CASE STUDY

Materials Management (MM)

Case Study
This case study explains an integrated materials management process in
detail and thus fosters a thorough understanding of each process step
and underlying SAP functionality.

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CASE STUDY
Product

MOTIVATION

PREREQUISITES

SAP ERP
G.B.I.
Release 6.04

The data entry requirements in the

materials management exercises
(MM 1 through MM 5) were
minimized because much of the
data was stored in the SAP
system. This stored data, known
as master data, simplifies the
processing of business
transactions.

Before you use this case study, you

should be familiar with navigation in
the SAP system.

In the procurement process, we

used master data for vendors,
materials (products we purchased)
to simplify the procurement
process.

NOTES

Level
Undergraduate
Graduate
Beginner

Focus
Materials Management

Authors
Bret Wagner
Stefan Weidner

Version
2.01

SAP AG

In order to successfully work through

this case study, it is not necessary to
have finished the MM exercises (MM
1 through MM 5). However, it is
recommended.

This case study uses the Global Bike

Inc. (G.B.I.) data set, which has
exclusively been created for SAP UA
global curricula.

In this case study, we will create

the master data for a new vendor
and a new trading good.

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Process Overview

Learning Objective Understand and perform a purchasing process cycle

Time 140 min

Scenario In order to process a complete purchasing process you will take on different roles
within the GBI company, e.g. purchasing agent, warehouse worker, accounting clerk. Overall,
you will be working in the Materials Management (MM) and the Financial Accounting (FI)
departments.
Before you start the purchasing process you create a new vendor (MidWest Supply) in Lincoln. Then, you create a new master record for a
trading good (Chain Lock) in the system. After checking the stock (empty)
you are starting the procurement process by creating a purchase requisition.
Then, you generate a request for quotations and enter the quotations from
various vendors including your new vendor. After evaluating and
accepting the quotation of Mid-West Supply you create a purchase order
referencing the RFQ. Then, you will post the goods receipt and verify the
physical receipt in stock. After creating two partial invoices you will post
the payments to the vendor and review the G/L accounts.

Process description

The graphic below displays the complete process (20 tasks).

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Create New Vendor

Task Create a new vendor.

Time 10 min

Short Description Use the SAP Easy Access Menu to create a new vendor (Mid-West Supply).
Vendors are established in both accounting and purchasing. The vendor
master record requires three views general, accounting, and purchasing in
order to be active. Vendors can be created centrally meaning that all views
are generated concurrently or responsibility can be distributed to
accounting and purchasing for creating and maintaining their respective
views. In this case study, central creation will be used to enter all of the
needed data. In this way, this vendor record will contain all of the
information necessary to conduct business transactions.
To create a new vendor, follow the menu path:

Vendor master

Menu path

Logistics Materials Management Purchasing Master Data

Vendor Central Create

This will produce the following screen.

Leave the vendor field blank. The system will generate a new number.
Enter US00 for Company Code, US00 for Purchasing organization, and
KRED as Account Group. Then, click on .
In the Create Vendor: Address screen, select Company as Title, enter MidWest Supply as Name, and your number (###) for Search term. As Street
enter 335 W Industrial Lake Dr, as Postal code enter 68516, and Lincoln
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US00
US00
KRED
Company
Mid-West Supply
###
335 W Industrial Lake Dr

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for City. Further specify US (Country) and NE (Region). As
communication language choose English. Compare your entries with the
screen shown below.

Then, click on

or

68528 Lincoln
US
NE
English

until you see the Create Vendor: Control screen.

In the Create Vendor: Control screen, in the Tax information field group
enter 12-3456### as Tax Number 2 remember to replace ### with your
number. Confirm your entry and skip the next screen (Create Vendor:
Payment transactions) by clicking
or
twice.
In the Create Vendor: Accounting information Accounting screen, enter
Recon. Account 300000. Then click on or .
In the Create Vendor: Payment transactions Accounting screen, enter Payt
Terms 0001, and select Chk double inv. Then click on
or .

12-3456###

300000

0001
Chk double inv.

In the Create Vendor: Correspondence Accounting screen, enter your name

as Clerk at vendor. Then click on
or .

your name

In the Create Vendor: Purchasing data screen, enter USD as Order currency
and 0001 for Terms of paymnt. Then click on
or .

USD
0001

There is no data to be entered in the Create Vendor: Partner functions

screen.
Click on
to save your vendor master record. The system will
automatically assign a unique number for your vendor.
Click on the exit icon

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Vendor master number

to return to the SAP Easy Access screen.

