I’d like to describe the many eventualities in the procurement process in this document. The buy request is the first step in the procurement process, which concludes with payment to the vendor. So the term “P2P Procedure” is often used to describe this process. It deals with the acquisition of goods, services, and various contracts related to acquisition. I’ve described a few common circumstances. A 3-way matching rule applies (PO-GR-IV).

This article is a continuation of parts 1 and 2 of my earlier blog posts. I’ve described 1, 2, 3, 4, and 5 scenarios in prior blog articles (1-Standard purchase order, 2-Capex purchase order, 3-Consumption Purchase Order, 4-Stock PO with the Price difference, and 5-Service-Related PO with price differences). In this blog article, I’ll outline 6–10 different scenarios, including the manual stock transfer process, the purchase order using internal orders, the STO through the PO, the down payment against the PO, and more.

The details of my last blog entry are listed below.

The table below provides a high-level summary of many scenarios.

Note: The desktop version will give you the finest view of the screenshot of the 10 scenarios below.

6. Manual Stock Transfer Process-MB1B

We can move stock manually (T-Code-MB1B) or through a PO (ME21N). Within a business code and between company codes, we can move stock from Plant to Plant.

I’m transferring stock between plants and between business codes in this stage.

The two processes listed below should be followed if stock transfer is being done between two factories that are part of two different business codes.

  1. Make certain to use the same material to create both plants.
  2. Configure the ‘OBYA’ Cross Company Code Settings, please.

I extended the same material in the receiving plant and made system settings for cross-company codes. I am therefore conducting the stock transfer process directly.

6.1 Manual Stock Transfer from Plant to Plant (T.Code-MB1B)

I am moving the variables in the example below from one plant to another plant.

Type in the document’s date, header content, movement type, sending plant’s plant, and storage location. Press enter.

Enter the plant and storage location of the receiving plant in the header section of the screen below. Enter the material, quantity, and storage location for the receiving plant in the Items level, then hit Save. The programme will produce a document (MM document & FI document).

Find the accounting documents on the same screen (MB1B). Transfer posting from the menu, then display

The system created the following accounting documents in both Plants/Co. Codes as seen in the screen below. Select Accounting Documents twice.

Accounting document with the Plant/PIL Company Code “PIL”

Accounting document with Plant/RCOM Co. Code “RCOM”

6.2 Check the Material Report (T-Code-MB5B)

Material Report (MB5B) in the RCOM Plant/RCOM Co. code (Receiving Plant)

Enter the necessary data on the screen below, then click Execute. The system will update the stock quantity indicated by “7” in the screen below.

The PIL Plant/PIL Company code’s Material Report entry is (MB5B) (Sending Plant). Enter the necessary data for the screen below, then press “Execute.” The ‘7’ quantity of stock that has been used will be updated by the system. Therefore, you can see in the screen below.

7. Stock Transport Through Purchase Order(One Plant to Another Plant)-ME21N

Select the Purchase Order type, 1) Stock Transp. Order, in the Header section of the screen below. 2) The supplying plant (from or sending to the plant), and 3) The receiving plant’s Purch. Org, Purch, Group, and Company code information. 4) Information on the Material, Quantity, Delivery Date, Plant, and Storage location for the Receiving Plant.

After pressing enter, the system generated the stock-transported purchase order number shown below.

7.1 MIGO Goods Issue

Issue the goods in accordance with the purchase order on the screen below.

Display a document on one screen at a time.

The system has generated the documents in both plants in the screen below. In each Company code, double-click on Accounting Documents.

PIL Plant/PIL Company code accounting document (Sending Plant)

Financial statement with the RCOM Plant/RCOM Company code (Receiving Plant)

7.2 Material Report-MB5B (Code PIL / Plant-Sending Plant PIL)

Enter the necessary details in the screen below, then click “Execute.”

You can notice that “8” quantity of stock has been consumed in the PIL Plant in the screen below (Sending Plant).

Note: Prior to completing the goods receipt, we cannot view the material report in the receiving plant (RCOM).

7.3 MIGO Goods Receipt

We must do a goods receipt in order to obtain the material report for the receiving plant. We must choose Goods Receipt Against the PO on the MIGO screen.

Display the document and the goods receipt on the same screen.

Select Accounting Documents twice. Given that there is no monetary impact, the system does not generate any FI- Documents for goods receipts. However, the material report for the receiving plant is visible.

7.4 Material Report Receiving Plant/Co.Code-MB5B

The system has updated the screen below to reflect the addition of “8” quantities of stock to the facility (Receiving Plant)

8. Down payment in accordance with a purchase order

Payment of an advance to the vendor prior to the delivery of products and services is typical in many enterprises. I demonstrate this in the steps that follow.

8.1 Creation of Purchase Order-ME21N

Select “Save”

8.2 Deposit paid to Vendor-F-48

Be sure to fill out the item information and purchase order number below. To post the down payment, click Save.

After posting, show the down payment document.

8.3 MIGO Goods Receipt

Document for Display Goods Receipt

Select Accounting Document twice.

8.4 Show History of Purchase Orders – ME23N

To view the down payment paperwork and the goods receipt document, go to the purchase order display screen and select purchase order history. You may view the accounting entries by double-clicking on each document.

8.5 MIRO Invoice Receipt

The date of the invoice, the PO Document Number, and

When you press enter, the system pops up a window with the words “Down Payments for this PO Order.”

Enter 1) Amount – $12,000 and 2) Message about Down Payments for PO Order in the fields below the page. Press enter.

