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RELEASE group is a two-digit code that is assigned with a class and contains ONE or more release strategies. For example, release group 01 is defined for purchase REQUISITIONS and release group 02 is defined for purchase order.

Release group is a two-digit code that is assigned with a class and contains one or more release strategies. For example, release group 01 is defined for purchase requisitions and release group 02 is defined for purchase order.

The RELEASE code is a two-character FIELD or ID that represents the person responsible for the APPROVAL of the release procedure.

The release code is a two-character field or ID that represents the person responsible for the approval of the release procedure.

The release CRITERION defines the strategy with which a purchase requisition or an external purchase document is released. The release criteria contains the characteristics and the values of the characteristics which DETERMINE the status of the document, that is, either blocked or not blocked (a CHARACTERISTIC can be the total value of the document, SAY greater than $100,000). The criterion can be based on any one of the FOLLOWING or a combination of these:
i. Account assignment category
ii. Material group
iii. Plant
iv. Total value

The release criterion defines the strategy with which a purchase requisition or an external purchase document is released. The release criteria contains the characteristics and the values of the characteristics which determine the status of the document, that is, either blocked or not blocked (a characteristic can be the total value of the document, say greater than $100,000). The criterion can be based on any one of the following or a combination of these:
i. Account assignment category
ii. Material group
iii. Plant
iv. Total value

There are two TYPES of release procedures available for PO:

• INDIVIDUAL release: In this TYPE of release procedure, you can release only one item at a time.
• Collective release: In this type of release procedure, you can release all the items at a time but using the release code.

There are two types of release procedures available for PO:

You can release a purchase ORDER at header level. You cannot release a single ITEM in purchase order. You NEED to release all the items at a TIME. The ME29N transaction code is used to display as WELL as reset the release of purchase order.

You can release a purchase order at header level. You cannot release a single item in purchase order. You need to release all the items at a time. The ME29N transaction code is used to display as well as reset the release of purchase order.

There are TWO types of procedures AVAILABLE to RELEASE purchase requisition:

• With classification: In this PROCEDURE, you can release the purchase requisition both at item level and in total.
• Without classification: In this procedure, you can release the purchase requisition only at item level.

There are two types of procedures available to release purchase requisition:

You can USE the ME54N transaction code or purchase requisitions and ME29N transaction code for purchase ORDER to REJECT APPROVALS in SAP R/3. This does not affect the SAP business WORKFLOW.

You can use the ME54N transaction code or purchase requisitions and ME29N transaction code for purchase order to reject approvals in SAP R/3. This does not affect the SAP business workflow.

You can release a BLOCKED purchase document by using your release CODE. This process is CALLED the release transaction. After you have released the document, you can also CANCEL the document using the same release code.

You can release a blocked purchase document by using your release code. This process is called the release transaction. After you have released the document, you can also cancel the document using the same release code.

The transaction codes ME54 and ME29N are USED to DEFINE the release procedures for PR and PO, RESPECTIVELY.

The transaction codes ME54 and ME29N are used to define the release procedures for PR and PO, respectively.

No, you cannot RELEASE the PO item by item. PO can be released at the header LEVEL by USING the with CLASSIFICATION release procedure.

No, you cannot release the PO item by item. PO can be released at the header level by using the with classification release procedure.

The release strategy specifies the release codes with which a PURCHASE DOCUMENT must be released and the sequence in which the release must be used. You can DEFINE a maximum of eight release codes with their RESPECTIVE release strategies. You can involve 8 release points in a release process.

The release strategy specifies the release codes with which a purchase document must be released and the sequence in which the release must be used. You can define a maximum of eight release codes with their respective release strategies. You can involve 8 release points in a release process.

The RELEASE PROCEDURE ALLOWS you to create condition records for the planning process. It is used to creating Purchase Requisitions (PR), Purchase ORDERS (PO), Request for Quotation (RFQ), Outline Agreements, and SERVICE Entry Sheets.

The release procedure allows you to create condition records for the planning process. It is used to creating Purchase Requisitions (PR), Purchase Orders (PO), Request for Quotation (RFQ), Outline Agreements, and Service Entry Sheets.

