CASE STUDY
SAP ERP Configuration Phase II
– Procurement
Product
MOTIVATION
PREREQUISITES
SAP ERP GBI
Release 6.04
You will configure the
enterprise structure and
business processes for
Procurement.
You should be familiar with
navigation in the SAP system.
Revised
6/24/2014
Focus
Procurement
Authors
Simha R. Magal
Stefan Weidner
Tom Wilder
Version
2.23
After setting up the
organization units and
process parameters, you
will create necessary
master data and test the
business process.
It is also recommended that
you have gone through the
financial accounting exercise.
ACKNOWLEDGEMENT
This material was prepared
with the assistance of student
interns at the Seidman ERP
program at Grand Valley
State University and the SAP
Club at CSU Chico as well as
student and research
assistants at SAP UCC
Magdeburg.
Also, thanks to Corrie Fiedler
(Senior Lecturer, Information
& Decision Sciences, Carlson
School of Management,
University of Minnesota) for
her assistance in improving
this exercise.
© SAP AG
Phase II – Procurement
CASE STUDY
Overview and Table of Contents
Enterprise
Structure
Rules and
Parameters
Master Data
Process
Execution
Table of Contents
General Notes and Cautions ...................................................................................................... 1
Part II.1 – Enterprise Structure ................................................................................................... 3
Part II.2 – Rules and Parameters ..............................................................................................15
Part II.3 – Master Data ..............................................................................................................33
Part II.4 – Process Execution ....................................................................................................37
© SAP AG
Phase II – Procurement
CASE STUDY
General Notes and Cautions
Warning: When working with other classmates at the same time in the same transactions within
“SPRO”, tables will tend to lock up and you will only be able to display them. This is due to the fact that
the system does not allow multiple users in the same transaction at the same time. To get passed this
message, simply wait until the current user in the transaction is finished and then proceed.
Attributes: At times, certain attributes or fields may not appear to have the name of them in front of the
user. To display the full name of the attribute or field, simply click within the field and then press the F1
key. This will bring up not only the title of the field, but it will bring up the full description of it to read.
The ## Symbol: When working with other classmates at the same time, you will be assigned your own
unique identifier which is called the ## Symbol or the “Pound Pound” Symbol. This will be your
identifier and is ASSIGNED FOR YOUR OWN USE ONLY!!! Please be cautious about other classmates
attempting to use your identifier whether it is on purpose or not and if you suspect other classmates using
it, inform your professor immediately so that fixes can be made accordingly. For example, if Ashley has
an identifier of 09, Ashley’s company code will be US09.
The Search Tool: At times in this document, the instructions will ask you to search for something to put
in a field. When it does this, simply click on the field itself and click on the icon to the right of it (it looks
like a white square). Clicking on it will bring up another window and you will search from there. You
may also search other field by clicking on the downward arrow that may be on the left or right of the
field. It will bring up a drop down menu that will have options to choose from and click.
Where do I start? : There are three ways to proceed within the SAP system: Using the “SAP Easy
Access” menu, using the “SAP Menu Bar”, and using the “SAP Customizing Implementation Guide”
menu. All three of these are explained below:
1. The SAP Easy Access menu appears when you start a new session.
2. The SAP Menu Bar also appears when you start a new session at the very top of the screen.
3. In the SAP Customizing Implementation Guide, there are two ways you may use to get here:
a. The first is to simply type “SPRO” in the transaction field at the top of the screen.
b. Proceed through the path to get there. The path consists of the following:
(In the main menu of SAP, click on the black arrows on the left of these names) SAP menu ► Tools ►
Customizing ► IMG ► Execute Project (double-click on “Execute Project”)
In the “Customizing: Execute Project” screen, click on the
icon.
Saving: When the instructions to tell you to save data, always press the “Enter” key to validate. If there
are error(s) that occur, they must be corrected before continuing to the next task. You will find errors
from a transaction when there are red icons that appear in the message area. Messages that are yellow
contain warnings and not errors. At times, these must be fixed in order to move on. However, most of the
time, they do not need to be fixed and you can simply enter through them. Green messages are obviously
showing that nothing went wrong with the transaction and that you may proceed to the next task. Set
© SAP AG
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Phase II – Procurement
CASE STUDY
Controlling Area Pop-Up: At times throughout this phase, there will be times when the system asks you
enter your controlling area to clarify which controlling area you are configuring for.
If this should happen, in the “Set Controlling Area” pop-up, enter the following information:
Attribute
Controlling Area
Click on
Description
Uniquely identifies a controlling area.
Data Value
NA##
(CONTINUE (ENTER)).
This will get you into the next screen where the instructions will then tell you what to do for the task.
Enter Chart of Accounts Pop-Up: At times throughout this phase, there will be times when the system
asks you enter your chart of accounts to clarify which chart of accounts you are configuring for.
If this should happen, in the “Enter Chart of Accounts” pop-up, enter the following information:
Attribute
Chart of Accounts
Click on
Description
Key that uniquely identifies a chart of accounts.
Data Value
GL##
(CONTINUE (ENTER)).
This will get you into the next screen where the instructions will then tell you what to do for the task.
Differences in Font: Throughout this phase you will see tables with different fonts used in the Data
Value column. The normal Times New Roman indicates you enter exactly what is typed out except for
the ## Symbol where you would put in your identifier. The italicized Times New Roman font indicates the
data is looked up or found.
Attribute
Times New Roman
Times New Roman
(Italicized)
© SAP AG
Description
Font that tells you to enter what is written.
Font that tells you the data that needs to be
looked up.
Data Value
Times New Roman
Times New Roman
(Italicized)
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Phase II – Procurement
CASE STUDY
Part II.1 – Enterprise Structure
Enterprise
Structure
Rules and
Parameters
Master Data
Process
Execution
Table of Contents
II.1.1: Maintain Purchasing Organization .................................................................................... 4
II.1.2: Assign Purchasing Organization ...................................................................................... 5
II.1.3: Define Plants .................................................................................................................... 6
II.1.4: Maintain Storage Location ................................................................................................ 9
II.1.5: Assign Plants to Company Code .....................................................................................11
II.1.6: Assign Purchasing Organization to Plants .......................................................................12
II.1.7: Create Purchasing Group ................................................................................................13
II.1.8: Group Together Valuation Areas .....................................................................................14
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Phase II – Procurement
CASE STUDY
II.1.1: Maintain Purchasing Organization
Description: You will create a Purchasing Organization (US##) that will eventually be associated
with your Company Code. A Purchasing Organization is responsible for strategic purchasing activities
such as negotiating contracts and developing pricing agreements with GBI’s vendors.
Warning: See “General Notes and Cautions” about table locks.
Navigation: SAP Customizing Implementation Guide ► Enterprise Structure ► Definition ► Materials
Management ► Maintain purchasing organization
Tasks and Data Entry:
In the “Change View “Purchasing Organizations”: Overview” screen, click on the
icon.
In the “New Entries: Overview of Added Entries” screen, enter the following information:
Purch. Organization
US##
Click on
© SAP AG
Purch. Org. Descr.
## GBI US
(SAVE). You will receive a message that says “Data was saved”.
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Phase II – Procurement
CASE STUDY
II.1.2: Assign Purchasing Organization
Description: You will associate your Purchasing Organization (US##) to your Company Code.
A Purchasing Organization is responsible for strategic purchasing activities such as negotiating
vendor contracts and developing pricing agreements. Management decides if these strategic
purchasing activities should be done at the enterprise-level (providing the efficiency of centralization),
or locally (providing local effectiveness). SAP can model three approaches:
1) Enterprise-level: one Purchasing Organization for all Company Codes within the firm;
2) Company-level: one Purchasing Organization for each Company Code within the firm;
3) Plant level: one Purchasing Organization for each plant within a Company Code.
