SAP MM Training - Overview of Procurement Processes (Video 2) | SAP MM Material Management

an only mode hello and welcome again to our second day of SAT mm training and today we're going to start our first mm topic which is overview of the procurement processes okay so let us start so the topics that we're going to cover in this video will be about the procurement cycle what is the procurement cycle what is the stock transfer order what is the subcontracting vendor confinement organization level in purchasing then we'll so up to here it's all about more practical just to understand the procurement processes shortly and then the second half of the training today we'll start practicals so first we'll start with the ESPE navigation so with some practical support set City navigations and I will do some practical on a city server about how to create a city purchase order and how to create a Goods reshaped and an invoice verification okay so let us start with our first topic today will be procurement cycle okay also known as procure-to-pay so what is the procurement cycle okay so in general what we're talking about here is the general procurement cycle okay general procurement cycle okay so basically you can look at this diagram which is talking about which is showing you basically the standard procurement cycle okay so let's see what happens what first one second one third okay so let us start so first one so first of all the requirement number one you can look at the number one determination of requirement because the first of all the requirement will be given okay so so that because you will get the requirement or from working as as a purchasing officer I'll get some sort of requirement from the business ok those requirements can come as manually created requirement or can curated by FCP as well okay so I said we can automatically create some requirements so it recipe needs some sort of some material to manufacture some other product it will automatically create requirement oh I think or MRP okay which we'll talk about later again it in details about MRP or the requirement can be created manually by someone in the business okay so we look at the requirement first there's a step number one then step number two is a determination of source of supply because second thing is if I am working as a purchasing officer in a company okay I'll first get the requirement second step those might ask to see where should I buy my goods okay so that's called determination of source of supply where should we get the supply from okay we need to select a vendor so basically what we'll do we'll we'll ask a couple of vendor for a quotation okay so this is a product we want this much quantity we want give us a quotation ok so then so that we can decide which is a right source of supply okay so once we have sent the requirement to say so just a request for quotation what we call it RFQ request for quotation to a couple of vendors three four vendors and they will come back with the price and the conditions of shipment and all that and then we'll select a vendor at stage number three okay so we'll see okay this one that looks good the price is good and the delivering condition is good they flip delivering free as well so and they can deliver the goods in five days so this one looks good rather than others so looks like this vendor and would reject the others which we don't like okay so once you stuck in the vendor then next step will be purchase order processing so in the next step as a purchasing officer or be creating a purchase order okay again purchase order can be cured manually or purchase order can be created automatically by asipi system as well which we'll see later on in the practicals so purchase order will be created and sent to that vendor then next step will be step number five will be your purchase order monitoring okay so we're myself or someone in the business will be monitoring all the Ola purchase order whatever purchase already sent to the vendor so the monitoring that okay this is supposed to be delivered today or it was supposed to deliver yesterday so we'll just need to keep an eye on that okay when it was supposed to deliver and when the actual delivery is happening so there's a monitoring so once so next step will be number six will be your goodies hips so once the vendor has send you the goods okay you will doing that goods shift in the system okay you will make an entry in the system which is called good shape that we have received the goods so that system can post add that goods to the inventory okay as the stock okay then next step will be invoice verification number seven okay more efficient so once we receive the goods at number six number seven is will be we'll create an invoice also for the customer that means we have received the goods now we need to pay to the vendors okay so what that will create an invoice for the customer okay and that means we created an emotional system in the system and the last step or step number eight will be payment processing so there will be payment front running in the system which will send a payment as per the in was created at number seven and send those payment to the vendor okay so that's a payment processing so here you can see this is an eight step process starting from one from a determination of requirement up to the last payment processing where we give the money to the vendor so that's your generic procurement cycle okay now let's continue so now we'll talk about some vertical stuff so before we move on as you slowly start to understand SAT mmm from practically as well okay so we need to understand some sort of protocol things as well okay so what does stock transport order me so so in the practical later on obvi cutting some stock transport orders but before actuate them you need to understand what actually is stock transfer transport order okay it's also known as stock transfer orders or stock transport orders same thing okay so let's see some sorta cool stuff that what is stock transport order okay so stock transporter order also known as sto is nothing is just delivering a goose between one plant to the plant within the same company for example if my company is in Australia is a national-level company okay and one planet is in Melbourne one pound is in Sydney so what will happen is Melbourne plant has the requirements to get the goods from the other plants so in that case sto will be created by Melbourne plant and that means goods will be sent by the Sydney plant for example so the issuing plant will be sent the goods and the Melbourne plant will be receiving the goods so the stock transfer between the two plants is generated by stos okay so excuse nothing it just like a purchase order but it's called Sto okay so we'll do some more practical later on about XTO then we need to understand what is subcontracting okay what is the term subcontracting okay so subcontracting is nothing sub contracting is used where for example if I give example say for example my company is manufacturing a laptop okay so what we're doing is women we internally manufacturing a lot of other components for the making a laptop like we internally making motherboard and some other parts like a hard disk and all that but at the same time we were buying some some stuff from the third party as well okay as a raw material and we're doing the assembly okay so when