 XX Consulting MM04 - Goods Receipt & Invoice Verification November, 2000

 XX Consulting Topic One: Goods Receipt Topic Two: Invoice Verification Topic Three:Material Valuation Topic Four: Procurement Topic Five: Reporting and Analysis Schedule

 XX Consulting General Concept Goods receipt with reference to a purchase order allows: Data to be copied from the purchase order to the goods receipt document. Delivery notification. Invoice verification based on quantity received. Purchase order history update. Inventory quantity and value update. Automatic update to G/L accounts. If a goods receipt does not contain a purchase order number on the delivery slip, a search for the correct purchase order number can be performed using the material number or the vendor number.

 XX Consulting Goods Receipt Goods receipt For purchase order For delivery note For order Other Purchase order Delivery note Order

 XX Consulting Goods Receipt Destinations Stock: Material destined for the warehouse is given a storage location. Goods receipts for the warehouse can be posted to three different stock types: Unrestricted-use Quality inspection Blocked stock (valuated) Consumption: Material intended for consumption (e.g., charged to a cost center or a project) can be assigned a recipient or unloading point. Goods Receipt Blocked Stock: Conditionally accepted material is usually recorded into GR blocked stock. In the stock overview, there is a separate column for blocked stock. The material is not valuated until released from blocked stock but the inventory quantity is updated immediately.

 XX Consulting Stock-type Related Destinations Stock in quality inspection Blocked stock (valuated) Non-stock purchases Cost center Project Other Conditional Stock Vendor Consumption Goods receipt blocked stock Unrestricted-use stock

 XX Consulting Goods Receipt for Stock Material Goods receipt Goods receipt Purchasing document(s) Item: Entering the goods receipt increases the inventory level of a material that is procured for stock. Warehouse/stores Vendor

 XX Consulting Goods receipt Consumption 2 swivel chairs for cost center 1 Purchase order Goods Receipt To Point Of Usage (Not To Stock) Goods Receipt for Consumption Material

 XX Consulting Goods Receipt via GR Blocked Stock GR blocked stock A A A A Vendor Warehouse Movement 104 (Blocked Stock To PO) Movement 103 (PO to Blocked Stock) Movement 105 (Blocked Stock to Warehouse) Movement 106 (Warehouse to Blocked Stock)

 XX Consulting Movement Type Concept Movement types differentiate among the following stock transactions: Goods receipt Goods issue Stock transfer Movement type determines which: Quantity fields are updated. Stock types are updated. General ledger stock or consumption accounts are updated. Fields are displayed during document entry. A three-digit code identifies the particular movement to be performed (e.g., 101 = purchase order receipt).

 XX Consulting Three-digit movement type is required when entering a goods receipt. Movement Type Example

 XX Consulting Storage Location 1 6 pieces Storage Location 2 4 pieces GR document Item 1 6 pcs, Storage Location 1 Item 1 4 pcs, Storage Location 2 Several goods receipts can be entered for a single order item at one time. This occurs if the material is kept in batches or in multiple storage locations. The entries are recorded in one material document. Vendor Purchase Order Item 1 10 pcs Item 2 25 pcs Item 3 15 pcs Several Goods Receipt Items

 XX Consulting WM Notification of goods receipt (optional) Material/Financial details Goods Receipt Slip Stock and consumption accounts updated Transfer request to the Warehouse Management system (if active) Stock and value updated Financial Material document Hard copy (optional) Inspection notification to Quality Management system Post receipt to Quality Inspection (if active) QM Material Master PO history and PO updated Goods Receipt Material delivery Effects of a Goods Receipt

 XX Consulting Account Postings Goods receipt 10 pieces Purchase order 10 pieces at $60 piece Stock account GR/IR account Price differences Material Master Record Standard Cost= $50/piece Goods receipt  Inventory account is debited at standard price.  GR/IR clearing account is credited at purchase order price.  Price difference account debited with difference between standard and purchase order price

 XX Consulting The Document Concept A document is proof that a business transaction or posting occurred. In the SAP R/3 System, documents are generated and stored for every goods movement. There are two types of documents: Material documents record inventory impacts and changes. Accounting documentsrecord the financial impact of a goods movement. Once a goods movement has been posted, quantities, materials, movement types and organizational levels cannot be changed. Only data such as text can be changed. Mistakes are corrected with a new document. Documents can be canceled or reversed.

