the bottom is saying enter the vendor number first okay and if I don't know from which meant that this is procured how do I enter the vendor number here there may be thousands of Windows setup in the system and how do I know that with which vendors this material setup okay for that we have a tradition called me1 am me1 am so that means if I go to this transaction anyone am see this this despair me wanna buy material here you enter the material number and the purchasing hog and and plant you can remove a partner purchasing off you want but here you don't need to enter the vendor system will show you that variability setup if I execute that we remove this see it's showing you one two three it set up with the three different vendors so you don't need to remember which with which meant that he said that so you can see that it is set up with three different vendors first one days five zero one five zero two five zero sorry five ten okay and from here you can double click on any line and will take you to the PA record okay go back double click on the first one it will take you to the pier record so here I know that so looking at this one anyone can see that ok this is set up with this random so that's a screen to such for the PR record by material we have another one anyone else I mean one M is search by by material and we have another one called me1 L which is search by vendor ok search by vendor so M even L here if for example you want to see ok I just want to enter the mental mind the number and I want to see one hundred five zero one that all the materials that are set up with this vendor ok so enter the vendor number execute that so there's only one set up with this one ok maybe with this one there may be a lot of other materials are set up so you can do that as well ok you can also enter a range from this to this show me all the info records so for this one one two three four five four or five or seven okay so even if I just go for two number two only to execute you can see there are three different materials set up with this vendor okay that material number ABC metal number X to Tenten Matilda match it 1020 so that's your PA record and then so what happens is like I just created a VI record okay we'll call that PA record again okay that is the vendor number that is a material number we set up just now abc123 okay so what we can do is when I create a purchase order if I double click on this one let me disable display the PA record and they're surprised okay if I create a purchase order for the same vendor a material system will read the price from here okay let me show the example click on create session and here I will enter a meet 21 and to create a purchase order and here I will enter the vendor number was 105 0 1 enter and enter the purchase organization and company code and in the material enter the virtual number abc123 and quantity say Chan enter ok

enter the plant enter you can notice the price is rate 92 8% discount okay where they sign D 2 is coming from is coming from the condition record if I go to the condition record choose C 92 so 92 is the price net price and 8% is a discount okay so 92 and 8% the net will be 84 okay so that's what is showing you here 92 and 88 percent discount okay so system will read the info record even if you can see that here somewhere see here is showing you that what info record numbers reading here is reading in phony kodokor number ending with seven zero four four seven here also you can see the core number is seven zero four seven so systems automatically do PR record okay so that's info record now let's see how the purchase order will read a record okay where the purchase olive will look for for a price record okay so whenever you create a minimal critter purchase order item okay system will read that if info record exists or not okay if it exists then yes if they exist yes that's good so what system will do is system will read the the record number okay in for record number and condition and give it the price to the purchase order like we just did okay if not if not then what will happen is system can read the last purchase order number that's the second priority okay so system will lead the last created purchase order for the same vendor same material and copy the price from there if the first one is not maintained ok system will read the last purchase order number that and we'll read and copy the price from there okay for the same way vendor material okay if they both are not maintained it was suppose this one is also not there the last position but is always not there and the first time we're creating a purchase order and there is no PIR as well that means you are here condition no okay in that case what you will do you will enter price manually okay but you need to understand is there's the first priority that's the number-one priority okay that's our number two priority and there's a number three you will do okay

okay now purchase order in record update okay how we can how we can update a purchase order record I can go to the change here for example I will call anyone am double click on that open the record change and I can change manually here like here it's grayed out but if you want to change it you can click on condition choose double click on this one date and here I can see in the price okay I can say okay the new price is 94 okay even what you can do is when I say 94 I can enter a validity that means I can say ok this is starting from today and ending on probably sending on the end of the year okay so I can give it a ballad to date as well that's this pass is only valid for that date okay or I can say that pie spice will start from say also ok this new price is starting from next year 0 1 0 1 2015 for example so it will be starting sale for next year press enter the sensor again ok so that's a new price for next year but still we have the old price you can see you still have the old price and that's starting from I've done a mistake I assume we're doing it this way but this price is starting from next year if you want to maintain for today price as well I can go to condition I can choose I can say ok there is enterprise from today which is valid today it will be say 27 valid for this here only