GBI has adopted a company-level model. Your Purchasing Organization (US##) will be associated
with (only) your Company Code.
Warning: See “General Notes and Cautions” about table locks.
Navigation: SAP Customizing Implementation Guide ► Enterprise Structure ► Assignment ►
Materials Management ► Assign purchasing organization to company code
Tasks and Data Entry:
You are in the “Change View “Assign Purchasing Organization -> Company Code”: Overview” screen
Enter the following information:
POrg
Your GBI US
Click on
© SAP AG
Description
## GBI US
CoCd
Your Global Bike Inc.
(SAVE). You will receive a message that says “Data was saved”.
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Phase II – Procurement
CASE STUDY
II.1.3: Define Plants
Description: You will create three GBI plants (Dallas, Miami, and San Diego). Each Plant is located
in the United States and operates within your legal entity (e.g., your Company Code).
An SAP Plant is an organizational element that either holds inventory or is responsible for planning
material. Thus Plants can include not only factories, but also warehouses, distribution centers, service
centers, and offices.
In later steps you will assign your three Plants to your Company Code and configure storage locations
within each Plant.
Warning: See “General Notes and Cautions” about table locks.
Navigation: SAP Customizing Implementation Guide ► Enterprise Structure ► Definition ► Logistics –
General ► Define, copy, delete, check plant
In the “Choose Activity” pop-up, double-click on Define Plant.
Tasks and Data Entry:
In the “Change View “Plants”: Overview” screen, click on the
icon.
In the “New Entries: Details of Added Entries” screen, enter the following information:
Attribute
Plant
Name 1
Factory Calendar
Click on
Description
Key uniquely identifying a plant.
Name
Identifies the factory calendar that is valid for this plant.
Data Value
DL##
## Plant Dallas
USA
(ADDRESS).
In the “Edit address: DL##” pop-up, enter the following information:
Attribute
Title
Name
Search term ½
Street/House Number
Postal Code
City
Country
Region
Description
Possible titles are stored in a check table.
Name of an address.
Short description used for search helps.
Street name as part of the address.
Postal code as part of the address.
City name as part of the address.
The country key contains information which the
system uses to check entries such as the length
of the postal code or bank account number.
Region of the Country
In the “Street Address” part, click on the
Data Value
Company
## Plant Dallas
0##
5215 N. O’Connor Blvd
75039
Dallas
USA
Texas
icon.
Enter the following information:
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Phase II – Procurement
CASE STUDY
Attribute
Description
Tax Jurisdictn
Specifies the tax jurisdiction.
Click on
(ENTER (CONTINUE)).
In the “New Entries: Details of Added Entries” screen, click on the
In the “Edit” pop-up, click on the
Data Value
Texas Jurisdiction Code
icon.
icon. You will receive a message that says “Data was saved”.
In the “New Entries: Details of Added Entries” screen, click on the
icon.
In the “Change View “Plants”: Overview” screen, click on the
icon.
In the “New Entries: Details of Added Entries” screen, enter the following information:
Attribute
Plant
Name 1
Factory Calendar
Click on
Description
Key uniquely identifying a plant.
Name
Identifies the factory calendar that is valid for this plant.
Data Value
MI##
## DC Miami
USA
(ADDRESS).
In the “Edit address: MI##” pop-up, enter the following information:
Attribute
Title
Name
Search term ½
Street/House Number
Postal Code
City
Country
Region
Description
Possible titles are stored in a check table.
Name of an address.
Short description used for search helps.
Street name as part of the address.
Postal code as part of the address.
City name as part of the address.
The country key contains information which the
system uses to check entries such as the length
of the postal code or bank account number.
Region of the Country
In the “Street Address” part, click on the
Data Value
Company
## DC Miami
0##
5341 Blue Lagoon Drive
33126
Miami
USA
Florida
icon.
Enter the following information:
Attribute
Tax Jurisdictn
Click on
Description
Specifies the tax jurisdiction.
(ENTER (CONTINUE)).
In the “New Entries: Details of Added Entries” screen, click on the
In the “Edit” pop-up, click on the
© SAP AG
Data Value
Florida Jurisdiction Code
icon.
icon. You will receive a message that says “Data was saved”.
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Phase II – Procurement
CASE STUDY
In the “New Entries: Details of Added Entries” screen, click on the
icon.
In the “Change View “Plants”: Overview” screen, click on the
icon.
In the “New Entries: Details of Added Entries” screen, enter the following information:
Attribute
Plant
Name 1
Factory Calendar
Click on
Description
Key uniquely identifying a plant.
Name
Identifies the factory calendar that is valid for this plant.
Data Value
SD##
## DC San Diego
USA
(ADDRESS).
In the “Edit address: SD##” pop-up, enter the following information:
Attribute
Title
Name
Search term ½
Street/House Number
Postal Code
City
Country
Region
Description
Possible titles are stored in a check table.
Name of an address.
Short description used for search helps.
Street name as part of the address.
Postal code as part of the address.
City name as part of the address.
The country key contains information which the
system uses to check entries such as the length
of the postal code or bank account number.
Region of the Country
In the “Street Address” part, click on the
Data Value
Company
## DC San Diego
0##
150 Spear Street
94105
San Diego
USA
California
icon.
Enter the following information:
Attribute
Tax Jurisdictn
Click on
Description
Specifies the tax jurisdiction.
(ENTER (CONTINUE)).
In the “New Entries: Details of Added Entries” screen, click on the
In the “Edit” pop-up, click on the
© SAP AG
Data Value
California Jurisdiction Code
icon.
icon. You will receive a message that says “Data was saved”.
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Phase II – Procurement
CASE STUDY
II.1.4: Maintain Storage Location
Description: You will create Storage Locations within your three Plants. Storage Locations (for
example: Raw Material = RM##, Trading Goods = TG##) indicate where material is physically kept.
Storage locations also track the on-hand quantity of each material. There may be one or more storage
locations within a plant. You can assign more than one storage location to the same warehouse
number within a plant. It is possible to store material data specific to a storage location. Stock is
managed only on a quantity basis and not on a value basis at storage location level in the system.
Warning: See “General Notes and Cautions” about table locks.
Navigation: SAP Customizing Implementation Guide ► Enterprise Structure ► Definition ► Materials
Management ► Maintain storage location
Tasks and Data Entry:
In the “Determine Work Area: Entry” pop-up, enter the following information:
Attribute
Plant
Click on
Description
Key uniquely identifying a plant.
Data Value
Your Plant Dallas
(CONTINUE (ENTER)).
In the “Change View “Storage locations”: Overview” screen, click on the
icon.
In the “New Entries: Overview of Added Entries” screen, enter the following information:
SLoc
Description
FG##
MI##
RM##
SF##
## Fin. Goods
## Misc. Goods
## Raw Materials
## Semi-Finished
Click on
(SAVE). You will receive a message that says “Data was saved”.
Click on
(EXIT).
In the “Display IMG” screen, click on the
icon next to Maintain storage location.
In the “Determine Work Area: Entry” pop-up, enter the following information:
Attribute
Plant
Click on
Description
Key uniquely identifying a plant.
Data Value
Your DC Miami
(CONTINUE (ENTER)).
In the “Change View “Storage locations”: Overview” screen, click on the
© SAP AG
icon.