 XX Consulting Records movements that affect valuation of inventory. Records movements that affect inventory balances. Goods movement Warehouse Material document Accounting document IssuesReceipts Documents for Goods Movement

 XX Consulting Accounting Document The material and accounting documents for a goods movement are created simultaneously for each inventory transaction Line Items Header Material document Quantity Date 04/06 Material 10 liter 25 each paint mirror Plant Line Items Header Accounting document Account Date 04/06 Description inventory liability $ $ Material Document Material and Accounting Documents

 XX Consulting The material document is a record of an inventory transaction showing the date, quantity, material, plant, and other important data. Display Material Document: Overview Material Document

 XX Consulting By clicking theFollow-on documents button from the material document, a list of accounting documents is displayed for the goods movement. You can easily access any of the accounting documents by double-clicking on that document type. Display Material Document: Overview Accounting Document Drill-down

 XX Consulting The accounting document shows the G/L effect of each material transaction. In this example, a goods receipt was made for a standard price material. Inventory, accrued payables, and the price variance account were updated. Display Document Overview Accounting Document

 XX Consulting Summary Material document and accounting document are created after goods receipt.

 XX Consulting Exercise for Goods Receipt Now it’s time for you to do: MM04 - Exercise minutes

 XX Consulting Topic One: Goods Receipt Topic Two: Invoice Verification Vendor Invoice Processing Invoice Variance Topic Three:Material Valuation Topic Four: Procurement Topic Five: Reports Schedule

 XX Consulting Material master Vendor master Conditions Invoice Verification G/L accounts Assets Cost centers Projects Orders Invoice verification accesses data from purchasing, inventory management, material master and vendor master files. Posting an invoice in the R/3 System updates purchasing and accounting data. Purchase order Goods receipt Vendor Invoice Invoice Verification Environment

 XX Consulting Purchase order-based: All purchase order items may be settled regardless of partial deliveries. Goods receipt-based: Goods receipt must already have been entered for the quantity invoiced. Each receipt is entered and settled individually. Invoices for quantities greater than receipt quantities cannot be posted. This type of invoice verification must be specified in the purchase order. Vendor invoice-based: Invoice is directly posted to a material, general ledger, or a fixed asset account if a purchase order or a goods receipt does not exist in the R/3 System. Evaluated Receipt Settlement (pay on receipt): Invoice is automatically created upon goods receipt based on purchase order terms and receipt quantity. Types of Invoice Verification

 XX Consulting ? Invoice verification Invoice items can be posted with reference to a purchase order, a goods receipt, or a vendor’s invoice. Relevant account postings are made automatically. Posted items appear as open items to be paid on the vendor account. or Purchase order Purchase order Goods receipt Vendor invoice Types of Invoice Verification

 XX Consulting Referencing Purchase Order

 XX Consulting Goods receipt Access via purchase order GR1 50 Goods receipt GR 3 10 Vendor invoice Selection screen X X X Purchase order Purchase Order No Upon invoice entry, the goods receipt number must be entered on the initial screen. Only invoiced items backed by actual goods receipts can be entered. Multiple goods receipts from multiple purchase orders can be entered in the same invoice. Goods receipt-based invoice verification (GR-IV) indicator must be set in the purchase order. Purchase order 100 pieces GR-IV x GR 2 40 Goods-receipt Based Invoicing

 XX Consulting Goods receipt GR1 50 Generate vendor invoice Purchase Order No Purchase order 100 pieces ERS X ERS indicator is defaulted to the purchase order from the vendor record. Vendor invoice creation triggered from goods receipt posting using purchase order, goods receipt and vendor data. Vendor payment made through accounts payable according to the terms and conditions of the invoice. Evaluated Receipt Settlement

 XX Consulting Thompson & Sons 39 Second St. Tampa, Fl Motor Sports International 672 Lancaster Ave. Radnor, PA /03/96 Concerning your purchase order of 02/03/96, we delivered the following goods: VGE-raw 110,000 pcs.$ 2,500 VGE-sem kg$ 1,500 _________ $ 4,000 plus 14% TAX $ 560 _________ $4,560_ _ Payable within a period of 20 days from date of invoice. 2% cash discount for payment within 10 days. Account no Nord Lb (code ). Purchase order Invoice items Material Unit of measure Terms of payment Amount per item Tax amount Invoiced amount Tax rate Bank data Vendor Some invoice data is entered by the user, while other information is copied from the purchase order, purchase order history, and tax configuration. Quantities Document date Vendor Invoice Information