we're doing the assembly of the system probably we can say that okay assembly part we want to give to a third party this is called third the secod subcontracting look at that means we're doing everything for many touching the laptop but just for the assembly of the laptop okay we want to subcontract it that means a third event third party vendor or another small company will give the job to them okay and what they will do is they will just do the assembly so we'll send them all the goods like motherboard the the body of the left rock hard disk and whatever is required keypad on everything screen mohnish everything and they will just do the assembly okay and once they have done the assembly they will return us the final laptop so basically what we're doing is we sending them raw materials all the components required to make a laptop and what we getting back is a laptop look at their subcontracting or they are called my subcontractor understand okay so that's what subcontracting is okay so here you can see so here you can see but chasing that you can see that three different columns here in the three different blocks here in the this picture purchasing inventory management and invoice verification okay so if you look at the purchasing first so what will happen is a subcontracting purchase order will be created there's a special type of purchase order which is called subcontract purchase order and will be created and sent to the contractor who is waiting for the components okay and if you look at the same from the inventory management point of view is so from inventory management point of view what we're doing is with sending them all the goods to require to make a laptop okay so we're sending them goods and what we're getting back is good to see brother finished material that means the final laptop will be received so send them all the raw materials all the components of the laptop and finally we'll get back finished materials use a laptop okay and third block is your invoice verification so finally the inverse will be created for the work they have done and they will be paid for the for the job okay so that's your subcontracting okay here you at this stage we'll talk about subcontrol again later on in more detail practically but here you just need to understand what does subcontracting means okay now we talked about vendor consignment okay what does printer assignment ways so when the consignment is nothing when they can Simon is something like let me give you example first when the consignment is like so in the previous purchasing processes as I told you that you know what we do is we raise a purchase order for the vendor okay and when they will send that goods to us right and then we'll pay them okay very simple process but in case of vendor consignment what will happen is what the vendor will do is vendor will send vendor will keep their goods in my company premises okay so let me explain you this one okay so this is my company okay and here is my vendor okay so because I'm buying a lot of stuff from this vendor okay so what this vendor will do this vendor will send some stock okay they will keep this stock in my company okay that means they have this is vendor stock so that's better vendor stock okay whatever Rome does recording us so they keeping their stock where in my company premises understand okay they keeping this stock in my company premises that means who is the owner of the of this talk whose honor of this talk the same vendor we are not the owner because we do think there is a purchase order we didn't pay for anything and it's not a part of our inventory so for this talk still the vendor is responsible vendor is own order but whenever my company require the same material okay so what we'll do is my company will raise the purchase order for them okay and consume the stock from here okay for example the stock is a stock for some products 800 pieces they put in my company premises okay tomorrow my term may require 10 pieces of the same product so what my company will do my company will read ours is a purchase order for 10 pieces and we'll send a purchase order to the vendor okay with that vendor okay we raise a purchase order for 10 pieces at the same time my company will consume 10 pieces from here so I'm taking 10 pieces that's why I'm staging a purchase order for 10 pieces so here after raising the 10 pieces order there will be 90 left so again those 90 will be who is the owner from those 90 pieces again the vendor so whenever my company will require more stock will raise another purchase order and will consume them so that means the stock is sitting in mine company premises but still the boundaries owner okay so this is called consignment stock okay this equal consignment stock where the course will be my company premises but I'm not the owner yet look at the vendor is still the owner so I'll be the owner whenever I raise the purchase order and I will take some and I'll consume some okay so let's look at this picture you can see here three boxes again purchasing inventory inwards verification okay so in purchasing you can see what we do is we create a consignment report we'll talk about this record later on okay and so we can also create a purchase order for consignment item as well okay so whenever we want to consume some item from that we can create a purchase order for consignment okay and that purchase order will be received by them and that means as soon as the we have created a purchase order will consume those items okay will consume those items and and again whatever the quantity x + 90 pieces again the still the vendor is responsible or the owner of those pieces okay and whatever we have consumed we'll first thing is so if you have taken ten pieces then those ten pieces will be added to my inventory and finally whatever we have consumed will send will create an invoice and we'll pay the vendor for that okay so that you can add consignment process or when the consignment okay and now another critical thing is we'll talk about all good levels in the procurement process of what are the different types of all levels in SP for the procurement or SP mm so basically these are the five will left org let the main five org level in SP mm okay on the top we have client under that we have company code under that we have plant under that we have storage location and under that we have purchasing organization purchasing organization have for the purchasing group okay so these are the main five or six available so let's discuss one by one what is client also what is client then what is company code and all that so let's see what is client okay so client is a unit with s AP that it that is it self-contained both in legal and organized system and in terms of mass storage and conversion data okay from business point of view the client could represent a corporate group so client is nothing client is just like it's a legal term that we require we're all the master data and translation data are stored against this client okay for example I haven't introduced you with the city yet but let me show you something so whenever you log into it SFP here you can see a client see line so that's a client I mean that kind feels different but what I'm saying mean is client is your it is like a if you want to separate a corporate group that's a client over that's a card where all the master