IMPLEMENTATION OF SAP FOR

MATERIALS MANAGEMENT MODULE

AN INTERNSHIP REPORT

Submitted by

KHUSHI MUNDRA [RA1811033010054]

Under the Guidance of

Dr. P G OM PRAKASH
(Assistant Professor, Department of Computational Intelligence)

in partial fulfillment of the requirements for the degree of

BACHELOROF TECHNOLOGY
in
COMPUTER SCIENCE ENGINEERING
with specialization in SOFTWARE ENGINEERING

DEPARTMENT OF COMPUTATIONAL INTELLIGENCE

COLLEGE OF ENGINEERING AND TECHNOLOGY
SRM INSTITUTE OF SCIENCE AND TECHNOLOGY
KATTANKULATHUR - 603203
MAY 2022
 Department of Computational Intelligence
SRM Institute of Science & Technology
Own Work*Declaration Form

This sheet must be filled in (each box ticked to s how that the condition has been met). It must be
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you submit– work will not be marked unless this is done.
To be completed by the student for all assessments

Degree/Course : B. Tech (CSE with specialization in Software Engineering)

Student Name : Khushi Mundra

Registration Number : RA1811033010054

Title of Work : Implementation of SAP for Materials Management Module

I hereby certify that this assessment compiles with the University’s Rules and Regulations relating
to Academic misconduct and plagiarism**, as listed in the University Website, Regulations, and
the Education Committee guidelines.

I confirm that all the work contained in this assessment is my own except where indicated, and
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• Given the sources of all pictures, data etc. that are not my own
• Not made any use of the report(s) or essay(s) of any other student(s) either past or present
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I understand that any false claim for this work will be penalized in accordance with the
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DECLARATION:
I am aware of and understand the University’s policy on Academic misconduct and plagiarism and I certify
that this assessment is my own work, except were indicated by referring, and that I have followed the good
academic practices noted above.

Khushi Mundra
RA1811033010054

i
 SRM INSTITUTE OF SCIENCE AND TECHNOLOGY
KATTANKULATHUR–603 203

BONAFIDECERTIFICATE

Certified that 18CSP110L Semester Internship Report titled

“IMPLEMENTATION OF SAP FOR MATERIALS
MANAMAGEMENT MODULE” is the bonafide work of “KHUSHI MUNDRA
[RA1811033010054]” who carried out the internship under my supervision.
Certified further, that to the best of my knowledge the work reported herein
does not form any other project report or dissertation on the basis of which a
degree or award was conferred on an earlier occasion on this or any other
candidate.

SIGNATURE SIGNATURE
Dr. P G Om Prakash Dr. R Annie Uthra
Assistant Professor Head of Department
Dept. of Computational Intelligence Dept. of Computational Intelligence
School of Computing School of Computing
SRMIST SRMIST

INTERNAL EXAMINER EXTERNAL EXAMINER

ii
 ACKNOWLEDGEMENTS

I would like to express my gratitude to all those who gave me the possibility to complete this
internship and report. We would like to show our gratitude to Dr. R. Annie Uthra, Head of the
department, Computational Intelligence, School of Computing, for giving us the opportunity to
do the final year Internship. A special thanks to my final year project coordinators Dr. Alice
Nithya whose help, stimulating suggestions and encouragement helped us in coordinating the
internship and writing the report and my guide Dr. P G Om Prakash who propelled the idea of
this project and his full effort in guiding the team in achieving the goal as well as his
encouragement to maintain my progress on track. I would also like to thank our domain head
Dr. Kottlingam and other domain faculties who reviewed my internship with much assistance
and advocacy along the journey.

Khushi Mundra

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OFFER LETTER

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 ABSTRACT
In today's world, every business tries to increase the efficiency and
effectiveness of its functioning and operations. They want to reduce operating costs
while improving their performance. The worldwide enterprise resource planning
systems market saw a growth of 9% taking the sales to reach $39 billion all over
the world. This market is predicted to grow at a quick pace, with a total market
value of $49.5 billion by 2025. The majority of the companies in the world use
Enterprise Resource Planning Systems for this purpose. Multiple modules make up
an enterprise resource planning system, and they all work together to centralise
corporate data from many departments. Nowadays, technologies like blockchain,
cloud computing, etc., have also helped develop enterprise resource planning
systems. Companies have also started using agile methodologies in the
implementation of enterprise resource planning systems. The purpose of this paper
is to examine how enterprise resource planning systems have progressed and aided
in the streamlining of company procedures. It will also analyse how agile
methodology techniques have impacted the enterprise resource planning
deployment process.

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 TABLE OF CONTENTS
S. NO. TITLE PAGE NO.
ACKNOWLEDGEMENTS iii
OFFER LETTER iv
ABSTRACT v
TABLE OF CONTENTS vi
LIST OF FIGURES viii
LIST OF TABLES x
1. INTRODUCTION 1
1.1 Company Introduction 1
1.2 IBM Consulting 2
1.3 Enterprise Resource Planning 2
1.4 Supply Chain Management 2
1.5 SAP 3
2. LITERATURE SURVEY 4
2.1 Literature Survey 4
2.2 Observations 7
3. SYSTEM ARCHITECTURE AND DESIGN 9
4. KEY DATA STRUCTURE 10
4.1 Key Data Structure MM – Enterprise Structure 10
4.1.1 Plant 10
4.1.2 Storage Location 10
4.1.3 Purchase Organisation 11
4.1.4 Purchasing Group 11
4.2 Key Data Structure MM – Material Master 12
4.2.1 Material Type 12
4.2.2 Material Group 12
4.2.3 Valuation Class 13
4.3 Key Data Structure MM – Vendor Structure 13
4.3.1 Vendor Account groups 13
4.3.2 Payment Terms 14
4.3.3 Incoterms 15
4.4 Key Data Structure MM – Procurement Document Type 15
4.4.1 Purchase Requisition Document type 15
4.4.2 RFQ/Quotation Document type 15
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 4.4.3 Purchase Order Document type 16
4.4.4 Contract Document Type 16
4.5 Release Strategy for Purchase order 16
5. CONFIGURATION 18
5.1 Organisation Structure in Materials Management 18
6. PROCESS DEFINITION 21
6.1 Key Business Requirements 21
6.2 Process Model 21
6.3 Process Steps 22
6.3.1 Procurement of stock material 22
6.3.2 Outline Agreement – Contract 23
6.3.3 Outline Agreement – Scheduling Agreement 24
6.3.4 Procurement by Vendor Consignment 25
6.3.5 Procurement by Subcontracting 26
6.3.6 STO – Inter Plant 26
6.3.7 Import Procurement 27
6.3.8 Physical Inventory 28
7. AS IS PROCESS MAPPED TO SAP TO BE PROCESS 29
7.1 As is – To be 29
8. UNIT TESTING 31
9. CONCLUSION 41
REFERENCES 42
APPENDIX
A CONFERENCE PRESENTATION 46
B PUBLICATION DETAILS 47
C PLAGIARISM REPORT 48

vii
 LIST OF FIGURES
S. NO. FIGURE NAME PAGE NO.
1.1 IBM’s Approach 1
3.1 System Architecture Diagram 9
5.1 Organisation Levels 17
5.2 Configuration I 18
5.3 Configuration II 18
5.4 Configuration III 19
5.5 Configuration IV 19
5.6 Configuration V 19
6.2 Process Model 20
6.3.1 ME51N 22
6.3.2 ME54 22
6.3.3 ME41 22
6.3.4 ME49 22
6.3.5 ME21N 22
6.3.6 ME28 22
6.3.7 MIGO 22
6.3.8 MIRO 22
6.3.9 ME31K 23
6.3.10 ME21N 23
6.3.11 ME28 23
6.3.12 MIGO 23
6.3.13 MIRO 24
6.3.14 ME31L 24
6.3.15 ME38 24
6.3.16 ME21N 24
6.3.17 ME28 24
6.3.18 MIGO 24
6.3.19 ME51N 25

