Source list:

Due to parameter EVO, which is assigned to participants in their user master

data, the Source Determination indicator has already been set in the header area
of the purchase requisition.

Functions of the Source List

The source list contains the allowed and prohibited sources of a material in a certain plant over
a certain period. Each source is defined by a source list record. The source list has the following
purposes:

Restricting the selection of sources during the source determination process.

Defining a source as a fixed source.
Blocking a source

Each source list record consists of the following data:

Validity period
Key source data
Fixed source
Procurement plant
Blocked source
MRP
Before generating source list records, you should answer the following
questions:

For which materials or plants are source list records to be generated?

Are only outline agreement items, only info records, or both to be
taken into account?
For which period are the source list records that are to be generated
to be valid?
Do source list records already exist for the materials for which you
wish to generate source list records? If so, you must decide how the
system is to treat the old records (delete or leave unchanged).
Which indicators (fixed, blocked MRP-relevant) should be set?

Source list analysis

you can find out whether source list records exist for materials of a plant within a certain
period.

Analyze source list:

SAP MenuLogistics

Materials

ManagementPurchasing

Master

DataSource

ListFollow-On

FunctionsAnalyze.

Define source list requirement at plant level:

R/3 CustomizingImplementation

GuideMaterials

ManagementPurchasing

Source

ListDefine

Source List at Plant Level.

Creation of Source list option

Manual
Creation from within an outline agreement
Creation from within an info record
Automatic:
Caution: Automatic functionality is not suitable for updating your source lists because
source list records cannot be automatically generated just for the new sources.

Outline Agreement
An outline agreement does not contain data on specific delivery dates or quantities to be
delivered.
You notify the vendor of quantities and delivery dates either in a specialized form of
purchase order called a contract release order, or in a delivery schedule.

Item category in contract

Subcontracting
Consignment
Services
With material group
Material unknown
Standard

Use of account assignment U in Contract.

The use of account assignment category U means that the
account assignment data does not have to be specified until you create
the purchase order.

There are three types of contract:

Quantity contract(MK)
Value contract(WK)
Distributed contracts(DK)

Contracts for Material Groups

The contract-specific item categories M (material unknown) and W
(material group) are available to represent contractual agreements for
groups of materials.
Item category M
Recommended for similar materials of the same price. These can be materials with different
material numbers or materials without material master records.
item category W
Recommended for materials belonging to the same material group but with different prices.
Item category W can only be used in value contracts.

Hint: If certain plants are not to be allowed to release against the

contract, you should block the centrally agreed contract as a source
in the source list for these plants.

In case of centralized contract: Maintenance of plant conditions in centrally

agreed contracts is only possible via EditPlant

Conditions.

Scheduling agreement item categories:

Standard
Consignment
Subcontracting
Third-party
Text

Pre- requisites for Automatic Scheduling

Agreement Schedule Lines

The scheduling agreement must be clearly designated as a source of supply

for MRP in the source list (MRP indicator 2).
The procurement indicator F (external procurement) must have been set in
the MRP data of the material master record (exception: you are working with
quota arrangement).
Automatic scheduling agreement delivery schedules must be permitted in
the planning run.

Scheduling Agreements With and Without Release

Documentation
You can use scheduling agreements with or without release documentation. This
is controlled in Customizing, via an indicator, when you define the document
type for scheduling agreements.
The advantage of working with SA release documentation is that you always have
a record of when you sent which delivery schedule information to your vendor,
which you can display at any time.
There are two types of scheduling agreement (SA) release:
. Forecast (FRC) delivery schedules
Can be used to give the vendor a medium-term overview of your
material requirements.
. Just-in-Time (JIT) delivery schedules
Can be used to inform your vendor of your short-term (near future)
requirements. This type of schedule shows requirements per day or
even per hour.
Hint: Delivery schedule lines cannot be generated per hour in the
planning run.

Create SA releases:
SAP Menu Logistics Materials Management Purchasing Outline
Agreement Delivery Schedule Create SA Release
Generate SA releases in the scheduling agreement delivery schedule:
Edit Generate Forecast/JIT Schedule
Define document types for scheduling agreement:
SAP Customizing Implementation GuideMaterials ManagementPurchasing
Scheduling Agreement Define Document Types
Create release creation profile:
SAP Customizing Implementation GuideMaterials ManagementPurchasing
Scheduling Agreement Maint. Rel. Creation Profile for Sched. Agmt w.
Rel. Docu.

