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Former Member
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Can anyone help me know some of the terms in MM and SD .

Inventory control,inventory valuation,retropricing,g/l account,cost center,third party,accruals,engineering account,material usage variance account,bill of material

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Answers (3)

Answers (3)

Former Member
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1 inventry control

try this link.

2.Inventry valuation:"

The R/3 System allows you to valuate stocks of a material either together or separately, that is, according to different valuation criteria. For example you can take the case of Split valuation which is used when:

Stock from in-house production has a different valuation price than externally procured stock.

(ii) Stock obtained from one manufacturer is valuated at a different price than stock obtained from another manufacturer.

(iii) Different batch stocks of a material have different valuation prices.


The way the stocks of a material are valuated depends on how you define the following:

Valuation category:This defines whether the stocks are valuated jointly or separately. If stocks are to be managed separately, it also specifies the criteria used to valuate the stocks, that is, whether they are valuated by origin, in-house production/external procurement, or individual batches.

(ii) Valuation type:This is a further subdivision of the valuation category. For example, if the valuation category is origin, a company may want to define the valuation types stock from Los Angeles and stock from Detroit.This data is stored in the material master record.


During the business blueprint stage of your implementation you need to decide whether valuation will be done at company code level or plant level and whether split valuation is allowed.

Valuation Strategies: Following are the most commonly used valuation strategies.

Joint Valuation:If you want to valuate all stocks of a material at the same price, you specify neither a valuation category nor a valuation type.

Split Valuation:If you want to valuate stocks of a material separately, you must create a material master record with the appropriate valuation category. This record is called the valuation header record. Each material always has only one such record for each company code or plant (depending on whether the material is valuated at company code level or plant level).

Once you have specified the valuation category, you can create a material master record for each quantity of the material you want to valuate separately, with the appropriate valuation type and accounting data.

Though material valuation in itself is a very large topic, i have tried to help you out in a summarized way. please award points, if I had been of some help to you and let me know if you have anyother specific query.

compleate guide of inventory management;

and furthur notes

3.cost center:

Cost centres are divisions that add to the cost of the organisation, but only indirectly add to the profit of the company. Examples include Research and Development, Marketing and Customer service. A cost centre is often identified with a speed type number.

(taken from wikipedia

4.third party sale:

Process Flow for 3rd Party Sales

Customize the third party sales in summary:

1. Create Vendor XK01

2. Create Material – Material Type as "Trading Goods". Item category group as "BANS".

3. Assign Item Category TAS to Order type that you are going to use.

4. A sale order is created and when saved a PR is generated at the background

5. With reference to SO a PO is created (ME21N). The company raises PO to the vendor.

6. Vendor delivers the goods and raises bill to company. MM receives the invoice MIRO

7. Goods receipt MIGO

8. Goods issue

9. The item cat TAS or Schedule line cat CS is not relevant for delivery which is evident from the config and, therefore, there is no delivery process attached in the whole process of Third party sales.

10. Billing *-- Seema Dhar

SD - 3rd party sales order Create Sales Order


Order Type

Sales org, distr chnl, div


Sold to

PO #





SD - 3rd party sales order View the PR that is created with a third party sales order


Order Number

Goto Item Overview

Item ->Schedule Item

SD - 3rd party sales order View the PR that is created


Key in the PR number


SD - 3rd party sales order Assign the PR to the vendor and create PO


Key in the PR number

Toggle the "Assigned Purchase Requisition"


Check the box next to the material

Assign Automatically button

Click on "Assignments" button

Click on "Process assignment"

The "Process Assignment Create PO" box , enter

Drag the PR and drop in the shopping basket


SD - 3rd party sales order Receive Goods


PO Number

DN Number

Batch tab , click on classification

Serial Numbers tab

Date of Production

Flag Item OK

Check, just in case



SD - 3rd party sales order Create Invoice


Invoice Date

Look for the PO , state the vendor and the Material

Check the box

Clilck on "Copy"

Purchase Order Number (bottom half of the screen)


State the baseline date

Simulate & Post

Invoice Number

*Invoice blocked due to date variance

SD - 3rd party sales order Create a delivery order


In the order screen , go to the menu Sales Document , select "Deliver"

Go to "picking" tab

State the qty and save

SD - 3rd party sales order Create a billing document


Ensure that the delivery document is correct in the


Go to edit -> Log


5.bill of material :

Bill Of Material(BOM) in SAP terminology means the materials used to produce a finished product. For example for preparing a roofing sheet then the bill of materials are cement, water, flyash etc...,


Former Member
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Hi hema,

Use this link....