ENTERPRICE STRUCTURE QUESTIONS

 WHAT IS A CLIENT ?
A self-contained unit in the SAP system with separate master records and its own set of
tables.
OR
company is an organizational unit in Accounting which represents a business organization
according to the requirements of commercial law in a particular country.

 WHAT IS A COMPANY CODE?

OX02— It is called the smallest organizational unit. You can create an independent set of
accounts for this unit for the purpose of external reporting.

 HOW TO CREATE A COMPANY CODE IN SAP?

In SAP, the company code is created using the transaction OX02. The company code
field is defined as a four-character alphanumeric string.

or

IMG -> Click Enterprise Structure -> Definition -> Financial Accounting -> Edit, Copy,
Delete, Check Company Code.

 HOW CAN YOU ASSIGN A COMPANY CODE TO A COMPANY IN SAP?

Click Enterprise Structure -> Assignment -> Financial Accounting-> Assign company
code to company -> The Change View “Assign Company Code -> Company”:
Overview screen appears where you can assign a company code to a company

 WHAT IS PLANT ?
The definition of plant depend upon its use. From MM view a plant can be defined as
location to hold stocks
And from PP view it is a place where production takes place

 HOW IS A PLANT DEFINED IN MM?

You can define a plant in MM by performing the following steps:

Select IMG -> Enterprise Structure -> Definition -> Logistic - General _> Define, copy,
delete, check plant. -> CLICK New entries
  WHAT IS THE MENU PATH TO ASSIGN A PLANT TO A COMPANY CODE?

You can assign a plant to a company code by navigating the following menu path:
Select SAP Menu -> Display IMG -> Enterprise Structure -> Assignment -> Logistics-
General -> Assign plant to company code

 HOW MANY COMPANY CODES CAN BE ASSIGNED TO A PLANT?

You can assign only one company code to a plant.

 WHAT IS VALUATION LEVEL IN SAP?

Valuation level specifies the material stocks to be valuated at plant level or company
code level.

If valuation area is plant, then the material price is unique at plant level 

i.e. material price may differ from plant to plant.

If the valuation area is company code, than the material price will be unique at company
code level

i.e. material price will be same for all plants under one company code but the material
price may differ in other company code.

 WHAT ARE THE PREREQUISITES FOR CREATING A PLANT?

There are three prerequisites that are required for creating a plant. These are as
follows:
Factory Calendar — Comprises workdays, public holidays, and company holidays.
Every SAP system is provided with a company calendar that can be modified per the
schedule of the company.
Country Key — Helps in defining a plant. It always comes along with the system, but
you need to configure it in case it is not available with the system.
Region Keys — Refers to a state or province that is associated with the country. It is
required along with the country key.
 DEFINE STORAGE LOCATION IN SAP ?.
In SAP system, a storage location is the place where you can store your stock of
goods, within the premises of a plant. Each plant has at least one storage location
assigned to it.
 HOW WILL YOU DEFINE A STORAGE LOCATION?
A storage location is defined by performing the following steps:
Select Tools -> Customizing -> Select Enterprise Structure -> Definition -> Materials
Management -> Maintain storage.

 CAN STORAGE LOCATIONS BE CREATED AUTOMATICALLY, HOW CAN THEY BE

CREATED AUTOMATICALLY?
Storage locations can be created automatically when an inward goods movement
for a material is performed. In order to create a storage location automatically, open
the Sap implementation guide and then follow this path:
Materials Management -> Inventory Management and Physical Inventory ->Goods
Receipt -> Create Storage Location Automatically.

 EXPLAIN STEPS IN PROCUREMENT LIFECYCLE?

Requirement and Information Gathering

Procurement process starts with gathering information about product and its
quantity. Then for required products and services, it is necessary to look for suppliers
who can satisfy the requirements.
Supplier Contact
After gathering requirements one will look for the suppliers who can fulfill the
requirements. Based on that quotation request or information request can be made to
suppliers or direct contact can be made with them.
Background Review

Once the supplier is known product/service quality is checked, and any necessities for
services such as installation, warranty and its maintenance are investigated. Some
samples of the products can be obtained for quality examination.
Negotiation

Some negotiations with suppliers is made regarding price, availability and delivery
schedule of the products/services. After this a contract is signed that is a binding legal
document between supplier and ordering party. A contract will include all necessary
information like price and quantity of material, delivery date, etc.
Order fulfillment
 Ordered material will be shipped, delivered to the ordering party and supplier is paid
accordingly. Training and Installation of product or services may also be included.
Consumption, Maintenance and Disposal

As the products/service is consumed the performance of the products or services is

evaluated and any follow up service support if required is analyzed.

