Account assignment in SAP Materials management Module

Account assignment PPt

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Module Objectives
•Upon completing this module, you will be able to:
–Understand the process to create Purchase Order.
–Create stock purchase order & Consumption
purchase order.
–Configuration setting for Purchase order

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•Introduction to Purchase Order
•Pre-requisites & Important Terms & Conditions
•Various methods to create Purchase Order
•Overview and Conceptual understanding of
Account assigned PO
•Differences between Purchase orders for stock and
Account assigned.
•Customization settings for PO
•Customization settings for Account Assignment
Agenda

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•Introduction to Purchase Order
•Pre-requisites & Important Terms & Conditions
•Various methods to create Purchase Order
•Overview and Conceptual understanding of
Account assigned PO
•Differences between Purchase orders for stock and
Account assigned.
•Customization settings for PO
•Customization settings for Account Assignment
Agenda

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Introduction to Purchase Orders
•It represents the formal and final confirmation to the vendor to supply material
or service.
•Its an external document created with ref to PR / RFQ/PO/Outline agreement by
the Purchasing group as per the agreed terms & conditions.

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Purpose of Purchase Orders
•The purchase order can be used for a variety of procurement purposes.
•You can procure materials for direct consumption or for stock. You can also
procure services.
•Furthermore, the special procurement types "subcontracting", "third-party"
(involving triangular business deals and direct-to-customer shipments) and
"consignment" are possible.
•You can use purchase orders to cover your requirements using external
sources (i.e. a vendor supplies a material or performs a service).
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Purpose of Purchase Order(contd..)
•You can also use a purchase order to procure a material that is needed in one
of your plants from an internal source, i.e. from another plant. Such
transactions involve longer-distance stock transfers.
•You can use purchase orders for once-only procurement transactions. If, for
example, you wish to procure a material from a vendor only once, you create a
purchase order.
•If you are thinking of entering into a longer-term supply relationship with this
vendor, it is advisable to set up a so-called outline agreement, since this
usually results in more favorable conditions of purchase.
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•Introduction to Purchase Order
•Pre-requisites & Important Terms & Conditions
•Various methods to create Purchase Order
•Overview and Conceptual understanding of
Account assigned PO
•Differences between Purchase orders for stock and
Account assigned.
•Customization settings for PO
•Customization settings for Account Assignment
Agenda

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Pre requisites for creating Purchase
Orders
•Before we create a PO, we need the following details to be configured:
–Valid Vendor Master created
–Purchase Organization
–Company Code
–Purchasing Groups
–Plants assigned to the company code being used
–Material Master record(optional)
–Quantity and price for the goods to be procured.
–Account Assignment Category and Item Category should be configured
correctly for the PO document type.
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Structure of a PO
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Structure of a PO
•A purchase order (PO) consists of a document header and a number of items.
•The information shown in the header relates to the entire PO. For example, the
terms of payment and the delivery terms are defined in the header.
•The Items can further have details maintained for them e.g. different weights,
delivery schedules etc.
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Important Data for Purchase order
•Prerequisites required for maintaining purchase order are as follows.
Header data Item data
•Vendor
•Order(doc.) type
•Purchase organization
•Purchase group
•Company code
•The terms of payment
•Material no.
•Plant no.
•Quantity
•Delivery date
•Price

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•Item category
•Item category controls the procurement process and defines whether an
item requires material number, account assignment, goods receipt, and/or
invoice receipt.
•Standard Item categories
•Standard
•Subcontracting
•Third Party
•Consignment
•Stock Transport Order
Important Data for Purchase order

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Important Data for Purchase order
•AccountAssignmentCategory
•Itdeterminesthenatureofaccountassignmentandaccountstobecharged
whentheincominginvoiceorgoodsreceiptisposted.
•StandardAccountassignmentcategories:
•Asset
•Order
•ProductionOrder
•CostCenter
•Project
•Unknown
•Salesorder

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Document type
•The purchasing documents are differentiated via document type, also
determines which is the relevant number ranges and which field should be
offered during maintenance purposes.
•Document Type of PO controls:
•Screen Layout of the PO: This will determine which fields are mandatory,
optional, read only or hidden.
•Allowed Item Categories
•Number ranges for the PO
•PR document types allowed for the item categories
•PO release strategy can also be configured based on the PO document
type.

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•Introduction to Purchase Order
•Pre-requisites & Important Terms & Conditions
•Various methods to create Purchase Order
•Overview and Conceptual understanding of Account
assigned PO
•Differences between Purchase orders for stock and
Account assigned.
•Customization settings for PO
•Customization settings for Account Assignment
Agenda

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Purchase order creation process
•Purchase order can be created by following methods:
1. Manual purchase order: In this case you need to enter all the required
details in purchase order.
2. Automatic purchase order: Itcan be created with reference to purchase
requisition
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Various Methods to Create a PO
•Vendor known(ME21N)
–We can use this procedure if you know which vendor is to receive the order.
•Vendor unknown(ME25)
–We can use this procedure if you want the system to select and suggest
possible vendors.
–These suggestions are then made on the basis of sources of supply that
have been predefined in the system.
–Note: the term "source" covers outline purchase agreements, info records,
and source lists).
•Creation of POs from assigned requisitions(ME58,ME59,ME59N)
–We can use this procedure to list the requisitions for your purchasing group
that have already been assigned to a vendor (that is, those requisitions
containing a vendor, outline agreement, or info record as a procurement
option). POs can be generated from these requisitions automatically.
•Stock transfer(ME21N)
–Choose this procedure if you wish to order not from a vendor but from one
of your plants.
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Process flow
•Purchase Order
With ref.to PR With ref. to Outline
Agree.
With ref.to RFQ