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Phase II – Procurement
CASE STUDY
In the “New Entries: Overview of Added Entries” screen, enter the following information:
SLoc
FG##
MI##
TG##
Description
## Fin. Goods
## Misc. Goods
## Trading Goods
Click on
(SAVE). You will receive a message that says “Data was saved”.
Click on
(EXIT).
In the “Display IMG” screen, click on the
icon next to Maintain storage location.
In the “Determine Work Area: Entry” pop-up, enter the following information:
Attribute
Plant
Click on
Description
Key uniquely identifying a plant.
Data Value
Your DC San Diego
(CONTINUE (ENTER)).
In the “Change View “Storage locations”: Overview” screen, click on the
icon.
In the “New Entries: Overview of Added Entries” screen, enter the following information:
SLoc
FG##
MI##
TG##
Click on
© SAP AG
Description
## Fin. Goods
## Misc. Goods
## Trading Goods
(SAVE). You will receive a message that says “Data was saved”.
Page 10
Phase II – Procurement
CASE STUDY
II.1.5: Assign Plants to Company Code
Description: You will associate your three new Plants to your Company Code. Each Plant can be
associated with exactly one Company Code.
Warning: See “General Notes and Cautions” about table locks.
Navigation: SAP Customizing Implementation Guide ► Enterprise Structure ► Assignment ► Logistics
– General ► Assign plant to company code
Tasks and Data Entry:
You are in the “Change View “Assignment Plant – Company Code”: Overview” screen.
Click on
(NEW ENTRIES).
In the “New Entries: Overview of Added Entries” screen, enter the following information:
CoCd
Your Global Bike Inc.
Your Global Bike Inc.
Your Global Bike Inc.
Click on

Plnt
Your Plant Dallas
Your DC Miami
Your DC San Diego
(SAVE).
If you receive the error “Specify request”, continue because, even though you receive this error, the
data is still saved.
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Phase II – Procurement
CASE STUDY
II.1.6: Assign Purchasing Organization to Plants
Description: You will associate your three Plants to your Purchasing Organization. In previous steps,
you created a Purchasing Organization (US##) and then associated that Purchasing Organization to
your Company Code. In this step, you will associate each of your Plants to that Purchasing
Organization.
GBI manages their contracts and pricing centrally for all US plants through a company-level
Procurement Strategy. Specifically, all the plants within your Company Code (and only your
Company Code) are associated with your Purchasing Organization.
Warning: See “General Notes and Cautions” about table locks.
Navigation: SAP Customizing Implementation Guide ► Enterprise Structure ► Assignment ►
Materials Management ► Assign purchasing organization to plant
Tasks and Data Entry:
In the “Change View “Assign Purchasing Organization”” screen, click on the
icon.
In the “New Entries: Overview of Added Entries” screen, enter the following information:
POrg
Your GBI US
Your GBI US
Your GBI US
Click on
© SAP AG
Plnt
Your Plant Dallas
Your DC Miami
Your DC San Diego
(SAVE). You will receive a message that says “Data was saved”.
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Phase II – Procurement
CASE STUDY
II.1.7: Create Purchasing Group
Description: You will create a Purchasing Group (N##). A Purchasing Group is a buyer (or group of
buyers) who is responsible for day-to-day purchasing activities such as approving Purchase
Requisitions and ordering material. Compare the Purchasing Organization (strategic decisions,
associated with a Plant) with the Purchasing Group (day-to-day operations, associated with a material
or group of materials).
In a later step, you will associate your Purchasing Group to your materials.
Warning: See “General Notes and Cautions” about table locks.
Navigation: SAP Customizing Implementation Guide ► Materials Management ► Purchasing ►
Create Purchasing Groups
Tasks and Data Entry:
In the “Change View “Purchasing Groups”: Overview” screen, click on the
icon.
In the “New Entries: Overview of Added Entries” screen, enter the following information:
Purchasing Group
N##
Click on
© SAP AG
Descr. Pur. Grp
## North America
(SAVE). You will receive a message that says “Data was saved”.
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Phase II – Procurement
CASE STUDY
II.1.8: Group Together Valuation Areas
Description: This is the first of three steps in which you will configure SAP to automatically post
General Ledger transactions associated with the Procure-to-Pay business process.
You will associate each of your three Plants (DL##, MI##, SD##) to Valuation Grouping Code 0001
(note that this Valuation Group Code already exists within your SAP instance). This will insure at a
very high level that your three Plants use similar General Ledger conventions during material
movement transactions.
Warning: See “General Notes and Cautions” about table locks.
Navigation: SAP Customizing Implementation Guide ► Materials Management ► Valuation and
Account Assignment ► Account Determination ► Account Determination Without Wizard ► Group
Together Valuation Areas
Tasks and Data Entry:
You are in the “Change View “Acct Determination for Val. Areas”: Overview” screen, enter the
following information:
Val. Area
DL##
MI##
SD##
Click on
© SAP AG
CoCode
Your Global Bike Inc.
Your Global Bike Inc.
Your Global Bike Inc.
Company Name
## Global Bike Inc.
## Global Bike Inc.
## Global Bike Inc.
Chrt/Accts
Your GBI COA
Your GBI COA
Your GBI COA
Val.Grpg Code
0001
0001
0001
(SAVE). You will receive a message that says “Data was saved”.
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Phase II – Procurement
CASE STUDY
Part II.2 – Rules and Parameters
Enterprise
Structure
Rules and
Parameters
Master Data
Process
Execution
Table of Contents
II.2.1: Determine Tax Version....................................................................................................16
II.2.2: Define Tax Accounts .......................................................................................................17
II.2.3: Configure Automatic Postings .........................................................................................18
II.2.4: Maintain Default Values for Tax Codes ...........................................................................21
II.2.5: Set Tolerance Limits for Price Variance...........................................................................22
II.2.6: Set Tolerance Limits for Goods Receipt ..........................................................................23
II.2.7: Set Tolerance Limits for Invoices ....................................................................................24
II.2.8: Define Tolerances (Vendors)...........................................................................................25
II.2.9: Default Values for Inventory ............................................................................................27
II.2.10: Default Values for Plants ...............................................................................................28
II.2.11: Define Attributes of Material Types ................................................................................30
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Phase II – Procurement
CASE STUDY
II.2.1: Determine Tax Version
Description: You will set the number of tax codes and tax rates that can be associated with a given
vendor (or vendor invoice).
SAP allows up to four different tax codes and tax rates per vendor (and per vendor invoice). In this
step, you limit GBI users to only one tax code and one tax rate per vendor (and per vendor invoice) in
order to minimize screen clutter and improve the user experience.
Note that for the first time we are not using the SAP Customizing Implementation Guide, but are
directly editing a table (T169P) using a simple editor.
Navigation (SAP Menu Bar): System ► Services ► Table Maintenance ► Extended Table Maintenance
Tasks and Data Entry:
In the “Maintain Table Views: Initial Screen” screen, enter the following information:
Attribute
Table/View
Click on
Description
Name of table/view for extended table maintenance.
Data Value
T169P
(MAINTAIN).
In the “Change View “Parameters, Invoice Verification”: Overview” screen, click on the
icon.
In the “New Entries: Details of Added Entries” screen, enter the following information:
Attribute
Company Code
Tax version
Click on
© SAP AG
Description
Organizational unit within financial accounting.
Determines how many different tax rates can be
entered directly on the vendor screen.
Data Value
Your Global Bike Inc.
One tax amount and tax code
(SAVE). You will receive a message that says “Data was saved”.
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Phase II – Procurement
CASE STUDY
II.2.2: Define Tax Accounts
Description: This is the second of three steps in which you will configure SAP to
automatically post General Ledger transactions associated with the Procure-to-Pay business
process.
