Purchasing Configuration In this section we will see the following MM configurations Release Strategy Pricing Procedure Automatic Account Determination
Release Strategy This defines the release or approval process for a purchasing document There are two types of release procedures. 1 – with classification and 2 – without classification With classification offers more flexibility. It uses characteristics and classes i.e. classification system to design the release procedure Characteristics and classed are a called as classification system in SAP Only Purchase Requisition, which remain within the company and is never send to vendor, is called as Internal Purchasing document all other documents which are sent to vendors like RFQ, PO, Contract, Scheduling Agreement are called as external Purchasing documents Header level release – Release applicable to entire document means either the complete document is completely released or unreleased. It is not possible to have some items released and some unreleased in header level release Item level release – Release applicable at Item level. It is possible to have few items released and few unreleased in a single document All external Purchasing documents like RFQ, PO, Contract, Scheduling Agreement are • Released at header level. Item level release not possible • Have release procedure with classification only. Not possible to have release strategy without classification Internal Purchasing Document i.e. PR • Can be released at header or item level • Can be with or without classification • Header level is with classification and item level is without classification Release Procedure with Classification: In this we create characteristics and class. The basic framework of this type of release procedure is as follows
Code 1
CH1 CH2
CLASS
CH3
Release Group
Code 2
Code 3
CH4 Code 4 CH5
Code 5
Characteristics
Release Codes
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As shown in above diagram, we assign characteristics to class. Class is assigned to release group which will have release codes. After this framework, we set up various release criteria, which are called as release strategy. For PR, PO, RFQ, Contracts & Scheduling agreements, the release strategies are configured under the respective nodes in SPRO under Materials Management Purchasing Menu We will see the process in details as follows. Step 1: Create Characteristics Characteristic is the criterion for release strategy. Example of characteristic can be taken as Color is a characteristics and red, yellow, green are characteristic values. Similarly, PO Value is a characteristic and >1000 USD is a characteristic value In this step we define the characteristic value and some values which will be used for release stategies Menu Path: SPRO Materials Management Purchasing Release Procedure for purchase order Edit Characteristics
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Direct transaction code to create characteristic is CT04. In the characteristic basic data tab, we define following fields Single / Multiple Value This defines if we can take only single value or multiple values while configuring the release strategy. Ex. If we take plant as single value, the while defining release strategy, we can take only one plant value ex. Plant = 1000. But if we define it as multiple value, then we can define a criteria like if Plant = 1000 OR Plant = 1100 Intervals allowed – If the intervals are allowed for the characteristic value. Ex, PO value 501 to 1000 USD
In the values tab, we define the allowed vales for the characteristic. If we tick additional values as shown above, then we can also include some values which are not defined here while configuring the release strategy
In the additional data tab, we define the reference communication structure and filed name for the characteristic Communication structure stores the runtime data of PO before it is saved. For RFQ, PO, Contract, Scheduling Agreements i.e. for external purchasing documents we use communication structure as CEKKO. For purchase requisitions the communication structure is CEBAN. We can take the fields from these structures and create characteristic for each field. Based on this link, value will be populated in characteristic while creating PO
In the restrictions tab, we can limit the characteristic use only for 032. Class type 032 is used for release strategy. Thus this characteristic can only be used for release strategy Save the characteristic. Step 2: Create Class All the characteristics are assigned to a class. Menu Path: SPRO Materials Management Purchasing Purchase Order Release Procedure for purchase order Edit Class. Direct T. Code is CL02. For release strategy, the class type is 032 Here we assign the characteristics to class as shown in below screen. In characteristics tab This document is prepared for MM Training. If interested for MM training in Pune, Please write to
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Step 3: Create Release Group In this activity, we crate release group and assign them to class Menu Path: SPRO Materials Management Purchasing Purchase Order Release Procedure for purchase order Define Release Procedure for purchase order Release Groups A pop up window will appear. Select the option Release Group
