Direct / Indirect POs

what is direct PO and Indirect PO.
Is it same concept as Direct Material and Indirect Material.

Additional Info that might be helpful
[ Direct Procurement|http://help.sap.com/erp2005_ehp_03/helpdata/EN/f4/7d2be144af11d182b40000e829fbfe/frameset.htm]
[ Indirect Procurement|http://www50.sap.com/businessmaps/85F3B934B6EE4A9FB6BE7C66E7B19C37846217D1FEC84CBEB65E4807A2D6520D.htm]

Similar Messages

China Direct / Indirect Tax rule and policy..

Hi,,
Now i am looking to work on China DirectTax.. But i am new in China Direct/Indirect Tax.
I need the following document for China Taxation.
1. Tax Rule/Policy
2. Configuration document for county china version.
Please send me the document or link directly on my mail also..
[email protected]

Dear Maa
this question is not "really" related to SAP Chemical. TAx and similar topics are more "SD-FT" or "GTS" related.
C.B.

What's the diff betweeen Direct & Indirect Activity All

Hello Experts,
please lemme know the diff between Direct Activity Allocation & Indirect Activity Allocation.

Hi Hussein,
Direct Activity Allocation and Indirect Activity Allocation
Hi Joshi,
Direct activity allocation involves the measuring, recording, and allocating of business services performed. To do this, you must create the relevant (measurable) tracing factors (allocation bases which can be used as cost drivers). In Cost Center Accounting these are known as activity types. Activity allocation occurs, for example, when business transactions are confirmed or when posting activity quantities to accounts. The system multiplies the activity produced by the price of the activity type.
To do so, for the cost centers or business processes involved, you must plan activity types either using prices set manually or using subsequent iterative price calculation.
If the receiver of the activity allocation is not a cost object (such as, cost center, business process, or internal order), then the following applies: If no price was set manually, then the plan price is used. If you have not executed an iterative price calculation, then the manually set price for the activity type is used for direct activity allocation (the price in the plan/actual (000) version).
If the receiver of the activity allocation is a cost object (such as, a production order or a product cost collector), then the price used for valuation is determined according to the valuation variant (which is linked to the cost object for the simultaneous costing via the costing variant). If the receiving cost object is not linked to a costing variant for the simultaneous costing, then the plan price for the valuation period is used.
The service cost center "Plumbers" (1000) performs 2 hours of the activity type "Repairs" for production cost center "H" (5000). The plan price for the repairs activity type is USD 15 per hour. In direct activity allocation, this price is valuated as follows:
2 hrs X 15 USD/hr = 30 USD
The u201CPlumbersu201D cost center is credited with this amount and the HI production cost center is debited correspondingly.
Indirect activity allocation can be used to automatically allocate planned and actual activities.
You can specify keys to allocate activity, which is not possible when you use manual activity input in the plan or actual activity allocation. In addition, if calculating the sender activity quantities involves too much time or expense, the system can determine the activity quantity inversely based on the activity of the receivers.
If you execute indirect activity allocation without completing planning for the combination cost center/activity type, you must activate the actual price indicator in the activity type master data.
A special type of indirect activity allocation for actual allocation is the plan=actual activity allocation. In contrast to other types of indirect activity allocation, the plan=actual activity allocation allows for a multiple level activity network to be determined iteratively with the operating rate as the tracing factor.
You can choose between two methods of indirect activity allocation, depending on the activity types category. These methods are determined for each segment and can be combined in one cycle.
Activity quantities can be determined on the sender object:
For certain activity types you can determine the total activity quantity for each sender. These are category 3 activity types, Manual entry, indirect allocation.
Using indirect activity allocation, these posted activity quantities are distributed by the senders among the receivers defined in the segment according to their allocation bases. The corresponding segment must use the sender rule Posted quantities. Any receiver rule can be used, with the exception of Fixed quantities.
The Quality control cost center uses 1000 hours of the Testing activity type. This cost center provides activity for the cost centers Goods receipt and Finished products. Allocations are made on the basis of the tracing factor Number of test items (TI). These are 4000 items for the Goods receipt cost center and 6000 items for Finished products. This corresponds to an activity input of 400 hours for Goods receipt and 600 hours for Finished products.
The price per activity unit for the Quality control cost center is 50 USD/hr. This results in activity output costs of 50,000 USD. The receiver cost centers are debited with the following costs based on the tracing factor TI.
Goods receipt: (50,000 USD X 4000 TI) / 10,000 TI = 20,000 USD
Finished products: (50,000 USD X 6.000 TI) / 10,000 TI = 30,000 USD
Pls revert back for futher explanation...
Srikanth Munnaluri

Get the count of number of people reporting to Manager directly/indirectly

I have the following Manager / Employee hierarchy.
Manager -> employee
A -> B (B is reporting to A)
A -> B -> C (C is reporting to B and B is reporting to A)
A -> B -> C -> D(D is reporting to C and C is reporting to B and B is reporting to A)
How can the get the count of total no of person reporting to A either directly or indirectly.
My count should be like that.
A -> B (count - 1)
A -> B -> C (count - 2)
A -> B -> C -> D (count - 3)
appreciate any inputs..

