1.

Specify Batch Level

Menu Path Enterprise Structure--> Logistics General--> Batch Management -->
Specify batch level and activate batch status management Transaction OMCT

2. Batch Number - Activate Internal Number Assignment

Menu Path Enterprise Structure--> Logistics General--> Batch Management -->
Batch Number Assignment --> Activate internal batch number assignment
Transaction OMCZ

3. Batch Creation - for Goods Movements

Menu Path Enterprise Structure--> Logistics General--> Batch Management -->
Creation of new batches --> Define batch creation for goods movements
Transaction

4. Characteristic Value Assignment -- Update Standard Characteristics

Menu Path Enterprise Structure--> Logistics General--> Batch Management -->
Characteristic Value Assignment --> Update Standard Characteristics Transaction

5. Activate Batch Classification for Goods Movements in Inventory Management

Menu Path Enterprise Structure--> Logistics General--> Batch Management -->
Characteristic Value Assignment --> Valuation for goods movements --> Activate
Batch Classification for goods movements in Inventory Management Transaction
OMCV

6. Batch Determination – Batch Search Procedure

Menu Path Enterprise Structure--> Logistics General--> Batch Management -->
Batch Determination & Batch Check --> Define IM Search Procedure Transaction
OMCY

7. Batch Determination – Batch Search Procedure Allocation

Menu Path Enterprise Structure--> Logistics General--> Batch Management -->
Batch Determination & Batch Check --> Allocate IM search procedure/activate check
Transaction OMCG

8. Batch Determination – Make Settings for Batch Where-used list

Menu Path Enterprise Structure--> Logistics General--> Batch Management -->
Make Settings for Batch Where-used list Transaction OMBB
Batch - A batch is a quantity of the material produced during a
given production run. A batch represents a homogeneous unit
with unique specifications. A Batch is a subset of the total
quantity of a material held in stock. The subset is managed from
all other subsets of the same material.

Depending on the plant, material and operational levels we can

choose the level at which you want the batch number to be
unique. The material number is unique at the client level.
However, the uniqueness of the batch number can be defined at
the following levels -

• In combination with the material and plant

• In combination with a material number

• At the client level

If the Batch level is set to Plant/Material in your system, the

following applies:

• The batch number can be reassigned for a material with a

different specification in each plant.

• However, you can transfer a stock from one plant to another

between batches with the same number, even though the
batches do not necessarily have the same specification. In
such cases, the batch quantity transferred assumes the
specification of the destination batch.

• If you want the batch specification to be unique across all

plants, you can only achieve this through organizational
measures. The system does not support this. In this case,
you are recommended to switch to a higher batch level.

If the Batch level is set to Material in your system, the following

applies:
 • A batch has the same specification for all plants at which a
material is stored.

• The same batch number can be reassigned with a different

specification for each material.

If the Batch level is set to Client in the system:

• The same batch number can only be assigned once within

the entire client.

• It is uniquely assigned to one material number.

Batch Determination

• Batch determination can be used in the following functions:

- Goods movement
- Production/process order
- Sales order/delivery
- Transfer order
Following settings/ configuration need to be done for
automatic batch determination in the above functions -

• The Activities that need to be performed are -

Batch Determination & Batch Check
1) Condition Tables
2) Access Sequences
3) Strategy Types
4) Batch Search Procedure Definition
5) Batch Search Procedure Allocation and Check Activation
6) Define Selection Classes
7) Define Sort Rules

• Pre-Requisites: Batch Management should be active. Here

we will deal with more on Inventory management

• 1. Condition Tables
• Path - SPRO à Logistics - Generalà Batch
Management à Batch Determination and Batch
Check à Condition Tables à Define Inventory Management
Condition Tables

• Define Inventory Management Condition Tables -

• In this IMG activity, you define condition tables for batch

determination in Inventory Management.

