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Valuation Type is an INDIVIDUAL characteristic of any valuation category. In SAP MM, Split Valuation can be described into three scenarios:

• By PROCUREMENT type
• By Country of Origin
• By Quality

In SAP MM, the Accounting entries are those who have been GENERATED for every financial transaction posted by the organization based on the CUSTOMIZATIONS. These entries GET posted into an FI module when the users save any transaction or POST it in the SYSTEM.

In SAP, particular stocks are those which are MANAGED separately due to their non-existence in the organization or being STORED at a specific LOCATION. Individual Stocks in SAP are DIVIDED into the following areas:

• Subcontracting
• Stock transfer using stock transport order
• Third-party processing
• Pipeline handling
• Returnable transport packaging
• Project stock
• Consignment
• Sales order stock

In SAP, a MIRO entry stands for Movement in Receipt Out deals. It is used within invoice verification activities for bills that are raised from the vendor end. It is booked by the finance department in an organization’s SAP.

Here is a DETAILED step by step procedure to help you in the creation of a Vendor Master Data in SAP MM:

• Start by entering the T-CODE XK01 in the SAP command field and press enter.

• Now, UPDATE the Company Code, Purchasing Organization, and the Account Group fields.

• Create and update the Vendor Address Screen

• Now, update the vendor control information

• Update the Vendor Bank Details

• Go to the Create Vendor: Account Information Accounting and set up the Vendor Reconciliation and Cash Management Group Fields

• Finally, click on the SAVE ICON for saving the configuration records for the Vendor Master Data.

Here are some of the ESSENTIAL benefits of Material Management in SAP:

• An overall reduction in the cost of operations.
• You are minimizing INVENTORY LOSSES by eradicating unnecessary or obsolete material.
• Fully automated material management in addition to procurement activities, which in turn lead to a FASTER, EFFICIENT, and seamless process.

Here are the steps to successfully complete a subcontracting process in SAP MM:

Step 1: Creating a subcontracting Info record; T CODE – ME11
Step 2: Creating a subcontracting PO with an item category; L – T Code –  ME21N —>

• Enter Item Category L
• Material, PO Quantity, Delivery Date, NET Price, Plant
• Click on the Item Details
• GO to Tab Material Data
• Now, in Components, select Explode BOM
• Click on the Components button
• Enter the sub-components
• Finally, go back & Save.

Step 3: Create a Transfer Posting with the Movement Type 541 for issuing sub-components into the vendor T Code -ME2O/ MIGO.

Step 4: Make a Goods Receipt for the finished product – T Code -MIGO

Step 5: Lastly, create an INVOICE Receipt for the services performed – T Code – MIRO

In SAP MM, OBYC BASICALLY means Configure Automatic Postings. When a user enters a transaction for Inventory Management and INVOICE Verification, it is automatically updated in the Financial and CONTROLLING documents WITHIN the respective modules via G/L accounts.

The essential COMPONENTS of an SAP MM are as FOLLOWS:

• Determining the Requirements
• Determination of Source
• Selection of Vendor
• Processing Orders
• Follow-Up of Orders
• Goods Receipts
• Inventory Management
• Invoicing VERIFICATION