Integration of FI-MM

Business process in the Materials Management for Purchase of Materials (P2P cycle)
Material Requisition (Sent by Production dept. to stores dept.)
Purchase Requisition (Sent by stores dept. to Purchase dept.)
Call of Quotations, Analysis of Quotations
Purchase Order (Contains the details like Material, Qty., Price, Delivery date etc.)
Goods Receipt
Inventory A/c Dr. Note: From material req. to Purchase
To GR/IR Clearing a/c order there is no involvement of FI
module. From Goods receipt our FI
Invoice verification consultant works start
GR/IR Clearing a/c Dr.
To Vendor a/c

Material Issue for Production

Raw material consumption a/c Dr.
To Inventory a/c

 Financial impact arising out of relevant inventory movements are

automatically posted to FI.
 MM component is used to process the business transaction relating to
procurement and inventory management activities of materials.
 Materials include RM, SFG, FG, packaging materials and stores & Spares etc.
 Organization structure for Material management

Company code Purchasing Org.

Plant 1 Plant 2

Storage Storage Storage

location 1 location 2 location 3
(WH for RM) (WH for WIP) (WH for FG)

Valuation level:
We can valuate material either at plant level or company code level. Normally we
do at plant level
Valuation Area:
It determines how the Inventories are to valuated and at what level of the org.
the inventories are to be evaluated. That level is called area valuation level.
This valuation level determines the valuation area.

If Valuation level = Co. code level If Valuation level = Plant level

means valuation area = co. code. means valuation area = Plant.
If val. Area is the co. code, all plant If val. Area is the Plant, material
stocks of a material within a co. code for each plant is valuated
is valuated at the same price separately.
Material Type:
 We have to maintain the master record for every material with reference to
the plant. At the time of creating material master record the user has to
specify the material type.
 Materials with similar attributes are grouped together. These are similar to
account groups.
 Some of the examples of material types available in SAP
i) ROH – Raw materials (Price control – V)
ii) ERSA – Stores & Spares (Price control – V)
iii) FERT – Finished goods (Price control – S)
iv) HALB – Work in progress (Price control – V)
v) HAWA – Traded goods (Price control – V)
“V” – Moving Avg. Price; “S” – Standard price
Price control: It determines how the consumption and inventory values are
to be determined for the financial accounting purpose.
 Example: All raw material – RM group, All SFG – SFG group, All FG – FG
group.
Valuation Class:
 These are the keys used to categorize the materials according to the P&L
account and B/S requirements
 Grouping of GL accounts, it links the material master and GL accounts
 It is to determine goods movement and Invoice postings
 We can create different valuation class for different material types.
Example: Local RM, Imported RM
Transaction Event Keys:
 Transaction event keys are linked to “Movement types”. These are the
nature/type of business transactions that occur in the MM.
 These are system defined and we cannot create own transaction keys
  Examples:
BSX – Inventory posting, WRX – GR/IR Clearing account
GBB – Off setting account for inventory posting
VNG – Raw material consumption
VBR – Raw material scrapping
AUF – Production receipt against production order
Movement Types:
 Movement type determines the GL accounts to be updated for the material
business transactions in the material management component. Following
are the some of the movement types.
101 – Goods receipt, 102 – Reversal of 101, 201 – Issue of Material to Cost
center, 261 –Issue of materials to Internal Order.

BSX (DR)
Movement Type - 101

WRX (CR)

GBB - VBR (DR)

Movement Type - 201

BSX (CR)

 The Movement types are linked to transaction codes in the software.

T code – MIGO – Movement type 101
Explanation:
At the time of posting of raw material issue, the user gives the material number,
movement type and quantity. Based on the movement type the system
determines the transaction event key. Based on the material number the system
moves to accounting tab of the material master record and identifies the
valuation class. Then it will update the respective GL accounts assigned for that
valuation class and for those transaction event keys. And it also identifies the
moving average price and multiplies it with the quantity which is the value of
consumption.
Valuation
class BSX WRX GBB-VBR
Raw material local 01RL XXXXXX XXXXXX
XXXXXX
Raw material imported 01RI XXXXXX XXXXXX XXXXXX