• Create Condition table with fields as required

• 2. Access Sequences

• Path - SPRO à Logistics - Generalà Batch

Management à Batch Determination and Batch
Check à Access Sequences à Define Inventory Management
Access Sequences

• Create an Access Sequence

• 3. Strategy Types

• Path - SPRO à Logistics - Generalà Batch

Management à Batch Determination and Batch
Check à Strategy Types à Define Inventory Management
Strategy Types

• Create a strategy type

• 4. Batch Search Procedure Definition

• Path - SPRO à Logistics - Generalà Batch

Management à Batch Determination and Batch
Check à Batch Search Procedure Definition à Define
Inventory Management Search Procedure

• Define Inventory Management Search Procedure

• Create a Search procedure

• 5. Batch Search Procedure Allocation and Check
Activation

• Path - SPRO à Logistics - Generalà Batch

Management à Batch Determination and Batch
Check à Batch Search Procedure Allocation and Check
Activation à Allocate IM Search Procedure/Activate Check.

• Allocate IM Search Procedure/Activate Check

• 6. Define Selection Classes

• Path - SPRO à Logistics - Generalà Batch

Management à Batch Determination and Batch
Check à _Define Selection
Classes _Classes Batch_Select used in Strategy types are
created here.

• Class type - 022 or 023

• 7. Define Sort Rules

• Path - SPRO à Logistics - Generalà Batch

Management à Batch Determination and Batch
Check à Define Sort Rules

• Sort Rule Batch Sort used in Strategy types are created here.

• The Class should be added to material in the Classification

View and the material should be Batch Managed.

• And using MBC1 with the strategy type defined, add the
material for which the sorting should be applicable.

Rama_namuri@yahoo.co.in- 9985391281/9985465620/040-24417283
Units of Measure

Use

The system distinguishes between the following units of measure:

· Base unit of measure

This is the unit of measure in which the stocks of a material are managed.
The system converts all quantities entered in other units to the base unit of
measure.

· Alternative units of measure

Individual departments may have their own units of measure. For example,
Purchasing may use a different unit than Sales or Warehouse Management
(WM). All units of measure other than the base unit of measure are referred
to as alternative units of measure. The system supports the following
alternative units of measure:

¡ Order unit

Allows a material to be ordered in a unit differing from the base unit of

measure. The order unit is proposed automatically in purchasing functions,
where it can be changed.

¡ Sales unit

Allows a material to be sold in a unit differing from the base unit of measure.
The sales unit is proposed automatically in the sales order, where it can be
changed.

¡ Unit of issue

Unit of measure in which the material is issued from the warehouse. It

allows consumption, stock transfers, transfer postings, and physical
inventories to be recorded in a unit differing from the base unit of measure
and from the stock keeping unit.

¡ WM unit
Unit of measure in which materials are managed in Warehouse Management.
For inventory management, the system converts the quantities entered in
the WM unit to the base unit of measure. For example, if a material is
normally managed using pieces as the base unit of measure, but several
thousand pieces are contained in a box, it may be more appropriate to
define a WM unit that is more manageable for WM purposes.

The relationship between the base unit of measure and alternative units of
measure is illustrated below:

Prerequisites

All material data is updated in the base unit of measure. Choose this unit
carefully since an exact quantity can be expressed in an alternative unit of
measure only if its value can be shown with decimal places. It is therefore
important to observe the following two principles when defining the base
unit of measure:

· The base unit of measure is the unit that provides the maximum
precision necessary.

· Conversion from an alternative unit of measure to the base unit of

measure should result in a simple decimal, not a recurring (or repeating)
decimal.
Features

Units of Measure Groups

A units of measure group contains several alternative units of measure and

the factors for converting them to the base unit of measure. You can define
groups of this kind in Customizing for the Material Master in Group Together
Units of Measure. When entering alternative units of measure, you can save
time by specifying a units of measure group rather than entering the same
alternative units of measure individually.

Use of Invoice Plan in SAP

What is significance of invoice plan and how do we configure in R/3?

Through the use of Invoicing Plan for leasing agreements and such like, you aims to
considerably reduce the manual data entry effort in the purchasing and invoice
verification (A/P) department.

