What is Central Value-added Tax and how it is configured?

What is CENVAT (Central Value-added Tax) and how it is configured? Anil Before I am going to explain what is cenvat, you have to under stand the Indian tax Central Excise Duty (BED). It is called as basic excise duty. Every manufacturer is liable to pay the excise duty in various kinds namely Basic Excise Duty, Special Excise Duty, Additional Excise Duty etc., Just think over a product which is reached to a end user, how many manufacturing activities are done. So to reduce the tax burden of the end user, the Govt. of India introduce the MODVAT scheme which is now called CENVAT scheme. Based on this, if any manufacturer purchased a material, which is duty paid, and if it is used for his further manufacturing activity, he can avail this as credit in his book based on the Central Excise Invoice. At the time of selling his manufactured goods, he is liable to pay the excise duty. He can adjust the credit which he has taken into his book and pay the rest. For example: CENVAT availed at the time purchased various goods Rs.20,000 (EXcise duty alone) CENVAT payable for his product at the time sales Rs.25,000 He will pay only Rs.5000 through cash deposit in PLA. This customizing are in SAP CIN Module. If you are having the CIN CD, go through. K. SUNDAR Good Explanation. In addition to this. The CENVAT means, Tax on Value Addition on the goods manufactured according to Central Excise & Customs Act Difinition. Here the value addition means the Additional Services/Activities etc. which converts the Input in to Output, and the output is newly recognised as per the this act as Exciseble goods. Like this the discussion is goes on for definition. In 4.7 SAP version, there is no CIN version seperately, it is available with Standard SAP it self. I hope Mr. Anil Gurjar's query is completely answered.

INBOUND DELIVERY

Inbound delivery does not necessarily mean goods receipt. INBOUND DELIVERY in SAP pertains to all incoming goods, which may refer to either a vendor delivery or a return of a rejected delivery to a customer. It may cover the schedules of deliveries from your vendors/suppliers or even a rejected delivery to a customer. The GOODS RECEIPT portion pertains to the time that you are in the process of receiving the goods (either as a delivery or as a return item). Hence, movement type would vary. CREATING MULTIPLE SERIAL NUMBER 1.It is possible to create several serial numbers for a single material using IQ01. Select the material for which serial numbers are required. Then create the serial numbers one by one entering the different parameters required and you will have the material with different serial numbers.

2. This will depend on the use of the serial numbers. For example, in the automotive industry serial numbers are being used which are attached to a piece of equipment and the equipment is classified. The classification data for each piece of equipment (1 EA, in your case) can contain several numbers assigned to it such as, Engine number, VIN number, etc. If it suits your purpose you can follow this equipment/serial number classification concept using class type 002 (equipment).

SETTLING CONSIGNMENT AND PIPELINE PAYMENTS

RE: MRKO - Settle consignment/pipeline liabilities

Posted by susan.k.gallagher on 10/6/2006 1:42:00 PM Hi Andy, MRKO takes into consideration any movement type that takes material in or out of consignment stock. So it would not consider the 101/102 since this is only a goods receipt. As you probably already know, you do not pay the vendor for consignment stock at time of goods receipt. It is only paid for when it is consumed. So the system would take into consideration the 701, 702, 261, 262 and

any of the 9 series custom movement types which your company requires. I hope this helps. Regards, Susan -----Original Message----From: gardner.at via sap-r3-log-mm [mailto:<email@removed>] Sent: Friday, October 06, 2006 10:13 AM To: Gallagher, Susan K. Subject: [sap-r3-log-mm] MRKO - Settle consignment/pipeline liabilities

I would like to understand which material movements MRKO takes into consideration when it settles. For example would it consider 101,102 261,262 - 701,702 - 901,902's? Is there somewhere I can look this up? Thanks - Andy

Automatic vendor selection

First you need to have created a Source List/Information Record for all Material/Vendor combinations. To do this, make sure you have an "Information Record" and a "Source List" created. Check the "Fixed source of supply" box for the preferred vendor in your Source List. Now, when you run MPS/MRP, the system will automatically assign the preferred vendor to your purchase requisitions. If you would like to automatically assign more than one vendor, set up quota arrangements instead of a fixed source of supply. The system will select the vendor that you chose as the fixed vendor in the source list. If you did not do this, you can assign the vendor yourself. If you are working in an environment where you may have to change the vendor after periodically for some reason (eg. a drop in vendor rating), then you are better off assigning the vendor at the last moment. Changing base unit of measure You first must know the relationship of the two units of measure. This will determine the accuracy of inventory and pricing. Then you will need to know if there are transactions and inventory against the material in question. If so, you will not be able to change the Base UOM until nothing is pending against the material. Jeff Tually posted an excellent procedure to the old SAP-R3-LOG group on Monday, September 30, 2002 that should answer all of your queries. Here it is for your convenience. Here is an outline of what needs to be checked. 1. Production Data: If it is a finished good or a component of a BOM, then remove BOM, remove assignment to Routing/Master Recipe, delete production versions. Delete any process/production