Configuration steps:
Step1: Define/Create Plant
Path: SPRO => Enterprise structure => Definition => Logistics-General => Define,
copy, delete, Check plant
Double click on “Define Plant”
Click on New Entries
Plant = 98P1; Calendar = 01 (Factory calendar); Name = Hyd Plant - 9874; Country
= IN
Create one more plant Bangalore plant – 9874 => Plant = 98P2
Step 2: Define/Create Storage Location – OX09
Path: SPRO => Enterprise Structure => Definition => Material Management =>
Maintain Storage Location
Plant = 98P1
Click on New entries
Storage location Description
RM RM Storage 9874
SF SF Storage 9874
FG FG Storage 9874
And click on Save
Create for another plant Bangalore plant – 9874 => Plant = 98P2
A storage location is the place where stock is physically kept within a plant.
A storage location has the following attributes:
•There may be one or more storage locations within a plant.
•A storage location has a description and at least one address.
•It is possible to store material data specific to a storage location.
•Stocks are managed only on a quantity basis and not on a value basis at
storage location level.
•Physical inventories are carried out at storage location level.
•A storage location can be assigned to a warehouse number in the
Warehouse Management System. You can assign more than one storage
location to the same warehouse number within a plant.

Storage locations are always created for a plant.

Step 3: Maintain Purchase organization

Path: Same as above
Storage location Description
98P1 Hyd. Purchase Org. – 9874
98BN Bangalore Purchase Org. - 9874
From the Materials Management and Purchasing view, the purchasing
organization is responsible for all purchasing activities (including the processing of
requests for quotations and purchase orders, for example).
The purchasing organization is integrated within the organizational structure as
follows:
•A purchasing organization can be assigned to several company codes.
(= Corporate-group-wide purchasing).
•A purchasing organization can be assigned to one company code.
(= Company-specific purchasing).
•A purchasing organization can also exist without being assigned to a company
code.
◦Since each plant must be assigned to a company code, the latter can be
determined via the plant at the time of each procurement transaction even if the
procuring purchasing organization has not been assigned to a company code.
•A purchasing organization must be assigned to one or more plants.
Step 4: Assignment of Plant to Company Code – OX18
Path: SPRO => Enterprise Structure => Assignment => Logistics – General =>
Assign pant to Company code
Click on New entry
Company code Plant
9874 98P1
9874 98P2
And Save it
Step 5: Assignment of Purchase Org. to Company Code – OX01
Path: SPRO => Ent. Structure => Assignment => Material Mgmt. => Assign PO to
Co. Code
In position give your purchase org you created and manually enter your company
code in CoCd. Column and then save it.

Step 6: Assignment of Purchase Org. to Plant

Path: SPRO => Ent. Structure => Assignment => Material Mgmt. => Assign PO to
Plant
Click on New entries and give Purchase org and plant in respective fields
98P1 98P1
98P1 98P2
98BN 98P1
98BN 98P2

Step 7: Define Attributes for Material Type – OMS2

Path: SPRO => Logistics-General => Material Master => Basic settings => Material
Types => Define attributes for MT
Click on Position and Select “ROH” and click “Copy As” and provide following
details
i) For Raw Material - ROH
Material Type = 98RM; Raw Material – 9874
Internal/External Purchase orders
Ext. Purchase Order = 2 (External Purchase orders allowed
Int. Purchase Order = 0 (No Int. purchase orders are maintained)
Click enter and save it
Select the Row 98RM and double click on Qty./Values update and give Valuation
area your Plants select Qty. update and Value update check boxes for both of
your plants you created.
ii) For Finished Good – FERT – Name it as 98FG - Finished Good 9874
iii) For Semi Finished Good – HALB – Name it as 98SF Semi Finished Good
9874
Step 8: Maintain Posting Periods/Company code for Material Management -
OMSY
Path: SPRO => Log-General => Mat. Master => Basic Settings => Maintain
company codes for Material Management.
Click on Position and give your company code = 9874; year = 2019
Period =3(June for your Fiscal year) and click on ABP (Allow Back Postings) click on
save
Note: T. code OMSY is used for opening posting period for the first time only.
For subsequent opening/closing of posting periods, we need to use T. code
MMPV
Step 9: Creation of Plant Parameters – OMI8
Path: SPRO => Material management => Consumption based planning => Plant
Parameters => Carry out overall Maintenance of Plant Parameters
Click on “Copy” Give From Plant =1000 To Plant = 98P1 & 98P2