The invoicing plan enables you to schedule the desired dates for the creation of
invoices relating to the planned procurement of materials or services independently of
the actual receipt of the goods or actual performance of the services. It lists the dates
on which you wish to create and then pay the invoices.

You can have the system create the invoices automatically on the basis of the data in
the purchase order, thereby triggering payment of the vendor. It is also possible to
enter the invoice for an invoicing plan manually. It is recommended that the invoice
shall be created via Logistics Invoice Verification ---> Automatic Settlement
--->Invoicing Plan Settlement. This
transaction can also run in the background.

Following are necessary customizing and preconditions for using the Invoicing Plan
functionality in SAP -

1) You must maintain the settings in Customizing for purchasing (for example,
invoicing plan type, date categories, date descriptions, and date sequence proposals).
The related path is IMG ---> Material Management ---> Purchasing ---> Purchase
Order ---> Invoicing Plan ......
2) The Purchasing document with FO Document Type (Framework Order) must be
used. This document type requires that a validity period be entered in the PO header.
This specification is adopted in the invoicing plan, provided that this has been
predefined in Customizing for the relevant invoicing plan type.

3) The purchase order item must have an account assignment.

4) The Logistics Invoice Verification must be used.

5) The vendor must have agreed to use the automatic invoice creation facility (since
we will use automatic settlement to create the invoice). In this case, the
'AutoEvalGRSetmtDel.' indicator must be flagged in the vendor master record.

Furthermore, once Purchase Order is created with order type FO, ensure that the
indicators for GR/IR control have been set correctly on the item detail screen. The
Goods Receipt indicator may only be set in combination with the Goods Receipt Non-
Valuated indicator. The Invoice indicator must be set. For the automatic creation of
invoices, the ERS (Evaluated Receipt Settlement) indicator must be also set. A further
prerequisite for automatic settlement is that a tax code must be entered in the purchase
order.

Creating an Invoicing Plan

The following procedure describes how to create an invoicing plan with the pre-Enjoy ordering
transactions (ME21, ME22, ME23).

The procedure described is also applicable – with certain restrictions – to

the Enjoy purchase order (ME21N, ME22N, ME23N).

If you are using the Enjoy purchase order, you will find:

• The Invoicing plan button and the indicators for GR-based invoice verification (GR-
based IV), service-based invoice verification (Srv.-based IV), evaluated receipt
settlement (ERS), and invoice receipt (Inv. receipt) among the item details on
the Invoice tab page.
• The account assignment among the item details on the Account Assignment tab page.
• The Goods receipt and GR non-valuated indicators among the item details on
the Delivery tab page.

Prerequisites

Vendor Master Record

Before you can use the invoicing plan with automatic settlement, the Evaluated receipt
settlement delivery indicator must be set on the Purchasing Data screen in the vendor master
record.
(If you wish to enter invoicing dates manually, this is not necessary.)

Purchase Order

• SAP recommends using order type FO (framework order), i.e. a purchase order with a
predefined extended validity period and a "reason for cancellation". The invoicing plan
can adopt the validity period specified in the PO header.
• PO items for which you wish to use an invoicing plan must have account assignment
irrespective of whether a material with a master record, a material described by a short
text, or an external service is involved.
• The GR/IR control facility must be set up in such a way that no goods receipt (or, in the
case of services, no service entry) is expected - only an incoming invoice. If you wish to
have automatic settlement, you must also set the Evaluated receipt settlement indicator.

If you nevertheless wish to allow service entry sheets for the item (e.g. for
information purposes only), you must set the GR non-val. indicator.

Customizing

Under Purchase Order  Invoicing Plan in Customizing for Purchasing, you can maintain data
such as the desired invoicing plan types, date categories, and date descriptions.

Procedure

1. Create a purchase order with the order type FO and an account assignment category.

Click to access the item overview (or the overview of service lines if you
chose item category D for services).

