Induction Manual for MM

5/19/2018 Induction Manual for MM

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Page | 1 SAP MM Induction Manual

CLIENT: GMR GROUP

Induction Manual

SAP Materials Management

VERSION 1.0

DATE 27.03.0008


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Table of ContentsBusiness Introduction ...........................................................................................................................................................

Airports .............................................................................................................................................................................

Energy Sector ....................................................................................................................................................................

Roads Sector .....................................................................................................................................................................

Agro Sector ........................................................................................................................................................................

GMR Varalakshmi Foundation ..........................................................................................................................................

MM Organization Structure ..................................................................................................................................................

Energy Sector ....................................................................................................................................................................

Roads Sector .....................................................................................................................................................................

Agro Sector ........................................................................................................................................................................

Property Sector .................................................................................................................................................................

Aviation Sector ..................................................................................................................................................................

RAXA ..................................................................................................................................................................................

Foundation Sector .............................................................................................................................................................

Purchase Groups ...................................................................................................................................................................

Procurement Process ............................................................................................................................................................

Procurement Process in GMR ..............................................................................................................................................

Domestic Procurement .....................................................................................................................................................

Import Procurement .........................................................................................................................................................

Stock Transfer ...................................................................................................................................................................

Diagrammatic Representation ..........................................................................................................................................

Steps to be followed for Procurement Process in SAP .......................................................................................................

Master Data in MM ..............................................................................................................................................................

Material Master ................................................................................................................................................................

Material Types ..............................................................................................................................................................

Number Range for Material Type ................................................................................................................................

SectorWise Applicability ...........................................................................................................................................

Valuation Classes for Material Type ............................................................................................................................

Vendor Master ..................................................................................................................................................................

Vendor Account Groups ...............................................................................................................................................


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Number Range for Vendor Account Group ..................................................................................................................

Purchase Requisition .............................................................................................................................................................

Document Types for Purchase Requisition ......................................................................................................................

Item Categories .................................................................................................................................................................

Release Strategy for Purchase Requisition .....................................................................................................................

Quotation Process .................................................................................................................................................................

Request for Quotation/Maintain Quotation ....................................................................................................................

Price Comparison Sheet ...................................................................................................................................................

Purchase Order .....................................................................................................................................................................

Document Types for Purchase Order ...............................................................................................................................

Item Categories .................................................................................................................................................................

Account Assignment .........................................................................................................................................................

Account Assignment Category .....................................................................................................................................

Release Strategy for Purchase Order ...............................................................................................................................

Agro Sector ....................................................................................................................................................................

Energy Sector ................................................................................................................................................................

RAXA ..............................................................................................................................................................................

FMS ...............................................................................................................................................................................

Property ........................................................................................................................................................................

Agro Corporation ..........................................................................................................................................................

Roads Sector .................................................................................................................................................................

Purchasing Document Type Matrix ......................................................................................................................................

Goods Receipt .......................................................................................................................................................................

Quality Inspection for Goods Receipt ..............................................................................................................................

Invoice Verification ...............................................................................................................................................................

Invoice Verification for Import Purchase .........................................................................................................................

Invoice Verification for Emergency Purchase .................................................................................................................

Invoice Verification for External Service .........................................................................................................................

Outline Agreements Contracts ..........................................................................................................................................

Document Types for Contracts ........................................................................................................................................

Release Strategy for Contracts .........................................................................................................................................

Agro Sector ....................................................................................................................................................................


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Energy Sector ................................................................................................................................................................

RAXA ..............................................................................................................................................................................

FMS ...............................................................................................................................................................................

Property ........................................................................................................................................................................

Agro Corporation ..........................................................................................................................................................

Roads Sector .................................................................................................................................................................

Pricing Procedure ..................................................................................................................................................................

Calculation Schemas .........................................................................................................................................................

GMR Local Pricing procedure .......................................................................................................................................