Step 10: Default Values of Tax codes for Invoice Verification

Path: SPRO => Mat. Mgmt. => Logistics Invoice Verification => Incoming Invoices
=> Maintain Default values for Tax codes
New Entry; Company code = 9874; Tax code – 9874
Defaults Domestic; Tax code = V0; Unplanned delivery costs Tax code = V0

Step 11: GR Tolerance Group – OMC0

Path: SPRO => Mat. Mgmt. => Inv. Mgmt. & Physical inventory => Goods Receipt
=> Set tolerance limit
Copy “B1”, “B2”, “VP” tolerance groups of Co. code “1000” to your co. code
“9874” and select Do not check for upper and lower limits
Step 12: Set Tolerance Limit for Price Variance
Path: SPRO => MM => Purchasing => Purchase Order => Set tolerance limit for
price variance
Select and Copy “PE” and “SE” tolerance groups of Co. Code “1000” to your
company code. Select Do Not check
Step 13: Parameters for Invoice Verification – OMR6
Path: SPRO => MM => Log. Invoice Verification => Invoice Block => Set Tolerance
Limits
Click New entry; TKey “PP” & “VP” of Co. code 1000 and give it to Company code
= 9874; Select Do not check & Enter and save it
Step 14: Define Automatic Status Change – OMRV
Path: SPRO => MM => Log. Invoice Verification => Invoice Ver. In Background =>
Define Automatic status change
Click New entries; Company code = 9874; Select “Correct Invoice to be corrected”
Step 15: Define Valuation Control – OMWM
Path: SPRO => MM => Val. And A/c Assignment => A/c Determination => A/c Det.
w/o Wizard => Define valuation control
Select Valuation Grouping Code Active and save.
Step 16: Valuation Grouping Code – OMWD
Path: SPRO => MM => Val & A/c Assignment => A/c det. => A/c det. w/o wizard =>
Group together valuation areas
Against your Valuation areas (plants 98P1 & 98P2) give SAP defined Val. Group
code “0001”
Step17: Define Valuation class – OMSK
Click on Category reference and new entry (See Step 7)
ACR Description
98RM ACR RM – 9874
98SF ACR SF – 9874
98FG ACR FG – 9874
Save it and now click on Back arrow 2 times and then click on “Valuation class”
ValCL ARef Description
98RL 98RM RM LOCAL – 9874
98RI 98RM RM IMPORT – 9874
 98SI 98SF SFG INHOUSE – 9874
98SE 98SF SFG EXTERNAL – 9874
98FG 98FG FG IN HOUSE - 9874
Save it and again go back twice and click on “Material type/Account category ref.”
and change the “AREF” column that you created above “98FG”, “98RM” “98SF”
Step 18: Copy, Change Movement Types - OMJJ
We don’t do anything in this screen it is all predefined. It contains different fields
statuses, transaction folders etc.
Step 19: Creation of GL Account – FS00
1) Inventory – Raw material Local A/c
A/c Group – Current Assets; Sort Key – 012; FSG – G006; Select “Post
Automatically”
2) Inventory – Raw material Import A/c
A/c Group – Current Assets; FSG – G006; Sort Key – 012; Select “Post
Automatically”
3) GR/IR Clearing Account
A/c Group – Current Liabilities; Tax Category - *; Sort Key – 001; Select –
“Open Item Management”; FSG – G045; Select “Post Automatically”
4) Price Difference A/c (This is for difference of prices b/w Purchase order &
Invoice)
A/c Group – Manufacturing costs; Sort Key – 001; FSG – G003; Select “Post
Automatically”
Click on Edit Cost Element and change Cost element cat. = 01
5) Raw Material Consumption Local account
A/c Group – RM Consumption; Sort Key – 001; FSG – G003; Select “Post
Automatically”
Click on Edit Cost Element and change Cost element cat. = 01
6) Raw Material Consumption Import account
A/c Group – RM Consumption; Sort Key – 001; FSG – G003; Select “Post
Automatically”
Click on Edit Cost Element and change Cost element cat. = 01
Step 20: Assignment of Accounts for Automatic Postings (Integration) – OBYC