viii
6.3.20 ME54 25
6.3.21 ME21N 25
6.3.22 ME28 25
6.3.23 MIGO 25
6.3.24 MIRO 25
6.3.25 ME21N 26
6.3.26 ME28 26
6.3.27 MIGO 26
6.3.28 MIRO 26
6.3.29 MMBE 26
6.3.30 ME21N 27
6.3.31 MIGO 27
6.3.32 MIRO 27
6.3.33 ME21N 27
6.3.34 ME28 27
6.3.35 MIGO 27
6.3.36 MIRO 28
6.3.37 MI01 28
6.3.38 MI04 28
6.3.39 MI20 28
6.3.40 MI03 28
A.1 ICSCDS 2022 Acceptance Mail
A.2 ICSCSD Paper Presentation Certificate
B.1 IEEE Explore Site Screenshot
C.1 Plagiarism Report

ix
 LIST OF TABLES
S. NO. TABLE NAME PAGE NO.
4.1.1 Plant 10
4.1.2 Storage Location 11
4.1.3 Purchase Organisation 11
4.1.4 Purchasing Group 12
4.2.1 Material Type 12
4.2.2 Material Group 12
4.2.3 Valuation Class 13
4.3.1 Vendor Account groups 14
4.3.2 Payment Terms 14
4.4.1 Purchase Requisition Document type 15
4.4.2 RFQ/Quotation Document type 15
4.4.3 Purchase Order Document type 16
4.4.4 Contract Document Type 16
6.3.1 Procurement of stock material 22
6.3.2 Outline Agreement – Contract 23
6.3.3 Outline Agreement – Scheduling Agreement 24
6.3.4 Procurement by Vendor Consignment 25
6.3.5 Procurement by Subcontracting 26
6.3.6 STO – Inter Plant 26
6.3.7 Import Procurement 27
6.3.8 Physical Inventory 28
7.1 As is – To be 29
8.1 Unit Testing 31

x
 CHAPTER 1
INTRODUCTION

1.1 Company Introduction

IBM, or International Business Machines Corporation, is a notable computer
manufacturer in the United States, with a sizable local and international market share.
Armonk, New York is home to the company's headquarters.
The Computing-Tabulating-Recording Company was created in 1911 through the
amalgamation of three smaller businesses that specialised in the development of punch-card
tabulators and other office equipment. Thomas Watson, a brilliant marketer who became
general manager in 1914 and eventually acquired complete control of the organisation in
1924, gave the company its current name in 1924. Watson grew a floundering business into
the nation's largest provider of punch-card tabulating systems for government and private
organisations. He also developed an exceptionally disciplined and competitive sales staff,
customising the company's custom-made tabulating technologies to the specific needs of
specific customers. IBM has refocused five times during the last century, enabling the
progress of industry and society.
i. Hardware and systems management era (Scales, translator systems, etc.)
ii. The mainframe era (Apollo mission, floppy disk, etc.)
iii. The PC era (PC, IBM consulting group, etc.)
iv. The services era (IBM net.commerce, IBM e-server, etc.)
v. The software era (Watson, Watson health, etc.)
vi. The cloud and cognitive era (present) (IBM services launch (GBS + GTS), Red hat
acquisition, etc.)

IBM has successfully transitioned from a hardware-centric to a services-oriented

organisation. In 1960, IBM generated 90% of income from hardware and system
management. It is now less than 10%.

Fig. 1.1 IBM’s Approach

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1.2 IBM Consulting
IBM Consulting has emerged as a new ally in the fight against the latest corporate
rules. It embraces an open working technique by bringing together a diverse range of voices
and technologies. As a result, it is able to rapidly integrate new technologies that have a
profound impact on the way businesses are conducted. According to the report, improving
modern business and the globe will be impossible without the use of open systems, open
technology, open innovation, and an open mindset. It aspires to work with others, to develop,
to expand, and to rethink the possibilities.

1.3 Enterprise Resource Planning

Business resource planning software is referred to as ERP, or enterprise resource
planning, and it is intended to improve the efficiency of a company's resources. Using this
suite of software components, business owners can more quickly and effectively achieve their
objectives. The organization's needs dictate the deployment of an ERP system. It's not
uncommon for small and medium-sized businesses to use ERP software these days.
Controlling inventory, improving human capital management, managing client relationships,
and tracking orders are just a few of the many advantages of implementing enterprise resource
planning. Implementing an ERP system in accordance with business needs has numerous
advantages.

1.4 Supply Chain Management

Overseeing a product or service from beginning to end, from raw materials to
delivery, is known as supply chain management. With the help of "links," a company can
establish a supply chain that moves a product from raw material suppliers to organisations
that interact directly with end customers. In the eyes of customers and the general public, the
supply chain is the company's most outward appearance. A company's reputation and long-
term prosperity are better safeguarded the more effective and profitable supply chain
management is. A well-executed supply chain management system reduces production costs,
waste, and lead times. Supply chain management has the following characteristics: -
i. Connected: Traditional ERP and B2B connectivity technologies, as well as
unstructured data derived from social media, can be used to access more traditional
data sets.
ii. Collaborative: Cloud-based commerce networks are increasingly being used to
facilitate cross-enterprise communication and cooperation among suppliers.
iii. Cyber-aware: The supply chain's systems should be strengthened and secured against
cyber-attacks and hacks, and this should be a top priority for the organisation..
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iv. Cognitively enabled: In the modern supply chain, the AI platform acts as a control
tower, aggregating and coordinating decisions and actions across the supply chain.
Self-learning machines and robots have taken over the majority of the supply chain.
v. Comprehensive: Analytical capabilities must be scalable in real time using data. The
investigation will be thorough and completed on schedule. The supply chain of the
future is too slow.

1.5 SAP
Systems, Applications, and Products in the Data Processing Industry (SAP) is an
acronym. In addition to SAP as a company, SAP is also a trademark for the ERP software.
Plattner, Hopp, Hector, and Tschira created the European multinational in 1972. They create
software that makes it easier for businesses to keep track of their operations and interactions
with customers. Every facet of an organization's management can be handled by the SAP
system, which consists of numerous modules that work together seamlessly. SAP software
provides a single view of the truth to various corporate functions by centralising data
management. This enables firms to handle complex business processes more successfully
by offering employees from multiple departments with easy access to enterprise-wide real-
time analytics across the organisation. The upshot is that companies may speed up processes,
improve operational efficiency, boost production, and enhance customer satisfaction, all of
which lead to higher profits. Businesses of all sizes and industries can operate financially,
adapt, and grow sustainably with SAP's help.
Small and medium-sized businesses, as well as large multinationals, can benefit
from the company's software solutions. Standard apps, industry solutions, platforms, and
technologies can be used to design and create any business process. The application collects
and analyses data on a single platform, from the procurement of raw materials to production
and customer satisfaction. Additionally, SAP solutions can be used to predict, for example,
when a machine will need to be serviced, or how income will rise over the next six months.
To make the most of operational data and customer feedback, SAP enables businesses to
link operational information with customer feedback and experience data. As a result,
companies are able to better understand and serve their customers. SAP's goals are to:-
Encouraging a better client relationship - It helps companies provide better services,
reduce delivery times, and boost their output. A software map of a firm's functional
operations allows a more effective planning and coordination of corporate resources in order
to maximise profit by boosting outcome accuracy and enhancing operational flexibility.