say 92 is not a surprise okay I can save it so Saddam will automatically depending on that date system will automatically read the relevant price ok system will automatically so if I create a new order this here then system will pick up that price and if I create update order after this date okay next year then system will read the other voice 94 okay so that's that's how we can maintain the PIO record manually okay so that how we can update basic number talking about the updating of the appear record okay so how we can update PA record so time to time the vendor might be changing the price there might be every year they they prodding different discounts or maybe every year the increasing the price okay so how do we update the PA record okay so first thing is manually like I just did now second thing is automatically that means P record can be updated automatically okay how is the automatic is possible when you create a PR when you create a purchase order that's my purchase order just created right in the purchase order here can you see this one informed it can you solution input it okay that means if whenever you create this a new purchase order okay you can make is a default tick or untick okay let's suppose this for now this is default pick for me okay that means if I change a price here that will ultimately change the price in DES for example Nora is copied this price okay if I change a price here also know this price is 98 okay system will update the info record because I have change the price here okay that's automatic if this is state if this is ticked then only any change a price here so whatever the latest prize in the latest purchase order system will update that in the in forethought automatically okay if and if this is ticked okay you need to make sure this is staked okay now how we can customize the system to make it default tick and default untick how do we do that so depending on the business requirement one business will say yes we want to automatically update other Bishan will say no no we don't want to automatically update we want to manually update okay so how we can customize the system so that this is default tick or default not ticked okay let me show you

so this requires some customizing as well okay so if you remember that I told you before that we're not starting the customizing right now so we'll start customizing very soon and we just at the moment we're just understanding the business processes provided by ASAP mmm and also how the end users are using the system okay but only for this specific topic I will I need to show you the customizing only for this one but full-fledged customizing will start very soon so how we can customize this setup okay so this setup can be customized via the menu path here that I've shown you step one is to create a profile in the customizing we need to create a profile using this menu path the second step is to assign the profile to a user okay so let's do the first step which is to create a new profile so we need to go to the customizing menu so as go to the home screen and SP ro is the transaction to go to customizing okay again when we external the customizing I will explain this one again in detail but for now enter SP arrow click on si P reference IMG and here we'll follow this menu path mmm purchasing environment order mmm material element purchasing

environment data and then default value for bias setting Oh condition setting for default values here we can create a default value what we need to do is to so you can say there are some default values 0 1 0 2 0 2 3 4 if I select one and go to detail so here you can see let me build a brand new one or I can pick a new one for example even if you want to create a new one I can click on new entry I will call it Z G ok default value I put my initial GS okay so here you can select info record update ok how been 44 table should happen for purchase order ok what do you want to do no update that we is unchecked update with planned or without plant so what the plan means is when you create a PR record let me explain the PR record again when you create a Pio record in M 11