This is very Important step. This where FI consultants come into picture. Till now
all the above plant creation everything will be done by other module people but
from here on FI people’s role will come
Path: SPRO => Financial Accounting => GL Accounting => Business Transactions =>
Integration => MM => Define Accounts for MM
1) Double click on “BSX” and give your Chart of Accounts and Select
“Valuation class “check box and click save.
Now you will be asked to provide Raw material GL accounts
Valuation class (Created in step 17) Account (GL A/c Created in Above
step)
98RL 203510 (A/c Number) – Rm Local
A/c
98RI 203515 (A/c Number) – RM Import
A/c
And Save
2) Double Click on “WRX” and Select “Valuation class “check box and click
save.
Valuation class (Created in step 17) Account (GL A/c Created in Above
step)
98RL 105700 (A/c no.) – GR/IR clearing
a/c
98RI 105700 (A/c no.) – GR/IR clearing
a/c
3) Double Click on “PRD” and Select “Valuation class “check box and click save.
Valuation class (Created in step 17) Account (GL A/c Created in Above
step)
98RL 400100 (A/c no.) – Price Difference
98RI 400100 (A/c no.) – Price Difference
4) Double Click on “GBB” and Select “Valuation class” & “General
Modification” check box and click save.
General Valuation class Account (GL A/c Created
Modification (Created in step 17) in Above step)
VBR 98RL 400200 (A/c no.) – RM
consumption local a/c
 VBR 98RI 400205 (A/c no.) – RM
consumption Import a/c
Note: VBR is for Goods issued to the cost center
Step 20: Creating Material Master Record – MM01
Material: RMA9874FI-MM
Industry Sector: Mechanical Engineering
Mat Type: Raw material - 9874

Click "Select View" and select - Basic data1, Purchasing group, Accounting 1,
Costing 1&2- Save it
Enter your organizational level & Plant = 98P1 & Storage Location = RM
Material: RMD9874FIMM – Raw material D Local FI-MM - 9874
In Basic Data 1 Tab:
Basic unit measure: each Material Group: 00104
In purchasing tab – Purchasing group – 000 (Compulsory or else while making
PO it will show error)
In MRP1 tab – MRP Type – ND (No Planning)
In Accounting 1 tab - Give valuation class as 01RL; Price control = V; Moving Price
= 100/kg ; Price unit = 1
In Costing 1 Tab - Select “With Qty. structure” & “Material Origin” box
Click on save default settings and continue
Plant = 98P1
Storage Location = RM
Create for another raw material imported
Material: RMB9874FI-MM – Raw material B Import FI-MM – 9874
In Basic Data 1 Tab:
Basic unit measure: EA Material Group: 00104
In purchasing tab – Purchasing group – 000
In MRP1 tab – MRP Type – ND (No Planning)
In Accounting 1 tab - Give valuation class as 98RI; Price control = V; Moving Price
= 300/ea ; Price unit = 1
In Costing 1 Tab - Select “With Qty. structure” & “Material Origin” box
Click on save default settings and continue
Plant = 98P1
Storage Location = RM
Create for another raw material
Material: RMC9874FI-MM – Raw material C Local FI-MM – 9874
In Basic Data 1 Tab:
Basic unit measure: KG Material Group: 00104
In purchasing tab – Purchasing group – 000
In MRP1 tab – MRP Type – ND (No Planning)
In Accounting 1 tab - Give valuation class as 98RI; Price control = S; Standard
Price = 400/kg; Price unit = 1
In Costing 1 Tab - Select “With Qty. structure” & “Material Origin” box
Click on save default settings and continue
Plant = 98P1; Storage Location = RM

Step 21: Extend Vendor Master with Purchase Org. – XK01/MK01

Vendor: (Take any Existing Vendor)
Company code: 9874
Purchasing Org.: 98P1 : HYD Pur org. - 9874
Currency: INR; Terms of Payment = 0001; Incoterms = CIF (Cost, Ins. & Freight)
In control data line – Click “GR-Based Inv. Verif.” & “Srv. Based Inv. Verfi.” And
save it.

Step 22: Creation of Purchase Order – ME21N

Path: Easy access => Logistics => MM => Purchasing => PO – Create
Vendor Number = (Take any one existing)
And Click on “Header” and enter following details
In Org. tab: Purchase org. = 98P1; Purchasing Group = 000; Co. Code = 9874
And Click on “Item Overview” and enter following details
Material = RMD9874FIMMLocal; Qty. = 10ea; Net Price = 150; Plant = 98P1;
Storage location = RM
Click on Enter and Save.
Note the PO Number in any Excel
To Display Purchase order, go to T. Code ME23N. Click on “Other Purchase
Document” icon and give the PO number.
Step 23: Creation of Number Ranges – FBN1
Create number ranges for following document types with respective to Serial
Numbers.
Doc. Type: WA – S. No. 49 – Goods Issue
Doc. Type: WE – S. No. 50 – Goods Receipt
Doc. Type: RE – S. No. 51 – Invoice Receipt

