Version Management in SAP

Version Management enables you to generate and manage different version so external document. So this is the revision level of document i.e. version 0 (Original), version +1 (Revision). That provides the user to keep the record of various changes in document.

Version management is a standard functionality of SAP. If the version management is activated for any plant then at the time of any changes (Print Relevant), one new version will be created and it will ask to fill some mandatory fields i.e. Reason, Text, Requested by etc. It will keep the record of old value and new value also.

Basic Transaction codes of MM

Tcode	Description
MM01	Create Material Code
MM02	Edit Material code
MM03	Display Material code
MM04	Display changes
MM06	Flag material for deletion
MM17	Mass Maintenance
ME01	Create Source list
ME02	Change Source list
ME03	Display Source list
ME11	Create Info Record
ME12	Change Info Record

Physical Document

Purpose:

This component allows you to carry out a physical inventory of your company’s warehouse stocks for balance sheet purposes. Various procedures can be implemented for this.

Scope of function:

In the SAP system, a physical inventory can be carried out both for a company’s own stock and for special stocks. Inventory for a company’s stock and for special stocks (such as consignment stock at customer, external consignment stock from vendor, or returnable packaging) must be taken separately (in different physical inventory documents), however.

Note that the blocked stock returns and the stock in transfer cannot be inventoried. If these stocks are still to be counted in a physical inventory, you must transfer post these stocks to other stocks capable of inclusion in a physical inventory.

Excise Duty Pass on Scenario i.e. Trader Invoice

Below document a typical dealer invoice scenario in India.

B is a dealer and purchase materials from its principal A by paying Base amount (say Rs 100 ) & Excise duty (say BED 12%, Ecess 2% & SEcess 1%), comes to Rs 115 and applicable VAT (say 5%)on it. Thus landed value comes to Rs 120.75. Again B sells this material to a manufacturer C for a base amount (say Rs 125) and pass on the excise value he paid to A (Rs 15,ie Rs 125 + 15 =140) and applicable VAT (say 5%) on it. Thus landed value comes to (Rs 140 + Rs 7 =147).

This document explains how C (manufacturer) can handle this scenario in SAP:

Release Procedure for Purchase Orders

In this document, you set up a release procedure for purchase orders (POs).

How do you set up a release procedure for POs?

To set up the release procedure, you must make a series of settings in Customizing. This section provides you with an overview of the necessary activities.

Release Procedure for Purchase Requisition

In SAP we have two types of release procedures:
Release Procedure without classification - In this method PR can be released item by item only.

Release Procedure with classification - This procedure is applicable to PR, PO, Service entry sheet, RFQ and scheduling agreement and in this method these documents can be released at Header level.
So from the above types we can say that PR can be released at Item and Header level but the external documents can be released only at Header level.

Excise duty in PO – Condition based pricing procedure

In SAP we have two types of Excise determination TAXINN and TAXINJ.

TAXINN is only supports condition-based excise determination, whereas TAXINJ support Formula based excise determination. Here I will explain condition based excise determination.

Step-1

Creating Condition Records for Excise Duty.

1. In the command field, enter FV11 and choose the conditions for Excisable and Non Excisable plant as mentioned under:

Excisable Plant:

JMOP – Excise Duty (12.5%)
JMX1 – Setoff for Excise duty (100%)
JEC1 – Ecess (2%)
JEX1 – Setoff for Ecess (100%)
JSEP – S&HEcess (1%)
JHX1 – Setoff for S&HEcess (100%)

SAP MM Module basic concepts

SAP is the abbreviated term for Systems, Applications, and Products. The SAP ERP (Enterprise Resource Planning) software package was developed by SAP AG in Germany and is comprised of different modules i.e. MM, SD, FI, CO, PP, QM and many others. These allow businesses to deliver excellent customer satisfaction while taking full control of daily operations to maximize results.

Among the modules is the SAP MM (Materials Management) module, which is part of the logistics area and is often integrated into production and manufacturing facilities that utilize SAP. The SAP MM module handles the procurement and inventory functions of organizations that engage in large volumes of purchasing by giving them hands-on control of inventory management, batch management, purchasing, client categorization, valuation, invoice verification and procurement process, just to name a few. 

For those concerned about materials management, the SAP MM module is integrated with other modules such as Sales and Distribution (SD), Warehouse Management (WM), Production Planning (PP), Quality Management (QM), Finance (FI) and Controlling (CO) so external and internal aspects are factored into each decision stage. It is therefore imperative that a deep understanding of how these modules work alongside the SAP MM module is fully in place to generate accurate input and output information in a quick and reliable manner.