GMR Import Pricing Procedure ....................................................................................................................................

Vendor Schema Group .....................................................................................................................................................

Schema Group for Purchasing Organization ....................................................................................................................

Assignment of Schema Group to Purchasing Organization ............................................................................................

Schema Determination .....................................................................................................................................................

Schema Determination for Stock Transport Order .........................................................................................................

Tax Codes ..............................................................................................................................................................................

External Services ...................................................................................................................................................................

Service Master ..................................................................................................................................................................

Service Category............................................................................................................................................................

Valuation Class for Service Category ...........................................................................................................................

Number Range for Service Category ............................................................................................................................

Service Procurement .............................................................................................................................................................

Service Entry Sheet ..........................................................................................................................................................

Release Procedure for Service Entry Sheet .....................................................................................................................

Movement Types ..................................................................................................................................................................

Physical Inventory Process ....................................................................................................................................................

Reporting...............................................................................................................................................................................

MM60 Materials List ......................................................................................................................................................

MKVZ List of Vendors: Purchasing .................................................................................................................................

ME1M Info Record by Material .....................................................................................................................................

ME0MSource List by Material ......................................................................................................................................

ME5AList Display of Purchase Requisition ...................................................................................................................


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ME4SRFQs per Collective Number ...............................................................................................................................

ME80FN General Evaluations ........................................................................................................................................

ME2NPurchase Order by PO Number ..........................................................................................................................

ME2LPurchase Order by Vendor ..................................................................................................................................

ME2MPurchase Order by Material ..............................................................................................................................

ME2SReporting on Services: Planned/Actual Comparison .........................................................................................

MB51 Material Document List ......................................................................................................................................

MMBE Stock Overview ..................................................................................................................................................

MB52Display Warehouse Stocks of Material ...............................................................................................................

MB5B Stock for Posting Date ........................................................................................................................................

MB5T Stock in Transit ....................................................................................................................................................

MB25 Reservation List ...................................................................................................................................................

MC.1 - Plant Analysis: Stock: Selection ............................................................................................................................

Z Transactions .......................................................................................................................................................................

Price Comparison Sheet ...................................................................................................................................................

Material Gate Pass ............................................................................................................................................................

Returnable Gate Pass ...................................................................................................................................................

Non Returnable Gate Pass ...........................................................................................................................................

Reporting on Material Gate Pass .................................................................................................................................

Goods Issue on a Chargeable Basis ..................................................................................................................................

Sector Specific Scenarios ......................................................................................................................................................

Energy Sector ....................................................................................................................................................................

Agro Sector ........................................................................................................................................................................

Road Sector .......................................................................................................................................................................

Client Structure .....................................................................................................................................................................

GMR Transport Request Form .....................................................................................................................................

Repository of Issues ............................................................................................................................................................

Issue1: Version Management in Purchase Orders .........................................................................................................

Issue 2: Price Change in Service Purchase Orders ..........................................................................................................


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Business IntroductionGMR 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 includ

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, GM

Varalakshmi Foundation.

AirportsGMR 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 SectorGILs Energy business consists of three operating facilities aggregating to 808.5 MW at Mangalore, Chennai

and Vemagiri. Another five projects are under development. GMRs strategy is to create an attractive portfo

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 SectorThe 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-Anakap

(59 kms) are operational it is simultaneously developing 4 other projects AmbalaChandigarh (35 kms),

Jadcherla (46 kms) and Ulundurpet (73 kms) toll based and the Pochanpalli (86 kms) annuity based project.

the four projects have achieved financial closure on time.

Agro SectorGMR Industires Limited (GIDL), the Agribusiness division of GMR group, is a distinguished and rapidly

expanding sugar producer in India. GIDLs products include M-30 and S-30 grades of sugar along with Co-

generated power, distillery products such as Ethanol, ENA, Rectified Spirit and Bio-Fertilizer. Its manufactur

facilities are located at Sankili, in rural Andhra Pradesh and at Haliyal in Karnataka.