Step 24: Goods Receipt from Vendor to Stock - MIGO

Journal entry: (I’m taking RMD9874FIMMLocal)
RM Stock Local A/c Dr. 10*100 BSX
To GR/IR Clearing A/c WRX
In MIGO Screen while making entry enter following details
Choose Goods receipt; Purchase Order; xxxxxxxx (Purchase Order number which
you copied above) and click on “Execute” and MIGO displays what ever there was
in that particular Purchase order
Select “Item Ok” and click on “Check” and Post it. And it will generate Material
document number and copy that number
Now Instead of Goods Receipt choose Display and give that Material Doc.
number and click on “ Execute” and click on Doc. Info. Tab and click on “FI
Document” tab

It automatically creates accounting doc and profit center doc.

Prerequisites before Invoice receipt:
Step 1: Define Tax calculation procedure for Country
Path: SPRO=>Fin. A/c new => Fin. A/c Global settings => Tax on Sales/Purchases
=> Basic Settings => Check calculation procedure
Double click on “Define Procedures”
Click on New entries
Procedure = 9874; Description = Tax procedure for India - 9874
Select the procedure line “9874” and double click on “Control Data”
Click on New entries
Step Condition type Description From To Account Key
1 BASB Base amount
2 MWVS Input Tax 1 1 VST
3 MWAS Output Tax 1 1 MWS
And save
Step 2: Assign Country to Calculation Procedure
Click on Position & Country “IN” and Enter procedure 9874 and save
Step 3: Define tax codes for Sales and Purchases - FTXP
Path: SPRO=>Fin. A/c => Fin. A/c Global settings => Tax on Sales/Purchases =>
Calculation => Define tax codes
Country = IN click on Enter; Tax code = V0 and click Enter; Tax Code 0% Input tax,
Tax type = V (Input tax) and Enter; Input tax % = 0; Output tax % = click on
“Deactivate Line” and save and
Tax code = A0 click Enter; Tax Code = 0% Output tax, Tax type = A (Output tax)
and Enter; Output tax % = 0; Input tax % = click on “Deactivate Line” & Save.

Step 4: Create tax Payable Account – FS00

A/c Group = Current Liabilities: Text – Tax Payable; Select “With Out Tax Allowed”
and Select “Open item Mgmt.” and “Line item Display” ; Sort Key = 001; FSG =
G001

Step 5: Assignment of Account for Automatic Postings – OB40

Double click on “Transaction – VST Line” and give Chart of Accounts and Account
= (Defined above) and save
Double click on “Transaction – MWS Line” and give Chart of Accounts and
Account = (Defined above) and save
Double click on “Transaction – VS1 Line” and give Chart of Accounts and Account
= (Defined above) and save

Step 25: Maintain Condition Records – FV11 (Not Required)

Condition type =
Tax code = ; Tax Code = and Save

Step 26: Invoice Receipt from Vendor to Stock - MIRO

Journal entry:
GR/IR Clearing A/c Dr. 10*100 WRX
To Vendor KBS
In MIRO Screen while making entry enter following details
Invoice Date
Amount in PO (We should practice diff scenarios);
PO Number and Click on Enter.
And it shows the details and select “Booking Ok” (A small tick icon on Line item)
and click on Simulate in Menu tab and it shows the document entry and then click
on post.

Got an error message “No taxes on sales/purchases are allowed for account V0 is
not allowed” – Sir forgot to give Tax category “*” while creating GR/IR Clearing
account.
And click on “Invoice document” tab in menu bar and select Display doc. it takes
you to MIR4 and click on “Follow on Document” tab in Menu bar. It will show
document display (FB03)

Step 27: Goods issue to Cost center – MIGO

First create a cost center – KS01 = 9874FIMM

Select “Goods Issue”; Select “Other”; Mov. Type = 201

Material Tab: Material = RMD9874FIMMLocal and Click enter.
Quantity Tab: Quantity = 10 each
Where tab: Plant = 98P1 ; Storage Loc. = RM
Click on Enter and you will get extra tab appears
Account Assignment Tab: Cost centers = 9874FIMM
And click on Check tab in menu bar.
It Showed an Error Message “Account determination for entry 3301 GBB _ VBR
04RL not possible” -- Sir went to “OBYC” and gave account assignments (Sir
wrongly created valuation class before)
Journal Entry: (Raw material issue to Cost center)
RM Consumption local a/c Dr. 5*100 GBB - VBR
To RM Stock local a/c (Inventory) 5*100 BSX
Display MM Tcode: MM03
Note: Movement type and GL a/c field sections not compatible then execute
program RM07CUFA