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 CHAPTER 2
LITERATURE SURVEY

2.1 Literature Survey

[1] T. Mladenova has provided an overview of the OSS Enterprise Resource
Planning (ERP) software. It evaluated sixteen open-source programmes based on their
capabilities, the technologies that were used to build them, and the database that was used
to store the results. Furthermore, it detected both common and atypical modules in the
systems under investigation. The availability of OSS ERP, in addition, enhances the
possibility of new system features being deployed utilising cutting-edge technological
solutions, according to the findings of the paper. Rather than web-based apps, ERP systems
are increasingly reliant on mobile applications (some systems have mobile applications that
have been reviewed in this paper). Work has become more accessible as a result of the
proliferation of mobile applications.
[2] According to the study's authors, S. E. Hamdi and A. Abouabdellah,
implementing an enterprise resource planning system (ERP) might be a tough task. It is a
sociological phenomenon that has a great deal to do with information technology.
Involvement in ERP efforts involves a number of departments, and the risk associated with
certain of these departments is particularly high. According to the findings of research and
an examination of relevant literature, this holistic approach emphasises the relevance of
human capital in the performance of integrated logistics operations (ILOs). It is possible to
categorise implementation into three separate phases: pre-implementation, implementation,
and post-implementation phases.
[3] This paper, written by Sunardi and Maryam as part of a group, examines the ERP
implementation in Indonesia's Unit of Finance Ministry and the various parts that make up
the system's design. Jobs are completed more swiftly and properly with the help of ERP
systems. In addition to being advantageous to the organisation, it facilitates decision-
making. The technique of a study includes the following steps: completing a literature
review, collecting data, and finally analysing that data. ERP software can be used to increase
productivity by automating processes. Enterprise resource planning (ERP) is a tool that
assists businesses in managing their operations and workflows.
[4] Cloud ERP solutions, according to S. Tongsukai, N. Taskin, and N Mathrani,
have only recently arisen and are gradually displacing traditional ERP systems, which the
authors claim is due to the authors' research. Additionally, cloud ERP systems offer a
number of advantageous characteristics, such as a straightforward installation process, low

4
rates, rapid upgrades, and the ability to quickly recover or back up data using a range of
devices, such as a computer or tablet. As a result of the necessity for both hardware and
software installations, the cost of implementing traditional ERP systems was significantly
greater. Cloud ERP, on the other hand, does not require the presence of a separate team to
monitor it on a continuous basis (CSPs).
[5] A. Rabaya and K. Graffi offered ERP cloud solutions as a solution to the
challenges associated with traditional enterprise resource planning systems. Three key
issues were addressed in this piece of writing: The following are the concerns at hand:
• Cloud service providers and their customers sign service-level agreements (SLA).
• Having an ERP standard based on the cloud.
• Cloud-based ERP has a reluctance from customers.
A service agreement must be in place between the customer and the service provider.
Nonetheless, cloud ERP should be used to develop it rather than the standard ERP system.
It is possible to standardise on the cloud the essential ERP functionality, and then add other
modules on top of it.
[6] A new system is built by the case company and the planning and decision-making
processes are improved, according to J. Leu, A. Krische, Y. Lee, L. J. Lee, and Y. Huang,
among others. The use of an ERP-based planning system proved successful in this instance.
As part of the design of decision logic, the approach was built by applying the notion of
constraints.
[7] ERP project execution is dangerous, according to B. Z. Cadersaib, Y. Ahku, N.
G. Sahib-Kaudeer, M. H. -M. Khan, and B. Gobin. As a result, essential abilities must be
learned by team members in order to make the implementation less stressful. They should
be familiar with ERP theory, principles, and architectures. They should also be familiar with
business terminology, data warehousing, financial acumen, technical abilities such as server
management, and so on.
ERP initiatives need soft skills, management, as well as technical and functional
knowledge. As a result, the personnel responsible for implementing these projects should
be well-versed in both general and ERP-specific abilities in order to maximize productivity.
[8] S. T. Alanazi, M. Akour, M. Anbar, and A. Alsadoun provide a quality model
that predicts whether ERP implementation will be successful or not. The model's qualities
include Functionality, Reliability, Usability, Efficiency, Maintainability, and Portability. It
contrasts the suggested model with other similar products on the market. It finds that their
model is more thorough than the others since the fundamental assessment feature,
functioning, was overlooked by the others.

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 [9] According to the authors, H. Inacio and R. P. Marques, extensive research has
been conducted on Internal Control and ERP as separate issues, but very little research
exists integrating the two. Given the reliance of businesses on ERP systems, control must
be implemented in these systems, enhancing operational efficiency, security, and
credibility.
[10] Authors S. M. Faizi, S. Rahman and K. Hopkins claim that agile methodology
can be used to implement ERP projects more effectively. The Scaled Agile Framework was
used for big ERP projects (SAFe). Because of this, companies may adopt ERP in pieces and
make adjustments to their plans as needed. SAFe is a framework that brings together the
best of the world's biggest companies to work together in harmony.
[11] According to the authors, J. J. A. Baig, A. Shah, and F. Sajjad, the effectiveness
of an ERP deployment is based on quality assurance and quality control. As a result, it is
critical to modify specific strategies to make this execution manageable. Agile
methodologies are becoming more popular because they increase team and client
communication, cooperation, and progress visibility. It also improves one's ability to adjust
to new situations. ERP practitioners hold three views on the usefulness of agile techniques
for improving ERP installation quality. 70% believe that, depending on the situation and
demand, the agile approaches adopted may increase the quality of ERP installation. Because
selecting agile approaches based on context is difficult, 25% believe that the complete agile
framework should be used. The remaining 5% believe that agile and ERP deployment are
mutually incompatible since agile focuses on the client while ERP installation focuses on
the product.
[12] According to the authors, S. Nagpal, S. K. Khatri, and A. Kumar, ERP
implementation approaches and frameworks have seen rapid growth, and academics have
sought to capture a diversity of ERP deployment methodology and frameworks. Extensive
variety of implementation methodologies have attempted to include agile ideas. There is a
new paradigm shift in ERP deployment approach that increases overall customer acceptance
and happiness while also speeding up ERP installations.
[13] The authors R. R. Kosala, S. F. Wijaya, Meyliana and H. Prabowo have stated
that the implementation of agile ERP helps iterations demonstrate the point that
configurations without modification might assist business processes. Workflows become
more effective and enhances the performance of organization. By leveraging the agile
approach to tackle this project management within ERP installation, we can use the concept
of business process management. It is an effective business strategy to overcome the
complexity of ERP deployment. By incorporating the values from principles of agile

6
method, the success rate of ERP deployment may improve but the risk of failure is reduced.
On the other hand, when it directs to changes in business processes that takes place during
the creation of system, the agile methodology highlights adaptability. As an outcome, while
dealing with gaps and failure reasons in ERP deployment, the agile model for ERP is an
alternative that we can explore. The agile ERP approach is capable of enabling iterations to
show how the process of configuration enhances business processes without modification.
Hence it increases productivity and overall performance.
[14] According to authors, H Prabowo, S. F. Wijaya, R. R. Kosala and Meyliana,
the installation problem of ERP is primarily concerned with leadership, project
management, technology, process, organisation, people, external, technical, and
methodology. All these features have a very significant impact on the simplicity with which
an ERP system can be implemented. The study contributes by recognising the possibilities
for agile techniques to be used as an approach to reduce the complexity of ERP deployment.
The key features of agile methodologies include supply chains, virtual enterprises,
concurrent engineering, and adaptability to changing environments in both iterative and
incremental phases. All these phases create an efficient business value while minimising
complexity, customer needs, and delivery functions. These major components are important
in decreasing the complexity of ERP implementations.
[15] The authors, S. Lal, S. Chand, A. Devi and S. Chen states that with the
introduction of latest technologies and online architectures, the conventional ERP model has
evolved into cloud ERP to target a larger client base and more effective company strategies.
For many businesses, migrating their ERP systems to Cloud has become a common practice.
In terms of faster service delivery and query execution, edge computing can surpass cloud
ERP solutions. Edge computing may also be deployed in a multitude of ERP systems and
modules. Cloud service providers must encourage interface authentication and authorisation
semantics, as much as they enhance user context security on a frequent basis.