Release group Release group signifies to department in a company. Ex. Manufacturing, Purchasing etc. In the above example, release group 07 is created and assigned to class ZCLASS1 Step 4: Release Codes Release codes are created for the release group. Release codes signify to individual person who will release the PO. Ex, Div. Manager, GM, VP etc. Menu Path: SPRO Materials Management Purchasing Purchase Order Release Procedure for purchase order Define Release Procedure for purchase order Release Codes From pop up window, select the option Release Group For the example, in the below screen, release codes C1, C2, C3, C4 are created for the release group 07
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Step 5: Release Indicator In this step we define the release indicator for the PO to display status if the PO is released or not Menu Path: SPRO Materials Management Purchasing Purchase Order Release Procedure for purchase order Define Release Procedure for purchase order Release Indicator From pop up window, select the option Release Indicator
In this step we define, which indicator represents that the PO is released. In the above screen, status 3 is released. We also define the PO behavior for changed made to PO after release. This is indicated by some indicator in the changeable column as shown We have various options as shown above, i.e. a PO can not be changed after release or we can also give some tolerance that if the PO value is changed within this percentage, then there will not be new release strategy, If the PO change value exceeds that value, then the new release strategy is to be defined. This tolerance value is mentioned in column % Value change. Step 6: Define Release Strategy In this step, we define the release strategy. Release strategy is the combination of criteria i.e. characteristics values and the release codes and their sequence of release Menu Path: SPRO Materials Management Purchasing Purchase Order Release Procedure for purchase order Define Release Procedure for purchase order Release Strategies From pop up window, select the option Release Strategies For the example given below, we are defining strategy S1 for the group 07 We can take max. up to 8 release codes in a release strategy Select the codes which you want to take in the strategy This document is prepared for MM Training. If interested for MM training in Pune, Please write to
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Once we select the release codes, then we will decide the sequence of release of PO among release code. For this click on Release Prerequisites Button Release Prerequisites: This is a matrix of codes Vs release prerequisites.
In the example, shown above, code C1 has no prerequisite, i.e. C1 is the starting point and can release the PO Code C2 has the prerequisite C2, i.e. C2 can release PO only after C1 has released it Code C3 has the prerequisite as C1, C2 i.e. C3 can release PO only when C1 & C2 have released it Release Statuses: After giving the prerequisite criteria, system will list down all possible statuses of a PO and we need to certify the PO status for individual combination if PO is released or unreleased. This is done by assigning release indicator to all PO statuses. Click on button, release statuses
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In the above example, release indicator 3 is the release. It is given to the status that all codes have approved the PO. Rest all other statuses are unreleased i.e. indicator is 4 Classification: In this step we define the actual criteria for the release strategy through characteristic values
In the example shown above, there are two characteristics company code & order value Company code has multiple values and order value has range. These are defined in characteristics definition. The above criteria means if the company code is either 1000 or 1100 and net order value is greater than 100 EUR, apply this criteria Release Simulation: In this step, we check if the release strategy is working fine. To activate the release of individual code, double click on individual code. This is an optional step. This completed the release strategy configuration PO Release Procedure: In PO whenever the criteria matches, system will apply release strategy to the PO at the time of saving We can see a release strategy tab in the header section of the PO
Po is released by transaction ME29N. PR is released by transaction ME54N. RFQ released by ME45 & Contracts and scheduling agreements released by ME35
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Pricing Procedure Pricing procedure is used to define the various pricing conditions and their calculation structure Pricing procedure is defined in SPRO in following steps Step 1: Define Condition Table Condition tables are where price conditions are stored. In this step, we define the key combination to be used for the table Menu Path: SPRO Materials Management Purchasing Conditions Define Price Determination Process Maintain Condition Tables
Following Pop Up window will appear.
