exp_0003

© SAP AG IRT330 3-1

SAP AG 1999

! RFQ/Quotation

! Outline Agreement! Purchase Order

! Optimizing

! Release Procedure

! Output Determination

Contents:

Ordering


SAP AG 1999

! Use the RFQ and quotation functionality

! Create outline agreements and contracts

! Understand the complexity of purchase orders

! List the options for the optimizing process

! Describe the functions and steps involved in therelease procedure for purchase requisitions andpurchase documents

! Explain the various ways of determining output

At the conclusion of this unit, you will be able to:

Ordering: Unit Objectives


SAP AG 1999

1233456

Course Overview

Requirements Planning

Ordering

Subsequent Settlement

Vendor Evaluation

Conclusion

Course Overview Diagram


SAP AG 1999

! In your company, you want the system to supportyou in the creation of purchase requisitions andother purchasing documents, with the intention ofoptimizing the whole purchasing process. Thisincludes all purchasing processes, from thecreation of an RFQ, creation of a purchasingrequisition, supply source determination, andcreation of a purchase order right through to therelease of the documents (if required) and theexchange of information with the vendor.

Ordering: Business Scenario


SAP AG 1999

! Describe a business scenario in which the RFQand quotation are used in Purchasing

At the conclusion of this topic, you will be able to:

RFQ and Quotation: Objectives


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RFQ and Quotation: Linking

Quotation ....Vendor C

Article Quantity Price4711 100 PC 99.90

... ...

Quotation ....Vendor B


... ...

Quotation ....Vendor A


... ...

Quotation ....Vendor B

Article Quantity Price4711 88.50 PC 99.90

... ...

Purchasing info record

Pricecomparison

list

Price = ?(for n pieces of article abc)

99.90 US$88.50 US$89.50 US$

RFQ ....Vendor C

Article Quantity4711 100 PC

... ...

RFQ ....Vendor B


... ...

RFQ ....Vendor A


... ...

IDES SmartIDES Smart Retailer Inc Retailer Inc..

Vendor AVendor A

Vendor BVendor B

Vendor CVendor C

" In retailing, relations with vendors are usually maintained over a long period of time and are characterized by a high level of stability. However, when the value of an article is particularly high, or the merchandise is highly specialized, it may make sense to use the request for quotation (RFQ) procedure to determine the best possible vendor for an article.

" Requests for quotations can either be generated directly from purchase requisitions or created manually by the user for a number of vendors.

" You enter the quotations received, including all related prices and conditions offered by the vendor, in the RFQs concerned. A request for a quotation and its associated quotation therefore create a logical unit.

" You can then compare the various quotations received by using a price comparison list and determine the best quotation. You can then have the system save the data in a purchasing info record for the vendor.


SAP AG 1999

! Understand the difference between different kindsof outline agreements and in particular contracts

! Create contract release orders for different kindsof contract items


Outline Agreement: Objectives


SAP AG 1999

Quantity contractQuantity contract

Value contractValue contract

CentrCentr. . agreed contractagreed contract

Distributed contractDistributed contract

Contract

Duration

Article

Total quantity/Total value

Conditions

Contractrelease order

Quantity

Date

SchedSched. . agreementagreement

SchedSched. . agreement withagreement with

release documentationrelease documentation

Schedulingagreement

Duration

Article

Total quantity

Conditions

Forec.sched.agreem.

JITdlvysched.

Scheduleline

QuantityDate

Overview of Outline Agreements

" An outline agreement is a long-term agreement with a vendor relating to the delivery of articles at fixed conditions. These apply for a specific period and a total order quantity or value.

" The outline agreement does not contain information on particular dates or quantities for the individual deliveries. This information is stored in a contract release order or a schedule line, depending on the type of outline agreement.

" An outline agreement can be a contract or a scheduling agreement.

" There are two kinds of contract:

$ Quantity contract: The contract is deemed fulfilled when the agreed quantity has been achieved as a result of contract release orders.

$ Value contract: The contract is deemed fulfilled when the agreed value has been achieved as a result of contract release orders.

" Contract items can relate to a single site or all sites in a purchase organization (centrally agreed contract).

" Distributed contracts are centrally agreed contracts that are made available for release orders in other SAP systems.


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Working With Contracts

VendorVendor

OneOne--timetimevendorvendor

ContractContractrequisitionrequisition


Standard itemConsignment itemArticle unknownSubcontractingService item

Cost centerProjectOrderCreateUnknown

With articleWith article

Without articleWithout article

RFQRFQ

ReferenceReferencecontractcontract

optional

mandatory

PurchasePurchaserequisitionrequisition

ItemItem//item categoryitem category

Statistics

Contract

Single/multipleacct assignment

" Contracts can be created without reference or with reference to an outline agreement requisition, a RFQ, or another contract.

" Contract release orders can be created without reference or with reference to a purchase requisition.

" The release documentation contains details on the ordering activities for a contract. For each release order, the system provides the following data:

$ Contract release order number

$ Order date

$ Order quantity

$ Order value

$ Release quantity so far

$ Target quantity

$ Outstanding quantity

" You can have the system list all contracts that will expire in the near future. The system evaluates this information on the basis of the Target value and Total release value fields in the contract header and suitable selection parameters.


SAP AG 1999

Contract 1

Contract 2R311R311

R310R310

R300R300

Item Art. Site10 1

Item Art. Site10 2 R300

Site Contract - Centrally Agreed Contract

" Contract items can relate to a single site or all sites in a purchase organization (centrally agreed contract).

" All sites in a purchasing organization can place an order with reference to a centrally agreed contract.

" A company that has a central purchasing organization for several sites can negotiate better conditions than an individual site.

" Centrally agreed contracts can be negotiated for all vendors in a corporate group. The individual contract release orders can be sent to various vendors in this group. This promotes synergies.

" You can define that certain sites are to be supplied by certain vendors of the corporate group.


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Site conditionsSite R300: Surcharge 5%Site R310: Surcharge 3%Site R311: Surcharge 3%

Site conditionsSite conditionsSiteSite R300: R300: Surcharge Surcharge 5% 5%SiteSite R310: R310: Surcharge Surcharge 3% 3%SiteSite R311: R311: Surcharge Surcharge 3% 3%


Vendor : A

Article : 1Site : R300Qty : 1,000Price : $1,050

Contract

Vendor : APeriod : 01.01.-

31.12.

Article : 1Total qty : 10,000 pcPrice : $1

Site Conditions in Centrally Agreed Contract

" Items in a centrally agreed contract do not relate to a particular receiving site.

" As a result, a company that has a central purchasing organization for several sites can negotiate a contract for all of these sites. As a result, better conditions can be negotiated.

" The site conditions function of the centrally agreed contract enables you to define prices and conditions for each individual receiving site. This means that you can take account of different transportation costs for different routes, for example.


SAP AG 1999

! Describe the structure of a purchase order in SAPRetail

! State the ways purchase orders can be created inSAP Retail

! Describe the various functions used whencreating and processing purchase orders


Purchase Order: Objectives


SAP AG 1999

Purchaseorder

Automaticreq. planning 80

70

90100

60

110120

Manual creationPurch. orderVendor

Replenishment

Investment buying

Promotion

Store order

Forecast

Automaticload building

Manualload building

ProposalAdditional planning

Output:EDIFaxPrintout

List:e-mailPrintout

OrderproposalPurchaserequisition

Sales order

Alloc. table

Release

Purchase Order: Creation

" In Purchasing, procurement activities are carried out for manually entered requirement values or values determined automatically as a result of requirements planning, store orders, allocation tables, promotions, and store orders. Requirements initially exist in the system as purchase requisitions or purchase orders, and additional information such as the vendor and delivery date is needed. Important: For purchase requisitions to be automatically converted to purchase orders, the indicator for the automatic conversion of purchase requisitions to purchase orders must be selected in the article master (logistics data for a site) and the vendor master (purchasing data for a purchasing organization).

" When purchase requisitions are converted to purchase orders, the system carries out supply source determination, order quantity optimizing, and/or automatic load building, depending on the settings in Customizing.

" Purchase orders can subsequently grouped together (manual load building). In addition, you can add more items to a purchase order by selecting further articles (additional planning). Finally, you can specify that a release procedure is required for purchase orders (and purchase requisitions).


SAP AG 1999

PO 4500004012Vendor R3001.... ....

Art. 55421 Site R310 200 pc

Art. 56334 Site R311 10 car

Art. 73452 Site R312 50 pal

• • •

• • •

1.6.00 6 car ...1.7.00 4 car ...1.6.00 6 car ...1.7.00 4 car ...

18.2.00 20 pal ...5.3.00 20 pal ...

20.3.00 10 PAL ...

12.1.00 200 pc ...12.1.00 200 pc ...

Purchasing org.Purchasing group

• Purch. organization/Purch. group

• Order type (OR, STO etc)• PO number• Vendor• Terms of delivery and

payment• ...

Header

Items

Deliv.schedule

1

n

1

m

• Date and time• Delivery quantity• ...

• Item/acct assignment category• Article with merch. cat. and short

text• Ordered quantity• Receiving site and storage location• ...

Order type

Purchase Order: Structure


SAP AG 1999

PReq

S

B

U

. . .

Item categoryGR and invoice receiptcan take place

Account assignment requiredGR and IR can take place

Account assignm. not requiredGR not requiredIR not requiredDoc. category FO required

Article number requiredGR requiredIR n/a

Quotation

Outlineagreement

Pur.order

Art. 5 10 car R300

Vendor: Meyer

Item Category

" The item category defines whether the article number, account assignment, goods receipt and/or invoice receipt are possible or mandatory for an item. Which item categories are displayed depends on the document category. In Customizing, you can define which item categories are allowed for which documents.

