Blake's SAP MM Details 21-25 Document

21 Thru 25

(21) Service Management

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• Besides procurement of goods, an organization may occasionally require some kind of services.
• Such services include small maintenance tasks such as changing the lights, painting, and housekeeping.
• These services are carried out by external contractors and hence the whole process of procurement of services is known as service management.
• The key points to note about service management are as follows −

• Services are meant for direct consumption instead of keeping them in inventory.

• Service description along with its unit of measure is stored as master data in a record that is known as the service master record.

• The system stores the services that have been procured as a record in a sheet that is called as the service entry sheet.

• Service procurement can be of the following two types−

• Planned Services − In planned services at the time of procurement specifications like quantity and price are known in advance. It means nature and scope of service is clear before procurement.

• Unplanned Services − In unplanned services at the time of procurement specifications like quantity and price are not known in advance. It means nature and scope of service is not clear before procurement. These services can be extended as per the requirement.

Service management deals with the following terms−

• Service Master Record

• Service Purchase Order

• Service Entry Sheet

Service Master Record

• Service master record contains the details of all the services that can be procured from an external vendor within an organization.
• It contains the description of services along with their unit of measure.
• Service master record serves as a reference for creating service purchase order, but it is not necessary.
• Service purchase order can also be created manually without reference.
• Follow the steps given below to create a service master record.

Path to Create Service Master Record

Logistics ⇒ Materials Management ⇒ Service Master ⇒ Service ⇒ Service Master

TCode: AC03

Step 1 − On the SAP Menu screen, select Service Master by following the above path.

Step 2 − Click the Create New Service icon as shown below.

Step 3 − Fill in all the necessary details such as service category, base unit of measure, and valuation class.
                Click on Save.
                A new Service will be created.

Service Purchase Order

In SAP MM services are accomplished with the help of service purchase order. The requirement of service with its description along with quantity is given to third party in form of service purchase order. In service purchase order important field is item category. For service, item category will be D. So, service purchase order can be created by following the below steps.

Path to Create Purchase Order

Logistics ⇒ Materials Management ⇒ Purchasing ⇒ Purchase Order ⇒ Create ⇒ Vendor/ Supplying Plant Known

TCode: ME21N

Service Item Category: D

Step 1 − On the SAP Menu screen, select Vendor/ Supplying Plant Known by following the above path.

Step 2 − Provide all the necessary details such as the name of the vendor, item category, name of material, plant for which material is procured, and the date of delivery.
               Click on Save.
               Service Purchase order will be created.

Service Entry Sheet

A service entry sheet stores a record of all the services that have been procured. In case of goods procured, we maintain a goods receipt document; whereas in case of services, we maintain a service entry sheet. It accommodates the charges that we need to pay to the vendor. Follow the steps given below to create a service entry sheet.

Path to Create Service Entry Sheet

Logistics ⇒ Materials Management ⇒ Service Entry Sheet ⇒ Maintain

TCode: ML81N

Step 1 − On the SAP Menu screen, select the Maintain execute icon by following the above path.

Step 2 − Provide all the necessary details such as purchase order number, service number, quantity, and price.
               Click on Save.
               A new Service Entry Sheet will be created for the corresponding purchase order.

(22) Valuation

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• Procurement process starts with creating a purchase order and ends with invoice verification.
• In the whole process, one of the important parts is material valuation.
• While creating purchase orders, material price is a mandatory field and it is automatically determined.
• It happens because material valuation is maintained in the SAP system in the material master.
• Material valuation represents integration between MM & FI (Financial Accounting) modules, since it updates the general ledger accounts in financial accounting.
• The key points to note about material valuation are as follows −

• Material valuation helps in determining the price of the material, and in which general ledger account it needs to be posted.

• Material valuation can happen at company code level or plant level.

• Material can be valuated based on different types of procurement; it is known as split valuation.