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Create Material Master for Trading Goods

Task Create material masters for trading goods.

Time 15 min

Short Description Use the SAP Easy Access Menu to create a trading good master record for a
chain lock in the Wholesale distribution channel.
To create a trading good material master record, follow the menu path:

Menu path

Logistics Materials Management Material Master Material

Create (Special) Trading Goods

This will produce the following screen.

In the Material field, type in CHLO1### (replace ### with your number)
and select Retail as an Industry sector. Then, click on
or press Enter.

CHLO1###
Retail

On the next screen, select the following views by clicking on the square in
front of the respective rows:
- Basic Data 1

- MRP 1

- Sales: Sales Org. Data 1

- MRP 2

- Sales: Sales Org. Data 2

- MRP 3

- Sales: General/Plant Data

- General Plant Data/Storage 1

- Purchasing

- Accounting 1

Basic Data 1
Sales: Sales Org. Data 1
Sales: Sales Org. Data 2
Sales: General/Plant Data
Purchasing
MRP 1
MRP 2
MRP 3
General Plant Data / St. 1
Accounting 1
Create views selected

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Also, select Create views selected. Then, click on

On the Organizational Levels screen, enter plant MI00 (Miami), Stor.

Location TG00 (Trading Goods), Sales Org. UE00 (US East), and Distr.
Channel WH (Wholesale). Compare with the screen shown below. Then,
click on .

On the Basic Data 1 tab, enter Chain Lock as a description (text field next
to the material number). As Base Unit of Measure, use the F4 help to find
and select each (EA). In the Material Group field, select UTIL (Utilities).
As division, choose AS (Accessories).
In the Gross Weight field and in the Net Weight field, enter 65 and select
Ounce (OZ) as Weight unit. Then press Enter or click on .

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MI00
TG00
UE00
WH

Basic Data 1
Chain Lock
EA
UTIL
AS
65
65
OZ

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On the Sales: sales org. 1 tab, in the Delivering Plant field use the F4 help
to find and select the Miami plant (MI00). In the Tax data field group, in
the left Tax classification column (the one that is editable = white
background colour) select Exempt (0) for all three tax categories.

Sales: sales org. 1

MI00
0
0
0

Click on
. On the following screen, enter Scale quantity 1
and Amount 69.00. Compare your entries with the screen below, then click
on
to return to the Sales: sales org. 1 view. There, press Enter or click on
.

On the Sales: sales org. 2 tab, select Matl statistics grp 1. Then press Enter.
On the Sales: Genereal/Plant tab, select Availability check 02 (Individual
requirements) and use the F4 help to choose Tansp. Grp 0001 (On pallets)
and LoadingGrp 0002 (Handcart).

1
69.00

Sales: sales org. 2

1
Sales: General/Plant
02
0001
0002

On the Purchasing tab, enter Purchasing Group N00 (North America).

On the MRP 1 tab, select MRP type PD (MRP), MRP Controller 000, Lot
size EX (Lot-for-lot order quantity) and Minimum Lot Size 10.

Purchasing
N00
PD
EX

MRP1
000
10

On the MRP 2 tab, enter Planned [Link] 6 (days) and select

SchedMargin key 001.

MRP 2
6
001

On the MRP 3 tab, check if the Availability check is set correctly to 02.
Then, press Enter. Skip the Plant data / stor. 1 view by clicking on .

MRP 3
02

On the Accounting 1 tab, select Valuation Class 3100 (Trading Goods),

enter Moving price 33.50.

Accounting 1
3100
33.50

Then, click on

to save your material.

Click on the exit icon

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to return to the SAP Easy Access screen.

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Extend Material Master for Trading Goods

Task Extend a material master.

Time 10 min

Short Description Copy the sales views of the new trading good (chain lock) from the Miami
plant to the San Diego plant to maintain a different condition.
To create new views for an existing trading good, follow the menu path:

Menu path

Logistics Materials Management Material Master Material

Create (Special) Trading Goods

Enter your material number CHLO1### (again, replace ### with your
three-digit number) in the Material field. In the Copy from field group,
enter CHLO1### in the Material field again. Then, press Enter.

CHLO1###
CHLO1###

In the Select View(s) window, highlight all three Sales views, make sure
the indicator Create views selected is checked, and click on .

