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A purchase requisition is SAID to be created indirectly when it is initiated through another SAP component, such as consumption-based PLANNING, project system, plant maintenance, and production planning and control. On the other hand, a directly created purchase requisition is the ONE that is manually created through the REQUESTING department. The person concerned has the full control to decide the ITEM, the quantity to be ordered, and the delivery date of the order.

A purchase requisition is said to be created indirectly when it is initiated through another SAP component, such as consumption-based planning, project system, plant maintenance, and production planning and control. On the other hand, a directly created purchase requisition is the one that is manually created through the requesting department. The person concerned has the full control to decide the item, the quantity to be ordered, and the delivery date of the order.

Purchase requisitions (PRs) are INTERNAL documents of an enterprise. These documents are used to request the Purchasing department of the enterpriser to procure a particular material or a service. The quantity of the requested material and the date of the procurement are also SPECIFIED in the PRs. The document types used in PRs are as follows:
1. Request for Quotation (RFQ).
2. Outline Agreement.
3. Purchase ORDER.

Purchase requisitions (PRs) are internal documents of an enterprise. These documents are used to request the Purchasing department of the enterpriser to procure a particular material or a service. The quantity of the requested material and the date of the procurement are also specified in the PRs. The document types used in PRs are as follows:
1. Request for Quotation (RFQ).
2. Outline Agreement.
3. Purchase Order.

The main CRITERIAS of VENDOR EVALUATION are as follows:

•  Price Quality
•  Delivery
•  Service and Support
•  EXTERNAL Service

The main criterias of vendor evaluation are as follows:

Vendor EVALUATION is an important function of the PURCHASE department as it SUPPORTS in optimizing the procurement process by selecting vendors to supply MATERIALS or services.

Vendor evaluation is an important function of the purchase department as it supports in optimizing the procurement process by selecting vendors to supply materials or services.

In case of the purchase requisition with the master record, the SOURCE list, information record, and vendor evaluation are present in the system. In this case, the outline agreements are generated due to the changing of the short-term purchasing into the long-term agreement. As a reason, the purchase order cannot be ISSUED against a purchase order, but only an agreement can be set up. If the material master is not present, then the material is ordered as a consumable item. The account assignment is DONE by specifying the consumption accounts against this acquisition. For example, the purchase information RELATED with this requisition can be assigned to a SPECIFIC cost center.

In case of the purchase requisition with the master record, the source list, information record, and vendor evaluation are present in the system. In this case, the outline agreements are generated due to the changing of the short-term purchasing into the long-term agreement. As a reason, the purchase order cannot be issued against a purchase order, but only an agreement can be set up. If the material master is not present, then the material is ordered as a consumable item. The account assignment is done by specifying the consumption accounts against this acquisition. For example, the purchase information related with this requisition can be assigned to a specific cost center.

To change a PURCHASE requisition after it is issued, the first TASK is to CHECK whether a purchase order against was issued or not. If it is issued, then the purchase groups are informed. Next step is to check whether the purchase requisition is approved or not. If it is approved, then only change to the limited extent is possible. Also if the purchase requisition is created by the MRP, then much less INTERFERENCE in the process is possible. Keeping all these parameters in mind, regarding all the changes that are going to be brought into EFFECT, select the desired item and select Go To-> Statistics ->Changes link.

To change a purchase requisition after it is issued, the first task is to check whether a purchase order against was issued or not. If it is issued, then the purchase groups are informed. Next step is to check whether the purchase requisition is approved or not. If it is approved, then only change to the limited extent is possible. Also if the purchase requisition is created by the MRP, then much less interference in the process is possible. Keeping all these parameters in mind, regarding all the changes that are going to be brought into effect, select the desired item and select Go To-> Statistics ->Changes link.

The steps for the PURCHASE acquisition are as follows:
1. Defining of document type
2. Processing TIME
3. RELEASE Procedure
4. Authorization Check
5. Defining of the NUMBER ranges

The steps for the purchase acquisition are as follows:
1. Defining of document type
2. Processing Time
3. Release Procedure
4. Authorization Check
5. Defining of the number ranges

You can generate a purchase REQUISITION automatically only in case where a MATERIAL is SENT out for external processing, for example subcontracting work. ANOTHER situation where you MAY need to generate a purchase requisition automatically is when the bill of materials is for a material other than a non-stock item.

You can generate a purchase requisition automatically only in case where a material is sent out for external processing, for example subcontracting work. Another situation where you may need to generate a purchase requisition automatically is when the bill of materials is for a material other than a non-stock item.