orders or complete then and set status to TECO. 2. Purchasing: the deletion flag must be set in all current and old purchase orders and purchase info recs. Delete entries in source lists, contracts and outline agreements. 3. QM: Make UD on outstanding inspection lots. 4. Planning Data: Delete any forecasts or planned independent requirements or SOP/Flexible planning plans. 5. Sales: Cancel or complete the process for any sales documents (eg orders, deliveries). Remove or disable pricing records. 6. Warehouse Management: Cancel or complete transfer orders, transfer requirements, posting change notices. Ensure that no negative bin stock exists that cannot otherwise be balanced by other positive bin stocks. 7. Physical Inventory: Delete old, obsolete (but still active) physical inventory documents. Post Count, Adjust and close documents, or delete item from active documents. 8. Record previous period stock for the plant (MM03-Accounting). If non-zero then record details by batch and storage location (table MCHBH if using release > 4.0a?). 9. You must remove previous period stock - the previous period in both MM and GL may need to be reopened (or wait until month-end processing when both previous and current periods are open simultaneously). To remove you need to use a transaction such as MI10 or MB1C and use a posting date of the previous period. 10. You must remove any remaining current period stock. 11. Planning Data (cont'd): delete all planned orders. Delete MRP List if any (check with MD05). 12. Costing: Delete any cost estimates. 13. Legacy Systems / Interfaces: Check what impact the change will have. 14. Material Master preparation: * Ensure no alternative unit of measures are being used on the sales / purchasing / work scheduling / plant storage 1 views. * Remove all alternative UoMs from "Extras" 15. CHANGE THE BASE UNIT OF MEASURE. If any errors, then check above steps again. 16. Material Master: * Modify Planned Price 1, standard cost and/or moving average price on costing and accounting views. * Modify any unit-related fields eg gross/net weights, MRP lot sizes / safety stock * Re-create any alternative units of measure and re-assign to correct material master views. 17. Recovery: If you need any of the orders or master data deleted in any of the above steps, then now is the time. 18. Re-enter stock. Do not attempt to add back into previous period especially if using moving average price control (V) - do not back-date.

Project implementation

Successfully Implementing SAP

Implementing a package can be a traumatic affair for both the customer and the vendor. Get it wrong and the vendor may get paid late or have to resort to lawyers to get paid and tarnish their reputation. For the company the new package may not work the way they expected, be late or cost a more than budgeted for and take management will take their eye off running their business. Recently a client asked me what I would consider to be the five most important things one should consider before embarking on an implementation. This isn't a simple question, although there are many factors to think about after some consideration for me the top five are way ahead of the others. My top five factors to consider would be: 1. Set up a Project Board, 2. Secure the resources, 3. Complete the GAP Analysis, 4. Have detailed Cut Over Plans, 5. Train the users. Taking each one in turn: The Project Board The correct set up and operation of the Project Board in my view is major factor in the success failure of the project. The Project Board will consist of the stakeholders, key users and the vendor. The Project Board is part of the governance of the project. The Project Board will meet regularly to ensure that the project plans are created and being executed as planned, moves from stage to stage with all the deliverables being signed off is resourced properly. The Resources Three types of resources are absolutely necessary -- end users, change team and technicians. Early involvement by the end users is absolutely necessary, as they will be the ones living with the system for hopefully many years to come. They will want to feel involved in its implementation. Buy in from the end users of the system is absolutely essential if the system is to have a long and stable life in any organisation. The Change Team will identify the gaps between the package and the business requirements, re-engineer some of the businesses process to cope with the package, train the users to ensure implementation is smooth as possible into the business.