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GMR Varalakshmi Foundation

GMR Varalakshmi Foundation (GMRVF) is the Corporate Social Responsibility arm of the GMR Group. It wor

to improve lives and livelihoods of communities where the Group has a presence. The thrust areas of the

Foundations activities are Education; Health, Hygiene & Sanitation; Empowerment and Livelihoods andCommunity - based programme.


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MM Organization Structure


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Energy Sector

2000

GEL

2000

GEL Plant -

Mangalore

2200

GEL Plant - Talong

2300

GEL Plant - Bajoli

Holi

2400

GEL Plant -

Corporate Office

2500

GEL Plant - Delhi

2100

GPCL

2100GPCL Plant

2101

GPCL Plant - O & M

2101

Purch. Org for HHI

2150

VPGL

2150VPGL Plant

2151

VPGL Plant - O & M

2151

Purch. Org for KPS

2200

GBHPL

2200GBHPL plant

2300

Kamalanga

2300Kamalanga

2250

GMEPL

3000RoadsPurchasingOrgan

ization

Energy Sector

Storage Locationsfor 2000.xlsx






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Roads Sector

Co. Code 3110

GTTEPL

3110

GTTEPL Plant

S Loc RS01

Co. Code 3120

GTAEPL

3120

GTAEPL Plant

S Loc RS02

Co. Code 3130

GPEPL

3130

GPEPL Plant

S Loc RS03

Co. Code 3210

GACEPL

3210

GACEPL Plant

S Loc RS04

Co. Code 3220

GJEPL

3220

GJEPL Plant

S Loc RS05

Co. Code 3230

GUEPL

3230

GUEPL Plant

S Loc RS06

Co. Code 3110

GPPL

3110

GPPL Plant

S Loc RS07

3000RoadsPurchasingOrganization

P Group

GTTEPL

P Group

GTAEPL

P Group

GPEPL

P Group

GACEPL

P Group

GJEPL

P Group

GUEPL

P Group

GPPL

Roads Sector


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Agro Sector

4000

GMR IndustriesLimited

4001GIDL Sugar Plant

- Sankili

4002GIDL Cogen

Plant - Sankili

4003GIDL DistilleryPlant - Sankili

4011GIDL Sugar

Plant -Haliyal

4012GIDL Cogen

Plant -Haliyal

4013GIDL DistilleryPlant -Haliyal

4098GIDL Aviation

Plant

Storage LocationAVST

4099GIDL Corpo

Office

S loc CR

Agro Sector

4000AgroPurchasingOrganization


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Property Sector

5010

GMR PropertiesPvt. Ltd.

5010

GMRPPL Plant

S Loc PR01

5020

GMR EstatesPrivate Ltd

5020

GMREPL Plant

S Loc ER01

5500

GMR KrishangiriSEZ Ltd

5500

GMRSEZ Plant

S Loc SE01

Property Sector

5000PropertyPurc

hasingOrganization


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Aviation Sector

8100

GMR Aviation

Pvt. Ltd.

8100

GAPL Plant

Aviation Sector

Purchase Group

GAP

8100AviationPurc

hasingOrganization


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RAXA

8000

RAXA Security

Services Pvt. Ltd.

Plant 8000

RAXA Security

Services Ltd.

S Loc RX01

Uniforms

S Loc RX02

Arms & Weapons3000RoadsPurchas

ingOrganization

RAXA


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Foundation Sector

8600 GMRVaralakhsmiFoundation

Plant 8601

Estates and Hotels

S Loc VF01

Plant 8602

GMRIT Engg & PG

S Loc VF02

Plant 8603

GMRIT PG

Diploma

S Loc VF03

Plant 8604

SGCSRC UG & PG

SlocVF04

Plant 8605

SGCSRC B.Ed

S Loc VF05

Plant 8606

GMRVF Rajam

WIng

S Loc VF06

Plant 8607

GMRVF -

Corporate

Sloc VF07

Foundation Sector

8600FoundationPurchasingOrganization


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Purchase GroupsThe attached excel sheet contains the purchasing groups for GMR:

PurchaseGroups.xlsx


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Procurement ProcessThe 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


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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 onlin

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.