transition data will be stored against their client okay they surprised at the top level and under that we have a thing called company code under kind we have a single company code okay so this is a smallest org unit test represent an independent and legal accounting entity okay it is required by law to provide balance sheet and profit and loss statements so basically what communica days is a smallest org unit okay which is used in the finance side of a city okay and it is required by law it is mandated by law to have a company code where basically we create all the balance sheet and profit and loss statement so for example if if my company is in to multinational company and they're all over the world so one plant one one one branch is here in Australia one in the u.s. one in Canada so maybe I can have a one complete code for Australia one coming court for us one company code for Canada okay so that's a comical then the next level down is we have plant over this plant so plant is an org unit with logistic desktop device the enterprise from the viewpoint view point of production procurement mature planning so plant plant is nothing plant is where from mmm point of view plant is where is a logistic a logistic part of a city we have for myself mmm point of view as plant is where all the stock are kept or the inventory our cap so plant from the sales point of view as the sales and distribution point of view is your the place from where all the goods are sent to the customer okay from SD point of your plant is the place from where the coos are sent to the customer and from mm point of view said with a stocks stock perimetry are kept and from production planning point of view planned is nothing is just where all the production is happening with all the production is happening there should plant from sa P P P okay so basically from mm side where all the stock is kept and and all that that's a plant then you have storage location under plant that next level down is store location okay is an oak unit that facilitates the differentiation of stocks of material within a plant inventory management on a quality level is carried out in the plant at this level so basically in simple words what is total location stuck in the trail location is nothing is just if you want to divide your plant okay so the Division of the pen will be called store location nothing else so here in the previous screen if you want to divide your plant or here if you want to divide a plan to cook three different parts so they will be the store location okay there's a store location okay that's a there's a store location where the stocks are kept at different levels okay next level is purchasing organization look what is purchasing organization so this is an org unit within logistic the subdivides enterprise according to the purchasing requirement you can have a centralized or decentralized purchasing for a company so purchasing you possessing org is nothing it's just a division of the company by the procurement process okay so i'll show you some next slides where you will have a better understanding of particular nation so let's just be with me i like learn more about the purchasing organization in a minute okay so purchasing group what is pertinent group is a key purchasing group will be assigned under purchasing organization okay and purchasing hope is nothing is a key of buyer or a group of buyer who is or are responsible for the procurement of material or a class of machine so group is nothing group broken a group within a company can be one person or can be more than one person okay who are responsible for the procurement of something for example in a company one group or one person can be responsible to buy all the raw materials second person is also a group number two who is a part or the one person or more than one person who is responsible to buy all the services okay there's a third person another third person who is also called a group number three which is responsible to buy all the all the consumable materials you know what we know what I mean so that's a purchasing group where you want to divide the people or group of people that who's responsible to buy a bot we're dividing the job that okay you responsible to buy this that group is wants to buy that thing and this part to buy that one okay that's a group okay so organize purchasing organization the thing is just dividing of the enterprise into different parts okay so for example I can say same item is in Australia and I have said one plant in four different cities so the one in Melbourne Sydney Adelaide input okay so I can say ok I can have one I think trade one common centralized purchasing org for all the four different location for different branches or I can have a separate one for each of them that's okay this is a first purchase organization responsive for Melbourne only second one responsible for the second one third for third and fourth or fourth or I can have one common on for all okay that's a purchase organization so what we'll see more more about purchasing organization and group in this slide so here now we're going to talk about in more details about this what is purchasing organization or group okay so basically if you if you want to see in more details about what types of purchasing organization can be okay so let's have a look at this one so this one is plant specific purchasing organization now what is plan specific this is the example I was just giving you right now okay that what is part specific a purchasing AAG is possible for Peru Korea material for just one plant is the name explained same plant specific okay for plant number one particular organization one is responsible part number two which is over two is responsible of turn number three but is up three is responsible okay so one-to-one connection plant specific for one plant only one specific purchasing organization is responsible for the one-to-one connection there's a plant specific second one is cross plant as the name is saying cross plant that means a purchasing org is responsible for procurement materials for several plants or more than one plant so here you can see there's only one purchasing organization which I was giving example before that you can have one centralized purchasing organization which is responsible for procurement from the all the plants but one plant to maybe third and fourth as well look at this cross plant purchasing organization okay so so first one was plant specific now we have correspond where one can be responsible for several plants okay more material for several plants and then we have cross company code okay we have cause company code purchasing organization so same as the previous example where the purchasing organization is common for the plants but those plants can belong to company different company codes for example one plant in is Australia one in in Canada one in the US okay so they both offer your three of them belongs to the same purchasing organization only one purchasing organization is responsible for all three of them however those three are basically belonging to different company code okay so what it means here here is a purchasing or can be responsible for multiple company codes okay so where the company where the purchasing of August is possible for the multiple company called more than one company code like this example okay so let's