SAP MM Config Guide

MM – Configuration Documentation

Table of Contents
1PURPOSE OF THE DOCUMENT................................................................................................................5
ENTERPRISE STRUCTURE - DEFINITION...............................................................................................6
1.1 DEFINE VALUATION LEVEL...........................................................................................................................6
1.2 DEFINE PLANT...............................................................................................................................................6
1.3 MAINTAIN STORAGE LOCATION....................................................................................................................7
1.4 MAINTAIN PURCHASING ORGANIZATION.......................................................................................................8
ENTERPRISE STRUCTURE ASSIGNMENTS.............................................................................................9
1.5 ASSIGN PLANT TO COMPANY CODE..............................................................................................................9
1.6 ASSIGN PURCHASING ORGANIZATION TO COMPANY CODE............................................................................9
1.7 ASSIGN PURCHASING ORGANIZATION TO PLANT.........................................................................................10
1.8 ASSIGN STANDARD PURCHASING ORGANIZATION TO PLANT.......................................................................11
GENERAL LOGISTICS ...............................................................................................................................12
1.9 ASSIGN FIELDS TO FIELDS SELECTION GROUPS..........................................................................................12
1.10 MAINTAIN FIELD SELECTION FOR DATA SCREENS...................................................................................12
1.11 MAINTAIN COMPANY CODES FOR MATERIALS MANAGEMENT................................................................13
1.12 DEFINE ATTRIBUTES OF MATERIAL TYPES...............................................................................................14
1.13 DEFINE NUMBER RANGES FOR EACH MATERIAL TYPES............................................................................16
1.14 DEFINE ATTRIBUTES OF SYSTEM MESSAGES.............................................................................................17
1.15 DEFINE MATERIAL GROUPS.......................................................................................................................17
1.16 DEFINE EXTERNAL MATERIAL GROUPS....................................................................................................18
1.17 INITIALIZE PERIOD.....................................................................................................................................18
MATERIALS MANAGEMENT – CONSUMPTION BASED PLANNING.............................................20
1.18 ACTIVATE MRP FOR MRP AREAS............................................................................................................20
1.19 DEFINE MRP AREAS.................................................................................................................................20
MATERIALS MANAGEMENT – PURCHASING......................................................................................21
1.20 DEFINE ATTRIBUTES OF SYSTEM MESSAGES............................................................................................21
1.21 DEFINE PURCHASING VALUE KEYS...........................................................................................................21
1.22 ENTRY AIDS FOR ITEMS WITHOUT A MATERIAL MASTER........................................................................22
1.23 CREATE PURCHASING GROUPS..................................................................................................................23
1.24 DEFINE DOCUMENT TYPES (RFQ/QUOTATION)........................................................................................23
1.25 DEFINE TEXT TYPES FOR HEADER TEXTS (RFQ/QUOTATIONS)...............................................................25
1.26 DEFINE COPYING RULES FOR HEADER TEXTS (RFQ/QUOTATIONS)..........................................................25
1.27 DEFINE DOCUMENT TYPES (PURCHASE REQUISITIONS).............................................................................26
1.28 RELEASE PROCEDURE WITH CLASSIFICATION (PURCHASE REQUISITIONS)...............................................27
1.29 DEFINE NUMBER RANGES (PURCHASE ORDERS)......................................................................................32
1.30 DEFINE DOCUMENT TYPES (PURCHASE ORDERS).....................................................................................33
1.31 SET TOLERANCE LIMITS FOR PRICE VARIANCE........................................................................................35
1.32 RELEASE PROCEDURE FOR PURCHASE ORDERS........................................................................................36
1.33 DEFINE SCREEN LAYOUT AT DOCUMENT LEVEL......................................................................................39
1.34 DEFINE TEXT TYPES FOR HEADER TEXTS (PURCHASE ORDERS)..............................................................40
1.35 DEFINE COPYING RULES FOR HEADER TEXTS (PURCHASE ORDER)..........................................................41
1.36 DEFINE TEXT TYPES FOR ITEM TEXTS (PURCHASE ORDERS)...................................................................41
1.37 DEFINE COPYING RULES FOR ITEM TEXTS (PURCHASE ORDER)................................................................42
1.38 DEFINE DOCUMENT TYPES (CONTRACTS).................................................................................................43
1.39 DEFINE SCREEN LAYOUT AT DOCUMENT LEVEL (CONTRACTS)...............................................................45
1.40 DEFINE TEXT TYPES FOR HEADER TEXTS (CONTRACTS)..........................................................................46

1.41 DEFINE COPYING RULES FOR HEADER TEXTS (CONTRACTS)....................................................................47
1.42 DEFINE TEXT TYPES FOR ITEM TEXTS (CONTRACTS)...............................................................................47
1.43 DEFINE COPYING RULES FOR ITEM TEXTS (CONTRACT)...........................................................................47
1.44 DEFINE EXTERNAL CONFIRMATION CATEGORIES.....................................................................................49
1.45 DEFINE INTERNAL CONFIRMATION CATEGORIES......................................................................................49
1.46 SET UP CONFIRMATION CONTROL............................................................................................................50
1.47 DEFINE ACCESS SEQUENCE.......................................................................................................................51
1.48 DEFINE CONDITION TYPES........................................................................................................................52
1.49 DEFINE CALCULATION SCHEMA................................................................................................................54
1.50 DEFINE SCHEMA GROUP............................................................................................................................56
1.51 DEFINE SCHEMA DETERMINATION............................................................................................................57
1.52 DEFINE TRANSACTION EVENT KEYS..........................................................................................................59
1.53 MAINTAIN CONDITION TABLE...................................................................................................................60
1.54 DEFINE GRID FOR QUANTITY VARIANCES................................................................................................61
1.55 DEFINE GRID FOR DELIVERY DATE VARIANCE.........................................................................................61
1.56 DEFINE WEIGHING KEYS............................................................................................................................61
1.57 DEFINE CRITERION (VENDOR EVALUATION).............................................................................................62
1.58 DEFINE SCOPE OF LIST (VENDOR EVALUATION)......................................................................................63
1.59 MAINTAIN PURCHASING ORGANIZATION DATA........................................................................................63
1.60 DEFINE PERMISSIBLE PARTNER ROLES PER ACCOUNT GROUP.................................................................65
1.61 DEFINE PARTNER SCHEMAS (VENDOR MASTER)......................................................................................66
1.62 ASSIGN PARTNER SCHEMAS TO ACCOUNT GROUPS..................................................................................67
1.63 DEFINE PARTNER SCHEMAS (PURCHASING DOCUMENTS)........................................................................67
1.64 ASSIGN PARTNER SCHEMAS TO DOCUMENT TYPES..................................................................................68
MATERIALS MANAGEMENT – EXTERNAL SERVICES MANAGEMENT......................................70
1.65 DEFINE SERVICE CATEGORY.....................................................................................................................70
1.66 DEFINE NUMBER RANGES.........................................................................................................................70
1.67 DEFINE NUMBER RANGE FOR SERVICE ENTRY SHEETS............................................................................71
1.68 DEFINE ATTRIBUTES OF SYSTEM MESSAGES.............................................................................................71
MATERIALS MANAGEMENT – INVENTORY MGMT. & PHYSICAL INVENTORY.....................73
1.69 PLANT PARAMETERS..................................................................................................................................73
1.70 DEFINE NUMBER ASSIGNMENT FOR ACCOUNTING DOCUMENTS..............................................................73
1.71 DEFINE NUMBER ASSIGNMENT FOR MATERIAL AND PHYSICAL INVENTORY DOCUMENTS......................76
1.72 DEFINE NUMBER ASSIGNMENT FOR RESERVATIONS.................................................................................77
1.73 FIELD SELECTION FOR GOODS MOVEMENT/INITIAL HEADER SCREENS...................................................77
1.74 FIELD SELECTION FOR MIGO....................................................................................................................78
1.75 FIELD SELECTION PER MOVEMENT TYPE..................................................................................................79
1.76 SETTINGS FOR TRANSACTIONS AND REFERENCE DOCUMENTS.................................................................80
1.77 CREATE STORAGE LOCATION AUTOMATICALLY.......................................................................................81
1.78 SET MANUAL ACCOUNT ASSIGNMENT......................................................................................................82
1.79 DEFINE SCREEN LAYOUT...........................................................................................................................82
1.80 MAINTAIN COPY RULES FOR REFERENCE DOCUMENTS............................................................................83
1.81 SET UP DYNAMIC AVAILABILITY CHECK..................................................................................................84
1.82 GENERATE PHYSICAL INVENTORY DOCUMENTS FOR GOODS MOVEMENTS.............................................87
1.83 CHECK TOLERANCE LIMITS.......................................................................................................................87
1.84 CREATE STORAGE LOCATIONS AUTOMATICALLY.....................................................................................88
1.85 SET MANUAL ACCOUNT ASSIGNMENT......................................................................................................89
1.86 DEFINE SCREEN LAYOUT...........................................................................................................................90
1.88 SET DYNAMIC AVAILABILITY CHECK.......................................................................................................92
1.89 SET “DELIVERY COMPLETED” INDICATOR................................................................................................93
1.90 SET EXPIRATION DATE CHECK..................................................................................................................94

