R & AC hand note book

Friends here i am providing R&AC hand note book. please check.

Download here

R&AC Material

download here

Refrigeration & Air conditioning Material

Friends here i am attaching Word document. please find the attached file,

R&AC Text book by anon_868851094 on Scribd

End of blog spot.

Subcontracting Process in SAP MM

What is subcontracting process? 

Subcontracting is one of the procurement processes available in MM. In this process, components are shared to vendor to get the final product.

Here i will share one example then you clearly understood the Sub-Contract Process in SAP MM.

Eg: In Production industry to manufacture one product it go's through no.of process to complete the product. In this sequence of operations (1,2,3)imagine we have 3 types of operations and we have equipment only for 1st and 3rd but we don't have facility for 2nd operation then in this type of situations we send Semi finished product (i.e After completion of 1st operation) to external Vendor to process the 2nd operation in their premises and send it back to our's location. After receiving the semi finished material we perform 3rd operation on that material in our plant. Like this we get the Finished Product.

In this process sending Semi finished material to vendor and get it back from vendor is called Sub-Contracting Process. Here we pay money to vendor as Sub-Contracting Charges.

The steps involved to complete this Process are attached below.

In PO  we must select  Item Category as Sub-Contracting (L) in Item Level.

Procurement Cycles

Cycles

In real time we go with different types of procurement processes. Some of those are:

1.   Domestic & Import:

In domestic procurement we purchase materials from local vendor of same country. The process is same for Import also but we procure materials from Foreign Vendor. This is the main  difference between Domestic & Import.

In Import procurement we need to pay Custom duties at customs office.

Accounting Entries @ MIGO and MIRO.

In Import additionally Customs value Debited.

Posting Periods

Posting Periods

In business documents (PR, PO) need security. So, to secure these documents we have a concept of Posting Period.

Posting period means it will allow you to post and make changes in the documents only in a specific time period.

T-Codes:

Display Posting periods: MMRV

Change Posting periods: MMPV

To Re-initialize periods other than previous period: MMPI

Procurement Cycle Configuration

Procurement Cycle Configuration

(P2P CYCLE)

1.  Purchase Requisition (PR)

Define Number Ranges:

In this step, you maintain the number ranges for purchase requisitions.

Path:

SPRO-IMG-Materials management-Purchasing-Purchase Requisition-Define Number Ranges.

Select Intervals tab.

Click on insert line option to create New Number Range.

Enter Number range From Number to To Number.

Click on SAVE.

Now new Number Range created.

Define Document Types:

Path:

SPRO-IMG-Materials management-Purchasing-Purchase Requisition-Define Document types.

Select New Entries.

Enter Document type, description, item interval, Number Range interval number.

In filed selection select type NBB (Purchase requisition).

Click on SAVE.

New document type created.

2.  Request for Quotation (RFQ)

Define Number range:

Path:

SPRO-IMG-Materials Management-Purchasing-RFQ-Define Number range.

Select intervals Option to create Number Range.

Select Insert line option.

Enter number range from and to number.

Click on SAVE.

New number range created.

Define Document Type:

Path:

SPRO-IMG-Materials Management-Purchasing-RFQ-Define Document type.

Select New Entries.

Enter document type, description, Number range we created in earlier.

In field selection select ANA (Request for quotation).

Click on SAVE.

New document Created.

3.   Purchase Order (PO)

Define Number Range:

Path:

SPRO-IMG-Materials Management-Purchasing-Purchase Order-Define Number Range.

Select Intervals option.

Select Insert line Option.

                  Enter number range From and To number.

                  Click on SAVE.

              New Number Range Created.

Define Document Type:

Path:

SPRO-IMG-Materials Management-Purchasing-Purchase order-define Document Types.

Select new Entries to create new document.

 Enter document type, description, Number range interval.

In field selection select NBF(Purchase Order).

Click on SAVE.

New document created.

Procurement Cycle in SAP MM

Procurement to Pay Cycle

In MM the main process is P2P Cycle i.e. Procurement to Payment Cycle. It starts with Purchase requisition and ends with Invoice verification. In this process we have different stages. Those are listed below:

Ø Purchase Requisition (PR)

Ø Request for Quotation (RFQ)

Ø Purchase Order (PO)

Ø Goods Receipt (MIGO)

Ø  Invoice verification (MIRO )

Purchase Requisition:

Purchase requisition is a request or instruction to purchasing department to procure a certain quantity of a raw materials or consumables, etc. at certain point of time.

It is an internal document, sends to Purchase Department.

Requisitions can be created either manually or they are auto generated by the system.

Request for Quotation:

In the case of approved vendor is not available for procurement, RFQ will be sent to different vendors to finalize the specific vendor for procurement.

It is an invitation to vendor for providing quotation for supplying the material.

RFQ issued to several vendors shall be maintained in the system and the system shall determine the most favorable quotation submitted.

Purchase Order:

Purchasing order is outgoing document. It is a legal document. Purchase order shall be created with reference to approved purchase requisitions, RFQ, and contracts. Purchase orders shall be identified with the document type and item categories. Purchase order should be created with reference of PR, RFQ or Contract.

Goods Receipt (GR):

Goods receipt in plant will happen when goods received from the Vendor.

Vendor delivered the materials then we perform this process, is called GR.

In this the received material quantity are checked.

Invoice verification:

Invoice is received from vendor after GR, it is verified by company.

Verification of vendor invoice refers to a process in which the business makes payment to vendor.

P2P CYCLE