You will specify the General Ledger account to which Sales Tax (transaction codes = MW1 and VS1)
is accrued. Therefore, when GBI either pays - or receives - Sales Tax, the General Ledger transactions
are made to the correct General Ledger account.
Warning: See “General Notes and Cautions” about table locks.
Navigation: SAP Customizing Implementation Guide ► Financial Accounting (New) ► Financial
Accounting Global Settings (New) ► Tax on Sales/Purchases ► Posting ► Define Tax Accounts
Tasks and Data Entry:
In the “Maintain FI Configuration: Automatic Posting – Procedures” screen, double-click on MW1.
In the “Maintain FI Configuration: Automatic Posting – Rules” screen, click on the
icon.
You will receive a message that says “Changes have been made”.
In the “Maintain Configuration: Automatic Posting – Accounts” screen, enter the following information:
Attribute
Account
Description
General ledger account number.
Data Value
Your Accrued Tax – Output
Click on
(SAVE). You will receive a message that says “Changes have been made”.
Click on
(BACK).
In the “Maintain FI Configuration: Automatic Posting – Procedures” screen, double-click on VS1.
In the “Maintain FI Configuration: Automatic Posting – Rules” screen, click on the
icon.
You will receive a message that says “Changes have been made”.
In the “Maintain Configuration: Automatic Posting – Accounts” screen, enter the following information:
Attribute
Account
Click on
© SAP AG
Description
General ledger account number.
Data Value
Your Accrued Tax– Input
(SAVE). You will receive a message that says “Changes have been made”.
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Phase II – Procurement
CASE STUDY
II.2.3: Configure Automatic Postings
Description: This is the third of three steps in which you will configure SAP to automatically post
General Ledger transactions associated with the Procure-to-Pay business process. Here you will
configure the General Ledger accounts associated with the Procure-to-Pay process steps Create Goods
Receipt and Invoice Verification.
For example, when Raw Materials (Valuation Class = 3000) are received (Transaction Key = BSX)
financial transactions will post to the Inventory-Raw Materials General Ledger account.
You will notice that we are also designating General Ledger accounts for posting a variety of
transactions that are usually the result of small differences (e.g., differences between the Goods
Receipt and the Vendor Invoice amounts).
Warning: See “General Notes and Cautions” about table locks.
Navigation: SAP Customizing Implementation Guide ► Materials Management ► Valuation and
Account Assignment ► Account Determination ► Account Determination Without Wizard ► Configure
Automatic Postings
Tasks and Data Entry:
In the “Automatic Posting” screen, click on the
icon.
In the “Maintain FI Configuration: Automatic Posting – Procedures” screen, double-click on BSX.
In the “Maintain FI Configuration: Automatic Posting – Rules” screen, enter the following information:
Attribute
Valuation modif.
Valuation class
Click on
Description
Adds this attribute to Automatic Posting – Accounts screen
Adds this attribute to Automatic Posting – Accounts screen
Data Value
Selected
Selected
(SAVE). You will receive a message that says “Changes have been made”.
You are in the “Maintain FI Configuration: Automatic Posting – Accounts” screen.
Enter the following information:
Valuation modif.
0001
0001
0001
0001

Valuation class
Raw materials 1
Trading Goods
Finished products
Semifinished products
Account
Your Inventory-Raw Materials
Your Inventory-Trading Goods
Your Inventory-Finished Goods
Your Inventory-Semi-finished Goods
Use the accounts WITHOUT Direct Post.
Click on
(SAVE). You will receive a message that says “Changes have been made”.
Click on
(BACK).
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Phase II – Procurement
CASE STUDY
In the “Maintain FI Configuration: Automatic Posting – Procedures” screen, double-click on DIF.
In the “Maintain FI Configuration: Automatic Posting - Rules” screen, click on the
icon.
You will receive a message “Changes have been made”.
You are in the “Maintain FI Configuration: Automatic Posting – Accounts” screen.
Enter the following information:
Attribute
Account
Description
The general ledger account number identifies the
general ledger account in a chart of accounts.
Data Value
Your Purchase Price Difference
Click on
(SAVE). You will receive a message that says “Changes have been made”.
Click on
(BACK).
In the “Maintain FI Configuration: Automatic Posting – Procedures” screen, double-click on PRD.
In the “Maintain FI Configuration: Automatic Posting – Rules” screen, enter the following information:
Attribute
Valuation modif.
Valuation class
Click on
Description
Adds this attribute to Automatic Posting – Accounts screen
Adds this attribute to Automatic Posting – Accounts screen
Data Value
Selected
Selected
(SAVE). You will receive a message that says “Changes have been made”.
You are in the “Maintain FI Configuration: Automatic Posting – Accounts” screen.
Enter the following information:
Valuation modif.
0001
0001
0001
Valuation class
Raw Materials 1
Operating supplies
Trading goods
Account
Your Purchase Price Difference
Your Purchase Price Difference
Your Purchase Price Difference
Click on
(SAVE). You will receive a message that says “Changes have been made”.
Click on
(BACK).
In the “Maintain FI Configuration: Automatic Posting – Procedures” screen, double-click on WRX.
In the “Maintain FI Configuration: Automatic Posting – Rules” screen, enter the following information:
Attribute
Valuation modif.
Valuation class
© SAP AG
Description
Adds this attribute to Automatic Posting – Accounts screen
Adds this attribute to Automatic Posting – Accounts screen
Data Value
Selected
Selected
Page 19
Phase II – Procurement
Click on
CASE STUDY
(SAVE). You will receive a message that says “Changes have been made”.
You are in the “Maintain FI Configuration: Automatic Posting – Accounts” screen.
Enter the following information:
Valuation modif.
0001
0001
0001
0001
0001
Click on
© SAP AG
Valuation class
Raw Materials 1
Operating supplies
Trading goods
Finished products
Semifinished products
Account
Your Goods Receipt / Invoice Receipt Account
Your Goods Receipt / Invoice Receipt Account
Your Goods Receipt / Invoice Receipt Account
Your Goods Receipt / Invoice Receipt Account
Your Goods Receipt / Invoice Receipt Account
(SAVE). You will receive a message that says “Changes have been made”.
Page 20
Phase II – Procurement
CASE STUDY
II.2.4: Maintain Default Values for Tax Codes
Description: You will specify the default value for the tax code to be used during the Invoice
Verification process. GBI personnel will be more efficient during Invoice Verification process since
the correct tax code is defaulted into their screen.
Warning: See “General Notes and Cautions” about table locks.
Navigation: SAP Customizing Implementation Guide ► Materials Management ► Logistics Invoice
Verification ► Incoming Invoice ► Maintain Default Values for Tax Codes
Tasks and Data Entry:
You are in the “Change View “Tax Defaults in Invoice Verification”: Overview” screen.
Click on
(NEW ENTRIES).
In the “New Entries: Details of Added Entries” screen, enter the following information:
Attribute
Company Code
Tax Code (Defaults,
domestic)

Description
Organizational unit within financial accounting.
A tax category which must be taken into consideration
when making a tax return to the tax authorities.
After inputting your Company Code press
Click on
© SAP AG
Data Value
Your Global Bike Inc.
Input Tax
(ENTER) to sort Tax Code by Procedure.
(SAVE). You will receive a message that says “Data was saved”.
Page 21
Phase II – Procurement
CASE STUDY
II.2.5: Set Tolerance Limits for Price Variance
Description: This is the first of four steps in which you set tolerances for different quantity and price
variances that can occur during GBI’s Procure-to-Pay business process.