1.91 CREATE STORAGE LOCATION AUTOMATICALLY FOR AUTOMATIC MOVEMENTS.......................................94
1.92 SET MANUAL ACCOUNT ASSIGNMENT FOR AUTOMATIC MOVEMENTS.......................................................96
1.93 DEFINE SCREEN LAYOUT FOR AUTOMATIC MOVEMENTS..........................................................................97
1.94 GENERATE PHYSICAL INVENTORY DOCUMENTS FOR GOODS MOVEMENTS.............................................97
1.95 DEFINE DEFAULT VALUES FOR RESERVATIONS........................................................................................98
1.97 SET DYNAMIC AVAILABILITY CHECK FOR RESERVATIONS......................................................................99
1.98 DEFAULT VALUES FOR PHYSICAL INVENTORY.......................................................................................102
1.99 RECORD REASONS FOR GOODS MOVEMENTS..........................................................................................103
1.100 COPY, CHANGE MOVEMENT TYPES.......................................................................................................103
MATERIALS MANAGEMENT – VALUATION AND ACCOUNT ASSIGNMENT...........................105
1.101 SPLIT VALUATION..................................................................................................................................105
1.102 CONFIGURE SPLIT VALUATION..............................................................................................................105

1 Purpose of the Document
This document captures in detail the steps required to configure the SAP system to meet the
business requirements as envisaged in the ITZ Process Definition Documents of Business Blueprint
phase. The configuration steps have mappings to the corresponding menu path where the
configuration has been done in the IMG (Implementation Guide). The descriptive procedure along
with rationale of all configurations is also provided.
The documentation provides visibility to all project teams members on the proposed system
settings and changes. This is very important due to the highly integrated nature of SAP. All future
changes or updates to the system should be done based on this document and the documentation
updated accordingly.
This customisation manual outlines the way, how the Materials Management Module has been
configured for ITZ as per the requirement of their business scenarios and should be seen in
conjunction with the KDS document.
This document explains the settings done i.e. Configurations done for the present implementation
only and not all the nodes available.
Other Nodes are kept as standard (as delivered by SAP)

Enterprise Structure - Definition
1.1 Define Valuation Level
Menu path Implementation Guide for R/3 Customizing (IMG) → Enterprise Structure
→ Definition → Logistics general → Define Valuation Level
Transaction Code OX14
Configuration
Description
Here we specify the level at which material stocks are valuated. We
have used the Plant level since the application component Production
Planning (PP) and Costing are being used.
• Depending on the valuation level chosen, accounting data (in
particular the valuation price) is maintained for each plant or for
each company code in the material master record.
• If material stocks are valuated at company code level, all plant
stocks of a material are managed in a joint stock account for each
company code.
• If material stocks are valuated at plant level, the material stocks for
each plant can be managed in different accounts. We can define a
separate account determination for each plant.
1.2 Define Plant
→ Definition → Logistics general → Define, copy, delete, check plant
Transaction Code SPRO
Configuration
Description
As a part of the Logistics Organizational Structure, Plants are defined in
SAP. The ‘Plant’ is an operating area or a branch or a location within a
company. Each 'Plant' is assigned to a single 'company code'. A
'company code' can have several 'Plants'. In case of ITZ Pvt. Ltd., the
various 'Plants' are assigned to a each 'company code'.
Configuration of One Plant is depicted here, (for list of all please refer to
MM KDS Document)

1.3 Maintain Storage Location
→ Definition → Materials Management → Maintain Storage Location
Transaction Code OX09
Configuration
Description
A storage location is the place where stock is physically kept within a plant.
There may be one or more storage locations within a plant.
A storage location has the following attributes:
• A storage location has a description and at least one address.
• It is possible to store material data specific to a storage location.
• Stocks are managed only on a quantity basis and not on a value
basis at storage location level.
• Physical inventories are carried out at storage location level.
Configuration of Storage Locations under One Plant is depicted here,
(for list of all please refer to MM KDS Document)

1.4 Maintain purchasing organization
→ Definition → Materials Management  Maintain Purchasing
Organization
Configuration
Description
At this node we configure the Purchasing Organization .The purchasing
organization is the highest level of aggregation (after the organizational
unit "client") for purchasing statistics.
In case of ITZ One single Purchase Organization is created as under :

Enterprise Structure Assignments
1.5 Assign Plant to Company Code
→ Assignment → Logistics general → Assign Plant to Company Code
Configuration
Description
A Plant needs to be assigned to one of the Company Codes, the relation
is always one to one i.e. One Plant can be assigned to only one
company code
All the plants can’t be shown here(for complete list refer MM KDS
document)
1.6 Assign purchasing organization to company code
→ Assignment → Logistics general → Assign purchasing
organization to company code
Configuration
Description
In this node we assign the Purchasing Organization to the company
code under which it works.
In case of ITZ the Purchasing Organization is Central, so it is not
assigned to any Company Code

1.7 Assign purchasing organization to Plant
→ Assignment → Logistics general → Assign purchasing
organization to Plant
Configuration
Description
In this step we assign purchasing organizations to the plants for which
they are responsible.
In case of ITZ since it operates with Centralized Purchasing Org. we
have assigned the Purchasing Org. to all the plants defined as of now

1.8 Assign standard purchasing organization to plant
→ Assignment → Logistics general → Assign standard purchasing
organization to plant
Configuration
Description
If several purchasing organisations procure for a certain plant, we can
define one of them as the standard purchasing organization for the
transactions "pipeline procurement", "consigmnent" and "stock
transfers".
In source determination for stock transfers and consignent, the system
automatically utilizes this standard purchasing organization. In the case
of goods issues of pipeline materials, the purchasing info records of the
standard purchasing organization are read.
In ITZ, we have not defined this Setting as we are using single
Purchasing Organisation

General Logistics
1.9 Assign Fields to Fields Selection Groups
Menu path Implementation Guide for R/3 Customizing (IMG) → Logistics - General
 Material Master  Field Selection Assign Fields to Fields
Selection Groups
Transaction Code OMSR
Configuration
Description
Assignment of Material Master Fields is required to define whether a
field is hidden or displayed, or whether an entry is mandatory or optional
in material master maintenance, it is always advisable to work with
Standard SAP settings, but for few business requirement some
assignments are changed to new field selection groups defined as per
reserved name space. in case of ITZ, some of the list of changed entries
is as given below:
Field Name Description Changed Field
Grp
MVKE-MVGR1 Material group 1 211
1.10 Maintain Field Selection for Data Screens
Menu path Implementation Guide for R/3 Customizing (IMG) → Logistics - General 
Material Master  Field Selection Maintain Field Selection for Data
Screens
Transaction Code OMS9
Configuration
Description
In this step we define the nature of a Field belonging to a particular Field
Selection Group wrt the Screen Reference of a Material Type. Steps
involved are :
• Selecting the field selection group.
• Select the field selection option (hide, display, required entry, or
Optional entry) for each field reference as required.

1.11 Maintain Company Codes for Materials Management
 Material Master  Basic Settings Maintain Company Codes for
Materials Management
Transaction Code OMSY
Configuration
Description
This activity is done for making a Company Code relevant for materials
Management and to define the starting posting period This is a
prerequisite for creating a Material Master

1.12 Define Attributes of Material Types
Material Master  Basic Settings Material Types Define Attributes of
Material Types
Transaction
Code
OMS2
Configuratio
n
Description
Material type is analogous to the family of a material master; all the important
attributes of a material are governed by settings in the material type. To be precise
it governs :
1. Number range pattern and nature (external/internal)
2. Hide/optional fields in the material master
3. Valuation Control at valuation area level (ultimately used to derive G/L)
4. Control on Production/Purchase

1.13 Define Number Ranges for each material types
 Material Master  Basic Settings Material Types Define
Number Ranges for each Material Types
Transaction Code MMNR
Configuration
Description
In this step, we have defined the type of number assignment and the
number range intervals for material master records. When creating a
material master record, system must assign it a unique number. There are
two ways of doing this:
• internal number assignment
In this case, a number within the number range interval allowed is
assigned by the SAP system.
• external number assignment
Here, the user assigns a number within the number range interval
allowed. We can define the intervals for external number
assignment numerically and alphanumerically.
We have defined the number range intervals for so-called groups. We
assign one or more material types to each group.
• If we assign just one material type to a group, we can define both an
internal and an external number range interval for the material type.
• If we group together more than one material type, we can define an
internal and an external number range interval here too. This allows
several material types to have the same number range intervals.