2. Enter the desired material or service, the quantity, and the price.
3. Select the desired item and click Account assignments to access the account
assignment screen. Enter the account assignment for this item.
4. Click to access the item detail screen. Check that the GR/IR control indicators are set
correctly on the item detail screen.

• The indicators GR and GR-based invoice verification or Service-based invoice

verification must not be set.
• IR must be set.
• You must set ERS if you wish to have Evaluated Receipt Settlement.

• If you wish to have service entry sheets purely for information, for example, allow non-
valuated goods receipt (i.e. select the GR non-val and GR indicators).
2. Choose Item → Invoicing plan. A window appears, in which the invoicing plan types
predefined in Customizing are suggested. Choose the desired invoicing plan type and
click Continue.

You can use the following invoicing plan types:

Periodic Invoicing Plan

• If you choose a periodic invoicing plan, you will get the overview of invoicing dates
determined by the system on the basis of the settings in Customizing.
• The invoicing date and the amount to be invoiced are shown for each settlement period
(e.g. month). In the case of the periodic invoicing plan, the amount represents the total
value of the PO item.
• You can change the suggested dates and block individual dates for automatic invoicing if
necessary.
• You can enter the end-date for the invoicing plan.
• With the Dates from and Dates to fields, you can determine that an invoicing plan does
not contain invoicing dates extending over the entire validity period of the purchase order
but only for a certain period within that validity period. (E.g. within a validity period from
1.1. to 12.31, only dates within the period 1.1. to 06.30.)

If you have hitherto generated invoicing plan dates for a certain period,
you can generate further dates up to the validity end date of the
agreement, for example, via Edit  Create dates.

How to generate invoicing plan dates at a later point in time is described

in the section Generating Further Invoicing Plan Dates.

• The In advance indicator allows you to specify whether the invoice is to be created with
regard to a prior or subsequent period. (E.g. at the beginning of February, either in
advance for the month of February or in arrears for the month of January).
• In addition, fields with information on the existing invoicing plan are displayed (e.g. the
calendar upon which the date determination process is based).

Partial Invoicing Plan

• In this case, you wish to schedule the dates for partial invoices relating to a procurement
project yourself. With the partial invoicing plan, there is therefore no automatic date
proposal facility. Instead you are provided with a date overview, in which you can enter
the desired dates manually.
• However, if you wish to have due dates suggested by the system as an entry aid, you
can reference an existing plan when creating a new invoicing plan. Invoicing dates can
then be adopted from the former. The system provides you with date proposals derived
from the reference plan.
• You can flag a date as a date for a down payment in the B (billing/invoicing rule) field.

6. Click to return to the item overview.

 7. Click to save the purchase order item with the invoicing plan.

You can then start the automatic invoice creation process during invoice
verification.

For more information, refer to the section Settlement of Amounts Due Under
Invoicing Plans.

Once assigned to an item, the invoicing plan type (e.g. partial invoicing
plan) cannot be changed. If you wish to assign a different invoicing plan
type, you must delete the item and create a new one

Settlement of Amounts Due Under Invoicing Plans

Use

An invoicing plan enables you to schedule invoice creation over a series of future due dates
independently of individual procurement transactions and the actual receipt of goods or
services. You can inform the vendor when the invoice documents are created. For more
information, refer to Messages in Logistics Invoice Verification.

Automatic Settlement Accounting

As a rule, automatic settlement accounting is used in connection with periodic invoicing plans.

You can have invoices generated in the system and forwarded to Financial Accounting for
payment automatically with respect to PO items for which you have scheduled a series of
invoicing dates in an invoicing plan.

If you have several PO items with invoicing plans in the system (usually providing for invoicing
on different dates), it is advisable to carry out settlement accounting with regard to these plans
on a daily basis.

Procedure

To carry out automatic settlement accounting with respect to invoicing plans, proceed as
follows:

1. Choose Logistics → Materials management → Logistics Invoice Verification → Automatic

settlement → Settle invoicing plan.