" The following item categories are defined:

" Standard: Used for articles that are procured from an external vendor.

" Subcontracting: The final product is ordered from the vendor. The components that the vendor needs to put the final product together are entered in 'material to be provided' items.

" Consignment: The vendor supplies you with articles that you manage as consignment stock. The vendor retains ownership of these articles until they are withdrawn from the consignment stores.

" Stock transport order: An article is transferred from one site to another.

" Direct delivery (third party order): The ordered article is to be supplied directly to a third party (such as a customer). The vendor sends you the invoice.

" Note: Subcontracting, consignment, stock transfer and direct (third-party) delivery are covered in the MM documentation entitled Inventory Management: Special Stocks and Special Forms of Procurement in Materials Management.


SAP AG 1999

Item in purchasingtransaction

Acct assignm. cat.

Description

Account assignment can be changedafter GR/IR

GR for item

Screen sequence

Account assignment can be changedon IR

GR non-valuated

IR for item

Account modification

Consumption posting

Account Assignment Category

" The account assignment category determines the type of account assignment such as cost center or sales order, and which accounts are to be posted on receipt of goods or invoices. An account assignment category is assigned to each item in a purchasing document.

" The account modification key of the account assignment type enables you to have the system propose a consumption account number for the entry of a purchasing document item with account assignment. You assign this account number in the settings for automatic postings for "Offsetting for stock posting".


SAP AG 1999

Purch. orderVendor

Art. 3214 20 pc

Art. 5110 15 pc

Doc. type

Number range

Item interval

IntervalInternal or external

Feld selectionreference key

Allowed itemcategories

Reference topurchase requisition

Screen structure at docScreen structure at doc.. level level

Field selection perfield selection group

Define external displayDefine external displayof item categoriesof item categories

Example:Entry of article number

requiredAccount assignment allowed

Purchase Order: Document Categories PurchasingTransactions

" Separate document types are created for each kind of purchasing document (purchase requisition, purchase order, outline agreement). Subsequent relationships between purchasing document categories can be stored in the document type assignment (via purchase requisition).

" For each document type, you can define separate number ranges for internal and external number assignment.

" You can use the field selection reference key to exclude fields from document processing or mark them as optional/required fields.

" The field selection is also influenced by the following factors:

$ Transaction

$ Item category

$ Account assignment category (for field selection of account assignment)

$ Authorization to display prices

$ Release status

$ Subitem category


SAP AG 1999

Quota arrangementQuota arrangement??60%60% 40%40%

2

Source listSource list

Outline agreementsPurch. info records

Regular vendor

Purch. requisitionWITHOUT supply source

Article R100013for R300 50 pc

?3

MIT

Supply source ind.

1

Stock transfer deliv-ery schedules

Supplying sites

• Find external source ofsupply only

• Find internal source ofsupply only

• Find internal supply sourcefirst, then external

• Find external supply sourcefirst, then internal

Purch. orderVendor R3001

Art. 3214 20 pc

Art. 5110 15 pc

PReqVendor??

Art. 321420 pcArt. 511015 pc

ArticleArticle

5

4Supply region?

MIT

Vendor R3001Vendor R3001

Purchase Order: Supply Source Determination

" In supply source determination, the system attempts to assign a supply source for an article to a site by searching for an internal or external vendor. Supply source determination can lead to a number of different supply sources being found.

" Supply source determination consists of the following steps:

$ You can use a quota arrangement to distribute the purchase orders among a number of supply sources (both internal and external) using a predefined key.

$ The source list is used to define all permitted sources of supply. You can enter vendors or outline agreements. You can flag a source of supply as a preferred vendor.

$ You can use the supply source indicator in the article master to search for certain types of supply source, such as external sources only, internal sources only, external sources before internal sources, or internal sources before external sources.

$ An outline agreement is an agreement made with a vendor relating to the delivery of a certain quantity or value of an article at fixed conditions and for a specified period. An outline agreement can be a contract or a scheduling agreement.

$ If the site to be supplied has already been assigned a supply region, a potential supply source is only acceptable if it is valid for the region in question.


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Purchase order: Additional Planning (1/2)

Purch. orderVendor

Art. 3214 20 pcArt. 5110 15 pc

Art. 2331 60pcArt. 2344 45pc

Net requirement qtyNet requirement qtyWhat else is to be ordered?

Articles 2331, 2344

Additional planning

Select by:• VSR• Promotion• Stock planner• Delivery cycle• RP type

• Merch. category• Purchasing group• Planning cycle• Layout module

Purch. orderVendor

Art. 3214 20pcArt. 5110 15pc

Article listed

?

SiteSite

" Additional items can be added to purchase orders created manually and those generated as a result of the requirements planning functions. If the purchase orders are for vendor, and you have entered a restriction profile for the vendor in question, you can check online whether the requirements of the restriction profile are met.


SAP AG 1999

Purch. orderVendor

Art. 3214 20pcArt. 5110 15pc

Additional planning

Proposal for articles to be ordered

Automatic quantity proposals

RestrictionsTarget rangeof coverage

Selection criteria

Purch. orderVendor

Art. 3214 20pcArt. 5110 15pcArt. 1234 15pcArt. 5670 15pc

Purchase Order: Additional Planning (2/2)

Purch. orderVendor

" You can include self-defined additional fields on the details screen for additional planning (user exit: EXIT_SAPLMDZU_003).

" You can also include up to two self-defined pushbuttons on the details screen for additional planning (user exit: EXIT_SAPLMDZU_002).

" The system provides an algorithm that determines default values for the order quantity in the details screen on the basis of the warehouse stock, on-order stock, and consumption.


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Purchase Order: Additional Functions (1/2)

At header level! Additional texts can be

maintained! Partner schemas can be

maintained (vendor,invoicing party, payee andso on)

! Vendor address andconditions can be displayed

! ...

PO 4500004012Vendor R3001.... ....

Art. 55421 Site R310 200 pc



• • •

• • •

1.6.00 6 car ...1.7.00 4 car ...1.6.00 6 car ...1.7.00 4 car ...

18.2.00 20 pal ... 5.3.00 20 pal ...20.3.00 10 PAL ...

12.1.00 200 pc ...12.1.00 200 pc ...

" A number of additional functions are available to you during purchase order processing. At header level, for example, you can:

$ Maintain additional texts

$ Maintain partner schemas (partner determination procedures) if the vendor, invoicing party, and payee are not the same

$ Branch to the vendor address and conditions


SAP AG 1999

At item level! Empties articles can be

listed individually assubitems

! Schedule lines can bemaintained

! Conditions (including freegoods) can be maintained

! Purchase orders can becreated for generic articlesusing the variant matrix

! Return items can be created! ........................................................! Reference to confirmations

(shipping notif., rough GR)! Promotion determination! OTB update! ...

PO 4500004012Vendor R3001.... ....

Art. 55421 Site R310 200 pc



• • •

• • •

1.6.00 6 car ...1.7.00 4 car ...1.6.00 6 car ...1.7.00 4 car ...

18.2.00 20 pal ...5.3.00 20 pal ...20.3.00 10 PAL ...

12.1.00 200 pc ...12.1.00 200 pc ...

Purchase Order: Additional Functions (2/2)

" You can perform the following functions at item level in a purchase order:

$ Add the empties (crate, empty bottles) as a sub-item of the empties article (such as a crate of beer).

$ Maintain schedule lines

$ Maintain conditions, including free goods

$ Order generic articles using a variant matrix

$ Create return items (for vendor returns of transport equipment, empties, and standard merchandise, for example).

" The purchase order itself performs the following functions:

$ Manages references to confirmations, such as shipping notifications or rough goods receipts

$ Performs promotion determination (so that the appropriate promotion conditions can be used for an article that is involved in a promotion).

$ Updates existing open-to-buy (OTB) planning


SAP AG 1999

! Describe the system settings for optimizing orderquantities

! Use the functions for manual and automatic loadbuilding

! Create collective purchase orders


Optimizing: Objectives


SAP AG 1999

Net requirement qtyNet requirement qtyNet requirement qty

Rounded order quantity

Quantity Optimizing

• Minimum order quantity

• Rounding quantity

• Unit of measurem. group

Purch. order

Store order

Sales orderAlloc. table

Req. Planning

Quantity Optimizing

" In Requirements Planning it is possible to use statistical rounding profiles to round values.

" In the purchase order and sales order, you can round quantities regardless of whether the documents were generated manually or automatically.

" In the allocation table, quantities are optimized at site level for the allocation table item. If quantity optimization is carried out in an allocation table, it is not carried out when follow-on documents are generated.

" Optimizing is incorporated in store order processing, and affects purchase orders, deliveries, and sales orders that were generated from store orders. Rounding for deliveries only takes place in connection with the store order.

" One or more of the following values must be entered for each article and vendor:

$ Minimum order quantity

$ Rounding quantity

$ Unit of measurement group


SAP AG 1999

Static profileStatic profile

• Threshold valueRounding value

• Log. units of measurenot takeninto account

0 No rounding1 To order/sales unit2/3 To order sales/sales unit

and logistics unit

0 No rounding1 To order/sales unit2/3 To order sales/sales unit

and logistics unit

Check on unit ofmeasure groupsfor vendor/recipient

Check on unit ofmeasure groupsfor vendor/recipient

Thresh. Rounding 1,000 5,000 32,000 40,000

• Rounding method

• Rounding rule

• Allowed units ofmeasure takeninto account

Dynamic profileDynamic profile

LogUn %Up % DownCAR 50.0 10.0 LAY 70.0 10.0PAL 90.0 10.0

Quantity Optimizing: Rounding Profile

" In SAP Retail you can use dynamic rounding profiles. As a result, you can round your purchase order quantities to special logistics units of measure agreed with your vendor.

