Tuesday, 31 May 2016

Define Schema Determination

Determination of calculation schema is a customizing activity.
You have to assign a pricing procedure to a schema group purchasing organization / schema group vendor combination.
Settings are located in Define schema determination option.
Step 1)
Choose Determination Calculation schema for Standard Purchase Orders.
Step 2)
  • Choose schema group for purchasing organization.
  • Choose schema group for vendor.
  • Choose calculation schema to be assigned to the purch.org/vendor schema group combination.
Let's analyze two records on this screen.
  1. In case 1, we have chosen default schema group for purchasing organization (first field is empty), also, default schema group for vendor (second field is empty), for this combination of both default schema groups, we assigned a RM0000 (Purchasing document - Big) calculation schema.
  2. In case 2, we have chosen schema group for purchasing organization as 0001, and schema group for vendor as 01, and assigned an RM1000 calculation schema to the combination.
How does it work?
Let's say that we have a purchase organization 0001 with blank (default) schema group assigned to it, and a purchase organization 0002 with schema group 0001 assigned to it (not default).
We also have a vendor 1 with assigned schema group as blank (default), and vendor 2 with schema group defined as 01 (not default).
  • In case we are creating a purchase order through purchasing group 0001 for vendor 1, our calculation schema is going to be determined as RM0000.
  • If we are creating a PO for vendor 2 through purchasing organization 0001, calculation schema RM1000 will be determined.
  • If we are creating a PO for any of the two vendors in purchasing organization 0002, in both cases there will be determined calculation schema RM1000.
The below table clarifies the calculation schema determination.
VENDORVENDOR SCH.GRP.   
Vendor 1Default (blank)RM0000RM1000 
Vendor 201RM1000RM1000 
  Default (blank)0001PURCH.ORG.SCH.GRP.
  Purchasing Organization 0001Purchasing Organization 0002PURCHASING ORGANIZATION
You are done. Your pricing procedure is now fully functional.
You can use some advanced features like condition exclusions, copy control, define limits for condition types etc.

Monday, 30 May 2016

How to define Schema Determination

Determination of calculation schema is a customizing activity.
You have to assign a pricing procedure to a schema group purchasing organization / schema group vendor combination.
Settings are located in Define schema determination option.
Step 1)
Choose Determination Calculation schema for Standard Purchase Orders.
Step 2)
  • Choose schema group for purchasing organization.
  • Choose schema group for vendor.
  • Choose calculation schema to be assigned to the purch.org/vendor schema group combination.
Let's analyze two records on this screen.
  1. In case 1, we have chosen default schema group for purchasing organization (first field is empty), also, default schema group for vendor (second field is empty), for this combination of both default schema groups, we assigned a RM0000 (Purchasing document - Big) calculation schema.
  2. In case 2, we have chosen schema group for purchasing organization as 0001, and schema group for vendor as 01, and assigned an RM1000 calculation schema to the combination.
How does it work?
Let's say that we have a purchase organization 0001 with blank (default) schema group assigned to it, and a purchase organization 0002 with schema group 0001 assigned to it (not default).
We also have a vendor 1 with assigned schema group as blank (default), and vendor 2 with schema group defined as 01 (not default).
  • In case we are creating a purchase order through purchasing group 0001 for vendor 1, our calculation schema is going to be determined as RM0000.
  • If we are creating a PO for vendor 2 through purchasing organization 0001, calculation schema RM1000 will be determined.
  • If we are creating a PO for any of the two vendors in purchasing organization 0002, in both cases there will be determined calculation schema RM1000.
The below table clarifies the calculation schema determination.

VENDORVENDOR SCH.GRP.   
Vendor 1Default (blank)RM0000RM1000 
Vendor 201RM1000RM1000 
  Default (blank)0001PURCH.ORG.SCH.GRP.
  Purchasing Organization 0001Purchasing Organization 0002PURCHASING ORGANIZATION
You are done. Your pricing procedure is now fully functional.
You can use some advanced features like condition exclusions, copy control, define limits for condition types etc.