so one thing you enter is party the organization and plant okay and press enter and maintain the dog are here okay but other thing you can do is you can go back other thing you can do is I can remove the plant I can make the plant blank and I will trade a PR record which is common for other plants if if I do not mention the plant here that means I'm creating a be a record for particular organization specific which is valid for all the plants so it can be a plan specific it can be no plant specificity so here if I enter enter I can through the recording the same bit like we did before okay but this time because we did not enter any plans so that means this record is valid for all the plants if you do not enter the plant okay so that's why it's customizing saying here so no update update with or without plant update with plant only when there is a disciplined there or update without plant ok this for now you say just play pick a ek that means update with or without plant okay so for purchase order we want to maintain and quotation also you can say the same thing okay from the quotation as well system can update the info record from accreditation okay so you can say no update for the quotation so you can say okay we just want to update the record from the purchase order not form a quotation okay so leave it a and save so I traded GS so here it will ask you for first time you will do it you will see a blank here you will see a blank here okay when you see the blank here is asking for a transport request and I'll explain about co transport occurs later on but for now you can click on this create button give it your name of the transport what you do in your case also transport request G as output manager okay and click on Save button and next time it will always remember your number save it for weekly reads at G s okay so that's the first part that we need to create a profile like this okay so that's the first part here and second part is to assign that profile to a user okay so in what is user so every user in in s ap has a profile okay like I have a profile you have a profile so everyone who want to log into a CP system right I want to log into this system I need to enter my username and password okay that means I have a user profile created okay so user profile you can see that in transaction su 0 1 su 0 1 is a common to see a user profile okay for example if I want to see my profile I can go to slash and su 0 1 so I'll put my name here if you have a profile you can put your name and click on the Change button and here I have a profile and just go to the parameter type parameter and here there is a parameter called you need to enter a parameter called Evo Eevee oh and enter the value that you want you created here ebook ourselves LG this was ugly so for for myself enter okay so that means is LG is a profile assigned to my ID probably already or maybe somebody else already can have a different profile so whoever this profile is signed they will have this setting activity that means for them the purchase order will be automatically updated okay sorry from virtual purchase order your info record will be updated okay and I can save it done okay so so that's how you can create a customized the profile okay and so this will basically ultimately update your info record automatically okay so as I said before either you can do it manually or automatically so every time there is a change in the price in your purchase order it will change it automatically in the info record okay so that's the end of the PIR topic but you're the information record now before you go ahead I want you to stop here for a minute and do this assignment so first of all create a PR record for the vendor and customer you wish how would you search and change and delete a PIR okay that's another important question how do you delete delete a VI way okay so let me show you deleting a PIR is also easy you can use any 15 any 15 here okay and here you can take and take this on computing for record and position for the chord shape that means purchase order you cannot reference to this info record okay any 15 is a transaction any 15 is a transaction you can also call it from ME 12 when you change n for record you can go to extra deletion flag it will take you to the same screen and you can do it here okay so once you're done save it done so you can market for donation so just create a here record for a vendor and customers that is this and just see how you can search and change a PR record look especially I want you to consider it on transaction me1 m/m a 1l and how to find that who created a BIA okay how to find that if I want to see that hook into this PIR okay so I'll show you when you open the P record you can go to here go to extra admin data so it will show you that the person named who created and the date so there's a person named here and that's a date

so I can go back back so that's your Pierre okay so within this topic novel start our next topic which is condition okay so all the topics from here now on they are more vertical and less practical so let's start conditions various conditions so condition is nothing is just the price different types of prices that we want to use in our system okay so this prices can be maintained like we just maintained in the info record it can be maintained in the quotation it can be maintained in the agreement okay you can be maintained in the purchase order okay for example I just maintain a price here right condition click on condition so choose so here here we have condition type PP 0 0 which is a gross price or a 0 1 is a discount price okay so we have created two types of condition here one is a gospel one is a discount price ok same way you can maintain some other condition for example within this one you can also maintain some other term there's so many condition here for example this one for fight CFRA one one for fight because of five charges I'll say two percent okay so two percent of price so you can also maintain this fight condition as well fried discount and gross price and you can save it okay so basically you can maintain your your conditions in your info record you can maintain in a quotation and in a purchase order so in a code in that if I show you the quotation Emmy so here's like the item click on this item condition and here last time we maintained the gross price and discount and here also you can maintain the fried there's so many here just select fried so first can we say 3 percent so you can say fart condition already so I can maintain in the quotation quotation will again copy the price to purchase order or I can directly maintain in a purchase order so here see we maintain net price discount and here I can also maintain or we fried as well okay same thing okay so these are the conditions and that you can maintain in say there is everything core agreement will talk about agreement later on but you can maintain for now conditions which is the different prices in quotation purchase order in for records and all that now the point to be noted here is that two types of conditions okay one is time dependent okay so the condition that you maintain in the conference also maintain the contract will talk about contract later on the condition that you maintain in the PIR and content are time dependent for example here if I show you the PIR omit world so remember here we maintain go-to conditions we maintained the time dependent