" You create rounding rules that are site-independent. However, they can also be specified per site.

" The rounding rules define as of which percentages the system rounds up or down to a number of measure.

" Values of 0%- or 100% entered for the rounding rule have the following meaning:

$ % Up: A percentage of 0 means that the system always rounds the value up to a multiple of the assigned logistics unit of measure. A percentage of 100 means no rounding takes place.

$ % Down: A percentage of 100 means that the system always rounds the value down to a multiple of the assigned logistics unit of measure. A percentage of 100 means no rounding takes place.


SAP AG 1999

Default values

Rounding profileUM group

AUn OUn Ord1 PC <=> 1 PC x 1 CAR <=> 10 PC 1 LAY <=> 40 PC1 PAL <=> 120 PC

UM group 0001PCCARLAYPAL

LogUn % Up % DownCAR 50.0 10.0 LAY 70.0 10.0PAL 90.0 10.0

VendorVendor

ArticleArticle

Determining the Optimum Order Quantity 1/2

" When the system rounds a value to a logistics unit of measure, it always tries to create an order quantity for the largest possible unit of measure from the vendor, as it assumes that the best conditions will be achieved as a result. The smallest possible unit of measure that is possible for the purchase order is the alternative unit of measure (AUn) flagged as the order unit (Ord) in the article master.

" When the system determines the permitted unit of measure, it takes account of the rounding profile and the unit of measure group valid for the vendor. The unit of measure group defines the units of measure in which the vendor wants to or is able to supply the article.


SAP AG 1999

Determining the Optimum Order Quantity 2/2

1 pallet

1 carCarton

Layer

Pallet

9 car 10 car

Unrounded order quantityPC

83? ???3? ???

133? ???

110? ???

100? ???85

? ???84

? ???

AUn OUn Ord1 PC <=> 1 PC x 1 CAR <=> 10 PC 1 LAY <=> 40 PC1 PAL <=> 120 PC

133 PC3 PCPiece

Variable OUn = 1 + Rounding method 2

68 84 108 124

108 132

2 layers 3 layers

. . . . . .5 11 65 71 85 91 95 131125111105101

7 car 11 car 13 car

Roundedorder quantity

" In this example, the rounding rule defines rounding in the following areas:

$ 1 box between 5 and 11 pieces

$ 1 layer between 28 and 44 pieces

$ 1 pallet between 108 and 132 pieces


SAP AG 1999

Purchase requisitions

Otherorder

processes

Manual load buildingEDI to vendor

Automatic load building process

Req. Planning Investment buying process

Promotionorders

Simulation list process

Purch. req. ...Purch. req. ...Purch. req. ...

Purch. orderVendor 326


Withoutexisting require-ment elements

Purchase orders

Load Building: Overview

" Load building has the following aims:

$ Reduce transportation costs

$ Reduce the amount of stock in the warehouse by ordering on the latest possible date

$ Obtain lower purchasing prices by ordering full truck-loads (for example)

" Automatic load building compares the requirement quantities and promotion purchase quantities needed with the vendor restrictions and tries to meet these restrictions.

" The collective PO screen is used to logically group together purchase orders to form complete loads. A load can be a truck-load or a container, for example, and is defined in a restriction profile.

" Automatic load building is also possible if requirement elements do not exist, that is to say, purchase orders and purchase requisitions do not have to exist in the system before load buidling is possible.


SAP AG 1999

Purch. req. ...Purch. req. ...Purch. req. ...

Purch. req. ...



Purch. req. ...

No. days promo

Parameters for load buildingand investment buying

No days price

Maximum range of coverage

Default service level

No. of days todeletion in the

investment buying table

No. of das todeletion in thesimulation list

Load Building: General Parameters

" The Customizing table Parameters for Load Building and Investment Buying should contain a single record. This is then read by the report for load building.

" No. days promo defines the search horizon for promotion articles in calendar days, that is, the report for load building searches this number of days in the future for promotion articles that can be included in purchase orders and thereby help the system to meet the targets set in the restriction profile (see below).

" No days price defines the search horizon for price changes in calendar days for the Investment Buying process.

" The maximum (receipt) range of coverage defines the coverage period for articles that are involved in the order optimizing process or investment buying. The maximum coverage period is limited by the remaining shelf life of the article (expiration date).

" The default service level is used if a service level is not maintained in the vendor master.


SAP AG 1999

PReq ... Purch. orderVendor

Purch. orderVendor

PReq

Restrictionprofile

Purch.orderVendor

Purch.order

Range of coveragealgorithm

Possibleaddit. quantities

Results list

Combination

Vendor

POrg

VSR

Site

Site group

Purch.orderVendor

Purch.order

Control ofdoc. generation

Collectivenumber

Purch.

...Vendor

Purch.propsl

Automatic Load Building

" Automatic load building is mainly used to support the procurement of large quantities of merchandise taking account of any restrictions that are entered for the delivery of these goods.

" To achieve this, the system processes all open purchase requisitions for a combination or vendor/site or site group (including promotion orders, if applicable), and creates optimized purchase orders on the basis of this. Optimization takes place with reference to a target value and based on various additional requirements that are assigned to the vendor in the form of a restriction profile (purchasing data for a purchase organization).

" The bundles of purchase orders that meet all restrictions are flagged as optimized in the results list.

" Whether a collective number is assigned depends on the entry in the control parameters.

" You can use an analysis program to check whether the prerequisites for load building are met.


SAP AG 1999

Purch. orderVendor

Purch. orderVendor

Restrictionprofile

Purch.orderVendor

Purch.order

split

Purch.orderVendor

Purch.order

Collectivenumber

Purch. orderVendor

Purch. orderVendor

Results list,automatic

load building

Results list,automatic

load building Req. Planning

check

change

Selection

Site

Purchase orders

Purchasing

Control data

Processing

Manual Load Building

" Manual load building is used to group together several purchase orders and give them a collective number. In the transaction, it is also possible to change or split the purchase orders selected for load building.

" The function also enables you to check the results of automatic load building.

" The selection criteria are additive.


SAP AG 1999

Restriction profile

Load Building: Restriction Profile

Purch. req. ...Purch. req. ...Purch. order

Purch. req. ...



Purch. req. ... Restriction

Restriction category

Target values• Volume• Weight• Value• Quantity

Tolerance limit for order optimizing

Maintain restrictions

Maintain restriction categ.

• At least• At most• A multiple of

• Volume• Gross weight• Net weight• Net value• Units

Default unit

" A restriction profile can cover several restrictions/conditions. It is then assigned to either a vendor or a combination of vendor and site.

" Each of these restrictions consists of the following

$ Restriction This defines the type of value concerned, for example Gross weight

$ Restriction category This is a relational description, such as ’At most’

$ Target value This defines the value and the unit for the restriction, for example 28 t

" For each restriction, you can enter a tolerance limit, which defines a percentage by which the target value can deviate.


SAP AG 1999

! Describe the functions and steps involved in therelease procedure

! Release purchase requisitions and purchasingdocuments

! Understand the Customizing settings for therelease procedure


Release Procedure: Objectives


SAP AG 1999

Sched.agreem.

Contract

RFQPurch. order

Approval ? Approval ?

Output

Purchaserequisition

Item 10Item 20Item 30

Purchaserequisition

Item 10Item 20Item 30

RFQ

Item 10Item 20

Purch. order

Item 10Item 20

Release Procedure

" If a purchase requisition or purchasing document meets certain requirements, an approval may be required before further processing can be carried out. This need for an approval is mapped to the R/3 System as a 'release procedure'.

" If purchase requisitions need to be released this means that the RFQ (request for quotation) or purchase order for the items contained in the purchase requisition must be approved. The purpose of this approval is to check that the items are correct in terms of content, and ensure that account assignment and source of supply are also correct.

" You can release a purchase requisition on an item-by-item basis or in full. The document type is used to control which of these options is used.

" If purchasing documents (purchase order, contract, scheduling agreement, RFQ) need to be released, this means that the document data must be checked and approved before the document is sent to the vendor. The purpose of this approval is to replace manual signature procedures by electronic ones.

" Purchasing documents can only be released in full. Release on an item-by-item basis is not possible.


SAP AG 1999

! Release strategy

! Release conditions/criteria

! Release point/code

! Release prerequisites

! Release status/indicator

Release Procedure: Terminology

" The release strategy defines the approval transaction. It contains release criteria, codes and prerequisites.

" The release criteria define the release strategy that is to be used. If the value of a request item is 1000, for example, it may require one strategy. A value of 100,000, on the other hand, may require a different strategy, as the responsibility for approving this may lie with another person.

" The release point is the person or department that gives the approval. This is represented in the system by a release code. If a particular strategy required the release of documents by a line superior and a controller, this is acheived by assigning release codes to release points.

" The release prerequisites define the sequence of events for the release procedure. For example, release by the line superior could be the prerequisite for release by the controller.

" The release indicator is a code that indicates the release status. The release status describes the current status of the document item. If final approval has not yet been given, for example, the status may be 'Blocked'. The release status informs the system of the processing steps that are still allowed for the item or the document (for example, whether a purchase order can be created).