Sunday, 29 May 2016

How to Define Schema Group

We can create schema groups for purchase organization or vendor.
Schema groups are then assigned to purchase organizations in customizing and to vendors in vendor master record. They are used to map the pricing determination process based on the vendor or purchase organization.
Step 1)
  1. Choose Define Schema Group from SPRO IMG path like in the previous topics.
  2. From the menu below, choose Schema Groups: Vendor.
Step 2)
On the next screen, you can define schema group for use in vendor master & maintain a description of your vendor schema groups.
You define only schema group number and description. There are no settings as this is used to be assigned to the vendor master record.
For example, we might need to create a new group 02 – Schema vendor 02.
Step 3)
Next, choose schema groups for purchasing organizations from main schema group menu.
Define your schema groups per your requirement. You define only schema group number and description. No settings either, just an indicator assigned to a purchasing organization.
Step 4)
Choose Assignment of Schema Group to Purchasing Organization from schema group menu.
Assign desired schema group to purchasing organization. As you can see on the below screen, the field on the right is left blank, that is because if you leave it blank, it means that the default purchase organization schema should be used.
If you want to use a standard schema for group organization, leave the field in the previous screen blank, and if you want to choose the Schema 0001 enter 0001 in the field marked in the upper screen. Screen with the available schemas for assignment to purchasing organization is available in the previous step (same as on below screen).
Step 5)
Assigning a schema group in the vendor master.
Go to the purchasing data view. You will see Schema group, Vendor field. You can choose whichever schema group is suitable for this vendor, default is left blank for standard schema vendor.
You can see that this field is maintained at purchasing organization organizational level (0001), so in combination with schema group for that purchasing organization, if we check tables, the selected calculation schema will be RM0000 – Purchasing Document (Big), as you can see in the next topic.

Saturday, 28 May 2016

How to Define Calculation Schema


As you saw in the previous topic, a condition type is assigned a calculation schema. It is defined in customizing.
Step 1)
In IMG, Choose Define Calculation Schema option.
Step 2)
  1. You can see that the initial screen contains a dialog structure with Schemas as the top level.Additionally, you can drop down to Control data.
  2. Right portion of the screen shows Usage and Application data.We can see that usage is to A – Pricing, and application is set to M – Purchasing.
  3. Contains a list of schemas and its short description
Step 3)
  1. Click on the schema you want to change
  2. Double click the Control data node.
Step 4)
The following table of condition types (reference steps) is used in this calculation schema. There are a number of options for condition types that can be set for this calculation schema (different settings could be set for the same condition type in the other calculation schema). List of possible options with a short description:
  1. Step (indicates the sequence of the procedure)
  2. Counter (counts the number of conditions in a step)
  3. Condition type (one of the already defined condition types - previous topic)
  4. From (reference step to be used as a base for calculating percentage conditions)
  5. To (up to which step the conditions should be used as a base for calculating percentage conditions)
  6. Manual (allowed to be entered manually)
  7. Required (required condition)
  8. Statistics (only statistical condition)
  9. Print (printing control for condition)
  10. Subtotal (how to calculate the subtotal)
  11. Requirement (custom routine for the requirement)
  12. CalType (calculating routine - if custom routine is needed)
  13. BasType (custom routine for base condition value)
  14. AccKey (G/L account key)
  15. AccrualAccKey (G/L account key for accruals or provisions)
After the right settings are applied to all of the conditions in a procedure you can save the transaction data.

Thursday, 26 May 2016

Define condition tables

Now, when we know what is a condition table, what it is used for, we can see where a condition table can be defined, and what option we have while creating it.

As you have seen in the previous topic, we have used table 18 – Material Info Record in our example.
Let's see where and how it is defined.
Step 1)
  1. Execute the transaction code V/05 and on the initial screen enter our table number - 18.
  2. In the section 2, you can see our table definition, table number, description, and two options that can be selected. First means use of the validity period (always recommended) and the other is a check for release status of the record. If checked, only released info records will be taken into account while searching for the condition.
  3. Here is the list of fields you have already seen in the Define access sequence topic.
You can see how is the table defined for later use in customizing the access sequence.
V/05 transaction is used for displaying a condition table.
V/04 transaction is used for changing a condition table.
V/03 transaction is used for creating a condition table.
Now you can define a new condition table if it is required, in order to use it in the access sequence definition. Most of the times new access tables aren't required since a vast number of predefined tables.
Step 1)
  1. Enter t-code M/03 and execute it.
  2. Choose your new table number (must be unused, e.g. 818).
  3. If you want to copy an existing table into your new table, you can select the source table here. This is useful if your table is similar to another existing table, and needs only a simple change to fulfill the requirements.
Step 2) On the next screen, you can do all of the settings for a condition table, and generate it.
  1. Click this button if you want to edit the description.
  2. Choose if your table should check validity periods and release statuses.
  3. List of current fields. You can select any field you want to remove (by single clicking it) and choose the remove icon (List icon with a red minus sign).
  4. You can add fields from field catalog by double clicking them.
  5. You need to generate the table in order for it to be used by pricing functions.
You can also use right click to delete or add a field to your table, as well as to navigate the Field catalog on the right side of the screen. Not all of the fields can be shown in a single page of field catalog.
After successful creation, you will be prompted to create a change request and afterwards, you will be presented a log screen like you can see on the following screen.
You have successfully generated a condition table let's see if we can see it in the access sequence maintenance screens.
It's there, so now we can create an access using this table. We will not cover this in detail as it is extremely straight forward process.
On the accesses node of our access sequence, choose New entries button. You can create access like in the below screen for testing purposes.
Fields should also be assigned to our access PB01 – 96 in order for it to work properly

