Induction Manual for MM

CLIENT: GMR GROUP

Induction Manual SAP Materials Management

VERSION

1.0

DATE

27.03.0008

Page | 1

SAP MM Induction Manual

Table of Contents Business Introduction ............................................................................................................................................................. 6 Airports ............................................................................................................................................................................... 6 Energy Sector ...................................................................................................................................................................... 6 Roads Sector ....................................................................................................................................................................... 6 Agro Sector.......................................................................................................................................................................... 6 GMR Varalakshmi Foundation ............................................................................................................................................ 7 MM Organization Structure .................................................................................................................................................... 8 Energy Sector ...................................................................................................................................................................... 9 Roads Sector ..................................................................................................................................................................... 10 Agro Sector........................................................................................................................................................................ 11 Property Sector ................................................................................................................................................................. 12 Aviation Sector .................................................................................................................................................................. 13 RAXA.................................................................................................................................................................................. 14 Foundation Sector ............................................................................................................................................................. 15 Purchase Groups ................................................................................................................................................................... 16 Procurement Process ............................................................................................................................................................ 17 Procurement Process in GMR ............................................................................................................................................... 19 Domestic Procurement ..................................................................................................................................................... 19 Import Procurement ......................................................................................................................................................... 19 Stock Transfer ................................................................................................................................................................... 19 Diagrammatic Representation .......................................................................................................................................... 20 Steps to be followed for Procurement Process in SAP ......................................................................................................... 21 Master Data in MM ............................................................................................................................................................... 22 Material Master ................................................................................................................................................................ 22 Material Types .............................................................................................................................................................. 22 Number Range for Material Type ................................................................................................................................. 22 Sector – Wise Applicability............................................................................................................................................ 23 Valuation Classes for Material Type ............................................................................................................................. 23 Vendor Master .................................................................................................................................................................. 24 Vendor Account Groups ................................................................................................................................................ 24 Page | 2


Number Range for Vendor Account Group................................................................................................................... 24 Purchase Requisition............................................................................................................................................................. 25 Document Types for Purchase Requisition ....................................................................................................................... 25 Item Categories ................................................................................................................................................................. 25 Release Strategy for Purchase Requisition ....................................................................................................................... 28 Quotation Process................................................................................................................................................................. 29 Request for Quotation/Maintain Quotation..................................................................................................................... 29 Price Comparison Sheet .................................................................................................................................................... 29 Purchase Order ..................................................................................................................................................................... 30 Document Types for Purchase Order................................................................................................................................ 31 Item Categories ................................................................................................................................................................. 31 Account Assignment ......................................................................................................................................................... 32 Account Assignment Category ...................................................................................................................................... 32 Release Strategy for Purchase Order ................................................................................................................................ 34 Agro Sector.................................................................................................................................................................... 34 Energy Sector ................................................................................................................................................................ 35 RAXA .............................................................................................................................................................................. 36 FMS ............................................................................................................................................................................... 37 Property ........................................................................................................................................................................ 38 Agro Corporation .......................................................................................................................................................... 39 Roads Sector ................................................................................................................................................................. 40 Purchasing Document Type Matrix ....................................................................................................................................... 41 Goods Receipt ....................................................................................................................................................................... 42 Quality Inspection for Goods Receipt ............................................................................................................................... 43 Invoice Verification ............................................................................................................................................................... 44 Invoice Verification for Import Purchase .......................................................................................................................... 45 Invoice Verification for Emergency Purchase ................................................................................................................... 45 Invoice Verification for External Service ........................................................................................................................... 45 Outline Agreements – Contracts........................................................................................................................................... 46 Document Types for Contracts ......................................................................................................................................... 47 Release Strategy for Contracts.......................................................................................................................................... 49 Agro Sector.................................................................................................................................................................... 49 Page | 3


Energy Sector ................................................................................................................................................................ 50 RAXA .............................................................................................................................................................................. 50 FMS ............................................................................................................................................................................... 51 Property ........................................................................................................................................................................ 52 Agro Corporation .......................................................................................................................................................... 53 Roads Sector ................................................................................................................................................................. 54 Pricing Procedure .................................................................................................................................................................. 55 Calculation Schemas ......................................................................................................................................................... 55 GMR Local Pricing procedure ........................................................................................................................................ 55 GMR Import Pricing Procedure ..................................................................................................................................... 55 Vendor Schema Group ...................................................................................................................................................... 55 Schema Group for Purchasing Organization ..................................................................................................................... 56 Assignment of Schema Group to Purchasing Organization .............................................................................................. 56 Schema Determination ..................................................................................................................................................... 56 Schema Determination for Stock Transport Order ........................................................................................................... 57 Tax Codes .............................................................................................................................................................................. 57 External Services ................................................................................................................................................................... 58 Service Master .................................................................................................................................................................. 58 Service Category............................................................................................................................................................ 59 Valuation Class for Service Category ............................................................................................................................ 59 Number Range for Service Category ............................................................................................................................. 60 Service Procurement ............................................................................................................................................................. 61 Service Entry Sheet ........................................................................................................................................................... 61 Release Procedure for Service Entry Sheet....................................................................................................................... 61 Movement Types .................................................................................................................................................................. 62 Physical Inventory Process .................................................................................................................................................... 63 Reporting............................................................................................................................................................................... 64 MM60 – Materials List ...................................................................................................................................................... 65 MKVZ – List of Vendors: Purchasing ................................................................................................................................. 66 ME1M – Info Record by Material ...................................................................................................................................... 67 ME0M – Source List by Material ....................................................................................................................................... 68 ME5A – List Display of Purchase Requisition .................................................................................................................... 69 Page | 4