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ME21N
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ME25
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ME58
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ME59N
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Creating STO-ME21N
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Demo1_Creating a Purchase Order
ObjectiveTo create a Purchase Order

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•Introduction to Purchase Order
•Pre-requisites & Important Terms & Conditions
•Overview and Conceptual understanding of Account
assigned PO
•Differences between Purchase orders for stock and
Account assigned.
•Customization settings for PO
•Customization settings for Account Assignment
Agenda

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Account Assignment
•Specification of the objects (e.g. cost center, sales order, project) that are
charged in the case of a purchase order for a material that is intended for
direct usage or consumption.
•Use:
–We can specify one account assignment for an item, or several account
assignment for several items.
–Multiple account assignment allows you to apportion the cost of a material
covered by a PO among your own cost center and several others.
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Account Assignment Category
•You specify which account assignment object is to be charged via the account
assignment category.
•The account assignment category can be entered for each line item of the PO.
•The account assignment category determines:
–The nature of the account assignment (cost center, sales order, and so on)
–Which accounts are to be charged when the incoming invoice or goods
receipt is posted
–Which account assignment data you must provide
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Account Assignment Category
Description Required account assignment data
Asset Main asset number and sub-number
Order Order and G/L account number
Production orderProduction order number
Business processBusiness process and G/L account number
Cost center Cost center and G/L account number
Sales order Sales order and G/L account number
Individual
customer
requirement
Sales order and G/L account number
Project Project and G/L account number
Unknown None
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Account Assignment Category
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Features of Account Assigned POs
•Account assignment category will be entered on the PO items
•Based on the selected category, cost object needs to be entered on the PO
•When GR is done for the PO item, stock will not increase in the system, but it
will be directly consumed against the cost object.
•One exception to this rule is account assignment category Q(Project made to
Order) for which the stock will be displayed under Project Stock.
•If Unknown account assignment is used on the PO, system will ask for the
details of account assignment while posting the Goods Receipt for the PO.
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•Introduction to Purchase Order
•Pre-requisites & Important Terms & Conditions
•Overview and Conceptual understanding of Account
assigned PO
•Differences between Purchase orders for stock and
Account assigned.
•Customization settings for PO
•Customization settings for Account Assignment
Agenda

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Procurement for Stock & Consumption
SrNo Purchase Orders for Stock
Account Assigned Purchase
Orders
1
Account Assignment Category
will be blank
Account Assignment Category
will be entered on the PO
2
Cost Object is not required while
creating the PO
Cost Object is mandatory while
creating the PO except for
Unknown account assignment
3
Posting the GR will increase the
stock in the system
Posting the GR will result in
consumption of goods against
the Cost Object. Stock will not
increase
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•Introduction to Purchase Order
•Pre-requisites & Important Terms & Conditions
•Overview and Conceptual understanding of Account
assigned PO
•Differences between Purchase orders for stock and
Account assigned.
•Customization settings for PO
•Customization settings for Account Assignment
Agenda

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Demo2_Customizing Settings
•Define document type
•Define number ranges
•Define screen layout
•Set tolerance limit for price variance
•Account Assignment Category

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Demo2_Customizing Settings
•1. Select the document Type(NB)
•2. Click on “Allowed Item categories”-here you can see Item categories allowed for the document type
•3. further to that Select option “Item category & click on Link purchase requisition -document type”
•It will display allowed reference document types & item categories
ObjectiveTo Define the document type purchase order document.

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Demo2_Customizing Settings
ObjectiveTo Define the number ranges for purchase order document.

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•Select the field ME21
and double click.
Demo2_Customizing Settings
ObjectiveTo change the screen layout for Purchase Order

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Demo2_Customizing Settings
•Mark the check box as
Per requirement
ObjectiveTo change the screen layout for Purchase Order

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Demo2_Customizing Settings
•Click on radio button as per
requirement and enter the
% also
ObjectiveTo change the tolerance settings

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•Introduction to Purchase Order
•Pre-requisites & Important Terms & Conditions
•Overview and Conceptual understanding of Account
assigned PO
•Differences between Purchase orders for stock and
Account assigned.
•Customization settings for PO
•Customization settings for Account Assignment
Agenda

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Account assignment category
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•Field selection for account
assignment category
ObjectiveField selection for Account Assignment Category

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Quiz/Check point
•Questions/Discussions :
•What is the purpose to create Purchase
Order?
•What is Stock Purchase Order?
•What is Consumption Purchase Order?
•What is the transaction code to create
Purchase Order?

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Questions and Comments
•What questions or comments
do you have?

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Exercise
Exercise 9: Create a Manual Purchase Order (60 min.)
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