continue so the daesil about all all of a critical part of first half of today fashion now in the second part we'll do some practical as well and if you're new to SCP then this is for you about I'll talk about some SP navigation okay so i'll show you how the city system works and all that and the navigation within se pieces them okay so so let's see some practicals and within a city navigation I'm going to teach you today is what is a city GUI GUI icon and how to log into a CP how to reset your password in SAV standard recipe screen for all modules command bar menu path favorite transaction f1 help for search multiple space session ok so these things we'll see here in a minute so basically once you enroll for the training then I've provided a link ok that you can download to your PC and that link will create a little link like this one s if you log on on your desktop okay so what I need to do is to double click on that little link and here okay so bezel and when you double click on that link it will open something like this okay so you need to log in to ACC so double click on eg see here it will show you this screen where you can enter your user ID that's given to you and your password and press Enter okay so you will now see the s8b screen okay another thing I want to tell you let me minimize this let me double click on this one again so when you log in here you can also click on new password to reset your password if you want to reset a password okay here we can enter a region password and ID click on new password and here okay I need to log off from the other session then it will allow me give me second if I click on new password here it will ask you to enter the new password okay if you want you can the server password from here I can cancel this one for now okay so that's I'm logged in to the SCP screen so that's that's a common screen basically okay now you have seen SCP login icon how to login to our city how to reset a password in standard ICP screen for all modules whether I'm working in in SD whether I'm working in PP whether I'm working in finance so everyone who will log on to the system they will log in the with the same step that I've shown you and they all see the same screen here ok but they all have their different access if I'm the IMM person I found the element user I will only have access to the stuff that I can do within mmm of I can't do anything with finance or production planning or sales and distribution ok same with other people whatever they're supposed to do they will have only access to those things ok but everyone will log onto the same screen and they will see the same screen ok so if I don't have access to something I will get an boarding message that ok you don't have access if I try to do something which I'm not supposed to do or not supposed to have access come on bar so that's your command bar here here so here you can type your transaction ok or you can use a menu part for example if you want to create a purchase order so what I can do is you can go to to logistic or you can open sales and distribution open sorry not Susan much material management purchasing and then you can open purchase order and create MC this one create a purchase order I can double click on this one to create a purchase order and there is a second method as well I'll show you so there is a purchase order entry screen let me go back you can see that transaction code is Emmy 21 Emmy 21 I can directly type here Emmy 21 so most people will just as you work with SCP you automatically remember this transaction code you do not need to memorize the automatically remember okay here on the menu bar I don't need to look at here as well I remember Emmy 21 Emmy I can type here Emmy 21 and enter and here you can see it will take you to the potato database entry screen okay and any transaction that I use on the day-to-day basis okay whether I am a consultant whether I am an end user in sfe I can add their translations favorite here okay so see the favorite here okay and the favorite I can right click here and again and insert click on insert transaction and for example ma 2009 I can tap here and I can kick see this in my favorites so next time I don't need to go into this long menu path here instead of that I can i can click double-click on my shortcut straight away I can double click here and I can create my super cheese order like that okay another thing you can do is you can also create some folders under favorite oak and the favorite if I right-click on it if I click on insert folder and here give it the folder name say purchase orders so here you can see the folder okay and under a folder you can insert some transaction for example this one I can insert here I can drag and drop as well see see that's under purchase order okay so under potato that's the one to create purchase order and there is another one Emme 22 and to change a purchase order I can right click on this one this folder insert transaction ma 22 n and I can add that one here okay you can also drag them up and down wherever you want to put them like that or you can click on this up and down button to move them up and down okay so there's my folder and a higher credit to favorites here okay so that's a favorite transaction and then f1 help what is that fun help so basically for example whenever you run a translation let me run whenever you see a screen for example let me open this the screen for purchase order so that I'll talk about the screen in a minute in more details but whenever you have a screen here like that okay any field so you can see there so many field here and if you want to know that what is this what is this for example what is this field for okay see when de you can put the cursor on that field and click on f1 on a PC for here I'm clicking on f1 it will give me that detail of that field what that field is all about okay there's a vendor or supplying plant and there's the whole detail about the field vendor this event the field okay for example next I can show you say for example this another field here called this one a what is this put the cursor here press f1 so this is account assignment category what is the Komsomol category you can see the details here you can read it okay so you don't need to ask anything you can just use the f1 help to know about any field okay and that's f1 help and then also you have F for help what is F for help f what happens nothing is just like if you want to interact so for example here you see purchase organization in you could use a purchase organization okay I need to set a purchase organisation so what are my option to select a purchase organization I can click on this little scale button on the corner here that will give me the list of all the possible entries so I can pick something from here okay I can pick something from here as a purchase organization okay or I can put the cursor on that field and click on f4 on my PC but click on f4 same thing will happen same thing this will give you the sir a available option for that field okay so either you click on f4 or you click on this little button on any field same thing okay to see the possible entries okay so and also multiple recipe session at the same time you can open more than one session and maximum up to six okay for example here I am working on this screen okay I don't want to leave this screen but immediately