Procurement of Consumables

Dear All,
What is the material type used for consumable materials like oils and gases? How to run the procurement cycle for these materials?
What is the process of updation of excise registers?
Please provide the information related to this issue.
Thanks & Regards,
Venkat.

Hi
generaly we use UNBW and NLAG for consumable
UNBW (non-valuated materials)
Non-valuated materials are managed on a quantity basis, but not by value.
NLAG (non-stock material)
Non-stock material is material that is not held in stock because it is consumed immediately. (Office supplies such as stationary. You need to create purchase order and accounting document for payment but the stock balance is always zero as it is issued out immediately to the various department
But as u r talking about Oil and gases these can be maintained as pipeline materials we ususly follow following sequence for it
1)Create a Material with material type " PIPE"
2) Create a Purchasing Info record for the Pipeline material ( Pipeline InfoRecord only against the Std Pur Org)
3) Issue material as per requirement
4) Create Pipeline Settlement MRKO & settle the payment amount for the consumed material.
also u can maintained everything in the Excise master J1ID for pipe line material.
If you are using TAXINJ, J1ID and Tax code is more than enough to do the calculation of Excise duty and sales tax.
If you are using TAXINN, J1ID and Condition Record FV11 will be enough
Vishal...

Similar Messages

Configuring Plant Driven Procurement in SRM 5.0

Dear All,
In our company we have implemented SRM 5.0 Classic Scenario. We are using SRM system for ordering consumable materials through external and internal catalogs. All other materials as raw materials, marketing materials and spare parts are procured in R/3 system.
There is a new business requirement to use SRM system for ordering spare parts through catalogues. Currently, spare parts are planed in MRP in SAP R/3 system, where purchase requisition is generated and after that a purchase order is created manually in the procurement department.
I have investigated how the process can be reproduced in SRM system, but still there are some open questions. Hope, somebody of you can give me some answers.
Generally the process will look like this:
1. The purchase requisitions created in MRP will be transferred as external requirements to SRM Sourcing application.
2. In Sourcing Application purchaser is enabled to use different sourcing functions- to create or assign contract for these requirements, bid invitations or directly to create purchase orders in SRM or in the backend SAP system. Our customer will use it only for creating orders though selecting items from catalogs.
My first question is: Is it possible, for these external requirements, to select the items from existing catalog and to create purchase order in the backend system? And if yes, in which SRM version this could be achieved? I read somewhere, may be in this forum, that items from the external requirements can be substituted by catalog items but only in SRM 6.0 version?
It is also not very clear for me whether I have to activate extended classic scenario in order to configure Plant Driven Procurement.
Thank you in advance,
Best Regards,
Desislava

Hi,
Your suggestion is appropriate for my situation, but still there are some open questions for me:
It is not a problem to maintain internal catalogues for the spare parts and when needed users will create shopping carts manually by selecting parts from the catalogue and PO will be created in SAP backend system as it is for the consumables- that part of the process is clear. But the main question is how we can use this catalogue when spare parts are planed through MRP run, because most of the spare parts in the company are planed in MRP?
In this case, the MRP purchase requisition have to be transferred to SRM sourcing application and from there to replace somehow the items by catalogue items. Is this scenario possible for SRM server 5.5 clasic scenario- I think no?
Anyway thank you for your answer, I will think for a workaround.
Regards,
Desislava
Hi.
Please continue with classic scenario for consumbale material
You can do one thing for the spare parts .Please consolidate the total requirement of spares requirement for 2 to 3 years
prepare a master list with vendor and price (frequently procured)
Publish this in a separate catalgue so that you can use SRM for Spare Parts.
In the mean time which materials is not there in the Catalogue procure manullay thoro 'PR in SAP and you can consolidate next
year and totally you can procure both consumables and Spare Parts
Regards
G.Ganesh Kumar