ME4S – RFQs per Collective Number ................................................................................................................................ 70 ME80FN – General Evaluations......................................................................................................................................... 71 ME2N – Purchase Order by PO Number ........................................................................................................................... 72 ME2L – Purchase Order by Vendor ................................................................................................................................... 73 ME2M – Purchase Order by Material ............................................................................................................................... 74 ME2S – Reporting on Services: Planned/Actual Comparison ........................................................................................... 75 MB51 – Material Document List ....................................................................................................................................... 76 MMBE – Stock Overview ................................................................................................................................................... 77 MB52 – Display Warehouse Stocks of Material ................................................................................................................ 78 MB5B – Stock for Posting Date ......................................................................................................................................... 79 MB5T – Stock in Transit .................................................................................................................................................... 80 MB25 – Reservation List ................................................................................................................................................... 81 MC.1 - Plant Analysis: Stock: Selection ............................................................................................................................. 82 Z Transactions ....................................................................................................................................................................... 83 Price Comparison Sheet .................................................................................................................................................... 83 Material Gate Pass ............................................................................................................................................................ 87 Returnable Gate Pass .................................................................................................................................................... 87 Non Returnable Gate Pass ............................................................................................................................................ 89 Reporting on Material Gate Pass .................................................................................................................................. 91 Goods Issue on a Chargeable Basis ................................................................................................................................... 93 Sector Specific Scenarios....................................................................................................................................................... 97 Energy Sector .................................................................................................................................................................... 97 Agro Sector........................................................................................................................................................................ 97 Road Sector ....................................................................................................................................................................... 97 Client Structure ..................................................................................................................................................................... 98 GMR Transport Request Form ...................................................................................................................................... 99 Repository of Issues ............................................................................................................................................................ 100 Issue1: Version Management in Purchase Orders ......................................................................................................... 100 Issue 2: Price Change in Service Purchase Orders .......................................................................................................... 102

Page | 5


Business Introduction GMR Group is a Bangalore headquartered global infrastructure major with interests in the Airports, Energy, Highways and Urban infrastructure. In addition, the manufacturing sector, spanning the Agri-business includes Sugar and Ferro alloys. The Group is also actively engaged in the areas of Education, Health, Hygiene and Sanitation, Empowerment & Livelihoods and Community-Based Programmes under its Foundation wing, GMR Varalakshmi Foundation.

Airports GMR Group is developing a world-class Greenfield international airport in Shamshabad, Hyderabad and modernizing and restructuring the Indira Gandhi International Airport in New Delhi. Both these projects are being developed under Public-Private Partnership model.

Energy Sector GIL’s Energy business consists of three operating facilities aggregating to 808.5 MW at Mangalore, Chennai and Vemagiri. Another five projects are under development. GMR’s strategy is to create an attractive portfolio of assets based on a mixture of fuels like Naphtha, Gas, Coal, Hydro etc. They are:  GMR Energy Limited, Mangalore  GMR Power Corporation Pvt. Ltd. , Chennai

     

Vemagiri Power Generation Limited GMR (Badrinath) Hydro Power Generation Pvt. Ltd GMR Orissa Power Project Talong Power Project Bajoli Power Project Chhattisgarh Power Project

Roads Sector The Company is a leader in the Highways business through six projects evenly divided amongst annuity and toll-based operations. While, the annuity based projects, Tambaram-Tindivanam (93 kms) and Tuni-Anakapalli (59 kms) are operational it is simultaneously developing 4 other projects Ambala– Chandigarh (35 kms), Jadcherla (46 kms) and Ulundurpet (73 kms) toll based and the Pochanpalli (86 kms) annuity based project. All the four projects have achieved financial closure on time.

Agro Sector GMR Industires Limited (GIDL), the Agri – business division of GMR group, is a distinguished and rapidly expanding sugar producer in India. GIDL’s products include M-30 and S-30 grades of sugar along with Cogenerated power, distillery products such as Ethanol, ENA, Rectified Spirit and Bio-Fertilizer. Its manufacturing facilities are located at Sankili, in rural Andhra Pradesh and at Haliyal in Karnataka. Page | 6


GMR Varalakshmi Foundation GMR Varalakshmi Foundation (GMRVF) is the Corporate Social Responsibility arm of the GMR Group. It works to improve lives and livelihoods of communities where the Group has a presence. The thrust areas of the Foundation’s activities are Education; Health, Hygiene & Sanitation; Empowerment and Livelihoods and Community - based programme.