Check cost center report – S_ALR_87013611

Controlling area = ; Fiscal year =
From Period = To =
Plan Version = Cost center group =
Click Execute
Keep the cursor on actual costs, click “Call up Report”, Double click “Cost center
actual line items” to display Actual cost line items for cost centers

Scenario 2: Price Difference between PO & Invoice – Full Stock Available (i.e.
Raw material not yet issued/consumed)
Almost same steps as above:
i) Create a New Purchase order – ME21N & ME23N (Display) – Step22
In Org. tab: Purchase org. = 01HY; Purchasing Group = 000; Co. Code = 9874
And Click on “Item Overview” and enter following details
Material = RMB9874FI-MM; Qty. = 10kg; Net Price = 200; Plant = 98P1;
Storage location = RM
Click on Enter and Save.
Note the PO Number in any Excel
To Display Purchase order, go to T. Code ME23N. Click on “Other Purchase
Document” icon and give the PO number.

ii) Good Receipt from Vendor to Stock – MIGO – Step 24

 Journal entry: (I’m taking RMB9874FI-MM)
RM Stock Import A/c Dr. 10*200 BSX
To GR/IR Clearing A/c WRX
In MIGO Screen while making entry enter following details
Choose Goods receipt; Purchase Order; xxxxxxxx (Purchase Order number
which you copied above) and click on “Execute” and MIGO displays what ever
there was in that particular Purchase order
Select “Item Ok” and click on “Check” and Post it. And it will generate Material
document number and copy that number
Now Instead of Goods Receipt choose Display and give that Material Doc.
number and click on “ Execute” and click on Doc. Info. Tab and click on “FI
Document” tab

iii) Invoice receipt – MIRO ( Invoice price 10*250)

Journal entry:
GR/IR Clearing A/c Dr. 10*200 WRX
RM Stock Import a/c Dr. 10*50 (250-200) BSX
(As the material was not yet distributed)
To Vendor 10*250 KBS
Invoice Date; Amount = 2500; PO Number and Click on Enter. And it shows the
details and “Now the change the amount manually in the amount column =
2500” and select “Booking Ok” (A small tick icon on Line item) and click on
Simulate in Menu tab and it shows the document entry observe it and then click
on post.

iv) Goods Issue to Cost center – MIGO

Select Goods Issue; Select Other; Mov. Type = 201
Material Tab: Material = RMB9874FI-MM
Quantity Tab: Quantity = 5 kg (Received 10kg)
Where tab: Plant = 98P1 ; Storage Loc. = RM
Click on Enter and you will get extra tab appears
Account Assignment Tab: Cost centers = 9874FIMM
And click on Check tab in menu bar and Post
Journal Entry: (Raw material issue to Cost center)
RM Consumption Import a/c Dr. 5*250 GBB - VBR
 To RM Stock Import a/c (Inventory) 5*250 BSX
Display MM Tcode: MM03
Display Actual cost items: KSB5

Scenario 3: Price Difference between PO & Invoice – Partial Stock Available (i.e.
Raw material partially issued/consumed before receipt of Invoice)
Almost same steps as above:
i) Create a New Purchase order – ME21N & ME23N (Display) – Step22
In Org. tab: Purchase org. = 01HY; Purchasing Group = 000; Co. Code = 9874
And Click on “Item Overview” and enter following details
Material = RMC9874FI-MM; Qty. = 10kg; Net Price = 300; Plant = 98P1;
Storage location = RM
Click on Enter and Save.
Note the PO Number in any Excel
To Display Purchase order, go to T. Code ME23N. Click on “Other Purchase
Document” icon and give the PO number.