In this first step, you set tolerance limits to be used when GBI sends a Purchase Order (PO) to a
Vendor. Specifically, when GBI sends a Purchase Order, management wants to validate that the
Purchase Order price for each material is close to the price on the material master record.
You will set a tolerance that the PO price can be 20% less or 10% more than the price on the material
record.
Warning: See “General Notes and Cautions” about table locks.
Navigation: SAP Customizing Implementation Guide ► Materials Management ► Purchasing ►
Purchase Order ► Set Tolerance Limits for Price Variance
Tasks and Data Entry:
In the “Change View “Tolerance Limits”: Overview” screen, click on the
icon.
In the “New Entries: Details of Added Entries” screen, enter the following information:
Attribute
Tolerance key
Company Code
Lower limit Percentage Check limit
Lower limit Percentage Tolerance limit %
Upper limit Percentage Check limit
Upper limit Percentage Tolerance limit %
Click on
Description
Determines which tolerance
limits are checked.
Organizational unit within
financial accounting.
Checks if the tolerance
limit has been adhered to.
A maximum permissible
percentage variation.
Checks if the tolerance
limit has been adhered to.
A minimum permissible
percentage variation.
Data Value
Price variance: purchasing
Your Global Bike Inc.
Selected
20
Selected
10
(NEXT ENTRY).
Enter the following information:
Attribute
Tolerance key
Company Code
Click on
© SAP AG
Description
Determines which tolerance
limits are checked.
Organizational unit within
financial accounting.
Data Value
Max. cash disc. deduction (purchasing)
Your Global Bike Inc.
(SAVE). You will receive a message that says “Data was saved”.
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Phase II – Procurement
CASE STUDY
II.2.6: Set Tolerance Limits for Goods Receipt
Description: This is the second of four steps in which you set tolerances for different quantity and
price variances that can occur during GBI’s Procure-to-Pay business process.
In this step, you set tolerance limits to be used when GBI receives material against a Purchase Order.
Specifically, management wants to validate that the:


quantity received by GBI is close to the quantity on the Purchase Order; and
goods receipt price is close to both the PO price and the moving average price for this
material.
Warning: See “General Notes and Cautions” about table locks.
Navigation: SAP Customizing Implementation Guide ► Materials Management ► Inventory
Management and Physical Inventory ► Goods Receipt ► Set Tolerance Limits
Tasks and Data Entry:
In the “Change View “Tolerance Limits”: Overview” screen, click on the
icon.
In the “New Entries: Details of Added Entries” screen, enter the following information:
Attribute
Tolerance key
Company Code
Click on
Description
Determines which limits are checked.
Organizational unit within accounting.
Data Value
Order price qty variance (GR)/E-MSG
Your Global Bike Inc.
(NEXT ENTRY).
Enter the following information:
Attribute
Tolerance key
Company Code
Click on
Description
Determines which limits are checked.
Organizational unit within accounting.
Data Value
Order price qty variance (GR)/W-MSG
Your Global Bike Inc.
(NEXT ENTRY).
Enter the following information:
Attribute
Tolerance key
Company Code
Click on
© SAP AG
Description
Determines which tolerance limits are checked.
Organizational unit within financial accounting.
Data Value
Moving average price variance
Your Global Bike Inc.
(SAVE). You will receive a message that says “Data was saved”.
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Phase II – Procurement
CASE STUDY
II.2.7: Set Tolerance Limits for Invoices
Description: This is the third of four steps in which you set tolerances for different quantity and price
variances that can occur during GBI’s Procure-to-Pay business process.
In this step, you set tolerance limits to be used when GBI receives the Vendor Invoice. Specifically,
management wants to validate that the Vendor Invoice price and quantity are close to those on:


the original Purchase Order, and
the Good Receipt transaction
This allows GBI to ensure that they are invoiced the appropriate amount for each Purchase Order.
Warning: See “General Notes and Cautions” about table locks.
Navigation: SAP Customizing Implementation Guide ► Materials Management ► Logistics Invoice
Verification ► Invoice Block ► Set Tolerance Limits
Tasks and Data Entry:
In the “Change View “Tolerance Limits”: Overview” screen, click on the
icon.
In the “New Entries: Details of Added Entries” screen, enter the following information:
Attribute
Tolerance key
Company Code
Click on
Description
Determines which limits are checked.
Organizational unit within accounting.
Data Value
Amount for item without order reference
Your Global Bike Inc.
(NEXT ENTRY).
You have just created the Tolerance Key for an “amount for item without order reference” in the steps
above. Appendix D contains data about all of the Tolerance Keys in GBI. Use the data in appendix D to
create the remaining Tolerance Keys.

You may receive an error saying a certain tolerance key already exists. Simply skip that key and
move on.
Click on
© SAP AG
(SAVE). You will receive a message that says “Data was saved”.
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Phase II – Procurement
CASE STUDY
II.2.8: Define Tolerances (Vendors)
Description: This is the fourth of four steps in which you set tolerances for different quantity and
price variances that can occur during GBI’s Procure-to-Pay business process.
In this step, you set default tolerance limits to be used when GBI Pays a Vendor. Specifically,
management wants to specify a default Vendor Tolerance (## GBI Default) to validate that:


payment shortfalls of up to $10 (or 1%) are automatically posted to a designated revenue
account.
payment excess of up to $1 (or 1%) is automatically posted to a designated expense account.
Tolerance Groups can be assigned to specific Vendors to allow more – or less – tolerance in the Pay
Vendor step.
Warning: See “General Notes and Cautions” about table locks.
Navigation: SAP Customizing Implementation Guide ► Financial Accounting (New) ► Accounts
Receivable and Accounts Payable ► Business Transactions ► Outgoing Payments ► Manual Outgoing
Payments ► Define Tolerances (Vendors)
Tasks and Data Entry:
In the “Change View “Customer/Vendor Tolerances”: Overview” screen, click on the
icon.
In the “New Entries: Details of Added Entries” screen, enter the following information:
Attribute
Company Code
Tolerance group
Name of Tolerance Group
Gain Amount
Gain Percent
Loss Amount
Loss Percent
Payment Term from Invoice
Only grant partial cash disc.
Click on
© SAP AG
Description
Organizational unit within accounting.
Group for customers and vendors, or accounts.
Name of Tolerance Group
Payment differences to our advantage are
allowed up to the amount entered here.
Differences when settling payments are posted
automatically by the system up to this rate.
Payment differences to our disadvantage are
allowed up to the amount entered here.
Differences when settling payments are posted
automatically by the system up to this rate.
Indicates terms of payment are to be
transferred from the original item for residual.
Indicates partial cash discount is granted when
clearing invoices if an outstanding receivable is
posted due to insufficient payment.
Data Value
Your Global Bike Inc.
Leave Blank
## GBI Default
10
1
1
1
Selected
Selected
(NEXT ENTRY).
Page 25
Phase II – Procurement
CASE STUDY
Enter the following information:
Attribute
Company Code
Tolerance group
Name of Tolerance Group
Gain Amount
Gain Percent
Loss Amount
Loss Percent
Payment Term from Invoice
Only grant partial cash disc.
Click on
© SAP AG
Description
Organizational unit within accounting.
Group for customers and vendors, or accounts.
Name of Tolerance Group
Payment differences to our advantage are
allowed up to the amount entered here.
Differences when settling payments are posted
automatically by the system up to this rate.
Payment differences to our disadvantage are
allowed up to the amount entered here.
Differences when settling payments are posted
automatically by the system up to this rate.
Indicates terms of payment are to be
transferred from the original item for residual.
Indicates partial cash discount is granted when
clearing invoices if an outstanding receivable is
posted due to insufficient payment.