Page | 7


MM Organization Structure

Page | 8


Energy Sector

3000 Roads Purchasing Organization

Energy Sector 2000

2100

2150

2200

2300

2250

GEL

GPCL

VPGL

GBHPL

Kamalanga

GMEPL

2000 GEL Plant Mangalore

2100

2150

2200

2300

GPCL Plant

VPGL Plant

GBHPL plant

Kamalanga

2200

2101

2151

GEL Plant - Talong

GPCL Plant - O & M

VPGL Plant - O & M

2300 GEL Plant - Bajoli Holi

2101

2151

Purch. Org for HHI

Purch. Org for KPS

2400 GEL Plant Corporate Office

2500 GEL Plant - Delhi

Storage Locations for 2000.xlsx

Page | 9






Roads Sector

3000 Roads Purchasing Organization

Roads Sector

Page | 10

Co. Code 3110

Co. Code 3120

Co. Code 3130

Co. Code 3210

Co. Code 3220

Co. Code 3230

Co. Code 3110

GTTEPL

GTAEPL

GPEPL

GACEPL

GJEPL

GUEPL

GPPL

3110

3120

3130

3210

3220

3230

3110

GTTEPL Plant

GTAEPL Plant

GPEPL Plant

GACEPL Plant

GJEPL Plant

GUEPL Plant

GPPL Plant

S Loc RS01

S Loc RS02

S Loc RS03

S Loc RS04

S Loc RS05

S Loc RS06

P Group

P Group

P Group

P Group

P Group

P Group

P Group

GTTEPL

GTAEPL

GPEPL

GACEPL

GJEPL

GUEPL

GPPL

S Loc RS07


Agro Sector

4000 Agro Purchasing Organization

Agro Sector

Page | 11

4000 GMR Industries Limited

4001

4002

4003

4011

4012

4013

4098

4099

GIDL Sugar Plant - Sankili

GIDL Cogen Plant - Sankili

GIDL Distillery Plant - Sankili

GIDL Sugar Plant - Haliyal

GIDL Cogen Plant - Haliyal

GIDL Distillery Plant - Haliyal

GIDL Aviation Plant

GIDL Corporate Office

Storage Location AVST

S loc CR01


Property Sector

5000 Property Purchasing Organization

Property Sector

Page | 12

5010

5020

5500

GMR Properties Pvt. Ltd.

GMR Estates Private Ltd

GMR Krishangiri SEZ Ltd

5010

5020

5500

GMRPPL Plant

GMREPL Plant

GMRSEZ Plant

S Loc PR01

S Loc ER01

S Loc SE01


Aviation Sector

8100 Aviation Purchasing Organization

Aviation Sector 8100

GMR Aviation Pvt. Ltd.

8100

GAPL Plant

Purchase Group GAP

Page | 13


RAXA

RAXA 3000 Roads Purchasing Organization

8000

Page | 14

RAXA Security Services Pvt. Ltd.

Plant 8000 RAXA Security Services Ltd.

S Loc RX01

S Loc RX02

Uniforms

Arms & Weapons


Foundation Sector

8600 Foundation Purchasing Organization

Foundation Sector

Page | 15

8600 GMR Varalakhsmi Foundation

Plant 8601 Estates and Hotels

Plant 8602 GMRIT Engg & PG

Plant 8603 GMRIT PG Diploma

Plant 8604 SGCSRC – UG & PG

Plant 8605 SGCSRC – B.Ed

Plant 8606 GMRVF – Rajam WIng

Plant 8607 GMRVF Corporate

S Loc VF01

S Loc VF02

S Loc VF03

Sloc VF04

S Loc VF05

S Loc VF06

Sloc VF07


Purchase Groups The attached excel sheet contains the purchasing groups for GMR:

Purchase Groups.xlsx

Page | 16


Procurement Process The standard procurement process in SAP consists of the following activities:

1. Determination of requirements: The user department responsible can manually pass a requirement for materials to the Purchasing department through a purchase requisition you have set a MRP procedure for a material in the material master, the R/3 System automatically generates a purchase requisition. 2. Determination of the source of supply: The R/3 System helps the buyer determine possible sources of supply. You can use determination of the source of supply to create requests for quotation (RFQs) and then enter the quotations. You can also access existing purchase orders and conditions in the system. 3. Vendor selection: The system simplifies the selection of vendors by making price comparisons Page | 17


between the various quotations. It automatically sends rejection letters. 4. Purchase order processing: The system facilitates data entry by providing entry aids when you are entering purchase orders. 5. Purchase order monitoring: The buyer can monitor the processing status of the purchase order online at any time and can determine whether goods or an invoice have been received for the relevant purchase order item. The system also supports reminder procedures. 6. Goods receipt: The system compares the goods receipt quantity with the purchase order quantity. 7. Invoice verification: Vendor invoices are checked for accuracy of prices and contents. 8. Payment processing: Financial Accounting normally deals with vendor payments.

Page | 18


Procurement Process in GMR All procurement activity in GMR falls under the one of the following categories:

Domestic Procurement Domestic procurement refers to all procurement activity carried out with domestic vendors. Domestic procurement can take the following forms: Procurement of Materials 2. Procurement of Services 3. Composite Procurement ( Procurement of both Service & Materials in a single purchasing document) 4. Asset Procurement 1.

Import Procurement Import procurement deals with procurement of goods from foreign vendors. Additional pricing components relevant to Import Custom Duty in India such as Basic Custom Duty, Special Custom Duty, CVD, and ADC are included in the purchasing document. These are treated as planned delivery costs and can be invoiced separately in SAP before the goods have been received for payment to custom authorities. Import procurement is used for: 1.

Procurement of Materials (Supply)

Stock Transfer Both Intra company and Inter company stock transfer is carried out in GMR in integration with the Sales and Distribution module in SAP. The basic steps involved in a stock transfer process are: 1. 2. 3. 4. 5. 6.

Page | 19

Creation of STO purchase requisition from the requesting plant Conversion of STO purchase requisition into STO purchase order Creation of Outbound delivery document with respect to STO purchase order Post Goods Issue Billing Goods receipt at receiving plant with respect to outbound delivery.


Diagrammatic Representation

Procurement

Domestic

Material Procurement

Page | 20

Service Procurement

Composite Procurement

Import

Asset Procurement

Material Procurement

Stock Transfer

Intra Company Transfer


Inter Company Transfer

Steps to be followed for Procurement Process in SAP Create Purchase Requisition

Release Purchase Requisition

Request for Quotation/Quotation

Price Comparison

Create Purchase Order

Release Purchase Order

Goods Receipt

Invoice Verification

Page | 21


Master Data in MM A standard pre-requisite for carrying out the procurement cycle in MM is the creation/maintenance of the following master data: 1. 2. 3. 4. 5.