2. On the selection screen, enter the following criteria for the invoicing plans in respect of
which settlement is due:

 Company code
  Plant
 Vendor
 Purchasing Document

 Item

You can specify how the invoice documents are to be created:

 Per vendor
 Per purchase order
 Per PO item

3. Start the settlement accounting process either online or in the background.

You can set the Test mode indicator in order to initially simulate the results of settlement
accounting.

After running the settlement accounting program, you get a log listing the invoiced
transactions and drawing your attention to any errors that may have occurred. For more
information on processing the log, refer to the General Application Function of the
SAP List Viewer.

Manual Invoice Creation

You have to create invoices manually in connection with partial invoicing plans if you have no reference
invoicing plan for the system to use as a basis for generating suggested invoicing dates for the plan in
question. For more information, refer to Invoice Verification in Dialog Mode.

Invoicing Plan
Use
The invoicing plan is a facility that allows you to schedule desired invoicing dates for planned
procurements independently of the receipt of the relevant goods or services. It lists the dates on which
you wish to create and then pay the invoices in question.

You do not wait each time for the vendor to submit an invoice for goods supplied or services performed,
but can have invoices created automatically by the system on the basis of the data available in the
purchase order and then release them for payment to the vendor.

The following two types of invoicing plan are available:

• Periodic invoicing plan

• Partial invoicing plan

Periodic Invoicing Plan

The periodic invoicing plan can be used for regularly recurring procurement transactions (e.g. rental,
leasing, or subscriptions).
It facilitates the largely automatic creation and payment of invoices within the framework of the invoice
verification process. The periodic invoicing plan uses evaluated receipt settlement (ERS) program
functionality.

In the case of the periodic invoicing plan, the total value of the PO item is invoiced on each due date.

A monthly sum of $600 is charged for a leased car (represented by an item of a PO). This
sum is invoiced and paid on the last day but one of each month.

In Customizing for Purchasing, you can define whether the dates are to be maintained manually or
whether the system is to suggest invoicing dates according to the specified rules.

Partial Invoicing Plan

The partial invoicing plan can be used for the invoicing of high-cost material or projects involving the
procurement of external services that are to be subject to stage payments (such as plant construction
projects, or the invoicing of individual stages of a building project following completion in each case).

You can also flag due dates in a partial invoicing plan as dates for advance payments.
The amounts corresponding to these dates are then not taken into account in the sum total of the invoice
items because advance payments are set off against later invoices.

In the case of the partial invoicing plan, the total value of the PO item is broken down and spread over the
individual dates of the invoicing plan.

A purchase order item relates to building project no. 1 with a total value of $900,000.
33.3% ($300,000) of the total value is due to be invoiced and paid on completion of the
first phase of construction, a further 33.3% ($300,000) on completion of the second
phase, and the rest ($300,000) following completion and acceptance of the 3rd and final
phase.

In the partial invoicing plan, you wish to maintain the invoicing dates agreed with the vendor yourself.
Therefore there is no system support in the form of date proposals.
However, if you wish to have due dates suggested by the system as an entry aid, you can reference an
existing plan when creating a new invoicing plan. Date proposals can then be adopted from the former.

Integration
When you save the invoicing plan, data is passed on to purchase order commitments, cash management
and cash forecast.

Prerequisites
To be able to work with invoicing plans:

• You must maintain the settings in Customizing for Purchasing, e.g.:

 − Invoicing plan type

− Date categories

− Date descriptions

− Date proposals

• The PO item must have account assignment

• You must use Logistics Invoice Verification

If you wish to use automatic settlement for periodic invoicing plans, automatic invoice creation must be
agreed with your vendor. Eval. receipt sett. must be selected in the vendor master record.

SAP recommends working with the order type FO.

An extended validity period and a "reason for cancellation" are defined in the header of
this type of purchase order. The specified validity period is adopted for the invoicing plan.

If you work with standard purchase orders, you must maintain the date determination
rules accordingly in Customizing, since there is no predefined validity period that can be
adopted in the invoicing plan.