Data Value
Your Global Bike Inc.
GBI
## Global Bike Inc.
20
2
2
2
Selected
Selected
(SAVE). You will receive a message that says “Data was saved”.
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Phase II – Procurement
CASE STUDY
II.2.9: Default Values for Inventory
Description: You update the keys used in the Invoice Verification process. This is a complex
concept, but when GBI receives a Vendor Invoice, the correct combination of credit and debit
accounts must be specified under a variety of business conditions.
Navigation (SAP Menu Bar): System ► Services ► Table Maintenance ► Extended Table Maintenance
Tasks and Data Entry:
In the “Maintain Table Views: Initial Screen” screen, enter the following information:
Attribute
Table/View
Click on
Description
Name of table/view for extended table maintenance.
Data Value
T169V
(MAINTAIN).
You are in the “Change View “Default Values, Invoice Verification”: Overview” screen.
Enter the following information:
Attribute
CoCd
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Click on
© SAP AG
Description
An organizational unit within financial accounting.
Posting key for credit postings.
Posting key for debit postings.
Posting key for credit postings.
Posting key for debit postings.
Posting key for credit postings.
Posting key for debit postings.
Posting key for credit postings.
Posting key for debit postings.
Data Value
Your Global Bike Inc.
Invoice(31)
21
Credit entry
Debit entry
Stock outwd movement
Stock inwrd movement
Credit asset
Debit asset
(SAVE). You will receive a message that says “Data was saved”.
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Phase II – Procurement
CASE STUDY
II.2.10: Default Values for Plants
Description: You specify inventory management parameters at each of your three plants.
GBI management wants to improve plant efficiency by creating the following automatic actions at
each Plant:



Storage locations are automatically generated when needed. Thus if a warehouse person
receives Raw Material for the first time, a RM storage location is automatically created.
Purchase order deliveries are automatically completed when the correct quantity is received.
Reservations of inventory for a Sales Order are automatically deleted after 30 days.
Warning: See “General Notes and Cautions” about table locks.
Navigation: SAP Customizing Implementation Guide ► Materials Management ► Inventory
Management and Physical Inventory ► Plant Parameters
Tasks and Data Entry:
You are in the “Change View “General plant settings in Inventory Management”: Overview” screen.
Click on
(NEW ENTIRES).
In the “New Entries: Details of Added Entries” screen, enter the following information:
Attribute
Plant
Create SLoc. automat.
Del. compl. default
Movement Allowed
Days mvt. allowed
Retention period
Click on
Description
Key uniquely identifying a plant.
Creation of storage location data in the material master
record at the time of the first goods receipt is allowed.
The setting of the “delivery completed” indicator.
Specifies that goods movements are allowed.
Days on the basis of which the program checks
whether movements are allowed for a reservation item.
Time in days during which a reservation item resides in
the system before being deleted by the program.
Data Value
Your Plant Dallas
Selected
Selected
Selected
30
30
(NEXT ENTRY).
Enter the following information:
Attribute
Plant
Create SLoc. automat.
Del. compl. default
Movement Allowed
Days mvt. allowed
Retention period
© SAP AG
Description
Key uniquely identifying a plant.
Creation of storage location data in the material master
record at the time of the first goods receipt is allowed.
Controls setting of the “delivery completed” indicator.
Specifies that goods movements are allowed.
Days on the basis of which the program checks
whether movements are allowed for a reservation item.
Time in days during which a reservation item resides in
the system before being deleted by the program.
Data Value
Your DC Miami
Selected
Selected
Selected
30
30
Page 28
Phase II – Procurement
Click on
CASE STUDY
(NEXT ENTRY).
Enter the following information:
Attribute
Plant
Create SLoc. automat.
Del. compl. default
Movement Allowed
Days mvt. allowed
Retention period
Click on
© SAP AG
Description
Key uniquely identifying a plant.
Creation of storage location data in the material
master record at the time of the first goods receipt.
Controls the “delivery completed” indicator.
Specifies that goods movements are allowed.
Days on the basis of which the program checks
whether movements are allowed for a reservation.
Time in days during which a reservation item resides
in the system before being deleted by the program.
Data Value
Your DC San Diego
Selected
Selected
Selected
30
30
(SAVE). You will receive a message that says “Data was saved”.
Page 29
Phase II – Procurement
CASE STUDY
II.2.11: Define Attributes of Material Types
Description: You will specify valuation techniques for your Material Types.
Materials are categorized into different Material Types based on the way they are used. Examples of
Material Types include Finished Goods (FERT) and Trading Goods (HAWA). When you create a
new material in the material master, you must assign it to a Material Type.
Material Types already exist in your SAP instance. In this step you indicate that you want to track the
quantity and value of each material (for each Material Type) within each Storage Location within
each Plant.
Warning: See “General Notes and Cautions” about table locks.
Navigation: SAP Customizing Implementation Guide ► Logistics – General ► Material Master ►
Basic Settings ► Material Types ► Define Attributes of Material Types
Tasks and Data Entry:
In the “Change View “Material types”: Overview” screen, double-click on FERT.
In the “Change View “Material types”: Details” screen double-click on Quantity/value updating.
In the “Change View “Quantity/value updating”: Overview” screen, enter the following information:
Attribute
Val. Area
Matl type
Qty updating
Value updating
Val. Area
Matl type
Qty updating
Value updating
Val. Area
Matl type
Qty updating
Value updating
Click on
© SAP AG
Description
Organizational level at which the material is valuated.
Key that assigns the material to a group of materials.
Specifies that the material is managed on a quantity basis
in the material master record for the valuation area.
Specifies that the material is managed on a value basis in
the material master record for the valuation area.
Data Entry
Your Plant Dallas
Finished Product
Selected
Organizational level at which the material is valuated.
Key that assigns the material to a group of materials.
Specifies that the material is managed on a quantity basis
in the material master record for the valuation area.
Specifies that the material is managed on a value basis in
the material master record for the valuation area.
Your DC Miami
Finished Product
Selected
Organizational level at which the material is valuated.
Key that assigns the material to a group of materials.
Specifies that the material is managed on a quantity basis
in the material master record for the valuation area.
Specifies that the material is managed on a value basis in
the material master record for the valuation area.
Your DC San Diego
Finished Product
Selected
Selected
Selected
Selected
(ENTER).
Page 30
Phase II – Procurement
CASE STUDY
You will receive a message that says “Changing the quantity/value update may cause inconsistencies”.

The system may give you the above message as you scroll through. Simply enter through it.
Click on
(ENTER).
Click on
(SAVE). You will receive a message that says “Data was saved”.
Click on
(BACK).
In the “Change View “Material types”: Details” screen click on the
icon.
In the “Change View “Material types”: Overview” screen, double-click on HALB.
In the “Change View “Material types”: Details” screen double-click on Quantity/value updating.
In the “Change View “Quantity/value updating”: Overview” screen, enter the following information:
Attribute
Val. Area
Matl type
Qty updating
Value updating
Click on
Description
Organizational level at which the material is valuated.
Key that assigns the material to a group of materials.
Specifies that the material is managed on a quantity basis
in the material master record for the valuation area.
Specifies that the material is managed on a value basis in
the material master record for the valuation area.
Data Entry
Your Plant Dallas
Semifinished Product
Selected
Selected
(ENTER).
You will receive a message that says “Changing the quantity/value update may cause inconsistencies”.

The system may give you the above message as you scroll through. Simply enter through it.
Click on
(ENTER).
Click on
(SAVE). You will receive a message that says “Data was saved”.
Click on
(BACK).