A STOCK transfer can be monitored in Purchasing by using the FOLLOWING stock documents:

•  Purchase requisition
•  Stock TRANSPORT ORDER (STO)
•  Stock transport scheduling agreement

A stock transfer can be monitored in Purchasing by using the following stock documents:

Stocks can be transferred between plants that belong to different company codes. Such a stock TRANSFER process can be DONE in any of the following ways:

•  One-step plant-to-plant stock transfer
•  Two-steps plant-to-plant stock transfer
•  STO WITHOUT DELIVERY through shipping
•  STO with delivery through shipping

Stocks can be transferred between plants that belong to different company codes. Such a stock transfer process can be done in any of the following ways:

Perform the following steps to create a movement type:
1. Select the STANDARD movement type 201 from the DETERMINE Work Area Entry dialog box.
2. Click the copy icon and then overwrite 201 with Z01.
3. Select the new movement type Z01 from the Determine Work Area Entry dialog box.
4. Select Reversal-> follow-on movement.
5. Enter the reversal movement type.

Perform the following steps to create a movement type:
1. Select the standard movement type 201 from the Determine Work Area Entry dialog box.
2. Click the copy icon and then overwrite 201 with Z01.
3. Select the new movement type Z01 from the Determine Work Area Entry dialog box.
4. Select Reversal-> follow-on movement.
5. Enter the reversal movement type.

OMJJ is the TRANSACTION CODE to create movement TYPES.

OMJJ is the transaction code to create movement types.

Stock transfer is the PHYSICAL movement of goods from ONE store to ANOTHER store or one plant to another plant. Transfer posting is movement of goods from one stock TYPE to another or from one STORAGE location to another storage location within a plant.

Stock transfer is the physical movement of goods from one store to another store or one plant to another plant. Transfer posting is movement of goods from one stock type to another or from one storage location to another storage location within a plant.

The RESERVATION LIST can be DISPLAYED by RUNNING the RM07RESL REPORT.

The reservation list can be displayed by running the RM07RESL report.

The following transaction CODES are used with RESERVATIONS:

•  The MB21 transaction CODE: Creates a reservation
•  The MB22 transaction code: Changes a reservation
•  The MB23 transaction code: Displays a reservation
•  The MB25 transaction code: Displays LISTS of reservations

The following transaction codes are used with reservations:

A reservation is a DOCUMENT that ensures availability of materials in the WAREHOUSE when materials are required for transferring materials to a customer. It contains information, such as which materials are needed, what quantities of materials are required, and when or where the materials are needed. It helps the Material REQUIREMENT Planning (MRP) system to AVOID lack of stock in the warehouse.

A reservation is a document that ensures availability of materials in the warehouse when materials are required for transferring materials to a customer. It contains information, such as which materials are needed, what quantities of materials are required, and when or where the materials are needed. It helps the Material Requirement Planning (MRP) system to avoid lack of stock in the warehouse.

The LOT SIZE is the QUANTITY of materials used for re-ordering. It can be static, periodic, OPTIMUM, or fixed in ATTRIBUTES.

The lot size is the quantity of materials used for re-ordering. It can be static, periodic, optimum, or fixed in attributes.

A subcontract ORDER can be created by performing the following steps:
1. Enter the end-product to be ordered and the ITEM CATEGORY for subcontracting (L) in the order item.
2. Press the Enter KEY to display the screen for component processing.
3. Enter the components required by the vendor to manufacture the end-product.
4. Save the purchase order.

A subcontract order can be created by performing the following steps:
1. Enter the end-product to be ordered and the item category for subcontracting (L) in the order item.
2. Press the Enter key to display the screen for component processing.
3. Enter the components required by the vendor to manufacture the end-product.
4. Save the purchase order.

A DOCUMENT can be manually attached to a PURCHASE order by using the document management SYSTEM in SAP. In CASE when the purchase order is prepared using the T-code ME21N, then no attachment can be added. You need to save the purchase order and re-open with the T-code ME22N. Click the service for OBJECT button, select Service Object Button-> Create-> Create Attachment, and then select the file to be attached.

A document can be manually attached to a purchase order by using the document management system in SAP. In case when the purchase order is prepared using the T-code ME21N, then no attachment can be added. You need to save the purchase order and re-open with the T-code ME22N. Click the service for object button, select Service Object Button-> Create-> Create Attachment, and then select the file to be attached.