Material Master Vendor Master Info Record Source List Service Master

Material Master Material Types The following material types have been customized for use: 1. ZROH 2. ZHLB 3. ZHIB 4. ZAWA 5. ZBYP 6. ZCAP 7. ZDIN 8. ZERS 9. ZFRT 10. ZHER 11. ZHMI 12. ZNBW 13. ZPIP 14. ZRBY 15. ZSCM 16. ZVRP

Raw materials Semi finished Product Operating supplies Trading Goods By Product Capital Goods Service Spare Parts Finished Product Manufacturer Part Production Resource/Tool No valuated materials Pipeline materials Semi finished Product Scrap Materials Packaging

Number Range for Material Type All material types have been set to ‘External’ number assignment.

Page | 22


Sector – Wise Applicability Material Type ZAWA ZBYP ZCAP ZDIN ZERS ZFRT ZHER ZHIB ZHLB ZHMI ZNBW ZPIP ZRBY ZROH ZSCM ZVRP

Description

Sectors (Applicability) Energy Roads Agro Properties

RAXA

Aviation Foundation

Trading Goods By Product Capital Goods Service Spare Parts Finished Product Manufacturer Part Operating supplies Semi finished Product Production Resource/Tool Non valuated materials Pipeline materials Semi finished Product Raw materials Scrap Materials Packaging

Valuation Classes for Material Type Valuation Classes per Material Type.xlsx

Page | 23


Vendor Master Vendor Account Groups The following Vendor Account Groups are relevant to Purchasing: 1. 2. 3. 4. 5.

GDV1 - Domestic Vendor GIV2 - Import Vendor GSV3 - Service Vendor GST5 - Stock Transfer GOV6 - One time Vendor

Number Range for Vendor Account Group The Vendor Account Groups mentioned above have been set to ‘Internal’ number assignment. Sl.No 1 2 3 4 5

Page | 24

Account Group code Description GDV1 Domestic Vendor GIV2 Import Vendor GSV3 Service Vendor GST5 Stock Transfer GOV6 One time Vendor

Number range 100000 - 199999 200000 - 299999 300000 - 399999 500000 - 599999 600000 - 699999


Purchase Requisition Create Purchase Requisition


   -

Procurement Process is SAP is triggered by the specification of requirements, that is, creation of a purchase requisition. Purchase Requisition is raised by the user department should contain the following information: Material/Service required Quantity Requirement Date A purchase requisition can be raised to initiate the following kinds of procurement activity: Asset Procurement Material Procurement Service Procurement Account assigned procurement

Document Types for Purchase Requisition GMR specific purchase requisition types have been created to initiate different procurement processes. The available document types are:     

PIND - Domestic Purchase Requisition PIMP - Import Purchase Requisition PSER - Service Purchase Requisition PMMS - Maintenance of Materials and Services PSTO - Stock Transfer Purchase Requisition

Item Categories Item Category is the key defining how the procurement of a material or service item is controlled. The following item categories are being used in GMR:

Page | 25


Item category

Description

[]

Standard

D

Service

U

Stock Transfer

L

Subcontracting

Document Type

Description

Number Range

Remarks

PIND

Domestic Purchase Requisition

0010000000-0019999999

Except Item Category ‘D’

PIMP

Import Purchase Requisition

0030000000-0039999999

Only for Import purchase

PSER

Service Purchase Requisition

0020000000-0029999999

Only Item Category ‘D’ (Services) is permissible

PMMS

Maintenance of Materials and Services

5000000000-5999999999

Both Material and Service requirements can be clubbed together at requisition level using this document type

PSTO

Stock Transfer Purchase Requisition

0040000000-0049999999

Only Item Category ‘U’ (Stock Transfer) is permissible

 

All direct purchase requisitions are subject to release strategy and need to be approved. After approval, the requisition will be available to the required procurement group for necessary action. Document is not modifiable after release. User Departments can only make changes to the Purchase Requisition by cancelling the release and repeating the process again from start.

Page | 26


   

In Plants where O&M processes are involved, purchase requisitions are raised by the O&M contractor and released by authorized persons in GMR to initiate the procurement process. The field ‘Requisition Tracking Number’ is used to identify the requisition scenario such as Emergency/Routine/Shutdown. Contracts, if available for a specific material, can be referred at the time of raising a requisition. Standard reports are available for analysis.

Page | 27


Release Strategy for Purchase Requisition Release Procedure for purchase requisition is common across all sectors.

Page | 28


Quotation Process Create Purchase Requisition



Price Comparison

Request for Quotation/Maintain Quotation Standard SAP functionality will be used for the RFQ/Maintain Quotation process. The document types used are:  GRFQ - GMR RFQ  GRFS - RFQ for Services Internal number assignment is used for document numbering having a maximum length of 10 digits. The same number range is used for all company codes. Number Range: 6000000000 - 6099999999   

Any technical specifications can be maintained in the ‘Item/Header text’ of the RFQ document The justification for selecting the vendor will be entered in the ‘Header Text’ field. Requirement Tracking Number is used to monitor the procurement of required materials or services. In GMR, this will be used to identify the line of business such as Sugar/Cogen/ Distillery.

Price Comparison Sheet Transaction code: zmmtcpc01 The standard price comparison function in SAP suggests a preferred source based on the least price comparison taking very few other pricing components into account. Please refer the section on z-transactions for Price Comparison Sheet (customized) details. (Page 62) Page | 29


In order to remove this limitation, a custom transaction has been developed for Price Comparison in GMR.

Purchase Order Create Purchase Requisition



Price Comparison





A purchase order is a formal request to a vendor to supply certain goods or services under the stated conditions.  In SAP, a purchase order can be created referencing the following documents: o Purchase Requisition o Quotation o Contract o Other Purchase Order  Purchase Orders can also be created without referencing any document. Such purchase orders will be treated emergency purchase orders making use of document type GEME

Page | 30


Document Types for Purchase Order The following document types exist for GMR: 1. 2. 3. 4. 5. 6. 7.