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

Domestic ProcurementDomestic procurement refers to all procurement activity carried out with domestic vendors. Domestic

procurement can take the following forms:

1. Procurement of Materials

2. Procurement of Services

3. Composite Procurement ( Procurement of both Service & Materials in a single purchasing document

4. Asset Procurement

Import Procurement

Import procurement deals with procurement of goods from foreign vendors. Additional pricing componentsrelevant 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 TransferBoth 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. Creation of STO purchase requisition from the requesting plant

2. Conversion of STO purchase requisition into STO purchase order

3. Creation of Outbound delivery document with respect to STO purchase order

4. Post Goods Issue

5. Billing

6. Goods receipt at receiving plant with respect to outbound delivery.


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Diagrammatic Representation

Procurement

Domestic

MaterialProcurement

ServiceProcurement

CompositeProcurement

AssetProcurement

Import

MaterialProcurement

Stock Transfer

Intra CompanyTransfer

Inter CompTransfe


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Steps to be followed for Procurement Process in SAP

Request for

Quotation/Quotation

Price Comparison

Create Purchase Requisition

Release Purchase

Re uisition

Create Purchase Order

Release Purchase Order

Goods Receipt

Invoice Verification


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Master Data in MMA standard pre-requisite for carrying out the procurement cycle in MM is the creation/maintenance of the

following master data:

1. Material Master

2. Vendor Master

3. Info Record

4. Source List

5. Service Master

Material Master

Material Types

The following material types have been customized for use:

1. ZROH Raw materials

2. ZHLB Semi finished Product

3. ZHIB Operating supplies

4. ZAWA Trading Goods

5. ZBYP By Product

6. ZCAP Capital Goods

7. ZDIN Service

8. ZERS Spare Parts

9. ZFRT Finished Product

10.ZHER Manufacturer Part

11.ZHMI Production Resource/Tool

12.ZNBW No valuated materials

13.ZPIP Pipeline materials

14.ZRBY Semi finished Product

15.ZSCM Scrap Materials

16.ZVRP Packaging

Number Range for Material TypeAll material types have been set to External number assignment.


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Sector Wise Applicability

Material

Type Description Sectors (Applicability)

Energy Roads Agro Properties RAXA Aviation Foundatio

ZAWA Trading GoodsZBYP By Product

ZCAP Capital Goods

ZDIN Service

ZERS Spare Parts

ZFRT Finished Product

ZHER Manufacturer Part

ZHIB Operating supplies

ZHLB

Semi finished

Product

ZHMIProductionResource/Tool

ZNBW

Non valuated

materials

ZPIP Pipeline materials

ZRBY

Semi finished

Product

ZROH Raw materials

ZSCM Scrap Materials

ZVRP Packaging

Valuation Classes for Material Type

Valuation Classes perMaterial Type.xlsx


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Vendor Master

Vendor Account GroupsThe following Vendor Account Groups are relevant to Purchasing:

1. GDV1 - Domestic Vendor

2. GIV2 - Import Vendor

3. GSV3 - Service Vendor

4. GST5 - Stock Transfer

5. 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 Account Group code Description Number range

1 GDV1 Domestic

Vendor

100000 - 199999

2 GIV2 Import Vendor 200000 - 299999

3 GSV3 Service Vendor 300000 - 399999

4 GST5 Stock Transfer 500000 - 599999

5 GOV6 One time

Vendor

600000 - 699999


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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 RequisitionGMR 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 CategoriesItem 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:


Release Purchase

Re uisition


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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 togethe

at requisition level usin

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.


