I’d like to describe the various scenarios 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). We will comprehend the master data operations, such as the material master, the buy Info record, the source list, and the transaction operations, such as the purchase requisition, purchase order, the receipt of goods, and the posting of invoices.
The previous blog article is continued in this document. First and second scenarios were addressed in my most recent blog post (Standard purchase order and Capex purchase order). I’ll demonstrate the 3, 4, and 5 scenarios in this blog article (Consumption Purchase Order, Stock PO with the Price difference, and Service-Related PO with price differences). The remaining scenarios will be posted in a later blog post.
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.
Transaction Keys and Movement Types : The system will determine the GL accounts using the combination of Movement Types and Transaction Keys. The “T.Code-OBYC” Settings should be updated to reflect the setup.
3. Consumption Purchase Order
3.1 Creation of Purchase Orders: T-Code ME21N
Fill out the line item level with the following information: Account Assignment – K (Cost Center), Material code, Quantity, Unit of measure, Delivery date, Net-price, Currency, Material group, Plant, and Storage location. On the screen below, enter the necessary data before pressing enter.
Enter the appropriate GL account and Cost Center in the “Account Assignment” tab of the screen below.
Type in and save.
3.2 MIGO goods receipt
Click “Enter” after entering the purchase order number against the goods receipt.
In the display below, If everything appears good, enter the quantity in the delivery remark and check the item OK box before saving it. The Accounting document was generated by the system.
Present the goods receipt papers.
The stock/inventory GL account WILL NOT get the values. The P&L GL Account-Consumption account will be affected by its direct consumption.
3.3 MIRO’s invoice receipt
Under the PO Reference tab, enter the invoice date, reference, and PO number, then press enter.
Enter the invoice amount and then click “simulate” to check the accounting record on the screen below.
Show accounting records
Double-click Accounting document after selecting Follow-on-documents from the Menu’s Invoice document-Display menu.
3.4 Material Verification Report for MB5B
Note: The Material Report does not display information on consumption-related stockpiles (MB5B).
4. Stock PO with Price Differences
A purchase order worth 10,000 rupees was created by a user (100 Qty, 100 rupees each quantity). The company has agreed to pay market rates. A bill for Rs. 12,000 has been sent by the seller. In essence, the cost is raised by 20 rupees for each quantity.
- The difference is added to the stock/material account if the stock is completely accessible.
- If all of the stock is consumed, the price difference or difference amount is added to the price difference account.
- if only a portion of the stock has been used, such as if there are 100 amounts altogether and 40 have been eaten. You therefore have 60 quantity of goods available in this situation. The system will transfer 60 quantities of stock into the inventory account throughout this operation, and 40 quantities of stock (or consumed stock) into the price difference account.
4.1 Creation of Purchase Orders in ME21N
To save, click the enter key.
4.2 MIGO Goods Receipt
4.3 The Cost Center-MB1A Received Stock
4.4 Verify Material Report-MB5B
4.5 MIRO Invoice Receipt
The price is 10000 Rupees for 100 quantities of stock when creating a purchase order, however it is 12000 Rupees for 100 quantities of stock when issuing an invoice. We are creating a 12000 rupee invoice in the step below.
The discrepancy was moved here by the system to the stock/inventory account. since in this instance there is no shortage of supplies. You can use the T-Code MB5B to check whether there is stock available.
5. A situation involving a service-related purchase order and price variations
It is commonly referred to as a service order or labour order. It’s primarily employed for services. If necessary, businesses may develop service codes. The service codes are optional, though. For services, we do not determine the SR/IR Clearing GL account based on the value class. The valuation class will remain empty in the OBYC settings.
5.1 Creation of Purchase Order-ME21N
Click “Enter” after choosing/entering the vendor’s number in relation to the PO.
Enter the information requested in the header areas, such as Purch. Org, Purch. Group, and Company Code, and then click Enter.
Fill in the line item fields with the following data: Account assignment (K), Item category (D; it is for services), short text, amount, unit of measure, delivery date, net price, currency, material group, plant, and storage location. Click “Enter” after entering the necessary data on the screen below.
You must enter the G/L account (Painting services account) and Cost Center on the screen below before pressing the Enter key.
The system created the PO Order number, which is displayed in the screen below.
5.2 Goods Receipt and Post Service Entry ML81N
On the screen that appears below, click Other Purchase Order.
Click “Enter” after entering the purchase order number.
Right-click “Painting Services” in the screen below, choose “Create,” then click “With scheduled services,” and then press the enter key.
The system will only produce the goods receipt document together with the service entry when you release (green flag) and save the document while posting a service entry. If not, you won’t receive the goods receipt paperwork.
Type in and Save
5.3 Present the Purchase Order History-ME23N
The Goods Receipt document and the Service Entry can be seen by selecting Purchase Order History from the screen below.
If you double-click on the service entry in the previous page, you will be able to see that a total of 10 painting services have been requested in the screen that appears below.
5.4 MIRO Invoice Receipt
The accounting item on the following screen will look like this if the price is the same at the time of both the PO and the invoice.
The values will always be adjusted to the expenditures GL account if the price is changed from 10,000 to 12,000. The accounting entry is shown in the screenshot below.
5.5 Payment to Vendor-F-53/F110
The payment will be made by the treasury division. For outgoing payments, they employ the F-53/F110 (Manual/Automatic) systems.
We now have a thorough understanding of the various P2P scenarios as well as deep knowledge of Consumption POs, Stock POs with Price Differences, and Service-Related POs with Price Differences. The remaining scenarios will be posted in a later blog post. 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. This blog post is intended to help, I hope. In next blog postings, I’ll update the remaining cases from my list.