GDOM - Domestic Purchase Order GIMP - Import Purchase Order GSER - Service Purchase Order GCAP - Budgeted Cap Purchase Order ZCAP - Non Budgeted Cap Purchase Order GSTO - Stock Transfer Purchase Order GEME - Emergency Purchase Order

Item Categories Item Category is the key defining how the procurement of a material or service item is controlled. The following item categories are being used in GMR: Item category

Description

[]

Standard

D

Service

U

Stock Transfer

L

Subcontracting

Page | 31


Document Description Type GDOM Domestic Purchase Order

0010000000-0019999999

GIMP

Import Purchase Order

0030000000-0039999999

GSER

Service Purchase Order

0020000000-0029999999

GCAP

Budgeted Cap Purchase Order Non Budgeted Cap Purchase Order Stock Transfer Purchase Order

5000000000-5099999999

GEME

Emergency Purchase Order

4900000000-4999999999

GWOD

Work Order

5200000000 5299999999

ZCAP GSTO

Number Range

Remarks

Only Item Category ‘D’ (Services) is permissible

5100000000-5199999999 0040000000-0049999999

Only Item Category ‘U’ (Stock Transfer) is permissible

Both material and services can be procured in a single purchasing document

Account Assignment Account assignment specifies the object (example cost center, sales order, project) that are charged when a purchase order is raised for direct usage or consumption. Account assignment to be charged is specified through Account Assignment Category.

Account Assignment Category The account assignment category determines: 

The nature of the account assignment (cost center, sales order, and so on)



Which accounts are to be charged when the incoming invoice or goods receipt is posted



Which account assignment data you must be provided

Page | 32


Description

Required Account Assignment Data

Remarks

Cost center

Cost Center and G/L Account Number

Applicable to all sectors

Asset

Asset Number


Order

Order and G/L Account Number


Project

Project and G/L Account Number

Applicable to Roads, Energy and Agro Sectors

Page | 33


Release Strategy for Purchase Order Agro Sector

Page | 34


Energy Sector

Page | 35


RAXA

Page | 36


FMS

Page | 37


Property

Page | 38


Agro Corporation

Page | 39


Roads Sector

Page | 40


Purchasing Document Type Matrix

Page | 41

Type of Procurement

PR Document Type

PO Document Type

Vendor Account Group

Domestic

PIND

GDOM

GDV1

Import

PIMP

GIMP

GIV1

Service

PSER

GSER

GSV3

Composite

PMMS

GWOD

GSV3

Stock Transfer

PSTO

GSTO

GST5


Goods Receipt Create Purchase Requisition



Price Comparison



Goods Receipt

In GMR Group the Goods Receipt Process is done by Stores Person. The Various Categories of Goods Receipts are as follows:Goods Receipt against Purchase Order for Raw-Material Packing Material Page | 42


Spares Asset Non-Valuated Items Imported Materials Consumables etc, Once the Goods are arrived at Security gate they will check and enter the details into the Register and then they send the Vehicle to Weigh Bridge for measure the Gross weight of vehicle. Once the goods arrive at Stores, the Stores person will physically verify the Goods with respect to the Purchase Order/Bill/DC and then receipt to Quality stock for User inspection. Verification of Test Certificates / Mandatory documents is done by Stores person. Then Stores department will raise two copies of MRIR (Material Receipt & Inspection Report) one for Accounts along with Excise Invoice for taking CENVAT credit and also for Payment and another one for Stores.

Quality Inspection for Goods Receipt The events which will take place for all goods subject to quality inspection upon receipt are:  Material is received from vendor with reference to purchase order  After generation of goods receipt, inspection lot with respective inspection plan is generated.  Sample is collected from goods receipt.  Inspection Lot result recording is done  Usage decision is done with reference to the goods posted in Quality Stock.  Based on the inspection If the material is accepted, it is moved to unrestricted stock else it is moved to blocked stock.

Page | 43


Invoice Verification Create Purchase Requisition



Price Comparison



Goods Receipt


Page | 44


Logistic Invoice verification is a process of accounting vendor invoice that has an underlying purchase order for goods received. In GMR, Invoice Verification is done by Accounts department. The Stores will send the Excise invoice and MRIR (Material Receipt & Inspection Report) to Accounts department after verified the goods physically. Presently the Invoice Verification will be done with reference to the Purchase Order / Purchase Requisition / Work Order.

Invoice Verification for Import Purchase In case of Import purchases once the vendor confirms the delivery of goods to GMR, the GMR will inform the clearing agent for preparing the relevant statutory documents and clear the goods from the Customs authorities by paying the Customs Duties like Basic customs, Counter Veiling Duty, Education Cess on CVD and Additional Duty of Customs (ADC) etc,. After clearance from the Customs authorities the same will be dispatched to locations. The Respective Stores person will physically verify the Quantity with reference to the Purchase Order. Once the goods are cleared from quality department the accounting entry will be posted giving credit to vendor based on the actual vendor invoice.

Invoice Verification for Emergency Purchase There are some instances where in for miscellaneous items like stationery, emergency Purchase and other cash Purchases for those small item purchases initially will not be any Purchase Document but the same will be regularize once the goods are received. Then Stores will send the Invoice to the Accounts department along with Purchase Order for Payment.