When you select Simulate, the accounting entries will be visible. Save if everything is in order. The system will provide a document for an invoice with a blocking status.

Display the invoice document and any related documents. To view the invoice document, double-click on the accounting document.

8.6 Material Report-MB5B

Input the necessary data onto the screen below, then press Execute.

The Stock or Material Added to the Respected Plant is Visible.

8.7 Verify Order History-ME23N for Purchases

You can see the down payment, GRN, and IV Documents in the screen below.

8.8 Payment to Vendors—F-53/F110

Manual Payment-T-Code-F-53 is what I’m doing. Selecting Process Open Items will cause the system to create an accounting record.

9. Process PO for the scheduling agreement

An extended agreement with the Vendor under predetermined terms is known as a scheduling agreement (SA). It has a particular quantity and validity. The SA may be generated both with and without a Material Number.

With reference to a PR (Purchase Requisition), outline agreement, RFQ, or other scheduling agreement, a SA can be prepared.

Scenario: We have a scheduling agreement with the vendor for a total of 25 quantities, which we have divided into 10 and 15 quantities, respectively, in accordance with our needs. Therefore, we must request that our vendor ship 10 quantities on March 17 and balance 15 lots on March 20.

Benefits of SA: By replacing the conventional creation of regular POs, it cuts down on paperwork and processing time. It makes it possible to negotiate better terms with the seller. Scheduling Agreement Item Categories That Are Available:

  • Standard
  • Consignment
  • Third-party
  • Text

Types of documents used in scheduling agreements

  • Without Release Documentation (LP), it is used to send the vendor the notification after the SA has been produced.
  • With Documentation LPA
9.1 ML31L: Scheduling Agreement Creation

Enter the Vendor number, the Agreement type (LP-Scheduling Agreement without release), and the Agreement Date in the screen below. Introducing the Purchasing Organization and Group. On the enter key.

Enter the start and end dates for the validity in the box below.

Enter the material, quantity, net price, material group, plant, and storage location in the screen below. Keep it. The Scheduling Agreement number was generated by the system.

9.2 Keep Delivery Schedules Up to Date—ME38

Type the SA Number in

Double-click on the line item in the following screen.

Enter the Delivery dates and quantities in the screen below, appropriately. To save, click the enter key. The scheduling Agreement number will be used by the system to save the Delivery dates.

9.3 MIGO Goods Receipt

In the display below, Enter the quantity received, the Scheduling Agreement number next to the goods receipt, and then click “Item OK.” next save

Show Document, Select the Display field from the MIGO Executable Action list in the screen below.

9.4 MIRO Invoice Receipt

Manifest invoice records

9.5 Verify Material Report-MB5B

10. Using internal orders, Capex PO

The company is creating an asset internally and wanted to record all costs associated with it. AUC Asset must therefore be created (AS01), an internal order must be created (KO01), and AUC Asset must be linked in the internal order. The prerequisites for the Capex PO Process are listed below.

10.1 Development of the AUC Asset-AS01

Enter the relevant Asset Class, Company code, and Assets number. Enter the key

10.2 Establishing Internal Order – KO01

We must create the following configurations before we may create internal orders.

T.Code-OKOA Allocation Structure Creation

I’ve broken down the configuration stages below for easy comprehension. For the Non-FICO team, it is not important, thus you can skip to step 10.3.

The “Source Cost element,” “Receiving Cost element,” and “Settlement Cost element” must be specified in the Allocation structure. In the Settlement profile, we assign this Allocation structure as well.

Enter after selecting the radio box for Allocation Structure.

Click on new entries, then type text and an allocation structure.

Double-click on the Assignments folder after choosing Allocation Structure “PI.”

Name and text for the assignment. Press enter.

Choose the “PIL” assignment item, then double-click the Source.

Double-click the Settlement cost elements in the screen below after indicating the Source Cost element.

On the screen below, click the new entries. Type “Receiver Account Assignment Category” and choose “cost element” as your filter. Save

Making of the OKOA Settlement Profile Select Settlement profile from the radio option, then click New Entries after entering.

Enter the information below, then save it repeatedly in your TR.

Establish ranges of numbers for Settlement documents—OKOA Enter after selecting the radio button for the settlement document’s number range.

Click on Change intervals on the screen below, then input and save a range of numbers.

Order creation of type T-Code-KOT2 Order category 01, then enter

Enter the data below, then hit “Save.”

Keep your pointer on “PILZ” and select “Element/Group” on the screen below. Keep your pointer on “2” and press “enter”

Enter and save it despite the warning alert.

Click on the Number range interval change icon on the same screen as above.

Keep your pointer on “PILZ” and select “Element/Group” on the screen below. Keep your pointer on “2” and press “enter”

Internal Order-T-Code-KO01 is created choose the order type, then type

10.3 The Creation of Purchase Orders Using Internal Order-ME21N

10.4 MIGO Goods Receipt

Regulatory Document

Report on Internal Orders, KOB1

10.5 MIRO Invoice Receipt

Present the invoice document


We now understand the various P2P scenarios and have extensive knowledge of the manual stock transfer (MB1B), stock transfer via purchase order, down payment against purchase order, and purchase order using internal order. The procedure can be used with both the ECC system and the S4HANA system. With the S4HANA system, we won’t need to recall transaction codes because we will use the appropriate Fiori Apps. I’m hoping my blog post can be helpful to someone.

I’m grateful.