3 Sales views
Create views selected

In the Organizational Levels window, on the left side (Organizational

levels) enter Plant SD00, Sales Org. UW00 and Distr. Channel WH. On
the right side (Copy from), enter Plant MI00, Sales Org. UE00 and Distr.
Channel WH. Before pressing Enter, compare your entries with the screen
shown below.

SD00
UW00
WH

MI00
UE00
WH

The system will take you to the Sales: sales org. 1 view. Note that sales
data has been copied from views created for the Wholesale distribution
channel. The system displays a message saying that the material already
exists and will be extended.
Change Delivering Plant MI00 to SD00. Then, click on
Enter Scale quantity 1 and amount 65.00. Click on
and save with
Finally, click on the exit icon
SAP AG

.
.

Sales: sales org. 1

SD00
1
65.00

to return to the SAP Easy Access screen.

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Display Stock/Requirements List

Task Display the stock/requirements list.

Time 5 min

Short Description Display and review the stock/requirements list for your chain lock on hand
balance and the demand that exists against this product. The report should show that there is no
stock and therefore nothing is available for use at this time.
The stock/requirements list is a dynamic list and, therefore, changes
whenever a transaction occurs using the given material.
To display the stock/requirements list, follow the menu path:

Stock/requirements list

Menu path

Logistics Materials Management Inventory Management

Environment Stock Stock/Requirements List

This will produce the following screen.

In the Material field, enter the number of your new chain lock trading good
CHLO1### (replace ### with your number) and Plant MI00. Then click on
. Your stock/requirements list should look similar to the screen below.

Click on the exit icon

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CHLO1###
MI00

to return to the SAP Easy Access screen.

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Create Purchase Requisition

Task Create a purchase requisition.

Time 5 min

Short Description Sales management has informed the purchasing department of a promotional
campaign that will commence in 3 months to introduce the new chain locks. Create a purchase
requisition for 200 of your locks so that it may be placed out for bid so that a vendor can be
chosen to fill the expected needs associated with this sales campaign.
To create a purchase requisition, follow the menu path:

Menu path

Logistics Materials Management Purchasing Purchase

Requisition Create

This will produce the following screen.

Select

Header to expand the header.

In the text field, type the Header note: Global Bike Inc. is formally
requesting quotations for the following material. Quotes will be accepted
until [1st day of the next month].

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Select

Item Overview to expand the item overview.

Enter Material CHLO1### (replace ### with your number) and Quantity
200. As Delivery Date select or enter the day three months from today.
Then, enter Plant MI00, Stor. loc. TG00, and PGr. N00.
After clicking on

compare your screen with the one below.

Then, click on
to save your purchase requisition. The system will create
a unique document
number.
Click on the exit icon

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CHLO1###
200
3 months from today
MI00
TG00
N00

Purchase requisition
document number

to return to the SAP Easy Access screen

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Display Stock/Requirements List

Task Display the stock/requirements list again.

Time 5 min

Short Description Display and review the stock/requirements list for your chain locks on hand
and the demand that exists against this product. Since we just created a purchase requisition for
200 of them, this event should be visible within the stock/requirements list with a date of roughly
3 months from today.
To display the stock/requirements list again, follow the menu path:

Menu path

Logistics Materials Management Inventory Management

Environment Stock Stock/Requirements List

If not already defaulted in, enter your Material CHLO1### and Plant MI00.
Then click on . Your stock/requirements list should now look similar to the
screen below.

Click on the exit icon

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CHLO1###
MI00

to return to the SAP Easy Access screen.

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Create Request for Quotation

Task Create a request for quotation for your requisition.

Time 10 min

Short Description Create a separate request for quotation (RFQ) for several vendors. This
process will be used to collect the necessary pricing, delivery, etc. information that is needed to
support the selection of a vendor to fill the need for your chain locks.
To create an RFQ, follow the menu path:

Menu path

Logistics Materials Management Purchasing RFQ/Quotation

Request for Quotation Create

This will produce the following screen.

Enter RFQ Type AN, todays date as RFQ Date, and the first day of the
next month as Quotation Deadline.

AN
todays date
1st day of next month

In the Organizational Data field group, enter Purch. Organization US00 and
Purchasing Group N00.