Hi
You need to run something like:
SELECT ENAME "Employee", CONNECT_BY_ROOT ENAME "Manager",
LEVEL-1 "Pathlen", SYS_CONNECT_BY_PATH(ENAME, '/') "Path"
FROM EMP
WHERE LEVEL > 1
CONNECT BY PRIOR MGR = EMPNO
this is based on the EMP table and connects every employee to their top-level manager
Andy

Direct material POs question

We are implementing a classic scenario with direct procurement (PDP) in EBP 5.0 (SRM 4.0) with 4.7 as the backend.
The problem is that the POs generated are not changeable in R/3 because the buyer who is responsible for direct materials has been created locally (per SAP configuration notes).
So, the question is - is this standard functionality or not ?
P.S. - The POs can be changed in EBP, though
Thank you.
-Bakulesh

Hi Bakulesh,
Direct procurement with ECS prevent from modifying the backend PO. This is the standard behaviour !
Because you have a PO in two system, you have a master system (SRM) and a slave system( backend).
In the slave system, the PO is jus a copy of the master PO which resides in SRM.
If possible, do not change this behaviour, as you will have some desynchronisation between SRM PO and backend PO content.
Why do you need to change the backend PO ? What data ?
Kind regards,
Yann

Direct & Indirect Breakup after allocation to COPA

Dear All
We have an issue with COPA allocations.
Allocations happen in two steps.
1. Allocation of indirect cost centers such as head office costs to actual cost centers(branches)
2. Allocation of costs in the real cost center(Branch) to COPA products.
Here the management wants to know the product cost breakup, of direct and indirect.
However we cannot track the initlal flow of costs from indirect cost centers to actual cost center once the costs are allocated to the product.
Kindly let us know if anyone has handled a similar situation.
Thanks
Gayani

In the structure you would use a cost element group "All but indirect". This cost element group you should define using two intervalls of cost elements.
If your cost element for the allocation of indirects is say "500000", create the cost element group for "All but indirect" with the intervalls
000001 - 499999
500001 - 999999
The structure would then have to assignments, one for cost element "indirects" and one for cost element group "All but indirects"
Therefore, no updates to the structures are needed when new cost elements are created as long as they within the number range defined in the cost element group

What is the Common Practise of Direct/Indirect Exchge Rate for USD LC in SG

Dear Experts,
I am from Singapore and I have customer wants to have local currency in USD Currency, because they have 80% of business transactions are in USD.
If customer chooses to have local currency which is different with the stay country currency, what should be the suitable Exchange Rate Posting? Direct or Indirect?
The issue here is when customer gets exchange rate from Bank, Bank will provide them "Direct exchange rate" from Bank's perspective. This "Direct Exchange Rate" is actually Indirect for customer because customer is using USD as LC.
What is common practise in this type of scenario?
Thanks.
Regards,
Lay Chin

Hi Lay Chin,
the application uses LC for everything, including exchange rate calculations, reconciliations etc & all financial reporting, including tax, P&L, balance sheet etc. Is it allowed in Singapore to submit such reports in a currency different from the official currency of the country?
Please note that you will not be able to change the LC/SC setting of the database once you have transactions &/or have exchange rates defined.
Even though most of the trading is done in USD, wouldn't your customer be happy with having the correct currency as LC & use USD as SC?
All the best,
Kerstin

SQL statement to fetch direct && indirect reportees from cutom table

Hi All,
I need to write a query to fetch direct as well as indirect reportees those exists in the hierarchy for a given manager id. I have custom table with two columns emplid,supervisorid.
For example
Emplid SupervisorID
111 022
112 022
113 025
022 025
025 030
028 030
030 050
If I give SupervisorID='050' in the where condition, results should have all of the employees. If I give 025 then output should be 022,113,112,111 similarly for 022 the result should be 112,111.
Can some body help me in writing SQL select statement?
Best regards,
KONDA

hi,
try this:
select emplid from yourtable where supervisorid <= &inputvar

How to find direct & indirect BW hierarchy nodes?