SAP AG 1999

Net requirement qtyNet requirement qtyWhich purchase orders have to bereleaseed? By whom? When?

All purchase orders with a value >x USDfirst buyer Smith, then Textiles/South, then

Central Purchasing

Selection of POs by:• (Order) characteristics and valuesRelease for forwarding in accordance with:• Release codes and prerequisites

Purch. orderVendor

Art. 3214 20 pc

Art. 511015 pc

Purch. orderVendor

Art. 3214 20 pc

Art. 5110 15pc

Release Procedure

Releasestrategy

Release Procedure for Purchase Order

" A release strategy for purchase orders consists of:

$ A number of characteristics and possible characteristic values for these. Example: Purchasing organization = R300

Total volume > $1,000,000 Merchandise category = R1142

$ A number of release codes and (possibly empty) release prerequisites, which define the sequence of steps in the release procedure. Example: Release code Release prerequisite

C1: Buyers Smith and Berger

C2: Purch. group Textiles/South Release only after release by C1

C3: Central purchasing Release only after release by C2

A release code can be assigned to selected users by means of an authorization object.

" Whether a (complete) purchase order is subject to a release strategy depends on whether it meets the characteristic values of the strategy. If it does, it is not released for forwarding until the required releases have been completed in the required order by users with the necessary code authorization.


SAP AG 1999

Dictionary Classification Customizing

Communicationstructure

SiteMerch. categoryItem categoryAcct assignm. cat.Value...

Definition ofcharacteristic

Definition of class

Char. WERT•Multiple-value•Table fieldreference•Unformattedentry•Interval valueallowed

Char. BETRIEB•Multiple-value•Table fieldreference•Unformattedentry

x

x

x

Class FRBANFClass type 032

Chars: BETRIEB WERT

x

x

Definition of release group

Releasegroup

Releaseobject

Releaseclass

01 PReq FRBANF

Release Procedure: Prerequisites

" To be able to use the release procedure with the classification system, you must create a release class with characteristics in addition to the relevant Customizing settings. You do this in the classification system.

" The communication structures CEBAN (for purchase requisitions) and CEKKO (for purchasing documents) contain all fields that can be used as release characteristics. You can use a user exit to implement requirements not covered by the standard SAP system.

" All release conditions must be defined as classification characteristics. The characteristic definition contains a link to a field of the communication structure CEBAN or CEKKO. The attribute 'Multiple-value' should be assigned to the classification characteristic, so that the characteristics can be maintained with several values if required, not just a single value. You should allow interval values for characteristics of the data types NUM and CURR.

" You should group together all characteristics that you want to use in release strategies for purchase requisitions or purchasing documents in one class. The class must be assigned to class type 032. You can define one class for purchase requisitions, one class for purchasing documents, and one class for service entry sheets. The release class is assigned to the release object in Customizing (1 = purchase requisitions, 2 = purchasing documents, 3 = service acceptance).


SAP AG 1999

Customizing the Release Procedure

Definition of release codes11Rlse group

0101

Rlse codeA1A2

Workflow DescriptionDepartment 1Department 2

Definition of release indicators22Rlse. ind.

12...

Descriptionnot releasedFixed

xRFQ

xPOx

Field ref.F203

Chngble Val.chnge

Definition of release strategy33Release group 01, Strategy S1

Release codes: A1, A2aaReleaseprerequisites

bb Releasestatuses

cc Classificationdd

A1 A2 Rlse. ind.1 not released1 not released2 released

xx x

Charact.Site

Value

ValueR310, R311> 1000

Code/prerequisiteA1 A2

A1A2 x

" In Customizing for Purchasing, you define the release codes, the release indicators, and the release strategies. Before you make the Customizing settings for a release strategy, you must have defined release classes with release characteristics.

" The release code is a two-character key that identifies a release point. Each of the people involved in the release procedure gives approval in a release transaction using their release code.

" The release indicator reflects the current status of the release. Depending on the release indicator, you can define whether documents that are partially or fully released can be changed, and, if they are changed, whether a new release procedure must be carried out.

" The release strategy defines the approval transaction. When you define a release strategy, you create the prerequistes for the release points. This means you define the sequence in which the release points must give their approval, the release status, and the release conditions in the form of characteristic values in the clasification system.

" Release strategies are uniquely defined by a four-character key. The first two characters of this key represent the release group, the last two represent the strategy. A release object (for example 2 = purchasing documents) and a release class must be assigned to a release group.


SAP AG 1999

User Authorizations and the Release Procedure

PReq

Release A1 %%%%A2 %%%%

Department 1 Department 2

Userauthorizations

Authorization objectM_EINK_FRGValue: A1

Userauthorizations

Authorization objectM_EINK_FRGValue: A2

Berger SmithRelease A1 Release A2

" The authorization object Release code and group in Purchasing (M_EINK_FRG) controls which users can release purchase requisitions and purchasing documents with which release code.

" If you use the release procedure for purchase requisitions without classifications, you must create authorizations for the authorization object Release code in purchase requisitions (M_BANF_FRG).


SAP AG 1999

Releasing Purchase Requisitions and PurchasingDocuments

PReq

Item 10

Initial situation Create release

+ + +

Releasepoint 1

o.k. %%%%

Releasepoint 3

o.k. %%%%

PReq

Item 10

Individual release

PReq

Item 10

Collective release

Release point

o.k. %%%%

Release point

o.k. %%%%

Strategy S1blocked

Releasepoint 2

o.k. %%%%

Releasepoint 4

o.k. %%%%

Convert PReqto RFQ

Convert PReqto PO

" Purchase requisitions can be released individually or collectively. In the collective procedure, you process all purchase requisitions that exist for your release code in a list. This method is advised if releases need to be carried out frequently.

" A list is used to release purchase orders, contracts, scheduling agreements, and so on.

" Documents can ony be released if they meet the release prerequisites.

" Each point involved in the release procedure must approve the document that is to be released. During the approval procedure, the release status, reflected in the release indcator, changes. Further processing of the document is dependent on the release indicator. In addition, you can set the field selection control to be dependent on the release indicator.

" You can reset the release and in doing so, return the release to its previous status.

" You can display the release status of a document. The system then displays the description of the release strategy, the releases carried out so far, and the release codes with which the document must be released.

" You can simulate which release status a document would have if it were released with a particular release code. As a result, you are able to see how further processing can be carried out once you have given your approval for the document.


SAP AG 1999

! Make the settings that define the conditions underwhich ouput can be created and with whichoutput parameters.


Output Determination: Objectives


SAP AG 1999

Issuing Output/Messages

Output/MessagesPrinter EDI Fax

TelexTeletex

Purchasing document

New printout Delivery scheduleline

Reminder.

Rejection Orderconfirmationreminder

" Each time you save an purchase requisition, purchase order, outline agreement, or scheduling agreement, the document determines an output format. This output format represents a type of message.

" The type of message determines which information is output and in what format.

" Output is possible using various media, defined either in the document itself or automatically by output determination.

" The document to be issued is put in an output queue, and, if necessary, released for printing, output by EDI and so on. The document can be released manually or automatically.


SAP AG 1999

The printer is determined in the following sequence only:• Message record printer• Purchasing group printer

Output medium and time can be proposed by the system on the basis of concrete values of the influencing factors (such as the document type or vendor).

Any message types can be output.

Output Determination: Procedure

" The purpose of output determination is to manage messages on the basis of predefined criteria.

" In output determination, the system checks whether 'condition records' exist for the application data that was created in Customizing for example. If they do, one or more messages can be processed (for example, sent electronically).

" The system uses a pre-defined hierarchy (access sequence) for the search carried out in output determination.

" Output determination enables you to control the output of documents differently for each vendor, for example.

" For each purchasing transaction, you can define a separate schema (procedure) for controlling output determination.

" For each message type, you can define that the document is optically archived when it is output.

" For the output of purchasing documents via output determination on a printer, the printer name in the R/3 standard system is only determined from the table 'Assign output devices to purchasing groups', not from user parameter PRI or the user defaults. This is controlled by the print parameters for the message type.


SAP AG 1999

1. New printout NEU2. Reminder MAHN3. Order conf. AUFB reminder

Output determ. procedurePurch. order RMBEF0

Message type: NEUAccess sequence 0001

Access sequence 0001

1. Doc. type/Purch. organization/vendor2. Doc. type

Records for message typesNo valid record availableValid record available

Purchase orderVendor 123Purch. organization 2000

Message headerMessage Type PartnerNEU 1 DRUCKLF 123

Print parameters

PrinterPrint immediately:

Copies:

LT60X2

222

333

444

555

111

Steps in Output Determination

" Output determination in Purchasing enables the sytem to determine the permitted messages in a purchasing transaction and suggest suitable messages. For example, you can define output medium and (if applicable) device, time, and number of copies, depending on certain criteria.

" Output determination is activated automatically when the SAP standard client (000) is installed.

" In a condition table, you create the combination of fields for which you want to create message records.

" The access sequence is a search strategy used by the SAP system to find valid message records.

" The message type is used to map various types of messages to the system, such as order printouts, order confirmation, reminders, and so on.

" The allowed message types for each application (such as reminder, new printout, and so on) are defined in an output determination procedure (sometimes referred to in the system as a 'message schema'). You can assign separate output determination procedures to the individual purchasing document categories (purchase order, contract, RFQ, and so on).


SAP AG 1999

Fine-tuned control• Definition of which print operation this message type is

possible for (e.g. new printout, change printout).