okay so that's a parent dependent from this time to this time this will be valid okay so you can maintain a time depend on you can say okay it's starting from now but and at the end of this year or end of this month or end of this week okay so they're time dependent so the condition that is maintained in the info record and also in the contract they are time dependent okay so you can specify your time that is starting from today or starting from next year or ending on a particular date okay but the condition in a purchase order is always time independent that means you cannot put in time specific in the purchase order there is no option for that if I open a purchase order so there is a purchase over here so you can see a conditions here so you can see there is no option for a time dependency there is no date field here that means it does not make a sense that a purchase order has a time specific condition because time specific condition we put in those cases where from where we do the copy of the price from purchase order we do not copy the price to anywhere no not at all okay however we copy the price from PIR record even from contract from the contract we can maintain a purchase order form a contract say me like a quotation from a quotation we can maintain a price and we can copy their price to purchase orders so in quotation we can maintain time dependent however and in purchase order is always time independent okay so time dependent and time independent conditions okay so the end of the condition now we'll talk about some another throttle topic which is material valuation

what is material was valuation okay now let me show you here something now in my company okay we have a lot of material okay much here abc123 material number second measure HT 1010 third multi or maybe ABC one two three four five and so on okay now these are the stock materials okay so maybe this is a laptop I'm selling this is a PC this is a laptop bag or something okay so we need to maintain the stock of the material okay and that's just one thing the stock is one thing I've come back to stock in a minute but we need from the finance side of it okay from the finance side or the accounting department side we need to have a valuation of all the material to know our assets okay how much I said with what you know our company so that means we need to know that okay if in my company we have save thousand pieces of this product then what is the value of this product in dollar what is the value okay same for this one same for this one that means from finance side perspective we need to have the metal valuation okay we need to know that how much material we have in our company and what is their value what is the word so what is the company asset assets okay so that's why it is important for the system to maintain the material valuation okay so that's a reason augmenting the material valuation and now we'll understand how the material valuation is done okay module evaluation can be done in now when you say I want to evaluate my material okay so first question will be at which level let's say I want to do the valuation but at which level which level means we have we can choose from two levels either against okay from company code perspective which is a top level okay extreme top level which is a company code level which explained in the second topic so you want to value it from the company code level or or you want to come value it from a plant level that we span number thousand has thousand pieces this much value land number 2,000 has two thousand pieces this much value but other option is company code common economies for all the plants we want to see that okay for all the plants we have ten thousand pieces and this much value so at which level you want to maintain your valuation at which level okay so here you can see here you can see those two levels again so here you can say okay I want to maintain that add here come Unicode level or you can say okay I want to maintain at plant level here the second level is fundable so if you say company code level that means if complete code has say plus number thousand plant number 1,200 so between all the plants 100 pieces are there in plan number thousand two hundred pieces are there in this plant that means we can sorry that means the total stock between both one will be 300 so at company code level we'll be checking the value F for 300 pieces okay so from here we'll be checking the value from 300 pieces but if you if you maintain it from the plant specific level so it plant number thousand we have hundred pieces Brown number two thought one hundred has to two hundred pieces so at this plant we have two metal pieces this much value at this point we have this much pieces this value so here we're just looking at the plant specific or we can say we want to two value from company core levels so communicant level will add all the plants all the stock and total value will be given here it will be divided between all the plants so that's only the difference from which level you want to see okay there's a one thing then there's a thing called Billy Asian class this think of vanishing class what it is when you create a material master if open a material here like we treated this some material master record earlier if you go to the accounting tab one from here you can jump to the accounting that one okay here you can select say valuation class see this evaluation class is seven nine to zero if I open the search button I have to show options here 707 and two five so 7 + 2 0 just select this one for now 7 + 2 0 so what is valuation class okay so valuation class is assigned to every material even if I open a different material say