1.14 Define Attributes of system messages
 Material Master  Basic Settings Define Attributes of system
messages
Transaction Code OMT4
Configuration
Description
When processing material master records, the system issues a number of system
messages containing important user information. In this activity, we define how the
SAP system handles these messages. We have the following options:
• The message can be suppressed.
• The message can be displayed as a warning.
• The message can be displayed as an error message. (can’t be
surpassed)
For ITZ requirement Message Numbers MM189 & 312 are changed as
Error message
We are using Standard SAP Messages.
1.15 Define Material Groups
 Material Master  Settings for Key Fields Define Material Groups
Transaction Code OMSF
Configuration
Description
Here we define the Groups for Materials & Services, This Grouping shall
be defined keeping in mind the reporting requirement of the company for
analysing Purchases, Consumptions, Stocks etc,
Setting is just a table entry, few records are shown in the screen shot,
for complete list refer to the MM KDS document or the actual system
node

1.16 Define External Material Groups
 Material Master  Settings for Key Fields Define External
Material Groups
Configuration
Description
Here we define the Groups for giving an extra key for filtering, sorting
the list of materials from a criterion other than Material grouping
In case of ITZ we have not used External Material Groups
1.17 Initialize Period
Material Master  Tools Initialize Period
Transaction
Code
MMPI
Configuratio
n Description
This Transaction can be used to initialize the period in materials management ,
i.e. it opens the already closed period (thru Txn : MMPV), but opening a period
has serious implications on data consistency in SAP so as recommended by
SAP Follow the instructions in Note 487381 before initialization

Materials Management – Consumption based Planning
1.18 Activate MRP for MRP Areas
Menu path Implementation Guide for R/3 Customizing (IMG) → Materials
Management  Consumption-based Planning  Master Data  MRP
Areas Activate MRP for MRP Areas
Configuration
Description
This setting is required if we want to have planning at a level other than plants i.e.
either of Storage location / at Subcontractor level.
An MRP area represents an organizational unit for which we can perform material
requirements planning separately.
An MRP area can include one or several storage locations of a plant or a
subcontractor. We can define MRP areas in a plant.
For ITZ Ltd., we have not used MRP Areas.
1.19 Define MRP Areas
Management  Consumption-based Planning  Master Data  MRP
Areas Define MRP Areas
Transaction Code SCAL
Configuration
Description
Here we define the MRP areas for a plant for which we would like to carry out
material requirements planning separately.
When creating an MRP area, we enter the number, which must have at least 5
digits to avoid any overlapping with the plant MRP area, the description and the
MRP area type
In case of ITZ we have not defined MRP area
Important : If MRP area is activated Conversion of Planning file entries
needs to be run in every new System Client through Report RMDBVM00
in Txn : SE38
The conversion report causes the system to create a new planning file.
In addition, the system creates MRP area for the existing plants. These
MRP areas do not, however, affect the way material requirements
planning is carried out. The number for plant MRP areas is identical to
the plant number and therefore consists of four digits.
The conversion of the current planning file (table MDVM) to the new
planning file (table DBVM) is a prerequisite for carrying out material
requirements planning with MRP areas.

Materials Management – Purchasing
1.20 Define Attributes of System Messages
Management  Purchasing  Environment Data  Define Attributes
of System Messages
Configuration
Description
In Purchasing, certain system messages containing important
information for users may be issued from time to time
In this step, we can specify whether the SAP System:
• Suppresses the relevant information
• Issues it as a warning message
• Issues it as an error message
In the case of an error message, processing cannot be
continued until user input has been corrected
For ITZ requirement, messages (as a change from standard) are
configured as given below:
1.21 Define Purchasing Value Keys
Management  Purchasing  Material Master  Define Purchasing
Value Keys
Configuration
Description
With Purchasing value key we can control following functions by using it
in the material master purchasing view, purchasing value key governs:
• The issue of reminders and urging letters (expediters) with respect
to nearly due and overdue deliveries
• The admissibility of over- and under deliveries ("overages" and
"under ages")
• Order acknowledgment requirements for PO items
• Shipping/packaging instructions
This data appears as default data in purchasing documents and is taken
from the material master record (unless a purchasing info record exists,

in which case it is taken from the info records).
1.22 Entry Aids for Items without a Material Master
Management  Purchasing  Material Master  Entry Aids for Items
Without a Material Master
Configuration
Description
In this step we assign In this step, we can assign a purchasing value key
and a valuation class to a material group.
The assignment of a purchasing value key default values for
reminder levels etc. in purchase order items without a material
master record and without an info record.
The assignment of a valuation class to a material group enables
the system to determine different accounts for the individual

material groups.
For ITZ we have maintained Valuation Classes in the accounting view of
the materials.
1.23 Create Purchasing Groups
Management  Purchasing  Create Purchasing Groups
Configuration
Description
It’s a key for a buyer or group of buyers responsible for certain purchasing
activities. useful in accessing information, controlling authorizations, setting
up release strategies etc. for ITZ ‘s Requirement following groups are
configured, configuration is a simple table entry but purchasing group has a
comprehensive use in all purchasing transactions/ documents
1.24 Define Document Types (RFQ/Quotation)
Menu path Implementation Guide for R/3 Customizing (IMG) → Materials Management
 Purchasing  RFQ/Quotation  Define Document Types
Transaction
Code
SPRO
Configuration
Description
SAP manages RFQs and quotations as documents which are grouped into
different document types., in this step we have :
• Created new document types
• Defined item interval
• Defined admissible follow-on document types
• Assigned document types to a number range group
• Defined number range interval
• Chosen type of number assignment
- internal
- external
• Chosen update group
The update group determines how the data from the document header
is updated in the statistics file.

Linkage determines which PR document types can be referenced for
creating a particular RFQ document type

1.25 Define Text Types for Header Texts (RFQ/Quotations)
Management  Purchasing RFQ /Quotations  Define Text Types
for Header Texts
Configuration
Description
In this step we define different Texts which appear in RFQ/Quotation
Headers, which are used to store information applicable for a particular
RFQ document
We have standard Header Text Types.
1.26 Define copying rules for Header Texts (RFQ/Quotations)
Management  Purchasing RFQ /Quotations  Define copying
rules for Line Texts (RFQ/Quotations)
Configuration
Description
In this step we define copying rules for different header Texts which
appear in RFQ/Quotation Line Items
Copying rules are used to determine which texts can be adapted from
other objects (for example, vendor master records, contracts) to the
header text of the RFQ. We link text types in the RFQ with text types in
other objects. System can adopt header texts from the following objects:
• RFQ / Quotation
• Contract
• Scheduling agreement
• Vendor master
We can also specify whether the adopted text can be edited in the
destination document or not. This type of setting is more useful in PO
Header Texts

1.27 Define document types (Purchase Requisitions)
 Purchasing  Purchase Requisitions  Define document types
(Purchase Requisitions)
Configuration
Description
SAP manages Purchase Requisitions as documents which are grouped
into various document types., in this step we have :
- internal
- external
The update group determines how the data from the document
header is updated in the statistics file.

Above linkage governs which type of PO can be created using PR of a
particular type
1.28 Release Procedure with Classification (Purchase Requisitions)
 Purchasing  Purchase Requisitions  Release Procedure
Procedure with Classification  Set Up Procedure with Classification
Transaction
Code
SPRO
Configuration
Description
In this step, we have set up the release procedure with classification.
Purchase Requisition release is the process in which Purchase Requisition is
approved and released by HOD of concern department for request of required
material or services specified in Purchase Requisition. Once the Purchase
Requisition is approved and released then Purchase Order or RFQ will be
created for that material or services against same Purchase Requisition.
Configuration involves following elements in sequence:
Release Group:
Specify for the release group either "overall release" or "item-wise release"

Release codes:
The Release Code is a two-character ID allowing a person to release
(approve) a requisition.(analogous to approver code)
Release Indicators:
A release indicator shows the release status of a purchase requisition

Release Indicators also involve:
Field selection key
via the field selection key, we can specify which fields in a purchase
requisition with this release indicator can be changed or must be populated
Changes after start of release process
• With the Changeability indicator, we can specify the effects of changes to a
requisition. For example, certain changes may require a new release
strategy to be determined for the requisition.
• Via the Value change field, we can cause the release strategy to be re-
started if the value of a purchase requisition item is increased by more
than a certain percentage (e.g. 10%). To do so, set the Changeability
indicator to "4 - Changeable, new release in case of new strategy or value
change" and enter a percentage in the Value change field.
Release Strategy
The Release Strategy defines the approval process for Purchase Requisitions.
The strategy specifies the release codes which are necessary and the
sequence in which releases have to be affected. We can define a maximum of
eight release codes i.e. 8 Levels of approval.
Release Prerequisites indicate the sequence in which a Purchase Requisition
must be approved via the release codes. (In ITZ case release is
parallel(either / or so indicators are kept blank)

Release Status indicates the affect after the release by a particular release
code
Release Values
These values need to be maintained in every client manually, this forms the
basis on which release strategy is triggered for a PR.
An important prerequisite for this is to create Class & Characteristics in
class type 032
Characteristics for Release Strategy
Create the Characteristics required for release strategy as master data thru
transaction CT04, here the most important setting is to attach the
characteristics to corresponding field of structure CEBAN

attach it to the structure
Class for Release Strategy
Create the class as master data thru transaction CL02

and attach the Characteristics created earlier to the class
1.29 Define Number Ranges (Purchase Orders)
Management  Purchasing Purchase order  Define Number
Ranges
Transaction Code OMH6
Configuration
Description
In this step we define number ranges for Purchase order document types,
(defined separately in customizing), this setting also includes number
ranges for other external purchasing documents i.e. for

Contracts/Scheduling Agreements and RFQs.
There are two ways of doing this:
• internal number assignment
In this case, a number within the number range interval allowed is
assigned by the SAP system.
• external number assignment
Here, the user assigns a number within the number range interval
allowed. We can define the intervals for external number
assignment numerically and alphanumerically.
In case of ITZ all the documents are assigned with internal number ranges
with the exception for document type “Legacy Open P.O”, as it was
required to retain the legacy P.O number for this case.
go in change mode and define the intervals as shown:
1.30 Define Document types (Purchase Orders)
Management  Purchasing Purchase Orders  Define document
types
Configuration SAP manages Purchase Orders as documents which are grouped into

Description various document types., in this step we have :
• Define allowable item categories
- internal
- external
The update group determines how the data from the document
header is updated in the statistics file.