Maintain output determination procedure• Enter message type in schema:

In doing so, you define the purchasing document for whicha message is to be created, and according to whichconditions.

Maintain message types• Indicator for condition access and access sequence for

automatic creation• Partner roles for various recipients

(e.g. vendor, order address, supplying plant)• Processing program and form (depends on output

medium)• Mail title and mail text for internal transmission

NXYZNXYZ

Message Types

" Standard message types are provided for each purchasing document, for example: NEU - Message type for new and change printouts for a purchase order.

" You can define additional message types for each purchasing document category.

" Message records (condition records) must be created for the individual message types that you want to use. These are data records with key fields that represent the condition under which a message was found. The other fields describe the message itself. If a data record transferred by the application matches these key fields, the message is found and can be processed (e.g. issued as a print form or sent as an electronic message).


SAP AG 1999

MessagerecordDoc. type NB

Output PrintoutCopies 2

MessagerecordDoc. type NB

Output PrintoutCopies 2

Document 3

Doc. type NBPOrg R300Vendor C

Document 4

Doc. type NBPOrg R300Vendor D

Document 2

Doc. type NBPOrg R300Vendor B

MessagerecordDoc. type NBPOrg 1000Vendor BOutput TELEX

Document 1

Doc. type NBPOrg R300Vendor A

MessagerecordPOrg 1000Vendor A

Output EDI

Influencing Factors for Output Determination

" You can set up the system so that output determination is dependent on the type of purchasing document, the purchasing organization, or the vendor.

" In Customizing, you can also define other criteria for output determination. When you create condition tables, you select these influencing factors from a field catalog.


SAP AG 1999

Seq. no.

1020...

Condition table

POrg/vendorDoc. type... POrg Vendor

R100 R3000

R300 ...

Message record

Time 16:00Medium: TelefaxCopies 1...

Doc. type

NB

UB

Message record

Time Immediat.Medium: PrinterCopies 1...

Condition Tables and Access Sequences

" Condition tables contain the concrete message records in which you define output details such as the time of output and number of copies. These tables have key fields that reflect the data used in output determination (and proposed for processing). A set of data of this kind corresponds to a condition record in the table. The data part describes the actual message.

" You can create condition tables using various key combinations. In the access sequence, you define which condition tables the system reads and in which order.


SAP AG 1999

Document 1

Doc. type NBPOrg 1000Vendor A

Document 2

Doc. type NBPOrg 1000Vendor B

Document 3

Doc. type NBPOrg 1000Vendor C

Document 4

Doc. type NBPOrg 1000Vendor D

Cond.tab. 1 for EDI vendor:POrg Vendor Message record1000 A Cond.tab. 2 for telex/fax vendor:

POrg Doc. type Vendor Message record1000 NB B Cond.tab. 3 for other vendors:

Doc. type Message recordNB Output details

Steps in Output Determination: Example

" Depending on the type of purchase document, the system determines whether output determination is active, and if it is, which schema (procedure) is used to control output determination.

" The system then checks all of the message types and conditions assigned to these entered for the schema.

" If the conditions for a message type (to be created automatically) are met, the program determines the access sequence to be used for searching for condition records in condition tables.

" You can use the determination analysis to check output determination. This provides you with an overview of all message types defined for your purchasing document. The search sequence, result, and values for key fields of the condition tables provide you with details of the message types for which conditions are fulfilled.


SAP AG 1999

! Use the RFQ and quotation functionality

! Create outline agreements and contracts

! Understand the complexity of purchase orders

! List the options for the optimizing process

! Describe the functions and steps involved in therelease procedure for purchase requisitions andpurchase documents

! Explain the various ways of determining output

You are now able to:

Ordering: Unit Summary


Exercises

Unit: Ordering Topic: Outline Agreements

At the conclusion of these exercises, you will be able to:

• Understand the various kinds of contracts

• Use central contracts

• Create contract release orders

In Purchasing, you want to optimize procedures and create the prerequisites for this in the system. In addition, you are looking for a way of storing pricing and other purchasing-related information that you need to procure particular items from a vendor.

1-1 You have a contractual agreement with your vendor TS3## for the purchase of article TA05##.

According to this agreement, you will buy 1000 pieces starting today and over a period of 2 years. The contract is valid for all sites in purchasing organization R300; there are different prices for two sites.

1-1-1 Create a central quantity contract (agreement type MK).

Make sure you do not enter a site on the initial screen or overview screen.

The following prices apply:

General 145,00 USD

Site R311 145.00 USD + 100 USD freight (FRB1)

Site R301 139.00 USD

Contract no.: ______________________________________________________


1-2 Three of your sites require article TA05##. You want a contract release order with reference to your central contract.

1-2-1 Create a purchase order with reference to the contract and select the contract with your vendor TS3## .

1-2-2 Now create the contract release order: 20 pieces for DC R300, delivery in 4 weeks 12 pieces for store R311, delivery in 8 weeks 8 pieces for plant R301, delivery in 8 weeks Note PO number here: _______________________________

1-2-3 Display the purchase order. Which net prices does the system propose?

R300: ____________________________________________ R311: ____________________________________________ R301: ____________________________________________


Ordering Exercises

Unit: Ordering Topic: Purchase Order


• Convert purchase requisitions to purchase orders

• Use the control options for document types, item categories, and account assignment categories

You now want to convert the purchase requisitions created in Requirements Planning into purchase orders.

2-1 You want to create purchase orders for vendors from the purchase requisitions.

2-1-1 First, check whether the necessary settings are made for the automatic conversion of purchase requisitions to purchase orders. In the article master, check settings for articles TA03## and TA04##. Also check settings for T7## in the site master, and vendor TS1## in the vendor master.

2-1-2 Create a purchase order by converting the purchase requisition created in Requirements Planning into a purchase order “Automatic via Purchase requisition”. In doing this, select purchasing organization R300, vendor TS1## and site T7##. First carry out a test run. When this is successful create your purchase order. Make a note of the number of the purchase order. PO no.:______________________________________________

2-1-3 To continue with the exercises for this unit, create a standard purchase order for DC T7## in storage location 0001 with the following data: Vendor TS1## Purchasing organization: R300 Purchasing group: R30 Delivery date Two weeks from today Site T7## Storage location 0001 Note: Choose “New purchase order” if prompted Article TA03## PO quantity 100 car Article TA04## PO quantity 100 car PO number:_________________________________________


2-2 Document type

2-2-1 Which of these factors influences the number assignments purchasing documents?

– Purchasing organization YES / NO?

– Purchasing group YES / NO?

– Document type YES / NO?

– or company code YES / NO?

2-2-2 Which number ranges are assigned to document type NB for number assignment for purchase orders (go to the IMG)?

internal external

NB Purchase orders

2-2-3 Which item categories are allowed for document type NB? __________________________________________________ _________________________________________________

2-3 Properties of item categories

2-3-1 Find out which indicators are defined for item category Stock transfer.

Internal representation (Itm Cat (int.) ): ________________________

External representation (Itm Cat (ext.) ) ________________________

2-3-2 Which properties are defined for the item category Stock transfer?

Can or must:

a) article masters be used __________________

b) goods receipts be entered ______________________

c) invoice receipts be entered ___________________

d) are additional account assignments allowed ________________

for items of this item category?

Give a reason for answer b):

______________________________________________________

______________________________________________________


2-4 Settings for account assignment category

2-4-1 Look at the settings for account assignment category C. Which predefined or default values does this contain for the indicators for goods receipt and invoice receipt?

Goods receipt:__________________________________________

Invoice receipt.______________________________________

2-4-2 Can account assignment category C be used in purchasing documents for Standard items____________________________________ Third party items___________________________________

2-5 Field selection

2-5-1 How is a suitable field status definition determined? _________________________________________________ _________________________________________________

2-5-2 Which field status definition can you used to change the field selection of all items of a purchase order (field selection reference key NBF) without affecting other item categories? _________________________________________________

2-5-3 Which of the following fields for the field selection group are required or optional?

Required Optional

Site

Currency

Quantity

Price/price unit

Address


Ordering Exercises

Unit: Ordering Topic: Optimizing, Optimizing Quantity with a Rounding Profile


• Set up rounding profiles

• Understand how rounding profiles work

As of now, you want to only order complete pallets from your vendor.

3-1 In this exercise, you define dynamic rounding profiles and check their effect when you create purchase orders.

3-1-1 First create a rounding rule with the number ##. The unit of measure rounding rule should be as follows:

Log. unit of measure % increase % reduction

CAR 70 10

LAY 80 10

PAL 90 10

3-1-2 Create a dynamic rounding profile with the number RO## and description 'Dyn. rounding profile group ##'. You want to use this rounding profile to round quantities to order, sales, and logistics units of measure. Assign the rounding rule you just created to the profile.

3-1-3 Assign the rounding profile you just created to article TA03##, purchasing organization R300, and vendor TS1##. (Purchasing view for article) In the same view, activate the variable order unit.

3-1-4 Check whether the following units of measure are already assigned to article TA03##. If they are not, change the article data accordingly (basic data for the article). Select the unit Carton as the order unit.

1 layer 80 PC

1 pallet 400 PC


3-1-5 Enter a purchase order for DC T7## for article TA03## from vendor TS1##. Enter several items for the article each with different quantities and check whether the quantities are adjusted in line with your rounding profile.

Quantity (PC)

Result (PC)

Result (LAY/PAL)

365

306

311

3-1-6 Reverse the changes made in exercise 3-1-3 if you do not want to continue with exercise 3-2.