Tuesday, 24 May 2016

Define Access Sequence

Define Access Sequence
To define and maintain access sequences, you need to follow a few simple steps.
Step 1) Go to SPRO > Materials management > Purchasing> Conditions> Define price determination process> Define access sequences.
As shown below , you will find a dialog structure of Access sequencesAccesses and Fields.
  1. Choose the Access sequence you want to maintain (PB01 gross price).
  2. Double click the Accesses folder in the dialog structure.
Step 2) In the next step you define access methods for the access sequence. You can see that several access methods are present for one sequence.
Every one of them is exclusive. It means that if a record is found in first access (Contract item), meaning that if the system finds a condition available from the Contract item, it will not search further, and that value will be used. If not, system will follow the other accesses in order to find appropriate entry.
You can also set a requirement for an access method to be used. For example, there is a requirement 35 assigned to access 10, which uses condition table 17 - Material Info Record (Plant-Specific).
A requirement for access number 10 is 35 - Plant info record. If there is no plant info record for the combination of the values in table 17, access 10 will not be used at all.
Step 3)
  1. Select the access you want to modify.
  2. Choose the lowest level folder in dialog structureFields.
Step 4)
  1. You can see we are located on the details screen for access sequence PB01, access 20 and table 18.
  2. The key fields of a condition table used in the condition access are showed here.
Condition table consists of condition fields which have certain attributes assigned to them. When the system tries to access a condition record it uses these attributes.
  • Special value source – this field contains a value to be used as default while accessing (e.g. using a fixed info record category for the access sequence)
  • Init – if this box is checked system will allow initial value for this field while accessing the condition table. If not system will not process the condition table lookup.
  • Atyp – processing type in access. You can specify if the field is relevant for condition access if it is part of a free or fixed key type. Default is left blank (fixed key type).
  • Priority – priority of a field (characteristic), it can be set from 01 to 99. Most of the time this field is left blank.

Monday, 23 May 2016

Overview of Pricing Procedure

Pricing procedure in MM module is a way to determine prices in purchasing documents. It give us functionality to assign different calculation types for different needs. Defining a pricing procedure can be done by creating an access sequence, and assigning it to condition types. Access sequence tells the system where to look for the condition values. It can search multiple condition tables based on our settings. Tables have different priority, and different key fields. Determination of the pricing procedure is practically assigning the calculation schema to a combination of vendor schema group and purchasing organization schema group. So, you need to enter the vendor schema group on vendor master, and assign schema group to purchasing organization, in order for the system to find the calculation schema to be used in the document.
In order to setup a pricing procedure in purchasing documents, you need access to the customizing features.
IMG path to the available functions:
Transaction SPRO => Materials Management => Purchasing => Conditions => Define Price determ.process
Following functions can be used to maintain the pricing procedure. There are more settings concerning the pricing procedure, but we will cover the most used ones.

Sunday, 22 May 2016

Release Procedures For Purchasing Documents

Releasing purchase order

For the actual release of the purchasing document, we can use t-code ME28.
Step 1)
  1. Execute the transaction code.
  2. Enter release code (mandatory) and release group (optional).
  3. Options – keep it as default like on the below screen.
  4. You can choose the appropriate scope of the list and purchasing document category (if we only want to see the purchase orders available for release we will choose "F").
  5. Execute.
Step 2) On the next screen, we can see the purchase orders selected by our criteria.
  1. Choose the purchase order you want to release by clicking on it.
  2. Click on the release button.
Status of the purchase order has changed to released.
Step 3) You can see in the ME23N or ME22N transaction that our purchase order has altered statuses."Release completed" and "Released" statuses are now shown in the PO header data.
Process flow is the same for all of the purchase documents (RFQ, PR, quotation etc).

Cancelling a release

Step 1) Purchasing document release has to be reversed in order for already released document to be changed.
  • You can do that from the same transaction ME28.
  • Choose the Cancel release check box and execute the transaction.
Step 2) You will see the list of purchase documents available for release cancelation.
  1. Choose the appropriate document.
  2. Click on the Cancel release button.
  3. Save and you are done.
Cancelling a release isn't possible if your release strategy doesn't allow the release to be reversed. This is a setting maintained on the release indicator and release strategy level.
You can test a release strategy used by the purchasing document by clicking the "Release Strategy" button on the above screen. You can also simulate the strategy output with Simulate release button.

