Mass Maintenance of Purchase Order

There are situations in real life scenarios, when transactional data needs to be updated en-mass. This could arise due to change in material specifications, vendor terms etc. To update each and every document, one by one would be time taking, prone to errors and very tedious. To simplify this, SAP has provided utilities to update certain transactional data en-mass.

This article highlights one such mass maintenance utility for updating Purchase orders in bulk.

Go to T Code MEMASSPO.

Let's say we want to update Purchase Order Line Items. Select the line as shown below.

Click on Execute Button.

Enter the Purchase Order Number. If the purchase orders have multiple line items, only those purchase orders should be entered here which need maintenance of the same line item.

Click on Select Fields button.

Select the fields in the screen above which you want to mass maintain.

Select both the columns and click on mass update, as shown below.

Click on SAVE.

Click on the check box.
Below is the update log.

How to Control Inspection Lot Creation

This article explains the setting required to control Inspection Lot creation for Purchase Order / Production Order or Process Order.

In the material master > QM view of the material, click on Inspection type and the following pop-up screen will open.

The field “Control insLot” controls the behavior of Inspection Lot creation.

• For each purchase order item, batch and storage location – only one inspection lot gets created. Even if there are multiple Goods Receipt on the purchase order line.
• For each material document, material, batch and storage loc. – for each partial GR a new inspection lot is created, even if the batch is the same.

The following screen shows the settings for a Production Order / Process Order.

• Early lot creation for the order item – It means when a process / production order is released an inspection lot is created. This setting is particularly useful if there are in-process inspections.

Solution Manager at a Glance

Solution Manager, as the name suggests is used to manage the entire IT Solution landscape for an organization. Solution Manager can be used to manage SAP as well as non SAP applications. SolMan has applicability in all kinds of SAP projects viz. implementation, rollout, support or upgrade. It supports all phases of a project by using appropriate pre-delivered roadmap. Apart from projects, SAP solution manager is also used for Solution Monitoring, Service Delivery (operations) and Service Desk (for steady state support).

The following is a typical transaction / process sequence while using solution manager,

• T Code – SOLAR_PROJECT_ADMIN
This transaction is used to create a project and assign a roadmap. While creating a project, a project type needs to be selected. The different types include, Implementation, Template, Optimization Project (for SAP services), Safeguarding Project (for critical situations) and Upgrade Project. Project language is also determined at the time of project creation which can not be changed later.

• T Code – RMMAIN
This transaction enables the user to see the roadmap in a graphic form. It basically outlines the roadmap in terms of deliverables, milestone and services for each project phase.

• T Code – SOLAR01
This transaction is used during the business blueprinting stage. It is divided into 4 groups viz Org Unit, Master Data, Business Scenario and Interface Scenarios. The business scenario group is further subdivided into Org Unit, Master Data and Business Process. Under business process the various steps / tasks are defined which generally include the logical sequence of transactions codes which need to be executed to cover the business process.

The Org Unit and Master Data under a business scenario are meant for business scenario specific data.

The data from this transaction is used in all subsequent phases of the project.

• T Code – SOLAR02
This transaction is used during Realization / Build phase. It uses the structure created in SOLAR01 to add further details. The user can add transactions for each business process, Configuration Nodes for configuration items, Test Cases, Business Configuration (BC sets) sets etc. SOLAR02 also provides access to create new test case or a new BC set from the same transaction.

SOLAR02 is also used to add training material for each business process along with the end user roles for which it is applicable.

• T Code – STWB_2
This transaction is used for Test Plan Management. It is used during Integration testing. Test plan(s) corresponding to a project are created by this transaction. Based on the test cases defined in SOLAR02, applicable test cases are identified and then a test package is built. This test package is assigned to the end user who is responsible for testing.

STWB_2 can also be used to monitor messages created during testing by users. It also provides a status overview of the test cases. For instance how many have not yet been tested (No Result), how many are in error and how many have been passed (OK).