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In Plants where O&M processes are involved, purchase requisitions are raised by the O&M contracto

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.


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


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Quotation Process

Request for Quotation/Maintain QuotationStandard 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 sa

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

GMR, this will be used to identify the line of business such as Sugar/Cogen/ Distillery.

Price Comparison SheetTransaction 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-transactio

for Price Comparison Sheet (customized) details. (Page 62)

Request for

Quotation/Quotation

Price Comparison


Release Purchase

Re uisition


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

Purchase Order

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 b

treated emergency purchase ordersmaking use of document type GEME

Request for

Quotation/Quotation

Price Comparison


Release Purchase

Re uisition




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Document Types for Purchase OrderThe following document types exist for GMR:

1. GDOM - Domestic Purchase Order

2. GIMP - Import Purchase Order3. GSER - Service Purchase Order

4. GCAP - Budgeted Cap Purchase Order

5. ZCAP - Non Budgeted Cap Purchase Order

6. GSTO - Stock Transfer Purchase Order

7. GEME - Emergency Purchase Order

Item CategoriesItem 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


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Document

Type

Description Number Range Remarks

GDOM Domestic Purchase Order 0010000000-0019999999

GIMP Import Purchase Order 0030000000-0039999999

GSER Service Purchase Order 0020000000-0029999999 Only Item Category

D (Services) is

permissible

GCAP Budgeted Cap Purchase

Order

5000000000-5099999999

ZCAP Non Budgeted Cap

Purchase Order

5100000000-5199999999

GSTO Stock Transfer Purchase

Order

0040000000-0049999999 Only Item Category U

(Stock Transfer) is

permissible

GEME Emergency Purchase Order 4900000000-4999999999

GWOD Work Order 5200000000 5299999999 Both material and

services can be

procured in a single

purchasing document

Account AssignmentAccount 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


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Description Required Account Assignment Data Remarks

Cost center Cost Center and G/L Account Number Applicable to all sectors

Asset Asset Number Applicable to all sectors

Order Order and G/L Account Number Applicable to all sectors

Project Project and G/L Account Number Applicable to Roads, Energy and

Agro Sectors


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Release Strategy for Purchase Order

Agro Sector


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Energy Sector


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RAXA


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FMS


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Property


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Agro Corporation


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Roads Sector


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Purchasing Document Type Matrix

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


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Goods Receipt

In GMR Group the Goods Receipt Process is done by Stores Person. The Various Categories of Goods Receip

are as follows:-

Goods Receipt against Purchase Order for

Raw-Material

Packing Material

Request for

Quotation/Quotation

Price Comparison


Release Purchase

Re uisition



Goods Receipt


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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 the

receipt to Quality stock for User inspection. Verification of Test Certificates / Mandatory documents is done

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 f

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 imoved to blocked stock.


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Request for

Quotation/Quotation

Price Comparison


Release Purchase

Re uisition



Goods Receipt



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Logistic Invoice verification is a process of accounting vendor invoice that has an underlying purchase order

goods received.

In GMR, Invoice Verification is done by Accounts department. The Stores will send the Excise invoice and M

(Material Receipt & Inspection Report) to Accounts department after verified the goods physically. Presen

the Invoice Verification will be done with reference to the Purchase Order / Purchase Requisition / Wo

Order.

Invoice Verification for Import PurchaseIn case of Import purchases once the vendor confirms the delivery of goods to GMR, the GMR will inform

clearing agent for preparing the relevant statutory documents and clear the goods from the Custo

authorities by paying the Customs Duties like Basic customs, Counter Veiling Duty, Education Cess on C

and Additional Duty of Customs (ADC) etc,.

After clearance from the Customs authorities the same will be dispatched to locations. The Respective Sto

person will physically verify the Quantity with reference to the Purchase Order. Once the goods are cleafrom quality department the accounting entry will be posted giving credit to vendor based on the actual ven

invoice.