Invoice Verification for External Service In case of services the above procedure will be the same except where in the place of quality check the services received will be approved. The invoice verification will be done with reference to the Work Order after the approval of bill from the Concerned authorized person

Page | 45


Outline Agreements – Contracts Contract is a longer-term agreement between a Purchasing Organization and a vendor regarding the supply of materials or the performance of services within a certain period according to predefined terms and conditions. A Contract can take the following forms: -

Quantity Contract Value Contract Centrally Agreed Contract

In GMR, the requirement for contract is as follows: Energy Sector In energy sector, long term service agreement exists with fuel supplier for supply of fuel like naphtha, HSD, LSHS, fuel oil and natural gas. Based on the fuel consumed in the Plant, fuel is drawn from fuel supplier and invoice is raised by the supplier for the consumed quantity. Fuel is also procured through global tendering and the best bidder is awarded the Contract for supplying the fuel. Solid fuel like coal is procured either from domestic source or imported through the process of global tendering. Long term service agreement also exist for maintaining the healthiness of critical equipment like gas turbines, steam turbine etc. It is mainly a service Contract but can also include supply of OEM spares for the purpose of planned maintenance to maintain the efficiency of the equipment. Road Sector:Followings are Contracts handled by GMR Road Sector  Survey  Preparation of Bill of Quantity (BOQ)  Soil Investigation  Tree Cutting  Utility Shifting like (Electrical poles etc)  Structure like Bridges  Highways like Road Construction etc,  Road Marking  Street lighting  Toll plaza and Admin block Construction  Toll Plaza and HTMS (Highway Traffic Management System) Instrumentation  Arboriculture (Pre-Planting at center of road)  Crusher  Design and Drawing

Page | 46


Document Types for Contracts In order to fulfill the above requirements, the following document types have been created: Document Type

Description

Remarks

Number Range

GAGH

Acc& guesth contract

5400000000 - 5499999999

GCLK

Con.& lgl contract

5500000000 - 5599999999

GCMK

GMR Qty Contract

5600000000 - 5699999999

Copy of standard SAP ‘Quantity Contract’ document type

GCWK

GMR Value Contract

5700000000 - 5799999999

Copy of standard SAP ‘Value Contract ‘ document type

GITK

IT.Related contract

5800000000 - 5899999999

GLTC

Long term contracts 5900000000 - 5999999999

GOMK

Office main.Contract

6300000000 - 6399999999

GPMK

Hiring of Plnt & m/c

6100000000 - 6199999999

GPRK

Project Related Cont

6200000000 - 6299999999



Each contract document will be subject to release procedures and approval will be required. The contract document will not be modifiable after release. Changes to the contract can only be made by cancelling the release and repeating the process again from start.



The “Requirement Tracking Number” field will be used to enter “Emergency Services” for the relevant contract.



Authorization control is implemented for Creation/Amendment of the contract

Contract Release Orders can be created referencing the contract. Negotiated price, terms and conditions will flow into the contract release order from the contract document. The following information will be required before creating a contract release order: Page | 47


2. 3. 4.

Number of the Contract Quantity to be released (ordered) Delivery date



Contract Release Orders will be subject to release procedure. A printout of the same can be taken and send across to the vendor.

History of Contract will be available under ‘Release Documentation’ in the contract. It will contain the information – List of Release Order Number, Date of PO Creation, Quantity released and the Value.

Page | 48


Release Strategy for Contracts Agro Sector

Page | 49


Energy Sector

RAXA

Page | 50


FMS

Page | 51


Property

Page | 52


Agro Corporation

Page | 53


Roads Sector

Page | 54


Pricing Procedure Calculation Schemas The following two calculation schemas have been developed for GMR: Procedure

Description

GMRDOM

GMR Domestic Pricing Procedure

GMRIMP

GMR Import Pricing Procedure

GMR Local Pricing procedure

GMR Domestic Pricing Procedure.xlsx


GMR Import Pricing Procedure.xlsx

Vendor Schema Group The following vendor schema groups are available: Schema Group

Description

DS

Domestic Schema Vendor

IS

Import Schema Vendor

Vendor Schema Group is assigned to the Vendor Master in its ‘Purchasing Data’ view.

Page | 55


Schema Group for Purchasing Organization Schema Group P Org

Description

G001

GMR Schema Pur Org

Assignment of Schema Group to Purchasing Organization P Org

Description

Schema Group

2000

Energy Pur Org

G001

3000

Roads Pur Org

G001

4000

Agro Pur org

G001

5000

Property Pur Org

G001

6600

GCCL Pur Org

G001

8000

Raxa Pur Org

G001

8100

Aviation Pur org

G001

8600

Foundation Pur Org

G001

Schema Determination Pur Sch Grp

Vendor Sch Group

Pricing Procedure

Description

G001

DS

GMRDOM

GMR Domestic Pricing Procedure

G001

IS

GMRIMP


Page | 56


Schema Determination for Stock Transport Order

Tax Codes [To be updated once new tax codes are released]

Page | 57


External Services The Categories of External Services in GMR Group as Follows:          

Fabrication, assembly and other activities related to mechanical and electrical workshop Testing, Inspection, skilled consultancy services Training and soft skill development programs Dismantling of Equipment Erection of Structure & Testing of Equipment Repairs Calibration of Instruments Operation and Maintenance related Services Annual Maintenance Contract (AMC) Civil Related Services like housekeeping etc HR Related Services

Followings service contracts are handled in GMR Road Sector:              

Survey Preparation of Bill of Quantity (BOQ) Soil Investigation Tree Cutting Utility Shifting like (Electrical poles etc) Structure like Bridges etc Highways like Road Construction etc Road Marking Street lighting Toll plaza and Admin block Construction Toll Plaza and HTMS (Highway Traffic Management System) Instrumentation Arboriculture (Pre-Planting at center of road) Crusher Design and Drawing