I need to do something else on another city screen so what I can do is I can click on this little button on the top see on the little button create new session click on that it will open one more session see there's another session I can show you the previous session so that's our old session and behind the screen and that's a new session okay and here I can start something else for example I want to create a vendor I can create by xk0 one transaction like that and at the same time you want to put another change in that CP I can open one more screen click on this little button again and to open the third screen see that's the third screen so here I can jump to any screen here this if you maximize it exercise that if you want to go to any screen you can see from the bottom you can click on any skin okay and you can open in the standard system you can open maximum up to six screen maximum ok so that's your SP navigation okay so as we this is just an introduction only as we go further you will automatically learn more about the navigation within s AP and shortcuts and all that okay so that's just the beginning now we start some practical from here okay so introduction to SMB purchase order cycle so what is purchase or recycle so I'll give you just a little bit practical information and some protocol as well about the purchase order cycle so what is not a cycle basically start with creating your purchase order ok so a city purchase order so first of all we do is we create a purchase order and production code is mh17 n okay and second step will be after getting the purchase order when the goods are received okay we have present a purchase order send it to the vendor when the has sent that goods to us now what we'll do we'll receive them the second step will be good received using the Toleration mig oh my go okay so we'll receive the goods in sapa system and once we have received the goods what is the next step we need to pay to the vendor okay so third step will be in was document will create an invoice for the vendor using the transaction called morrow m iro okay that's the three steps okay so just a brief in three steps we're going to do some practical here and i'll be showing you how you can create a purchase order how you can do the good received an MCP and finally how you can create a invoice document okay so let us start with the first one which is your purchase order how we can create a purchase or a recipe okay so let me show you how we can create a purchase order before that let me show you this screen okay so purchase order can be created if you look at this screen purchase order can be created as a reference from a quotation okay or from a requisition from a contract or can be created without any reference okay so at the moment now I'll be creating without any reference in the next chapter I will be showing you how you can create with reference cells book okay so let me go to purchase order with no man or reference okay so what we need to do is to see double ma 21 I'm I can type here or I can double-click on the solution M e 21 and enter okay so here basically what you initially in first time when you really run this transaction you will see some screen like this so you might see some screen like this or maybe something like this the first time you run okay or maybe let me log off and log back in again so that I can show you what exactly you will see first when you create a purchase order so Emmy 21 and enter you maybe because I remove that that's why you are showing you mercy some some addiction screen on the left hand side okay just there's a they should be a close button you can click on that and that's a different thing which is document overview you can turn it off and on for now I will leave it off what we will talk about this one later on in the first time you will see all of them like close like this okay so basically data is divided into three views okay first we is the header okay second we use the item overview and another view is item which is a detail of this item okay so header here item here item only so let us open the first toy review okay let's open the first to review and later on we'll open the third view as well okay so here I'm creating a purchase order okay now how first thing is I need to enter a vendor see enter a vendor okay so what I can do is I can I can enter a vendor number now how to search for a vendor okay I already created one went through the system that I'll be using now and the next chapter I'll show you how to get our own vendor for now you can use the same vendor and I can you can click on this little search button to find the vendor okay I created a vendor called study nest vendor here you can search for the name say called study I can say study star star means give me everything given the list of all the vendor whose name is starting this study let me study something study ABC study XY that study nest give me everything so if I click there one it will give me the list of all the minders starting each study okay so see the bottom one studying as vendor one just just use this one and the number of this one day is one zero zero five zero one okay so for now use this vendor or you can if you remember the number you can't actually type the number here okay 105 zero one okay and press enter okay and you can see system will guide you automatically that what are the mandatory fields you need to enter okay so at the bottom you can see is showing me a error message the bottom is saying enter purchasing organization okay it's automatically putting the cursor on that field where I need to enter some data okay so here I can enter purchasing organization so for now you can this you can search from here there's so many purchasing organization but I want you to just use one that I'm using here there's so many here but I want to use to use thousand okay thousand purchasing organization then press ENTER again it will guide you next step is saying that give me the purchasing group ok purchasing hope you can use any specific group doesn't matter purchasing or does matter but for now be consistent just use the purchasing group as 0 0 0 first one ok and that's it now press ENTER again ok so there is no error anymore now there's the header data we have entered the header for that customer so those for the vendor and the purchasing go put in company code now we'll enter some material data here ok so what is material so here you can search further much he'll see this little search button I can search for the Micheel so here you can do some search for the material by description ok for example I can say ok most most start give everything is starting with most let's see if we have some data or not ok there a couple of them but for now don't use them ok just use the code that I'm using here and then I'll show you how you can create your own material later on okay so HT 1010 I want you to use for now ok and press enter you can see there is a at the bottom there is an error message enter plant and the cursor is automatically on the plant so here enter the plan number thousand ok user part number thousand as I'm using here enter and also purchase order quantity see here particular quantity it automatically popping up the bottom screen let me close it here you can enter the purchase order quantity say I want say five pieces of this product okay for some reason so it's