Invoice Verification for Emergency PurchaseThere are some instances where in for miscellaneous items like stationery, emergency Purchase and ot

cash Purchases for those small item purchases initially will not be any Purchase Document but the same

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 ServiceIn case of services the above procedure will be the same except where in the place of quality check

services received will be approved.

The invoice verification will be done with reference to the Work Order after the approval of bill from

Concerned authorized person


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Outline Agreements ContractsContract is a longer-term agreement between a Purchasing Organization and a vendor regarding the supply

materials or the performance of services within a certain period according to predefined terms and conditio

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, H

LSHS, fuel oil and natural gas. Based on the fuel consumed in the Plant, fuel is drawn from fuel supplier a

invoice is raised by the supplier for the consumed quantity. Fuel is also procured through global tendering a

the best bidder is awarded the Contract for supplying the fuel. Solid fuel like coal is procured either fro

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 turbin

steam turbine etc. It is mainly a service Contract but can also include supply of OEM spares for the purpose

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


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

Document Type Description Number Range Remarks

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 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 wi

flow into the contract release order from the contract document.

The following information will be required before creating a contract release order:


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2. Number of the Contract

3. Quantity to be released (ordered)

4. Delivery date

Contract Release Orders will be subject to release procedure. A printout of the same can be taken a

send across to the vendor.

History of Contract will be available under Release Documentation in the contract. It will contain t

informationList of Release Order Number, Date of PO Creation, Quantity released and the Value.


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Release Strategy for Contracts

Agro Sector


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Energy Sector

RAXA


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FMS


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Property


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Agro Corporation


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Roads Sector


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Pricing Procedure

Calculation SchemasThe 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 PricingProcedure.xlsx

GMR Import Pricing Procedure

GMR Import PricingProcedure.xlsx

Vendor Schema GroupThe 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.


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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 GMR Import Pricing Procedure


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Schema Determination for Stock Transport Order

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


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External ServicesThe 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 MasterService 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)


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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 CategoryThe attached excel sheet contains the valuation classes configured for services (per service category):

Valuation Class perService Category.xls


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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


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Service Procurement

Service Entry SheetThe system stores services that have been performed in service entry sheets. The relevant postings are mad

in Financial Accounting and Cost Accounting when the service entry sheets are signed off. Service entry sheecan be entered and signed off in one transaction or in two steps.

Number Range: 1000000000 - 1999999999

Release Procedure for Service Entry SheetClarify

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



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Movement TypesThe following is the list of movement types used in GMR:

Movement Movement

Type

Use

Goods Receipt 101 Goods Receipt for purchase order into warehouse/stores

102 Goods Receipt for purchase order into warehouse/stores - reversal

Return Delivery 122 Return Delivery to vendor

123 Reversal of return delivery

Goods Issue 201 Consumption for cost center from warehouse

202 Consumption for cost center from warehouse - reversal

201 Goods Issue to manual reservation

261 Goods Issue to reservation created against Maintenance

Order/Production Order

Transfer Posting 311 Transfer posting storage location (one - step)301 Transfer posting plant to plant (one - step)

303 Transfer posting plant to plant - remove from storage

305 Transfer posting plant to plant - place in storage

Back Flushing 201 Back Flushing

Sales 601 PGI

Loan to Vendor 541 Goods Issue to vendor on loan basis

542 Goods returned by vendor

Initial Upload 561 Receipt per Initial entry of stock balances into unrestricted use stock

Daily Cane Stock upload 961 Cane Stock Upload

Goods Issue on a Chargeablebasis

Z11 Issue goods to vendor on a chargeable basis

Z12 Issue goods to vendor on a chargeable basis - reversal


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Physical Inventory ProcessPhysical Inventory (Stock verification) is the physical counting of the stocks to verify whether stocks

matching the records. The objective is to ensure that the materials held in stock or in the custody of vario

departments (storage locations) conform to the quantity, description and specifications shown in the book

accounts. The actual physical balances should match with the balance appearing in system records. A

shortage or surplus noticed on stock verification is investigated and is regularized after the approval of