Consignment Stock with Customer (Special Stock Indicator W)

This is consignment material belonging to your company, and that is
located on the customer.s premises. Consignment stock with customers
is not available in terms of materials planning.
Other goods movements are handled using Sales (SD-SLS). For the
processing of customer consignment business, the following transactions
are of significance:

. Consignment fill-up
. Consignment withdrawal
. Consignment pickup
. Consignment return

Detailed information on these points is available in the SAP Library under

SAP R/3 Application ComponentsLogistics

Sales

& Distribution (SD)

Sales

(SD-SLS)Handling

of Special Business Transactions in Sales

Consignment Processing.

Returnable Packaging with Customers (Special

Stock Indicator V)
Returnable packaging with the customer comprises multi-trip packing
and packaging materials or transportation aids belonging to your company, which were
delivered to the customer together with the ordered materials and which are currently located
on the customer.s premises. Stocks of returnable packaging with customers are not available. in
terms of materials planning.
Other goods movements are handled using Sales (SD-SLS). For the
processing of returnable packaging with customers, the following

transactions are of significance:

Returnable packaging shipment

Returnable packaging material is entered as a separate item or

sub-itemin a sales order. There is then a transfer posting fromown
warehouse stock to stock of returnable packaging with customer. The
transaction is not billing-relevant.

Returnable packaging pick-up

The return of the returnable packaging by the customer is handled

using a special order type. There is a posting transferring the material
back to normal plant stock. The transaction is not billing-relevant.

Subsequent charge for returnable packaging

You can invoice the customer for returnable packaging that he wishes
to keep or which has been damaged while on his premises using
a special order type. In this case, a goods issue for the relevant
quantity is posted both from your own valuated stock and from the
stock of returnable packaging with the customer. This transaction
is billing-relevant.
Detailed information on these points is available in the SAP Library under
SAP R/3 Application ComponentsLogistics

Sales

& Distribution (SD)

Sales

(SD-SLS)Handling

of Special Business Transactions in Sales

Returnable Packaging Processing.

Externally Owned Special Stocks

Externally owned special stocks are stocks that are located within your
own company but belong to a vendor or customer.
SAP R/3 recognizes the following types of externally owned special stock:

. Vendor consignment stock

. Returnable transport packaging
. Salesorderstock
. Projectstock

Since these special stocks are located on your company.s premises, they
are managed at storage location level. All externally owned special stocks
are able to be inventoried.

Returnable Transport Packaging (Special Stock Indicator M)

The delivery of the materials using transportation aids cannot be

preplanned in the purchase order. However, in the case of a goods
receipt against a PO, returnable transport packaging can be entered as a
non-ordered item. In the transaction for goods movements MIGO, you can
define a separate default value for the movement type for the special stock
type M. If you wish to enter material as returnable transport packaging in
an additional item, choose Transport Equipment.
You enter the return of returnable transport packaging to the vendor or
carrier using reversal movement types 502 M or 562 M.
Quota Arrangement in Material Requirements Planning

Example of maximum lot size with 1x indicator:

There is a requirement for 500 pc of a certain material. The starting
situation is as shown in the following table:
Vendor Quota quota-allocated
quantity
Max. quantity 1x
A 3 100 250 x
B 1 200
Due to the fact that the 1x indicator has been set, a planning run will result
in the generation of one requisition for 250 pc with vendor A as the source
and one requisition for 250 pc with vendor B as the source.
Without the 1x indicator, the planning run would generate two requisitions
for 250 pc with vendor A as the source.

Invoicing Plans
There are two kinds of invoicing plan: periodic invoicing plans and
partial invoicing plans.

Prerequisites for invoicing plan

You must maintain the settings in Customizing for purchasing (for

example, invoicing plan type, date categories, date descriptions, and
date sequence proposals).
The purchase order item must have an account assignment.
You must use Logistics Invoice Verification.
The AutoEvalGRSetmt Del. indicator must be selected in the vendor master record.
We recommend that you use document type FO (framework order). This document type
requires that a validity period be entered in the PO header.