Hi Group,
Is there a class or function module that would allow me to find the direct and indirect sub-nodes in a hierarchy?
For example, I have a time and version dependent hierarchy for company (coming from SEM-BCS).
I would like to pick a node (node A) and find out all the direct and indirect nodes beneath node A.
HIEID
+ Node A
+ + Node B
+ + Node C
+ + + Node D
+ Node E.
So if I input node A, I would get back Nodes B, C and D but not E (E is at same level as A).
I can loop through the hierarchy tables and find this, but I'm curious if there is an existing FM or method to do this already. No sense in re-writing existing code.
Thanks in advance,
- Chris

Thanks, that FM is very useful.
Because the hierarchy I was working with originates in SEM-BCS, I was able to use the BCS master data factory to ultimately get what I needed.
The BCS delivered logic can be viewed in CL_UC_SSCR_GENERATE_GUI and method PROCESS_USER_SELECTION. It uses the BCS selection context + the consolidation group (aka Hierarchy Node) to determine the lower level consolidation groups which must also be provided in the selection criteria when querying data.
It's more complex than seems necessary, but it's using the BCS hierarchy data rather than the BW hierarchy data, which is probably a good thing.
Thanks,
Chris

Direct / indirect quotation

Hi Experts,
I have a peculiar problem. For only one vendor while accounting the invoice thro MIRO sytem is taking Direct quotation rate maintained in OB08. But for PO etc it is taking from ratios as maintained in exchange rate table. Is there any settings needs to be checked for that particular vendor.
Thanks in advance.
Narayanan

Dear Narayanan,
Please be more specific as both the invoice and po are taking from exchange rate tables maintained in OB08 right.
Then what is the issue.
Please also check what rate you have maintained while creating Purchase Order.
If there you have ticked the fixed rate then you will not be able to change it in MIRO.
It will take the value from the Purchase order only.

How does the Touch screen look in direct / indirect sunlight?

Was sitting on the LIRR heading home when I had this thought... after watching some guy playing with his PSP, as the sun was falling on his screen.... hhmmmm, I wondered how my Touch, which is now enroute from Anchorage, is going to handle the sunlight hitting it? Will I be able to watch my movies/tv shows without problem? How does the Touches screen look when sunlight hits it. I realize that sunlight hitting the screen is not an optimal viewing situation, but couldn't help but think how it would look. Those that are lucky to have one.... how does it handle sunlight?

readable, but not great. I had it out in bright Ozzie sunshine and I could use it, but I wouldn't watch a movie on it.

Differentiating Direct and Indirect Spend

Dear All,
There is a requirement where all the data from ECC is being brought in SPM. This consists of direct spend as well as indirect spend (services, consulting, other sundry expenses). Is there a way we can use some indicator which can be used to identify the direct/indirect spend?
The intention is to compare Direct vs Indirect spend and generate reports based on this.
Are there any best practices to implement this?
Thanks in advance,
Regards, Ankur

SAP doesnt provide any indicator to differentiate Direct vs. Indirect, understandably as the business needs to differentiate it. Usually your type of spend is differentiated at the material group (Category) level or material level. There are a dozen ways to skin a cat in SAP. You can create a mapping table based on category and material as applicable and have a indicator to represent the spend type and you can look up this table while extraction (data extraction kit) and fill it in a SAP provided field or a Z field. Or enhance your standard mara or material group to include a field to differentiate and enhance your extractor to map to the newly added fields.

Direct and Indirect Rates

Hi Guru's,
Can i know the difficulties in switching from direct to indirect rates.
Currently in SAP we are inputting direct rates (eg .89694) for the conversion from USD to CAD. This is causing FX issues when it comes to interco invoice processing as well as completing the Management report. I would like SAP to switch to using the indirect rate (eg 1.1149).
Thanks for your help and will assign good points.
Thanks

Well, I have this wonderful SAP-documentation:
     All R/3 applications and functions process exchange rates using the direct quotation as well as the indirect quotation. Whether the exchange rate is defined or communicated using the direct or indirect method of quotation depends on the market standard or the individual business transaction. The use of indirect quotation is neither application nor country-specific - it affects all the components in which exchange rates are used.
     The direct quotation is also known as the price notation: The currency value is expressed in the local currency per unit of foreign currency. The indirect quotation is also known as the volume notation: The currency value is expressed in units of the foreign currency per unit of the local currency. Example:
     local currency: EUR, foreign currency: USD
     direct quotation: 1 USD = 0.92000EUR
One unit of foreign currency USD costs the displayed number of units of local currency
     indirect quotation: 1 EUR = 1.08696 USD
For one unit of the local currency EUR you will receive the displayed number of units of the foreign currency.
     For each currency pair you can define either the direct quotation or the indirect quotation as the standard notation for the exchange rate. If the exchange rate you enter does not have the same quotation as the standard quotation set up here, the exchange rate is highlighted to show this.
From a mathematical point of view, it does not make any difference, you only need to be consistent. You cannot have one exchange rate as direct, another one as indirect quote. This will lead to hilarious figures in documents where you have items in local and different foreign currencies.
The numerical issue is that you may gain more reliability for certain rates where you will lose a significant digit depending on direct/indirect. It was quite different to do a direct quote of the Italian Lira against the Euro as compared to the indirect quote. However, there are additional settings that help circumvent this problem.
Hope this helps. Just remember: The main thing is to be consistent.
Kind regards,
Rudolf

Issue with indirect Quotation Exchange rates...