2.2 Observations
The study as a whole shows how difficult it is to implement ERP systems. There
have been numerous attempts in recent years to simplify things while still enhancing
effectiveness. Different ways have been taken to deal with this problem. To name a few,
there's everything from open-source software to cloud computing to mobile apps. While all
of these technologies have a pre-determined condition that must be met in order to deploy
them, the opposite is also true. Since this technique is system-specific rather than a general
response, it is not universally applicable. There are also high failure rates associated with
7
diverse methodologies, making the decision for organisations to implement ERP software
even more challenging.

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 CHAPTER 3
SYSTEM ARCHITECTURE DIAGRAM

Fig. 3.1 System architecture diagram

The three core ERP modules, i.e., human resources, finance, operations. These three are then
connected with supply chain management, product lifecycle management, and business
intelligence. Data is entered in the ERP system via consultants. The system is customized
according to company’s specifications and needs. Some sub modules are also added to
manage some minor departments in the company. Implementation of the ERP system is done
according keeping in mind the company’s working style. The employees of the company are
also trained in using the software during the implementation period. There are six
implementation phases – discovery & planning, design, development, testing, deployment,
and support. The implementation period can be from 6 months – 48 months. The
implementation is done by various teams depending upon the module like materials
management, finance, product management, etc.

9
 CHAPTER 4
KEY DATA STRUCTURE

4.1 Key Data Structure MM – Enterprise Structure

It describes all the Key Data Structures (KDS) for Material Management, necessary
for enabling the business processes in Capital Industries defined under the Process
Definition Document for Material Management and making them operational with requisite
controls and business rules. This will serve as reference for system settings and
configuration in Realisation Stage. It lists out the KDS which are required to be defined or
to be adopted from standard SAP process prescribed for use in processes in the Material
Management module. The list however excludes those SAP standard KDS that are not
identified for specific use but may not be deleted from production client for technical or
pragmatic reasons.

4.1.1 Plant
A plant is a logistical organisational unit that structures the firm from the production,
procurement, plant maintenance, and material planning perspectives. It refers to a
production facility or branch of a business. The material is valued at the plant level.

Plant (4 Char Code) Description

BI05 SAN JOSE GRP 2
BI06 PALO ALTO GRP 2
Table 4.1.1 Plant
Usage:
• Material valuation is at the Plant level.
• Plant is used in all Transactional/ Master data of MM.
• Authorization is at the Plant level.
•

4.1.2 Storage Location

A storage location is a type of organisational unit that enables the separation of
material stocks inside a plant. Inventory management is carried out on a quantity basis at
the storage location level within the plant.

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 Plant Storage Location (4 Char Code) Description

BI05 101 Raw material

102 Finished
103 Hazardous material
Table 4.1.2 Storage Location 1

Plant Storage Location (4 Char Code) Description

BI06 SL01 Raw Material 2

SL02 Accessories
SL03 Components
Table 4.1.2 Storage Location 2
Usage:
This variable is used to keep track of inventory, and physical inventories are performed at the
Storage Location level. This field is for reporting purposes.

4.1.3 Purchase Organization

The Purchasing Organization is an organisational level responsible for negotiating
purchase conditions with vendors for one or more plants. It is legally obligated to carry out
purchase contracts.
Purchase Organization Description
(4 Char Code)
PO11 POrg for BII
PO12 POrg for BAI
Table 4.1.3 Purchase organisation
Usage:
• This Organization object is used to Purchase documents/ Master in the system.
• This Organization object is used for authorizations.
• This Organization object is used for reporting.

4.1.4 Purchasing Group

The key to a buyer or group of buyers in charge of certain purchasing activities is
the Purchasing Group.

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 Purchasing Group Description
G01 PGRP Z020
G02 PGRP Z022
Table 4.1.4 Purchasing Group
Usage:
This Organization element is used to Create Purchase documents/ Master in the system.
This Organization element is used for authorizations.
This Organization element can be used reporting.

4.2 Key Data Structure – Material Master

4.2.1 Material type
Material Type is a classification that subdivides material with same attributes into
groups. This decides the numbering range for a material and the type of numbering range
(Internal/External). Quantity and value updates required for a material, is decided at the
material type and valuation level. Use T Code: OMS2 to create customized material types.
No.
Material Qty Value Price
Description Range
Type Update Update Control
Type
RAW3 Raw Material External √ √ V

HA03 Semi-finished External √ √ V

FE03 Finished Product External √ √ S

Table 4.2.1 Material Type

Usage: Material Type decides the numbering ranges for the materials. This field also plays a
major role in account determination for a material.

4.2.2 Material Group

Material group is a subcategory under a Material Type. This is mainly used for
reporting purpose.

Material Group Material Group Description

M301 Raw Material
M302 Semi-finished
M303 Finished
M304 Hazardous
M305 Services
Table 4.2.2 Material Group
12
 Usage: Material Groups are used for reporting.

4.2.3 Valuation Class

A valuation class is a key to differentiate account determination by material type of
materials. This helps in performing automatic account determination linking to G / L
accounts.
• All materials of the same material type can be assigned to only one valuation class except for
split valuation.
• A material type can have multiple valuation class(s).
• Material type(s) are linked to valuation class(s) through a key called ‘Account Category
Reference’.

No. No.
Acct. Grp. Description From No. To No.
Range Type
BI03 BII2 Vendor 2C 0002008900 0002008999 External
BII Import 2E
BV03 40008000 40008999 External
Vendors
BII Service 2G
BS03 40009000 40009999 External
Vendors
BA03 BAI2 Vendor 2D 0002009000 0002009999 External
BAI Import 2F
BAV3 2000055600 2000055999 External
Vendors
BAI Service 2H
BAS3 200040000 200049999 External
Vendors
Table 4.2.3 Valuation Class
Usage - Automatic Accounting determination, during goods movement postings.

4.3 Key Data Structure – Vendor Structure

4.3.1 Vendor Account Groups

The account group is a feature used to classify vendor master records. The account
group helps define the following criteria:

13
1. Number ranges XKN1
2. Partner functions (Ordering party, invoicing party etc)
3. Certain Field Selections for the vendors.
The following account groups are proposed for the BII and BAI:

Description Acct Category Ref Val. Class

Raw Material A301 V301
Semi-Finished A302 V302
Finished A303 V303
Hazardous A304 V304
- A305 V305
Table 4.3.1 Vendor Account Group

4.3.2 Payment Terms

Defining payment conditions, which include cash discount percentages and payment
terms, is essential.
Payment Terms Code Payment Terms Description

On immediate payment 10%cash discount

KM-D
Within 30 days 5% cash discount
Within 60 days Due net

On immediate payment 10%cash discount

KM-F Within 60 days 5% cash discount
Within 120 days Due net
On immediate payment 10%cash discount
KM-O Within 15 days 5% cash discount
Within 20 days Due net
Table 4.3.2 Payment Terms

14
4.3.3 Incoterms
These are International Commercial Terms and Conditions. Incoterms are used in
the Purchase Order to identify the terms and conditions of shipments. The following are the
standard Incoterms available in the system:

Code Description
CFR Costs and freight

Usage
For a shipping transaction to be successful, the sender and recipient must adhere to a set of
globally agreed processes known as Inco terms. These procedures must be followed by both
parties involved.