LIFO is a balance SHEET valuation technique. It stands for last in-first out principle, i.e. the MATERIAL added to the STOCK in last is valuated first. In this technique, the pricing of old material in stock is not affected by the pricing of new material. In this technique, a layer of stock INCREASED or decreased is created for a fiscal year, on the basis of which the valuation is done. For example, if the stock is increased then a layer is created for that stock. HOWEVER, to use the LIFO, you have to configure it.

LIFO is a balance sheet valuation technique. It stands for last in-first out principle, i.e. the material added to the stock in last is valuated first. In this technique, the pricing of old material in stock is not affected by the pricing of new material. In this technique, a layer of stock increased or decreased is created for a fiscal year, on the basis of which the valuation is done. For example, if the stock is increased then a layer is created for that stock. However, to use the LIFO, you have to configure it.

The DIFFERENT types of account ASSIGNMENT categories are:

1. Single account assignment: Specifies one account assignment for an item in the PURCHASE order
2. Multiple account assignment: Allocates the COSTS ASSOCIATED with the purchase order item

The different types of account assignment categories are:

Account assignment category determines the account assignment details that are REQUIRED for the purchase order item, such as cost center or account NUMBER. It is useful in SAP MM as it HELPS in determining the following:
1. The type of account assignment
2. The accounts that will be charged when you post the invoice or goods receipt
3. The account assignment DATA that you should provide

Account assignment category determines the account assignment details that are required for the purchase order item, such as cost center or account number. It is useful in SAP MM as it helps in determining the following:
1. The type of account assignment
2. The accounts that will be charged when you post the invoice or goods receipt
3. The account assignment data that you should provide

Valuation class is a group of DIFFERENT materials that SHARE some common properties. This group is defined so that you do not have to MANAGE a separate account for each MATERIAL.

Valuation class is a group of different materials that share some common properties. This group is defined so that you do not have to manage a separate account for each material.

Valuation area is the organizational LEVEL at which the MATERIAL valuation is CARRIED out.

Valuation area is the organizational level at which the material valuation is carried out.

The FACTORS that control MATERIAL valuation are:
1. SYSTEM settings
2. Material MASTER record

The factors that control material valuation are:
1. System settings
2. Material master record

Material VALUATION in MM module is associated with Financial Accounting as any change in the STOCK VALUE ALSO UPDATES the G/L account in Financial Accounting.

Material valuation in MM module is associated with Financial Accounting as any change in the stock value also updates the G/L account in Financial Accounting.

The STOCK VALUE of the MATERIALS is calculated using the following formula:
Stock value = Stock QUANTITY * Material price.

The stock value of the materials is calculated using the following formula:
Stock value = Stock quantity * Material price.

Material VALUATION in SAP MM module is NECESSARY to determine the stock VALUE of MATERIALS.

Material valuation in SAP MM module is necessary to determine the stock value of materials.

Perform the FOLLOWING steps to create the vendor ACCOUNT group in SAP:
Select Display IMG->Financial Accounting->Account Payable/Receivable->Vendor Accounts-> Master Records-> Preparation of Creating Vendor Master Records->Define Accounts GROUPS with Screen LAYOUT /Define Screen Layout Per Activity.

Perform the following steps to create the vendor account group in SAP:
Select Display IMG->Financial Accounting->Account Payable/Receivable->Vendor Accounts-> Master Records-> Preparation of Creating Vendor Master Records->Define Accounts Groups with Screen Layout /Define Screen Layout Per Activity.

GR-based IV means GOODS Receipt based Invoice VERIFICATION. In this process, each receipt of the INDIVIDUAL goods is invoiced separately.

On the other hand, PO-based IV means Purchase Orders based Invoice Verification. In this process, all the items that are in the purchase order list are arranged and are placed together. It is not TAKEN into consideration whether the item is received in a single delivery or multiple deliveries. After all the items are collected, these items are then posted in the form of one single item.