Above linkage governs which type of PR can be referenced created
while creating a particular Contract document type
1.31 Set Tolerance Limits for Price Variance
Management  Purchasing Purchase order  Set Tolerance Limits
for Price Variance
Configuration
Description
When processing a purchase order, the system checks whether the
effective price of a PO item shows variances compared with the
valuation price stored in the material master record. In addition, it checks
whether the specified cash discount value is admissible.
Variances are allowed within the tolerance limits. If a variance exceeds a
tolerance limit, the system issues a warning or error message. In SAP,
the types of variance are represented by the tolerance keys. For each
tolerance key, we can define percentage and value-dependent upper
and lower limits per company code.
• PE Price variance, Purchasing
o Tolerance limit for system message no. 207. This message
appears if the specified effective price exceeds the
predefined tolerances when compared with the material
price.
• SE Maximum cash discount deduction, Purchasing
o Tolerance limit for system message no. 231. This is a
warning message, which appears when the specified cash
discount percentage exceeds the predefined tolerances.

1.32 Release Procedure for Purchase Orders
 Purchasing Purchase Order  Release Procedure for Purchase
Orders
Transaction
Code
SPRO
Configuration
Description
In this step, we have set up the release procedure for Purchase Orders(this
also covers the process for other external purchasing documents e.g.
contracts/scheduling agreements)
Purchase Order release is the process in which PO is approved and released
by HOD of concern department for request of required material or services
specified in PO. Once the Order is approved and released then GR can be
created against the PO

In case of ITZ, Release strategy is used in case of all purchases.
Configuration involves following elements in sequence:
Release Group:
Release groups are created for each type of purchasing
Release codes:
The Release Code is a two-character ID allowing a person to release (approve)
a requisition.(analogous to approver code)

Release Indicators:
A release indicator shows the release status of a Purchase Order
Release Indicators also involve:
Changeability Indicator
With the Changeability indicator, we can specify the effects of changes to a
PO document. For example, certain changes may require a new release
strategy to be determined for the requisition.
• Via the Value change field, we can cause the release strategy to be re-
started if the value of a purchase order is increased by more than a certain
percentage (e.g. 10%). To do so, set the Changeability indicator to "6 -
Changeable, new release in case of new strategy or value change" and
enter a percentage in the Value change field.
Release Strategy
The Release Strategy defines the approval process for PO. The strategy
specifies the release codes which are necessary and the sequence in which
releases have to be affected. We can define a maximum of eight release codes
i.e. 8 Levels of approval.
Release Prerequisites indicate the sequence in which a Purchase Requisition
must be approved via the release codes. (In ITZ case release is by a single
authority so there are no prerequisite involved)
Release Status indicates the affect after the release by a particular release
code
Release Values

These values need to be maintained in every client manually, this forms the
basis on which release strategy is triggered for a PO.
An important prerequisite for this is to create Class & Characteristics in class
type 032
Characteristics for Release Strategy
Create the Characteristics required for release strategy as master data thru
transaction CT04, here the most important setting is to attach the
characteristics to corresponding field of structure CEKKO
And attach it to the structure
Class for Release Strategy
Create the class as master data thru transaction CL02 and attach the
Characteristics created earlier to the class
1.33 Define Screen Layout at Document Level
 Purchasing Purchase Orders  Define Screen Layout at Document
Level
Configuration
Description
In this step we define the attributes of various fields contained in a field
selection key (defined for a document type) inside which various fields are
grouped into fields selection groups.Steps involved in the process are :
• Selecting the field selection key (defined for a document type)
• Select the field selection option (hide, display, required entry, or
Optional entry) for each field inside a field selection group
reference as required.
Select a field selection key and set the attributes inside as shown:

get inside a field group and choose the attributes
settings can be made similarly for other fields in various other groups as
& when required
1.34 Define Text Types for Header Texts (Purchase Orders)
Management  Purchasing Purchase Order  Define Text Types
for Header Texts
Configuration
Description
In this step we define different Texts which appear in Purchase order
header, these are used to store information applicable for a particular PO
document

1.35 Define copying rules for Header Texts (Purchase Order)
Management  Purchasing Purchase Orders  Define copying
rules for Header Texts
Configuration
Description
appear in Purchase Order Headers
other objects (for example, vendor master records, contracts, RFQ) to
the header text of the Purchase Order. We link text types in the PO with
text types in other objects. System can adopt header texts from the
following objects:
• RFQ / Quotation
• Contract
• Scheduling agreement
• Vendor master
• Purchase Requisition
destination document or not. Currently we are not maintaining any copying
rule for header texts
1.36 Define Text Types for Item Texts (Purchase Orders)
Menu path Implementation Guide for R/3 Customizing (IMG) → Materials Management 
Purchasing Purchase Order  Define Text Types for Item Texts
Transaction
Code
SPRO
Configuration
Description
In this step we define different Texts which appear in Purchase order item level,
these are used to store information applicable for a particular PO document line

item
1.37 Define copying rules for Item Texts (Purchase Order)
Management  Purchasing Purchase Orders  Define copying
rules for Item Texts
Configuration
Description
In this step we define copying rules for different item Texts which appear in
Purchase Order ITEM
the header text of the Purchase Order. We link text types in the PO with
following objects:
• RFQ / Quotation
• Purchase Info record
• Contract
• Material master
We can also specify here whether the adopted text can be edited in the
destination document or not.

maintain the rules for a text as under
1.38 Define Document Types (Contracts)
Purchasing Contracts  Define Document Types
Transaction
Code
OMH6
Configuratio
n
Description
SAP manages Contracts as documents which are grouped into various
document types., in this step we have :
• Define allowable item categories

- internal
- external
The update group determines how the data from the document header is
updated in the statistics file.
In case of ITZ, use of Contracts and Scheduling agreements is very minimal so we
have retained and used standard SAP document types
Above linkage governs which type of PR can be referenced created while
creating a particular Contract document type

1.39 Define Screen Layout at Document Level (Contracts)
Purchasing Contracts  Define Screen Layout at Document Level
Transaction
Code
SPRO
Configuratio
n
Description
In this step we define the attributes of various fields contained in a field selection
key (defined for a document type) inside which various fields are grouped into
fields selection groups.Steps involved in the process are :
• Selecting the field selection key (defined for a document type)
• Select the field selection option (hide, display, required entry, or Optional
entry) for each field inside a field selection group reference as required.
Select a field selection key and set the attributes inside as shown:
get inside a field group and choose the attributes

settings can be made similarly for other fields in various other groups as &
when required
1.40 Define Text Types for Header Texts (Contracts)
Management  Purchasing Contracts  Define Text Types for
Header Texts
Configuration
Description
In this step we define different Texts which appear in Contract header,
these are used to store information applicable for a particular Contract
document

1.41 Define copying rules for Header Texts (Contracts)
Management  Purchasing Contracts  Define copying rules for
Header Texts
Configuration
Description
appear in Contract Headers
other objects (for example, vendor master records, Contract, RFQ) to
the header text of the Contract. We link text types in the PO with text
types in other objects. System can adopt header texts from the following
objects:
• RFQ / Quotation
• Contract
• Vendor master
We are maintaining Standard Text and copying Rules for Header Texts
1.42 Define Text Types for Item Texts (Contracts)
Purchasing Contracts  Define Text Types for Item Texts
Transaction
Code
SPRO
Configuration
Description
In this step we define different Texts which appear in Contract item level, these
are used to store information applicable for a particular Contract document line
item
1.43 Define copying rules for Item Texts (Contract)

Management  Purchasing Contracts  Define copying rules for
Item Texts
Configuration
Description
In this step we define copying rules for different item Texts which appear in
Contract Headers
the header text of the Contract. We link text types in the Contract with
following objects:
• RFQ / Quotation
• Contract
• Purchase Info record
• Material master
We can also specify here whether the adopted text can be edited in the
maintain the rules for a text as under

1.44 Define External Confirmation Categories
 Purchasing Confirmations  Define External Confirmation
Categories
Transaction
Code
SPRO
Configuration
Description
Notification from the vendor to the recipient regarding the status of a purchase
order., In case of ITZ , CONFIRMATIONS are not being used Confirmation
categories are defined to symbolize the key for a type of confirmation
1.45 Define Internal Confirmation Categories
Purchasing Confirmations  Define Internal Confirmation Categories
Transaction
Code
SPRO
Configuration
Description
In this step, we assign an external confirmation category to each internal confirmation
category.
Internal Categories are for system controls.