 XX Consulting Purchase order: 50 pieces at $2 / piece Goods receipt for purchase order: 50 pieces Invoice: 50 pieces at $2 / piece Stock account GR/IR account Vendor Goods receipt Invoice Vendor invoice $ The Goods Receipt/Invoice Receipt (GR/IR) clearing account is an accrued liability that reflects the obligation to the vendor until the receipt of the vendor’s invoice clears to the vendor’s account. Account Postings

 XX Consulting Invoice (relating to purchase order) Post A XX B Purch. order history Goods receipts Down payments Invoices Doc. No Vendor100 - GR/IR100 + When an invoice is posted, an accounting document is created. Appropriate transactions are posted to the general ledger. The material master record and purchase order history are updated when the invoice is posted. Material Master Record Moving average price Value Posting an Invoice

 XX Consulting Stock account GR/IR account Vendor Bank Accounts - Clearing - Company (Cash) Goods receipt Invoice Payment Bank Statement After a vendor is paid, an increase in stock account is matched by a decrease in the company cash account. Purchase order: 50 pieces at $2 / piece Goods receipt for purchase order: 50 pieces Invoice: 50 pieces at $2 / piece Vendor Payment

 XX Consulting Topic One: Goods Receipt Topic Two: Invoice Verification Vendor Invoice Processing Invoice Variance Topic Three:Material Valuation Topic Four: Procurement Topic Five: Reporting and Analysis Schedule

 XX Consulting Invoice Price Tolerances 10% Goods receipt Variance ! Document number: created Blocked for payment Post Each vendor’s invoice is checked against various tolerance limits set in the R/3 System. Invoices that exceed the tolerance limit are blocked for payment and are released in a separate step. $5 each Purchase order Invoice $6 each Checking Invoice Variance

 XX Consulting There are several types of variances that can be checked by the SAP R/3 System during invoice verification: Quantity: Delivered quantity differs from the invoiced quantity. Price:Purchase order price differs from the invoice price. Order price quantity: Goods receipt (or purchase order) order price quantity differs from invoice order price quantity. Date:Invoice receipt date is before planned delivery date. Any one purchase order line item may have one or more variances that would cause the invoice to be blocked for payment by the R/3 System. Types of Invoice Variance

 XX Consulting Types of Invoice Variance Goods receipt Quantity Invoice 50 pcs 40 pcs Quality Price Purchase order Invoice $6/pc Date 04/02 Invoice Purchase order Planned delivery date Order price quantity Invoice Purchase order 10 pcs x 20 g/pc = 200 g cost $2.00/g 200 g x $2.00/g = $400 Goods Receipt 10 pcs x 20 g/pc = 200 g 200 g x $2.00/g = $ g x $2.00/g = $500 (10 pcs x 25 g/pc = 250 g) 04/05 $5/pc

 XX Consulting Goods receipt Purchase order Goods receipt Invoice pieces 100 pcs at $1.30/pc Invoice 100 pcs at $1.24/pc = $124 If the invoice contains a price variance, the account postings are dependent on the material’s price control. Stock account GR/IR account Vendor account Price differences A price variance for a material with a standard price is posted to a price variance account. Example shows standard price control. Price Variance (Standard Cost Stock)

 XX Consulting Price Variance (Moving Average Stock) Goods receipt Invoice pieces Purchase order 100 pcs at $1.30/pc Invoice 100 pcs at $1.24/pc = $124 If the invoice contains a price variance, the account postings are dependent on the material’s price control. Stock account GR/IR account Vendor account A price variance for a material with a moving average price is posted to a stock account. Example shows moving average price control.