showing the error that there is no price setup okay so if this automatically go into that scheme and here it's asking me to enter the price for not just enter some price if $12 per piece or whatever price you want to put okay now you can see there is no error okay now you can see the data is divided to three different areas so the first thing you need to make sure there is no error okay and you can double check this by clicking on this little button see this one check this button check if I click on this button check it will do a check if there is any other at the bottom you can see there is no message issue didn't check that means everything is fine so here you can see data is divided to three different areas top is headed death header and then item details sorry header and this headers and DEF items that items item overview and this item detail head header let me open it header item over you item detail if open header there is a header where you enter the vendor and purchasing organization and all that what is item atom is where you have entered the material and quantity and price okay and the third one is the detail of the item the same ad or the number 10 so here is the detail of the third item here you can see virtual data what is the material group of this much field and quantity wait here you can see the weight okay you can see the data in different tabs delivery schedule it goes to deliver on this date delivery inverse condition condition here you can see some condition like pricing condition and all that okay so data is divided the three different areas I can enter one more item here Saturn item number second say X T 10 20 okay and so on we'll be set to enter okay and plant will be thousand okay again it's asking for the price I can enter some price here or here I can say $4 that's it okay if I click on the check everything is good okay now again you can notice here is that the first to view a W item overview and the third item details okay so in the item in the middle view you can see it's my items this an overview only but if you want to see the detail of each item you need to click on the third box see a third fourth third one click on the third one here you can see there you can pick any item what item you want to see the detail okay I can save the second one select second one and you can see the detail of the second item and anytime I can select the first one I can change it and I can see the detail of the first one like that okay so here we have the purchase order ready in brief you can also see the over print preview see this button little button print preview if I click on this print preview that's a place for you okay that's a print that are we going to send to the customer this is just a dummy print and it can be changed by the developer okay and I can go back so there's a print preview and I can save it when you save it system will generate a number for you okay just keep an eye see at the bottom of the screen you can see a message standard P you created under the number four five triple zero one seven five six three okay so you can note down this number even if you don't you can search it later on click on a message if you look on this screen and copy that number okay I can save this number say here that's what is our number okay so that's a purchase order let me go through some screen so as I said before that a purchase order item you can enter more than one item okay ten twenty thirty forty or more you can even enter okay and there's a format look like for the purchase order okay and you can have a header data and item specific data on the purchase order as I was showing you before now we'll see these little buttons so there's a little button to create a new order that's our button to open existing one if I click on this button here I can is the message remember the last potato row number okay I can Oh open it or I can enter a purchase order number and click another document and here I can open that document okay so right now it's in the display mode see the middle button this one I can click on this button to go to the chain mode see there's a change mode I can change it or I can click on this button again to go to the display mode okay so that button will be the interface between chain mode and display mode okay okay next is output what is the way you once we have created the order we can send it to the customer okay why and outputs output can be we can bring the purchase order and post it to the part to the vendor we can fix them we can email them we can send by EDI as well okay electronic data interchange okay so electronical it will be go to the into their SP system automatically okay so at the moment so you can see here if you see the message if you see if I click on messages here see messages you can see how it is going is going back print out is going to be printed that's how it is set up okay that is all set up set up print it is going to print out okay so let me save it okay and how you can set the set up the output okay you can set okay for when the number one two three four I want to send by email for vendor number two three four five I want to print for third vendor I want to send them by fax order to do that I'll show you let me open one more screen there's a transition called mn0 for to create the message what we got messages or output okay MN 0 4 you can type it here straight away m n0 4 enter and here see in this construct output type as this is just additional thing I'm showing you here any u n you okay after Center it will ask you that how you want to create the what key combination we want to use just like the second one for now which is for document type purchasing or and vendor like the second one and here you can say ok document type will be sales the purchasing document type we use is show you we'll talk about this one later on in detail but for now you just remember that we're using NB the SEC NB here NB what is the organization we use 1,000 enter your vendor number here so for example than Samantha okay the hours using press enter or this is already there we enter the second one okay and here see the medium you open this one you can select here how you want to send it you want to send it by print fax or e-mail or EDI okay so you can say okay I want to send it back I want to print it you can print it so number one is print number two is fax or you can say I want to fix it or to fax it and save it okay so whatever setting is done for that vendor system will pick it up from the vendor master okay so vendor must all be showing in the next video that where the fax number and email address are kept in the vendor master but for now just remember this one that here you can select the output okay okay so we'll come back to our previous point where we have created our purchase order okay now what is always created and sent to the vendor now what vendor will do the vendor will send that goose to us okay and our next step will be go to the ship that's a second point the second one okay let's do that goose egg ship is shipped using transaction code Michael MIG oh okay so you can again now let's I'll copy this particular number and I'll go back and also you can just if you're new to si P let me open this the same purchase order if you need to SI p you can just play with the difficulty can go to the different screen and different tabs and just make