SAP ABAP Programming Made Easy - Theory & FAQs

... Previous Page (Page II). 6) INVOICE VERIFICATION (MIRO) – (Tables – BKPF, BSEG): After the vendor delivered the material/service, it will send the invoice to the person responsible in the company. Invoice is a formal document issued by a vendor to the company to request the payment for the material or service that the vendor has already provide to the company according to the terms of payment agreed in the PO. Invoice verification is simply a method of capturing the details from the vendor’s invoice. If the details of the invoice match the expected details specified by any related purchase order (PO) and goods receipt (GR), the invoice can be made available for processing of payment. Unmatched invoices are excluded from the payment run and need to be investigated and released before payments can be made. Possible consequences of this include a loss of cash discounts, having purchase orders rejected by the vendor, and even losing the vendor account. Important step

... Previous Page (Page I).                                                                           ...  Next Page (Page III). 3) VENDOR SELECTION & COMPARISON OF QUOTATIONS: After receiving quotations from different vendors, the buyer can select or choose the vendor after comparing all the quotations received. 4) PURCHASE ORDER PROCESSING (ME21N to Vendor): Once the buyer has selected the vendor which will provide the material/service needed in PR, the buyer creates a Purchase Order (PO) based on the PR and the reference document (that can be an outline agreement, an info record, or a quotation). Purchase orders (PO) are documents of authorization that are issued by a buyer and extended to a seller. The main function of the purchase order or PO is to specify the terms of purchase that will exist between the two entities, at least in regard to all purchasing activity specified in the document. In simple words, a purchase order (PO) is a legal document "

MM PROCESS FLOW: Requirements (SD, PP, PM...) ---> Purchase Requisition ---> Purchase Order (Sent to vendor) ---> Goods Receipt (Receiving Material from Vendor) ---> Invoice Verification (Invoice from vendor) ---> Vendor Payment. BUSINESS FLOW: 1) The requirements flow from different SAP modules to MM-Purchasing via MRP run (Material Requirements Planning), this creates Purchase Requisitions. 2) Based on the purchase requisition and information from purchasing info records the vendor is decided and a Purchase Order is created. 3) The Purchase order is sent to vendor and the vendor ships the material. 4) Goods Receipt is created in the SAP system for receiving the materials from Vendor. 5) Vendor sends an invoice for the Purchase order and it is entered into the SAP system using Invoice Verification. PURCHASE TO PAY FLOW: The purchasing process is initially started when there is a requirement of material/service from a user. If the material/serv

MM flow is processing between business organization and Vendor: 1) Purchase Requisition - (T-code: ME51) ( Tables: EBAN & EBKN) 2) Source List – (T-code: ME41) 3) Request for Quotation (RFQ) – (T-code: ME41N (To Vendor)) 4) Purchase Order – (T-code: ME21N (To Vendor) ) ( Tables: EKKO & EKPO) 5) Goods Receipt – (T-code: MIGO) ( Tables: MKPF, MSEG) 6) Invoice Verification – (T-code: MIRO) (Tables: BKPF, BSEG) 7) Vendor Payment – (T-code: FB60 (FI - Account Payable) ) Tables in MM (Material Management) Module: MARA  - Material General. MARC  - Material Plant Data. MAKT  - Material Description. MARD  - Material Storage Location Data. MAST  - Material BOM Link. MBEW  - Material Valuation. MKPF  - Material Document Header. MSEG  - Material Document Line Item. MVKE  - Material Sales Data. T023  - Material Group. T024  - Purchase Organisation. EBAN  - Purchase Requisition. EBKN  - Account Assignment Purchase Requisition. EINA  - Purchasing

"SAP MM (Materials Management) is a module of the SAP Enterprise Resource Planning (ERP) package that is used for Procurement Handling and Inventory Management." 1) MM (Material Management) optimizes all purchasing processes, helps in accurate inventory and warehouse management and so on. 2) The module has two important master data – Material and Vendor. 3) Broadly, the various levels that can be defined for a SAP MM implementation are: Client, Company Code, Plant, Storage Location and Purchase Organization. 4) MM Module is the largest and most complex in all of SAP modules. It can be divided into five major components. These are: Materials Management. Plant Maintenance. Quality Management. Production Planning and control. Project Management System. Each is divided into number of subcomponents. 5) SAP Material Management covers all tasks within the supply chain, including consumption-based planning, planning, vendor evaluation and invoice verifi