Procurement cycle

MM
1 > Determination of requirement
2 >Determination of source of supply
3 >Vander selection
4 >purchase order processing
5 >PO monitoring
6 >Goods receipt
7 >Invoice verification
8 >Payment processing

What is STO (Stock Transport Order)

STO
The stock transport between to plants created by sto.

What is Sub-contracting
Sub-contracting is the 3rd party vendor that we send him raw material and
it gave us product.

What is Vandor Consignment process

We raise the purchase order to the vendor and vendor send the goods to
us and we pay them
Or
The vendor keep there stock in my company premise but when ever we
consume their stock we have to raise the purchase order

Org. levels in procurement process

Basically there are five main org. levels in sap mm

1> Client
Client is a legal term that we required where store all master data and
transection data
Or
From business point of view the client could represent a corporate
group

2> Company code

This is the smallest org unit that represent independent and legal
accounting entity.it is required by law to provide balance sheets and
profit & lost statements
Or
It is smallest org. unit which is used in finance side
mandatory by law

office and it is

3> Plant
Plant is the org unit where all the stock and inventory kept.

4> Storage location

Where the different material of stocks are kept in different location

1> Purchasing organization / purchasing group

An org. unit within logistics that subdivides the enterprise according to
the purchasing requirements

i>

Plant specifics

A purchasing org. is responseble for procuring materials for just one plant

Or
One to one connection
ii>

Cross plant

A purchasing org. is responsible for procuring materials for several

plants .

iii>

Cross company code

A purchasing organization can be responsible for multiple company

codes

SAP Purchase Order

Purchase Order

Goods Receipt

( ME21N )

( MIGO )

Invoice Document
( MIRO )

Type of users

There are 2 type of users in sap

1 > end user
Ends usere are the people who are use sap system in company day by day

2> Sap consultant

Sap consultant who customizing the system as per the business need.
3> Super user / power user

Super user are the user who are the more knowledge then end user and less
than knowledge consultant and the are good for 1 st lavel of support

Types of data in sap

Sap data categorized in 3 type
1> master data
Master data use in transection data ( vendor , material etc )

2> transection data

like we create purchase order invoice etc.
3> customizing data