The Technical Team will prepare the systems environment for the package, apply any software fixes from the vendor, implement the software in the best way possible for the organisation set up and tune the software for the particular technical environment. GAP Analysis A through gap analysis will identify the gaps between how the business operates ad its needs against what the package can can't do. For each gap there will be one of three outcomes which must be recorded and actioned, GAP must be closed and customised software can be developed close the gap, GAP must be closed but software cannot be written therefore a workaround is required, GAP does not need to be closed. In simple terms: Gap means small cracks. In SAP world. In information technology, gap analysis is the study of the differences between two different information systems or applications( ex; existing system or legacy system with Client and new is SAP), often for the purpose of determining how to get from one state to a new state. A gap is sometimes spoken of as "the space between where we are and where we want to be." Gap analysis is undertaken as a means of bridging that space. Actual gap analysis is time consuming and it plays vital role in blue print stage. Cut Over Plans Detailed plans need to be developed for cutting over from the old system(s) to the new. Parallel runs of what will happen over the conversion period using test data, convert and watch for a period after wards to ensure nothing unexpected happens. Train Users Well trained users will support and defend the system on site. Unsupportive users will continually undermine the system and eventually it will be replaced. Therefore the more effort you put into helping the users master the system early the better.

Difference between the User Exit & Gap analysis.

Both are quiet a different and has a small relation. User exits are standard gate ways provided by SAP to exit the standard code and we can write our own code with the help of ABAP workbench. its not new functionality which we are trying to build in sap but its slight enhancement within the same code. Gap analysis is start point of Realization and once blue print is finished we have to find the realization of sap system for client requirment and there will be certain gaps when compared to system fit. Those gaps can be closed either by re-engineering of business process to fit with SAP or we have to use USER exits in case of small deviations or complete enhancements with the help of ABAP to fit with the SAP system. *-- V. Sridhar Important T_codes

1. 2. 3. 4.

OMFI - Vendor Confirmation to be mandatory for Purchasing documents OME0 - System Messages for Purchasing OMCQ - System messages for Inventory Management OMEB - Indicator specifying that a p.o.item must not contain an account assignment

SAP Reader

Welcome to the SAPReader home page. SAPReader is a small

FI Questions about GR/IR

1. How do we post the FI transactions after doing MIGO. Does the Migo generate FI postings or do we manually do the posting. If we do it manually what is the T.Code to do it. 2. How do we post the FI transactions after doing MIRO. Does the Miro generate FI postings or do we manually do the posting. If we do it manually what is the T.Code to do it. 3. How do we reverse an Invoice. We go to miro and enter a credit memo. How do we post the reversal entry. In SAP, the moment you save the MIGO transaction, it automatically generates FI document. It will create following entry:Raw Material Stock A/c Dr To GR/IR Clearing A/c In MIGO transaction itself, you can post Excise by choosing Capture and Post Excise Invoice. The FI document will be as follows: RG23A Basic Excise Duty A/c Dr RG23A Education Cess A/c Dr To CENVAT Clearing A/c After doing MIGO, you execute MIRO. In this transaction also, SAP will generate FI document automatically. The entry will be as follows:GR/IR Clearing A/c Dr CENVAT Clearing A/c Dr VAT Setoff A/c Dr To AP-Vendor A/c Reversion of entry of material purchase can be in entered on rejection of material partially or wholly. In this case, you will have to raise a debit note on the vendor. But before raising debit note, you have to first ensure that the Invoice verification of the material (to be rejected) is complete at the time of purchase. Purchase documents cannot be reversed directly like pure financial document entry. To reverse the material document,

following procedure should be followed. 1) Create Return Delivery (MIGO) 2) Reverse the Excise Duty Posted (J1IS) 3) Raise the debit Note. (MIRO) With Compliment by: Rajesh Birari

SAP LIS - Wrong figures in Logistics Information System

Warning - Please test it in developer first. Alert : It can result in data loss or inaccurate data in your LIS table if not done properly. This is bound to happened especially if the users made changes to the Purchase Order and you have set the online updates for your LIS. Fields like Material groups are consider keys fields and should not be change as it somehow impact the updates to LIS. If the figures are wrong for a particular period, you can do a reorganization for all the Purchase Order for the particular months. Assuming that you want to reorganize the whole S012. When you execute OLI3, it will locked any Purchase Order that it is processing. Therefore, it is advisable to run it during off office hours. First Step :

OLI3 - Statistical setup of info structures from purchasing documents Info structure to be set up S012 Save under version &( Tick Delete/create indices Specify the Purchasing Documents or Document Date Name of run S012-1 Tick New run? Date of termination 99.99.9999 Time of termination 99:99:99 Tick Redetermine update group? Tick Update documents?