4.4 Key Data Structure – Procurement Document Type

The procurement documents are the core component of SAP MM Module. A
procurement document type defines number ranges for the respective procurement
document. This can be one of the parameters to trigger the appropriate approval strategy.
The following are the list of document types identified for Capital Industries:

4.4.1 Purchase Requisition Document Type

Document Type From No. To No.

(4 Char Code) Description Internal External Internal External
Purchase
PR3 0000360000 0000410000 0000400000 0000450000
Requisition
Table 4.4.1 Purchase requisition document type

4.4.2 RFQ/ Quotation Document Type

Document
From No. To No.
Type
Description Internal External Internal External
(4 Char Code)

Request For
RFQ3 0000260000 0000310000 0000300000 0000350000
Quotation

Table 4.4.2 RFQ/Quotation document type

15
 4.4.3 Purchase Order Document Type

Document
Type From No. To No.
Description Internal External Internal External
(4 Char Code)
PO3 Standard PO 0000700000 0000110000 0000900000 0000150000
Table 4.4.3 Purchase order document type

4.4.4 Contract Document Type

Document
Type From No. To No.
Description Internal External Internal External
(4 Char Code)

Quantity
CO3
Contract
0000160000 0000210000 0000200000 0000250000
CON3 Value Contract

Table 4.4.4 Contract document type

** As per standard SAP, number ranges are at Document Type level. Number range is
required plant-wise for Capital Industries.

4.5 Release Strategy for Purchase Order

Purchasing requisitions and purchase orders must be approved by the release
strategy. The strategy detailed the release codes that must be used to release (approve) a
complete purchase request or a requisition item (with or without classification), as well as
the order in which approvals must occur. The purchase request and purchase order must be
approved by the supervisor before they may be released.

The characteristics for release of purchase requisition are:

• Plant
• Purchasing Group

The characteristics for release of purchase order are:

• Plant
• Purchasing Group

16
 Release Indicators: B, R
Release Class Release Group Release Strategy
Purchase Requisition PRCLASS_06 R3 KR
Purchase Order POCLASS_06 L3 MG

Parameters:

Release code Hierarchy

KM Purchasing Manager
RG Managing Director

17
 CHAPTER 5
CONFIGURATION
5.1 Organisation Structure in Materials Management
Configuration is the process of customising SAP software by selecting specific
capabilities from a list of those provided by the software, very similar to establishing
defaults. It is what you do to enable the system to carry out your business processes in the
manner in which you desire (configures the system to meet the needs of your business by
using the existing data). It makes use of the enterprise software's inherent flexibility to add
fields, edit field names, modify drop down lists, and add buttons.

While creating a new organisation, the following organisational levels have to be

defined in the system:

Fig 5.1 Organisation Levels

In the SAP system, organisational levels correspond to a company's legal or
organisational structures. The establishment of organisational levels is a critical step in your
project, as it is a necessary precondition for all following actions.
We may analyse your enterprise's structural and process organisations and then
reconcile them with the SAP structures. After an organisational structure has been formed,
it may be difficult to change it. Several instances of configuration during the initial stages
of establishing a new organisation:
• Maintain Company Codes for Materials Management:
This option enables the maintenance of business codes that include a period in
addition to the fiscal year. This code identifies a business/organization.

18
 • Define Attributes of System Messages:
Occasionally, the system will prevent us from saving a document if its information
is incomplete. In such circumstances, the system generates a series of alerts indicating the
most likely source of the error.
• Define Number Ranges:
When we generate a buy requisition, we assign it a unique number called the
purchase requisition number. We can define a numerical range manually, or the system can
do so automatically.
• Define Document Types:
Numerous sorts of documents are generated for POs, PRs, and contracts, among
others. These can be customised for individual purchasing organisations.
Some other examples of configurations in SAP are:

Fig 5.2 Configuration I

Fig 5.3 Configuration II

19
Fig 5.4 Configuration III

Fig 5.5 Configuration IV

Fig 5.6 Configuration V

20
 CHAPTER 6
PROCESS DEFINITION

6.1 Key Business Requirements

• Procurement of Stock Material – Domestic

• Consumable Procurement

• Outline Agreement - Contract and Scheduling Agreement

• Blanket PO (framework order)

• Procurement by means Vendor Consignment

• Procurement using Subcontracting

• STO - Intra and Inter Company

• Stock Transfer with Split Valuation

• Procurement of Service

• Import Procurement

• Physical Inventory

6.2 Process Model

Fig. 6.2 Process Model

21
6.3 Process Steps
6.3.1 Procurement of Stock Material

Step T-Code Description Menu Path

Logistics → Materials Management →

1 ME51N Purchasing → Purchasing Requisition →
Create

Fig. 6.3.1 ME51N

Logistics → Materials Management →

2 ME54 Purchasing → Purchase Requisition →
Release → Individual Release

Fig. 6.3.2 ME54

Logistics → Materials Management →

3 ME41 Purchasing → RFQ/Quotation → Request
for Quotation → Create

Fig. 6.3.3 ME41

Logistics → Materials Management →

4 ME49 Purchasing → RFQ/Quotation → Quotation
→ Price Comparison

Fig. 6.3.4 ME49

Logistics → Materials Management →

5 ME21N Purchasing → Purchase Order → Create →
Vendor/Supplying Plant Known

Fig. 6.3.5 ME21N

Logistics → Materials Management →

6 ME28 Purchasing → Purchase Order → Release →
Collective Release

Fig. 6.3.6 ME28

22
 Logistics → Materials Management →
Inventory Management → Goods
7 MIGO
Movement → Goods Receipt → For
Purchase Order → GR for Purchase Order

Fig. 6.3.7 MIGO

Logistics → Materials Management →

8 MIRO Logistics Invoice Verification → Document
Entry → Enter Invoice

Fig. 6.3.8 MIRO

6.3.2 Outline Agreement - Contract

Step T- Description Menu Path
Code

Logistics → Materials Management →
1 ME31K Purchasing → Outline Agreement →
Contract → Create

Fig. 6.3.9 ME31K

Logistics → Materials Management →

2 ME21N Purchasing → Purchase Order → Create →
Vendor/Supplying Plant Known

Fig. 6.3.10 ME21N

Logistics → Materials Management →

3 ME28 Purchasing → Purchase Order → Release →
Collective Release

Fig. 6.3.11 ME28

Logistics → Materials Management →

Inventory Management → Goods
4 MIGO
Movement → Goods Receipt → For
Purchase Order → GR for Purchase Order

Fig. 6.3.12 MIGO

23
 Logistics → Materials Management →
5 MIRO Logistics Invoice Verification → Document
Entry → Enter Invoice

Fig. 6.3.13 MIRO

6.3.3 Outline Agreement – Scheduling Agreement

Step T-Code Description Menu Path

Logistics → Materials Management →

Purchasing → Outline Agreement →
1 ME31L
Scheduling Agreement → Create → Vendor
Known

Fig. 6.3.14 ME31L

Logistics → Materials Management →

Purchasing → Outline Agreement →
2 ME38
Scheduling Agreement → Delivery
Schedule → Maintain

