purchasing flow

[#1]

could someone give the details about the purchasing flow in SAP-MM

[Former Member · Accepted solution]

Following is MM flow

1) Deternination of requirements ( MD02--MRP)

2)Source determination( ME01)

3)Vendor selection(ME01)

4)Order Processing(ME21N)

5)Order Follow up(maintain purchasing value keys)

6)goods Receipt(MIGO)

7)Invoice Verification(MIRO)

Regards

Kedar

[Former Member]

Dear Bob,

Process Flow:

1) Determination of Requirements: Through MRP, purchase requisitions

2) Source Determination: helps you identify potential sources of supply, creating requests for quotation (RFQs

3) Vendor Selection and Comparison of Quotations: The system is capable of simulating pricing scenarios

4) Purchase Order Processing: information from the requisition and the quotation to help you create a purchase order. Scheduling agreements and contracts are also supported.

5) Purchase Order Follow-Up: The system checks the reminder periods you have specified. Up-to-date status of all purchase requisitions, quotations, and purchase orders.

6) Goods receiving and Inventory Management: Goods Receiving personnel can confirm the receipt of goods simply by entering the Po number

7) Invoice Verification: The system supports the checking and matching of invoices, and clearing invoices for payment.

FYI,

Vivek

[Former Member]

Complete Purchase Cycle Till FI

Let us go about purchase cycle:

1. Purchase Requistation : First Purchase requisation has to made to purchase department wheever the product need by the user or production depaartment.They are created by tcode me51k.

2. Once the purchase requested, then the purchase department will search for the materail, where available and when available. That is called Material determination.

3. After the search of material is over, then look for who are the parties , who is going to supplies the material in competitive rate. Then select the correct vendor is known as material determination.

4. After that Tender process done through Tcode-ME41.

5. After finilisation of Tender, the vendor selected and purchase order issued. The Creation of Purchase Order is ME21N. There will not be any finance entry while creating the Purchase Order.

6. Once the purchase order issued, then by the terms of PO, the vendor will supply the materials. The Receipt of Good (GR) , done through MIGO or if it is an service entry done through ML81N.

The Entry will be

Inventory account - dr-

GR/IR Clearing a/c - cr-

Purchase a/c - dr-

Purchase offset a/c -cr-

GR/IR clearing is a intermediate account, will be used to connect cost and vendor.

In GR/IR clearin a/c - 1. Assesable Value

2. Sales Tax

3. Surcharge

ie., Other than Cenvat Clearing will be there.

7. After the receipt of material, the Good Receipt along with Invoice Bill submitted to the Excise person handling Central Excise matters, to take Credit of duty for the product.

The entry will be

1. Cenvat Clearin a/c - cr

RG23a Part II a/c - dr

RG23a Part II cess a/c - dr.

8. From the Excise person , the bill move towards the person who passing the bills for payment. He will do the Invoice Receip First through MIRO. Here two document will be created, one for MM and one for FI.

The entry will be

Vendor a/c - Cr-

Gr/IR Clearing a/c - dr

Cenvat Clearing a/c- dr.

9. After finalisation of Invoice receipt, the bill is for Payment process mode through F-53.

The entry will be

Vendor a/c - dr

Bank a/c - cr.

regards,

indranil

[Former Member]

hi,

Following is MM flow:

1) Determination of requirements ( MD02--MRP)

2)Source determination( ME01)

3)Vendor Selection and Comparison of Quotations (ME41 - RFQ, ME47 - Quotation, ME49 - Price Comparison)

4)Purchase Order Processing(ME21N)

5)Purchase Order Follow up(maintain purchasing value keys)

6)goods Receipt(MIGO)

7)Invoice Verification(MIRO)

regards

Manish Joshi

[former_member192897]

The dataflow as functional process below are the points :

1) Purchasing Requsition -> sent by inventory dept to purcharsing dept.

2) Request for Quotation(RFQ)-> Purchasing Dept shall ask the vendors to give the quotation for the requested materials by inventory.

3) Quotation -> Quotation is sent by vendors to the company

4) Purchase order-> Based on all paramers of a quotation sent by vendors. Vendors are selected from whom the material has to be obtained. The company gives purchase order to the vendor.

5) Good's receipt -> vendors sends the goods to the company with goods receipt.

6) Invoice verification -> this done based on good's receipt. this means that the ordered goods have reached or not.

7) Payment -> payment is done based on invoice verification. this is (FI/CO)

Full MM Transaction Codes Flow :

RFQ to Vendor - ME41

Raising Quotation - ME47

Comparison of Price - ME49

Creation of PO - ME21N

Goods Receipt - MIGO

Invoice (Bill PAssing) - MIRO

Goods Issue - MB1A

Physical Inventory - MI01( Create doc)

MI04 (Enter Count)

MI07 (Post)

The FI - MM integration :

First you define the g/l master records.

1) Inventry raw material a/c

2) GR/IR clearing a/c

3) Raw material consumption a/c

Above like this you define all required g/l accounts then you will go to T.CODE - OBYC

Double click BSX (this is transaction key)

" GBB

" WRX

" PRD

These are transaction keys important.

Then you go to T CODE - OMSY (this is also important) then

Material creation T Code MM01

then

1) Purchase order T.code ME21N

2) Goods received " MIGO

3) Invoice verification " MIRO

The FI - MM integration finished.

Regards,

Ashok

[Former Member]

Hi,

The typical procurement cycle for a service or material consists of the following phases:

1. Determination of Requirements

Materials requirements are identified either in the user departments or via materials planning and control. (This can cover both MRP proper and the demand-based approach to inventory control. The regular checking of stock levels of materials defined by master records, use of the order-point method, and forecasting on the basis of past usage are important aspects of the latter.) You can enter purchase requisitions yourself, or they can be generated automatically by the materials planning and control system.

2. Source Determination (ME11 - Purchase Info Record, ME01 - Source List)

The Purchasing component helps you identify potential sources of supply based on past orders and existing longer-term purchase agreements. This speeds the process of creating requests for quotation (RFQs), which can be sent to vendors electronically via SAP EDI, if desired.

3. Vendor Selection and Comparison of Quotations (ME41 - RFQ, ME47 - Quotation, ME49 - Price Comparison)

The system is capable of simulating pricing scenarios, allowing you to compare a number of different quotations. Rejection letters can be sent automatically.

4. Purchase Order Processing (ME21N)

The Purchasing system adopts information from the requisition and the quotation to help you create a purchase order. As with purchase requisitions, you can generate Pos yourself or have the system generate them automatically. Vendor scheduling agreements and contracts (in the SAP System, types of longer-term purchase agreement) are also supported.

5. Purchase Order Follow-Up

The system checks the reminder periods you have specified and - if necessary - automatically prints reminders or expediters at the predefined intervals. It also provides you with an up-to-date status of all purchase requisitions, quotations, and purchase orders.

6. Goods Receiving and Inventory Management (MIGO)

Goods Receiving personnel can confirm the receipt of goods simply by entering the Po number. By specifying permissible tolerances, buyers can limit over- and under deliveries of ordered goods.

7. Invoice Verification (MIRO)

The system supports the checking and matching of invoices. The accounts payable clerk is notified of quantity and price variances because the system has access to PO and goods receipt data. This speeds the process of auditing and clearing invoices for payment.

For MM Tables Look into

http://erpgenie.com/index.php?option=com_content&task=view&id=172&Itemid=77

Thanks & Regards,

Kiran