Split Valuation

Split valuation helps in valuating the stocks of a material in the same valuation area (company or plant) differently. Some of the examples where split valuation is required are as follows−

• Stock that is procured externally from a vendor has a different valuation price than the stock of an in-house production.

• Stock obtained from one vendor is valuated at a different price than the stock obtained from another vendor.

• Same material having different batch may have different valuation prices.

Split Valuation needs to be activated before setting any other configuration. Follow the steps given below to activate split valuation.

Path to Activate Split Valuation

IMG ⇒ Materials Management ⇒ Valuation and Account Assignment ⇒ Split Valuation ⇒ Activate Split Valuation

TCode: OMW0

Step 1 − On the Display IMG screen, select Activate Split Valuation by following the above path.

Step 2 − Click the option Split Material Valuation Active.
               Click on Save.
               Split valuation is now activated.

Some important terms under split valuation are as follows.

• Valuation Area − Material may be valuated at plant level or at company code level. The level at which materials are valuated is known as valuation area.

• Valuation Category − Valuation category is the criteria on which material is split valuated.

• Valuation Type − Valuation type specifies the features of a valuation category.

Split Valuation Configuration

Follow the steps given below to do split valuation configuration such as defining valuation category and valuation type.

Path to Configure Split Valuation

IMG ⇒ Materials Management ⇒ Valuation and Account Assignment ⇒ Split Valuation ⇒ Configure Split Valuation

TCode: OMWC

Step 1 − On the Display IMG screen, select Configure Split Valuation by following the above path.

Step 2 − Click Global Types to create valuation type.

Step 3 − Click the Create button.

Step 4 − Provide the name of the valuation type.
               Click on Save.
               A new Valuation Type will be created.

Step 5 − Now go to the same screen and click Global Categories to create valuation category.

Step 6 − Click the Create button.

Step 7 − Provide the name of the valuation category.
               Click on Save.
               A new Valuation Category will be created.

Step 8 − Now go to the same screen and click Local Definitions to map valuation type and valuation category.

Step 9 − Click the "Cats. → OU button"..

Step 10 − Provide valuation type, valuation category, and set the status as active, and then click the Activate button.
                  Valuation category and valuation type are now mapped and both are activated.

After maintaining the valuation type and valuation category, you can mention them in the material master as shown below.

Go to mm02 (Change screen for material master). Here you can maintain the valuation category and valuation class in accounting view.
On this basis, valuation of the material will be done in a purchase order.

(23) Account Determination

• Top | Tutorials Point
• In SAP MM, procurement process involves the cost of goods and services that needs to be paid to the vendor by an organization.
• The cost being paid must be posted in an organization necessarily in a correct general ledger (G/L) account.
• It is quite impossible to recollect and feed the correct G/L account every time during procurement.
• To avoid this inconvenience, the SAP system can be configured so that the system will automatically determine the correct G/L account that needs to be posted.
• G/L account is posted when goods receipt is done as well as during clearing the invoice verification.

Account determination deals with the following terms−
• Define Valuation Control
• Group together Valuation Areas
• Define Valuation Classes
• Configure Automatic Posting

Define Valuation Control

• Valuation areas can be grouped together and can be assigned to one grouping code, if they belong to the same G/L account.
• For example, different plants under one company code can be assigned the same valuation grouping code and vice versa.
• Before this, valuation grouping code must be activated and this can be done by following the steps given below.

Path to Activate Valuation Grouping Code

IMG ⇒ Materials Management ⇒ Valuation and Account Assignment ⇒ Account Determination ⇒ Account Determination without Wizard ⇒ Define Valuation Control

TCode: OMWM

Step 1 − On the Display IMG screen, select Define Valuation Control by following the above path.

Step 2 − Select Valuation grouping code.
               Click on Save.
               Valuation grouping code is now activated.

Group Together Valuation Areas

In valuation grouping, valuation area and valuation grouping code are assigned to the company code. This can be done by following the below steps.