Fig. 6.3.15 ME38

Logistics → Materials Management →

3 ME21N Purchasing → Purchase Order → Create →
Vendor/Supplying Plant Known

Fig. 6.3.16 ME21N

Logistics → Materials Management →

4 ME28 Purchasing → Purchase Order → Release →
Collective Release

Fig. 6.3.17 ME28

Logistics → Materials Management →

Inventory Management → Goods
5 MIGO
Movement → Goods Receipt → For
Purchase Order → GR for Purchase Order

Fig. 6.3.18 MIGO

24
 6.3.4 Procurement by Vendor Consignment
Step T-Code Description Menu Path

Logistics → Materials Management →

1 ME51N Purchasing → Purchasing Requisition →
Create

Fig. 6.3.19 ME51N

Logistics → Materials Management →

2 ME54 Purchasing → Purchase Requisition →
Release → Individual Release

Fig. 6.3.20 ME54

Logistics → Materials Management →

3 ME21N Purchasing → Purchase Order → Create →
Vendor/Supplying Plant Known

Fig. 6.3.21 ME21N

Logistics → Materials Management →

4 ME28 Purchasing → Purchase Order → Release →
Collective Release

Fig. 6.3.22 ME28

Logistics → Materials Management →

Inventory Management → Goods
5 MIGO
Movement → Goods Receipt → For
Purchase Order → GR for Purchase Order

Fig. 6.3.23 MIGO

Logistics → Materials Management →

6 MIRO Logistics Invoice Verification → Document
Entry → Enter Invoice

Fig. 6.3.24 MIRO

25
 6.3.5 Procurement by Subcontracting
Step T-Code Description Menu Path

Logistics → Materials Management →

1 ME21N Purchasing → Purchase Order → Create →
Vendor/Supplying Plant Known

Fig. 6.3.25 ME21N

Logistics → Materials Management →

2 ME28 Purchasing → Purchase Order → Release →
Collective Release

Fig. 6.3.26 ME28

Logistics → Materials Management →

Inventory Management → Goods
3 MIGO
Movement → Goods Receipt → For
Purchase Order → GR for Purchase Order

Fig. 6.3.27 MIGO

Logistics → Materials Management →

4 MIRO Logistics Invoice Verification → Document
Entry → Enter Invoice

Fig. 6.3.28 MIRO

6.3.6 STO – Inter Plant

Step T-Code Description Menu Path

Logistics → Materials Management →

1 MMBE Inventory Management → Environment →
Stock → Stock Overview

Fig. 6.3.29 MMBE

26
 Logistics → Materials Management →
2 ME21N Purchasing → Purchase Order → Create →
Vendor/Supplying Plant Known

Fig. 6.3.30 ME21N

Logistics → Materials Management →

Inventory Management → Goods Movement
3 MIGO
→ Goods Receipt → For Purchase Order →
GR for Purchase Order

Fig. 6.3.31 MIGO

Logistics → Materials Management →

4 MIRO Logistics Invoice Verification → Document
Entry → Enter Invoice

Fig. 6.3.32 MIRO

6.3.7 Import Procurement

Step T-Code Description Menu Path

Logistics → Materials Management →

1 ME21N Purchasing → Purchase Order → Create →
Vendor/Supplying Plant Known

Fig. 6.3.33 ME21N

Logistics → Materials Management →

2 ME28 Purchasing → Purchase Order → Release →
Collective Release

Fig. 6.3.34 ME28

Logistics → Materials Management →

Inventory Management → Goods Movement
3 MIGO
→ Goods Receipt → For Purchase Order →
GR for Purchase Order

Fig. 6.3.35 MIGO

27
 Logistics → Materials Management →
4 MIRO Logistics Invoice Verification → Document
Entry → Enter Invoice

Fig. 6.3.36 MIRO

6.3.8 Physical Inventory

Step T-Code Description Menu Path

Logistics → Materials Management →

1 MI01 Physical Inventory → Physical Inventory
Document → Create

Fig. 6.3.37 MI01

Logistics → Materials Management →

2 MI04 Physical Inventory → Inventory Count →
Enter

Fig. 6.3.38 MI04

Logistics → Materials Management →

3 MI20 Physical Inventory → Difference →
Difference List

Fig. 6.3.39 MI20

Logistics → Materials Management →

4 MI03 Physical Inventory → Physical Inventory
Document → Display

Fig. 6.3.40 MI03

28
 CHAPTER 7
AS IS PROCESS MAPPED TO SAP TO BE PROCESS

7.1 AS IS – TO BE
Topic AS-IS TO-BE
1. Organizational structure
1.1 Client
Fast Track CLIENT-800
Level
1.2
Bikes International Inc CC -> 0001
Company
Bikes Accessories Inc CC -> BAI3
Level

2. Material management
BII PLANT PLANT – BI05
3.1 Plant
BAI PLANT PLANT – BI06
SLOC-101 (Raw Material)
-102 (Semi Fin. &
Finished)
BII PLANT -103 (Hazardous)
3.2
Storage
SLOC-SL01 (Raw Material)
Location
-SL02 (Accessories)
BAI PLANT -SL03 (Finished Goods)

3. Business Process
Bike International Inc (BII)
BII procures the materials both from
domestic vendors and some from
foreign vendors.
Lead Time
For Domestic suppliers – 30 to 45
For Foreign vendor – 60 to 120
Approval Level
PR: Approval is done by purchase
manager.
PO: Approval is done by purchase
manager. If the total price is more than
10,000 $, It is additionally approved by
managing director.

RFQ
To be created in need of new items,
Quotation from vendor is approved on
basis of
• Basic price
• Location
• Conditions
29
• Minimum order quantity
• Terms of Payment

Subcontracting
For painting the frames by supplying
paint and unpainted frames to the
vendor.
Service provider
Stickering is done by external service
provider.
Vendor consignment
Gear Shifters are stored at BII Plant
and is liable to pay when it is
withdrawn for consumption.

Bike Accessories Inc. (BAI)

BAI procures materials from Domestic
Vendor only.

Lead Time
For Domestic suppliers – 30 to 45
Approval Level
PR: Approval is done by purchase
manager.
PO: Approval is done by purchase
manager.
RFQ
To be created in need of new items,
Quotation from vendor is approved on
basis of
• Basic price
• Location
• Conditions
• Minimum order quantity
• Terms of Payment

30
 CHAPTER 8
UNIT TESTING

8.1 Unit testing

Actual
Step Description Expected
Result
ENTERPRISE STRUCTURE
SPRO → Enterprise Structure
→ Definition → Logistic
Transaction should open for
Step General → Define copy, Passed
creating plant.
1 delete, check plant → Define
Plant
Insert all plant details Values should be accepted Passed
Save the data after filling the
Step It should save the data and
required data like plant name, Passed
2 plant should be created
address, etc
STORAGE LOCATION
SPRO → Enterprise Structure
Step → Definition → Materials Transaction should open for
Passed
3 management → Maintain creating storage location.
Storage Location
Step Enter the details for creating
Values should be accepted Passed
4 the storage location
Step
Execute Successfully able to execute Passed
5
PURCHASING ORGANISATION
SPRO → Enterprise Structure
Transaction should open for
Step → Definition → Materials
creating purchasing Passed
6 management → Maintain
organisation
Purchasing Organisation
Values should be accepted
Step
Insert details and Execute and successfully able to Passed
7
execute
PURCHASING GROUP
SPRO → Materials
Step Transaction should open for
Management → Purchasing → Passed
8 creating purchasing group
Create Purchasing Group
Values should be accepted
Step
Insert details and Execute and successfully able to Passed
9
execute