US00
N00

In the Default Data for Items, enter Plant MI00. Then, select

MI00

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If your Purchase Requisition number is not already entered, use the F4 help
to find the number of your purchase requisition. Then, click on .
In the Create RFQ: Selection List: Purchase Requisitions screen, enter
SLoc (Storage Location) TG00. Click on
to select all items. Then, click
on
to adopt all item information into the RFQ.
In the Create RFQ : Item 00010 screen, click on
to display the RFQ
header data. Enter RFQ1### as Coll. No. Remember to replace ### with
your three-digit number. After comparing your entry with the screen below,
click on
to display the line items.

TG00

RFQ1 ###

In the Create RFQ : Item Overview screen, review the line items and
ensure they are correct. Then, select
to display the vendor address.

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In the Create RFQ: Vendor Address screen, use the F4 help to find your
vendor Mid-West Supply. In order to do so, use the fields Search term (###
= your number) and City (Lincoln) and double-click on the result row to
insert the number into the Vendor field. Then, click on
which will
populate your vendors data into corresponding fields.
Click on
to save your RFQ. A warning message will appear. Press Yes to
save anyway.
The SAP system will create a unique document number.

Stay in the same screen and repeat the last step twice to create the same
RFQ for our vendors Dallas Bike Basics and Spy Gear.
In order to find your vendor, in the Vendor field use the F4 help again. This
time, enter US for country and your number (###) in the Search term field.
Then, press Enter to display your set of US vendors (see list below).

First, double-click on Dallas Bike Basics to select it. Back on the Create
RFQ : Vendor Address screen, press Enter and save the second RFQ.
Again, accept the system warning message with Yes.

F4
###
Lincoln

Yes

RFQ document number

Dallas Bike Basics

Spy Gear

US
###

Yes

Repeat the same procedure to create a third RFQ (for Spy Gear) and save
it.
Click on the exit icon

SAP AG

to return to the SAP Easy Access screen.

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Maintain Quotations from Vendors

Task Maintain quotations from vendors.

Time 10 min

Short Description As we receive responses to our RFQs submitted to vendors, it is necessary to

maintain their respective data in our procurement system so that a comparison can be made to
support the vendor selection process.
To maintain quotations from vendors, follow the menu path:

Menu path

Logistics Materials Management Purchasing RFQ/Quotation

Quotation Maintain

Use the F4 help in the RFQ field to find and enter the RFQ number from
your Mid-West Supply vendor. On the Purchasing Documents per Vendor
tab, you need to find and select your vendor Mid-West Supply first.
Position your cursor in the Vendor field and press F4 again. Start the search
after typing in Country US and your three-digit number (###) as Search
term.

F4

F4
US
###

Double-click on your new vendor to select it. Now that your vendor
number is put in the Vendor field, press Enter or click on
to find the first
RFQ number you have created in the last task.
Double-click on your RFQ to populate the number into the RFQ field on
the Maintain Quotation : Initial Screen. Then click on
or press Enter.

In the Maintain Quotation : Item Overview screen, enter a net price of

32.00 USD. Click on
to select all items.

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32.00

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Then, click on
to display conditions. Here, other discounts and
surcharges included in the quotation could be specified. In our case, just set
the Valid to data to three months from today.

3 months from today

Click on
to go back to the line item overview. Then, click on
to save
your maintained quotation for your Mid-West Supply vendor. The system
acknowledges the changes to your first quotation with a success message.

Repeat this process for the other two RFQs you created. Make sure you use
the above-described search criteria to find the vendors for your number
(###). Enter the following prices:
Dallas Bike Basics

36.50 USD

Spy Gear

35.00 USD

Dallas Bike Basics

36.50
Spy Gear
35.00

Make sure you save both RFQs and receive the system success messages.
Click on the exit icon

SAP AG

to return to the SAP Easy Access screen.

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Evaluate Quotations on Price

Task Evaluate quotations on price.

Time 5 min

Short Description Generate a comparison list for the prices obtained from each of the vendors.
The comparison list ranks the quotations by item from lowest to highest price.
To compare vendor prices, follow the menu path:

Menu path

Logistics Materials Management Purchasing RFQ/Quotation

Quotation Price Comparison

This will produce the following screen.

Enter Purchasing Organization US00, and Collective RFQ RFQ1###.

Select Mean Value Quotation and Determine Effective Price. Then,
select
to execute the price comparison. This shows the following screen.

Click on the exit icon

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US00
RFQ1###
Mean Value Quotation
Determine Effective Price

to return to the SAP Easy Access screen.

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Reject Quotations

Task Reject two of the three quotations.