1.46 Set Up Confirmation Control
Purchasing Confirmations  Set Up Confirmation Control
Transaction
Code
SPRO
Configuration
Description
In this step, we assign an external confirmation category to each internal confirmation
category.
Internal Categories are for system controls.
As shown all the conformation categories are relevant for MRP, but the last one is
relevant to GR also, which means that when a GR is made against the P.O line

item it will get defaulted with qty of last conf. category
1.47 Define Access Sequence
Purchasing Conditions Define Price Determination Process  Define
Access Sequence
Transaction
Code
SPRO
Configuratio
n Description
Access sequence is an important element of pricing determination. It is the Order
in which the system searches through the condition tables when searching for
particular condition records. The search order goes from specific condition records
to general condition records.
E.G.
Access sequence is made up of condition table (the level at which data is stored)
In the access sequence shown system will search for the record from first to last

table in sequence. (e.g. if Custom duty % for a material is maintained at all the
three levels i.e. Incoterms-plant-maerial / Plant-Material / Plant-Material Type
level , then system will take the record from 1st
available level only i.e. Incoterms-
plant-maerial in this case)
Each condition table is defined as an combination of fields for data access and is
assigned to different condition types ( In case of ITZ , we are not maintaining any
access sequence),
1.48 Define Condition Types
Condition Types
Transaction
Code
M/06
sConfiguratio
n Description
In this step we have defined condition types.
The condition types are used to represent pricing elements such as prices,
discounts, surcharges, taxes, or delivery costs in the SAP. These are stored in
the system in condition records.
For condition types for which we want to maintain conditions with their own
validity period we have specified an access sequence. (e.g. for all import duty
conditions

Important Settings Condition type include:
Condition Class: Defines nature of condition as Prices / surcharge / discounts
etc.
Calculation type: Defines nature of condition unit i.e. Amount type /
Percentage / Qty etc
Condition Category : e.g. Packaging, Cost , Tax, Delivery Costs(requiring extra
vendor at condition level)
Access Sequence : Allows condition records to be maintained
Header Condition : Allows usage at Header level of Purchasing document
Accruals : Makes a condition irrelevant to net price calculation i.e. excluded from
tax base
1.49 Define Calculation Schema
Calculation Schema
Transaction
Code
M/08
Configuratio
n
Description
In this step, we have defined the calculation schemas.
In MM area, a calculation schema is a framework of steps used to calculate pricing
in as purchasing document
Analogous to this is referred to in the Sales and Distribution (SD) area as a pricing
procedure.
In the calculation schema (pricing procedure), we specify which condition types are
to be taken into account in which sequence.
In the price (or cost) determination process, the SAP System automatically
determines which calculation schema is valid for a business transaction and takes
into account, one after another, the condition types it contains.
In case of ITZ we have defined schemas all starting with Z*, these will get derived
in different types of purchasing documents as per the rule explained in Schema
determination configuration

Select one of the schema and see the control data as shown below:
Important keys in defining Schema are as under:
Step No. & Counter: For determination the sequence of conditions and to act as a
base for calculations with in condition
From- To : Base for calculation of condition value, this is only relevant for % type

of conditions
Statistical: Makes a condition non-relevant to account postings
Subtotal: Used to pass the condition value in to fields of P.O item tables and other
pricing structure
Requirement : Used for validating Condition value determination using small
ABAP written formulae
Base Type: Here a Formula for determining the condition basis as an alternative
to the standard.
Accrual key: for deriving a separate account during GR / Invoice postings
1.50 Define Schema Group
Management  Purchasing Conditions Define Price Determination
Process  Define Schema Group
Configuration
Description
Every External Purchase document derives Calculation Schema from a
combination of Purchasing Organization and Vendor, to simplify data
maintenance for this process SAP works with grouping concept. So all the
purchasing org. are grouped in to a Schema group and Vendors requiring
same pricing stricture are grouped into a Schema group , now for the
combination of these , system derives the pricing schemas
Click on a row to enter :

the other part i.e. vendors are assigned with schema group in vendor
master
1.51 Define Schema Determination
Process  Define Schema determination
Configuration
Description
In this step we have defined the determination of Pricing schema for
different type of Purchasing documents and for Stock transport orders
For standard purchase orders
(depending on the schema group of the vendor and the purchasing
organization)
For stock transport orders
(depending on the supplying plant, the document type and the schema
group of the purchasing organization)

select first item ,
and second item

1.52 Define Transaction Event keys
Transaction Event keys
Transaction
Code
SPRO
Configuration
Description
In this step, we have defined transaction/event keys for condition types involving
provisions.
This enables the system to find the relevant account for provisions (for accrued
delivery costs or miscellaneous provisions, for example),
We have assigned these transaction/event key to each condition type that is
relevant to provisions in the step Define Calculation Schema.
Select the 1st
row
Select second row, it displays the usage of key in schema

1.53 Maintain Condition Table
Process  Maintain Condition Table
Configuration
Description
In this step, we create custom tables, these table are used to store
condition records for different condition types , for this these tables should
be a part of access sequence
With help of this we can derive prices, discounts and surcharges
dependent on almost all the fields in a purchasing document.
In a condition table, we specify the combination of fields for which we can
create condition records.
As per SAP recommendation we should not change the condition tables
that are included in the standard version of the SAP System.
Check the extent to which we can use the condition tables that are supplied
with the standard SAP System, for our tables we can only choose names
between 501 and 999. If we make no entry, the system will automatically
assign a consecutive number.
For ITZ we have not defined any tables:
Steps:
For creating new condition tables. copy a similar condition table and proceed as
follows:
• Enter the name of the table we wish to create.
• Note that we can only choose names between 501 and 999. If we make no
entry, the system will automatically assign a consecutive number.
• Specify whether we wish to create the table with or without a validity
period.

• Enter the type of condition table (for example, transparent table).
• Enter a description for the condition table.
• From the list of allowed fields that are included in the field catalog and
which can be extended there, choose the desired fields for the condition
table.
• Generate the new condition table.
IMP: All the fields that shall be used to pick up any condition value must be
part of Header/Key field in the condition table.
1.54 Define Grid for Quantity Variances
Management  Purchasing Statistics Define Grid for Quantity
Variances
Configuration
Description
For Purchasing information system for vendor performance the statistics is
managed on the amount of quantity variances of vendors.
The delivery quantity variance specifies in percent the variance between
the purchase order quantity and the quantity actually delivered.
This key figure is determined if an order item is completed and is updated
for the entry date of the goods receipt or for the entry date of purchase
order change.
In this step we can determine four interval limits for every purchasing
organization. Five intervals are then available to we for evaluation of
vendors
1.55 Define Grid for Delivery Date Variance
Management  Purchasing Statistics Define Grid for Delivery
date
Configuration
Description
Delivery date variance data is used in statistics for evaluating vendor
performance.
The delivery date variance specifies the difference in days the difference
between the statistically relevant delivery date and the date of the goods
receipt.
This key figure is updated during the goods receipt for the entry date.
In this step we can determine four interval limits for every purchasing
organization. Five intervals are then available to we for evaluation of
vendors
1.56 Define Weighing keys
 Purchasing Vendor Evaluation  Define Weighing keys
Transaction
Code
SPRO
Configuration In vendor evaluation criteria are weighted according to their importance through

Description Weighing key.
For example, the overall evaluation of a vendor is calculated from the scores
awarded for the main evaluation criteria "price," "quality," and "delivery." The
latter comprises "on-time delivery performance" and "quantity reliability."
If we consider a vendor's price to be more important than quality, and quality to
be more important than delivery, we can assign weights to the criteria in a ratio
of three for price, two for quality, and one for delivery. This ratio is recorded in a
weighting key.
1.57 Define Criterion (Vendor Evaluation)
 Purchasing Vendor Evaluation  Define Criterion
Transaction
Code
SPRO
Configuration
Description
Here we have defined the criteria by which the system computes scores for
vendors and specify whether the scores for the subcriteria are computed
manually, semi-automatically, or automatically.
Select One of the criterion and drilldown to sub criterion

1.58 Define Scope of List (Vendor Evaluation)
 Purchasing Vendor Evaluation  Define Scope of List
Transaction
Code
SPRO
Configuration
Description
In this step we define various types of list, each representing different main
criteria or the same main criteria in a different order.
In the standard system, the scope-of-list parameters 'standard' and 'version 1'
are supplied as an example:
• The parameter Standard provides the user with a ranking list of
vendors by overall score. The main criteria are arranged in the order
"Price", "Quality", "Delivery", "General service/support” and "Externally
performed service/work".
• The parameter Version 1 yields a ranking list of vendors sorted
according to the score for the main criterion "Price". Then follow the
overall evaluation and the main criteria "General service/support",
"Quality", "Delivery", and "Externally performed service/work".
check the details of list inside
1.59 Maintain Purchasing Organization data
Management  Purchasing Vendor Evaluation  Maintain
Purchasing Organization data

Configuration
Description
Select a row and displays criterion for Purchasing Organization
Sub criterions for main criterion

Weighing for a Purchasing Org.
We have provided Equal Weighting to the Criteria as we have different
weighing parameters for ITZ
Point scores for a Purchasing Org.
1.60 Define Permissible Partner Roles per Account Group
Management  Purchasing Partner Determination  Partner Roles
Define Permissible Partner Roles per Account Group
Configuration
Description
Here we can specify for each account group of the vendor which roles
the vendor may assume. Example we can specify that certain vendors
may only serve as an ordering address, not as an invoicing party.

1.61 Define Partner Schemas (Vendor Master)
Management  Purchasing Partner Determination  Partner settings
in Vendor Master records Define Partner Schemas
Configuration
Description
Partner schemas allow us to group various partner roles. We can specify
that certain roles in a schema are mandatory, i.e. cannot be changed after
entry.
For ITZ, Schema groups Z1 is defined
select a schema to detail the allowed partner functions

1.62 Assign Partner Schemas to Account Groups
in Vendor Master records Assign Partner Schemas to account
groups
Configuration
Description
Here we assign the already defined schema groups to vendor account
groups
1.63 Define Partner Schemas (Purchasing Documents)
in Purchasing documents Define Partner Schemas

Configuration
Description
Partner schemas allow us to group various purchasing documents for
partner determination. We can specify that certain roles in a schema are
mandatory, i.e. cannot be changed after entry.
For ITZ, Schema group Z001 is defined
Select a Schema to detail the partner function allowed
1.64 Assign Partner Schemas to Document Types
in Purchasing documents Assign Partner Schemas to document
types
Configuration
Description
In this step, we have assigned the partner schemas to the various types of
purchasing document.
As a result, only the roles of the schema in question can be maintained in
documents of the relevant types.

