Q.1 – What is Account Assignment Category?

Ans- Account assignment category: – A key indicating whether an item is to be assigned to an auxiliary account (such as a cost center). The account assignment category determines which account assignment details are required for the item (for example, cost center or account number).

Configuration: –

SPRO > MM > Purchasing > Account Assignment > Maintain Account Assignment Categories

Q.2- What is the process and steps for Service Procurement?

Ans- Service Procurement step by step – Special Procurement

Step 1: Create PO. Create a PO with ME21N Add vendor name, Purchasing Organization, Company Code & Purchasing Group. …

Step 2: Create Service Entry Sheet. Transaction code to create the service entry sheet is ML81N. …

Step 3: Release SES (Service Entry Sheet)

Q.3 What is the purpose of AAC U?

Ans- as name suggest Unknown acc ass cat (when u say i don’t know what is Account assignment cat to put for PO) generally PO without material master or Asset purchase

When can we use this account assignment category?

if you don’t know what account category to use in PO or PR then you can use U

I am creating an Asset Po but I don’t know which asset to put

so you can use U and create the PO

but at the time of Gr you will have to put Asset no

Q.4 What is T-code for SES Posting?

 Ans- ML81N SAP tcode for – Service Entry Sheet.

Q.5 What is T-code for Release PO?

 Ans- ME29N is a transaction code used for Release purchase order in SAP.

Q.6 What is Tcode for Print Output of PO

Ans- • Select Logistics > Materials Management > Purchasing > Purchase Order > Messages > Print/Transmit. Transaction Code.  ME9F.

Q.7 What Is the Difference Between a Blanket Purchase Order and The Framework Order?

Ans- In general, the Blanket POs are used for consumable materials such as office paper with a short text, with item category B. There need not be a corresponding master record, for the simplicity of the procurement. The FO, Framework Order, document type is used. Here, the PO validity period as well as the limits are to be mentioned. The GR, or Service Entry for the PO are not necessary in the case of Blanket POs. One need not mention the account assignment category during creation of the PO. It can be U, or unknown and be changed at the time of IR.

Q.8 How does the PO pick up the pricing schema?

Ans- The pricing procedure assigned to a vendor has a calculation schema attached to it. This schema

defines the various conditions’ prerequisite, calculation & sequence in the PO. Generally, only one type of pricing procedure is followed for all the vendors.

Q.9 What are the steps involved in Release Strategy Configuration?

Ans- Configure Release Strategies

SPRO: Materials Management -> Purchasing -> Purchase Order -> Release Procedure for Purchase Orders -> Define Release Procedure for Purchase Orders. When you click on this option, system will give sub options to proceed further. Please select Release Strategies

Q.10 What is purchase requisition process?

Ans- A purchase requisition process is the flow of events that is triggered when a department needs to make a purchase. From the creation of the request to the delivery of the products, there are multiple tasks to be completed before the purchasing team can fulfill the request.

Q.11 How Do You Create a Class?

Ans- Class is defined as the group of characteristics, which can be attributed to a product. Use Transaction CL01. Enter the value for the Class name and a small description. Select the group from it. The values on the different tabs are not mandatory, so you can skip the values if you wish or you can go to any extent needed. Save, and the Class is created.

Q.12 How Do You Change Characteristic?

Ans- Use Transaction Code CT04. Follow these steps: Format (numeric, character, etc.), Unit of Measure, Templates, Required Entry, Intervals as Values (?), descriptions for texts for characteristics and characteristic values, display options for characteristics on the value assignment screen, Allowed Values, Default Values that are set automatically on the Value Assignment Screen.

Q.13 What Is a Contract?

Ans- A contract is an agreement between a customer and a vendor that states that the vendor will supply material to the customer at an agreed price for a specified period of time. It can be based on either a total quantity or a total price. A contract avoids the need to create a new purchase order each time the material or service is required.

Q.14 What Are the Different Types of Contracts?

Ans- A contract can be one of the following two types:

◾ Quantity contract — In this type of contract, the purchasing department agrees with the vendor for supply of a specified quantity of material, or services.