Time 5 min

Short Description The successful vendor (Mid-West Supply) has been selected using the criteria
of lowest bidder. It is now necessary to notify the unsuccessful bidders that their quotation will
not be accepted. This is accomplished by flagging those vendors needing to be notified.
To flag/reject quotations, follow the menu path:

Menu path

Logistics Materials Management Purchasing RFQ/Quotation

Quotation Price Comparison

This will produce the following screen again.

Enter Purchasing Organization US00, and Collective RFQ RFQ1###.

Select Mean Value Quotation and Determine Effective Price. Then,
select
to execute the price comparison. This shows the following screen.

SAP AG

US00
RFQ1###
Mean Value Quotation
Determine Effective Price

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Determine the Vendor that you are going to do business with (the lowest
priced quotation) by rejecting the other two. To do so, double-click on the
quotation number with 36.50 USD. This will produce the following screen.

Select R (Rejection Ind.) to indicate rejection of this quotation. Click on

. Acknowledge the warning message prompted by the system with Yes and
save anyway.

Repeat the process for the second quotation to be rejected (35.00 USD).
Click on the exit icon

SAP AG

to return to the SAP Easy Access screen.

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Create Purchase Order Referencing an RFQ

Task Create a purchase order with reference to an RFQ.

Time 5 min

Short Description Create a PO by referencing the quotation received from the successful vendor.
Reference is made to the successful quotation and the details are imported into a new PO.
To create a purchase order, follow the menu path:

Menu path

Logistics Materials Management Purchasing Purchase

Order Create Vendor/Supplying Plant Known

If there is no navigation screen on the left side, click on

As selection variant choose Requests for quotations as shown below.

In the following screen, in the Material Number field use the F4 help to
find your chain lock trading good. On the Material by Material Type tab,
select Material Type Trading Goods (HAWA) and enter *### (e.g. *012 if
your number is 012) in the Material field. Then, press Enter or click on .

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Requests for quotations

Trading Goods

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Double-click on your chain lock (CHLO1###) to select it. When your

material number is populated in the Material Number field, make sure that
all other search criteria fields are blank and click on . This will produce a
screen with your three RFQs.

Click on
(Change Breakdown). In the following screen, select Vendor
name in the right table (Column Set) and click on to add it to the Sort
criteria. Then, select vendor name in the left table (Sort criteria) and click
on
to display the vendor name first, then the document number.
After you have confirmed your changes by clicking on
names of your vendors in alphabetic order.

Vendor name

, you will see the

Click on the right part of the Select Layout icon

and choose Change
layout Select Material in the right table (Column Set) and click on to
add it to the displayed columns.
After you have confirmed your changes by clicking on
all three folders, you will see the following screen.

CHLO1###

Material

and expanding

Single-click on the requisition/quotation that you want to reference (MidWest Supply) and select
to adopt the information.

Mid-West Supply

Note: If you try and adopt one of the other quotations you will get a
message that the quotation item is already rejected.
Verify that the system copied the Material number CHLO1###, Quantity
200, three months from today as Deliv. Date, and the Net Price of 32.00
USD.

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CHLO1###
200
3 months from today
32.00 USD

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If the header data is not yet displayed, open the section by clicking on
Header. On the Conditions tab, record the total value of the purchase order
(6,400 USD).
If the line item data is not yet displayed, open the section by clicking on
Item Detail. On the Delivery Schedule tab, select the first line. Then, click
on
below the table to perform a schedule line split.

Acknowledge the red error message by changing the Sched Qty. of the first
line from 200 to 100. Then, enter the following data for the second line:

200 100

Delivery Date

one week after the first delivery

Sched Qty.

100

Purchase Req.

same as previous line

same

Requisn Item

same as previous line

same

Then, click on

1 week after 1st delivery

100

. Verify your item details with the screenshot below.

On the Material Data tab, select InfoUpdate.

InfoUpdate

Then, find the following menu item in the system menu:

Purchase Order Save and Output

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In the following screen, select Output Purchase Order (NEU), Medium

Print output (1), Language English (EN) and select
.

Purchase Order
Print output
English

In the Create Pur. Order :: Output screen, enter Logical destination LOCL,
check indicator Print immediately.

LOCL
Send immediately

Then, click on . Here, click on

and select Send immediately
(when saving the application) as Dispatch time. Go back
and save
your order with . The system will assign a unique purchase order
document number.

Send immediately (when

saving the application)

A similar document to
the one shown below should be printed to your standard printer.