Materials Management – External Services Management
1.65 Define Service Category
Management  External Services Management Service Master 
Define Service Category
Configuration
Description
In this step, we define the service category.
The service category is the most important criterion for structuring
Service master records. It provides a default value for the valuation
Classes. Service master records can be assigned to number ranges on
the basis of the service category.
1.66 Define Number Ranges
Define Number Ranges
Configuration
Description
In this step, we define Number Ranges for each service category.

1.67 Define Number Range for Service Entry Sheets
Configuration
Description
In this step, we define the service category.
The service category is the most important criterion for structuring
Service master records. It provides a default value for the valuation
Classes. Service master records can be assigned to number ranges on
the basis of the service category.
1.68 Define Attributes of System messages
Configuration
Description
In External Services Management, a number of system messages
containing important information for users may be issued. Users can
process this information further.
In this step, we can define whether the SAP System
• Suppresses this information
• Issues it in the form of a warning
• Issues it in the form of an error message
For ITZ requirement, additional messages no. SE 346 / 347 / 361 is
activated as Error along with other additional Standard SAP Messages

Materials Management – Inventory Mgmt. & Physical Inventory
1.69 Plant Parameters
Menu path Implementation Guide for R/3 Customizing (IMG) → Materials Management →
Inventory Management and Physical Inventory → Plant Parameters
Transaction
Code
SPRO
Configuratio
n
Description
In this step, we make the general plant settings for ‘Inventory Management’. All
settings are also contained in the individual steps of the Implementation Guide
for Inventory Management.
• If we have created a plant in the enterprise structure using the Copy plant
function, we do not need to make any settings.
• If we have created a plant manually, we have to create a new entry for the
plant parameters.
1.70 Define Number Assignment for Accounting Documents
Inventory Management and Physical Inventory → Number Assignment → Define
Number Assignment for Accounting Documents
Transaction
Code
OMBA

Configuratio
n
Description
In this step, we set the number ranges for the accounting documents which are
created when goods movements or inventory differences are posted.
For accounting-relevant goods movements, the system creates two different
documents:
• material document
• accounting document
Both the material documents and the accounting documents have their own
document numbers. When inventory differences are posted, the system also
creates an accounting document for the physical inventory document.
In this step, we only maintain the number assignment for accounting documents.
Accounting documents are split into document types to allow differentiated
document number assignment, which is the basis for distinguishing between the
various accounting operations. A number range is assigned to each document
type. In a company code, we have to define number intervals for each number
range and fiscal year. In inventory management, the transaction determines
which document type is used.
Goods Issue Document Type
TCode Transaction text Type Description
MB05
Subseq. Adjustmt: Act.Ingredient
Mat WE
Goods
receipt
MB11 Goods Movement WA Goods

issue
MB1A Goods Withdrawal WA
Goods
issue
MB1B Transfer Posting WA
Goods
issue
MB26 Picking list WA
Goods
issue
MBSU
Place in Stor.for Mat.Doc:
Init.Scrn
MIGO_GI Goods Movement WA
Goods
issue
MIGO_T
R Transfer Posting WA
Goods
issue
Goods Receipt Document Type
TCode Transaction text
Typ
e Description
MB01 Post Goods Receipt for PO WE
Goods
receipt
MB04
Subsequ.Adj.of
"Mat.Provided"Consmp. WE
Goods
receipt
MB0A Post Goods Receipt for PO WE
Goods
receipt
MB1C Other Goods Receipts WA
Goods
issue
MB31
Goods Receipt for Production
Order WE
Goods
receipt
MBNL
Subsequent Delivery f. Material
Doc.
MBRL Return Delivery for Matl Document
MBSF
Release Blocked Stock via Mat.
Doc. WE
Goods
receipt
MBSL Copy Material Document
MBST Cancel Material Document
MIGO_G
O Goods Movement WE
Goods
receipt
MIGO_G
R Goods Movement WE
Goods
receipt
MIGO_G
S
Subseq. Adjust. of Material
Provided WE
Goods
receipt
Automatic Movements Document Type
TCode Transaction text Type Description
BMBC Batch Information Cockpit WA Goods issue
BORGR GR Automotive WE
Goods
receipt
BORGR_B GR Automotive: Posting WE
Goods
receipt
BORGR_C GR Automotive: Clearing WE
Goods
receipt
CAT5 Data Transfer CATS -> PS WA Goods issue
CAT9
Data Transfer CATS ->
PM/CS WA Goods issue
CIP2 CC2: Update PDC messages WA Goods issue

CIPV Posting PDC records WA Goods issue
Physical Inventory Document Type
TCod
e Transaction text Type Description
MI07 Process List of Differences WI
Inventory
document
MI08
Create List of Differences with
Doc. WI
Inventory
document
MI10
Create List of Differences w/o
Doc. WI
Inventory
document
1.71 Define Number Assignment for Material and Physical Inventory Documents
Inventory Management and Physical Inventory → Number Assignment →
Define Number Assignment for Material and Phys.Inv Documents
Transaction
Code
OMBT
Configuratio
n
Description
In this step, we maintain the number assignment for the following documents:
• material documents
• physical inventory documents
The number assignment for these documents is not to be confused with the
number assignment for accounting documents which we completed in the step
Define number assignment for accounting documents. The number assignment
for accounting documents depends on the document type which is allocated to
the transaction.
The number assignment for material documents and physical inventory
documents depends on the transaction/event type which is also allocated to
each transaction in Inventory Management. The transaction/event types are
divided into groups of number ranges. A number range interval has to be
defined for each group.
No From no. To number Status Ext
01 0100000000 0199999999 0
02 4900000000 4999999999 4900002419
03 5000000000 5999999999 5000000219
04 0200000000 0299999999 0
Note
We cannot change the transaction/event types. However, we can
change the number range intervals or we can allocate transaction/event
types to new groups.
SPRO-> IMG-> Materials Management-> Inventory Management and Physical Inventory->
Number Assignment-> Define Number Assignment for Material and Phys. Inv. Docs
Her you ned to maintain the number ranges for the group attched to the key.
If you want to maintain new number range intervals for an existing group:
a) Choose Group -> Maintain.
b) Select a group and choose Interval -> Maintain.
c) Choose Edit -> Insert year.
d) Maintain the number interval for the new fiscal year.

1.72 Define Number Assignment for Reservations
Inventory Management and Physical Inventory → Number Assignment →
Define Number Assignment for Reservations
Transaction
Code
OMJK
Configuratio
n
Description
In this step, we set up number assignment for reservations.
The number assignment applies to all plants in the client.
Note
If we create reservations with method CreateFromData1 (function
module BAPI_RESERVATION_CREATE1), we can use the number
range RB for an external number assignment.
1.73 Field Selection for Goods Movement/Initial Header Screens
Inventory Management and Physical Inventory → Field Selection for Goods
Movement/Header Screens
Transaction
Code
OMJN
Configuratio
n
Description
In this step, we define the field selection for goods movements initial and header
screens.
Note that the field selection for the item screens depends on the movement type
and is configured in separate steps.

In this step, we specify whether the fields are input, mandatory, display or
hidden.
1.74 Field Selection for MIGO
Inventory Management and Physical Inventory → Settings for Enjoy
Transactions → Settings for Goods Movements → Field Selection for MIGO
Transaction
Code
OMJX
Configuratio
n
Description
Here we can:
• Hide the header data completely or hide particular fields that we do not
require
• Hide pushbuttons that we do not require
• Define the Delivery note and Bill of lading fields as mandatory entries if we
use evaluated receipt settlement
• Show the GR/GI slip (GOHEAD-XABLN) field if we use GR/GI slip
numbers (only necessary in certain countries)
• Show the Plant (GODYNPRO-PO_WERKS) field if we require the
ordering-plant name for purchase-order-related goods movements as a
selection criterion in addition to the purchase order number and item
number
Hide the print indicator if we do not want to print out GR/GI slips in Inventory
Management

1.75 Field Selection per Movement Type
Transactions → Settings for Goods Movements → Field Selection per Mvt
Type
Transaction
Code
SPRO
Configuratio
n
Description
In this step, we maintain all the settings for field selection by movement type.
This step replaces the activity Define Screen Layout for the Enjoy transactions.
The settings from Define Screen Layout are adopted in these settings
automatically so that we do not need to maintain new entries here.

