For planning purpose, some master data and transaction data from Materials Management- Purchase module is required to be transferred from ECC system to APO system.
First let’s see how the data flows in Procure-to-Pay (PTP) cycle in SAP Materials Management and what all master data and transaction data is created in Purchase process:
Purchase process flow:
- Determination of requirement
- Stock requirement (External purpose / as a result of MRP)
- Consumption requirement (Internal Requirement)
- Source Determination
- Vendor selection and comparison of price
- Create Purchase Requisition
- Create Purchase Order
- Purchase order follow-up
- Goods Receipt and Inventory Management
- Invoice verification
1. Determination of Requirements
Materials requirements are identified either in the user departments or via materials planning and control. (This can cover both MRP proper and the demand-based approach to inventory control. The regular checking of stock levels of materials defined by master records, use of the order-point method, and forecasting on the basis of past usage are important aspects of the latter.) You can enter purchase requisitions yourself, or they can be generated automatically by the materials planning and control system.
2. Source Determination
The Purchasing component helps you identify potential sources of supply based on past orders and existing longer-term purchase agreements. This speeds the process of creating requests for quotation (RFQs), which can be sent to vendors electronically via SAP EDI, if desired.
3. Vendor Selection and Comparison of Quotations
The system is capable of simulating pricing scenarios, allowing you to compare a number of different quotations. Rejection letters can be sent automatically.
4. Purchase Order Processing
The Purchasing system adopts information from the requisition and the quotation to help you create a purchase order. As with purchase requisitions, you can generate Pos yourself or have the system generate them automatically. Vendor scheduling agreements and contracts (in the SAP System, types of longer-term purchase agreement) are also supported.
5. Purchase Order Follow-Up
The system checks the reminder periods you have specified and – if necessary – automatically prints reminders or expediters at the predefined intervals. It also provides you with an up-to-date status of all purchase requisitions, quotations, and purchase orders.
6. Goods Receiving and Inventory Management
Goods receiving personnel can confirm the receipt of goods simply by entering the PO number. By specifying permissible tolerances, buyers can limit over- and under deliveries of ordered goods.
7. Invoice Verification
The system supports the checking and matching of invoices. The accounts payable clerk is notified of quantity and price variances because the system has access to PO and goods receipt data. This speeds the process of auditing and clearing invoices for payment.
The video below explains a step by step process of SP MM Procure-to-Pay cycle:
Also below is a list of important SAP MM transaction codes which are used most frequently by SAP MM users:
| Transaction | Tcode |
| Create Material | MM01 |
| Change material type | MMAM |
| List of materials | MM60 |
| Create Vendor | XK01 |
| List of vendors | MKVZ |
| Create vendor material inforecord | ME11 |
| Extend material to multiple storage locations | MMSC |
| Maintain Material Source List | ME01 |
| Analyse Source List | ME06 |
| Create RFQ | ME41 |
| RFQ by Vendor | ME42 |
| RFQ By Material | ME4M |
| Maintain Quotation | ME47 |
| Quotation Comparison Price List | ME49 |
| comparison evaluation with weighting keys | ME64 |
| Maintain Quota | MEQ1 |
| Create Purchase requisition | ME51N |
| PR Release | ME54 |
| Create Purchase Order | ME21N |
| Release PO (Collective/Individual) | ME28 |
| Assign Source List to PO | ME56 |
| Auto Convert PR to PO | ME 59 |
| Goods Movemnent | MIGO |
| Create Reservation | MB21 |
| Maintain Scheduling Agreement Schedule | ME38 |
| Maintain Scheduling Agreement | ME31L |
| Release Scheduling Agreement | ME84 |
| Create Contract | ME31K |
| Release Contract | ME35K |
| Change Price in Contract | MEKR |
| Create Stock | MB1C |
| View Stock | MMBE |
| Stock availability | CO09 |
| Material Debit/Credit | MR22 |
| Physical Inventory Sync | MI01 |
| Physical Inventory Analysis | MI07 |
| Print physical inventory doc | MI21 |
| Stock requirement | MD04 |
| Material Docs display list | MB51 |
| Cycle Count (ABC Analysis) | MIBC |
| Subcontractor Stock | MBLB |
| Stock in transit | MB5T |
| Consignment Stock | MB54 |
| Post zero stock balance (BI session) | MI35 |
| Transfer Posting | MB1B |
| Create Condition | MEK1 |
| Condition Overview | MEKA |
| Invoice Verification | MIRO |
| Release Blocked Invoices | MRBR |
| GR/IR List of Balances | MB5S |
| Parking the invoice | MIR7 |
| Display Invoice docs | MIR4 |
| MRP Run | MD01 |
| MRP List | MD05 |
| Reason for requirement | MD09 |
| List of PRs | ME5A |
You may also want to download a complete SAP MM end user manual with step by step process and screen shots from this download link.