SAP AG

Purchase order document

number

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Click on the exit icon

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to return to the SAP Easy Access screen.

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Display Purchase Order

Task Review your purchase order.

Time 5 min

Short Description Now you want to display electronically what you have sent to your vendor.
To display a purchase order, follow the menu path:

Menu path

Logistics Materials Management Purchasing Purchase

Order Display

This will produce the following screen.

If the purchase order number from the previous step is not already
displayed, click on
(Other Purchase Order).
In the following screen, enter (or find) your purchase order number in the
Pur. order field, select Pur. order and click on
. Then, click
on
to look at the electronic printout. It should be the
document sent to your printer.
Click on the exit icon

SAP AG

twice to return to the SAP Easy Access screen.

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Create Goods Receipt for Purchase Order

Task Create Goods Receipt for Purchase Order

Time 5 min

Short Description Receive into inventory the stock items ordered from Mid-West Supply in the
previous task. A goods receipt document will be created referencing our purchase order thereby
ensuring that we receive the products ordered within the timeframes requested and in quality
condition. Goods on hand will be increased and an accounting document will be generated
recognizing the value associated with these goods.
To create a goods receipt for a purchase order, follow the menu path:

Menu path

Logistics Materials Management Inventory Management

Goods Movement Goods Receipt For Purchase Order GR
for Purchase Order (MIGO)

Make sure that Goods Receipt and Purchase Order are selected in the
dropdown lists. Enter (or find) your PO number in the field next to them.
Then, press Enter which will populate your PO data into the fields.

Change the Quantity from 200 to 100 (remember we requested two

separate deliveries). If the line item in the item overview section is read
only, click on
at the bottom of the screen to close the item detail section.
Then, check OK. SLoc (Storage location) Trading Goods should already
be entered.
Finally, click on
or
to post your goods receipt. The system will
create a unique goods receipt
document.
Click on the exit icon

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Goods Receipt
Purchase Order
your PO number

100

OK
Trading Goods
Goods receipt document
number

to return to the SAP Easy Access screen.

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Verify Physical Receipt of Goods

Task Verify the physical receipt of goods.

Time 5 min

Short Description Review the current inventory information about your chain locks. The stock
overview provides inventory information relative to this material for all organizational levels.
To verify the receipt of goods, follow the menu path:

Menu path

Logistics Materials Management Inventory Management

Environment Stock Stock Overview

Enter Material CHLO1### (replace ### with your number), Plant MI00,
and Display version 1. Then, click on .

CHLO1##
MI00
1

In the Unrestricted use column, the current inventory is displayed. Select

the line with your plants stock and click on
.

Note that there are 100 pieces on stock for unrestricted use and another 100
in on-order stock (still to be delivered to the Miami plant). Click on .
Click on the exit icon

SAP AG

to return to the SAP Easy Access screen.

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Create Invoice Receipt from Vendor

Task Create an invoice receipt from your vendor.

Time 5 min

Short Description Enter an invoice received from Mid-West Supply for 3,200.00 USD
associated with the recent PO and goods receipts. This invoice will be posted to an existing G/L
expense account in your Chart of Accounts and saved as an Accounts Payable to Mid-West
Supply. It will be settled by issuing a check to Mid-West Supply at a later date. The invoice is
presented below in order to support you making the necessary journal entry.

To create an invoice receipt, follow the menu path:

Menu path

Logistics Materials Management Logistics Invoice Verification

Document Entry Enter Invoice

This will produce the following screen.

Enter todays date as Invoice date using F4 and Enter. Check your
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todays date

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Company Code US00. Enter the amount from the invoice above (3,200.00)
in the Amount field and select XI as Tax Code (field next to Tax Amount).
Then, type in INVOICE 00504-### as Text and click on .
Enter (or find) your PO number in the middle of the screen (next to the
drop-down field with Purchase Order/Scheduling Agreement) and press
Enter.

Check the Booking OK check box in your line item. Use the
button to see if the postings are correct.
Finally, click on
generate a
document.

to post your invoice receipt. The system will

unique number for this

Click on the exit icon

to return to the SAP Easy Access screen.

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US00
3,200.00
XI
INVOICE 00504-###

your PO number

Booking OK

Invoice document number

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Display Purchase Order History

Task Display the purchase order history.