3-2* Unit of measure groups

3-2-1 Check whether the following unit of measure groups exist (in Alt. Unit of measure column): CAR (carton) PAL (pallet) If they do not, create the group using number 90##.

3-2-2 In rounding profile R0##, define that the unit of measure group is checked for the vendor.

3-2-3 Assign the unit of measure group to vendor TS1## and article TA03##. (Purchasing view, article master)

3-2-4 Enter a new purchase order for this article for DC T7## from vendor TS1## and interpret the result:

Quantity (PC)

Result (PC)

Result (CAR/LAY/PAL)

311

_________________________________________________

3-2-5 Reverse the changes made in exercises 3-1-3 and 3-2-3.


Ordering Exercises

Unit: Ordering Topic: Optimizing with Restriction Profiles


• Set up restriction profiles

You have agreed with some vendors that you want to order minimum quantities or fill complete trucks for a purchase order.

3-3 Setting up a restriction profile For the delivery of large quantities, you agreed to outline conditions with your vendor for the optimizing of purchase orders.

3-3-1 First create a restriction profile with the name RP##. Enter the description ‘Restr. profile gr.##’.

3-3-2 The effect of the restriction profile should be that you always order at least 2,000 LB and no more than 20,000 LB (gross weight). However, you can fall below the minimum weight by 15%.

3-3-3 Assign restriction profile RP## to vendor TS1##.

3-3-4 Enter 2 purchase orders for DC T7##, storage location 0001 for vendor TS1## (purchasing organization R300, purchasing group R30): 1st purchase order: Delivery date 15. of next month Article TA03## Quantity 60 CAR PO number: _________________________________________________ 2nd purchase order: Delivery date 20. of next month Article TA04## Quantity 80 CAR PO number: ______________________________________________________


3-3-5 Check whether the purchase orders you created already meet the restriction profile. On the selection screen, ensure that the flag is set in the field “Include POs”. If the requirements are not yet met, increase the order quantity of article TA04## by 20 CAR and bundle the orders for the earliest possible delivery date. Make a note of the collective number that is assigned: _________________________________________________

3-3-6 Check the delivery date of your purchase orders. 1st purchase order: _________________________________________________ 2nd purchase order: _________________________________________________

3-3-7 Was a delivery date changed ? _______________________________ Why was it changed ? _________________________________________________


Ordering Exercises

Unit: Ordering Topic: Release Procedure, Terms and Concepts


• Define important terms relating to the release procedure

• Map the current release/approvals method in your company to the R/3 System

• Explain the basic characteristics of the release procedure

You want to introduce the release procedure. First, however, you want to understand the basic terms and concepts.

4-1 Define the following terms in your own words

4-1-1 Release code:

_________________________________________________________ _________________________________________________________

4-1-2 Release indicator:

_________________________________________________________

_________________________________________________________

4-1-3 Release prerequisites:

_________________________________________________________

_________________________________________________________

4-1-4 Release strategy:

_________________________________________________________

_________________________________________________________

4-1-5 Release conditions:

_________________________________________________________

_________________________________________________________


4-2 The aim of the release procedure in the SAP System is to replace handwritten approvals by online approvals. Briefly describe the release/approvals procedure in place in your company.

_______________________________________________________________

_______________________________________________________________

_______________________________________________________________

4-3 A user in your company creates a purchase requisition. An item in this purchase requisition must be approved, that is to say, released. How is the status of the purchase requisition affected if the required approval is not given?

___________________________________________________________

___________________________________________________________


Unit: Ordering Topic: Release Procedure, Releasing Purchase Requisitions and Purchase Orders


• Describe the functions and steps involved in the release procedure

• Release purchase requisitions

• By looking at the current system setup, describe how the Customizing settings for the release procedure are maintained

You want to have purchase requisitions over a certain value released by various people before the required articles can be ordered. You can use the release procedure to achieve this.

4-4 New purchase requisition

4-4-1 Create a purchase requisition for articles TA05## and TA06## for site R300. On the initial screen, enter purchasing group R50+## and the requirement tracking number IRT330. In four weeks, you need 100 pieces of each article for DC R300. On the details view for the items, check whether your purchasing group really was assigned. If not, overwrite the R30 with your group number R50+##. Save your entries. PReq. no:______________________________________________

4-4-2 Display a list of the items in your purchase requisition. In doing this, use your purchasing group R50+## as a selection criterion. Find out the following information on the release status of your purchase requisition items: Release indicator: __________________________________ Release strategy: _____________________________________ Release points/codes (final relase):________________________


4-5 Find out about the Customizing settings for the release procedure for purchase requisitions (with classification).

4-5-1 Read the documentation for the IMG activity for the node Set up procedure with classification.

4-5-2 As a result of which criteria was release strategy RT assigned to your purchase requisition item?

Criteria: _______________________________________________

______________________________________________________

______________________________________________________

4-5-3 Look at the settings for the release prerequisites. Which release point can release the document without a prerequisite? Release point: __________________________________________

4-5-4 What prerequisites must be met before release point R2 can release a purchase requisition item? Prerequisite: _________________________________________

4-6 Approve the purchase requisition items for your purchasing group R50+## that are waiting to be released. Release them for the sending of inquiries using release code R1.

Choose the Collective release function.

Be sure that you enter only your purchase requisition for processing. If you do not do this, you could release the purchase requisitions of all other course participants.

4-6-1 Which release code did you use for the release? Release code: __________________________________________

4-6-2 Once the document has been released, look at how the release indicator and the release status of your purchase requisition item have changed. Release indicator: ____________________________________ Release status: ________________________________________


Document Release Procedure Exercises

Unit: Ordering Topic: Customizing


• Set up a simple release procedure by creating new release codes and a release strategy

• Create a purchase requisition that is subject to your new strategy

Your company wants to understand the Customizing activities for release procedures. You have therefore decided to configure a new release procedure for purchase requisitions.

*4-7 In your company, users must enter requirement tracking numbers for all purchase requisitions. You need a new release strategy and a new release code for purchase requisitions that were created with the requirement tracking number IRT330-##.You must therefore define a new release strategy for purchase requisitions.

4-7-1 First define your own release code ## called “Group ##”for release group 01.

4-7-2 Define the new release strategy ## called “Group ##”. This should also be assigned to release group 01.

4-7-3 Assign release code ## to your release strategy. Confirm the release prerequisites and statuses proposed by the system.

4-7-4 Define the following criteria for your release strategy:

Choose Classification to enter the values for the release criteria.

Account assignment category (empty) Merchandise category: Electricals Site: R300 Purchasing group: R50+## Requirement tracking number: IRT330-## Total value of item: > 10000 Purch. requisition doc. type: NB Save your release strategy.


*4-8 Create a purchase requisition for article TA05## to test your new release strategy. On the initial screen, enter purchasing group R50+## and the requirement tracking number IRT330-##. In four weeks, you need 100 pieces of each article for DC R300. Look at whether a release strategy was assigned to the purchase requisition.

4-8-1 Which strategy was assigned? ____________________ Save your purchase requisition.

PReq. no:______________________________________________

*4-9 Release your purchase requisition using the Individual release function. Use release code ##.


Ordering Exercises

Unit: Ordering Topic: Output/Message Determination


• Check the settings for output determination in Purchasing

• Define a new message type and make the necessary Customizing settings

In your company, either two copies of a message are output on a printer (one copy for the vendor and one for the buyer), or (in the case of “special” vendors only) the message is sent to the vendor by fax, with the buyer copy being printed out.

In your project team, it is your job to test output determination and set up any required changes.

5-1 Message determination schema

5-1-1 Which message determination schema is assigned to purchasing document category ‘Purchase order’?

______________________________________________________

5-1-2 Is new message determination triggered for printing change messages?

______________________________________________________

5-1-3 Which message types are assigned to the schema? Which conditions are checked for these message types?

______________________________________________________

______________________________________________________

______________________________________________________


5-2 Message types

5-2-1 Look at message type NEU. Which access sequence is used for this message type?

______________________________________________________

Are conditions accessed for this message type? ___________

Which indicator controls printer determination? __________

5-2-2 Which output operations is this message type used for? Note: see short text.

______________________________________________________

5-3 Access sequences

5-3-1 Look at the details screen for the access sequence for message type NEU. In what order are the message records accessed in this access sequence (= sequence of condition tables)?

______________________________________________________

______________________________________________________

______________________________________________________

______________________________________________________

5-3-2 Under master data in the (application) menu for Purchasing, call up the function for changing message records for purchase orders.

For which key combinations can you maintain message records for message type NEU? Compare the key combinations with the access sequence.

______________________________________________________

______________________________________________________

5-3-3 Select the third condition table ("Message determination Purchasing: Document type") and look at the message record (condition record) for message type NEU and document type NB. Make a note of the following data for this message record:

Transmission medium: _________________________________________

Time: _____________________________________________

Output device: __________________________________________

Print immediately? ________________________


5-3-4 Look at the message output for your purchase order created in exercise 2-1-3 for the topic Purchase Order. Choose changing the purchase order. What information is displayed for this message on the details screen for the communication data?

Transmission medium: _________________________________________

Time: _____________________________________________

Output device: __________________________________________

Why was a message created for this purchase order? From which message record (condition record) do these details come from? You can check these details using determination analysis.

______________________________________________________

______________________________________________________

5-4 New message type

5-4-1 For purchase orders transmitted by fax, you need a copy for your files. Define new message type CP## for this copy.