but I should class here is 3100 okay so this is 3100 because they say trading goods you can see on the top here this metal table is trading wood that material is semi 9 to 0 and that is a finished product they are different types of material ok so the reason for maintaining the volition class that is the sign to every metal is for the finance perspective so when you have a relation class assigned to any material so that will tell them a tether system to wear to post the stock for that material to which account okay because as you know that in in in from one end side they are different types of general ledger account ok gr account or stock account or vendor account or clearing you know there's so many types of account in the finance system so we are not a finance consultant we don't need to worry about that for now but we need to understand what the what is the purpose of the Belizean class here ok so the only purpose of the valuation class that is linked to a material number so that system knows that to which general ledger account I need to post it for example if one Mathilde Mathilde number a has volition class 3000 system knows that I need to post it to generalized account number this which is linked to this volition class 4 second material information class is this three thousand one system knows that I need to post it to this general ledger account because that general ledger account is linked to that class okay so that's the purpose of the volition class so that's why we maintain that classes for all the materials so that system knows that because of this class system has to put the link link to the this this general ledger account okay for the valuation purpose then we will talk about price control of the price control the two types of price control okay so price control is is one is called standard one is called moving average so let me explain this one again so for every material let me close this you can see here every material has voice control okay we here you can see we if I see the search option here its Vivi is moving average okay and that they both are V it can be as as well it can be as as what standard or moving average okay so I will explain you what it is so what we call is price control okay so what price control is we have we have two types of prices one is called standard price second is called basic or s equal to s moving average price which is called V okay so the purpose of this one is for example any business can decide their own that whether they want to maintain a moving average price or whether they want to mend a standard price okay so that means that for example if if I have a material in my company abc123 okay so whenever there is a we issue the material okay that means for production we should have a sale or we receive the material from the vendor okay so what price it should be calculated it should be linked to that means if I have received okay say hundred pieces from a vendor okay so what is the price for hundred pieces because of the because I said from the accounting side of it ASAP we need to have a valuation for every material okay so what is the so what is the dollar value what is the dollar value off hundred pieces okay so it can be either linked to a standard price that means we can maintain a standard price for ABC material that means okay who say that okay ABC has a standard price abc123 has a standard price here stamp is here which is s s and value is equal to dollar say 23 each okay go to $3 okay so that means if this will maintain as a standard PI system for hundred pieces what will the value value will be 100 x for the free context fee that means we have a standard price but we can also say that okay ABC is not maintained as standard price he BC is maintained as moving average price so to explain you it can be a moving average price so what is moving average price okay which is V so moving average price is nothing moving average is saying as the name is saying moving every that means the price is not a fixed price like a standard price it will keep changing it will keep changing when if you we have received a goods from the vendor okay it will refer to the price of the purchase order okay so in this case in this case if I remove this one if I remove this one and we own it and

the moving average pathway in this case it will look for the purchase order price which is our price okay to calculate is moving average price so purchase order price will decide what is my moving average price okay so that means the moving average price will always keep changing depending on the purchase order price okay and also the invoice price but yeas are odd in words okay so it will keep changing from so if you receive goods from the vendor and the price was $22 per piece so here the moving average price will be 22 it will be average again but for now you can say it will be 22 each because of purchase order because my purchase order that was a price okay and depending on the invoice it will also change as per the inverse that I'm going to show in a minute okay so that's a definition of moving average price so in a nutshell the main difference is this is the other one was is a fixed price standard versus a fixed price that is calculated by the finance department however moving average spice will keep changing depending on the purchase order value every time but this will never change this will be calculated and fixed by the purchasing department and enter here so here you can see you can see there is a moving average price okay because because this is V this a moving average price if you maintain ass here then the standard price will be entered here by the finance department okay so finance department maintained all the same price okay but moving average price is calculated automatically okay same here it will be calculate calculate automatically okay so I hope you understand the definition of standard price and moving average price now we'll see some example here