Friday, 20 May 2016

Release Procedures For Purchasing Documents

Releasing a purchasing document means approving it. For this, our MM consultant can create release procedures to be used. There is a vast number of options that can be used for controlling the release of the documents.
Important information to know is that a purchasing document cannot be changed after it is released. That means that only the final version should be released. Unreleased documents (RFQ – request for quotation, PO – purchase order, scheduling agreement, contract) cannot be processed further (convert RFQ to quotation, PO to goods receipt, invoice verification). Process flow:

Release strategy

We can have a lot of different strategies for different situations. For example, you can define a release strategy that is dependent on document type, you can define a release strategy based on the purchasing organization, purchasing group, or any other crucial information for a purchasing document.
In most of the cases, one of the most used release strategy is based on the value of the purchase document.

Defining a Release Strategy

Step 1) Lets define a release strategy such that will only request a manual release for purchasing documents with value greater than 100 Eur. For example if we have a PO of the value of 50 Eur, it will be autoreleased (will not require a release to be processed further). A purchase order for more than 100 Eur would require a release.
For this, in the background, there needs to be specified a characteristic.
  1. We can do this in CT04 transaction.
    NETVALUE characteristic is defined.
  2. It's Value to be more than 100 Eur.
Step 2) Assigning fields to a characteristic on the additional data tab. We are assigning field CEKKO-GNETW to the characteristic, because that field is a purchase document value.
Step 3) There also needs to be specified a class that holds the characteristic.
  1. T-code to accomplish that is CL02.
  2. For this class, we need to set a class name, class type,
  3. Description and Status,
  4. Validity period,
  5. Same classification.
Step 4) Assigning a characteristic to a class. Afterwards, we can assign NETVALUE to a class called REL_PUR.
Step 5) Following steps need to be done in customizing.
  • Create release groups (you assign them a class – in our case REL_PUR).
  • Create release codes (assigning them release groups).
  • Create release indicators (e.g. 1-Blocked, 2-Released).
  • Creating a release strategy.
  • Assigning a release group and release code to a release strategy.
  • Defining release statuses for the strategy (blocked and released).
  • Maintaining classification (set a NETVALUE value for which the release strategy will apply – we can set this to >100, it means that all the purchasing documents with value bigger than 100 Eur will be subject to this release strategy).
  • You can also perform a release strategy simulation to see if it works correctly (optional).
Afterwards, your strategy is set and ready for live system tryout.
Step 6) We can see that our purchase order is created to a value of more than 100 Eur. If we create a PO for less than 100 Eur, it will be autoreleased.
  1. These two statuses mean that our PO is in release (it's subject to release process indicating that it should be approved before further processing can be possible). The other indicates the current status – Blockedmeans that it isn't released yet.
  2. Value is 24,000 Eur, which is more than 100 Eur.

Outline Agreement

Outline agreement is a long-term purchase agreement between vendor and customer. Outline agreement are two types:
  1. Contract
  2. Scheduling Agreement
Contract The contract is draft agreement, and they do not include delivery dates for the material.  Contract is two types :
  1. Quantity Contract: This  contract  considered to fulfilled when the company  supplied  an agreed total quantity of materials against the contract.
  2. Value Contract: This  contract  considered to fulfilled when the company supplied agreed total value of material against the contract.
Quantity Contract
Step-1
  1. Enter T-code ME31K in the command field.
  2. Enter Vendor / Agreement Type (MK- Quantity Contract) / Agreement Date.
  3. Enter Purchase Org.,  Purchasing Group in organizational data.
quantity contract
Step-2 Enter Validity End date of contract  in header data screen.
quantity contract2
Step-3
  • Enter Material ,Target quantity (A quantity for which quantity contract being created) and net price
  • Click On Save Button.
quantity contract3
A message as  will be displayed. 
2. Scheduling agreement  The scheduling agreement is a long-term purchase agreement with the vendor in which a vendor  is bound for supplying of material according to predetermined conditions. Details of the delivery date and quantity  communicated to the vendor  in the form of the delivery schedule.
Step-1
  1. Enter T-code ME31 in command field.
  2. Enter Vendor / Agreement Type (LP- Scheduling agreement) / Agreement Date.
  3. Enter Purch. Organization / Purchasing group.
sch_agr
Step-2 Enter Validity End Date in header screen.
sch_agr2
Step-3 Enter Material / Target Quantity / Net Price / Plant in Item Overview Screen.
sch_agr3
Step-4 Enter Exclusion in next screen .
sch_agr4
Step-5 Get back previous screen item overview and click on save button. A message as below -
sch_agr5