Regarding Raw Material Procurement Cockpit

Hello everybody.
I am test the new business function named raw material procurement cockpit(RMP Cockpit).
I just checked the following SAP information.
Raw Material Procurement Cockpit - Consumer Products for Food and Beverage Industry (PP-PI-CFB) - SAP Library
But I cannot find the restrictive condition information for RMP cockpit.
For example, if use the subcontracting function for Japan-specific, the cost calculation cannot be used.
Would you like to tell me the restrictive condition for RMP cockpit?
or show me the way to find the information about RMP cockpit restrictive condition.
Thanks in advance.
BR,
Tadayoshi Son

In SFW5, click on impact analyzer and then details for the business function.
Check the transaction codes that are affected.

Purchase to consume

Please is there anything like purchase to consume in sap mm? If there is what is it?

Hi
We have different type of procurement in SAP MM
1) Stock Procurement - Materials are created as masters and procured for stock. You can raise the PO, Goods receipt and Invoice verification. Account determinaton takes place based on the Material Master Accounting view and automatica account determination procuder.
2) Consumable procurement - Similar like Stock we have consumable procurement where you can procure the consumable items for sirect consumption. You need to use some special account assignment categories Objects during PO creation like for example Cost Center , Asset , Project etc.,
You can search in SDN for Consumable procurement you can lot of information or go thru the SAP library for more information.
Karthik

WBS CONSUMABLES

hi
my scenario is as below . here we have project systems (PS).Business process is required for General Procurement like consumables such as welding rods, coolants (without WBS) .But these are to be issued for project (against WBS) .how to map this .please give me some idea.
thanks n regards,
nr............

did you define screen 1000 handling in i_bdcdata?

Stock overview of Consumables/Direct consumptions

Hi Experts,
Please provide your valuable suggestions on the below mentioned scenario :
My client needs to tract the stock of direct consumables materials for Eg:- books. this information will be use full for next procurement proposal.when ever client see the stock of that book, then they will comes to know whether to go for procurement or not .
Administration department will procure the consumables and distribute to all the other departments in the organisation.
In SAP when we procure consumables that will charged to a cost centre (Administration dept) and GL A/C at the time of PO.again when I issue the stock to other departments it is asking of cost centre and G/L again.In My scenario the consumables are already charged to admin department and when i issue the stock to other departments i will not give the cost center because it is just for information purpose to reduce the stock form original stock.
Kindly give your inputs............
Regards,
Sri...........

hi
Sri
In My scenario the consumables are already charged to admin department and when i issue the stock to other departments i will not give the cost center because it is just for information purpose to reduce the stock form original stock
Create a Cost centers for each departement.As per your Informations...
Suppose You have already issued consumables against Cost center of department.When you actually issue material issue againt a dummy cost center which you will never do settlement.
This will avoid cost debit from cost center which physically moving material but stock will reduce.
Use MB1A 261 Mvt type
For this take the help of your FICo consultant.
Regards
Sujit

Direct posting of G/L account is not allowed at PO level.

Hi,
Procurement of Consumables thru Maintenance Order (for Breakdown Maintenance):
1. Generation of Purchase Requisition thru maintenance order .
2. Purchase Order from purchase requisition
3. MIGO
4. MIRO
The required consumables are assigned in maintenance order. when converting PR to PO this consumables will automatically flow. According to the valuation class and gl account in material master GL account will also flow automatically.
When converting PR to PO the system throws an error saying that Direct posting is not possible for the G/L account.
I made this GL account as post automatically to ensure that there should be no manual postings for such automatic account determinated GL accounts thru valuation class.
This error can be resolved by removing the tick mark post automatically but is this correct. If it is so then what is the implication of automatic a/c assignment thru valuation class.
Please guide
Thanks in Advance
Regards,
Sam

Dear Sir,
We have added the Consumables (Diesel) in Components tab with Item category N. So, it has triggered a PR from MO. As you know account assignment category is ORDER (F) only.
Also, they have resolved the problem. Problem was with the G/L account Master data.
Thanx a lot
Regards
Sam