 XX Consulting Price Variance for Consumables Goods receipt Purchase order Goods receipt Invoice Consumption account GR/IR account Vendor account pieces 100 pcs at $1.30/pc If the invoice contains a price variance, the variance will be posted to the consumption account Consumption account is dependent upon the account assignment category (e.g., cost center, asset, project). Invoice 100 pcs at $1.24/pc = $124

 XX Consulting Invoice Quantity Variance Goods receipt Good receipt Invoice Subsequent goods receipt Stock account GR/IR account Vendor pieces 100 pieces at $10/pc Goods receipt Purchase order If goods receipt-based invoicing is specified during ordering, the invoice quantity is limited to no more than the goods receipt quantity. Variance ! Invoice 80 pcs at $10/pc = $800

 XX Consulting  Tolerances can be set to check for quantity, price, order price quantity, and date variances.  The R/3 System can be configured not to check invoice tolerances or to permit variances within upper and lower limits.  Tolerances can be in absolute or percentage amounts. If both are specified, the R/3 System will apply the more restrictive choice. Setting Invoice Tolerance Limits

 XX Consulting Financial accounting Invoice verification Invoice Accounting document created GR/IR 100 Vendor 100 Invoice blocked for payment Vendor 100 Payment program Blocked ! Bank 100 ? = An invoice is NOT blocked for payment if all of its items are within configured tolerances for variances. Accounts Payable cannot pay an invoice containing a “payment block” caused by excessive variances in one or more items. An authorized person must first release each blocked item before a payment block is removed for the invoice. Variance ! Post Blocking Invoices

 XX Consulting One or several excessive variances in any one invoice line item will cause a payment block of the entire invoice. The SAP R/3 System will automatically calculate blocking reasons for: Quantity Price Order Price Quantity Date An invoice may be blocked manually at the time of posting. Invoice Blocking Reasons

 XX Consulting Select Option Release Mode Blocked Invoice List AutomaticManual No Yes Will cash discount date be missed? Reset baseline date and claim discount anyway. Which ?: - companies - vendors - reasons Release occurs when reasons no longer apply. Release one by one or collectively. Releasing Blocked Invoices

 XX Consulting Automatic Release The Automatic release function will release all invoices blocked for quantity, price or date reasons that are no longer valid. For example: An invoice, blocked because the invoice quantity exceeded the receipt quantity, can be automatically released after a subsequent delivery because the quantity variance will no longer exist. An invoice, which arrived early and was blocked for date variance, can be automatically released for payment upon reaching the planned delivery date. An invoice, blocked because the invoice price was greater than the purchase order price, can be automatically released for payment if the purchase order price was changed to equal the invoice price. The user must initiate the release of the range of invoices in the R/3 System even though the blocking reasons are no longer valid.

 XX Consulting Automatic Release Invoice 80 pcs Quantity Invoice > Receipt Invoice blocked for payment 1st goods receipt: 60 pieces Here the invoice will be blocked due to quantity variance. Purchase Order 100 pcs

 XX Consulting Automatic Release Invoice 80 pcs Quantity Invoice > Receipt Invoice blocked for payment Blocking reason no longer valid 2nd goods receipt: 40 pieces 1st goods receipt: 60 pieces Here the invoice will be blocked due to quantity variance. Additional delivery makes quantity variance blocking reason invalid. Purchase Order 100 pcs

 XX Consulting Automatic Release Invoice 80 pcs Quantity Invoice > Receipt Invoice blocked for payment X Automatic release Payment program settles the invoice Blocking reason no longer valid 2nd goods receipt: 40 pieces 1st goods receipt: 60 pieces Here the invoice will be blocked due to quantity variance. If automatic release is active, certain blocked invoices may be automatically released. Accounts payable will pay the invoices according to payment terms. Additional delivery makes quantity variance blocking reason invalid. Purchase Order 100 pcs

 XX Consulting Manual Release Manual release allows blocking reason(s) for an invoice item to be selected individually and deleted. When the last blocking reason is deleted for all line items in an invoice, the entire invoice is then released for payment. Manual release of invoices can be done through: Individual release:Cursor is placed on an individual invoice line item blocking reason and that reason is deleted. Collective release: Cursor is placed on range of invoice items which are to be released for payment. When invoices are released, the document number remains on the screen until the transaction is completed. Items can only be reblocked by A/P.

 XX Consulting Manual Release Invoice DocumentItemQPDOrMOQty diff x xx xx xx10 Release Individual release Position cursor on item blocking reason Collective release Activate range of items Invoice blocking reason codes

 XX Consulting Summary When you enter an invoice referencing a purchase order, the system suggests almost all of the required information. You only have to enter a small amount of information manually. The R/3 system checks every invoice item for variances on the basis of content and price.