MATERIAL MASTER
MATERIAL MASTER T-CODE

MM01-----------------CREATE MATERIAL (For Immediate Activation / use)

MM02---------------- CHANGE MATERIAL MASTER
MM03---------------- DISPLAY MATERIAL MASTER
MM04---------------- DISPLAY CHANGES TO MATERIAL MASTER
MM06-----------------FLAG MATERIAL FOR DELETION
MM11-----------------SCHEDULE CREATION OF MATERIAL (for future-dated activation)
MM12---------------- SCHEDULE CHANGING OF MATERIAL
MM13-----------------ACTIVATE PLANNED CHANGES
MM14-----------------DISPLAY PLANNED CHANGES
MM60---------------- CREATE / DISPLAY LIST OF MATERIAL
MMSC---------------- EXTEND STORAGE LOCATION IN THE SAME PLANT
MMPV----------------CLOSE PERIOD FOR MATERIAL MASTER RECORD
MR21----------------- CHANGE VALUATION PRICE FOR CURRENT DATE

VENDOR MASTER
VENDOR MASTER T-CODE

XK01--------------------------CREATION OF VENDOR MASTER

XK02--------------------------CHANGE VENDOR MASTER
XK03--------------------------DISPLAY VENDOR MASTER
XK04--------------------------DISPLAY CHANGES TO VENDOR
XK05--------------------------BLOCK / UNBLOCK VENDOR
XK06--------------------------FLAG VENDOR FOR DELETION
XK07--------------------------CHANGE VENDOR ACCOUNT GROUP
MKVZ-------------------------CREATE / DISPLAY LIST OF VENDORS
 INFO RECORD
INFO RECORD T-CODE

ME11---------------------- CREATION OF PURCHASING INFO RECORD

ME12---------------------- CHANGE INFO RECORD
ME13---------------------- DISPLAY INFO RECORD
ME14---------------------- CHANGES TO PURCHASING INFO RECORD
ME15---------------------- FLAG FOR DELETION
ME1L--------------DISPLAY LIST OF PURCHASING INFO RECORDS(BY VENDOR)
ME1M------------ DISPLAY LIST OF PURCHASING INFO RECORDS(BY MATERIAL)

SOURCE LIST
SOURCE LIST T-CODE

ME01---------------MAINTAIN SOURCE LIST (CREATE & CHANGE IS THE SAME T-CODE)

ME03---------------DISPLAY SOURCE LIST
ME04---------------DISPLAY CHANGES TO SOURCE LIST
ME05---------------GENERATE SOURCE LIST
ME0M--------------CREATE / DISPLAY LIST OF SOURCE LIST

QUOTA ARRANGEMENT
QUOTA ARRANGEMENT T-CODE

MEQ1---------------QUOTA ARRANGEMENT(CREATE & CHANGE IS THE SAME T-CODE)

MEQ3-------------- DISPLAY QUOTA ARRANGEMENT
MEQ4-----------DISPLAY CHANGES TO QUOTA ARRANGEMENT
MEQM------------- DISPLAY QUOTA ARRANGEMENT FOR MATERIAL

PURCHASE REQUISITION
PURCHASE REQUISITION T-CODE

ME51N---------------CREATION OF PURCHASE REQUISITION

ME52N---------------CHANGE PURCHASE REQUISITION
ME53N---------------DISPLAY PURCHASE REQUISITION
ME5A-----------------CREATE / DISPLAY LIST OF PURCH REQ
 RFQ
RFQ T-CODE
ME41------------ Creation of RFQ document
ME42------------ Change RFQ
ME43------------ Display RFQ
ME44-------------Maintain RFQ Supplement
ME45-------------Release / Approve RFQ
ME9A------------ Send RFQ to Vendor
ME4M-------------- Create / Display list of RFQ documents by material
ME4L--------------- Create / Display list of RFQ documents by vendor

