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Annexure-II: ENG-27/Expenditure Sanction (For Material procurement)

Online request for expenditure approval through SAP (Creation and Approval of Purchase
requisition for Material procurement)

For every expenditure incurred by the field, under the below mentioned GL a/c codes, creation of a
maintenance order is mandatory.

1. R & M Buildings and Electrical Fittings 5020801

2. R & M Apparatus and Plants 5020803
3. R & M Motor Vehicles and Launches 5020804
4. R & M Cables 5020805
5. R & M Masts and Aerials 5020808
6. R & M Office machinery & equipment 5020809
7. R & M Staff Quarters 5020811
8. R & M Guest house, Holiday home/IQ 5020814
9. R & M Computer and IT equipment 5020815

If the expenditure is beyond the financial powers of SDE, and requires approval of the competent
authority, creation of a PR is a must. The following screen shots illustrate the procedure on how to create a
direct PR linking to a MO:

An example for the purchase of Tyre is illustrated below:

1. Creation of Maintenance Order

1.Type T-code IW31and press ENTER key

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2. Select Order type & Equipment ID on which MO is to be created

2.Select Order type

3.Click the radio button and select the

equipment and ENTER

Note: In case the Maintenance Order is created on EQUIPMENT, NO NEED to fill data in Plng plant and
Bus. Area. The data will be picked up by the system automatically.

If the MO is created on a Functional location, then before pressing ENTER/clicking on , data in fields
Plng plant and Bus.Area also to be filled.
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3. Create maintenance Order – Header data

4. Enter the short

description of work

5. Enter Estimated Cost

3(a) Input data under COMPONENTS tab

6. Fill the following

fields:
Component
8.Click on SAVE
Quantity

7. Click on Release

(System may not allow to input S.Loc., if the material is not available/not extended to your S.Loc.. In that
case, S.Loc. can be entered while executing MIGO.)
Order will be saved with a 12 digit order number. Note down the order number (130000005295)
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4. Create Purchase Requisition: ME51N

9.Type T-code ME51N and hit ENTER key

5. Select Need Based Requisition from drop down

10. Select Need Based Requisition

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6. In the Header Note, enter the vendor name, Rate, Tax details, taxable amount and total amount.

11. Enter the vendor name, Rate, Tax

details, taxable amount and total
amount.

7. Fill in following under columns:

(i) Account Assignment Category (A) = F(Order)
(ii) Material = material code (In our example: 12005308)
(iii) Quantity = as required
(iv) Delivery date = As required
(v) Plant = Plant code (53xx)
(vi) Stor. Loc. = Storage location code (In our example: 2290)
(vii) PGr. = 051 (For CGM office 050)
(viii) Requisnr = Any text or number of user’s convenience to track the PR (Normally,
requisitioner’s name or HR can be inputted)
(ix) P.Org. = 2000

8. Fill in following under Account assignment tab:

(i) G/L account= Head of account
(ii) Cost Centre = 53xxxxx
(iii) Order = Maintenance Order number generated during MO creation in the beginning
of the process. (In our example: 130000005295 )
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12. Fill in: G/L Account, Cost Center

& PM Order Number

9. In Valuation tab enter the total price of the material (including tax)
Amount: Rs. 7099

13. In valuation tab enter the UNIT price

CAUTION: If the procurement quantity is >1, then exercise caution in entering valuation price. The price
shall be entered related to single UNIT price only. Check the Total Value after pressing ENTER.

10. Click on . When the “Document is OK” click on

11. Newly created PR Document number will appear in the SAP inbox of the initiator.
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12. From SAP Inbox, initiate the work flow as being done in case of other work flows such as, SES
etc..
13. Before initiating/Immediately after initiation of work flow, the initiator is required to send the hard
copy of Eng.27/Approval requesting letter with PR Number superscripted above along with all
relevant Quotations etc.. The hard copy flow can be as followed in the field currently.
14. In case the final approver is DE, the following online WORK FLOW can be adopted.
SDE (PR initiator) > A.O. (C&C) > DE
15. In case the final approver is DGMM, the following online WORK FLOW can be adopted.
SDE (PR initiator) > DE > A.O. (C&C) > DGM
16. In case the final approver is GMM, the following online WORK FLOW can be adopted.
SDE (PR initiator) > DE > A.O. (C&C) > DGM > IFA > GMM
17. After PR has got final approval by the competent authority, the initiator can go ahead with the
work execution. After work execution, a copy of the invoice/bill with PR Number superscripted
above can be sent to SDE (RPC) for creation of P.O.
18. After P.O. is created and approved by the competent authority, user has to execute MIGO (Goods
Receipt) with reference to P.O., to receive the material into his/her storage location.
19. After Goods are received into storage location, User can execute MIGO (Goods issue) with
reference to RESERVATION number auto generated during M.O. creation. This action will debit
the material from the storage location of the requisitioner.
20. The Maintenance Order can be set to TECO status, after MIGO execution.

* - * - *

Note:

For any difficulty during execution of the process, the following officers can be contacted:

1. Sri V.V.R.K. SARMA, SDE (FC), O/o CGMM, STR, Chennai

e-mail: vvrksarma@gmail.com phone: 044-22318120

2. Smt. R. Kumudha, JTO (CPC), O/o CGMM, STR, Chennai

e-mail: rkbsnltn@gmail.com phone: 044-22318317

07-10-2014,
Chennai.