31
 MATERIAL TYPES
SPRO → Logistics (General)
→ Material Master → Basic
Step Transaction should open for
Settings → Material Types → Passed
10 creating material type
Define Attributes of Material
Types
Step Values should be accepted and
Insert details and execute Passed
11 successfully able to execute
MATERIAL GROUPS
SPRO → Logistics (General)
Step → Material Master → Transaction should open for
Passed
12 Settings for Key Fields → creating material group
Define Material Groups
Step Values should be accepted and
Insert details and execute Passed
13 successfully able to execute
VALUATION CLASS
SPRO → Materials
Management → Valuation &
Account Assignment →
Step Transaction should open for
Account Determination Passed
14 creating valuation class
without wizard → Define
Valuation Class → Valuation
Class
Step Values should be accepted and
Insert details and execute Passed
15 successfully able to execute
ACCOUNT CATEGORY REFERENCE
SPRO → Materials
Management → Valuation &
Account Assignment → Transaction should open for
Step
Account Determination creating account category Passed
16
without wizard → Define reference
Valuation Class → Account
Category Reference
Step Values should be accepted and
Insert details and execute Passed
17 successfully able to execute
VENDOR ACCOUNT GROUP
SPRO → Logistics (General)
→ Business Partner →
Step Transaction should open for
Suppliers → Control → Passed
18 creating vendor account group
Define Account groups &
field selection (supplier)
Step Values should be accepted and
Insert details and Execute Passed
19 successfully able to execute

32
 DOCUMENT TYPES
SPRO → Materials
Step Management → Purchasing → Transaction should open for
Passed
22 RFQ/Quotation → Define creating RFQ document type
Document Types
Values should be accepted
Step
Insert details and execute and successfully able to Passed
23
execute
SPRO → Materials
Transaction should open for
Step Management → Purchasing →
creating Purchasing Passed
24 Purchasing Requisition →
requisition document type
Define Document Types
Values should be accepted
Step
Insert details and execute and successfully able to Passed
25
execute
SPRO → Materials
Transaction should open for
Step Management → Purchasing →
creating purchase order Passed
26 Purchase Order → Define
document type
Document Types
Values should be accepted
Step
Insert details and execute and successfully able to Passed
27
execute
SPRO → Materials
Transaction should open for
Step Management → Purchasing →
creating contract document Passed
28 Contract → Define Document
type
Types
Values should be accepted
Step
Insert details and execute and successfully able to Passed
29
execute
MATERIAL MASTER RECORD
SAP Easy Access → Logistics
→ Materials Management → Transaction should open for
Step
Material Master → Material → creating new material master Passed
30
Create (General) → record
Immediately (MM01)
Select Basic data 1,
Step It should take to the selected
Purchasing, Accounting 1 Passed
31 views screen.
views and enter plant details
Values should be accepted
Step Insert the details and save the
and successfully able to save Passed
32 record
the record
VENDOR MASTER RECORD
Cross-Application
Components → SAP Business
Step Transition should open for
Partner → Business Partner → Passed
33 creating new BP.
Basic Settings → Define BP
Roles
Values should be accepted
Step
Enter details and execute and successfully able to save Passed
34
the record

33
 CHARACTERISTICS FOR PURCHASE REQUISITION
SPRO → Materials
management → Purchasing →
Step Purchase requisition → Transaction should open for
Passed
35 Release procedure → creating new characteristic
Procedure with classification
→ Edit Characteristics
Enter the table details for Values should be accepted and
Step
purchase requisition (CEBAN) successfully able to save the Passed
36
and other values. record
CLASS FOR PURCHASE REQUISITION
SPRO → Materials
management → Purchasing →
Step Purchase requisition → Transaction should open for
Passed
37 Release procedure → creating new class
Procedure with classification
→ Edit Classes
Values should be accepted and
Step Enter the characteristics and
successfully able to save the Passed
38 other values
record
RELEASE PROCEDURE FOR PURCHASE REQUISITION
SPRO → Materials
management → Purchasing →
Purchase requisition →
Step Release procedure → Transaction should open for
Passed
39 Procedure with classification creating new release group
→ Set up Procedure with
Classification → Release
Group
Values should be accepted and
Step
Enter the details and execute. successfully able to save the Passed
40
record
SPRO → Materials
management → Purchasing →
Purchase requisition →
Step Transaction should open for
Release procedure → Passed
41 creating new release code
Procedure with classification
→ Set up Procedure with
Classification → Release Code
Values should be accepted and
Step
Enter the details and execute. successfully able to save the Passed
42
record
SPRO → Materials
management → Purchasing →
Purchase requisition →
Step Release procedure → Transaction should open for
Passed
43 Procedure with classification creating new release strategy
→ Set up Procedure with
Classification → Release
Strategy
Step Values should be accepted and
Enter the details and execute. Passed
44 successfully able to save.

34
 CHARACTERISTICS FOR PURCHASE ORDER
SPRO → Materials
management → Purchasing →
Step Purchase order → Release Transaction should open for
Passed
45 procedure → Procedure with creating new characteristic
classification → Edit
Characteristics
Enter the table details for Values should be accepted
Step
purchase requisition (CEBAN) and successfully able to save Passed
46
and other values. the record
CLASS FOR PURCHASE ORDER
SPRO → Materials
management → Purchasing →
Step Transaction should open for
Purchase order → Release Passed
47 creating new class
procedure → Procedure with
classification → Edit Classes
Values should be accepted
Step Enter the characteristics and
and successfully able to save Passed
48 other values
the record
RELEASE PROCEDURE FOR PURCHASE ORDER
SPRO → Materials
management → Purchasing →
Purchase order → Release
Step Transaction should open for
procedure → Procedure with Passed
49 creating new release group
classification → Set up
Procedure with Classification
→ Release Group
Values should be accepted
Step
Enter the details and execute. and successfully able to save Passed
50
the record
SPRO → Materials
management → Purchasing →
Purchase order → Release
Step Transaction should open for
procedure → Procedure with Passed
51 creating new release code
classification → Set up
Procedure with Classification
→ Release Code
Values should be accepted
Step
Enter the details and execute. and successfully able to save Passed
52
the record
SPRO → Materials
management → Purchasing →
Purchase order → Release
Step Transaction should open for
procedure → Procedure with Passed
53 creating new release strategy
classification → Set up
Procedure with Classification
→ Release Strategy
Values should be accepted
Step
Enter the details and execute. and successfully able to save Passed
54
the record

35
 REQUEST FOR QUOTATION
Logistics → Materials
Step Management → Purchasing → Transaction should open
Passed
55 RFQ/Quotation → Request for for creating a RFQ
Quotation → Create (ME41)
Values should be accepted
Step Enter the details for creating the
and successfully able to Passed
56 quotation from different vendors
save the RFQ.
COMPARISON OF REQUEST FOR QUOTATION
Logistics → Materials
Transaction should open
Step Management → Purchasing →
for comparing all the Passed
58 RFQ/Quotation → Quotation →
quotations by all vendors
Price Comparison (ME49)
REJECTING A REQUEST FOR QUOATION
Logistics → Materials
Step Management → Purchasing → Transaction should open
Passed
59 RFQ/Quotation → Quotation → for rejecting a RFQ
Maintain (ME47)
Select the quotation number
Step
which needs to be rejected and It should be rejected. Passed
60
mark as reject.
PURCHASE INFO RECORD
Logistics →
Transaction should open
Step Materials Management →
for creating new purchase Passed
61 Purchasing → Master Data →
info record
Info Record → Create (ME11)
Values should be accepted
Step
Enter the details and execute. and successfully able to Passed
62
save the record
PURCHASE REQUISITION
Logistics →
Transaction should open
Step Materials Management →
for creating new purchase Passed
63 Purchasing →Purchase
requisition
Requisition → Create (ME51N)
Values should be accepted
Step
Enter the details and execute. and successfully able to Passed
64
save the record
PURCHASE ORDER
Logistics →
Materials Management → Transaction should open
Step
Purchasing → Purchase Order → for creating new purchase Passed
65
Create → Vendor/Supplying order
Plant known (ME21N)
Values should be accepted
Step
Enter the details and execute. and successfully able to Passed
66
save the record