Moving avergae price updation in material master for project stock

Dear All,
My query is pertaining to updation of MAP( moving average price) for project specific procurement ( as project stock) for valuated project stock.
As definelty the cost of procurement gets consumed by project .but i want to know does the project stock procurement still updates the moving avergae price or not.
Ex:-Suppose MAP in material master is 10 USD ( with qty 1)and i procure the same material ( qty 1)for project with account assignment Q for 9 USD . now will the MAP in material master becomes 9.5 USD or it remains 10 usd.?
Please reply urgently
Regards
Amit

Hi Amit,
If your Project Stock is valuated, then, the valuation data for it is stored in a different table: QBEW.
The normal, anonymus warehouse stock (the unrestricted use stock which is not assigned to any project or to any sales order) has its valuation data stored in MBEW.
The "Accounting 1" view in the Material Master MM03 ONLY displays the data of MBEW.
In the material master you will never see the valuation data of the valuated project stock (table QBEW) or the valuated sales order stock (valuation indicator "M" - table EBEW).
The valuation data for the tables QBEW and EBEW can be seen in SE16 or in the transaction MBBS.
Also note that these valuated special stocks are managed independently of the normal stock. If, for example, you change the Moving Average Price of your normal stock in MBEW, this will not have any influence on your project stock, as the data is under a totally diferent table QBEW.
I hope this helps you,
Esther.

Open PO for cost center

Hii..
I have the flowing scenerao
my clint has 10 number of trucks as cost entre, all the expence for fuel, maintainance for truck is booked gainst cost centre.
Now i have an agreement with a vendor who has a gas filling station, the trucks goes to filling station and fills the gas, every time when required.
at the end of month for all the cost centre the toatal amount of fuel consume is sent to the client.
and he has to pay the vendor for total amount for fuel purchased and book the cost of fuel against each cost centre.
How do i map this scenerao..
Regards
sarfraz

Hi
As said by Bijay u can Go for Blanket Po also.
Create blanket PO with limit and validity period. (Blanket purchase orders have the item category B and the document type FO. )
U can create PO with or without account assignment and can change as per requirement at the time of Invoice verification so that expence will be booked against required cost center
I think this is a best soln.
<b>Also read info given by SAP about Blanket PO</b>
The processing time for individual purchase orders is not often viable for office materials, screws and small parts, cleaning work or lesser services that are required during the course of the year In such cases, you can use blanket purchase orders to procure various consumable materials or services from a vendor, up to a fixed value limit.
A blanket purchase order contains a validity period and a value limit. This means that you can specify a validity period instead of a delivery date. Invoices can be posted against this blanket purchase order within the validity period. The total invoiced value must not exceed the value limit. A blanket purchase order only contains a short text. It does not contain materials or services. Blanket purchase orders have the item category B and the document type FO.
You cannot enter a goods receipt, enter services, or accept services for blanket purchase orders.
<b>The system does not need to know the account assignments for the individual requirements at the time of the purchase order</b>. You can enter them during invoice verification. If account assignment data has already been maintained in the purchase order, you can change these during invoice verification. When you enter an invoice for a blanket purchase order, you can enter as many account assignments as you require, along with the relevant amounts.
vishal...

Direct Posting is not possible for G/L accounts

Hi,
Procurement of Consumables thru Maintenance Order(for Breakdown Maintenance):
1. Generation of Purchase Requisition thru maintenance order .
2. Purchase Order from purchase requisition
3. MIGO
4. MIRO
The required consumables are assigned in maintenance order. when converting PR to PO this consumables will automatically flow. According to the valuation class and gl account in material master GL account will also flow automatically.
When converting PR to PO the system throws an error saying that Direct posting is not possible for the G/L account.
I made this GL account as post automatically to ensure that there should be no manual postings for such automatic account determinated GL accounts thru valuation class.
This error can be resolved by removing the tick mark post automatically but is this correct. If it is so then what is the implication of automatic a/c assignment thru valuation class.
<removed_by_moderator>
Thanks in Advance
Regards,
Radhika
When I am trying to use a G/L account for a Consumable (eg: diesel) (that is required for Maintenance) at PO level (through maintenance order) system throws an error sying that Direct posting is not possible for the G/L account.
Also, teh Same G/L