okay so here you can see the same thing again so price control can be as I said before can be that either the moving average price or it can be your s standard price so so that means when you talk about the standard price okay so senpai sister 200 is the standard price okay so if you say if you received a purchase order okay if you see we received a purchase order and the value was say 250 or the in the purchase order for 10 pcs for example okay so in the case of moving average the value from the purchase order will be posted state away because a moving average link to the purchase order but when you talk about the center price the in the standard price system is still post the standard price it will not care that okay is 250 from for 10 pcs for in the from the purchase order it will still pose a standard price and in the gr account it will post the 250 okay and the price difference it will be posting here so main point to be noted here is in the stock occur in the stock account system will always put when it is standard process system will always put the standard price here doesn't care what is the purchase order value okay but here in this case moving out up as it was in the stock account it will August put purchase order price okay but in this case if you put a standard price and put the difference here okay so you can see this that there are the different types of general ledger account and one side is credit other side is debit in this one okay so let's see the same example in more details so let's see the example of a standard price okay standard price which is a constant price okay so suppose we have a material we have 100 pieces in the stock and the standard price is 200 pieces okay and price per piece will be 200 divided by 102 piece okay so that's the stop of the we have there's the value in the of the stock okay now suppose tomorrow we received a purchase order okay and purchase order has 100 pieces of it the same product and 240 to $2 40 was the price okay so in this case what system will do is because it's a standard PI system we'll put the standard price because the standard price was 200 or so system we'll put those 200 price into the stock account but in the gr good a safe clearing account it will put 240 so good a safe is just like menu when doing that Michael okay for the good to safety doing for a purchase order focus in that case in the stock account it will always put the standard price however the actual price it will be putting here in the gr okay and the difference between both will be putting on the expenditure from price difference at all that's another type of generalized account okay so here you can see that the main difference is it's still receiving we receiving a purchase order of dollar 240 okay but system is putting 200 for 10 PC and 400 pieces why because it's still calculating from a standard price here okay stand price here so next we can add another scenario say in the next scenario would is we received the invoice okay and was received okay my oh we're doing the inverse received a third step where the price was change earlier the price was 240 from the purchase order but here they have changed the price they said okay no no the price was wrong before now the new prices to 20 per 100 pieces now what will happen so there's a third step done and as a final step so in this step what will happen is system will put the 240 the same as earlier before in the clearing account but vendor account will be credited with 220 about this price then the final price of the invoice and the price difference between 240 and 220 will be posted to the price difference okay again if you don't have any finance background it might be Cal might be confusing to see all these types of account generalize it account but for us we just need a basic understanding from a CBMM perspective okay we don't return to worry about how the generalized account works and all that okay just a basic understanding so the basic thing is you can see doesn't matter what was the price in the general in the purchase order what was the price in the invoice received system will always post a standard price to the stock account and the difference will be posted in the difference account and the other accounts okay so it will always consider the standard price for the stock account okay now if you want to see the same scenario in the moving average price so that's a moving average space same scenario let's start from my from the beginning we have a this material is maintained with that moving average price that means we do not have we don't care about the standard price we have a V moving average price so so we have a hundred pieces of the stock 200 is a value of the material of the stock and that's a stock account okay now we receives the good received for the purchase order of the same price 100 at 240 so because this is a moving average price of this time you can notice that system will put the in the stock account 240 ok so just building to the 240 to put the 2 for day here because a moving average ok and next it will put so suppose later on you receive the invoice and the invoice for saying no no the right pass is to 20 each so hundred pieces will be to 20 so system will put the difference of $20 into the credit here so debit and credit once art is debate one side is credit so with earlier it put 240 here but it will this time it will put he'll say ok they was $20 difference or $20 difference will put in the debit side of it one side is debit or other side is correct ok and the vendor will be credited with 220 this price of the invoice okay 220 so there's a vendor payment account you can say 20 ok so the point to be noted is the stock accounts are always updated as per the purchase order value or invoice value in the case of V in the case of V so they will be updated update s / P o or invoice okay or invoice and this is standard this is standard price so stock account will always be updated according you to stock account okay so we just need a basic understanding of it don't worry about about all the generalized account how the work and all that okay so next we have is next part is stock type in valuation and guru shipped in the in the warehouse okay so let's see what this is so basically now we'll talk about today we talked about our request for request for quotation we have seen purchase order now we'll talk about good recipt okay some more topics in with in good shape so in the company you can see the stock how do you how do you see the stock okay so there is a transition for M and B but before I show you the stock in the system you can see here that you can see the stock from different levels okay so the top you have a client level client has a compass a client has two company code and each company so H coming code has different two plants and each plant has two sword location okay so either you can look the stock from the storage location so you will see the store location stock is 300 here 600 here but when you see the stock from the plant what is the stock in the plant 1100 so total is 900 300 and 600 900 what is the stock and the company code so it will be 2100 because it's adding here all the plants okay what is a stock a buck client so client will be adding all the company codes and everything which is linked to them directly like plant and store location so depending from which level you see the plant stock okay so let's see this one practically to see a stock here so you can follow the menu part here and mmm inventory management