Path to Define Valuation Area and Valuation Grouping Code

IMG ⇒ Materials Management ⇒ Valuation and Account Assignment ⇒ Account Determination ⇒ Account Determination without Wizard ⇒ Group Together Valuation Areas

TCode: OMWD

Step 1 − On the Display IMG screen, select Group Together Valuation Areas by following the above path.

Step 2 − Here you can define a valuation area with grouping code, and assign them to a company code.
               Click on Save.
               Valuation area and valuation grouping code are now defined for a company code.

Define Valuation Classes

Valuation class categorizes the G/L account on the basis of material type. For example, raw material will have different G/L account than the finished material, as the costs will be different in both the cases. Account reference is also maintained along with the valuation class. Account reference and valuation class can be defined by following the steps given below.

Path to Define Account Reference and Valuation Class

IMG ⇒ Materials Management ⇒ Valuation and Account Assignment ⇒ Account Determination ⇒ Account Determination without Wizard ⇒ Define Valuation Classes

TCode: OMSK

Step 1 − On the Display IMG screen, select Define Valuation Classes by following the above path.

Step 2 − Click the Account Category Reference button.

Step 3 − Click New Entries.

Step 4 − Provide the name of ARef (Account reference) along with its description.

Step 5 − Now go to same screen and click Valuation Class.

Step 6 − Click New Entries.

Step 7 − Provide the name of valuation class, ARef (Account reference), and description of valuation class.

Step 8 − Now go to the same screen and click Material Type/Account Category Reference.

Step 9 − Here you can map material type with ARef (Account reference).
               Click on Save.
               G/L account can now be posted for different material types.

Configure Automatic Posting

G/L account is automatically determined for each of the transactions. It happens so because automatic postings are configured in the SAP system. Automatic posting can be configured by following the steps given below.

Path to Configure Automatic Posting

IMG ⇒ Materials Management ⇒ Valuation and Account Assignment ⇒ Account Determination ⇒ Account Determination without Wizard ⇒ Configure Automatic Postings

TCode: OMWB

Step 1 − On the Display IMG screen, select Configure Automatic Postings by following the above path.

Step 2 − Click Account Assignment.

Step 3 − Here you can maintain the transaction for which automatic account determination is there.
               Click on Save.
               Automatic posting for transactions is now configured.

(24) Configuration

• Top | Tutorials Point

SAP MM is flexible enough to allow its configurations to be modified in the background to suit the business requirements of an organization. Configurations help in making custom enhancements in the structure. This chapter describes some of the important configurations in SAP MM.

Assign Fields to Field Selection Groups

This configuration allows one to make some fields optional, hidden, or mandatory in the master record. Follow the steps given below to set this configuration.

Path to Assign Fields to Field Selection Groups

IMG ⇒ Logistic General ⇒ Material Master ⇒ Field Selection ⇒ Assign Fields to Field Selection Groups

TCode: OMSR

Step 1 − On the Display IMG screen, select Assign Fields to Field Selection Groups by following the above path.

Step 2 − Select the entry in which you want to make the changes.

Step 3 − Here you can change the properties of the fields as hidden, display, required entry, or optional entry.
               Click on Save.
               Field Groups are now set with the desired field entries.

Maintain Field Selection for Data Screens

This configuration allows one to make some data screens in the master data as optional, hidden, or mandatory. Follow the steps given below to set this configuration.

Path to Maintain Field Selection for Data Screens

IMG ⇒ Logistic General ⇒ Material Master ⇒ Field Selection ⇒ Maintain Field Selection for Data Screens

TCode: OMS9

Step 1 − On the Display IMG screen, select Maintain Field Selection for Data Screens by following the above path.

Step 2 − Select the field selection group in which you want to make changes.
               Here you can make changes in the field reference as hidden, display, required entry, or optional entry.
               Click on Save.
               Field selection for data screens is now maintained.