For the condition tables, Nos. 1 to 500 are reserved by SAP. Customer defined tables are in the range 501 to 999 Here we select the key combination and based on that database tables are created Mostly we use the standard condition tables and access sequence only in most of the projects Double click on display table, to display the condition table For example we will see the table 017 which is used to store conditions for info records
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Key fields are listed in the right side portion. To select the key fields double click on the fields and it will appear in the left side After selecting the fields, select on create table and the system will generate the table. If we create a table 017, then a database table A017 is generated. This table will store the condition record no. and the actual conditions are stored in table KONP or KONV with the key as condition record no. Step 2: Define Access Sequences Access sequence is the sequence in which the system has to search for the condition records This the stepwise listing of tables and their key combinations for searching condition records Menu Path: SPRO Materials Management Purchasing Conditions Define Price Determination Process Define Access Sequences We will see the Access Sequence 0002 which is used for the basic price condition in PO and takes the record from Info Record table i.e. A017 Select the access sequence 0002 and click on accesses in the left pane of the screen. This will show the tables for access
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Here we can see that the Table 017 for the info record is listed in the access sequence. Select the table 017 and click on fields in left pane to see check the key combination
This is the key combination of Info record i.e. we maintain info records with this key combination Step 3: Define Condition Types The condition types are used to represent pricing elements such as price, discounts, surcharge, taxes etc These are stores in SAP in condition records Menu Path: SPRO Materials Management Purchasing Conditions Define Price Determination Process Define Condition Types
Select Define condition types In the next screen select the condition for basic cost PB00 and click on details As shown in the screen below, there are few basic settings in condition as follows Access Sequence - It is created in the earlier steps and then we assign it to condition types. This is the search strategy for a condition for condition records in condition tables. Condition class – Here we define if the condition is a basic price, tax or delivery cost etc Calculation Type – This if the calculation for the condition is percentage or per quantity or lump sum calculation etc. Plus / Minus – If the condition is positive or negative in calculation. Ex. Discount will be negative and will get deducted while delivery cost will be positive and will get added. Manual Entries - If it is possible to maintain the condition manually. If we select option D as shown in below screen then it is not possible the change the condition manually
Changes which can be made: Here we define the changes that are possible for a condition like Possible at Header or Item level, delete is possible, Amount / Percent, value can be changed etc.
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Step 4: Define Calculation Schema In this step, we define the calculation procedure for the various conditions Menu Path: SPRO Materials Management Purchasing Conditions Define Price Determination Process Define Calculation Schema
Select the schema and then click on control data in the lest pane as shown above This will display the calculation schema
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Calculation schema is defines as follows Enter the step no. in the first column. If two conditions are to be taken on same step then add counter Enter the condition types In the From To column, enter the steps on which the conditions are to be calculated i.e. base amount for calculation. Ex. In the screen shown above, step 40 will be taken as sum of steps from 22 to 39. If only from column is filled, then the condition is calculated on that step only Then there are next three columns for check box. These are Manual – means the condition is entered manually. Mandatory – means the condition is mandatory to be entered in the pricing in PO. Statistical – means the condition is for statistical purpose only. In the last column we also mention the accruals key for the condition. If the accruals function is checked in the condition type, then accruals can be posted to the accounts. These accounts are mentioned in the transaction OBYC. Thus the calculation procedure is defined. Step 5: Define Schema Group In this step, we define the schema group for Purchasing Organization and vendor master records Menu Path: SPRO Materials Management Purchasing Conditions Define Price Determination Process Define Schema Groups
Select define schema group for vendors
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In this step, we define the schema group for vendors. These schema groups are then assigned to individual vendors in vendor master record, purchasing view
From the above customization step, select schema group for purchasing organizations.
In this step, as shown above, we define the schema group for purchasing organizations. These are just key and description definition Then click back, and select assignment of purchasing schema to purchasing organization
In the screen shown above, we assign the purchasing schema to purchasing organization Thus the Purchasing schema and vendor schema are determined.
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Step 6: Define schema determination In this step, we define the calculation schema for the combination of vendor and purchasing organization Menu Path: SPRO Materials Management Purchasing Conditions Define Price Determination Process Define Schema Determination
Select determine calculation schema for the standard PO
Here we define the combination of Purchasing schema and vendor schema and the pricing procedure applicable When we create a PO, based on the vendor and the purchasing organization entered in the PO, pricing procedure is selected in the PO and calculations happen as mentioned in the procedure
Account Assignment Categories When we create an account assigned PO, we mention the account assignment category in PO
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Account assignment categories are configured in MM Menu Path: SPRO Materials Management Purchasing Account Assignment Maintain account assignment categories
Select the account assignment category and click on details
Here we define the screen layout. This screen layout is applicable in the account assignment tab in PO. This document is prepared for MM Training. If interested for MM training in Pune, Please write to
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