Purchase

Purchase

Vendor Evaluation for Purchasing

When we create info & Maintain Quotation, by quota we are determining the source. Also in Vendor Evaluation, we are evaluationg vendor. When we are creating PO, from where the vendor will come from? Is it from Quota or Vendor Evaluation?

You define source list requirements at plant level. If a source list requirement exists, you must maintain the source list for each material before you can order it.

The source list serves:

To define a source of supply as "fixed". Such sources count as preferred sources over a certain period of time. For example, the fixed vendor XXXX for material 100XX is ASA Company for the first quarter and BSB Co. for the second quarter of the year.

Select the plants for which you wish to specify a source list requirement

You use the source list to determine the valid source of supply at a certain point in time.
The source list contains all the sources of supply defined for a material and the periods during which procurement from these sources is possible

Following T/Code activities in Material Management module.

Maintain source list - ME01
Display source list - ME03
Display changes to source list - ME04
Analyze source list - ME06
Reorganize source list - ME07
Generate source list - ME05
Display source list for material- ME0M

you make the system settings that are necessary for purchasing operations carried out using source lists.

Source list requirement for materials, It may be necessary to include possible vendors of a material in the source list before the material can be ordered.

The Source list requirement field in the purchasing data of the material master record indicates whether a source list requirement exists for a material.

You can define the Source list requirement at plant level in IMG. Logistics -->Materials management --> Purchasing --> Source list.

Here you can see the plants for which a source list requirement exists

What are the Types of Inforecords?

You can create purchasing info records for different procurement types as follows:

Standard, Subcontracting, Pipeline, Consignment You use this component if you wish to store information on a vendor and a material as master data at purchasing organization or plant level.

Standard

A standard info record contains information for standard purchase orders.
The info records can be created for materials and services with and without master records.

Subcontracting

A subcontractor info record contains ordering information for subcontract orders.
For example, if you subcontract the assembly of a component, the subcontractor info record would include the vendor's
(subcontractor's) price for assembling the component.

Pipeline

A pipeline info record contains information on a vendor's commodity that is supplied through a pipeline or pipes
(oil or water) or by similar means (electricity through the mains).
The info record contains the vendor's price for the consumption of such commodities by the buyer
("pipeline withdrawals"). You can store withdrawal/usage prices for different validity periods.

Consignment

A consignment info record contains information on a material that vendors keep available at their own cost on the orderer's premises.
The info record contains the vendor's price for withdrawals by the orderer from consignment stock.
As in the case of the pipeline info record, you can store prices for different validity periods.

Procedure to Define Both Currency USD and EURO

We are purchasing export item, export item currency is USD. Some time same vendor send item with different currency like EURO. I'm facing problem when we pay to vendor.
In Vendor Master Currency is defined as USD. I can pay in USD.
If I want to pay in EURO, again I have to go vendor master and change USD to Euro vice versa.
Everytime I am changing.
Is there any procedure to define both currency USD and EURO.
According to situation I can select currency.
My local currency is different i.e SAR (Saudi Riyal).

This is a common problem in almost all factories in our group. To simply the matters let me explain the method we use with some numbers.

1) Lets say we raise a PO as follows:
2 items @ $10 = $ 20

2) GRN is raised as per PO

3) Invoice comes from the vendor as
2 items @ Euro 0.80 = Euro 1.60

4) What we do is that we check with our purchasing people whether the Euro to $ convertion from the supplier is beneficial to us, if not it is within our tolerance levels.
Then we process the payment for $ but mention the correct EURO amount in narration. Bank instructions goes for EURO and there will be a Exchange diff entry to the bank rec at the month end.

5) As far as I know you can't maintain multi currency in the vendor master.

6) Another effective method we are adopting is to have two vendor accounts for different currencies.

Language Error when creating Purchase Order

This happens when the language in Material Master (MM02 - Purchase Order Text) and Vendor Master (XD02 - Address - Communication - Language) does not matched.

In the Purchase Order, you can see the language in PO Header - Communications data - Language.

If the Purchase Order have been saved before you change the Vendor Master Language, the PO need to be closed as the language in the PO Header cannot be changed.

This is the SAP Language Error that will appear when creating PO with language mis-matched:

No short text maintained in language CS (please re-maintain material ABCDEFGHIJK)
Message no. ME 095

Diagnosis
No material short text (short description) has been maintained in language CS.

System Response
No short text can be adopted from the material master record.

Procedure
If a material is to be procured from a vendor in a different language, the material short text must first be maintained in this language.

Maintain the short texts in the material master record in those languages in which procurement is normally carried out. In this case, you should at least maintain the short text in language CS.