We can specify for each field whether it is an optional entry or a mandatory
entry. In the table, we see all fields that are visible. We can access the setting
Field Invisible by deleting the appropriate entry from the table.
There is no distinction between different special stock indicators in these
entries. Special stock fields are always suppressed automatically.
1.76 Settings for Transactions and Reference Documents
Transactions → Settings for Goods Movements → Settings for Transactions
and Reference Documents
Transaction
Code
SPRO

Configuratio
n
Description
We can limit the number of selectable transactions (goods receipt, goods issue,
and so on) and reference documents (material document, delivery note), and we
can specify the movement type that the system is to propose for every reference
document.
If we need only certain transactions (for example, goods receipts or goods
issues), we can choose from the following preset transactions:
MIGO - Used to enter all goods receipts.
MIGO_GR - Used to enter goods receipts from external procurement.
MIGO_GO - Used to enter goods receipts for production orders.
MIGO_GI - Used to enter goods issues.
We can always display material documents.
Transaction MIGO; Actions Mentioned in the table
Action
Act
ive Action Active
A01 A08
A02 A09 X
A03 X A10
A04 X A11
A05
A06
A07 X
Reference Document Types (For details go to the path mentioned)
Ref.
Activ
e MvT Ref.
Activ
e MvT
R01 X 101 R02 X
R04 X 101 R03 X
R05 101 R01 X 351
R06 101 R08 X 261
R07 101 R09 X 201
R08 X 101 R10 X 201
R09 501 R09 X
R10 X 511 R10 X 301
R02 X R10 X 303
R03 X R02 X
R02 X R10 X 305
R02 X R01 X
R02 X
1.77 Create Storage Location Automatically
→ Inventory Management and Physical Inventory → Goods Issue/Transfer
Postings→ Create Storage Location Automatically
Transaction
Code
OMB2
Configuration
Description
In this step, we specify whether the automatic creation of storage location
data is allowed for goods issues and transfer postings.
This is advisable if we work with negative stocks and a material's first

movement may be an outward movement.
Note that the reversal movement for a goods issue, for example, movement
type 202 or 262, is not considered as an issue but as a receipt. If we only use
the automatic creation of storage location data for reversals of goods issues,
we do not have to allow negative stocks.
We have to allow automatic creation per plant first of all. We then have to
explicitly allow the creation of storage location data for each movement type.
The storage location data is only created if the quantity is posted to 'standard'
storage location stock. It is not created for receipts into a special stock (for
example, into sales order stock).We are using standard movement types for
automatic Storage Location Creation
1.78 Set Manual Account Assignment
Inventory Management and Physical Inventory → Goods Issue/Transfer
Postings→ Set Manual Account Assignment
Transaction
Code
OMB6
Configuratio
n
Description
In the R/3 System, account assignment is predefined via the automatic account
determination facility.
When we enter material movements that are assigned to a cost account, we can
enter the account number manually. In doing so, we change the account
assignment predefined as offsetting entry for inventory posting.
MvT Acct MvT Acct
201 309 -
202 310 -
292 311 -
301 - 312 -
302 - 313 -
303 - 314 -
304 - 317 -
1.79 Define Screen Layout
Inventory Management and Physical Inventory → Goods Issue/Transfer
Postings→ Define Screen Layout
Transaction
Code
OMBW
Configuratio
n
Description
In this step, we set the field selection for the movement types including goods
issues and transfer postings.
When creating a goods movement, the field selection determines which fields
• can be filled ( optional entry)
• must be filled (required entry)
• are suppressed fields

In Inventory Management, the field selection depends on the movement type.
The field selection defined for a movement type is valid for entering goods
movements and reservations.
Note
We do not maintain the input features of the G/L account and Reason
fields here, but in the following steps:
• Manual account assignment (for the G/L account field)
• Reason (for the Reason field)
Caution
The field selection for the movement type must correspond with the
following field selections:
• field status definition of the G/L account to which postings are
made (through the field status group)
• field selection of the posting key
We must take care that a mandatory entry in the G/L account is also defined as
a mandatory entry for the movement type.
1.80 Maintain Copy Rules for Reference Documents
Postings→ Maintain Copy Rules for Reference Documents
Transaction
Code
SPRO
Configuration
Description
In this step, we configure whether the items of the reference document are
proposed as selected on the item selection list when entering a document with
reference, or not.
The user can delete the check marks manually on the item selection list if

she/he does not want to adopt some items.
TCode Transaction text Prsl
MB11
Goods
Movement X
MB1A
Goods
Withdrawal X
MB1B Transfer Posting X
1.81 Set up Dynamic Availability Check
Postings → Set up Dynamic Availability Check
Transaction
Code
OMCP

Configuration
Description
In this step, we configure the dynamic availability check.
In Inventory Management, two types of availability check are carried out.
• availability check during the entry of reservations
• availability check during the entry of goods movements
The system checks whether the material to be withdrawn is available and
issues a message, if necessary.
The availability check is only carried out if:
• the material master record contains a checking group for the
availability check (MRP data)
• a checking rule is assigned to the transaction in Customizing
We can define
• for each movement type which type of message is issued (object
Movement type)
• which checking rules are supported (object Checking rule)
• per checking group and checking rule: which objects
(documents, stocks, material requirements) are included in the
availability check (object Define checking rule)
• per transaction of Inventory Management: which checking rule
applies (object Transaction codes)
MvT
Val.
update
Qty
update S Mvt Rec Cns
201 P
201 X
201 X K
201 X P
201 X
201 X X
201 X X K
201 X X P
202 P
202 X P
202 X
202 X X
202 X X K
202 X X P
221 Q
221 Q P
221 Q L
221 Q L P
221 X
221 X K
221 X Q
221 X Q P
This is an indicative table.
Checking Rule
ChR Description of checking rule
01 Checking rule 01

02 Checking rule 02
03 Checking rule 03
A SD order
AE SD order; make-to-order stock
AQ SD order; project stock
AV SD order; returnable packaging
AW SD order; consignment
B SD delivery
BB SD delivery; customer stock
BE
SD delivery; make-to-order
stock
BO Backorder processing
BQ SD delivery; project stock
BV
SD delivery; returnable
packaging
BW SD delivery; consignment
Define Checking Rule
Transaction Codes
TCode Transaction text ChR Checking rule
CO27 Picking list
MB11 Goods Movement
MB1A Goods Withdrawal 03
Checking rule
03
MB1B Transfer Posting
MB26 Picking list
MIGO_
GI Goods Movement
MIGO_ Transfer Posting

TR
1.82 Generate Physical Inventory Documents for Goods Movements
Postings →Generate Physical Inventory Documents for Goods
Movements
Transaction
Code
OMCC
Configuration
Description
In this step, we define for each plant and movement type whether a physical
inventory document is automatically generated when posting a goods
movement.
We can create a physical inventory document in addition to the material
document at the time of a goods movement. This function is important when
inventory differences are posted from the Warehouse Management System.
These inventory differences are thereby documented in Inventory
Management with a physical inventory document.
In order to create an inventory document in addition to a material document
for a goods movement, the following conditions must be met:
In the plant, we must define the transaction/event type WV for automatically
generated physical inventory documents.
We must define the document number assignment for this transaction/event
type.
Automatic generation of physical inventory documents must be allowed for the
movement type.
MvT Idoc
717 X
718 X
The above list is indicative
1.83 Check Tolerance Limits
→ Inventory Management and Physical Inventory → Goods Receipt → Set
Tolerance Limits

Transaction
Code
OMC0
Configuration
Description
In this step, we set the tolerance limits for goods receipts.
When processing a goods receipt, the system checks each item to determine
whether the goods receipt varies from the purchase order or the material
master data.
The different types of variances are defined by tolerance keys. For each
tolerance key, tolerance limits can be set per company code.
The following variances are checked in Inventory Management:
• Variance in the purchase order price quantity
(Explanation)
For this variance, two tolerance keys are provided:
o Tolerance key B1 (error message)
o We use tolerance key B1 to define the maximum percentage
variance. If the variance is greater than the maximum variance,
the system creates an error message. The user cannot post the
goods receipt.
o Tolerance key B2 (warning message)
o Tolerance key B2 defines the percentage variance from which a
warning message is to be issued. It is possible to post the goods
receipt.
• Variance for the moving average price of the material
(Explanation)
We use tolerance key VP to define the percentage variance from which a
warning message is issued. This warning message indicates a price change.
1.84 Create Storage Locations Automatically
→ Inventory Management and Physical Inventory → Goods Receipt →
Create Storage Locations Automatically
Transaction
Code
OMB3
Configuration
Description
data is allowed for goods receipts.
This is advisable if we want to post a goods receipt without having to maintain
the storage location view of the material master record in advance.
The storage location data is only created if the quantity is posted to 'standard'
storage location stock. It is not created for receipts into a special stock (for
example, into sales order stock).

1.85 Set Manual Account Assignment
Manual Account Assignment
Transaction
Code
OMCH
Configuration
Description
In the R/3 System, account assignment is predefined via the automatic
account determination facility.
When we enter goods receipts which are assigned to a cost account, we can
enter the account manually. In doing so, we change the account assignment
predefined as offsetting entry for inventory posting.