NPRT - Log for Setup of Statistical Data

Final Step:OLIX - Copy/delete versions of an info structure First Screen

Info structure S012 Processing type Copy + Delete

Second Screen

Source version &( Untick Do not copy initial records Tick Reset target version Untick No automatic period conversion

Now, you can check the figures using transaction MCE5or any of the transaction that uses the table S012.

Use of Invoice Plan in SAP

What is significance of invoice plan and how do we configure in R/3? Through the use of Invoicing Plan for leasing agreements and such like, you aims to considerably reduce the manual data entry effort in the purchasing and invoice verification (A/P) department. The invoicing plan enables you to schedule the desired dates for the creation of invoices relating to the planned procurement of materials or services independently of the actual receipt of the goods or actual performance of the services. It lists the dates on which you wish to create and then pay the invoices. You can have the system create the invoices automatically on the basis of the data in the purchase order, thereby triggering payment of the vendor. It is also possible to enter the invoice for an invoicing plan manually. It is recommended that the invoice shall be created via Logistics Invoice Verification ---> Automatic Settlement --->Invoicing Plan Settlement. This transaction can also run in the background. Following are necessary customizings and preconditions for using the Invoicing Plan functionality in SAP 1) You must maintain the settings in Customizing for purchasing (for example, invoicing plan type, date categories, date descriptions, and date sequence proposals). The related path is IMG ---> Material Management ---> Purchasing ---> Purchase Order ---> Invoicing Plan ...... 2) The Purchasing document with FO Document Type (Framework Order) must be used. This document type requires that a validity period be entered in the PO header. This

specification is adopted in the invoicing plan, provided that this has been predefined in Customizing for the relevant invoicing plan type. 3) The purchase order item must have an account assignment. 4) The Logistics Invoice Verification must be used. 5) The vendor must have agreed to use the automatic invoice creation facility (since we will use automatic settlement to create the invoice). In this case, the 'AutoEvalGRSetmtDel.' indicator must be flagged in the vendor master record. Furthermore, once Purchase Order is created with order type FO, ensure that the indicators for GR/IR control have been set correctly on the item detail screen. The Goods Receipt indicator may only be set in combination with the Goods Receipt Non-Valuated indicator. The Invoice indicator must be set. For the automatic creation of invoices, the ERS (Evaluated Receipt Settlement) indicator must be also set. A further prerequisite for automatic settlement is that a tax code must be entered in the purchase order.

Procedures for copying One Plant to Another

Can anyone give me a step by step process of creating another plant or storage location by copying from an existing one. Celani Ndlovu Plants Definition : /NSPRO-IMG---Enterprise Structure---Definition---Logistic General--Define,copy,delete,check plant---Define Plant (In this, we are defining plants(s) under company which is defined earlier) /NSPRO-IMG---Enterprise Structure---Definition---Logistic General--Define,copy,delete,check plant--- copy,delete,check plant---F6 to copy org. object from plant 0001 to defined plant(s). Storage Location : /NSPRO-IMG---Enterprise Structure---Definition---Materials Management---Maintain Storage Location-New Entries (Define required storage location(s) under different plant(s) ) /NSPRO-IMG---Enterprise Structure---Definition---Materials Management---Maintain Storage Location---Storage Location Description---- New Entries ( enter here addresses of each plants) Rahul

Copy Organizational object Plant using Transaction: EC02. (recommended to Copy from a standard sap plant) Create or copy storage location using :OX09 Shipra 1. Copy existing plant A to new plant B. All of plant As data in throughout the IMG will be created/copied for plant B. In some cases with plant A data that is not desired. In step 3 you must go through and correct invalid entries 2. Correct address information 3. Correct data copied to plant B as plant A (a) In Sales and Distribution -> Shipping -> Picking -> Determine Picking Location -> Assign Picking Locations (OVL3), delete entry where Shipping Point = plant A and Plant = plant B and press save. (b) In Sales and Distribution -> Shipping -> Basic Shipping Functions -> Shipping Point Determination -> Assign shipping points wherever plant B is found the shipping point is plant A. This must be changed to plant B. (c) In Enterprise Structure -> Maintain Structure -> Assignment -> Sales and Distribution -> Assign shipping point to plant delete plant B shipping point from the plant A assignement. (d) In Enterprise Structure -> Maintain Structure -> Definition -> Sales and Distribution -> Define, copy, delete, check shipping point copy shipping point plant A to shipping point plant B. Correct the description in the define section of this node. (e) In Sales and Distribution -> Shipping -> Picking -> Determine Picking Location -> Assign Picking Locations (OVL3), copy plant A entry to plant B entry, changing all data to plant B. (f) Check with Reorder buying group to determine MRP controllers for new plant. Remove plant A MRP controllers from plant B, and add controllers received from reorder buying group. IMG is Materials Management -> Consumption Based Planning -> Master Data -> Define MRP controllers (g) Define special procurement. IMG is Materials Management -> Consumption Based Planning -> Master Data -> Define special procurement type. (h) OMGN Assign customer in Set up stock transport order [Plant].