GR-based IV means Goods Receipt based Invoice Verification. In this process, each receipt of the individual goods is invoiced separately.

On the other hand, PO-based IV means Purchase Orders based Invoice Verification. In this process, all the items that are in the purchase order list are arranged and are placed together. It is not taken into consideration whether the item is received in a single delivery or multiple deliveries. After all the items are collected, these items are then posted in the form of one single item.

The following is the menu PATH to CREATE a document/e-mail notification for your supplier:
Select MATERIAL MANAGEMENT-> Logistics Invoice Verification -> Message Determination.

The following is the menu path to create a document/e-mail notification for your supplier:
Select Material Management-> Logistics Invoice Verification -> Message Determination.

In CASE of invoices posting without a reference, proposed values for the invoice items are not DISPLAYED by the system, because the system does not determine any purchase order items and posted goods receipt for the invoice. As a consequence, INFORMATION related to the accounts changed by the offsetting entry for the vendor line ITEM,is not FOUND in the database of the system.

In case of invoices posting without a reference, proposed values for the invoice items are not displayed by the system, because the system does not determine any purchase order items and posted goods receipt for the invoice. As a consequence, information related to the accounts changed by the offsetting entry for the vendor line item,is not found in the database of the system.

When an INVOICE is BLOCKED, the invoice amount cannot be paid to the vendor. Blocking an invoice also BLOCKS the INDIVIDUAL items. The different ways to BLOCK an invoice are listed as follows:

•  Manual Block
•  Stochastic or Random Block
•  Block due to Amount of an Invoice Item
•  Block due to Variance of an Invoice Item

When an invoice is blocked, the invoice amount cannot be paid to the vendor. Blocking an invoice also blocks the individual items. The different ways to block an invoice are listed as follows:

Invoices can be BLOCKED due to the FOLLOWING REASONS:

•  Variance in the INVOICE item
•  Amount of an invoice item
•  Stochastic BLOCK
•  Manual block

Invoices can be blocked due to the following reasons:

The different types of variances in invoices are listed and described as follows:

•  QUANTITY Variance— If there is a DIFFERENCE between the quantity MENTIONED in the INVOICE and the quantity delivered.
•  Price Variance— If there is a difference between the price mentioned in the invoice and in the purchase order.
•  Quantity and Price Variance—If there are differences in both the quantity and price.
• Order Price Quantity Variance — If there is a difference between the price per ordered quantity, such as $50 per piece is mentioned on the purchase order but the invoice contains $60 per piece.

The different types of variances in invoices are listed and described as follows:

Different ACCOUNTS used in invoicing are as FOLLOWS:

• Vendor accounts
•  Stock accounts
•  GR/IR clearing accounts
•  Tax account
•  Price DIFFERENCES account
•  Cash difference clearing account
•  FREIGHT clearing account

Different accounts used in invoicing are as follows:

Stochastic Blocking is the PROCESS of checking the incoming INVOICES. In this process, blocking of the invoices is done randomly. Invoices with high value have the highest probability to get blocked. It is set for the whole invoice INSTEAD at the item level. When posting of the invoice is done, an R is set in the Payment Block field in the document HEADER data.

Stochastic Blocking is the process of checking the incoming invoices. In this process, blocking of the invoices is done randomly. Invoices with high value have the highest probability to get blocked. It is set for the whole invoice instead at the item level. When posting of the invoice is done, an R is set in the Payment Block field in the document header data.

You can DISPLAY the PARKED documents by USING either FB03 or FBV3. The FB03 transaction CODE DISPLAYS all the posted documents; whereas, the FBV3 code shows only the parked documents that have not been posted to the expenditure balance.

You can display the parked documents by using either FB03 or FBV3. The FB03 transaction code displays all the posted documents; whereas, the FBV3 code shows only the parked documents that have not been posted to the expenditure balance.

The benefit of document parking is that you can modify the INVOICE in a PARKED STATUS whereas the invoice that is placed on hold cannot be MODIFIED.

The benefit of document parking is that you can modify the invoice in a parked status whereas the invoice that is placed on hold cannot be modified.