QUOTATION
ME47---------- Maintain Quotation (Create & change is the same T-Code)
ME48------------ Display Quotation
ME49------------ Comparison of Quotations

PURCHASE ORDER
PURCHASE ORDER T-CODE

ME21N Creation of Purchase Order

ME22N Change Purchase Orde
ME23N Display Purchase Order
ME24N Maintain Purch Order Supplement
ME29N Release / Approve Purchase Order document- Single Document
approval
ME28M Release / Approve Purchase Order document- MULTI Document
approval
ME9F Send Purchase Order to Vendor
ME2M Create / Display list of Purchase Order documents - by Material
ME2L Create / Display list of Purchase Order documents - by VENDOR
ME57 Assign Vendor to the Purchase Requisition items
ME59N Convert the Purchase Requisition document to Purchase Order
 QUANTITY CONTRACT
ME31K---------- CREATION OF CONTRACT DOCUMENT (IS THE SAME FOR BOTH
QUANTITY AND VALUE CONTRACTS)

ME32K-----------CHANGE

ME33K------------DISPLAY

ME34K------------MAINTAIN CONTRACT SUPPLEMENT

ME35K------------RELEASE / APPROVE CONTRACT

ME9K--------------SEND CONTRACT TO VENDOR

SCHEDULLING CONTRACT
ME31L---------- CREATION OF CONTRACT DOCUMENT (IS THE SAME FOR BOTH
QUANTITY AND VALUE CONTRACTS)

ME32L-----------CHANGE

ME33L------------DISPLAY

ME34L------------MAINTAIN CONTRACT SUPPLEMENT

ME35L------------RELEASE / APPROVE CONTRACT

ME9L--------------SEND CONTRACT TO VENDOR

ME38--------------MAINTAIN SCHEDULE AGREEMENT SCHEDULE

INVENTORY ------MIGO
A01 ------GOODS RECEIPT---------101—GOODS RECEIPT FOR PURCHASE ORDER IN TO
STORES

A01----GOODS RECEIPT---R10 OTHER---561---FOR STOCK UPDATE

A02 ------RETURN DELIVERY---------122—RETURN GOODS TO VENDOR

A03------CANCELLATION
A04------DISPLAY

A07------GOODS ISSUE---------201---CONSUMPTION FOR COST CENTER FROM WARE HOUSE

A08-----TRANSFER POSTING----------301 TRANSFER POSTING FROM PLANT TO PLANT

303,305 REMOVE AND RECIVE FROM PLANT TO PLANT

-------- 311 TRANSFER POSTING STORAGE LOCATION

313 AND 315 REMOVE AND RECIVE FROM STORAGE LOCATION

--------321 TRANSFER POSTING QI TO UNRESTRICTED

322 UNRESTRICTED STOCK TO QUALITY INSPECTION STOCK

343 BLOCKED STOCK TO UNRESTRICTED STOCK
344 UNRESTRICTED STOCK TO BLOCKED STOCK
349 BLOCKED STOCK TO QUALITY INSPECTION STOCK
---------350 TRANSFER POSTING QUANTITY INSPECTION(QI)
TO BLOCKED

MB03------------------------------ DISPLAY MATERIAL DOCUMENT & ACCOUNTING DOCUMENT

MMBE ------------------------------CHECKING THE MATERIAL STOCK STATUS

Movement Type: 101 is used for Goods Receipt against Purchase Order.

Movement Type: 102 is Reversal of Material Document created with Movement type: 101.

Movement Type: 122 is used to Return goods to Vendor.

Movement Type: 123 is used when movement 122 document is cancelled.

Movement Type: 161 is used when you return goods to vendor against a Purchase Order for
unknown reasons.

Movement Type: 162 is used when movement 161 document is cancelled.

Movement Type: 201 is used to do Goods Issue against Cost Center.

Movement Type: 202 is used when movement 201 document is cancelled.

Movement Type: 221 is used to do Goods Issue against Projects.

Movement Type: 222 is used when movement 221 document is cancelled.

Movement Type: 261 is used to do Goods Issue against Order.

Movement Type: 262 is used when movement 261 document is cancelled.

Movement Type: 311 is used to do Transfer Posting between Storage Locations in One Step.

Movement Type: 312 is used when movement 311 document is cancelled.