(i) OMGN in Set up stock transport order [Purchasing Document type]; an entry was created for source plant B and plant A, this entry should have a UB order type and the check box should be off. Each plant needs a plant B UB entry created. (j) OMJ3 Delete incorrect entry in print parameters. Remove entry where plant = plant B & storage location = plant A. Create entry for plant B storage location B (k) Verify entry for new plant exists in OVLT picking output (l) Verify entry for new plant is correct in VP01 4. Manual configuration (a) Create plant customer number and assign to plant in OMGN. (b) OMJ3 set correct printer for plant B (c) OPK8 Set printer for plant for list LG01. This is for production orders. (d) Output determination OVLT (set printer), In addition to above, other changes based on customization in your installation needs to be done as well

MM - Control the Output Format of your Material Numbers

In OMSL, you can define the following: 1. Input and output length of material numbers (A material number can have a maximum of 18 characters). 2. Template for displaying or printing material numbers. You indicate with an underscore any position in the material number that you do not want to contain a template character. 3. Form in which material numbers are stored 4. Output with or without leading zeros The settings are client independent.

Valuation price in PR and how to enter PR without Price

In PR screen layout, you can change field selection for valuation price. In your system, you already tick that field to become optional, but it still require input when PR created. You have already check order type and field selection. So far, when you create PR, there is always a valuation price - Assumption is that SAP gets the PR valuation price from the current unit cost of the material. In your current business process. User are require to input item in PR, even the valuation price of that item is zero/free goods. So, you set field selection valuation price in PR to just optional. But, it didn't work. in SAP help, it is mention that you can set that field to optional or require. As far as the business processes requirements are concerned, the Valuation Price of PRs must be set as mandatory since this is one of the main characteristics to set the Release Strategy based on which the release codes are to be allocated for on-line release of PRs in SAP. In case, this field is optional, once manual PRs are to be maintained, the Release Strategy will not be effective unless end users remember to fill in this Valuation field. What SAP can additionally provide you is to set this field to "Display" only (via Transaction Code OMF2). However, it is not recommendable from the business processes point of view. You can only enter a PR WITHOUT PRICE if you did not tick Invoice Receipt under Valuation. Logically, any items that require an INVOICE RECEIPT must have a price.

Automatic Conversion of PR to PO
You created purchase requisition for various material. During creation of purchase order you used the following path: Purchase Requisition .......Follow on function .........Create Purchase Order ............automatic via purReq. When you mentioned required purchase requisition number and execute, system give error that purchase requisition does not contain any suitable item.

Is there any setting in customization where you can monitor and use that function. In an effort for you to successfully use the Transaction Code ME59 to automatically convert the current PR into PO, then the following criteria should be met: 1) In the Purchasing View of the material master data, the "Autom. PO" field must be clicked; 2) In the Purchasing View of the Vendor Master Data, the "Automatic Purchase Order" field must be clicked; 3) The Outline Agreement or Purchasing Info Record shall be maintained which will allow the automatic copying of unit price and other conditions into PO; 4) The Source List shall be maintained for the nominated vendor which was shown in either the Outline Agreement or Purchasing Info Record. or it might be PR subject to release strategy and not yet released or If you're not using a source list or automatic creation of PO, you may need to assign the requisition to a purchase information record using transaction ME56. Then it should appear in ME58.

converts purchase orders created by the SAP R/3 system into a readable document. Its purpose is to enable companies to receive purchase orders from customers who are using the SAP R/3 system, and to translate these into a format using the supplier's own product codes. The text file produced by SAPReader may then be manually entered into the supplier's system or may be electronically uploaded.

Ability to read different types of IDOC (the format used by the SAP R/3 system) - for example, order amendments and contract orders. The ability to translate a company's ID code into their address using a translation table, enabling purchase orders to be received from many sources.

The ability to translate product codes used by the customer into the product codes and description used by the supplier. Can be scheduled to process incoming orders at any interval desired using System Agent thanks to fully command-line based interface. Easy to use user interface for creation of translation tables with full online help.