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 InventoryProcess

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


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ReportingThe following standard reports are available in SAP:

MM60Materials List

MKVZList of Vendors: Purchasing

ME1MInfo Record by Material

ME0MSource List by Material

ME5AList Display of Purchase Requisition

ME4SRFQs per Collective Number

ME80FNGeneral Evaluations

ME2NPurchase Order by PO Number

ME2LPurchase Order by Vendor

ME2MPurchase Order by Material

ME2SReporting on Services: Planned/Actual Comparison

MB51Material Document List

MMBEStock Overview

MB52Display Warehouse Stocks of Material

MB5BStock for Posting Date

MB5TStock in Transit

MB25Reservation List

MC.1 - Plant Analysis: Stock: Selection


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MM60 Materials List


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MKVZ List of Vendors: Purchasing


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ME1M Info Record by Material


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ME0M Source List by Material


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ME5A List Display of Purchase Requisition


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ME4S RFQs per Collective Number


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ME80FN General Evaluations


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ME2N Purchase Order by PO Number


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ME2L Purchase Order by Vendor


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ME2M Purchase Order by Material


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ME2S Reporting on Services: Planned/Actual Comparison


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MB51 Material Document List


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MMBE Stock Overview


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MB52 Display Warehouse Stocks of Material


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MB5B Stock for Posting Date


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MB5T Stock in Transit


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MB25 Reservation List


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MC.1 - Plant Analysis: Stock: Selection


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Z TransactionsIn 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 SheetTransaction 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. I

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 numb

or collective number of an RFQ.

The Price Comparison sheet can also be printed using this transaction.


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Material Gate PassThe 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.


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Non Returnable Gate Pass


Return Date field (for material) is not available.


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Reporting on Material Gate Pass


Reporting on Returnable/Non Returnable gate pass is available.


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Goods Issue on a Chargeable Basis

Transaction Code: MIGO/MB1A

Movement Type: Z11

In GMR Group, Fertilizers/BioFertilizers 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 plac

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 populatedinitially


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2. Provision to enter the vendor.


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


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Sector Specific Scenarios

Energy SectorOperation and Maintenance Process

[Document to be attached]

Scrapping and Selling of Waste Lubrication Oil


Issue Spare Parts to Vendor on Loan Basis


Agro SectorDaily Cane Stock Upload


Excise related transactions

Please refer the CIN Induction Manual for Agro Sector.(Version 1-1)

Road SectorGoods Issue to Vendor on a Chargeable basis



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Client Structure

Client 100

SANDBOX

Client 300

GOLDEN CLIENT

(Configuration Only)

Client 200

DEVELOPMENT

Client 400

QUALITY

Client 500

PRODUCTION

Transport through SCC1Transport using

release (BASIS

involved)

Approval required

prior to Transport

release (BASISinvolved


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GMR Transport Request Form

Transport requests to production client require prior approval. A copy of the form used for transport approv

process can be found below.

GMR_Transportrequest Form1_V5_K


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Repository of Issues

Issue1: Version Management in Purchase OrdersSAP 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 a

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 retai

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).


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Once changes to a version are complete, the version completed indicator needs to be set. Only then will th

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 th

purchase order is still in progress, i.e. the version completed indicator has not been set, the system will no

allow us to make a goods receipt and will prompt us with an error.


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Issue 2: Price Change in Service Purchase OrdersSetting 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.


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Scenario 2: Price Change Indicator is activated in Service PO

1. Price Change Indicator is set at service specification level in purchase order


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2. Service Entry Sheet created referencing a purchase order. Price Change is allowed for planned servic

in service entry sheet. Gross Price field is editable.


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Documents

Induction Manual for MM