Time 5 min

Short Description Review the status for the PO for chain locks. A PO history tab is created
within the PO once a transaction has taken place against the order number to support this
functionality.
To display the purchase order history, follow the menu path:

Menu path

Logistics Materials Management Purchasing Purchase

Order Display

Your PO is displayed automatically. If not, click on

(Other Purchase
Order) and find your PO number. If the line item data is not yet displayed,
open the section by clicking on
Item Detail.
On the Purchase Order History tab, review the activity that has taken place
in reference to this purchase order. Click on your WE (Goods Receipt)
material document number. This will bring you directly to the material
document created when you did your goods receipt.

WE

On the Doc. info tab, select

. You are now looking at the
General Ledger posting that took place in the background when you saved
your goods receipt. Click on
twice to go back to your PO.
On the Purchase Order History tab, click on your RE-L (Invoice Receipt)
document number. This will bring you directly to the invoice document
you just created when you did your invoice receipt.

RE-L

Select
. You are now looking at the General Ledger
posting that happened in the background when you saved your invoice
receipt. Click on
to go back to the invoice document.
On the right side of the screen, click on
(Line item list) to see here
that the invoice is still open, meaning that you have not paid the vendor.
Click on the exit icon
screen.

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three times to return to the SAP Easy Access

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Create Goods Receipt for Purchase Order

Task Create a goods receipt for a purchase order.

Time 5 min

Short Description Receive into inventory the remaining stock items ordered from Mid-West
Supply in the prior step. A goods receipt document will be created referencing our purchase order
thereby ensuring that we receive the products ordered within the timeframes requested and in
quality condition. Goods on hand will be increased and an accounting document will be
generated recognizing the value associated with these goods.
To create a goods receipt for a purchase order, follow the menu path:

Menu path

Logistics Materials Management Inventory Management

Goods Movement Goods Receipt For Purchase Order GR
for Purchase Order (MIGO)

Make sure that Goods Receipt and Purchase Order are selected in the
dropdown lists. Enter your PO number in the field next to them. Then,
press Enter. The data of your purchase order should now be populated into
the fields.
The system should default in the remaining 100 pieces. If the line item in
the item overview section is read only, click on
at the bottom of the
screen to close the item detail section. Then, check OK. SLoc (Storage
location) Trading Goods should already be entered.
Finally, click on
or
to post your goods receipt. The system will
create a unique goods receipt
document.
Click on the exit icon

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Goods Receipt
Purchase Order
Your PO number

100
OK
Trading Goods

Goods receipt document

number

to return to the SAP Easy Access screen.

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Create Invoice Receipt from Vendor

Task Create an invoice receipt from a vendor.

Time 5 min

Short Description Enter an invoice received from Mid-West Supply for 3,200.00 USD
associated with the recent PO and goods receipts. This invoice will be posted to an existing G/L
expense account in your Chart of Accounts and saved as an Accounts Payable to Mid-West
Supply. It will be settled by issuing a check to Mid-West Supply at a later date. The invoice is
presented below in order to support your making the necessary journal entry.

To create an invoice receipt, follow the menu path:

Menu path

Logistics Materials Management Logistics Invoice Verification

Document Entry Enter Invoice

Analogous to the first invoice receipt, enter todays date as Invoice date
using F4 and Enter. Check your Company Code US00. Enter the amount
from the invoice above (3,200.00) in the Amount field and select XI as Tax
Code. Then, type in INVOICE 00515-### as Text and click on .

todays date
US00
3,200.00
XI
INVOICE 00515-###

Enter your PO number in the middle of the screen (next to the drop-down
field with Purchase Order/Scheduling Agreement) and press Enter.

your PO number

Check the Booking OK check box in your line item. Use the
button to see if the postings are correct. Click on
to post your
invoice receipt. The system will generate a unique number for this
document.
Click on the exit icon
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Booking OK

to return to the SAP Easy Access screen.

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Post Payments to Vendor

Task Post payments to a vendor.

Time 5 min

Short Description Issue a payment to your Mid-West Supply vendor to settle their entire
Accounts Payable balance. Note that the amount due to them includes both of the invoices that
you have previously entered. A journal entry is made to Accounts Payable for Mid-West Supply
and to the bank checking account in the G/L.
To post payments to a vendor, follow the menu path:

Menu path

Accounting Financial Accounting Accounts Payable

Document Entry Outgoing Payment Post

In the Post Outgoing Payments: Header Data screen, enter (or select)
todays date as Document Date.
In the Bank data field group, enter Account 100000 (Bank Account), the
amount you are going to pay (6400), and the Text INVOICES 00504-###
& 00515-###.
In the Open items selection field group, enter (or find) the vendor number
for your Mid-West Supply vendor in the Account field (again, use City
Lincoln and Search term ### in the F4 help). Verify your data with the
screenshot below.