In the “Change View “Material types”: Details” screen click on the
icon.
In the “Change View “Material types”: Overview” screen, double-click on HAWA.
In the “Change View “Material types”: Details” screen double-click on Quantity/value updating.
In the “Change View “Quantity/value updating”: Overview” screen, enter the following information:
Attribute
Val. Area
Matl type
Qty updating
© SAP AG
Description
Organizational level at which the material is valuated.
Key that assigns the material to a group of materials.
Specifies that the material is managed on a quantity basis
in the material master record for the valuation area.
Data Entry
Your DC Miami
Trading Goods
Selected
Page 31
Phase II – Procurement
Value updating
CASE STUDY
Specifies that the material is managed on a value basis in
the material master record for the valuation area.
Val. Area
Matl type
Qty updating
Organizational level at which the material is valuated.
Key that assigns the material to a group of materials.
Specifies that the material is managed on a quantity basis
in the material master record for the valuation area.
Value updating Specifies that the material is managed on a value basis in
the material master record for the valuation area.
Click on
(ENTER).
Selected
Your DC San Diego
Trading Goods
Selected
Selected
You will receive a message that says “Changing the quantity/value update may cause inconsistencies”.

The system may give you the above message as you scroll through. Simply enter through it.
Click on
(ENTER).
Click on
(SAVE). You will receive a message that says “Data was saved”.
Click on
(BACK).
In the “Change View “Material types”: Details” screen click on the
icon.
In the “Change View “Material types”: Overview” screen, double-click on ROH.
In the “Change View “Material types”: Details” screen double-click on Quantity/value updating.
In the “Change View “Quantity/value updating”: Overview” screen, enter the following information:
Attribute
Val. Area
Matl type
Qty updating
Value updating
Click on
Description
Organizational level at which the material is valuated.
Key that assigns the material to a group of materials.
Specifies that the material is managed on a quantity basis
in the material master record for the valuation area.
Specifies that the material is managed on a value basis in
the material master record for the valuation area.
Data Entry
Your Plant Dallas
Raw materials
Selected
Selected
(ENTER).
You will receive a message that says “Changing the quantity/value update may cause inconsistencies”.

The system may give you the above message as you scroll through. Simply enter through it.
Click on
(ENTER).
Click on
(SAVE). You will receive a message that says “Data was saved”.
© SAP AG
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Phase II – Procurement
CASE STUDY
Part II.3 – Master Data
Enterprise
Structure
Rules and
Parameters
Master Data
Process
Execution
Table of Contents
II.3.1: Create Trading Goods .....................................................................................................34
II.3.2: Create Vendor .................................................................................................................36
© SAP AG
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Phase II – Procurement
CASE STUDY
II.3.1: Create Trading Goods
Description: You will create Trading Goods in your Company Code by copying from the material
master in Company Code US00.
Trading Goods (Material Type = HAWA) are materials intended for commercial exchange and are
always bought – and then resold. The material master for Trading Goods therefore contains both
purchasing data and sales data.
In this step, you will start by copying Elbow Pads (EPAD1000) from Company Code US00 to US##.
You will renumber the original Elbow Pads (EPAD1000) as EPAD10## and change the description to
## Elbow Pads.
You will also associate each of your new Trading Goods with your Purchasing Group (N##) that you
created earlier.
Navigation: SAP menu ► Logistics ► Materials Management ► Material Master ► Material ►
Create (Special) ► Trading Goods
Tasks and Data Entry:
In the “Create Trading Goods (Initial Screen)” screen, enter the following information:
Attribute
Material
Industry sector
Copy from…Material
Click on
Description
Alphanumeric key uniquely identifying the material.
The branch of industry to which the material is assigned.
Material whose data you want the system to copy.
Data Value
EPAD10##
Retail
EPAD1000
(ENTER).
In the “Select View(s)” pop-up, highlight the “Basic Data 1” row.
Highlight the “Purchasing” row.
Highlight the “Accounting 1” row.
Click on
Click on
(SAVE AS DEFAULT VALUES).
(CONTUNUE (ENTER)).
In the “Organizational Levels” pop-up, enter the following information:
Attribute
Plant
Copy from Plant
Click on
Click on
Description
Key uniquely identifying a plant.
Plant of the reference material.
Data Value
Your DC Miami
MI00
(SAVE AS DEFAULT VALUES).
(CONTINUE (ENTER)).
You will receive a message that says “The material already exists and will be extended”.
© SAP AG
Page 34
Phase II – Procurement
CASE STUDY
In the “Create Trading Goods EPAD10##” screen, enter the following information:
Attribute
Material Description (Short Text)
Purchasing Group
Description
Material Description
Key for a buyer or a group of buyers.
Click on
(ENTER) until you reach the last screen.
Click on
(ENTER).
In the “Last data screen reached” pop-up, click on the
Data Value
## Elbow Pads
Your North America
icon.
You will receive a message that says “Material EPAD10## created”.
You have just created your Elbow Pads in the steps above. Appendix E contains data about all of the
Trading Goods in GBI. Use the data in appendix E to create the following Trading Goods: RHMT10##,
RKIT10##, OHMT10##, and KPAD10##. Create each of the materials with the same views you used
above. You will use Appendix E again in later exercises to add more views the your trading good
materials.
© SAP AG
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Phase II – Procurement
CASE STUDY
II.3.2: Create Vendor
Description: You will create a Vendor in your Company Code by copying from the Vendor master in
Company Code US00. This vendor will be used during testing to procure your Trading Goods.
In this step, you will copy Vendor 101000 from Company Code US00 to Company Code US##. You
will renumber the Vendor as 1010##.
You will also associate your new Vendor with your Purchasing Organization (NA##) that you created
earlier.
Warning: See “General Notes and Cautions” about table locks.
Navigation: SAP menu ► Logistics ► Materials Management ► Purchasing ► Master Data ► Vendor
► Central ► Create
Tasks and Data Entry:
In the “Create Vendor: Initial Screen” screen, enter the following information:
Attribute
Vendor
Company Code
PurchasingOrganization
Account group
Reference Vendor
Company code
Reference
PurchasingOrganization
Click on
Description
Identifies a vendor.
Organizational unit within financial accounting.
Purchasing Organization
A classifying feature within vendor master
records.
Vendor account that you want to use as a
reference when creating.
Here you enter the company code you want to
use as a reference during creation.
Organizational unit that negotiates general
conditions of purchase for a plant or plants.
Data Value
1010##
Your Global Bike Inc.
Your GBI US
Vendor (int.number
assgnmnt)
101000
Global Bike Inc.
GBI US
(ENTER).
In the “Create Vendor: Accounting information Accounting” screen, click on the
icon.
You will receive a message that says “Vendor 00001010## has been created for company code US##”.
© SAP AG
Page 36
Phase II – Procurement
CASE STUDY
Part II.4 – Process Execution
Enterprise
Structure
Rules and
Parameters
Master Data
Process
Execution
Table of Contents
II.4.1: Create Purchase Requisition ...........................................................................................38
II.4.2: Create Purchase Order ...................................................................................................39
II.4.3: Create Goods Receipt .....................................................................................................40
II.4.4: Receive Invoice ...............................................................................................................41
II.4.5: Pay Vendor .....................................................................................................................42
© SAP AG
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Phase II – Procurement
CASE STUDY
II.4.1: Create Purchase Requisition
Description: This is the first of five steps to test your Procure-to-Pay configuration.
You will create a purchase requisition: a request to procure a certain quantity of a material – or
services – to be available at a certain time.