management Goods movement environment sorry stock MMB okay you can directly type here mm V enter for example you want to see the store for this module escape anthem okay I can enter the plant I can remove a plant execute that it will show you for all the plant if you if you remove the plant from here so here you can see the same thing as I was talking before so basically what's showing you here is so unleash it read stock okay so it's showing you from the plant level you can see there's a path level okay and that's further level down this further level down store location here okay so basically it's showing you let me show you so this material as che Denton is is set up in the different company codes okay so if that's a company code that's company code that's company code the different company codes here okay if I open the first company course a thousand company code so it has plant thousand so it's maintain a thousand plant and that thousand plant has this this must stop okay so under thousand probably can see their one thousand seven pieces company code and under that you have this plant same one thousand seven and that we have store location the same okay if you look at add here at company core 3000 3000 common Accord has this much stock and is coming from the plant 3800 and is coming from the plant from the store location this zero zero one okay and you can add them all to make the full full miss one zero two zero six six which is coming from there's a sum of all the company codes all the company codes that's what I'm showing you here that depends from which level you is looking at the stock if you look at the top from from the top level which is a client level okay client level here 400 client double it will add up all the company code like here from the full which is a client level I can see is adding up all the company code okay if you look at from a plant level that's a part-timer if you look at from a store location level that's my little store location because there's only one store location for this one that's why you can see one they can be more than one store location and the and the store can be maintained under that's so location as well okay so so if you have to show location that will be added for this pant level and plant all the plants will be added for a company code all the company code will be added for a joint okay now we'll talk about when you take goods shipped ok so what happens is whenever we receive the goods for example we there's a purchase order with the vendor okay and suppose we receive that goods from the vendor ok so once we receive the goods from the vendor so either we can we have we can put the incoming stock into three different types first up is unrestricted stop you can see here the number one on the top unrestricted stock that means it's a good stock it's everything is fine it can be used further there is no restriction ok second one is a blocked stock probably you can block a stock because the quality is not good ok or maybe something is broken in the shipping or something ok and we can't use those stock and the third type is quality inspection so quality inspection means whatever we received first our quality Department will check the quality of that of the stock and then it will be used only that means within my company will never use any new received material without the inspection by the quality department so in that case what will happen is we can put the stop here as well ok so whenever you receive the goods you can put the stock in any of this 3 area ok and that is something controlled by a thing called movement type

omerta which is very important part in Sapa mmm consider and a rope consultancy role so movement types this is controlled by moment types okay movement types so for example I recently graded a particular avoid or open that purchase order MB 22n is a tradition for purchase order so that's order we created recently I'll copy that purchase order right for this Michele will cut it and I will do that good is shipped okay so what's the foundation for good is it my go slash and my go enter something I did tell you to tell you are the others when you put slash and standard slash and means if you just by pressing the slash n that means go to the home screen okay and if I'm on a different transaction say any transaction you first directly put MiG oh my go it will not work okay it will not work if I directly onto my go so slash n means go to this home screen and then go to my go okay so here we'll do that good the ship so the good is it from this one the dog down for a purchase order and paste the purchase order number here and execute you can notice here that by default good received moment app is one zero one what is one zero one that's a 1 here 1 0 1 okay so 1 0 1 means even if you open this search box