Service Master Service Master record will serve as a source of service-specific data while creating service purchase orders. The following data need to be maintained in a service master record: Service number (System generates internal number) Service category Descriptive texts (short and long text) Page | 58


Base unit of measure Service / Material group Division Valuation class

Service Category Service category defines certain attributes of a service and has control function.In GMR, service master records can be categorized into the following categories:            

ADMN - Administrative Service AMCS - Annual Maint Service CONS - Construction Service CONT - Contract Service GENS - General Service GRND - Basis service ITSR - Hardware/Software Service LABR - Labour Service PLMT - Plant Maintenance Service SERV - Service: purchasing TECH - Technical Service TRCY - Training & Consultancy

Valuation Class for Service Category The attached excel sheet contains the valuation classes configured for services (per service category):

Valuation Class per Service Category.xlsx

Page | 59


Number Range for Service Category All service categories have been set to ‘Internal’ number assignment. Service Category

Number Range

Administrative Service

28000000 -

28999999

Annual Maint Service

30000000

-

30999999

Construction Service

20000000

-

20999999

Contract Service

27000000

-

27999999

General Service

23000000

-

23999999

Hardware/Software Service

24000000

-

24999999

Labour Service

29000000

-

29999999

Plant Maintenance Service

21000000

-

21999999

Service: purchasing

22000000

-

22999999

Technical Service

26000000

-

26999999

Training & Consultancy

25000000

-

25999999

Page | 60


Service Procurement Service Purchase Requisition DocType: PSER, Item Cat.:D

RFQ/Quotation Document Type: GRFS

Service Purchase Order Doc Type: GSER. Item Cat. :D

Service entry and Acceptance


Service Entry Sheet The system stores services that have been performed in service entry sheets. The relevant postings are made in Financial Accounting and Cost Accounting when the service entry sheets are signed off. Service entry sheets can be entered and signed off in one transaction or in two steps. Number Range: 1000000000 - 1999999999

Release Procedure for Service Entry Sheet Clarify Page | 61


Movement Types The following is the list of movement types used in GMR: Movement Goods Receipt Return Delivery Goods Issue

Transfer Posting

Back Flushing Sales Loan to Vendor Initial Upload Daily Cane Stock upload Goods Issue on a Chargeable basis

Page | 62

Movement Type 101 102 122 123 201 202 201 261

Use

311 301 303 305 201 601 541 542 561 961 Z11

Goods Receipt for purchase order into warehouse/stores Goods Receipt for purchase order into warehouse/stores - reversal Return Delivery to vendor Reversal of return delivery Consumption for cost center from warehouse Consumption for cost center from warehouse - reversal Goods Issue to manual reservation Goods Issue to reservation created against Maintenance Order/Production Order Transfer posting storage location (one - step) Transfer posting plant to plant (one - step) Transfer posting plant to plant - remove from storage Transfer posting plant to plant - place in storage Back Flushing PGI Goods Issue to vendor on loan basis Goods returned by vendor Receipt per Initial entry of stock balances into unrestricted use stock Cane Stock Upload Issue goods to vendor on a chargeable basis

Z12

Issue goods to vendor on a chargeable basis - reversal


Physical Inventory Process Physical Inventory (Stock verification) is the physical counting of the stocks to verify whether stocks are matching the records. The objective is to ensure that the materials held in stock or in the custody of various departments (storage locations) conform to the quantity, description and specifications shown in the book of accounts. The actual physical balances should match with the balance appearing in system records. Any shortage or surplus noticed on stock verification is investigated and is regularized after the approval of the competent authorities. The stock verification is done for the following purposes:

 

To verify the accuracy of the stock records To reflect the accurate value of stocks in the balance sheet of the Company.

The Physical Inventory Process for GMR Group is as follows:Presently GMR Group is following ‘Perpetual Physical Inventory’ Process   

All ‘A’ Class Items are Carrying out Monthly All ‘B’ Class Items are carrying out Quarterly For all materials Annual Inventory

Materials which comes under Physical Inventory Process are as follows      

Stock Materials Packing Materials Spares Materials Stock at Subcontractor Operating Supplies Semi-Finished Materials

Page | 63


Reporting The following standard reports are available in SAP: MM60 – Materials List MKVZ – List of Vendors: Purchasing ME1M – Info Record by Material ME0M – Source List by Material ME5A – List Display of Purchase Requisition ME4S – RFQs per Collective Number ME80FN – General Evaluations ME2N – Purchase Order by PO Number ME2L – Purchase Order by Vendor ME2M – Purchase Order by Material ME2S – Reporting on Services: Planned/Actual Comparison MB51 – Material Document List MMBE – Stock Overview MB52 – Display Warehouse Stocks of Material MB5B – Stock for Posting Date MB5T – Stock in Transit MB25 – Reservation List MC.1 - Plant Analysis: Stock: Selection

Page | 64


MM60 – Materials List

Page | 65


MKVZ – List of Vendors: Purchasing

Page | 66


ME1M – Info Record by Material

Page | 67


ME0M – Source List by Material

Page | 68


ME5A – List Display of Purchase Requisition

Page | 69


ME4S – RFQs per Collective Number

Page | 70


ME80FN – General Evaluations

Page | 71


ME2N – Purchase Order by PO Number

Page | 72


ME2L – Purchase Order by Vendor

Page | 73


ME2M – Purchase Order by Material

Page | 74


ME2S – Reporting on Services: Planned/Actual Comparison

Page | 75


MB51 – Material Document List

Page | 76


MMBE – Stock Overview

Page | 77


MB52 – Display Warehouse Stocks of Material

Page | 78


MB5B – Stock for Posting Date

Page | 79


MB5T – Stock in Transit

Page | 80


MB25 – Reservation List

Page | 81


MC.1 - Plant Analysis: Stock: Selection

Page | 82


Z Transactions In GMR, the following processes have been implemented using customized transactions/movement types:    

