Source list:

Due to parameter EVO, which is assigned to participants in their user masterdata, the Source Determination indicator has already been set in the header areaof 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 followingquestions:

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 thesystem 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 Menu→Logistics→Materials Management→Purchasing→Master Data→Source List→Follow-On Functions→Analyze.

Define source list requirement at plant level:

R/3 Customizing→Implementation Guide→Materials Management→Purchasing→Source List→Define 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 theaccount assignment data does not have to be specified until you createthe 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 forgroups of materials.

Item category MRecommended for similar materials of the same price. These can be materials with different material numbers or materials without material master records.

item category WRecommended 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 thecontract, you should block the centrally agreed contract as a sourcein the source list for these plants.

In case of centralized contract: Maintenance of plant conditions in centrally agreed contracts is only possible via Edit→Plant 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 supplyfor MRP in the source list (MRP indicator 2).

The procurement indicator F (external procurement) must have been set inthe MRP data of the material master record (exception: you are working withquota arrangement).

Automatic scheduling agreement delivery schedules must be permitted inthe planning run.

Scheduling Agreements With and Without ReleaseDocumentation

You can use scheduling agreements with or without release documentation. Thisis controlled in Customizing, via an indicator, when you define the documenttype for scheduling agreements.

The advantage of working with SA release documentation is that you always havea 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 schedulesCan be used to give the vendor a medium-term overview of yourmaterial requirements.

. Just-in-Time (JIT) delivery schedulesCan be used to inform your vendor of your short-term (near future)requirements. This type of schedule shows requirements per day oreven per hour.

Hint: Delivery schedule lines cannot be generated per hour in theplanning run.

Create SA releases:SAP Menu → Logistics → Materials Management → Purchasing → OutlineAgreement → Delivery Schedule → Create SA ReleaseGenerate SA releases in the scheduling agreement delivery schedule:Edit → Generate Forecast/JIT Schedule

Define document types for scheduling agreement:SAP Customizing Implementation Guide→Materials Management→Purchasing→ Scheduling Agreement → Define Document Types

Create release creation profile:SAP Customizing Implementation Guide→Materials Management→Purchasing→ 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 customersis not available in terms of materials planning.Other goods movements are handled using Sales (SD-SLS). For theprocessing of customer consignment business, the following transactionsare of significance:

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

Detailed information on these points is available in the SAP Library underSAP R/3 Application Components→Logistics→Sales & Distribution (SD)→Sales (SD-SLS)→Handling of Special Business Transactions in Sales→Consignment Processing.

Returnable Packaging with Customers (SpecialStock Indicator V)

Returnable packaging with the customer comprises multi-trip packingand 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 theprocessing of returnable packaging with customers, the followingtransactions are of significance:

Returnable packaging shipment

Returnable packaging material is entered as a separate item orsub-itemin a sales order. There is then a transfer posting fromownwarehouse stock to stock of returnable packaging with customer. Thetransaction is not billing-relevant.

Returnable packaging pick-up

The return of the returnable packaging by the customer is handledusing a special order type. There is a posting transferring the materialback 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 wishesto keep or which has been damaged while on his premises usinga special order type. In this case, a goods issue for the relevantquantity is posted both from your own valuated stock and from thestock of returnable packaging with the customer. This transaction

is billing-relevant.

Detailed information on these points is available in the SAP Library underSAP R/3 Application Components→Logistics→Sales & Distribution (SD)→Sales (SD-SLS)→Handling of Special Business Transactions in Sales→Returnable Packaging Processing.

Externally Owned Special StocksExternally owned special stocks are stocks that are located within yourown 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, theyare managed at storage location level. All externally owned special stocksare able to be inventoried.

Returnable Transport Packaging (Special Stock Indicator M)

The delivery of the materials using transportation aids cannot bepreplanned in the purchase order. However, in the case of a goodsreceipt against a PO, returnable transport packaging can be entered as anon-ordered item. In the transaction for goods movements MIGO, you candefine a separate default value for the movement type for the special stocktype M. If you wish to enter material as returnable transport packaging inan additional item, choose Transport Equipment.

You enter the return of returnable transport packaging to the vendor orcarrier 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 startingsituation is as shown in the following table:Vendor Quota quota-allocatedquantityMax. quantity 1xA 3 100 250 xB 1 200Due to the fact that the 1x indicator has been set, a planning run will resultin the generation of one requisition for 250 pc with vendor A as the sourceand one requisition for 250 pc with vendor B as the source.Without the 1x indicator, the planning run would generate two requisitionsfor 250 pc with vendor A as the source.

Invoicing Plans

There are two kinds of invoicing plan: periodic invoicing plans andpartial invoicing plans.

Prerequisites for invoicing plan

You must maintain the settings in Customizing for purchasing (forexample, invoicing plan type, date categories, date descriptions, anddate 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.

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.

3. 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.

4. 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.

5. A further prerequisite for automatic settlement is that a tax code must be entered in the purchase order.

6. Choose the Invoicing Plan button in the itemdetails on the Invoice tab page

Automatic settlement with regard to invoicing plans:SAP Menu→Logistics Materials Management→Logistics Invoice Verification →Automatic Settlement→Invoicing Plan Settlement.Customizing settings for invoicing plans:R/3 Customizing→Implementation Guide→Materials Management→Purchasing→Purchase Order→Invoicing 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 ismandatory 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 indicatorThe 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.