Maintain Company Codes for Materials Management

This configuration allows one to maintain company codes with a period along with the fiscal year. Follow the steps given below to set this configuration.

Path to Maintain Company Codes for Materials Management

IMG ⇒ Logistic General ⇒ Material Master ⇒ Basic Settings ⇒ Maintain Company Codes for Materials Management

TCode: OMSY

Step 1 − On the Display IMG screen, select Maintain Company Codes for Materials Management by following the above path.

Step 2 − Provide details such as name, company code, along with the fiscal year and the period for that.
               Click on Save.
               Company code is now maintained for materials management.

Define Attributes of System Messages

Sometimes the system does not allow us to save a document when its information is incomplete. In such cases, the system issues some messages to indicate the probable cause of error. These system messages can be set up by following the steps given below.

Path to Define Attributes of System Messages

IMG ⇒ Logistic General ⇒ Material Master ⇒ Basic Settings ⇒ Define Attributes of System Messages

TCode: OMT4

Step 1 − On the Display IMG screen, select Define Attributes of System Messages by following the above path.

Step 2 − Here you can maintain type of message (warning or error), message number along with the description of message.
               Click on Save.
               System messages are now maintained.

Define Number Ranges – Purchase Requisition

When we create a purchase requisition, every requisition is recognized by a unique number that is known as the purchase requisition number. We can define a number range manually, otherwise the system can automatically assign the same. Follow the steps given below to define a number range for purchase requisition.

Path to Define Number Ranges

IMG ⇒ Materials Management ⇒ Purchasing ⇒ Purchase Requisition ⇒ Define Number Ranges

TCode: OMH7

Step 1 − On the Display IMG screen, select Define Number Ranges by following the above path.

Step 2 − Select edit mode of Intervals tab.

Step 3 − Here you can maintain a number range accordingly.
               Then click on Save.
               Number range for purchase requisition is now maintained.

Define Document Types - Purchase Requisition

Different types of documents are created for purchase requisition. Follow the steps given below to maintain document types for purchase requisition.

Path to Define Document Types

IMG ⇒ Materials Management ⇒ Purchasing ⇒ Purchase Requisition ⇒ Define Document Types

Step 1 − On the Display IMG screen, select Define Document Types by following the above path.

Step 2 − Click New Entries.

Step 3 − Provide details such as the name of the document type with its description.
               Click on Save.
               Document types for purchase requisition are now defined.

Define Number Ranges – RFQ/Quotation

When we create RFQ/Quotation, every quotation is recognized by a unique number known as quotation number. We can define a number range manually, otherwise the system can automatically assign the same. Follow the steps given below to define a number range for RFQ/Quotation.

Path to Define Number Ranges

IMG ⇒ Materials Management ⇒ Purchasing ⇒ RFQ/Quotation ⇒ Define Number Ranges

TCode: OMH6

Step 1 − On the Display IMG screen, select Define Number Ranges by following the above path.

Step 2 − Select edit mode of Intervals tab.

Step 3 − Here you can maintain a number range accordingly.
               Then click on Save.
               Number range for RFQ/Quotation is now maintained.

Define Document Types - RFQ/Quotation

Different types of documents are created for RFQ/Quotation. Follow the steps given below to maintain document types for RFQ/Quotation.

Path to Define Document Types

IMG ⇒ Materials Management ⇒ Purchasing ⇒ RFQ/Quotation ⇒ Define Document Types

Step 1 − On the Display IMG screen, select Define Document Types by following the above path.

Step 2 − Click New Entries.

Step 3 − Provide details such as document type with its description.
               Click on Save.
               Document types for RFQ/Quotation are now defined.

(25) Transaction Codes

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• SAP MM provides some shortcuts to save time and effort. These are known as transaction codes.
• Transaction codes are the shortcut codes that take us directly to the screen desired.
• These codes are provided in the command field.
• Some of the important transaction codes are as follows.

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Reserve

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• reserve