◾ Value contract — In this type of contract, the purchasing department can limit the total spending for a material with a vendor. The release orders are valid only till the total spending for the value contract equals the total agreed upon value.

Q.15 What is the use of GR Based IR Indicator?

Ans- In goods-receipt-based (GR-based) invoice verification, the invoice relates not to the purchase order, but to individual deliveries. That is to say, the reference document for the invoice is not the PO but the delivery note or the goods receipt document.

Whether you use this approach depends on your billing arrangement with the vendor. This method can be advantageous, for example, when you know the order will be fulfilled by means of many partial deliveries.

Q.16 How are Purchasing Documents Numbered?

Ans-  In the SAP system, each document is assigned a unique number. These numbers can be alphanumeric also. You can assign these numbers in two ways, either internally or externally, depending on the policy of your company or enterprise. An internal number depicts that the SAP system assigns the number automatically, whereas an external number depicts that the person creating the document must supply manually. Alphanumeric assignment of numbers is only possible in the latter case.

Q.17 What are the Different Types of an Item Category?


Q.18 What Is the Difference Between Procurement for Stock and Procurement for Consumption?

Ans- If the material is of material type with quantity and value update, during GR against for PO without account assignment, both quantity and value will be updated. This will increase stock.

If the material is of material type with quantity and value update, during GR against PO with account assignment, the value will be updated to the account assignment given in the PO. The Stock wont update in this case.

If the material is of material type with quantity update only, without value update (like UNBW), system will always ask for account assignment in PO, since there is no accounting view in the material master. If you are doing GR for this material against PO with account assignment, the stock will increase. The accounting document will be generated for the GR, with KBS & WRX transaction keys.

Q.19 How Can We Return a Material That We Have Received with Reference to a Po?

Ans- In case of external vendor, when your company returns a good, received with reference to a purchase order, the reference of the PO is not mandatory to post the return in the system. The system just posts a goods receipt correction and issues to a credit memo against the vendor. However, if the vendor is internal, you may require the reference of the PO. In this case, the system automatically updates the stock, without any internal billing.

Q.20 How Are Free Items Managed in a Po?

Ans- Mark the item as FREE in the Purchase order. The price for such PO items will be zero.

Q.21 What Is the Difference Between Quantity and Value Contracts?

Ans- Quantity Contracts— When the total quantity to be ordered is known in advance during the validity period, the quality contract is used. This contract is considered as fulfilled when totaling of release orders of a given quantity has been issued.

 Value Contracts — When the total value of the release orders does not exceed a definite and predefined value, the Value contract is used. The contract is considered as fulfilled when totaling of release orders of a given value has been issued.

Q.22 List The Important Fields of a Service Master Record?

Ans- “The important fields of a Service Master Record are as follows:

◾Service number— Defined for external or internal numbering of the service

◾Service Category— Distinguishes between the types of services

◾Descriptive text— Contains a short or long description of the service

◾Base unit of measurement— Contains the unit in which you can measure the service

◾Material/Service group— Allows the service to be selected for grouping purpose

◾Valuation class— Finds the general ledger accounts that are related with the service

Q.23 What Is Tax Code?

Ans- The tax code defines how the tax will be calculated and posted in SAP R/3 System. Each item on which the tax is applicable is allocated to a tax code. The R/3 System reads this tax code for each item and calculates tax for it. This tax and tax code is a part of Purchase order.

Q.24 How does system determine Tax calculation procedure in the purchasing document?

Ans- Tax can be calculated for each line item of a PO separately based on the tax code. , TAXINN, which is a condition based tax procedure, is generally used. Tax procedure contains the condition type and necessary specification for each condition type. Account keys are assigned to condition types and these account keys determine the G/L to which the tax amount is to be posted (OB40). These account keys are maintained using t-code OBCN. (All these transactions are under Financial Accounting Global Settings >> Tax on Sales/Purchases >> Basic Settings). Tax codes are assigned to country codes and country are linked with tax procedure. Thus, based on tax code, corresponding tax procedure is determined and then calculation is done based on condition types in that tax procedure.

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