 XX Consulting Exercise for Invoice Verification Now it’s time for you to do: MM04 - Exercise minutes

 XX Consulting Topic One: Goods Receipt Topic Two: Invoice Verification Vendor Invoice Processing Invoice Variance Topic Three:Material Valuation Topic Four: Procurement Topic Five: Reporting and Analysis Schedule

 XX Consulting General Concepts Material valuation determines and records the value of stock material. Unit price, stock quantity, and total value are maintained in the material master. Valuation: Links Materials Management with Financial Accounting by updating the General Ledger. Occurs automatically whenever a goods movement transaction (quantity change) or invoice is posted. Can be performed manually by:  Changing standard or moving average prices.  Posting subsequent debits and credits in invoice verification.

 XX Consulting Processes Affecting Valuation MM External procurement: Purchasing Accounting Invoice Verification - Price change - Balance sheet valuation - Account maintenance Inventory Management

 XX Consulting Standard vs. Moving Average Price Materials are valuated using two types of price control: Standard price Moving average price Standard price requires that all postings be carried out at one price for a set period of time. All variances are posted to price difference accounts. Moving average price requires that materials be valuated at goods receipt value. Moving average prices are automatically adjusted in the material master when variances occur. Price control should be set in the material master (accounting view) when a material is created.

 XX Consulting Material Valuation Material valuation Setting price control in material master "S" Standard price "V" Moving average price If a material is assigned a standard price, the value of the material is always calculated at this price. If a material is assigned a moving average price, receipts are posted using the purchase order price and issues are posted using the current moving average price.

 XX Consulting Valuation Class Material type determines the valuation class that can be assigned to a material. Valuation class groups different materials with similar properties so separate stock accounts do not have to be maintained for every material. The R/3 System uses valuation class for automatic account determination. This class is used to determine which stock account should be posted to when an inventory transaction occurs.

 XX Consulting Valuation Class Material type determines the valuation class that can be assigned to a material. Valuation class groups different materials with similar properties so separate stock accounts do not have to be maintained for every material. The R/3 System uses valuation class for automatic account determination. This class is used to determine which stock account should be posted to when an inventory transaction occurs.

 XX Consulting Valuation Class Valuation class 2 Material type Material 002 Material 001 Material 003 General Ledger Accounts Valuation class and other factors, such as movement type, determine the automatic G/L account assignment used to post inventory transactions. Valuation class 1

 XX Consulting Posting at Standard Price  Starting inventory balances and value are indicated in the initial situation.  Moving average price is maintained for materials valuated using standard price for statistical purposes only. Price difference accountVendor payables account Stock account (1) GR/IR clearing account EventStockTotal stockStandardMoving quantity valuepriceaverage price ( ( 1 )Initial situation

 XX Consulting Posting at Standard Price EventStockTotal stockStandardMoving quantity valuepriceaverage price  Stock value and stock account are updated at standard price.  Goods Receipt/Invoice Receipt clearing account is updated at purchase order price.  Difference between purchase order price and standard price is posted to the price difference account. Price difference account ( 2 ) Vendor payables account Stock account (1) (2) GR/IR clearing account ( 2 ) ( 1 )Initial situation ( 2 )GR for PO:

 XX Consulting Posting at Standard Price EventStockTotal stockStandardMoving quantity valuepriceaverage price Price difference account ( 2 ) ( 3 ) Vendor payables account ( 3) Stock account (1) (2) GR/IR clearing account ( 3 ) (2) ( 1 )Initial situation ( 2 )GR for PO: ( 3 )IR for PO order:  GR/IR clearing account is cleared at purchase order price.  Vendor payables account is updated at invoice price.  Difference between purchase order price and invoice price is posted to price difference account. No change to total stock value.

 XX Consulting Posting at Moving Average Price  Starting inventory balances and value are indicated in the initial situation.  Standard price is not maintained for materials valuated at moving average price. EventStockTotal stockMoving quantity valueaverage price ( 1 )Initial situation Stock account ( 1 ) Vendor payables account GR/IR clearing account

 XX Consulting Posting at Moving Average Price EventStockTotal stockMoving quantity valueaverage price  Stock value, stock account, and GR/IR clearing account are updated at purchase order price.  Moving average price is recalculated using new stock value. ( 1 )Initial situation ( 2 )GR for PO: Stock account ( 1 ) ( 2 ) Vendor payables account GR/IR clearing account (2)

 XX Consulting Posting at Moving Average Price EventStockTotal stockMoving quantity valueaverage price ( 1 )Initial situation ( 2 )GR for PO: ( 3 )IR for PO order: Stock account ( 1 ) (3) ( 2 ) Vendor payables account ( 3) GR/IR clearing account ( 3 ) (2)  GR/IR clearing account cleared at purchase order price. Vendor payables account is updated at invoice price. Difference between purchase order and invoice price is posted to stock account. Stock value is recalculated using invoice price.  Moving average price is recalculated using new stock value.  If stock quantity on-hand is below invoice quantity, part of the difference will be posted to the expense/revenue: price difference account instead of the stock account.