36
 GOODS RECEIPT
Logistics →
Materials Management →
Inventory Management →
Step Transaction should open for
Goods Movement → Passed
67 creating new goods receipt
Goods Receipt →
For Purchase Order →
GR for Purchase Order (MIGO)
Values should be accepted and
Step
Enter the details and execute. successfully able to save the Passed
68
record
INVOICE
Logistics →
Materials Management →
Step Transaction should open for
Logistics Invoice Verification → Passed
69 creating new invoice
Document Entry →
Enter Invoice (MIRO)
Values should be accepted and
Step
Enter the details and execute. successfully able to save the Passed
70
record
SUB CONTRACTING
Logistics → Materials
Management → Purchasing →
Step
Purchase Order → Create → Transaction should open. Passed
71
Vendor/Supplying Plant Known
(ME21N)
Enter vendor, Item category 'L',
material, etc in item overview. In
the item details section go to Values should be accepted and
Step
material data and choose successfully able to save the Passed
72
components button and add the record
components for your material.
Save the document.
Logistics → Materials
Step Management → Purchasing →
Transaction should open. Passed
73 Purchase Order → Reporting →
SC Stocks per Vendor
Step Check the stocks required and
Passed
74 available for your components Stocks should be displayed
VENDOR CONSIGNMENT
Logistics → Materials
Management → Purchasing →
Step
Purchase Order → Create → Transaction should open. Passed
75
Vendor/Supplying Plant Known
(ME21N)
Enter vendor, material and Values should be accepted and
Step
choose item category 'K'. Add successfully able to save the Passed
76
other details and save record

37
 CONTRACT
Logistics → Materials
Step Management → Purchasing → Transaction should open for
Passed
77 Outline Agreement → Contract creating contract
→ Create (ME31K)
Values should be accepted and
Step
Enter the details and execute. successfully able to save the Passed
78
record.
SCHEDULING AGREEMENT
Logistics → Materials
Management → Purchasing →
Transaction should open for
Step Outline Agreement →
creating new scheduling Passed
81 Scheduling Agreement →
agreement
Create → Vendor Known
(ME31L)
Values should be accepted and
Step
Enter the details and execute. successfully able to save the Passed
82
record
Logistics → Materials
Management → Purchasing →
Step Outline Agreement →
Transaction should open. Passed
83 Scheduling Agreement →
Delivery Schedule → Maintain
(ME38)
Enter your scheduling
Values should be accepted and
Step agreement number and select
successfully able to save the Passed
84 the item and enter Delivery
record
Schedule
Logistics → Materials
Management → Purchasing →
Step Outline Agreement →
Transaction should open Passed
85 Scheduling Agreement →
Delivery Schedule →
Print/Transmit (ME9E)
Select the scheduling
Step The message should be
agreement number and select Passed
86 delivered.
output message.
SPLIT VALUATION
Logistics → Materials
Step Management → Material Transaction should open for
Passed
87 Master → Material → Create creating materials
(General) → Immediately
Step Enter material details to be
The details will be accepted Passed
88 created for transferring stock.
Copy the material created to the Material should be created for
Step
plant where stock needs to be second plant with same material Passed
89
transferred number

38
 Logistics → Materials
Transaction will open for
Management → Purchasing →
Step creating Purchase order. PO is
Purchase Order → Create → Passed
90 created for the plant from where
Vendor/Supplying Plant
stock will be transferred
Known
Logistics → Materials
Management → Inventory
Transaction will open for goods
Step Management → Goods
receipt for the plant from where Passed
91 Movement → Goods Receipt
stock will be transferred
→ For Purchase Order → GR
for Purchase Order
Logistics → Materials
Management → Inventory
Step Management → Goods Transaction will open for goods
Passed
92 Movement → Goods Receipt issue
→ For Purchase Order →
Goods Issue
Step Enter the details of the materials
The details will be accepted Passed
93 for goods issue
SPLIT VALUATION
SPRO → IMG → Materials
Management → Valuation and Transaction will open for
Step
Account Assignment → Split creating the general valuation Passed
94
Valuation → Configure Split type
Valuation
Select Global types and enter
Step
details like valuation type, ext., Details will be accepted Passed
95
int. purchase orders, etc
Activate the valuation types
Step Activates the valuation type
created from activate valuation Passed
96 created
types
On the Global Valuation
Categories screen, assign your
Step Valuation type will be assigned
new valuation type to valuation Passed
97 to valuation category
category and choose the
Activate button
Create a material and assign
Step
Valuation category as well as The details will be accepted Passed
98
valuation type
PHYSICAL INVENTORY
Logistics → Materials
Step Management → Physical Transaction will open to create
Passed
99 Inventory → Physical Physical Inventory doc.
Inventory Document → Create
Step Enter details required and post The details will be accepted, and
Passed
100 the document. document will be created

39
 Logistics → Materials
Step Management → Physical Transaction will open for
Passed
101 Inventory → Inventory Count entering count results
→ Enter
Step Enter inventory count result
Result will be posted Passed
102 and post
Logistics → Materials
Step Management → Physical Transaction will open for
Passed
103 Inventory → Difference → displaying the differences
Difference List

40
 CHAPTER 9
CONCLUSION
Leading firms employ ERP systems to boost productivity, cut expenses, increase
efficiency, boost profitability, and free up resources for strategic planning. ERP software is
being used by certain firms to meet these objectives. ERP systems can be used to automate
key company processes, resulting in more consistent and efficient operations. They may be
able to more effectively transmit information across departments, locations, and even
countries by avoiding repeating data input and enhancing visibility. The capabilities to
analyse operational data, manage business exceptions, and improve strategic planning are
also more versatile.
The implementation of an ERP system is a difficult undertaking that carries its own
set of dangers. However, with the advancement of time and technology, a variety of new
methods are being developed to make this process more efficient and reduce the danger of
failure. In terms of ERP implementation, agile frameworks are the best option. There are a
wide variety of agile models being created, each tailored to a certain sector. Cloud ERP and
hybrid ERP are becoming increasingly popular due of their low cost and ease of
implementation. To make ERP deployment easier and boost productivity, researchers can
investigate new technologies like as machine learning, artificial intelligence, blockchain,
and so on.

41
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 APPENDIX A
CONFERENCE PRESENTATION
My paper on Surveying the effectiveness and efficiency of Enterprise
Resource Planning systems was presented on April 7, 2022, at ICSCDS 2022
conference held at Shree Venkateshwara Hi-Tech Engineering College, Erode.
My paper got accepted as paper id: ICSCDS170 with a plagiarism of 0 %.

Figure A.1: ICSCDS 2022 Acceptance Mail

Figure A.2: ICSCDS 2022 Paper Presentation Certificate

 APPENDIX B
PUBLICATION DETAILS
My paper is published in the publication - 2022 International Conference on Sustainable
Computing and Data Communication Systems (ICSCDS) indexed in IEEE Explore. The
link to my paper is https://ieeexplore.ieee.org/document/9761042 . I have attached the
screenshot of the site.

Figure B.1 IEEE Explore Site Screenshot

 APPENDIX C
PLAGIARISM REPORT

Figure C.1 Plagiarism Report