In SAP, invoice verification is done on the basis of the FOLLOWING:

•  Document date, PURCHASE ORDER number, invoice amount, tax amount, and terms of payment(if required)
•  Purchase order that comprises vendors, terms of payment(if required), currency , and invoice items
•  Purchase order history that comprises quantity and amount
•  R/3 system settings that COMPRISE the rate at which the tax is calculated
•  VENDOR master record that comprises bank information

In SAP, invoice verification is done on the basis of the following:

ERS stands for Evaluated Receipts SETTLEMENT. It refers to the process of settling down receipts of the goods in an automatic MANNER. In this process, an agreement is made between the vendor and the user that VENDORS do not prepare any invoice for the goods ordered. Rather, the system would automatically generate and post the invoice document on the basis of PURCHASE order and receipts of goods. In addition, ERS also offers the following advantages:

•  Using ERS, all the purchasing transactions are quickly closed.
•  Errors of communication are AVOIDED.
•  Invoice verification is not prone to price and quantity variances.

ERS stands for Evaluated Receipts Settlement. It refers to the process of settling down receipts of the goods in an automatic manner. In this process, an agreement is made between the vendor and the user that vendors do not prepare any invoice for the goods ordered. Rather, the system would automatically generate and post the invoice document on the basis of purchase order and receipts of goods. In addition, ERS also offers the following advantages:

Invoice verification is a process of checking the accuracy of an invoice in terms of the quantity, PRICE, and other related information. The invoice can be ISSUED for several processes. For EXAMPLE, if an invoice is issued for a purchase order, then the SYSTEM checks for the relevant information, such as vendor, material, quantity, delivery date, and payments details.

Invoice verification is a process of checking the accuracy of an invoice in terms of the quantity, price, and other related information. The invoice can be issued for several processes. For example, if an invoice is issued for a purchase order, then the system checks for the relevant information, such as vendor, material, quantity, delivery date, and payments details.

An INVOICE is VERIFIED by USING the OLMR T CODE.

An invoice is verified by using the OLMR T code.

The DIFFERENT types of invoice VERIFICATION are as FOLLOWS:

•  Invoices based on purchase orders
•  Invoices based on goods receipts
•  Invoices without an ORDER REFERENCE

The different types of invoice verification are as follows:

Invoice verification is used to store details of VENDOR invoices and FORMS an IMPORTANT part of purchasing and inventory MANAGEMENT. It consists of entering invoices and credit memos, checking ACCURACY of invoices in accordance to price, and checking block invoices.

Invoice verification is used to store details of vendor invoices and forms an important part of purchasing and inventory management. It consists of entering invoices and credit memos, checking accuracy of invoices in accordance to price, and checking block invoices.

The stock available in the company premises to EXECUTE a project is called the project stock. It is allotted to a WORK breakdown STRUCTURE element and is SPECIFIC to the project only. All ACCOUNTING treatment in MM is done for the specific project head.

The stock available in the company premises to execute a project is called the project stock. It is allotted to a work breakdown structure element and is specific to the project only. All accounting treatment in MM is done for the specific project head.

• The stocks assigned to a SALES ORDER but still available in the COMPANY premises is called the sales order STOCK.
•  The raw MATERIAL ordered by the customer for processing a specific order and finished goods are the type of materials that come under the category of sales order stock.

RETURNABLE transport packaging is a medium used to transport GOODS between vendors and customers. Once the goods are received, the returnable packaging is returned to the vendor. The best EXAMPLE is the crate for cold drinks; it NEEDS to be returned back after RECEIVING the cold drinks.

Returnable transport packaging is a medium used to transport goods between vendors and customers. Once the goods are received, the returnable packaging is returned to the vendor. The best example is the crate for cold drinks; it needs to be returned back after receiving the cold drinks.

You NEED to PERFORM the following steps to display the value of the cross-company-code stock in transit:
SELECT ENVIRONMENT-> Stock-> Stock in transit.

You need to perform the following steps to display the value of the cross-company-code stock in transit:
Select Environment-> Stock-> Stock in transit.