 XX Consulting Valuation Area Valuation area specifies the level at which a material is valuated. Valuation levels: Company code Plant If stock is valuated at the company code level, all stocks of a material in the company are valuated together at the same price. If stock is valuated at the plant level, all stocks of a material in an individual plant are valuated together at one price. Stocks in other plants are not included in the valuation area and can be valuated at a different price.

 XX Consulting Valuation Area Company code 3000 Price control and price are uniform for all plants within the company code. Plant Price control and price are plant-specific. Valuation areas

 XX Consulting Exercise for Material Valuation Now it’s time for you to do exercise: No exercise!

 XX Consulting Topic One: Goods Receipt Topic Two: Invoice Verification Vendor Invoice Processing Invoice Variance Topic Three: Material Valuation Topic Four: Procurement Topic Five: Reporting and Analysis Schedule

 XX Consulting Material Requirements Planning (MRP) is often the source of demand for purchased materials in an organization. Depending on material master settings and parameters selected when running MRP, demand from MRP can generate: Planned orders:Can be converted to purchase requisitions or purchase orders. Purchase requisitions:Can be converted to purchase orders. Stock transport orders: Orders between plants. Schedule releases:Orders against scheduling agreements, are also called delivery plans. Note: MRP is covered in detail in the Manufacturing Planning course. General Concepts

 XX Consulting MRP Procedures Materials planning Automatic reorder point Manual reorder point MRP Consumption based Reorder point procedure Stochastic MRP

 XX Consulting Outputs of MRP in Procurement Material Requirements Planning Purchase Requisition Material Quantity Due Date Planned Order Material Quantity Due Date Schedule Release Material Quantity Due Date

 XX Consulting Material Master MRP Views Material Requirements Planning (MRP) data is maintained in three separate views of the material master record:  MRP 1 view contains cross-departmental and MRP procedure data.  MRP 2 view contains basic data, forecast processing data, and requirements explosion data.  MRP 3 view contains repetitive manufacturing, consumption, discontinued materials, and storage location data.

 XX Consulting MRP View Selection Enter the appropriate plant in the Organizational Levels/Profiles dialog box because material is planned at plant level.

 XX Consulting Material Master - MRP 1 View Reorder point planned materials If the on-hand stock falls below the reorder point quantity, MRP will create a replenishment based on lot size rules and values defined in the material master record.

 XX Consulting MRP Type  The MRP type determines whether the material will be planned, and if so, how it will be planned.  Planning options include MPS, MRP, reorder point, or forecast.

 XX Consulting Exercise for Procurement Now it’s time for you to do exercise: No exercise!

 XX Consulting Topic One: Goods Receipt Topic Two: Invoice Verification Vendor Invoice Processing Invoice Variance Topic Three: Material Valuation Topic Four: Procurement Topic Five: Reporting and Analysis Schedule

 XX Consulting Logistics Information Library Inventory Controlling Shop Floor Information System Sales Information System Purchasing Information System... Logistics processing systems Logistics information systems PPPMSDMMQM R/3 Logistics Information System (LIS)

 XX Consulting Standard purchasing reports and analyses provide an overview of purchasing transaction data. Transaction-level detail and summary-level analyses can be completed quickly and efficiently using the tools available in the R/3 System. Examples of standard reports and analyses include: Order values by vendor Number of purchase orders by material Average value of purchase orders by purchasing group General Concepts

 XX Consulting Types of Report and Analysis List displays by: Vendor Material Account assignment Material group Purchase order number Tracking number General Analyses Order Value Analyses Inventory Transaction Analyses List Display

 XX Consulting General Concepts A list is the output of a report program. Lists can be used to manage daily functions and report on routine activities. Purchasing examples include lists of: Purchasing requisitions that must be converted into purchase orders. Purchase orders without receipts. Lists can be tailored to the specific requirements of the user. Selection criteria and data ranges are entered to specify the amount of information displayed in the list. Presentation of data may be modified using sorts and total displays.