ii) Good Receipt from Vendor to Stock – MIGO – Step 24

Journal entry: (I’m taking RMC9874FI-MM)
RM Stock Local A/c Dr. 10*300 BSX
To GR/IR Clearing A/c 10*300 WRX
In MIGO Screen while making entry enter following details
Choose Goods receipt; Purchase Order; xxxxxxxx (Purchase Order number
which you copied above) and click on “Execute” and MIGO displays what ever
there was in that particular Purchase order
Select “Item Ok” and click on “Check” and Post it. And it will generate Material
document number and copy that number
Now Instead of Goods Receipt choose Display and give that Material Doc.
number and click on “ Execute” and click on Doc. Info. Tab and click on “FI
Document” tab

iii) Goods Issue to Cost center – MIGO

Select Goods Issue; Select Other; Mov. Type = 201
Material Tab: Material = RMC9874FI-MM
 Quantity Tab: Quantity = 5 kg (Received 10kg)
Where tab: Plant = 98P1 ; Storage Loc. = RM
Click on Enter and you will get extra tab appears
Account Assignment Tab: Cost centers = 9874FIMM
And click on Check tab in menu bar and Post
Journal Entry: (Raw material issue to Cost center)
RM Consumption local a/c Dr. 5*300 GBB - VBR
To RM Stock local a/c (Inventory) 5*300 BSX
Display MM Tcode: MM03
Display Actual cost items: KSB5
If Price difference account is created as cost element
Automatic account assignment – OKB9
Path: IMG => CO => Cost center => Actual postings – Manual actual postings =>
Edit Automatic A/c assignment
Click on New entry
Co. code = 9874; CE = (Price difference A/c number); Acct Assignment =
Select Row and click on details per business area/valuation area
New entries Valuation area = (Plant – 98P1/98P2); Cost center = 9874FIMM

iv) Invoice receipt – MIRO ( Invoice price 10*350)

Journal entry:
GR/IR Clearing A/c Dr. 10*300 WRX
RM Stock local a/c Dr. 5*50 (350-300) BSX
(Only 5 qty. distributed and on remaining 5 qty. we will update)
Price Difference A/c Dr. 5*50 (350-300) PRD
(Already 5 qty. distributed & consumed so we can’t update on qty. which we
already consumed, we transfer it to price difference)
To Vendor 10*350 KBS
Invoice Date; Amount = 3500; PO Number and Click on Enter. And it shows the
details and “Now the change the amount manually in the amount column =
3500” and select “Booking Ok” (A small tick icon on Line item) and click on
Simulate in Menu tab and it shows the document entry observe it and then click
on post.

v) Remaining Goods Issue to Cost center – MIGO

 Select Goods Issue; Select Other; Mov. Type = 201
Material Tab: Material = RMC9874FI-MM
Quantity Tab: Quantity = 5 kg (Received 10kg)
Where tab: Plant = 98P1 ; Storage Loc. = RM
Click on Enter and you will get extra tab appears
Account Assignment Tab: Cost centers = 9874FIMM
And click on Check tab in menu bar and Post
Journal Entry: (Raw material issue to Cost center)
RM Consumption local a/c Dr. 5*350 GBB - VBR
To RM Stock local a/c (Inventory) 5*350 BSX
Display MM Tcode: MM03
Display Actual cost items: KSB5

Scenario 4: Price Difference between PO & Invoice – No Stock Available (i.e.

Raw material fully issued/consumed before receipt of Invoice)
Almost same steps as above:
i) Create a New Purchase order – ME21N & ME23N (Display) – Step22
In Org. tab: Purchase org. = 01HY; Purchasing Group = 000; Co. Code = 9874
And Click on “Item Overview” and enter following details
Material = RMC9874FI-MM; Qty. = 10kg; Net Price = 400; Plant = 98P1;
Storage location = RM
Click on Enter and Save.
Note the PO Number in any Excel
To Display Purchase order, go to T. Code ME23N. Click on “Other Purchase
Document” icon and give the PO number.

ii) Good Receipt from Vendor to Stock – MIGO – Step 24

Journal entry: (I’m taking RMC9874FI-MM)
RM Stock Local A/c Dr. 10*400 BSX
To GR/IR Clearing A/c 10*400 WRX
In MIGO Screen while making entry enter following details
 Choose Goods receipt; Purchase Order; xxxxxxxx (Purchase Order number
which you copied above) and click on “Execute” and MIGO displays what ever
there was in that particular Purchase order
Select “Item Ok” and click on “Check” and Post it. And it will generate Material
document number and copy that number
Now Instead of Goods Receipt choose Display and give that Material Doc.
number and click on “ Execute” and click on Doc. Info. Tab and click on “FI
Document” tab