it yourself familiar with the the screen of the purchase order okay it looks complicated but it's not first tell me if you're looking at it is complicated but actually once you start using it you will get more familiar every day okay so so there's a already now second step we're going to do is to show ADA good the shape okay so to do that go to safety you can use the menu part header say logistic virtual management purchasing inventory this movement so here sorry under inventory goods movement Michael okay or you can type here straight away my go or what I'll do out create a favorite here Michael ok so double click on my go okay so double-click on my go to do the gold received so basically we will go in to do the going to do the good received okay and so what is those good shape so vendor has send you the goods okay sender the goods now we're going to do that go to shape in that city system and put them in the stock okay so once you let me start it again so double-click on my go and here but the fault is using that's the screen go to the sheet by default using good is hip and here singham purchase order they would like that make sure it goes the shape a purchase order and here enter a purchase order number so that's my purchase order or copy that and I will paste that here okay and click on this little execute button okay so as in here they recruited system will read from a purchase order that there were two items we send to the cust to the vendor and five all the quantity into was a quantity for what we are for okay so here you can maybe you have received four of the four of the pieces you can change the quantity here that how many we received against what we have ordered okay or you can leave it like that okay by default we read the actual quantity you can change it or can leave it like that okay now once you are happy that okay that you you are happy with the quality so someone has done physically the check the quality of the goods and they're happy with the goods okay so what we'll do is we say okay and okay so once you do the okay that means system will accept that and the point to be noted here is good received is controlled something while you think or movement types okay we'll talk about details movement in them for the movement absolute home again but moment types is like one hundred and one more types is to pull the go to shape to the warehouse and 122 is the return to the delivery for example here you can see by default what is the moment type one zero one okay don't touch it don't leave it don't change it but what I want to show you is if on the search button for movement types here you can see all the possible movement types okay so I returned delivery to the vendor written they live for good is or good received box stock but this one is using 101 okay go to set for purchase order into warehouse okay so leave it like 101 here but what I'm saying is 101 will is just to do with the putting the stock in there in the elementary in the inner warehouse okay so okay so let's continue so here you can take this check boxes here what if they are okay okay and what you can do is you can click on this check button see the check button I can click on a check button to see if everything is fine it will it will do the check that everything is okay or not okay it's showing me to error enter the store location okay so it's asking me enter the store location so here is the store location I need to enter okay so at the moment if I search for the storage location there's so many stores okay in here but for now you just use the first one zero zero zero one or you can type it manually here as well zero zero zero one press enter okay now we have entered that store location it will change that it will show the description of the store location instead of a key like if I introduce you to zero one press enter it which is a description of the so that's a description of the store location thing else and that's I think something in Germany German language so once you have done this click on the check again price change of this in month of this similar that this is ignore this evolving only just ignore that so so it showing you one has a green light one as a yellow light yeah that is nothing just a warning you can click on the yellow light it will show there's a price change or something okay just ignore this main thing is there shouldn't be any red light that means error okay warning is fine so if we're showing your green or if you're showing your yellow everything is okay so once his green or yellow you can click on the post see the post you can click on post or you can save it okay similarly click on a post that means we have received that goods into our store ok click on post it will do the posting for the purchase order done so at the bottom you can see it generated a material document see at the bottom of the screen I can click on the bottom message and I can copy the material document number so that slug you can call this is the P ok we created and then we have created my go p-- or vs. if there's a document number okay and also then when you create the goods saved you can also enter their delivery note number ok delivered node number that means the vendor has hence their their delivery number ok say one two three four okay and Bill of Lading you can also enter that below grading is nothing is just like the document number given by the shipping party or the courier company ok or whoever sent the goods were transport so they can survey the five six seven eight what our number is you can also enter this number if you want okay so two steps are done so we have basically created a purchase order now we have done the goods ship now finally what we need to do is to first step in one document we need to create an invoice for the purchase order so that's the invoicing so in verse you already know what is invoice okay the most is document that okay this is what we're going to pay you okay we're creating a billing document is inversing document okay so in most account will have all the information about the goods the delivered what we're going to pay them and everything there does the vendor details everything ok that's all in that's information you can see on an invoice okay so to do the invoice the code is my row Mir oh okay so I can add here and the favorite Mir oh okay so double-click on my row and he as you will open this screen for you okay and what you need to do is so you need to reference or purchase odis into the freezer purchase order okay and I can first of all you can see where the cursor is in washing date you can select the date here click on the such date button and I'll put today's date here okay then you can reference it to your purchase order see here you can place your purchase over here okay even if you do not remember the purchase order you can search for it if I click on this put search button I can search for the purchase order it will show me such screen so here it's asking me who is the vendor who is the party ok so I can say I want to search for the vendor I can click on the search vendor and when the name was studies nest vendor one I think there's a one last one and I can execute that that show me all the which is also for this vendor okay and it found only one that's the one you can select that and click on copy so if you do not remember you can search like this or if you