Movement Type: 321 is used to Transfer Goods From Quality to UnRestricted Stock.

Movement Type: 322 is used to Transfer Goods From UnRestricted Stock to Quality.

Movement Type: 343 is used to Transfer Goods From Blocked to UnRestricted Stock.

Movement Type: 344 is used to Transfer Goods From UnRestricted Stock to Blocked.

Movement Type: 349 is used to Transfer Goods From Blocked to Quality Stock.

Movement Type: 350 is used to Transfer Goods From Quality Stock to Blocked.

Movement Type: 411 is used to do Transfer Own Stock to Own.

Movement Type: 412 is used when movement 411 document is cancelled.

Movement Type: 501 is used to do Goods Receipt without Purchase Order.

Movement Type: 502 is used when movement 501 document is cancelled.

Movement Type: 511 is used to do Free of Charge Goods Receipt.

Movement Type: 512 is used when movement 511 document is cancelled.

Movement Type: 551 is used to do Goods Issue for Scrapping.

Movement Type: 552 is used when movement 551 document is cancelled.

Movement Type: 561 is used for initial entry of stock (e.g., in SAP implementation project).

Movement Type: 562 is used for reversal of initial entry of stock.

Movement Type: 601 is used to do Goods Issue against Delivery.

Movement Type: 602 is used when movement 601 document is cancelled.

Movement Type: 641 is used to Transfer Goods to Stock in Transit.

Movement Type: 642 is used when movement 642 document is cancelled.

Movement Type: 651 is used For Return Delivery of Goods

Movement Type: 652 is used when movement 651 document is cancelled.

Movement Type: 701 is used to do Goods Receipt against Physical Inventory in Unrestricted.

Movement Type: 702 is used to do Goods Issue against Physical Inventory in Unrestricted.

Movement Type: 703 is used to do Goods Receipt against Physical Inventory in Quality
Inspection.

Movement Type: 704 is used to do Goods Issue against Physical Inventory in Quality Inspection.

Movement Type: 707 is used to do Goods Receipt against Physical Inventory in Blocked Stock.

Movement Type: 708 is used to do Goods Issue against Physical Inventory in Blocked Stock.

CREATION OF COST CENTER KS01

A07------GOODS ISSUE------------201---CONSUMPTION for cost center from warehouse

RESERVATION
Mb21--------------------create reservation

Mb22--------------------change

Mb23--------------------display

PHYSICAL INVENTORY DOCUMENT

PHYSICAL INVENTORY T CODE

MI01---------------------CREATE PHYSICAL INVENTORY

MI02---------------------CHANGE PHYSICAL INVENTORY

MI03---------------------DISPLAY PHYSICAL INVENTORY

 MI21---------------------PRINT THE PHYSICAL INVENTORY DOCUMENT

MI04-------------------- ENTERING THE INVENTORY COUNT

MI05-------------------- CHANGING THE ENTERED INVENTORY COUNT

MI06-------------------- DISPLAYING THE ENTERED INVENTORY COUNT

MI20-------------------- CREATION OF THE DIFFERENCE LIST

MI11----------------------ENTER RECOUNT

MI07--------------------- POSTING THE DIFFERENCES IN INVENTORY COUNT

SPECIAL PROCUREMENT PROCESSES

SUBCONTRACTING PROCESS
As briefly explained above, the subcontracting process is used in situations where a part of the process is outsourced to a
third-party or outside vendor for manufacturing / producing the finished good needed by the company

CONSULTENT ACTIVITY
{it is used to create BOM}
Img –> material management -> consumption based planning -> plant parameters -> carry
out overall maintenance of plant parameter -> from plant(1000)-to plant(you created)
-> copy it

 See the material attribute for FERT and update the quantity material to the selected
plant

END USER ACTIVITY

1. CREATION OF ‘FINISHED GOODS’ TYPE MATERIAL

Enter the transaction code ‘MM01 & Select ‘Industry Sector’ and ‘Material Type as MECHANICAL
ENGINEERING and FERT

Select mrp 1,2,3,4

In Mrp 1 -> mrp procedure -> mrp type (select ND no planing)

In Mrp 2 -> procurement type(select –F-external procurement)
-> special procurement (select 30-sub contracting)
In Mrp 3 -> availability check(select kp-nocheck)