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Todays date

100000
6,400.00
INVOICES

Mid-West Supply
Lincoln
###

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CASE STUDY

Select

. This will produce the following screen.

Invoices selected will be displayed in blue. At the bottom of the screen, you
should see that the total amount has been fully assigned.

Click on
to post payments to the Mid-West Supply. The system will
create a unique vendor payment document number.

Click on the exit icon

screen.

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and select YES to return to the SAP Easy Access

Vendor payment document

number

Yes

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Display Vendor Line Items

Task Display the vendor line items

Time 5 min

Short Description Display and confirm the activity and associated balance for the Accounts
Payable for Mid-West Supply. You should see both a credit and debit posting indicating the
receipt of the two invoices and the issuance of a single payment to settle this balance due to MidWest Supply.
To display the vendor line items, follow the menu path:

Menu path

Accounting Financial Accounting Accounts Payable

Account Display Balances

Find or enter the number of your Mid-West Supply vendor (for your
number ###) in the Vendor field, Company code US00, and the current
year as Fiscal year. Then, click on . This will produce the following
screen.

Mid-West Supply
US00
current year

Review for open items. Double-click on the current period to review the
line items that make up the balance. Here, you can see which line items are
open and which ones have been cleared. In your case, you should see a
symbol.
Click on
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three times to return to the SAP Easy Access screen.

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Display Purchase Order History

Task Display the purchase order history.

Time 5 min

Short Description Review the status of POs for chain locks. The PO history tab is updated once
a transaction has taken place against the order number.
To display the purchase order history, follow the menu path:

Menu path

Logistics Materials Management Purchasing Purchase

Order Display

Your PO is displayed automatically. If not, click on

(Other Purchase
Order) and find your PO number. If the line item data is not yet displayed,
open the section by clicking on
Item Detail.
On the Purchase Order History tab, review the activity that has taken place
in reference to this purchase order. Click on the new WE (Goods Receipt)
material document number you should now have two documents. This
will bring you directly to the material document created when you did your
goods receipt.

WE

On the Doc. info tab, select

. You are now looking at the
General Ledger posting that took place in the background when you saved
your goods receipt. Click on
twice to go back to your PO.
On the Purchase Order History tab, click on the new RE-L (Invoice
Receipt) document number you should now have two documents. This
will bring you directly to the invoice document you just created when you
did your invoice receipt.

RE-L

Select
. You are now looking at the General Ledger
posting that happened in the background when you saved your invoice
receipt. Click on
twice to go back to your PO.
On the Delivery Schedule tab, review the line items that have had
deliveries against them. Are there any line items left outstanding?
Click on the exit icon

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to return to the SAP Easy Access screen.

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Display/Review G/L Account Balances and Individual Line Items

Task Display/review the G/L account balances and the individual line items.

Time 5 min

Short Description Display and confirm by individual account number the activity and associated
balances for several accounts in your G/L.
To display G/L account balances, follow the menu path:

Menu path

Accounting Financial Accounting General Ledger Account

Display Balances (New)

Enter G/L account 100000 (Bank Account), Company code US00, and the
current year as Fiscal year. Then, click on . A similar screen to the one
below will appear (amounts might be different for you).

100000
US00
current year

Double-click on the row for the current month (the first column indicates
the SAP periods which are 12 month plus 1 special period).
On the G/L Account Line Item Display G/L View screen, you can see all
debits and credits toward GBIs bank account in the US in the current
month.

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Note: Because all participants in your class (virtual GBI employees) are
posting to the same US bank account, you need to find your postings in the
overall list. In order to do so, take a look at the Text column and search for
your ###, e.g. INVOICES 00504-000 and 00515-000 if your number is
000.

###

Once you find your line item, you should also recognize the Document
Number. Double-click on your line item to display details. When you scroll
down, you should find your user name indicating that you have created the
vendor payment document.

Click on
and then choose
Balance Display screen.

twice to go back to the G/L Account

Repeat the above procedure for the G/L account 300000 (Payables-Trade
Accounts). In the list of documents, you should find your two invoices
(INVOICE 00504-### and INVOICE 00515-###).
Click on the exit icon

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300000

to return to the SAP Easy Access screen.

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