Your purchase requisition will be for the Trading Goods you created earlier: 50 Elbow Pads, 50 Road
Helmets, 50 Repair Kits, 50 Off-Road Helmets, and 50 Knee pads all to arrive in one week.
Navigation: SAP menu ► Logistics ► Materials Management ► Purchasing ► Purchase Requisition
► Create
Tasks and Data Entry:
In the “Create Purchase Requisition” screen, enter the following information:
Attribute
Material
Quantity
Deliv. Date
Plant
Stor. Loc.
Description
Number identifying a material.
Specifies the quantity to be ordered.
Date on which the goods are to be delivered.
Plant in which you wish to procure material or services.
Name of the storage location at which materials are stored.
Data Value
Your Elbow Pads
50
One Week from Today
Your DC Miami
Your Trading Goods
Material
Quantity
Deliv. Date
Plant
Stor. Loc.
Number identifying a material.
Specifies the quantity to be ordered
Date on which the goods are to be delivered.
Plant in which you wish to procure material or services.
Name of the storage location at which materials are stored.
Your Road Helmet
50
One Week from Today
Your DC Miami
Your Trading Goods
Material
Quantity
Deliv. Date
Plant
Stor. Loc.
Number identifying a material.
Specifies the quantity to be ordered.
Date on which the goods are to be delivered.
Plant in which you wish to procure material or services.
Name of the storage location at which materials are stored.
Your Repair Kit
50
One Week from Today
Your DC Miami
Your Trading Goods
Material
Quantity
Deliv. Date
Plant
Stor. Loc.
Number identifying a material.
Specifies the quantity to be ordered.
Date on which the goods are to be delivered.
Plant in which you wish to procure material or services.
Name of the storage location at which materials are stored.
Your Off Road Helmet
50
One Week from Today
Your DC Miami
Your Trading Goods
Material
Quantity
Deliv. Date
Plant
Stor. Loc.
Number identifying a material.
Specifies the quantity to be ordered.
Date on which the goods are to be delivered.
Plant in which you wish to procure material or services.
Name of the storage location at which materials are stored.
Your Knee Pads
50
One Week from Today
Your DC Miami
Your Trading Goods
Click on
© SAP AG
(SAVE). You will receive a message that says “Purchase requisition number created”.
Page 38
Phase II – Procurement
CASE STUDY
II.4.2: Create Purchase Order
Description: This is the second of five steps to test your Procure-to-Pay configuration.
You will create a Purchase Order from the previously created Purchase Requisition to be sent to your
Vendor.
A Purchase Order is issued by a buyer to a seller, indicating types, quantities, and agreed prices for
products – or services – the seller will provide to the buyer.
Navigation: SAP menu ► Logistics ► Materials Management ► Purchasing ► Purchase Order ►
Create ► Vendor/Supplying Plant Known
Tasks and Data Entry:
In the “Create Purchase Order” screen, click on the “Document Overview On” icon.
Click on
(SELECTION VARIANT).
Click on My purchase requisitions.
In the “Create Purchase Order” screen click on your purchase requisition number.
Click on

(ADOPT).
If you double click on the purchase requisition number, the system will display the requisition. You
are no longer in the application to create a purchase order. If this happens, you must exit back to the
main menu and start at the beginning of this step.
Enter the following information:
Attribute
Vendor
Purch. Org.
Description
Data Value
Number and name of the vendor (external supplier)
Your Olympic Protective Gear
or plant from which the materials are to be procured.
Denotes the purchasing organization.
Your GBI US
Enter the following information:
Material
Your Elbow Pads
Your Road Helmet
Your Repair Kit
Your Off Road Helmet
Your Knee Pads
Click on
Net Price
37.50
25.00
16.00
25.00
37.50
Currency
United States Dollar
United States Dollar
United States Dollar
United States Dollar
United States Dollar
(SAVE).
In the “Save Document” pop-up, click on the “Save” icon.
You will receive a message that says “Standard PO created under the number”.
© SAP AG
Page 39
Phase II – Procurement
CASE STUDY
II.4.3: Create Goods Receipt
Description: This is the third of five steps to test your Procure-to-Pay configuration.
You will verify that you received the goods shipped in response to the Purchase Order by creating a
goods receipt transaction. The goods receipt will specify the quantity and storage location for each
item received.
Navigation: SAP menu ► Logistics ► Materials Management ► Inventory Management ► Goods
Movement ► Goods Receipt ► For Purchase Order ► PO Number Known
Tasks and Data Entry:
In the “Goods Receipt Purchase Order” screen, enter the following information:
Attribute
Purchasing Document Number
Click on
Description
Alphanumeric key uniquely
identifying the document.
Data Value
Purchase Order Number
(ENTER).
Enter the following information:
Mat. Short Text
Elbow Pads
Road Helmet
Repair Kit
Off Road Helmet
Knee Pads

OK
Selected
Selected
Selected
Selected
Selected
Qty in UnE
50
50
50
50
50
SLoc
Your Trading Goods
Your Trading Goods
Your Trading Goods
Your Trading Goods
Your Trading Goods
In order to select OK for all of the materials you need to close the Detail Data heading.
Click on
© SAP AG
(POST). You will receive a message that says “Material document posted”.
Page 40
Phase II – Procurement
CASE STUDY
II.4.4: Receive Invoice
Description: This is the fourth of five steps to test your Procure-to-Pay configuration.
You will receive an invoice from your vendor against the Purchase Order you previously created.
This step is called Invoice Verification in SAP and verifies that the incoming invoice is correct with
regard to material, prices, quantity, and arithmetic. If the invoice is correct (within the tolerances you
set up earlier), financial accounting transactions will be created (debit GR/IR and credit Accounts
Payable).
Navigation: SAP menu ► Logistics ► Materials Management ► Purchasing ► Purchase Order ►
Follow-On Functions ► Logistics Invoice Verification
Tasks and Data Entry:
In the “Enter Incoming Invoice: Company Code US##” screen, enter the following information:
Attribute
Invoice date
Amount
Purchasing Document Number
Click on
Description
The issue date of the original document.
Line item amount in document currency.
Key uniquely identifying the document.
Data Value
Current Date
7050
Purchase Order Number
(ENTER).
Enter the following information:
Item
1
2
3
4
5
Click on
© SAP AG
Amount
1,875.00
1,250.00
800.00
1,250.00
1,875.00
Quantity
50
50
50
50
50
Booking OK (
Selected
Selected
Selected
Selected
Selected
)
(SAVE). You will receive a message that says “Document no. created”.
Page 41
Phase II – Procurement
CASE STUDY
II.4.5: Pay Vendor
Description: This is the last of five steps to test your Procure-to-Pay configuration.
You will pay the vendor invoice that you just verified. This step is called Post Outgoing Payment in
SAP. If the payment is correct (within the tolerances you set up earlier), financial accounting
transactions will be created (debit Accounts Payable and credit Bank).
Navigation: SAP menu ► Accounting ► Financial Accounting ► Accounts Payable ► Document Entry
► Outgoing Payment ► Post
Tasks and Data Entry:
In the “Post Outgoing Payments: Header Data” screen, enter the following information:
Attribute
Document Date
Bank data Account
Amount
Open item selection Account
Click on the
Description
The date on which the original
document was issued.
Account Number
Line item amount in document.
The account from which the open
items are to be selected for further
processing or the key of a work list
which represents a group of accounts.
Data Value
Current Date
Your Bank Account
7050
Your Olympic Protective Gear
icon. You will receive a message that says “1 item(s) were selected”.
In the “Post Outgoing Payments Process open items” screen, click on the
(POST) icon.
You will receive a message that says “Document was posted in company code US##”.
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