Price Comparison for Quotations Material Gate Pass ( Returnable/Non Returnable) Goods issue on a chargeable basis Daily Cane Stock Upload

Price Comparison Sheet Transaction code: zmmtcpc01 The standard price comparison function (transaction code: ME49) in SAP suggests a preferred source based on the least price comparison taking very few other pricing components into account. In order to remove this limitation, a custom transaction has been developed for Price Comparison in GMR. It has the following features: 1. Takes a host of pricing components into account while performing a price comparison such as inspection charges, discount, shipment charges, service tax, excise duty, custom duty, insurance, freight charges and the like. 2. Provides for entry of other clauses vendor selection such as technical competency, vendor rating and other terms and conditions such as payment terms, delivery period, guarantee/warranty and the like. 3. Provision of overriding the preferred source by manually entering the ‘Recommended Vendor’. 4. It is possible to create a Price Comparison Sheet referencing a purchase requisition, quotation number or collective number of an RFQ. The Price Comparison sheet can also be printed using this transaction.

Page | 83


Page | 84


Page | 85


Page | 86


Material Gate Pass The following types of Material Gate Pass are available:  Returnable Gate Pass  Non Returnable Gate Pass  

Gate Pass for a material can either be created manually or referencing a material document. Print of the Material Gate Pass can be taken in the following forms:  Vendor Copy  Stores Copy  Security Copy  Department Copy.

Returnable Gate Pass Transaction Code: zmmtc_gp_02 

‘Return Date’ field is mandatory.

The returned quantity along with the expected/actual return date can be updated in the gate pass.

Page | 87


Page | 88


Non Returnable Gate Pass Transaction Code: zmmtc_gp_01 

‘Return Date’ field (for material) is not available.

Page | 89


Page | 90


Reporting on Material Gate Pass Transaction Code: zmmtc_gp_03 Reporting on Returnable/Non Returnable gate pass is available.

Page | 91


Page | 92


Goods Issue on a Chargeable Basis Transaction Code: MIGO/MB1A Movement Type: Z11 In GMR Group, Fertilizers/Bio – Fertilizers are issued to farmers on a chargeable basis from the distribution center based on the application. Transfer of fertilizers from storage location to distribution center takes place on a requirement basis. We make use of the customized movement type Z11 that allows us to enter the vendor to whom the goods are being issued. The fields ‘G/L Account’ and ‘Profit Center’ used to book the revenue are populated automatically. The cost of the material is deducted from vendor payables. 1. Goods Issue on a chargeable basis. Fields ‘G/L Account’ and ‘Profit Center’ are not populated initially.

Page | 93


2. Provision to enter the vendor.

Page | 94


3. Fields ‘G/L Account’ and ‘Profit Center’ are populated automatically on saving the document.

Page | 95


Page | 96


Sector Specific Scenarios Energy Sector Operation and Maintenance Process [Document to be attached] Scrapping and Selling of Waste Lubrication Oil [Document to be attached] Issue Spare Parts to Vendor on Loan Basis [Document to be attached]

Agro Sector Daily Cane Stock Upload [Document to be attached] Excise related transactions Please refer the CIN Induction Manual for Agro Sector.(Version 1-1)

Road Sector Goods Issue to Vendor on a Chargeable basis [Document to be attached]

Page | 97


Client Structure Client 100 SANDBOX

Client 300 GOLDEN CLIENT (Configuration Only) Transport through SCC1 Transport using release (BASIS involved)

Client 200 DEVELOPMENT

Client 400 QUALITY Approval required prior to Transport release (BASIS involved)

Client 500 PRODUCTION

Page | 98


GMR Transport Request Form Transport requests to production client require prior approval. A copy of the form used for transport approval process can be found below.

GMR_Transport request Form1_V5_KHH_12.02.2008.doc

Page | 99


Repository of Issues Issue1: Version Management in Purchase Orders SAP makes use of version control in order to monitor changes made to a purchase order. At the time of purchase order creation, the version of the purchase order is set to zero.

Thereafter, the version number of the purchase order increments by 1 when changes to a purchase order are made.

Example: The Net Price in the purchase order is changed from 10,000 INR to 20,000 INR

Please Note: If a previous version of the PO has NOT been released and sent to vendor, the system will retain the same version number in the PO. ( In GMR, a printout of the PO is taken and the hard copy is sent to the vendor). Page | 100


Once changes to a version are complete, the ‘version completed’ indicator needs to be set. Only then will the release procedure applicable to the purchasing document commence.

The version number also appears in the hard copy of the PO as ‘Amendment Number’.

The system always makes a Goods receipt against the latest version of the purchase order. If a version of the purchase order is still in progress, i.e. the ‘version completed’ indicator has not been set, the system will not allow us to make a goods receipt and will prompt us with an error.

Page | 101


Issue 2: Price Change in Service Purchase Orders Setting the ‘Price Change’ Indicator in a Service purchase order allows us to change the price in the service entry sheet for planned services in a purchase order. Scenario 1: Price Change Indicator not activated in Service PO

1. Price Change Indicator is not set at service specification level in purchase order

2. Service Entry sheet created referencing a Service purchase order. Gross Price is not editable for planned services in service entry sheet.

Page | 102


Scenario 2: Price Change Indicator is activated in Service PO 1. Price Change Indicator is set at service specification level in purchase order

Page | 103


2. Service Entry Sheet created referencing a purchase order. Price Change is allowed for planned services in service entry sheet. Gross Price field is editable.

Page | 104


Page | 105


Induction Manual for MM

Recommend Documents