Hi,
Your balance sheet accounts for stock should be defined as for direct postings only. But the P&L accounts should not be marked.
Regards,
Eli

Invoicing plan and framework order

Dear All SAP Gurus,
I am very new to this scenarios .I just read about invoicing plan and FO document type, through that I understand that FO purchase order and MRIS are linked. Still I am very confused about this . My ideas are not clear what is frame work order and what is invoice plan settlement and when these to be used? What are configuration required to these?
Please guide breifly.
Thanks in advance
Regards
Mahesh

Hi,
Frame work order-FO.
Frame work order is normally used for procuring the consumables and also can use for services. In Frame work order we do not require the GR.Direct invoice can be done with out GR.
We can not use Frame work order for stock materials. In Frame work order we have to maintain the validity period and the value limit.
Item category must be maintained as -B limit and account assignment category also should be maintained.
Invoicing Plan.
The invoicing plan facilitates the largely automatic creation and payment of invoices both for recurring procurement transactions such as rental or leasing payments and transactions involving settlement in stages (such as payment for the phases of a building project as they are completed

Problem regarding SAP Project System & Material Management

Hello Experts,
please check our process as below:
Order confirms than sales order and project will create
material of BOM is assigned to any activity in project so these material (RM) will be procured and consumed
assign activity for all work done on material to produce FG or SFG.
confirm activity whenever any work done like fabrication done so confirm and its cost comes to WBS.
than we have to subcontracting process so dispach SFG from this and receive after activity done by third party.
than more work is done and confirm these activity. than after all work done we get FG in stock. than delivery from project.
We are facing issue in above business process of our client as below:
1. process of subcontracting using project system as we are not using production planning. how we get any SFG for subcontracting process.
2. if we confirm all activities and consume all Raw Materials than how we will get finished good in our project stock for delivery.
3. after delivery from project how sales order affects with regards to completeness of this sales document.
Please help for this.
Note: Remember we are not using PP cos customer require detailed report of these process and capacity planning etc.
Thanks
Sunil

Hi Sunil,
Assume this is my project structure & attached components. I will procure this components externally. After GRN, This components will be issued to network with 581 Q movement type.
Now we need to assemble this raw material to produce our FG, As these SFG are in our project stock. What we need to do for assembly process through PS.
Also throw some light over benefit of using PS-BOM interface ( CN33 ) for attaching material components.
Project
WBS
Network
Activity A
Gears
Qty - 1
Activity B
Blades
Qty - 2
Activity C
Stand
Qty - 1
Activity D
Connectors
Qty - 1
Regards
Gaurav Ahuja

Global Purchasing org

Hello Gurus,
I am working on a Global implementation. I would like to know the factors to be considered in setting up Purchasing orgs for each region. it is fine when each country does their own procurement but the problem is when one country wants to procure for the other country. How can i acheive this.
What are the currency issues involved when there is a cross country purchase.
Will setting up a reference Purchasing Org help in anyway.
Any help will be greatly appreciated.
Thanks in advance
MV