• T Code – STWB_WORK
This transaction represents the testing workbench. It is used by users responsible for testing the SAP solution. It provides a user specific worklist based on the test package assined in STWB_2. The tester can run the test transaction from this workbench and then update the test status like No Result or Error or OK. If required, the tester can also create a message and assign to another person, for a particular test from this transaction. The progress of these messages can then be monitored using STWB_2.

• T Code – STWB_SET
This is used to initialize test workbench for testing and to set additional parameters for message handling during testing.

• T Code – SOLAR_LEARNING_MAP
This is used to create a learning map assigned to a project. It is usually in the form of chapters with documents assigned to each chapter. The end users can see this using a browser link and provide their feedback on the training content from the same web page window. This transaction also provides means to analyze end user feedback on training and to monitor the usage of the training link(s) based on the number of hits.

Additional Transactions:

• T Code – SMSY
This is used for system landscape management. The system landscape consists of Logical Components. Logical components include a set of logical systems along with their system roles with the applicable product version.

• T Code – SMSY_SETUP
This transaction is used for system landscape data collection.

• T Code – SOLAR_EVAL
This transaction is used to auto determine upgrade relevant IMG activity and documentation for configuration and business process.

Batch Management

Batch management is used to identify one lot of production from another. This helps in tracking the lots during their life-cycle, as well as recording the unique characteristics of each lot. For instance, the expiry date or date of production of 2 lots can be different.

Batch Management can be applied to both process and discrete manufacturing industry. It is tightly integrated with all business processes viz., procurement, manufacturing, sales and inventory management. Some of the prominent functionalities supported as part of standard SAP batch management process are as under:
• Batch Specification / Classification - Classes can be defined for a batch and characteristic values can be entered accordingly.
• Auto Batch Creation – Batches can be configured to be automatically created as part of certain standard SAP processes.
• Batch Determination - This provides an automatic batch search technique based on pre-defined criteria. It is useful during Goods Issue and SAP condition technique is used to configure this. It also helps in searching for batches using specifications.
• Batch Status - it specifies whether the batch is active, can be used further etc.

Configuration Steps:

Step 1 – Click on the link below “specify batch level and activate status management”.



The first setting is, at what level the batch number should be unique. The default setting is as below,

The advantage of having batch unique at material level is, the batch number remains consistent during stock transfer between different plants. Next the batch status management is activated,

The node “initial status of a new batch” allows to set the status as “restricted” when a new batch is created. If there is no check mark against “initial status” as shown in the figure below, the stock remains unrestricted. This setting is at material type level. The check box may not be required to be set in case Quality Management is active. With QM, the stocks are anyways inspected, so putting them into restricted would increase one more step of bringing them from restricted to quality inspection stock.

The node “plants with batch status management” will be required if batch level is at plant level.

Step 2 – Activate batch number assignmentThe batch number can be internally assigned or externally assignment. Depending upon the business requirement, it can be configured.

Step 3 – Creation of new batchesThe new batches can be created automatically by the system or manually vide transaction code MSC1N. To create batches automatically during certain transactions / movement types, follow the path to the following node in configuration:

The node "define batch creation for production order / process order", allows you to configure for a combination of plant and production scheduling profile. It specifies whether a batch is created automatically at production order creation or production order release or no batch creation at all. Similarly “batch creation for goods movement” controls the batch creation for each movement type. The next node controls the batch creation for each material type, as shown below.

Step 4 – Batch ValuationThis step is used to maintain batch characteristic values while creating batches in the background (automatically) or manually in the foreground. Batch characteristics are also useful when batch determination functionality is required during goods issue. The batch anyways inherits the material characteristics / class for which it is created.

Step 5 – Batch DeterminationIt uses the standard sap access sequence search strategy. Over here, strategy type is like condition type in pricing. The following screen shows how to set it up.

Click on the above node and the list of existing strategy types will appear.

A new strategy type can be created here, preferably a copy of one of the existing strategy type. These strategy types are then used in “Batch search procedure definition” as shown below.