Physical inventory is the recording of actual stock levels (QUANTITIES) of MATERIALS by counting, weighing, or measuring at a given STORAGE location at a SPECIFIC time.

Physical inventory is the recording of actual stock levels (quantities) of materials by counting, weighing, or measuring at a given storage location at a specific time.

Stock POSTING is defined as a transaction, which occurs when you update an ITEM quantity in the system, for example, updating the database after GOODS issue or goods RECEIPT.

Stock posting is defined as a transaction, which occurs when you update an item quantity in the system, for example, updating the database after goods issue or goods receipt.

The stock transfer between different COMPANY codes is done in a way similar to that of inter-plant transfer, but DIFFERS in the company code. During the stock transfer PROCESS, two accounting statements are created, ONE for removal of stock from the source company and the other for receiving in the destination company.

The stock transfer between different company codes is done in a way similar to that of inter-plant transfer, but differs in the company code. During the stock transfer process, two accounting statements are created, one for removal of stock from the source company and the other for receiving in the destination company.

The transfer of the stock from one plant to another is a bigger activity as compared to transfers done under the same plant. The material planning as well as accounting details is affected in case of the transfer of goods within a plant. In case of plant to plant transfer, the accounting data of the two stocks is affected if they are assigned to DIFFERENT valuations. In other WORDS, if there are any changes in the VALUE of the stock items from the source plant to the destination plant, the accounting entries need to be ADJUSTED accordingly. In this case, the stock value and G/L accounts need to be updated. The materials planning are also affected, because the stock transfer is SCHEDULED and implemented according to the guidelines in materials planning. The plant to plant stock transfer is done by one-step or the two-step procedure but only the one-step procedure can be planned with a reservation.

The transfer of the stock from one plant to another is a bigger activity as compared to transfers done under the same plant. The material planning as well as accounting details is affected in case of the transfer of goods within a plant. In case of plant to plant transfer, the accounting data of the two stocks is affected if they are assigned to different valuations. In other words, if there are any changes in the value of the stock items from the source plant to the destination plant, the accounting entries need to be adjusted accordingly. In this case, the stock value and G/L accounts need to be updated. The materials planning are also affected, because the stock transfer is scheduled and implemented according to the guidelines in materials planning. The plant to plant stock transfer is done by one-step or the two-step procedure but only the one-step procedure can be planned with a reservation.

The stock transfer from one PLACE of LOCATION to another place of location is carried out in a plant. The posting of this kind of transfer is DONE without entering the value of the stock material as the management of the items is done WITHIN the same plant.

The stock transfer from one place of location to another place of location is carried out in a plant. The posting of this kind of transfer is done without entering the value of the stock material as the management of the items is done within the same plant.

The physical and LOGICAL stock TRANSFERS are collectively called the transfer posting. The stock transfers TYPICALLY change the stock TYPE, BATCH number, or material number. The transfer posting is related to the documentation of the stock changes resulting from a stock transfer.

The physical and logical stock transfers are collectively called the transfer posting. The stock transfers typically change the stock type, batch number, or material number. The transfer posting is related to the documentation of the stock changes resulting from a stock transfer.

A stock transfer can be made physically or logically. In other words, when you MOVE material from one storage location to another it is SAID that the stock transfer is done physically. WHEREAS when you move stock from the quality inspection status to the UNRESTRICTED status, it is said that the stock transfer is done logically. The different ways of stock transfer are as follows:

•  From storage location to storage location
•  From PLANT to plant
•  From company code to company code

A stock transfer can be made physically or logically. In other words, when you move material from one storage location to another it is said that the stock transfer is done physically. Whereas when you move stock from the quality inspection status to the unrestricted status, it is said that the stock transfer is done logically. The different ways of stock transfer are as follows:

The following DOCUMENTS are created when a goods issue is posted:

•  MATERIAL document
•  ACCOUNTING document
•  Goods issue slip
•  Stock changes
•  General LEDGER account changes

The following documents are created when a goods issue is posted: