SOURCEING AND PROCUREMENT

&
MATERIAL LEDGER

BALA, RAMACHANDRA RAO

[COMPANY NAME] [Company address]
1. S&P Organization Structure .................................................................................................................. 2
2. Maintain purchasing organization ........................................................................................................ 2
3. Assign purchasing organization to company code................................................................................ 3
4. Create Purchasing group ....................................................................................................................... 4
5. Maintain Purchasing Area ..................................................................................................................... 4
6. Purchase Area Determination............................................................................................................... 5
7. Define Material Groups......................................................................................................................... 5
8. Set Tolerance limits for Price Variance ................................................................................................. 6
9. Set Tolerance limits ............................................................................................................................... 7
10. Define, Copy delete check plant ....................................................................................................... 8
11. Create Location ................................................................................................................................. 9
12. Assign Plant to Company code ........................................................................................................ 10
13. Assign Purchase Organization to Plant. .......................................................................................... 11
14. Assign Standard Purchasing organization to plant ......................................................................... 11
15. Define Attributes of Material types(Standard) ............................................................................... 12
16. Maintain Company codes for Material Management .................................................................... 14
17. Maintain Default values for Tax codes............................................................................................ 14
18. Configure How exchange Rate Differences are treated ................................................................. 15
19. Set Check for Duplicate invoices ..................................................................................................... 16
20. Set Tolerance Limits ........................................................................................................................ 17
21. Define Automatic Status Change .................................................................................................... 18
22. Group Together Valuation Areas .................................................................................................... 19
23. Define Valuation Class .................................................................................................................... 20
24. Create GL accounts ......................................................................................................................... 23
25. Configure Automatic Posting .......................................................................................................... 30
26. Define Tax Accounts........................................................................................................................ 34
27. Create Storage Location .................................................................................................................. 36
 1. S&P Organization Structure

Company
code

Plant 1 Plant 2

Profit Profit
center 1 Center 2

Cost Cost
Center 1 Center 2

2. Maintain purchasing organization

In this step, you set up your purchasing organizations.

From the Materials Management and Purchasing view, the purchasing organization is responsible for all
purchasing activities (including the processing of requests for quotations and purchase orders, for example).
 3. Assign purchasing organization to company code
In this Implementation Guide (IMG) activity, you assign purchasing organizations to company codes.
4. Create Purchasing group

5. Maintain Purchasing Area

 6. Purchase Area Determination

Assign Purchase group and Purchase area to Purchase organization

7. Define Material Groups

8. Set Tolerance limits for Price Variance
9. Set Tolerance limits
10. Define, Copy delete check plant
11. Create Location
12. Assign Plant to Company code
13. Assign Purchase Organization to Plant.

14. Assign Standard Purchasing organization to plant

 15. Define Attributes of Material types(Standard)
TCODE: OMS2
16. Maintain Company codes for Material Management

17. Maintain Default values for Tax codes

 18. Configure How exchange Rate Differences are treated

Once Material ledger is activated currencies are filled

19. Set Check for Duplicate invoices
20. Set Tolerance Limits
21. Define Automatic Status Change
22. Group Together Valuation Areas
 23. Define Valuation Class

Assign Valuation category reference Material

Type
Assign Valuation category reference Material
Type
 24. Create GL accounts
Create gl account : 250000
Create Gl account 250010 Copy of Gl
account : 250000
Create GR/IR Clearing Account 120000
Create Offsetting account for Inventory : 299996
COPY OF 299997
Create Gl account 410000 Consumption of Raw Material
Create Gl account 410010- Price Difference
Create Material scrapping account
25. Configure Automatic Posting
Select WRX – GR/IR Clearing Account
Select PRD- Price Difference
Select GBB : Offsetting entry for Inventory posting
26. Define Tax Accounts
Click Define Procedures
27. Create Storage Location
 28. Material ledger setup

Material ledger is Mandatory for 1709 onwards for creation of Material

In Material ledger we can have 3 types of currencies only

1. Company code currency
2. Group currency
3. Hard currency
In the first block ticked means these currencies are not in use in
CO. Un ticked means these currencies are in use in CO
 29. Assign Currency Types and Define Material Ledger Types

10 Company code currency will be picked by system automatically

Enter other Standard currencies in this screen

This setup shows material ledger valuation at 3 currency level.

30. Assign Material Ledger types to Valuation Area

31. Activate Material Ledger types for Valuation Area

ML is Activated.

32. Check Material Ledger Settings CKM9

IF we activate price determination 3 ML will take document number
from 01 ML update 1000000000 to 1999999999
Cutover Activity

T CODE : CKMSTART
Before referesh

After Referesh
To Get material number length to 40 we have run 2 steps
Save

Tcode; OMSL