Which transmission medium is defined for message type CP##?

______________________________________________________

Describe how this new message type for purchase orders is included.

______________________________________________________

______________________________________________________

______________________________________________________

______________________________________________________

______________________________________________________


Solutions

Unit: Ordering Topic: Outline Agreements

The Solutions are based on the following assumptions:

• You are on the SAP Retail initial screen (transaction W10T). You should enter this transaction as the start menu in your user parameters.: System →→→→ User profile →→→→ Own data, on the 'Defaults' view, enter ‘W10T’ as the StartMenu.

• If the term Retailing is written before a path, you are in the SAP Retailing menu, the SAP Retail application menu (transaction W10M). You get here from SAP Easy Access SAP Retail by choosing Logistics → → → → Retailing

• If the term IMG is written before a path, you are in the Implementation Guide of the R/3 System, where you can make Customizing settings. You get here from SAP Easy Access SAP Retail by choosing Tools →→→→ AcceleratedSAP →→→→ Customizing → → → → Edit project →→→→ Display SAP Reference IMG (F5) or the transaction NSPRO → → → → F5


1-1 Retailing: Purchasing →→→→ Purchase order →→→→ Outline agreement → → → → Contract → → → → Create 1-1-1 Choose vendor TS3##, agreement type MK, purchasing organization R300,

purchasing group R30. [Enter] If the system asks you for a company code, enter R300. [Enter] The end of the period is 2 years from today. [Enter]

Enter a general price 145 for the net price of article TA05## in the item overview, quantity 1,000 pc.

To enter the conditions for store R311, choose Edit → Site conditions → Overview in the item overview screen.

Enter store R311, and choose [Enter].

Enter a net price of 145 for store R311. Choose Item →→→→ Conditions to enter the freight (condition type FRB1).

Do not save yet. Choose [Back]. Proceed in the same way for distribution center R301.

Important: Create each item with Reference to the contract.

Save your entries once you have entered the conditions for both sites.

1-2 Retailing: Purchase order →→→→ Purchase order → → → → Create → → → → Vendor known 1-2-1 Enter vendor TS3##

Choose [Reference to contract]. Enter outline agreement number from 1-1-1. [Enter].

1-2-2 Select your contract and choose [Adopt].

The data from your contract should now be copied to your PO item.

Enter the quantity, delivery date, and first plant. [Enter]

Purchase order →→→→ Create →→→→ w. reference →→→→ To contract Confirm the dialog box. Enter the data of the next site.

Edit →→→→ Adopt

Purchase order →→→→ Create →→→→ w. reference →→→→ To contract Enter data.

Edit →→→→ Adopt Save the result.

1-2-3 Retailing: Purchase order →→→→ Purchase order → → → → Change Which net prices does the system propose?

R300 ... 145 R311: 145 but: Item → Conditions because of freight R301: 139


Ordering Solutions

Unit: Ordering Topic: Purchase Order

2-1

2-1-1 Article Retailing: Master data →→→→ Article data →→→→ Article →→→→ Change Article TA03##, TA04##, Logistics Distribution Center view T7## Field group Automatic control parameters, Field Autom. PO is selected. Site Retailing: Master data →→→→ Site data →→→→ Site →→→→ Change DC T7##, tab Purchasing/Distribution Field group Purchasing Field Automatic purchase order is selected Vendor Retailing: Master data →→→→ Vendor date →→→→ Edit vendor →→→→ Vendor →→→→ Change →→→→ Purchasing (immed.) Vendor TS1##, Purchasing data Field Automatic purchase order is selected

2-1-2 Retailing: Purchasing →→→→ Purchase order →→→→ Purchase order →→→→ Create→→→→ Automatically via purchase requisition

Field name or type of data Values

Purch. organization R300 Vendor TS1## Site T7## Test run !!!!

Program →→→→ Execute Double click on Test run successful to display the numbers of the purchase

requisitions found; 2x[Back] Select Test run box and Program →→→→ Execute 2x[Back]


2-1-3 Create purchase order: Retailing: Purchasing → Purchase order → Purchase order → Create → Vendor known


Vendor TS1##

Purch. organization R300 Purchasing group R30 Delivery date Two weeks from today

Site T7## Storage location 0001

[Enter]


Articles TA03##

Order qty 100 Unit Car Articles TA04## Order qty 100 Unit Car


2-2 Doc. type

2-2-1 In the standard system, number assignment for the purchasing documents is dependent on the document type, but not the purchasing organization,-purchasing group, or company code.

2-2-2 IMG: Materials Management →→→→ Purchasing →→→→ Purchase Order →→→→ Define Document Type

internal external

UB purchase orders (purchase requisitions)

01 02

NB purchase orders (standard purchase orders)

45 41

2-2-3 Select line NB, double click on “Link purchase requisition – document type”

Item category Item category text

Standard

B Limit

K Consignment

L Subcontracting

S Third party

T Text

D Service

2-3 Properties of item categories

2-3-1 Choose IMG: Materials Management →→→→ Purchasing →→→→ Define External Representation of Item Categories. Internal: 7 External: U

2-3-2 Article is required.

Goods receipts must be entered for stock transfer items as this is the only way the stocks can automatically be posted from the SAP System as “consumption”.

Invoice receipts must be entered as the indicator "RE" cannot be changed in the order item.

Additional account assignment is possible, but not mandatory.


2-4 Settings for account assignment category

2-4-1 Choose IMG: Materials Management →→→→ Purchasing →→→→ Account Assignment →→→→ Maintain Account Assignment Categories.

Select line with “C”, Goto →→→→ Details Goods receipt: A goods receipt is linked with an order item, but the indicator is changeable. The indicator for non-valuated goods receipt is not selected, but can be.

Invoice receipt: An invoice receipt is linked with an order item, but the indicator is changeable.

2-4-2 Choose Materials Management →→→→ Purchasing →→→→ Account Assignment →→→→ Define Combination of Item Categories/Account Assignment Categories.

In our training system, account assignment category C can be used for standard items, but not for third party items.

2-5 Field selection

2-5-1 The assignments is defined for the relevant document type. IMG: Materials Management →→→→ Purchasing →→→→ Purchase Order →→→→ Define Document Types Document type NB Field selection reference key NBF

2-5-2 IMG: Materials Management →→→→ Purchasing →→→→ Purchase Order →→→→ Define Screen Layout at Document Level. Field selection reference key: NBF

2-5-3 Double click on line to see details of settings

Required Optional

Site X

Currency X

Quantity X

Price/price unit X

Address X


Ordering Solutions

Unit: Ordering Topic: Optimizing, Optimizing Quantity with a Rounding Profile

3-1 Rounding profiles

3-1-1 IMG: Materials Management →→→→ Purchasing →→→→ Order Optimizing →→→→ Quantity Optimizing and Allowed Logistics Units of Measure →→→→ Unit of Measure Rounding Rules

Log. unit of measure % increase % reduction

CAR 70 10

LAY 80 10

PAL 90 10

3-1-2 IMG: Materials Management →→→→ Purchasing →→→→ Order Optimizing →→→→ Quantity Optimizing and Allowed Logistics Units of Measure → → → → Maintain Rounding Profile Do NOT enter a site, Button [Dynamic] Rounding off method: 2 Rounding rule: ##

3-1-3 Retailing: Master data →→→→ Article data, Article →→→→ Change Purchasing organization R300 “Purchasing” view Field group: Data for each vendor/purchasing organization/site Rounding profile: RO## Field group: General data for each vendor. Variable order unit: 1

3-1-4 Retailing: Master data →→→→ Article, Article → → → → Change “Basic data” view

1 layer 80 PC

1 pallet 400 PC


3-1-5 Retailing: Purchasing →→→→ Purchase order → → → → Create→→→→ Vendor known

Quantity (PC)

Result (PC)

Result (LAY/PAL)

365 400 1 PAL

306 320 4 LAY

311 320 4 LAY

3-1-6 Retailing: Master data →→→→ Article, Article → → → → Change “Purchasing” view Deselect rounding profile Deactivate variable order unit Save your entries

3-2 Unit of measure groups

3-2-1 IMG: Materials Management → → → → Purchasing →→→→ Order Optimizing → → → → Quantity Optimizing and Allowed Logistics Units of Measure → → → → Unit of Measure Groups CAR and PAL exist in Alt. Unit of measure column for group 0090. [New entries] if they do not exist

3-2-2 IMG: Materials Management →→→→ Purchasing →→→→ Order Optimizing → → → → Quantity Optimizing and Allowed Logistics Units of Measure → → → → Maintain Rounding Profiles Enter RO##, [Change] Activate “Check vendor” field

3-2-3 Retailing: Master data →→→→ Article, Article → → → → Change “Purchasing” view Field group: Data for each per vendor/purchasing organization/site Field Units group

3-2-4 Retailing: Purchasing →→→→ Purchase order → → → → Purchase order → → → → Create →→→→ Vendor known

Quantity (PC)

Result (PC)

Result (CAR/LAY/PAL)

311 320 16 CAR

With a quantity of 311 PC, it is not possible to round to a pallet (see exercise 3-1-5). Rounding to layers is not possible either now, as the layer is not contained in the unit of measure group. Therefore the quantity is ordered in cartons.