Creation of Invoicing plan

1. Create a purchase order with the order type FO.
2. Maintain the desired material or service, its quantity and price, and the account
assignment category. In the item details, enter the relevant account assignment data for
the item.

3.

4.
5.
6.

Caution: The account assignment category cannot be changed once you have created the
item. Only the detailed data dependent on the account assignment category, such as the
specification of the cost center in the case of account assignment category K, can be
changed at any time.
Ensure that the indicators for GR and IR control are set correctly on the item detail
screen. The Goods Receipt indicator may only be set in combination with the Goods Receipt
Non-Valuated indicator.
The Invoice indicator must be set. For the automatic creation of invoices, the ERS
(evaluated receipt settlement) indicator (indicator for automatic settlement) must be set.
A further prerequisite for automatic settlement is that a tax code must be entered in the
purchase order.
Choose the Invoicing Plan button in the itemdetails on the Invoice tab page

Automatic settlement with regard to invoicing plans:

SAP MenuLogistics

Materials ManagementLogistics

Invoice Verification Automatic

SettlementInvoicing

Plan Settlement
.
Customizing settings for invoicing plans:
R/3 CustomizingImplementation

GuideMaterials

ManagementPurchasing

Purchase

OrderInvoicing

Plan.

Subcontracting
If a purchase requisition for subcontracting with a source of supply is to be generated by
materials planning, the following prerequisites must be satisfied:

A special procurement key for subcontracting must be set in the material master record
(MRP 2).
Atleast one source of supply(subcontracting info record or outline purchase agreement
with subcontracting item) must exist.
TheMRP-Relevant indicator must have been set for a source of supply in the source list. If
several sources of supply exist, a quota arrangement with the special procurement type
L for subcontracting can be created.
A BOM containing the components to be provided must exist.

The components are not automatically included in the purchase requisition if you have defined
a special procurement key for subcontracting in the material master record (MRP view 2) and if
no BOM has been created for the material.

In connection with the subcontracting process in purchasing,

you should note the following:

If you change the PO or schedule line quantity, the quantities of the components to be
provided are changed proportionally provided that the Fixed Quantity indicator has not
been set.
If you change the delivery date, only the date on which the components are required is
recalculated; the components themselves are not redetermined from the BOM. If the
components are to be redetermined, a new BOM explosion must be carried out

The use of item category L has the following effects on a PO item:

The PO item can be created with or without a material master record.

The indicators for goods receipt and invoice receipt are set on thebasis of the Purchase
Order Item Linked indicator.
The GR indicator cannot be changed. This means that a goods receiptmust be posted
against the purchase order. However, the IR indicator can be unset.
The indicator for non-valuated goods receipt is not proposed; neither can it be set
manually.

Hint: The controls that are dependent on the item category have a higher priority than
the corresponding controls based on the account assignment category.

Vendor master:
You use the account

group to determine:

Thefieldstatus
Whether a vendor master record is used as a one-time account master record
Use of the data retention levels vendor subrange and/or plant
The number range interval and the type of number assignment (internal or external)
. The permissible partner roles

Partner Determination
When defining partner schemas, you can set various indicators:
No Change indicator: If it is not subsequently to be possible to change the partner you must set
the No Change indicator in the partner schema.
Mandatory indicator: The Mandatory indicator determines whether or not a partner role is
mandatory in a certain object
Higher Levels indicator: If the Higher Level indicator has been set, the system searches for
partner roles at purchasing organization level if none exist at the plant or vendor subrange
levels.
End indicator
The End indicator specifies the time of partner determination. If the End indicator has been set,
the partner roles are defaulted from the vendor master record. If the indicator has not been set,
the partner roles are determined when a purchasing document is created.
If partner determination takes place immediately, the plant from the default values is used for
the partner determination process. Only if the process takes place at the end are the plants that
were actually entered in the items taken into account. If a PO contains several items with
different plants, the partners are determined at purchasing organization level, irrespective of
whether or not the Higher Level indicator has been selected.