Hi All,
I am using FM 'POSTING_INTERFACE_CLEARING' to clear the customer open items.
While posting with indirect quotation exchange rates i.e BKPF-KURSF is in negative.It is throwing below error
"The Exchange rate may not be transferred if negative".
When i check it in BKPF table the value is saved like exp: '/1.9010'. for select query it is picking like '1.9010-'
How to resolve this issue.? it is very urgent.
Thanks in Adv.
Regards,
Raj.

Hi,
I gave the OB08 entries, not sure if you wanted me to explain the logic. Here it is..
Maintain 'Indirect quotation' from Local currency(USD) to Transaction currency(CAD) and 'Direct quotation' from Transaction currency(CAD) to Local currency(USD).
Direct quotation is where the cost of one unit of foreign currency is given in units of local currency, whereas indirect quotation is where the cost of one unit of local currency is given in units of foreign currency.
Your local currency is USD:
- Direct exchange rate: 1CAD = 0.92819 USD
- Indirect exchange rate: 1USD = 1.08238 CAD
The following settings have been made in the standard system:
- Direct quotation: ' '
-   Indirect quotation: ' / '
Direct exchange rates do not have a prefix.
Your local currency is USD. You enter a business transaction in the transaction currency CAD. Until now, you had to use direct quotation to enter the exchange rate (1CAD =0.92819 USD). If you have defined '/' as the prefix for indirect quotation, you can also enter the exchange rate with indirect quotation (1 USD = 1.08238 CAD) by entering '/1.08238' in the exchange rate field.
Direct or indirect quotation can be maintained as the standard form of quotation for a certain currency pair. You use:
         - '1' for direct quotation
         - '2' for indirect quotation
If a standard form of quotation has not been specified for a currency pair, the system automatically uses direct quotation.
You make the settings in the IMG: General Settings -- Currencies -- Set Standard for Direct/Indirect Quotation per Currency Pair.
Thanks
Ganesh

Exchange Rate Issue ( Ditect & Indirect Quotation )

Dear,
Alll Experts.
I am stuck up at one level , that is Exchange Rate issue.
User is creating shopping cart in SRM, Local Currency is USD and the goods is ordering from Canada ( CAD ).
While doing this amount is getting calculated   in - ( Negative ), And it is going to wrong approval for shopping cart approval.
When I see the TCURR table I am seeing there as negative sign in exchange rate because it is maintained in Indirect Quotation.
I want to calculate the same amount in postive figure.
How this can be achieve? If I maintain the same in direct quotation it will calculate positive but final amount will be bigger which is not proper one.
Experts guidance will be helpful.
Regards,
Sharvari Joshi.

Hi,
I gave the OB08 entries, not sure if you wanted me to explain the logic. Here it is..
Maintain 'Indirect quotation' from Local currency(USD) to Transaction currency(CAD) and 'Direct quotation' from Transaction currency(CAD) to Local currency(USD).
Direct quotation is where the cost of one unit of foreign currency is given in units of local currency, whereas indirect quotation is where the cost of one unit of local currency is given in units of foreign currency.
Your local currency is USD:
- Direct exchange rate: 1CAD = 0.92819 USD
- Indirect exchange rate: 1USD = 1.08238 CAD
The following settings have been made in the standard system:
- Direct quotation: ' '
-   Indirect quotation: ' / '
Direct exchange rates do not have a prefix.
Your local currency is USD. You enter a business transaction in the transaction currency CAD. Until now, you had to use direct quotation to enter the exchange rate (1CAD =0.92819 USD). If you have defined '/' as the prefix for indirect quotation, you can also enter the exchange rate with indirect quotation (1 USD = 1.08238 CAD) by entering '/1.08238' in the exchange rate field.
Direct or indirect quotation can be maintained as the standard form of quotation for a certain currency pair. You use:
         - '1' for direct quotation
         - '2' for indirect quotation
If a standard form of quotation has not been specified for a currency pair, the system automatically uses direct quotation.
You make the settings in the IMG: General Settings -- Currencies -- Set Standard for Direct/Indirect Quotation per Currency Pair.
Thanks
Ganesh

Direct / Indirect POs

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