reference purchasing organization
Simply if contract is made with this Purchase org withs is decleared as Ref pur org then other purchase org can release PO with reference to the contract made by Ref pur org
Example
The reference purchasing organization RORG, which belongs to head office in Atlanta, has negotiated a comprehensive contract for the material Steel bolt 01 with favorable conditions with vendor Smith Corp.
The purchasing organization EORG, responsible for procurement in the Houston and Austin plants, wants to issue release orders for the material Steel bolt 01 against this contract. Purchasing organization EORG procures other consumable materials from regional suppliers.
Prerequisites:
Before the purchasing organization EORG can issue release orders against the above contract, the following settings and data must have been maintained:
Maintaining Customizing Settings
Both purchasing organizations are maintained in Customizing for the Enterprise Structure under Definition  Materials Management  Maintain Purchasing Organization.
The reference purchasing organization RORG can be maintained with or without a company code and plant(s).
The purchasing organization EORG is assigned to company code 1000 and the two plants.
Purchasing organization RORG is maintained as the reference purchasing organization for the purchasing organization EORG in Customizing for the Enterprise Structure ( Assignment  Materials Management  Assign Purch. Organization to Reference Purch. Organization).
Entering Application and Master Data
The vendor Smith Corp. is maintained for both purchasing organizations.
The material Steel bolt 01 is maintained for the plants Houston and Austin.
A centrally agreed contract has been created without a plant by the reference purchasing organization RORG.
Process Flow
1. An employee belonging to the purchasing organization EORG creates a purchase requisition for the plant in Houston.
2. The purchasing department processes the requisition and carries out a source determination procedure.
3. The contract of the reference purchasing organization is determined as a valid source.
Reward if u get the concept corect

Fixed Vendor without Source List

Hi Gurus,
My client wants to have a fixed vendor for the Procurement of Consumables which doesnt have a Material Master. I dont have source list also. But i want to make a particular vendor fixed for my purchasing. Is there any options available in SAP to do that?
Please advice regarding this.
Thanks,
Saakithyan

Regular vendor - Specifies that the material is to be procured from this vendor at client level, i.e. for the entire corporate group.
If you set this indicator, the regular vendor is suggested as the only source.
If you wish to work with the source determination facility for purchasing documents, it makes sense not to set the indicator so that the system suggests all available sources, not just the regular vendor.

Difference between Blanket PO and Service PO

Hi,
     Can anyone let me know the difference between the blanket PO and the service PO. Please let me know in detail.
Regards,
Ashwin

Dear,
BLANKET PO : For consumable materials supply for long period and reduce the entry work each time.
You can create a purchase order which has a longer validity period (for example a year) and an item-specific value limit. Using Blanket purchase order, it is possible to procure different consumable materials or external services, for which more detailed individual processing (purchase order, goods receipt, invoice entry) is considered uneconomical.
The materials or services are grouped under a heading or super ordinate term and represented as an item of blanket order. Prices for the individual materials are not recorded in purchase order.
A key advantage of blanket purchase order is reduction in processing costs.
-     Different materials and/or services are procured over a long period with a single PO item.
-     It is not necessary to issue separate purchase orders for individual procurement transactions.
-     There is no goods receipt or service entry process.
-     Neither RFQ nor contract can be created.
     It is possible to change the account assignment when entering invoice.
     You can also switch from single to multiple account assignment during invoice entry.
     If you have entered account assignment U Unknown in PO item, you must manually enter account assignment data
when entering invoice (subject to change has defined as permissible in CUSTOMIZING u2013 MATERNAL MANAGEMENT u2013 PURCHASING u2013 ACCOUNT ASSIGNMENT u2013 MAINTAIN ACCOUNT ASSGINMENT CATEGORIES).
CHARACTERISTICS OF BLANKET PURCHASE ORDER
     Order type FO (Framework order)
o     Validity period in header of purchase order (field selection).
     Item category B (Limit)
o     Limits in the item
o     No material number
o     Account assignment category U allowed
o     No goods receipt or service entry
     Accounting data for the item suggested in invoices
     Additional or multiple account assignment possible in invoice verification
     Check of validity period and limit in invoice verification.
To be able to work with validity periods and limits in purchase order you must use document type FO and item category B.
-     Document type FO enables you to specify the validity period at PO header level and use the item category B for limit items.
-     You cannot specify a material number in a PO item with item category B.
-     You have to specify a material / service group.
Regards,
Syed Hussain.

Procurement of Consumables

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