Purchasing Info Record Configuration and Explanation

Purchasing info record

Purchasing info records contain information on a vendor and the material we procure from this vendor.

We can store and maintain the following data in info records: 

Current and future prices and conditions (for example, freight and discounts) 

Delivery data (for example, planned delivery time and tolerances) 

Vendor data (for example, contacts) Texts. 

When we create purchasing documents (for example, purchase orders or contracts), the system displays data maintained in info records as default values.

Structure of Purchasing Info Record

A purchasing info record contains general data that is valid for every purchasing organization or every plant.  It also contains data (for example, prices and conditions) that is only valid for the relevant purchasing organization or relevant plant. We configure whether conditions are permitted at plant level.

When we create a purchase order, the system searches for info record for the purchasing organization/plant combination. If there is no such info record, the system searches for info record for the purchasing organization only.  

In the standard system, the following type of texts is set in the purchasing info record. 

Internal info memo record: this is an internal comment that is copied to the purchase order item. This text is not printed out. 

PO text in the purchasing info record: this is used to describe the PO item. It is copied to the purchase order item and printed out.

Options for maintaining info records

We can maintain info records manually or automatically from quotations, purchase orders, or outline agreements.

Manually we can create an info record for a vendor, material for a purchasing organization/plant using transaction ME11.

Updating an info record automatically

When we create or change quotations, contracts, and purchase orders, we can use the info update indicator to define that the info record is to be created or updated.

The system copies the conditions from the quotations, contracts and purchase orders to the info record.

The document number from a purchase order or contract release order is updated as the last purchasing document.

If no info record exists for the combination of vendor, material, and organizational level when we create or change a contract, the system creates an info record with the conditions from the Purchase order or contract release order.

Info update indicator

The info update indicator is set in configuration in below path

SPRO > Material Management > Purchasing > Environment Data > Define Default Values for Buyers

Click above

In the pop up Double click on Settings for Default Values

Select 01 – Default values for group 1 and click Details

Info update indicator for purchase order and Quotation is A – update with or without plant

close the pop up

Double click on Maintain Users

Input our user ID and click Display

In Parameters tab we have EVO and Parameter is 01 which means the info update indicator for Purchase order and quotation is A (update with or without plant) as seen in previous step.

Note: If the parameter EVO is not set for your user ID, then you need to click create and input parameter EVO and Parameter value 01 and Save.

Info update indicator: Purchase order

The condition control at plant level is set in customizing in below path

Click Define Condition Control at Plant Level

For our Plant 1111 conditions allowed with and without plant

The standard recommended condition at plant level is as above which is Conditions allowed with and without plant

  

Info records and prices

If info record is available system will copy the price and conditions from info record, if not it will copy from last purchase order. If last purchase order is also not available then we need to enter price manually.

Transaction code to create Info record – ME11

Transaction code to change Info record – ME12

Transaction code to display Info record – ME13

 Exercise

Create a purchasing info record for the following

Material – 3483

Vendor – 500000

Purchasing organization – 1111

Planned delivery time – 7 days

Purchasing group - 001

Standard qty – 10 kg

Gross price – 55 Rs/Kg

Validity period – 1 year

Discount on gross RA01 – 10% from 50 Kg onwards and 15% from 100 Kg onwards

Save

Note down the purchasing info record number

Purchasing info record 530000 created.

ME11

Input above data and press Enter

No Entry in general data press Enter

Click Conditions button at the top

Input validity period up to 1 year and condition type RA01 and put 10% and Enter

Select the line of condition type RA01 click Details

Input lower limit as 50 kg as per our requirement and click Back

Input condition type RA01 again and put 15% in amount field and click Details button

Input lower limit as 100 kg and click back button

Click Back button

Click Save

Note down the Purchasing info record number created

Vendor Master Record Configuration and Explanation

Vendor Master Data

Vendor master Data is an important master data in MM. When we create a purchasing document the system copies currency, payment data and delivery time from vendor master record.

Data in the vendor master record is subdivided into three categories

Ÿ General data: This includes the vendor's address and bank details. This data is valid for the whole client.

Ÿ Purchasing data: This includes the purchase order currency, incoterms, vendor’s tax data and partner roles. This data is maintained for each purchasing organization.

Ÿ Accounting data: This comprises data such as the number of the reconciliation account and the payment methods for automatic payment transactions. This is maintained at company code level.