1.86 Define Screen Layout
Define Screen Layout
Transaction
Code
OMCJ
Configuration
Description
In this step, we set the field selection for the goods receipt movement types.
When entering a goods receipt, the field selection controls which fields
(account assignment fields) are
• ready for input ( optional entry fields)
• have to be filled (required entry fields)
• suppressed fields

In Inventory Management, the field selection depends on the movement type.
Maintain Copy Rules for Reference Documents
Transaction
Code
SPRO
Configuration
Description
reference, or not.
she/he does not want to adopt some items.
TCode Transaction text Prsl
MB01 Post Goods Receipt for PO X
MB0A Post Goods Receipt for PO X
MB1C Other Goods Receipts X
MB31
Order X
MBRL
Return Delivery for Matl
Document X
MBSF
Doc. X
MBSL Copy Material Document X
MBST Cancel Material Document X

1.88 Set Dynamic Availability Check
Dynamic Availability Check
Transaction
Code
OMCM
Configuration
Description
Movement Type
MvT
Val.
upd
ate
Qty
upd
ate S
M
vt
R
ec Cns
101 X Q B V
101 X Q B X
101 X Q B X P
101 X Q F
101 X Q F P
101 X B
101 X B A
101 X B V
101 X B X
101 X B X A
101 X B X V
101 X X B
101 X X B A
Checking Rule
ChR Description of checking rule
01 Checking rule 01
02 Checking rule 02
03 Checking rule 03
A SD order
AE
SD order; make-to-order
stock
AQ SD order; project stock
AV
SD order; returnable
packaging
AW SD order; consignment
B SD delivery
BB SD delivery; customer stock
BE
SD delivery; make-to-order
stock
BO Backorder processing
BQ SD delivery; project stock
BV
SD delivery; returnable
packaging
BW SD delivery; consignment
Transaction Code

MB01 Post Goods Receipt for PO
MB0A Post Goods Receipt for PO
MB1C Other Goods Receipts 03
Checking rule
03
MB31
Order 03
Checking rule
03
MBNL
Subsequent Delivery f. Material
Doc. 03
Checking rule
03
MBRL Return Delivery for Matl Document
MBSF
Doc.
MBSL Copy Material Document 03
Checking rule
03
MBST Cancel Material Document
MIGO_
GO Goods Movement
MIGO_
GR Goods Movement
1.89 Set “Delivery Completed” Indicator
“Delivery Completed” Indicator
Transaction
Code
SPRO
Configuration
Description
In this step, we can define that the R/3 System automatically suggests
• the delivery completed indicator for goods receipts if the delivered
quantity lies within the under/over-delivery tolerance
The "delivery completed" indicator has the following effects:
• The item is regarded as closed, even if the total quantity was not
delivered.
• A further delivery is not expected, may, however, arrive.
• In the next goods receipt, the item appears on the selection list but has
no selection indicator.
• The item can be reorganized even if the total quantity has not been
delivered.

Note
Even if the "delivery completed" indicator has not been set, an item is
considered closed once the total quantity has been delivered. This means
that the "delivery completed" indicator is not necessary in this case.
1.90 Set Expiration Date Check
Expiration Date Check
Transaction
Code
OMJ5
Configuration
Description
In this step, we set the material shelf life expiration date check for goods
receipts for each plant and movement type.
Prerequisites
The shelf life expiration date of a material can only be entered if:
• the minimum remaining shelf life is maintained in the material master
record
• The minimum remaining shelf life is the time the material must still be
usable, so that the goods receipt is accepted by the system. We can
define the time unit the system uses in the storage data of the material
master record in the ‘Period indicator’ field.
• the shelf life expiration date check is active in the plant
• the shelf life expiration date check is active for the movement type
No expiration date check has been activated for ITZ.
1.91 Create Storage Location automatically for automatic movements
→ Inventory Management and Physical Inventory → Automatic Movements
→ Create Storage Locations automatically
Transaction
Code
OMJ8
Configuration
Description
data is allowed for automatic goods movements.

This is advisable for goods movements via Shipping or when we post physical
inventory differences, for example.

The storage location data is only created if the quantity is posted to
'standard' storage location stock. It is not created for receipts into a
special stock (for example, into sales order stock).
1.92 Set manual account assignment for automatic movements
→ Set manual account assignment for automatic movements
Transaction
Code
OMJ9
Configuration
Description
Maintenance of this indicator is only useful in conjunction with movements for
which a G/L account can be entered or is provided by the calling program.
In the R/3 System, account assignment is predefined via the automatic
account determination facility.
When we enter material movements that are assigned to a cost account, we
can enter the account number manually. In doing so, we change the account
assignment predefined as offsetting entry for inventory posting.
MvT Acct MvT Acct
121 601
131 602
132 603 -
340 - 604 -
341 - 621 -
342 - 622 -
543 - 623 -

544 - 624 -
545 - 631 -
546 - 632 -
1.93 Define Screen Layout for automatic movements
→ Define Screen Layout
Transaction
Code
OMJA
Configuration
Description
In this step, we set the screen Layout for automatic movement types.
1.94 Generate Physical Inventory Documents for Goods Movements
→ Generate Physical Inventory Documents for Goods Movements
Transaction
Code
OMJC
Configuration
Description
In this step, we define for each plant and movement type whether a physical
inventory document is created automatically when a goods movement is
posted.

In conjunction with automatic movements, please also note that this indicator
is not set for goods movements which are created from within a physical
inventory since, in this case, the physical inventory document already exists.
This applies to movement types 701 to 708.
1.95 Define Default Values for Reservations
→ Inventory Management and Physical Inventory → Reservations → Define
Default Values
Transaction
Code
OMBN
Configuration
Description
In this step, we specify the default values for the following functions for each
plant:
• allow goods movements for reservations
• delete reservations
• create storage-location stock data automatically for reservations
Allow movements for reservations
We can only post a goods movement with reference to a reservation if the

Movement allowed indicator is set in the reservation item.
We are not using Reservations for ITZ.
Delete reservations
The management program sets the deletion indicator for reservation items
whose requirements date is earlier than the number of days specified here.
Create storage-location stock data automatically for reservations
When this indicator is set, the storage-location stock data is automatically
created when a reservation is posted. This applies both to planned outward
movements and planned receipts.
→ Inventory Management and Physical Inventory → Reservations → Define
Default Values
Transaction
Code
SPRO
Configuration
Description
reference, or not.
she/he does not want to adopt some items
1.97 Set Dynamic Availability Check for Reservations

→ Inventory Management and Physical Inventory → Reservations → Set
Dynamic Availability Check
Transaction
Code
OMB1
Configuration
Description
MB21
Create
Reservation 03 Checking rule 03
MB22
Change
Reservation 03 Checking rule 03

1.98 Default Values for Physical Inventory
→ Inventory Management and Physical Inventory → Physical Inventory →
Default Values for Physical Inventory
Transaction
Code
SPRO
Configuration
Description
In this step, we specify the following default values for physical inventory for
each plant:
Pre-settings for entering physical inventory documents
• the stock type (unrestricted-use, in quality inspection, blocked)
• the indicator for batch determination (in the foreground or in the
background)
• the unit of entry (stock keeping unit or unit of issue)
These indicators are suggested as default values when we enter a physical
inventory document. But we can also change them there.
Pre-settings for entering physical inventory documents
• Reason for inventory difference
• The default value we specify here is only displayed when we enter an
inventory difference without reference to the corresponding document.
But we can also change the default value here.

Note:
We only see this field when we enter inventory differences if we have
activated it in the step Field selection for physical inventory.
1.99 Record Reasons for Goods Movements
→ Inventory Management and Physical Inventory → Movement Types →
Record Reasons for Goods Movements
Transaction
Code
OMBS
Configuration
Description
In this step, we can carry out the following for each movement type:
• maintain the input status of the Reason field
• store a key that gives a reason for the movement (for example, reason
for return delivery) and a corresponding text.
When we enter a goods movement, we can only enter reasons which have been
defined for the movement type here.
1.100 Copy, Change Movement Types
→ Inventory Management and Physical Inventory → Movement Types →
Copy, Change Movement Types
Transaction
Code
OMJJ
Configuration
Description
In this step, we can
• change the setting of existing movement types
• define new movement types
When we enter a goods movement, we must always enter the movement type.
The movement type has important control functions in Inventory Management. It
is essential for
• updating the quantity fields
• updating the stock and consumption accounts
• selection of the fields used for entering documents
• printing goods receipt/issue slips

Materials Management – Valuation and Account Assignment
1.101 Split Valuation
→ Valuation and Account Assignment → Split Valuation → Activate Split
Valuation
Transaction
Code
OMW0
Configuration
Description
You configure whether split valuation is allowed at your company. If you
generally allow split valuation, this does not mean that you must valuate each
material on this basis. You decide whether to do so or not for a particular
material when creating the material master record.
1.102 Configure Split Valuation
→ Valuation and Account Assignment → Split Valuation → Configure Split
Valuation
Transaction
Code
OMWC
Configuration
Description
In split valuation, we can distinguish between partial stocks of a material
according to certain criteria and valuate them separately.
• The material stock is divided according to valuation category and
valuation type:
• The valuation category determines how the partial stocks are divided,
that is, according to which criteria.
• The valuation type describes the characteristics of the individual stocks.
• With the function "Setting" we can determine:
 which valuation categories exist in our company (global
categories)
 which valuation types exist in our company (global types)
 which valuation types belong to which valuation category
 which valuation categories exist in a valuation area (local
categories)
To select split valuation, proceed as follows:
1. Determine the valuation categories and valuation types that are
allowed for all valuation areas:

o Global valuation categories via menu "Goto --> Global
Categories"
o Global valuation types via menu "Goto --> Global Types"
2. Allocate the valuation types to the valuation categories.
a) Select "Goto --> Global Categories".
b) Position the cursor on a valuation category and select
"Goto --> Global Categories --> Allocations --> Types-
>Category".
c) Activate the valuation types you want.

3. Determine the local valuation categories for each valuation area.
a) Select "Goto --> Local definitions".
b) Position the cursor on a valuation area and select "Goto -->
Local Definitions --> Allocate Categories->Org.units". You
obtain a list of the global valuation categories.
c) Activate the categories to be used in this valuation area.
The system creates the local valuation types based on the allocations
under point 2.

SAP MM Config Guide

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SAP MM Config Guide