2 creation of ‘raw materials 1 and 2’

3 stock update FOR RAWMATERIAL 1& 2 using MIGO with A01 561

A01----GOODS RECEIPT---R10 OTHER---561---FOR STOCK UPDATE

4 create a VENDOR FOR SUB CONTRACT or USE AN EXISTING ONE

5 create INFO RECORD FOR SUB CONTRACTING PROCESS( IN MATERIAL TYPE FINISHED
PRODUCT NUMBER)-------and in INFO CATEGORY select SUBCONTRACT

6 create bill of material (CS01) ENTER THE FINISHED PRODUCT THE PLANT and BOM
USAGE(SELECT-3-UNIVERSAL)

 and in VALID FROM enter a date that is atleast 7 days before current date
 now write the RAw MATERIAL 1& 2 in COMPONENT and in QUANTITY write the
amount of raw material used
 In ICT(ITEM CATEGORY) select L- STOCK ITEM

7 Create PURCHASE ORDER (PO) for FINISHED PRODUCT select VENDOR, L-subcontracting
for ITEM CATEGORY –I, QUANTITY release the document ME29N and goto ME9F to
release the document

8 ME2o- STOCK MONITORING FOR VENDOR enter the vendor and POST GOOD ISSUE

9 migo-- a01—r01 pruchase order ----101 for finished product

CONSIGNMENT PROCESS
The process, in which a vendor keeps the material with a company; while the ownership is retained by the vendor until the
material is sold or used, is known as consignment process. In the consignment procurement process, a consignment
agreement should be created between a company and a vendor. In such a situation, the company should pay the vendor
before issuing material to the production department.

OR

Consignment stocks.
In consignment stock arrangement, the vendor takes care of inventory
of raw materials and the manufacturer pays for raw material only when it is consumed.
The vendor is responsible for shipping the inventory up to the manufacturing site as well
as taking care of this inventory. In this arrangement, the procurement cost is high for the
manufacturer, but he saves inventory-carrying costs. This arrangement suits assemble-to
order environments as well as retail industry
CONFIGURATION ACTIVITY
IMG
-> ENTERPRICE STRUCTURE
-> ASSIGNMENT
-> ASSIGN STANDARD PURCHASE ORGAINIZATION TO PLANT
-> ASSSIGN THE PLANT AND PURCHASE ORGANIZATION U CREATED

END USER
1 create a material MM01 with the plant u selected for standard purchase org
2 create a vendor XK01 for consignment process

3 create a info category ME11 with respective purchase org and plant , select
INFO CATERGORY as CONSIGNMENT
4 Create a purchase order ME21N and write the vendor number amd in ITEM CATEGORY
select CONSIGNMENT(K) ,enter material no., Quantity required, plant, storage location

5 release the document ME29N now output the document ME9F

6 Now go for MIGO ---A01—PURCHASE ORDER DOCUMENT----101 MOVEMENT---CHECK

AND POST IT

7 check using MB03 to check material and accounting document and under MMBE for
stock update

8 Now go for MIGO ---A08 – transfer posting movement type is 411k write plant, str
location, vendor no, quantity in UnE

9 check using MB03 to check material and accounting document and under MMBE for stock
update

PIPELINE PROCESS
1) Assign STANDARD PURCHASING ORGANIZATION TO PLANT where pipeline process
is carried out.

2) Create ‘PIPE’ type material.

3) Create Pipeline Vendor.

4) Maintain PIPELINE PURCHASING INFO RECORD.

5) Issue consumed quantity against Account Assignment Category (like cost center,
project, production, etc.).
A07---OTHER---- 201 P and write material, quantity and where.

Split valuation

Img:

material management-> valuation and account category->split valuation-> activate split

valuation to plant

material management-> valuation and account category->split valuation-> configure split

valuation to plant

global typre-> create->valuation type(any alpha numeric) raw material 2,,0,,0001 and for
finished product raw material 0,,2,,0009-> create

global category-> create-> valuation category->create-> go back->select the valuation

category created->click the valuation type u created and click activate now save it

click on cat->ous-> click the plant u want to selected-> save it.

End user activity

During accounting 1 view select valuation category u created, price control v, donot enter
valuation class
Again create the same material with selecting valuation type u created*