Account Group in Vendor Master Record

The type of number assignment (internal or external) and the number range

The field selection-which fields are ready for user input, which fields must be maintained, and which fields are hidden 

Which partner schemas are valid 

The status-whether the vendor is a one-time vendor

In contrast to other master records, we can use a one-time-vendor master record for several vendors. It is a collective master record. For this reason, no vendor-specific data such as an address or bank details are stored for one-time vendors. This data is recorded in the relevant purchasing document only. When a purchasing document is created for a one-time vendor, the system automatically opens an additional data screen. In which we need to enter specific data, such as the vendors name, address, and bank details. 

Configuration of Account group for Vendor Master Record is as below

Click define Account Groups and Field Selection (Vendor)

Select Account group 0001 – Vendors and click Details

For Account group 0001 the number range is 01 –n 500000 to 599999

This means if we create a vendor with account group 0001 the internal number of vendor created will be in above number range.

Also this account group is vendor sub range relevant. This means we can decide vendor’s product range into different groups. For example detergents, lubricants and specify different ordering address for those groups.

  

The partner determination procedures are

Partner schema purchasing org – L1

Partner schema vendor sub range – L2

Partner schema plant level – L3

Partner schemas are defined in below IMG path

SPRO > Material Management > Purchasing > Partner Determination > Partner settings in Vendor Master Record > Define Partner Schemas

Click Define Partner Schemas

Select Partner Schema L1 and click Partner functions in Procedure

We can see which partner functions are allowed in Partner Schema L1. Similarly we can see which partner functions are allowed in Partner Schema L2 and L3 and also we can create our own partner schema and assign the partner functions we want.

  

Reconciliation Account in Vendor Master Record

When we create a vendor master record, we have to maintain a reconciliation account. The reconciliation account is a G/L account in G/L accounting. It reproduces a company's liabilities towards several vendors in G/L accounting.

In a typical Vendor master record in accounting view we can see the Reconciliation Account as 160000 for Domestic vendors as below.

Partner Roles

The vendor can have various functions in its interaction with our company. For example, during the procurement transaction the vendor is the order recipient, then the supplier of goods, the invoicing party, and finally, the payee.

By maintaining partner roles in the vendor master record, we can distribute one or more of these roles among different vendor master records.

The important partner roles for vendor are

VN – Vendor

GS – Goods supplier

IP – Invoicing party

AZ – Payment recipient

OA – Ordering address

We maintain Partner roles in IMG in below path

SPRO > Material management> Purchasing> Partner determination > Partner roles > Define partner roles

Click above

We can see some important partner roles like Ordering address,

Partner function VN – Vendor

We maintain permissible partner roles per account group in IMG in below path

SPRO > Material management> Purchasing> Partner determination > Partner roles > Define permissible partner roles per account group

Click above

Scroll down

Blocking a Vendor

To block a vendor master record, choose from the Purchasing menu, Master Data → Vendor → Purchasing → Block (transaction MK05). We can decide whether the vendor is to be blocked for just one purchasing organization or for all.

The transaction code to create a vendor centrally is XK01

Change vendor centrally XK02

Display vendor centrally XK03

The transaction code to create vendor purchasing is MK01

Change vendor purchasing XK02

Display vendor purchasing XK03

Exercise: Vendor Master Record

From head office perspective, create a vendor master record for the organizational levels company code 1111 and purchasing organization 1111. Create this vendor master record with the account group 0001.

The following data is to be entered in the master record.

Title:

Name: Bangalore Industrial Supplies

Search term: BIS

Street/House number: 17, 1^st Main Road, Peenya industrial area

Postal code/City 560058 Bangalore

Country: IN

Region:  10 (Karnataka)

Language: English

Accounting information the reconciliation account in G/L accounting has the description Trade Payables - Domestic. Use the F4 input help to determine the number of the reconciliation account.

160000

Cash management group – A1 (Domestic payments)

Purchasing data

Purchasing has agreed on the following conditions of payment: If we pay the invoice within 14 days, the vendor grants a discount of 3 %, and if we pay within 30 days, 2 % is deducted. The invoice has to be settled within 45 days. In this case, there is no cash discount. Use F4 input help to determine the relevant payment conditions.

0002

The purchase order currency used for the vendor is INR.

Enter a contact person (Amit) and telephone number (9191919191) for the vendor’s Purchasing department.

After you enter the data, save your entries.

XK01

Input above as per our Exercise data and Enter

Input above data and Enter

In Vendor control there is no entry press Enter

In Payment transactions also no entry Press Enter

No entry in contact persons press Enter

In Accounting information Accounting, put Reconciliation account 160000 and cash management group A1

Enter

Input Payment terms 0002 and Enter

In correspondence accounting no entry and press Enter

In Purchasing data put Currency INR, Sales person Amit and telephone 9191919191 and Enter

System will select partner function VN by default and press Enter

Click Yes

Vendor 500010 created