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?
A D V E R T I S E M E N T
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
Following T/Code activities in Material Management
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
What are the Types of Inforecords?
You can create purchasing info records for different procurement types as
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.
A standard info record contains information for standard purchase orders.
The info records can be created for materials and services with and without
A subcontractor info record contains ordering information for subcontract
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.
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
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
As in the case of the pipeline info record, you can store prices for different
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
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
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
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
This is the SAP Language Error that will appear when creating PO with
No short text maintained in language CS (please re-maintain material
Message no. ME 095
No material short text (short description) has been maintained in language CS.
No short text can be adopted from the material master record.
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.