3-2-5 Same as solution 3-1-6


Unit: Ordering Topic: Optimizing with Restriction Profiles

3-3 Set up a restriction profile

3-3-1 Restriction profile IMG: Materials Management →→→→ Purchasing →→→→ Order Optimizing →→→→ PO-Based Load Building → Maintain restriction profiles for load building [New entries]

3-3-2 Select RP## and choose [Profiles for optimal PO-based load building] [New entries] Internal restriction Weight (gross) Internal restriction category Minimum Weight restriction 2000 Weight unit LB OO tolerance 15 (for minimum) After entering a minimum, choose Goto→→→→Next entry to enter the maximum values (20,000) Save your entries

3-3-3 Assignment to vendor Retailing: Master data →→→→ Vendor Edit vendor →→→→ Vendor →→→→ Change →→→→ Purchasing (immed.) Enter vendor TS1## and POrg R300, select purchasing data, [Return] Enter the restriction profile on the “Conditions” field group, field Order optim. Rest. Save your entries

3-3-4 Retailing: Purchasing →→→→ Purchase order →→→→ Purchase order → → → → Create →→→→ Vendor known 1st purchase order: Delivery date 15. of next month [Return] Article TA03## Quantity 60 CAR Save your entries 2nd purchase order: Delivery date 20. of next month [Return] Article TA04## Quantity 80 CAR Save your entries


3-3-5 Retailing: Purchasing →→→→ Purchase order → → → → Order optimizing →→→→ PO-Based load building →→→→ Manual load building Enter the vendor and site, [Execute] or F8 Select the released purchase orders and [Enter] A traffic light icon is displayed indicating whether the restrictions are met. If they are not, increase the order quantity of article TA04## by 20 CAR Select the second purchase order and [Change PO] Increase order quantity by 20 Save your entries … and create a load from your purchase orders for the earliest possible delivery date. Select both purchase orders created in 3-3-4 and [Enter] → Traffic light turns green Enter delivery date in the header (15th of next month) Save your entries, anser Yes to “Combine purchase orders?”.

3-3-6 Retailing: Purchasing →→→→ Purchase order, Purchase order → → → → Display 1st purchase order: Date unchanged 2nd purchase order: same date as first purchase order

3-3-7 The date of the second purchase order was changed Order optimizing creates the same delivery date in all purchase orders.


Ordering Solutions

Unit: Ordering Topic: Release Procedure, Terms and Concepts

4-1 Use the SAP Library to find information on the definitions:

Help →→→→ SAP Library →→→→ Logistics →→→→ MM Materials Management →→→→

MM Purchasing →→→→ Release (Approval) Procedure

4-2 If an item was not approved an inquiry or purchase order cannot be created, for example.

4-3 Help →→→→ SAP Library →→→→ Logistics →→→→ MM Materials Management →→→→ MM Purchasing →→→→ Release (Approval) Procedure


Ordering Solutions

Unit: Ordering Topic: Release Procedure, Releasing Purchase Requisitions and Purchase Orders

4-4 Retailing: Purchasing →→→→ Requirements planning → Purchase requisition →→→→ Create

4-4-1 Delivery date: in 4 weeks Site: R300 Purchasing group: R50+## Requirement tracking number: IRT330 TA05## 100 pieces TA06## 100 pieces

[Save]

[Execute]

4-4-2 Retailing: Purchasing→→→→Requirements planning→→→→Purchase requisition →→→→ List display→→→→ General Select only your purchasing group R50+## [Execute]

Select a PReq number in the list and choose Goto →→→→ Release strategy. Release indicator: S (blocked)

Release strategy: RT Release points / codes: R1, R2


4-5 Customizing settings

4-5-1 IMG: Materials Management →→→→ Purchasing →→→→ Purchase requisition →→→→ Release procedure→→→→ Procedure with classification →→→→ Set up Procedure with Classification Choose Documentation for IMG activity next to the node Procedure with classification.

4-5-2 IMG: Materials Management →→→→ Purchasing →→→→ Purchase requisition →→→→ Release procedure →→→→ Procedure with classification→→→→ Set up Procedure with Classification

Choose Release strategy.

Choose strategy RT, Goto →→→→ Details Choose Classification.

Criteria

Account assignment category = empty

Merchandise category = Electricals and others

Site: R300

Purchasing group = R50+## and others Requirement message number = IRT330

Total value of item = > 10000 USD

Document type = Purchase requisition

4-5-3 IMG: Materials Management →→→→ Purchasing →→→→ Purchase requisition →→→→ Release procedure →→→→ Procedure with Classification →→→→ Set up procedure with classification Choose Release strategy.

Choose strategy RT, button [Details] Choose Release prerequisites. Release point R1 can release the object without prerequisites.

4-5-4 Prerequisite: R1 must release before R2 can release.


4-6 Retailing: Purchasing →→→→ Requirements Planning →→→→ Purchase requisition →→→→ Release →→→→ Collective release

Be sure that you enter only your purchase requisition number for processing. If you do not do this, you could release the purchase requisitions of all other course participants.

Enter release code R1 and your purchase requisition from 4-4-1. [Execute]

Select the purchase requisitions in the list and choose [Save] to release.

4-6-1 Release code: R1

4-6-2 Select all items and choose List→→→→Save release Release indicator: A

Release status: fixes inquiry


Document Release Procedure Solutions

Unit: Document Release Procedure Topic: Customizing

*4-7 IMG: Materials Management →→→→ Purchasing →→→→ Purchase requisition →→→→ Release procedure →→→→ Procedure with Classification →→→→ Set Up Procedure with Classification 4-7-1 Choose Release code.

Choose New entries.

Group 01, code ##, description as per exercise

4-7-2 Choose Release strategy.

Choose New entries.

Enter release group 01 and release strategy ##.

4-7-3 Enter release code ##.

Choose Release prerequisites and Release statuses to confirm.

4-7-4 Choose Classification.

4-8 Retailing: Purchasing →→→→ Requirements planning →→→→ Purchase requisition →→→→ Create

4-8-1 Choose Goto →→→→ Release information →→→→ Release strategy to look at the strategy.

Strategy ## was assigned.

4-9 Retailing: Purchasing →→→→ Requirements planning →→→→ Purchase requisition →→→→ Release →→→→ Individual release

Enter the number of your purchase requisition and release code ##. Choose [Enter]. On the next screen, select the item and choose [Release and save]


Ordering Solutions

Unit: Ordering Topic: Output/Message Determination

5-1 Message determination schema

5-1-1 IMG: Materials Management →→→→ Purchasing →→→→ Messages →→→→ Output Control →→→→ Message Determination Schemas →→→→ Define Message Schema for Purchase Order →→→→ ...

... →→→→ Assign Schema RMBEF1

5-1-2 No

5-1-3 ... →→→→ Maintain message determination schema: Purchase Order Choose RMBEF1, double click “Control data” NEU Condition 101 MAHN Condition 103 AUFB Condition 107 ACE1 Condition (blank) NEUS Condition 101

5-2 Message types

5-2-1 Choose Materials Management →→→→ Purchasing →→→→ Messages →→→→ Output Control →→→→ Message Types →→→→ Define Message Types for Purchase Orders →→→→ ...

... →→→→ Maintain Message Types for PO Select line NEU, Button [Details] Tab General data Access sequence 0001 Condition access: Yes

Tab Print The printer is determined via the purchasing group indicator.

5-2-2 ... →→→→ Fine-Tuned Controls Purchase Order Output operations 1 (new) and 2 (change) – see short text


5-3 Access sequences

5-3-1 IMG: Materials Management →→→→ Purchasing →→→→ Messages →→→→ Output Control →→→→ Access Sequences →→→→ Define Access Sequences for Purchase Order.

Output determination Purchasing: POrg./vendor for EDI Output determination Purchasing: Doc. type/POrg./Vendor Output determination Purchasing: Document type

5-3-2 Retailing: Purchasing →→→→ Purchase order →→→→ Master data →→→→ Messages →→→→ Purchase order →→→→ Change Enter NEW as output type, [Enter] You can maintain access sequence 0001 for the condition records in the four condition tables dependent on ... - POrg./vendor for EDI - Doc. type/Purch. org./vendor - Document type

5-3-3 Select Document type, field Purchasing doc. Type NB [Execute] Button [Communication] Transmission medium: 1 Time: 3 Output device: xxxx Print immediately: not selected

5-3-4 Transmission medium: Print output Time: 3 Output device: xxxx

Message record (condition record) for document type NB


5-4 New message type

5-4-1 IMG: Materials Management →→→→ Purchasing →→→→ Messages →→→→ Output Control →→→→ Message Types →→→→ Define Message Types for Purchase Orders →→→→ ...

... →→→→ Maintain Message Types for PO Copy message type NEU and define transmission medium 1 as the default.

... →→→→ Fine-Tuned Control: Purchase Order Make an entry for print operation 1 and output type CP##.

Maintain message determination schema RMBEF1. Choose Materials Management →→→→ Purchasing →→→→ Messages →→→→ Output Control →→→→ Message Determination Schema →→→→ Define Message Schema for Purchase Orders →→→→ Maintain Message Determination Schema: PO. Make an entry for example with step 55 and counter ## for message type CP##. Take account of requirement 101.

Maintain the permitted partner roles for your message type CP##. Choose Materials Management →→→→ Purchasing →→→→ Messages →→→→ Output Control →→→→ Partner Roles per Message Type →→→→ Define Partner Roles for Purchase Order. Include at least one new entry for partner role LF and medium 1.

Assign an output program and form for the output. Choose Materials Management →→→→ Purchasing →→→→ Messages →→→→ Forms (Layout Sets) for Messages →→→→ Assign Forms and Output Program for Purchase Order. Copy the entry for message type NEU and medium 1.