The batch search procedure configured above, now needs to be allocated to IM movement types.

Step 6 – Define Sort RulesThis step determines, as the name suggests, a rule is created to sort the batches during batch determination. This sorting happens based on the characteristics defined for the batch.

Step 7 – Master Data SettingIn material master, “batch management” indicatory needs to be set if the material is to be handled in batches.

The condition type / strategy type for batch determination needs to be maintained. The T Code for the same is MBC1.

The key combination displayed above (for T Code MBC1) is as per the access sequence configured under “batch determination and batch check”.

Shelf Life Expiration Date Check:

This can be enabled as per the node below.

The system allows the date check to be activated at Plant Level and at Movement Type Level.

Logistics Invoice Verification

Logistics invoice verification is the final step in procure to pay cycle. It begins with the vendor submitting the invoice for the goods sold. The Accounts Payable group, after receiving the invoice from the vendor, enters it in SAP. Based on the Purchase Order details, Goods Receipt, invoice data and configuration settings, the system prompts the user with messages. The user then takes one of the following action:
• Park / Save the invoice
• Post the invoice

Park / Save the invoice allows user to make changes later on, so that it can be posted. Once posted, the invoice is released to accounting for payment. Under certain circumstances, depending upon the configuration, the invoice can get blocked upon posting. It means that until the block is removed from the invoice document, it will not be released to accounting for payment. There is an alternative way to carry out Logistics Invoice Verification. The process is called Automatic Settlement or Evaluated Receipt Settlement (ERS). In this process, instead of vendor submitting the invoice for payment, the company creates an invoice document (based on the purchase order and goods receipt). This document is then used as the basis for payment by the accounting team.

Frequently used transactions:
MIRO - Enter Invoice
MIR7 - Park Invoice
MIR4 - Display Invoice Document
MR8M - Cancel Invoice Document
MRBR - Release Blocked Invoices
MIR6 - Invoice Overview Automatic Settlement
MRRL - Evaluated Receipt Settlement (ERS)

Invoice BlockingInvoice is blocked either by the system automatically or manually. The reason for blocking is usually a high variance between the PO data and Goods Receipt data as compared to the details mentioned in the invoice document. If an invoice is blocked, all the items are blocked; even if the block is applicable to a particular line item. Invoice block needs to be removed on time particularly if the invoice includes a cash discount. Delay in releasing the invoice may cause expiry of cash discount, if applicable. The most common variances which are encountered during invoice processing are:
• Quantity VarianceThis generally relates to the difference between quantity received and invoiced by vendor. Or quantity in the purchase order and invoiced by the vendor.
• Price VarianceThis refers to the variance of per unit price as compared to the purchase order.
• Schedule VarianceThis is generally invoked if the date of invoice entry is earlier than the delivery date in the purchase order.

The variances can be configured and activated as per the company posting rules. Setting up these variances helps in two ways. It allows the invoices with minor differences to go through so that a lot of time is not wasted on small differences. At the same time, these variances stop invoices from financial payment when the difference exceeds company standards thereby providing a strong control in the process. There is a different kind of block, 'stochastic block' which is sometimes implemented by the Accounts Payable group. It means that certain invoices will be blocked for payment at random, so that they can be checked again. There will be no particular reason for blocking and the block will not be at any line item level. If it is set, there will be an "R" in the payment block field in document header data. It is usually based on 'threshhold value' and 'probability'.

Configuration Setting for Tolerance Limits:
Tolerances are defined in customizing to configure which variance to be accepted and which one to be blocked. Tolerance limit for invoice block is set at company code level. The Tolerance limit for each company code is specified here for each Tolerance Key.

The following screen shows how to set it up for tolerance key “PP” – Price Variance. It says that tolerance key PP is active for company code 2600 and the lower limit for tolerance is 5% and upper limit is $ 100.
There are also situations when the invoice, though within tolerance, is entered with a large amount. It is then recommended to block the invoice to check the amount. It can also be applicable to cases when invoices do not refer to any purchase order. To activate this check, tolerance key “AN” - Amount for item without order reference and “AP” - Amount for item with order reference, need to be configured. Subsequently the following node “Activate Item Amount Check” needs to be activated.