The invoice VERIFICATION of subcontracting PO is DONE in the same way as it is done in purchase order.

The invoice verification of subcontracting PO is done in the same way as it is done in purchase order.

The components can be provided by a third party, such as another vendor. In this case, the SUBCONTRACTOR is specified as the delivery address in the purchase order. This implies that the components are directly delivered to the subcontractor. To order components for a SUBCONTRACT order from another vendor, perform the following steps:
1. SELECT Purchase order->Create->Vendor known from the Purchasing menu.
2. Enter the vendor of the components and the desired plant.
3. Enter the components.
4. Select Item->More functions-> Delivery address. A dialog box appears in which the delivery address can be entered.
5. Enter the number of the subcontractor in the Vendor field.
6. Select the SC vendor box. As a result, the components at the goods receipt are posted to the stock of material provided to the vendor.
7. Save the purchase order.

The components can be provided by a third party, such as another vendor. In this case, the subcontractor is specified as the delivery address in the purchase order. This implies that the components are directly delivered to the subcontractor. To order components for a subcontract order from another vendor, perform the following steps:
1. Select Purchase order->Create->Vendor known from the Purchasing menu.
2. Enter the vendor of the components and the desired plant.
3. Enter the components.
4. Select Item->More functions-> Delivery address. A dialog box appears in which the delivery address can be entered.
5. Enter the number of the subcontractor in the Vendor field.
6. Select the SC vendor box. As a result, the components at the goods receipt are posted to the stock of material provided to the vendor.
7. Save the purchase order.

The difference between planned CONSUMPTION and unplanned consumption is that planned consumption is updated if GOODS are WITHDRAWN due to RESERVATION, whereas unplanned consumption is updated, if goods are withdrawn from stock WITHOUT a reservation.

The difference between planned consumption and unplanned consumption is that planned consumption is updated if goods are withdrawn due to reservation, whereas unplanned consumption is updated, if goods are withdrawn from stock without a reservation.

For a cycle-count PROCEDURE, the physical inventory documents are needed, because these are used to RECORD inventory LEVELS of the materials.

For a cycle-count procedure, the physical inventory documents are needed, because these are used to record inventory levels of the materials.

In subcontracting, the end product is ordered by using a subcontract ORDER. The materials or components required by the vendor to manufacture the end product are mentioned in the purchase order. The components are posted to the stock of material provided to vendor in Inventory Management. When the components are supplied to the vendor, the vendor manufactures the end-product and delivers it. At this point, the goods receipt with reference to the subcontract order is posted. The goods receipt also CONTAINS the posting of the consumption of the components from the stock of material provided to vendor. In case the components consumed by the vendor are more or less than that SPECIFIED in the purchase order, an ADJUSTMENT NEEDS to be posted to correct the consumption of components.

In subcontracting, the end product is ordered by using a subcontract order. The materials or components required by the vendor to manufacture the end product are mentioned in the purchase order. The components are posted to the stock of material provided to vendor in Inventory Management. When the components are supplied to the vendor, the vendor manufactures the end-product and delivers it. At this point, the goods receipt with reference to the subcontract order is posted. The goods receipt also contains the posting of the consumption of the components from the stock of material provided to vendor. In case the components consumed by the vendor are more or less than that specified in the purchase order, an adjustment needs to be posted to correct the consumption of components.

The stocks of material PROVIDED to VENDOR can be viewed by using the SC Stock Monitoring for Vendor report. The report can be accessed by selecting Purchase Order->REPORTING->SC stocks PER vendor from the menu. With this report, the current status of the stocks, the planned ISSUES, and the planned receipts can be viewed.

The stocks of material provided to vendor can be viewed by using the SC Stock Monitoring for Vendor report. The report can be accessed by selecting Purchase Order->Reporting->SC stocks per vendor from the menu. With this report, the current status of the stocks, the planned issues, and the planned receipts can be viewed.

You can do the invoicing of CONSIGNMENT STOCKS by PERFORMING EITHER of the following:

•  Invoicing with PURCHASE order
•  Invoicing without purchase order

You can do the invoicing of consignment stocks by performing either of the following:

You can take consignment STOCKS from the vendor into your own stock by performing the following steps:
1. Select Goods MOVEMENT->TRANSFER POSTING to display the initial screen.
2. Enter the plant name and the location where you want to store the materials.
3. Select Movement type->Transfer posting->Consignment->Consignment to own.
4. Select Continue to display the collective entry screen.
5. Enter the name of the vendor, the materials, and the quantity of materials.
6. Enter the receiving storage location if you want to store the materials in another storage location.
7. Post the document. This makes the vendor liable to change the storage location of the materials.