 XX Consulting List Display Selection Purchasing Documents for Vendor Ranges, selection options, and inclusions tailor the list display to the exact specifications of the user. Scope of list and selection parameters specify types of information to display.

 XX Consulting Scope of List Scope of list determines what data is displayed in a report or analysis. The following types of information can be displayed: Open purchase order quantity Open purchase order value Validity period of outline agreements Purchase order history Release order documentation

 XX Consulting Selection Parameters Selection parameters allow the user to determine which purchasing documents the system analyzes. Reports can be generated for: Open orders Open goods receipts Open invoices, etc. Selection parameters are maintained by the systems administrator.

 XX Consulting List Display Example Purchasing Documents for Vendor Purchasing and Inventory management information In this example, a list display was generated for purchase orders from vendors through within purchasing organization 3000.

 XX Consulting General Concepts of Variant Variants are groups of user-defined selection criteria that have been saved for later use when calling up frequently generated reports and analyses. Variants reduce data-entry time and allow users to easily access only the information that is relevant to their area, department, plant, etc. A report may have any number of variants attached.

 XX Consulting Establishing Variants  SAP AG R Purchasing Documents for Vendor  From the selection screen of any report, selection parameters can be entered and saved as a variant.  In this example, the variant will display all purchasing documents for purchasing group 001 in purchasing organization 3000 for materials in plant 3000.

 XX Consulting Saving Variants The variant name and description must be entered when the variant is saved. Purchasing Documents for Vendor

 XX Consulting General Concepts General analyses allow you to review purchase orders, contracts, scheduling agreements, or requests for quotations by: Vendor Material Material group Purchasing group Selection criteria and settings allow you to modify the content and layout of the analysis.

 XX Consulting General Analyses In this example, a list of purchase orders within the date range will be generated for purchasing organization 3000, vendor Selection options must be specified when creating a general analysis. Purchasing Documents

 XX Consulting General Analyses - Example Purchasing Documents By Vendor Display options allow you to present data according to your needs. Selection information Double-clicking on a line item allows the user to drill down into the purchasing line item history for the purchasing document.

 XX Consulting General Concepts Order value analyses allow you to analyze purchasing patterns using one or several of the following options: Totals analysis ABC analysis Analyses with comparison periods Frequency analysis Purchasing data may be totaled by: Purchasing organization Purchasing group Vendor Plant Material group Material

 XX Consulting Order Value Analysis - Options Analysis of Order Values ABC analysis options Totals analysis options

 XX Consulting Order Value Analysis - Options Analysis of Order Values Frequency analysis options Comparison periods must be specified during comparison analysis.

 XX Consulting Order Value Analysis - Example Analysis of Order Values Selection parameters Currency information must be specified on the initial selection screen for order value analysis. In this example, an order value analysis will be generated in US dollars for vendors through within purchasing organization 3000.

 XX Consulting Order Value Analysis - Example Analysis of Order Values Sort sequence determines how information is sorted on the analysis. Output values determine which values appear and in what order. In this example, a totals analysis, including the net order value, average value per PO, and number of purchase orders, will be created using the selection criteria specified on the previous screen.

 XX Consulting Order Value Analysis - Example PO Value Analysis in USD: Totals Totals for vendors in purchasing organization Columns are arranged according to output sequence indicated on the previous screen. The list is sorted according to values established within selection criteria (vendors to within purchasing organization 3000).

 XX Consulting General Concepts Inventory Transaction Analyses display information about: Material movements Material stocks Inventory Transaction Analyses can be used to: Review the transaction history for a material Determine the current stock balance for a material Inventory list displays may be created for all types of material transactions.

 XX Consulting Inventory Transaction Analysis Display Material Documents for Material In this example, a report will be created listing all material movements for materials through in plant 3000, storage location 001.

 XX Consulting Inventory Transaction Analysis Inventory Documents By Material Inventory transaction selection criteria Account assignment information Inventory transaction dates Inventory transactions by movement type

 XX Consulting Exercise for Reporting and Analysis Now it’s time for you to do exercise: MM04 - Exercise Minutes

 XX Consulting Your input in course evaluation form is appreciated. Please take the quiz. Course Evaluation and Quiz

 XX Consulting Congratulations !