remember copy and paste here okay so once you're done let's say you enter this one here press Enter so when you press ENTER it will read the document and see how much quantity was supposed to be paid to the vendor okay here is saying total is $68 okay even at the moment if I open one more screen and open the same purchase order that purchase order you can see here four five pieces 1222 5o much of that 60 okay and two into four 868 is a total even if you can see here status so status this you can see started showing you ordered it is seven pieces delivered is seven pieces $68 the total so it's reading the total twice from their purchase order okay so let me close this screen so that's a sixty dollar we need to suppose to pay them okay so here basically this transaction is done by the account payable officer in the finance department okay so they do this they're on this foundational day-to-day basis so here I can match this amount so 68 is proposing by the system and I can say okay I'm going to pay them 68 okay once you have done press ENTER ok if you see the green light here see there is a green light here that means everything is good okay and what we need to do is to save it okay it's asking for the baseline date and structure date for this one and uh press enter and this is showing another screen press enter again and now it will show you see at the bottom is shown your document number so that means is created a document number four invoice so there's a document number for us the same goes so cool okay so three-step create a purchase order we create our go to ship and final build on the invoice document okay so let's see some more slides here so my row and they say structure of the invoice and so this one is at the wrong place there should be here already talked about this one where you can enter the delivery node and all that in the good shape okay let's continue here so so that's 9 voice that's it ok so now finally we have preceded by invoice okay so setup is done now again you can go back to the purchase order and see this what we call it doc document flow you can call it document flow or you can call it purchase order history same thing okay I'll show you if you open this purchase order let me open it so I can hope you can for the transaction for purchase order is as you know Emmy 22n or I can click on that Emmy 22n or you can add another one if you want display purchase order insert transaction and there's an attraction called Emmy 23n okay Emmy 21 n is to create purchase order want it to end to change for the screen to display okay so if I said this layout change doesn't matter picked any and it will remember that last purchase order number and here you can if I go to the see this one you can see there's a first header there's a Adam overview and click on item detail and I'm looking at the first item detail item number 10 first item okay so here if I click on purchase order history you can see there's the material document was created which is a good received and then sigh invoice there's a good to save document 500,000 number and there's a in watch the ship that one that and that that you can see here see that you can see here not only for first item because we created first a second Adam together that's why the number are same I can jump to the second item and I can see quickly again the numbers are same only quantity is different to and the first one the quantity is 5 if you have done that go to save and inversing separately for each atom then you will find different numbers here of material document or go to save and invoice receipt okay and from here you can jump to any of this document like I want to go through this is this material document I can click on click this number it will take me to that document that I want into that document ok and here in this document I can click on this document info see document info not here sorry see pictures over history at the bottom so here is saying that I am linked to this purchase order I can double click on this potato to again and will jump to that purchase auto again so I'm back to the purchase order ok I can again go to the package order history I want to see that good received ok so what I can do is click on this number of good to see I am sorry not good zip inverse is hip so click on this number five one zero five number and if you can jump to the invoicing document that's a motion document ok so that will be sent to the customer vendor ok so now you understand how we can create a purchase order how we can then create a good ship as a reference to the purchase order and finally how we can do a invoice could I inverse document as a reference to the first purchase order ok now before we move further I want you to do some practice on the server ok and here once we finish every topic or give you assignment for each topic that is supposed to do before they move on to the next topic ok there's a there's a best way to learn okay so assignment for today in this video is I want you to create a purchase order using translation for Emmy 21 and ok and in that in the in when you click this purchase order you can use the same vendor and material that I'm using ok but in the next video I'll show you how we can create our own vendor number own material number that you can use in the next purchase order but for now just use the same vendor and mature ok I'll follow my steps say is familiarize yourselves with a different screen on the particular order okay just play with the screen here so here you see that this screen here just goes the two different tabs and click on different buttons whatever you can and see what are the information stored in the different tabs here what it is memorize yourself and then after creating a purchase order I want you to create a google ship using the my go okay visit access to that what is order and finally I want you to create a inverse or a peer using that relation code my row and my arrow okay just use the same as what I did just now and also observe the different screen of the inversing document in the my row and also see whether purchase order history is in your purchase order because it was just showing you here that you can see the purchase order history so once you have done all the three steps okay this goes through this open your purchase order again and go to the bottom level item detail and look at the purchase order history so particular I simply show you that what other inversing document good zip document will created okay you can also look at the header or go to the header and the status ok let's enter you can see order quantity was 68 hours delivered so the order point was seven pieces and $68 almost delivered yes seven how much we have in verse seven okay so all three steps are conflicted here okay so that's about this video and thank you again to watching this video so I'll see you in the next video and we'll study in more details about master data and all the different concepting spamm so thank you very much once again I'll see you in the next video

Channel: The Smart Hands

Views: 440,087

Rating: 4.8544908 out of 5

Keywords: SAP MM Videos, SAP Material Management, SAP MM Training, SAP MM Online Training, SAP MM Tutorials, studynestsapmm1, Gurjeet Singh SAP MM, Study Nest SAP MM, SAP MM Gurjeet Singh, SAP MM

Id: I0DZ4WJUjuU

Length: 72min 35sec (4355 seconds)

Published: Tue Aug 01 2017