iii) Goods Issue to Cost center – MIGO

Select Goods Issue; Select Other; Mov. Type = 201
Material Tab: Material = RMC9874FI-MM
Quantity Tab: Quantity = 10 kg (Received 10kg)
Where tab: Plant = 98P1 ; Storage Loc. = RM
Click on Enter and you will get extra tab appears
Account Assignment Tab: Cost centers = 9874FIMM
And click on Check tab in menu bar and Post
Journal Entry: (Raw material issue to Cost center)
RM Consumption local a/c Dr. 10*400 GBB - VBR
To RM Stock local a/c (Inventory) 10*400 BSX
Display MM Tcode: MM03
Display Actual cost items: KSB5

iv) Invoice receipt – MIRO ( Invoice price 10*450)

Journal entry:
GR/IR Clearing A/c Dr. 10*400 WRX
Price Difference A/c Dr. 10*50 (450-400) PRD
(Complete qty. distributed & consumed so we can’t update on qty. which we
already consumed, we transfer it to price difference)
To Vendor 10*450 KBS
Invoice Date; Amount = 4500; PO Number and Click on Enter. And it shows the
details and “Now the change the amount manually in the amount column =
4500” and select “Booking Ok” (A small tick icon on Line item) and click on
Simulate in Menu tab and it shows the document entry observe it and then click
on post.
Scenario 5: Price Difference b/w STD Price, PO & Invoice – Full stock available
(I created RMC9874FI-MM with standard price “S”)
Note: If you created material master with standard price “S” then it always
valuate material at standard price
If Standard Price is “400”
Almost same steps as above:
i) Create a New Purchase order – ME21N & ME23N (Display) – Step22
In Org. tab: Purchase org. = 01HY; Purchasing Group = 000; Co. Code = 9874
And Click on “Item Overview” and enter following details
Material = RMC9874FI-MM; Qty. = 10kg; Net Price = 500; Plant = 98P1;
Storage location = RM
Click on Enter and Save.
Note the PO Number in any Excel
To Display Purchase order, go to T. Code ME23N. Click on “Other Purchase
Document” icon and give the PO number.

ii) Good Receipt from Vendor to Stock – MIGO – Step 24

Journal entry: (I’m taking RMC9874FI-MM)
RM Stock Local A/c Dr. 10*400 BSX (See above RED note)
Price Difference a/c Dr. 10*100 (500-400)
To GR/IR Clearing A/c 10*500 WRX
So here Moving price is maintained for statistical info purpose only
In MIGO Screen while making entry enter following details
Choose Goods receipt; Purchase Order; xxxxxxxx (Purchase Order number
which you copied above) and click on “Execute” and MIGO displays what ever
there was in that particular Purchase order
Select “Item Ok” and click on “Check” and Post it. And it will generate Material
document number and copy that number
Now Instead of Goods Receipt choose Display and give that Material Doc.
number and click on “ Execute” and click on Doc. Info. Tab and click on “FI
Document” tab

iii) Invoice receipt – MIRO ( Invoice price 10*600)

 Journal entry:
GR/IR Clearing A/c Dr. 10*500 WRX
Price Difference A/c Dr. 10*100 (600-500) PRD
(Complete qty. distributed & consumed so we can’t update on qty. which we
already consumed, we transfer it to price difference)
To Vendor 10*600 KBS
Invoice Date; Amount = 6000; PO Number and Click on Enter. And it shows the
details and “Now the change the amount manually in the amount column =
6000” and select “Booking Ok” (A small tick icon on Line item) and click on
Simulate in Menu tab and it shows the document entry observe it and then click
on post.
Display MM03 and see the moving price in accounting 1 tab it will change from
500 to 600

iv) Goods Issue to Cost center – MIGO

Select Goods Issue; Select Other; Mov. Type = 201
Material Tab: Material = RMC9874FI-MM
Quantity Tab: Quantity = 5 kg (Received 10kg)
Where tab: Plant = 98P1 ; Storage Loc. = RM
Click on Enter and you will get extra tab appears
Account Assignment Tab: Cost centers = 9874FIMM
And click on Check tab in menu bar and Post
Journal Entry: (Raw material issue to Cost center)
RM Consumption local a/c Dr. 5*400 GBB - VBR
To RM Stock local a/c (Inventory) 5*400 BSX
Display MM Tcode: MM03 and see total value it calculated at 400 only for
remaining stock
Display Actual cost items: KSB5