You can take consignment stocks from the vendor into your own stock by performing the following steps:
1. Select Goods movement->Transfer posting to display the initial screen.
2. Enter the plant name and the location where you want to store the materials.
3. Select Movement type->Transfer posting->Consignment->Consignment to own.
4. Select Continue to display the collective entry screen.
5. Enter the name of the vendor, the materials, and the quantity of materials.
6. Enter the receiving storage location if you want to store the materials in another storage location.
7. Post the document. This makes the vendor liable to change the storage location of the materials.

The CONSIGNMENT MATERIAL is procured through purchase REQUISITIONS, purchase orders, and OUTLINE AGREEMENTS.

The consignment material is procured through purchase requisitions, purchase orders, and outline agreements.

CONSIGNMENT cycle is much more similar to the purchase cycle EXCEPT that when you create goods receipts of the consignment stocks, only QTY (quantity) is updated without creating any accounting documents. Once the goods are utilized, consignment is settled. The value of the consumed or issued consignment stocks is USED from the ACTIVE purchase info record.

Consignment cycle is much more similar to the purchase cycle except that when you create goods receipts of the consignment stocks, only QTY (quantity) is updated without creating any accounting documents. Once the goods are utilized, consignment is settled. The value of the consumed or issued consignment stocks is used from the active purchase info record.

The consignment stocks are created in the NORMAL PURCHASE ORDER or requisition, but the main thing to consider is that the K category is to be entered for the consignment item. As a result, the goods issued are posted to the consignment stores and the invoice receipt is not GENERATED.

The consignment stocks are created in the normal purchase order or requisition, but the main thing to consider is that the K category is to be entered for the consignment item. As a result, the goods issued are posted to the consignment stores and the invoice receipt is not generated.

Negative STOCK is needed in an organization when a MATERIAL is shipped to a CUSTOMER and the production is not confirmed or there is not enough stock to satisfy the REQUIREMENT. The system allows issuing the material and inventory SHOWS a negative quantity of stock, until the product of material is confirmed.

Negative stock is needed in an organization when a material is shipped to a customer and the production is not confirmed or there is not enough stock to satisfy the requirement. The system allows issuing the material and inventory shows a negative quantity of stock, until the product of material is confirmed.

A one-time VENDOR is the vendor who rarely or only once supplies the MATERIALS or articles to your company. For such vendors, you do not need to create a separate master record because the master records have no use after the business transaction is COMPLETED. Therefore, you can COLLECTIVELY create a master record for all the one-time vendors.

A one-time vendor is the vendor who rarely or only once supplies the materials or articles to your company. For such vendors, you do not need to create a separate master record because the master records have no use after the business transaction is completed. Therefore, you can collectively create a master record for all the one-time vendors.

The vendor sub-range is defined as a subdivision of the TOTAL range of products PROVIDED by a vendor. Vendor sub-ranges are REQUIRED when you create or MAINTAIN Material Master data.

The vendor sub-range is defined as a subdivision of the total range of products provided by a vendor. Vendor sub-ranges are required when you create or maintain Material Master data.

You can CONFIGURE the purchasing value key by performing the following steps:
1. Open the SAP implementation guide.
2. Click Materials Management->Purchasing->Material Master->Define Purchasing Value Keys.
This OPENS the Change View "default Values: Material Master": Overview page.
3. Enter the New Entries BUTTON. This opens the New Entries: Details of Added Entries page.
4. Enter the appropriate values in the fields.
5. Click the Save button on the toolbar.

You can configure the purchasing value key by performing the following steps:
1. Open the SAP implementation guide.
2. Click Materials Management->Purchasing->Material Master->Define Purchasing Value Keys.
This opens the Change View "default Values: Material Master": Overview page.
3. Enter the New Entries button. This opens the New Entries: Details of Added Entries page.
4. Enter the appropriate values in the fields.
5. Click the Save button on the toolbar.

It is the key, which determines the FOLLOWING:

•  REMINDER KEYS— Keys that help determine the number of the days before or after the vendor has to be reminded for the material procurement
•  Under delivery tolerance LIMIT & Over delivery tolerance limit
•  Order acknowledgement requirements in purchase order

It is the key, which determines the following:

MM03 is the TRANSACTION CODE to DISPLAY MATERIAL of SAP MM.

MM03 is the transaction code to display material of SAP MM.