Configuration Setting for Stochastic Block:

In the step "Activate Stochastic Block", stochastic block is activated at company code level for desired company codes. The next step is "Set Stochastic Block" and here "threshold value", "currency" and "percentage" is entered to set the stochastic block on invoices. If the invoice value exceeds threshold value, based on the percentage (probability) block will be set on the invoices. If the invoice value is lower than the threshold value, the percentage (probability) gets reduced in proportion to the invoice value and accordingly a block is set on the invoices.

Example
Threshold value: $6000 Percentage: 50

Invoice value	Percentage or probability of a block
$7000	50 %
$8000	50 %
$3000	25 % (= 3000/6000 * 50)
$300	2.5 % (= 300/6000 * 50)

Releasing Blocked Invoices
The invoice block needs to be removed before any payment can be processed for the vendor. To remove the block, invoices can be released individually, collectively and automatically.
T Code - MRBR
Process
• Enter the selection criteria to select the desired invoices for processing.
• Process the invoice list by removing individual blocking reasons. This could be a result of workflow between buyer and Accounts Payable specialist.
• The invoice is then released, either by the buyer or the Accounts Payable resource.

What is SAP R/3

SAP in English stands for Systems Applications and Products in Data Processing. "R" in R/3 represents Real Time Integration and “3” stands for 3 tier architecture.

SAP allows an enterprise to integrate all their business operations in one system for Planning , Controlling, and Monitoring. The SAP R/3 system consists of application modules that support business transactions and are integrated real-time. Because of integration, a change in one application module will result in an automatic update of the data in the other application modules involved. All application modules have common architecture and user interface. In other words, a person familiar with one module, will have little difficulty in understanding other SAP modules. The SAP screens in general, across modules, have same “look & feel” and navigation.

Some of the commonly used SAP R/3 application modules are:

• Financial accounting and Controlling (FICO)
• Materials management (MM)
• Sales and Distribution (SD)
• Production Planning & Control (PP)
• Asset management (AM)
• Project system (PS)
• Human resources (HR)
• Plant maintenance (PM)
• Quality management (QM)
• Warehouse Management (WM)

SAP also has Industry Solutions which combine the SAP R/3 framework and application modules alongwith additional industry-specific functionalities. Special processes, techniques and modules have been developed for almost all different industry types such as oil and gas, mining, pharmaceuticals, retail, banking etc. which makes SAP relevant for all kinds of businesses.

What is an ERP

ERP stands for Enterprise Resource Planning. The word enterprise means a business, a company or an industry, all its processes and functions in entirety. Resources stand for people, raw material, finished goods, capacity, factory, money etc. of the said industry or business. In any organization there is usually a constraint on resources; Planning therefore represents the activity of utilizing resources to the extent possible so as to maximize the enterprise benefits.

ERP is business support software which is used enterprise wide. It captures all the enterprise processes across all functional tracks in one single data base. Entire organization runs on one software.

ERP solutions have a modular structure. Each of the business functional tracks is usually represented by a separate module. For instance, Materials Management, Human Resources, Finance and Controlling, Sales and Distribution, Transportation Management are separate modules in an ERP solution.

ERP – Characteristics

• All data available in central database. It is updated and available real-time.
• One point entry of data
• Best business practices inbuilt
• Modular system. This enables to implement only required functions. Other functions can be integrated later.
• Transparency and Control to extent required
• Managers can utilize more time in analysis and less in coordination

ERP Vendors
There are several vendors which provide ERP solution. Some of the leading ones are as under,

• SAP
• Oracle Applications
• Microsoft Dynamics
• The Sage Group
• Ramco Systems etc.

SAP is the market leader in ERP solutions. Its closest competitor is Oracle Applications which stands as a distant second to SAP.