1:01 means good received for purchase order into warehouse okay so by default is is putting up the right movement type okay let's go the bottom screen so here if you want to received a good you need to say okay stick okay here and say hundred copies copied from the purchase order and hundred oh one is the movement type and see by default is saying stock type is unrestricted so I can change it to quality or block okay so here I can set it the good is hip is in the court inspection I can say unless it it will put the stock in language it ik I can say in the quantity it will put the stock in a quality inspection if I show you the overview screen of the stock here again for this one MMB the one we have just seen so here you can see also that there's an unrestricted stock that's a quality inspection will show you if something is like is in the quality inspection let me show the other materials say if we see one two three so here you can say that I unrestricted for this one this quality inspection is one piece and on order is 220 you just you know the order of the Phenom but for here you can see quantity inspection is this much and it should be this much but that's waiting in that quality inspection so when you receive something you can here change really want to put it if the quantity is no good even directly put to block the quality is okay you can say okay quality inspection okay so called inspection and you can click on check that everything is okay it's saying enter store location or enter the store location here zero zero zero one check now it's showing you the green light all good click on post

done okay so we put the stock in the quality inspection okay if i if i refresh this screen here it was already was one if I click on this refresh button you will see it will add 100 pieces here

see now it's it was 100 before it was one before no it's hundred and one okay 100 just added because we bring new stock into the code inspection okay so that's how you can receive the goods in the quality inspection okay so once the good is received you can receive either as I said in quality inspection or unrestricted or block then later on you can change it you can move it from once one type to other type you can move it from quality to block or quality unrestricted or you to block or switch it to quality that means you can move between all three different types of stock okay for example we have just received the stock now we'll say that my company people will be the quality people will be checking the quality of the goods okay if they're happy we'll put the stock in the unrestricted if they're not happy we'll put the stock in the block stock and it will be further sent back to the vendor okay so for example in this case say in my case I just received a purchase order and I put that in the quant inspection 100 pieces okay now if the now later on we the quality people came back to me and they say ok the goods are well are ok ok the quality is ok so what we need to do is to if the quantity is ok we need to send it to the unrestricted type because if you put the stock in the quality inspection of block no one can use it no one can withdraw from the system ok so we'll talk about the beador things later on but system will not issue those type of stock it will say ok I don't have any stock ok unless you put the stock in the unrestricted so that means we receive the stocked in the received goods in quality stock okay quality inspection record is talk now we are happy with the quality what we need to do is to send it to the um restricted

stock okay so how do this how to how to transfer a stock from one type to another type like here you can say you can transfer from one type to another type how do we do that so that's very easy

before I show you how to transfer that I'll show you another thing which is here so we created this material document number five but we click on that but you locknut is that okay if you want to call this material document you can go to display it will remember the last number press Enter okay so that's a material document okay and you can see this that's in the quality inspection if you go to the here this tab document info and he if you click on the fi document so for the good is saved system will automatically get a find document if I click on that it will show like all accounting documents cured you can see that's accounting document to it and that's another document created which is the finance side of si P okay you can double click on any document it will take you to that document which is linked to so there's a quality document there sorry accounting document okay that is linked to this unique material document number okay if you forget this document number how do you find it you can open the purchase order it will be linked to that one and the purchase of a history you can see what happened to this purchase order and the history you can see there's a material document created you can click on this link it will take you to the material document that's some chill document so now I was saying that now what we need to do is to we have checked the stock now say we are happy with the quality we want to move it to unleash its stock how do we do that so transition code is again my go ok so go to the transaction my go and here select transfer posting

and stacked others okay so make sure you select answer posting and others okay so what we're doing is doing only sending from this area to this area 42 unrestricted okay and here enter the material so what is the Machine you want to use you want to send abc123 abc123 okay and how much quantity you want to send it to go to Croatia for example there maybe we will save hundred pieces right and only 50 has been checked so far so you can send 50 if you want you can send hundred if you want you can say okay I want to send 50 the center okay you can see it's using the party for movin time 3:21 because the create only one is yeah c21 bit from quality inspection to initiate it or if you want to go serve it on unless you do two qualities fashions will be 322 okay so we going from quality to unrestricted 321 so by default showing your 3d one click on the check button saying enter a vendor

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