Account Assignment Category K In Sap Mm Tutorials
What is Service Purchase Order?
Service purchase orders are entered for services that are procured internally or externally. These purchase orders are different from standard ones as they don't require a goods receipt since they have no stock. Other than that, there are a few small differences in PO creation. First is the document type for these orders. It should be FO – Framework Order. To procure a service directly for a cost center, we will follow the below procedure.
Step 1) Go to transaction ME21N.
- Choose document type FO – Framework Order.
- Choose vendor.
- Choose validity start for PO.
- Choose Account Assignment Category - K and Item Category – D.
- Enter the description for the service.
- Enter the quantity and unit of measure.
- Enter the price for the service (e.g. 900 EUR per 1 AU – activity unit).
Step 2) On item level, there are few fields you need to maintain in order to create a valid PO for service. On the "Services" tab, enter the information about your service, quantity and price.
You might be prompted for Account assignment information.
Step 3) Here, you can enter the G/L account (it will be proposed in most cases), and cost center for service cost to be assigned.
- G/L account.
- Cost Center.
Step 4) On the Limits tab, you can enter the limit for unplanned services. Expected value that services should not exceed.
Step 5) Now choose the Delivery tab and uncheck the Goods Receipt check box. Services do not have goods receipt as they are not relevant for inventory management (they don't have stock).
Step 6) Account assignment tab shows the information we were asked to enter in pop-up window. If you are not asked to enter via pop-up you can enter information here.
Step 7) We don't need storage location for our item as it's not stock relevant.
You can save your changes and get the document number.
Change and display mode are accessed through the same transactions as for a standard purchase order, ME22N and ME23N.
An SAP blanket purchase order is used for purchasing consumables or services from a vendor which can be repeatedly procured during a specific period of time. Consumables include office or shop items such as pens, stationery, nuts or screws and services like routine repair work and other maintenance. A limit is set on the blanket purchase order and multiple Invoices can be processed provided that the total of all the invoices does not exceed the overall limit. In this tutorial, as part of our free SAP MM training, we explore the creation of an SAP blanket purchase order.
SAP Blanket Purchase Order
The basic components of the SAP blanket purchase order process are as follows:
- Create Framework Purchase Order
- Create Invoice
We walk through these components in the following sections.
Create Framework Purchase Order
Create the SAP blanket purchase order via transaction code ME21N.
In the header section of the purchase order, enter the following information for each blanket item for the selected vendor:
- Choose document type FO – Framework Order to categorize the order as a blanket purchase order. Every purchase order is assigned a document type to identify the purpose and functionality of the order.
- Enter the vendor master number in the Vendor field. For our example, we use vendor 9001 – Michaela Meier.
- Click the Additional Data tab in the header section and enter Validity Start and Validity End dates for the blanket purchase order. The validity dates provide the duration during which purchases can be made against the order. In our example, we set a one year validity period, starting on 09/26/2017 and ending on 09/26/2018.
Our example header data can be seen below:
In the item section of the SAP blanket purchase order, enter the following details:
- Select account assignment category K – Cost center to denote that a cost center should be specified and that all invoices should be charged to that cost center. The account assignment category list may contain standard and customized categories.
- Choose item category B – Limit. The item category of a purchase order identifies which type of procurement is taking place and triggers certain features. Item category B, for example, defaults a PO quantity of 1. This item category also switches off the goods receipt requirement for the blanket PO.
- Enter text for the item.
- Specify the plant for the procurement. In our example, we use plant 9001 – Berlin Distribution.
Our example item data can be seen below:
Click the Item Detail button to expand the section. Enter the following information:
- Click the Limits tab and enter the overall limit value. The total of all procurements for this purchase order during the validity period cannot exceed this value. Select the No limit tickbox if there should not be a maximum spend for the blanket order. In our example, we set a limit of 5000 EUR as can be seen below:
- Click the Account Assignment tab. Based on the account assignment indicator K specified in the item section, specify the cost center and G/L account that all invoices should post to. In our example below, we specified cost center 1000 and G/L account 400000.
Press Enter then Save. The purchase order will be saved as a framework order:
Now that we have an SAP blanket purchase order, we can begin posting invoices straightaway. Remember that the item category B disables the goods receipt requirement. Post invoices referencing the PO number via transaction code MIRO.
Once invoices have been posted, the invoice receipts will appear on the Purchase Order History tab. In our example we have created three invoices which total 5000EUR, as shown below:
Remember that our blanket purchase order limit was set to 5000 EUR. An attempt to create an additional invoice that exceeds the limit will result in the below error message:
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