You can use either of the two ways to move DATA from one SAP system to ANOTHER.
1. USING direct input
2. Using Application Link Enabling (ALE)

You can use either of the two ways to move data from one SAP system to another.
1. Using direct input
2. Using Application Link Enabling (ALE)

You can access the ADDITIONAL data screen in a material master record from any VIEW by SELECTING additional data in the standard material master.

You can access the additional data screen in a material master record from any view by selecting additional data in the standard material master.

The material that is maintained on the basis of the QUANTITY rather than its value is CALLED the NON- valuated material. The non-valuated material can only be withdrawn from the stores or warehouses only when it is transferred to "valuated" STOCK.

The material that is maintained on the basis of the quantity rather than its value is called the non- valuated material. The non-valuated material can only be withdrawn from the stores or warehouses only when it is transferred to "valuated" stock.

The MAJOR PURCHASING TABLES ALONG with their T-codes are as FOLLOWS:

The major purchasing tables along with their T-codes are as follows:

The key fields of the material master table are material groups, material status, divisions, storage CONDITIONS, labs and OFFICES, basic MATERIALS, container requirements, MEASURE groups, container requirements, and temperature.

The key fields of the material master table are material groups, material status, divisions, storage conditions, labs and offices, basic materials, container requirements, measure groups, container requirements, and temperature.

USUALLY, the raw MATERIALS cannot be included in the SALES view. HOWEVER, the raw materials can be included in the sales view only when they are sold to procure finished products in RETURN.

Usually, the raw materials cannot be included in the sales view. However, the raw materials can be included in the sales view only when they are sold to procure finished products in return.

A CLASS is a collection of the group of the characteristics for a PARTICULAR OBJECT. You need to enter the class NAME and a description for it and then select the group. After saving the details, the class is created. Alternatively, you can USE CL01 T-code for this purpose.

A class is a collection of the group of the characteristics for a particular object. You need to enter the class name and a description for it and then select the group. After saving the details, the class is created. Alternatively, you can use CL01 T-code for this purpose.

The CHARACTERISTICS are the properties that describe the length, COLOR, and other related features of an object. Perform the following steps to change the characteristics of an object:
Select SAP MENU->Gross App. Components->Classification System->MASTER Data->Characteristics
ALTERNATIVELY, the CT04 transaction code is used to change the characteristics.

The characteristics are the properties that describe the length, color, and other related features of an object. Perform the following steps to change the characteristics of an object:
Select SAP Menu->Gross App. Components->Classification System->Master Data->Characteristics
Alternatively, the CT04 transaction code is used to change the characteristics.

You can create a PROFILE by following these steps:
1. SELECT Profile -» MRP Profile from the Menu screen to display the Initial Create Profile screen.
2. Enter the value in the key file that you want to assign in the profile.
3. Select Goto -> Selection to display the Selection screen.
4. Enter a profile description and select the fields that you want to include in the profile.
5. Select Goto -> Data to display the Data screen.
6. Enter your data in the Data screen and save the profile by SELECTING Profile -> Save.

You can create a profile by following these steps:
1. Select Profile -» MRP Profile from the Menu screen to display the Initial Create Profile screen.
2. Enter the value in the key file that you want to assign in the profile.
3. Select Goto -> Selection to display the Selection screen.
4. Enter a profile description and select the fields that you want to include in the profile.
5. Select Goto -> Data to display the Data screen.
6. Enter your data in the Data screen and save the profile by selecting Profile -> Save.

You can SET USER defaults for VIEWS by selecting Defaults->Views.

You can set user defaults for views by selecting Defaults->Views.

YES, we can CHANGE the MATERIAL TYPE of a material.

Yes, we can change the material type of a material.

The FOLLOWING is the menu PATH to define material type ATTRIBUTES:
Select Logistics Master Data: Material Master -> Material -> Control data -> Define material type attributes.

The following is the menu path to define material type attributes:
Select Logistics Master Data: Material Master -> Material -> Control data -> Define material type attributes.

Click the F4 key to select the material type for a material that you WANT to create. For EXAMPLE, the material type FHMI is USED for Prod. Resources/tools, the material type ROH is used for raw materials, and FERT is used for finished product.

Click the F4 key to select the material type for a material that you want to create. For example, the material type FHMI is used for Prod. Resources/tools, the material type ROH is used for raw materials, and FERT is used for finished product.

MOS2 is the TRANSACTION CODE to CREATE a MATERIAL TYPE.

MOS2 is the transaction code to create a material type.